FOREIGN RELATIONS, 19 5 0, VOLUME I


India. Embassy previously learned this from Gustafson 26 and that
same company obtained similar concession Brazil, giving French near
monopoly on thorium which offers great prospects in "breeding"
as
well as near monopoly in rare earths which occur in thorite deposits.
Accordingly, the Department has doubtless weighed these factors and
may come to conclusion that aiding Belgium in constructing reactor
would be means of keeping Belgium out of French atomic orbit and
correspondingly free from French requests for uranium; in short
divide and rule and cut our possible future uranium losses.
   13. In summary, therefore, I think should it develop that (a) pro-
posed "Belgian public interest fund" is for expenses scholars visits
to
United States, it would be well for us to increase price uranium to this
modest end; (b) if we are no longer greatly concerned on secrecy and
do not 1fear Belgian drain on uranium mentioned above, we might well
also go as far as to give enough to enable Belgium build or contribute
toward building an experimental reactor (having in mind there is
already a primitive one in France and more advanced one under con-
struction there and two reported under construction in Scandinavia).
The foregoing would, I think, quiet Belgians and the amount they
want may not prove excessive. Furthermore, in last analysis, Belgians
have the uranium. If they want to build reactor here or in Congo, they
eventually will do it with or without our aid and know-how.
  14. It will be recalled Van Zeeland suggested possibility building
reactor in Congo, but I fear this may not prove workable compromise
since it would mean transfer most of Belgium's very limited number
of physicists to that colony.
  15. As Gustafson quite rightly suggested during recent visit to
Brussels, we could take line that what Belgium contributes in granting
lower price than other suppliers of uranium can be considered as Bel-
gian contribution to MDAP 'for which Belgium might claim crecit.
I fear, however, though his reasoning is sound, it may unfortunately
not adequately meet Van Zeeland's political problems and aspirations.
  16. On balance, therefore, and assuming AEC has adequate funds,
I feel if reasonable concession on price plus reasonable amount addi-
tional scientific information will satisfy Belgians, this is line to take;
but Department will realize I have before me only limited picture as
seen from Belgium.
                                                          MUrPHY
  SJohn :K. Gustafson, Director of Raw Materials Operations, U.S. Atomic
Energy Commission.


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