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into under this section shall contain provisions (A)
prohibiting the contractor with the Commission
from subcontracting any part of the work he is obli- Subcontracts.
gated to perform under the contract, except as au-
thorized by the Commission, and (B) obligating the
contractor to make such reports to the Commission Reports, etc.
as it may deem appropriate with respect to his ac-
tivities under the contract, to submit to frequent in-
spection by employees of the Commission of all such
activities, and to comply with all safety and security
regulations which may be prescribed by the Commis-
sion. Any contract made under the provisions of
this paragraph may be made without regard to the
provisions of section 3709 of the Revised Statutes
(U. S. C., title 41, sec. 5) 11 upon certification by the advertising
Commission that such action is necessary in the in- contracts.
terest of the common defense and security, or upon
a showing that advertising is not reasonably prac-
ticable, and partial and advance payments may be
made under such contracts. The President shall de Duty of
termine at least once each year the quantities of fis-
sionable material to be produced under this para-
graph.

(3) OPERATION OF OTHER PRODUCTION FACILITIES.-
Fissionable material may be produced in the conduct
of research and development activities in facilities
which, under paragraph (1) above, are not required
to be owned by the Commission.

Exception from

President.

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Manufacture

of radioactive

(d) IRRADIATION OF MATERIALS.-For the purpose of increasing the supply of radioactive materials, the Com- materials. mission and persons lawfully producing or utilizing fissionable material are authorized to expose materials of any kind to the radiation incident to the processes of producing or utilizing fissionable material.

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Licenses for

tion facilities.

(e) MANUFACTURE OF PRODUCTION FACILITIES.—Un- manufacture, less authorized by a license issued by the Commission, etc.. of producno person may manufacture, produce, transfer, or acquire any facilities for the production of fissionable material. Licenses shall be issued in accordance with such procedures as the Commission may by regulation establish and shall be issued in accordance with such standards and upon such conditions as will restrict the production and distribution of such facilities to effectuate the policies and purposes of this Act. Nothing in this section shall be deemed to require a license for such manufacture, production, transfer, or acquisition incident to or for the conduct of research or development activities in the United States of the types specified in section 3, or to prohibit the Commission from manufacturing or producing such facilities for its own use.

"Text of title 41, U. S. Code, sec. 5 will be found in appendix E, item No. 4, p. 54.

Definition of

"fissionable material."

Government ownership of fisssionable material.

CONTROL OF MATERIALS 12

(42 U. S. C. 1805)

SEC. 5. (a) FISSIONABLE MATERIALS.—

(1) DEFINITION.-As used in this Act, the term "fissionable material" means plutonium, uranium enriched in the isotope 235, any other material which the Commission determines to be capable of releasing substantial quantities of energy through nuclear chain reaction of the material, or any material artificially enriched by any of the foregoing; but does not include source materials, as defined in section 5 (b) (1).

(2) GOVERNMENT OWNERSHIP OF ALL FISSIONABLE MATERIAL.All right, title, and interest within or under the jurisdiction of the United States, in or to any fissionable material, now or hereafter produced, shall be the property of the Commission, and shall be deemed to be vested in the Commision by virtue of this Act. Any person owning any interest in any fissionable material at the time of the enactment of this Act, or owning any interest in any material at the time when such material is hereafter determined to be a fissionable material, or who lawfully produces any fissionable material incident to privately financed research or development activities, shall be paid just compensation therefor. The Commission may, by action consistent with the provisions of paragraph (4) below, authorize any such person to retain possession of such fissionable material, but no person shall have any title in or to any fissionable material.

(3) PROHIBITION.-It shall be unlawful for any person to (A) possess or transfer any fissionable material, except as authorized by the Commission; or (B) export from or import into the United States any fissionable material; or (C) directly or indirectly engage in the production of any fissionable material outside of the United States, except, subject to the limitations and conditions contained in section 10 (a) (3), as authorized by the Commission upon a determination by the President that the common defense and security will not be adversely affected thereby.14

12 The provisions of Public Law 264, 83d Cong. (67_Stat. 577) relating to the export of arms can be found in appendix H, p. 92.

3 The text of Private Law 94, 83d Cong. (67 Stat. A-35) relinquishing all title to the fissionable materials in certain lands in Marion County, Ind., is contained in appendix K, p. 97.

14 The language of sec. 5 (a) (3) which was amended on Oct. 30, 1951, by Public Law 235, 82d Cong. (65 Stat. 692, 42 U. S. C. 1805) is shown in italics. (See S. 2233 (Oct. 8. 1951) and S. Rept. 894 (Oct. 8. 1951); see also H, R. 5646 (Oct. 8, 1951) and H. Rept. 1104 (Oct. 8, 1951).) (For legislative history index to Public Law 235, 82d Cong., see index to S. 2233 in appendix D, p. 47.)

In the basic Atomic Energy Act (Public Law 585, 79th Cong., 60 Stat. 755-775, 42 U. S. C. 1801-1819, sec. 5 (a) (3) read as shown below. The language subsequently changed or omitted by Public Law 235 is shown in italics.

"(3) PROHIBITION.—It shall be unlawful for any person, after sixty days from the effective date of this Act to (A) possess or transfer any fissionable material, except as authorized by the Commission, or (B) export from or import into the United States any fissionable material, or (C) directly or indirectly engage in the production of any fissionable material outside of the United Štātes.”

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(4) DISTRIBUTION OF FISSIONABLE MATERIAL.-Without prejudice to its continued ownership thereof, the Commission is authorized to distribute fissionable material owned by it, with or without charge, to applicants requesting such material (A) for the conduct of research Research, or development activities either independently or under contract or other arrangement with the Commission, (B) for use in medical therapy, or (C) for use pursuant to a Medical license issued under the authority of section 7. Such therapy. material shall be distributed in such quantities and on such terms that no applicant will be enabled to obtain an amount sufficient to construct a bomb or other military weapon. The Commission is directed to distribute sufficient fissionable material to permit the conduct of widespread independent research and development activity, to the maximum extent practicable. In determining the quantities of fissionable material to be distributed, the Commission shall make such provisions for its own needs and for the conservation of fissionable material as it may determine to be necessary in the national interest for the future development of atomic energy. The Commission Restrictions. shall not distribute any material to any applicant, and shall recall any distributed material from any applicant, who is not equipped to observe or who fails to observe such safety standards to protect health and to minimize danger from explosion or other hazard to life or property as may be established by the Commission, or who uses such material in violation of law or regulation of the Commission or in a manner other than as disclosed in the application therefor.

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Acquisition of material out

States.

(5) The Commission is authorized to purchase or otherwise acquire any fissionable material or any inter- side United est therein outside the United States, or any interest in facilities for the production of fissionable material, or in real property on which such facilities are located, without regard to the provisions of section 3709 of the Revised Statutes (U. S. C., title 41, sec. 5) 15 upon certification by the Commission that such action is necessary in the interest of the common defense and security, or upon a showing that advertising is not reasonably practicable, and partial and advance payments may be made under contracts for such purposes. The Commission is further authorized to take, requisition, or condemn, or otherwise acquire any interest in such facilities or real property, and just compensation shall be made therefor.

(1) DEFINITION.-As used in this Act, the term "source material" means uranium, thorium, or any other material which is determined by the Commission, with the approval of the President, to be peculiarly essential to the production of fissionable materials; but includes ores

15 Text of title 41, U. S. Code, sec. 5 will be found in appendix E, item No. 4, p. 54.

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Definition of

"source materials."

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License for transfers.

License issuance.

Reporting ownership of source materials.

Source materials.

Relief from advertising.

Guaranteed prices.

Exploration.

only if they contain one or more of the foregoing materials in such concentration as the Commission may by regulation determine from time to time.

(2) LICENSE FOR TRANSFERS REQUIRED.-Unless authorized by a license issued by the Commission, no person may transfer or deliver, receive possession of or title to, or export from the United States any source material after removal from its place of deposit in nature, except that licenses shall not be required for quantities of source materials which, in the opinion of the Commission, are unimportant.

(3) ISSUANCE OF LICENSES.-The Commission shall establish such standards for the issuance, refusal, or revocation of licenses as it may deem necessary to assure adequate source materials for production, research, or development activities pursuant to this Act or to prevent the use of such materials in a manner inconsistent with the national welfare. Licenses shall be issued in accordance with such procedures as the Commission may by regulation establish.

(4) REPORTING.-The Commission is authorized to issue such regulations or orders requiring reports of ownership, possession, extraction, refining, shipment, or other handling of source materials as it may deem necessary, except that such reports shall not be required with respect to (A) any source material prior to removal from its place of deposit in nature, or (B) quantities of source materials which in the opinion of the Commission are unimportant or the reporting of which will discourage independent prospecting for new deposits.

(5) ACQUISITION. The Commission is authorized and directed to purchase, take, requisition, condemn, or otherwise acquire, supplies of source materials or any interest in real property containing deposits of source materials to the extent it deems necessary to effectuate the provisions of this Act. Any purchase made under this paragraph may be made without regard to the provisions of section 3709 of the Revised Statutes (U. S. C., title 41, sec. 5)16 upon certification by the Commission that such action is necessary in the interest of the common defense and security, or upon a showing that advertising is not reasonably practicable, and partial and advance payments may be made thereunder. The Commission may establish guaranteed prices for all source materials delivered to it within a specified time. Just compensation shall be made for any property taken, requisitioned, or condemned under this paragraph.

(6) EXPLORATION.-The Commission is authorized to conduct and enter into contracts for the conduct of exploratory operations, investigations, and inspections to determine the location, extent, mode of occurrence, use,

16 Text of title 41, U. S. Code, sec. 5 will be found in appendix E, item No. 4, p. 54.

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or conditions of deposits or supplies of source materials, making just compensation for any damage or injury occasioned thereby. Such exploratory operations may be conducted only with the consent of the owner, but such investigations and inspections may be conducted with or without such consent.

deposits.

(7) PUBLIC LANDS."-All uranium, thorium, and all Public land other materials determined pursuant to paragraph (1) of this subsection to be peculiarly essential to the production of fissionable material, contained, in whatever concentration, in deposits in the public lands are hereby reserved for the use of the United States subject to valid claims, rights, or privileges, existing on the date of the enactment of this Act: Provided, however, That no indi- benefit restricvidual, corporation, partnership, or association, which tion. had any part, directly or indirectly, in the development of the atomic bomb project, may benefit by any location, entry, or settlement upon the public domain made after such individual, corporation, partnership, or association took part in such project, if such individual, corporation, partnership, or association, by reason of having had such part in the development of the atomic bomb project, acquired confidential official information as to the existence of deposits of such uranium, thorium, or other materials in the specific lands upon which such location, entry, or settlement is made, and subsequent to the date of the enactment of this Act made such location, entry, or settlement or caused the same to be made for his, its, or their benefit. The Secretary of the Interior shall cause to be Reservation of inserted in every patent, conveyance, lease, permit, or other authorization hereafter granted to use the public lands or their mineral resources, under any of which there might result the extraction of any materials so reserved, a reservation to the United States of all such materials, whether or not of commercial value, together with the right of the United States through its authorized agents or representatives at any time to enter upon the land and prospect for, mine, and remove the same, making just compensation for any damage or injury occasioned thereby. Any lands so patented, conveyed, leased, or otherwise disposed of may be used, and any Use of lands. rights under any such permit or authorization may be exercised, as if no reservation of such materials had been made under this subsection; except that, when such use results in the extraction of any such material from the land in quantities which may not be transferred or delivered without a license under this subsection, such material shall be the property of the Commission and the Commission may require delivery of such material to it by any possessor thereof after such material has been separated as such from the ores in which it was con

17 Text of Public Law 250, 83d Cong. (67 Stat. 539) relating to mining claims will be found in appendix J, p. 96.

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materials.

Right of United
States to

prospect, etc.

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