FOREIGN RELATIONS, 19 5 0, VOLUME I


Indian Government. We venture recommend, therefore, unless De-
partment and AEC believe that difficulties which they might en-
counter in Brazil will more than offset advantages to be derived from
contract, that we proceed with contract. Furthermore, if paragraph
three could be deleted in view of Prime Minister's feelings, and if
we could drop it without too much internal embarrassment, we would
prefer to see it left out. It would seem to us that its retention would
serve no useful purpose other than perhaps to mislead [omission of
approximately seven characters] agencies of the Government or
American businessmen, and its deletion would represent gracious
gesture on our part, particularly in view of fact that Prime Minister
has expressed willingness if we insist on it to allow it remain in
agreement.
                                                       H-ENDERSON

SCI Files 1
Memorandum by the Executive Secretary of the National Security
  Council (Lay) to the Secretary of State, the Secretary of Defense
  (Johnson), and the Chairman of the United States Atomic Energy
  Commission (Dean)

SECRET                                WASHINGTON, August 8, 1950.
  The President has directed the Secretary of Defense and the Chair-
man of the Atomic Energy Commission to prepare a study of the scale
and effort required to increase production of fissionable maOterial dur-
ing the immediate future and its relation to requirements for facilities
and manpower, giving due consideration to (1) degree of mobilization
under current directives, and (2) full concurrent national mobiliza-
tion. The objective of the study should be to provide a yardstick show-
ing cost (in facilities and manpower as well as dollars) of incre-
mental increases in the production of fissionable material and to the
extent practicable, the impact of such costs on other national defense
programs.2
   The President has further directed that this study when completed
be considered by the special committee of the NSC consisting of the
Secretary of State, the Secretary of Defense, and Chairman, Atomic
Energy Commission, for the purpose of making any appropriate
recommendations to the President.
                                                JAMES S. LAY, JR.
  Files retained by the Bureau of International Scientific and Technological
  Affairs, Department of State.
  "The preparation of the study requested by ,the President is described
in
  Hewlett and Duncan, pp. 5,25-529.


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