because of a lack of flexibility in its budget. However, he said that with approval of the requests under consideration, he hoped that requests for supplemental apprepriations could be avoided unless it was decided that the nuclear rocket propulsion program was urgent. Mr. Vance said that it seemed very important to him to assist the Administration's efforts to balance the budget, especially since this is the first year that it appeared possible. He said he believed a balanced budget is so important to the economy of the country that it would be desirable to consider additional fund requests very care- fully even though the delay might mean that the Commission might risk the need to request supplemental appropriations later. Mr. N.urray said he believed the AEC program, and particularly the request for funds for the thin weapons shell fabrication facility, is so important that the Commission should not risk being unable to meet its respensibilities. On the contrary, he said, he believed that after Operation REDWING, DOD yequir ements fer weapons using these cemponents would be so great that if previsien were not made at this time it might well delay meeting these requirements by as much as two years. Mr. Murray added that he believed a limit had been reached in high yield weapons and that aggressive steps sheuld now be taken to redirect the weapons program to production of small weapons. After further discussion, the Commissioners agreed that further consideration of this matter would be deferred until February 21, At this point Mr. Libby left the meeting. Mr. Murray referred to discussions ef the possibility of the Department of Navy purchasing zirconium for Naval reactors rather tian obtaining this material from AEC. He said he believed thatit would be hazardous at this point in the development of sources of zizconium to permit the Department of Navy to enter into a separate purchase program for this material. Mr. Burrows said that purchase of zirconium for the Navy was becoming an increasing drain on the AEC budget since AEC was required to fund fer the purchase of zirconium but was not repaid until reactor cores had been fabricated. He said it had been suggested that the Department of Navy fund for this - 142 -

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