Este) Mr. Vance pointed out that the encouragement of an integrated Europe was a major item of the present U.S. foreign policy, Mr. Libby added that the development of the bilateral agreement program was another major element of foreign policy. However, he added that bilateral agreements should not be s0 attractive that countries would prefer dealing with the U.S, in this manner rather than joining a regional group. Mr. Strauss said that all measure of assistance should be in-conformity with NSC and other applicable government policy, such as NSC 5506/2, which indicates that the U.S. should control chemical reprocessing as a safeguard against diversion of fissionable material to non-peaceful uses. Myr. Mitchell pointed out that the study did not take into account the possible need for additional legal authority which might be required to implement the plan. As the result of further discussion, the Commissioners agreed upon additional revisions, and asked that Mr. Murray's comments be obtained. The Commission: a. Agreed that, as revised, the actions set forth in paragraph 10 of AEC 903 are the maximum steps which the United States should consider, within the present limitations of plant capacity and availability of U-235 for power and research reactor programs, to encourage integration of the Community of Six (France, Italy, Belgium, Netherlands, Luxenbourg, and West Germany; and b. Noted that after revision and further review by the Commissioners, the study attached to AEC 903 as Appendix ‘‘A'’ which would incorporate the steps set forth in paragraph 10, as revised, would be forwarded by letter such as Appendix ‘‘B'’, as revised, to the Department of State as a basis for further AEC-Department of State discussions. (See 903/1 subsequently circulated) - 217 ~

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