(2) The training of personnel in the employment of and defense against atomic weapons; and

(3) The evaluation of the capabilities of potential enemies in the employment of atomic weapons.

This subsection provides further that "no such cooperation shall involve communication of restricted data relating to the design or fabrication of atomic weapons except with regard to the external characteristics, including size, weight, and shape, yields and effects, and systems employed in the delivery or use thereof but not including any data in these categories unless in the joint judgment of the Atomic Energy Commission and the Department of Defense such data will not reveal important information concerning the design or fabrication of the nuclear components of an atomic weapon.'

The cooperation permissible under this section, then, is the transfer of that information which will permit those who are our allies to participate intelligently in planning the defense of the free world against any atomic attack from Russia, and to know the effects of any weapons that will be available for use by the United States in helping those other nations join in defending the free world against any such attack. Section 124 permits the President, once an international atomic pool has been established by an international arrangement (which must be approved by the Congress), to cooperate thereafter with the group of nations involved in that pool by means of agreements for cooperation. This gives the President a means of implementing an international atomic pool plan.

CHAPTER 12. CONTROL OF INFORMATION

This chapter sets forth provisions for the protection of secret information relating to atomic energy.

Section 141 sets forth the policies for dealing with restricted data; namely, that the Commission shall control the dissemination and classification of restricted data in such a manner as to assure the common defense and security; that the exchange of restricted data with other nations before enforcible international safeguards against the use of atomic energy for destructive purposes have been established are forbidden except pursuant to agreements for cooperation under section 144; and that dissemination of technical information is to be encouraged so as to have the free interchange of ideas and criticism which is essential to scientific and industrial progress and public understanding and to enlarge the fund of technical information.

Section 142 directs the Commission to declassify that information within the definition of restricted data that can be published without undue risk to the common defense and security. It also directs the Commission to make continuous reviews of restricted data and of the classification guides so as to determine which information can be so declassified and published. That restricted data which the Commission and the Department of Defense jointly agree relate primarily to the utilization of atomic weapons, and which they jointly determine can be published without undue risk to the common defense and security, can be removed from the classification of restricted data. The President is authorized to settle any disputes respecting such determinations. In addition, the Commission with the concurrence of the Department of Defense, can remove from the category of

restricted data any information which they jointly determine relate primarily to the utilization of atomic weapons and which they determine can be adequately protected as defense information. However, any restricted data so classified as defense information cannot be transferred to any other nation except pursuant to an agreement for cooperation in accordance with subsection 144 b. The Commission is also authorized to remove from the category of restricted data any information relating to the atomic-energy programs of other nations that the Commission and the Director of Central Intelligence jointly determine to be necessary to carry out the provisions of section 102 d. of the National Security Act of 1947.

Section 143 authorizes the Commission to permit those in its program to provide access to restricted data to persons associated with the Department of Defense, where such access is required in the performance of the duties of the person to whom such access is to be granted, and the head of the agency or department in the Department of Defense so certifies. Furthermore, the head of that agency in the Department of Defense must certify that it has been established in accordance with the usual procedures of that agency that permitting such person to have the access permitted will not endanger the common defense and security, and the Secretary of Defense must find that the security procedures are adequate and in reasonable conformity with the standards established by the Commission.

Section 144 permits the President to authorize the Commission, pursuant to agreements for cooperation, to communicate certain types of restricted data which relate to the nonmilitary aspects of atomic energy to other nations. (The specific fields are described in the discussion of sec. 123 above.) This section also permits the President to authorize the Department of Defense to cooperate with another nation or with a regional defense organization, pursuant to an agree ment for cooperation and to disclose certain limited types of restricted data relating to the use of atomic weapons. (The specific areas of disclosure permitted are also set forth in the discussion of sec. 123 above.) This section also requires that the other nation or regional defense organization participate with the United States pursuant to an international arrangement by making substantial and material contributions to the mutual defense and security.

Section 145 requires personnel investigations by the Federal Bureau of Investigation or by the Civil Service Commission of persons who will be employed by the Commission or given access to restricted data. It permits the Commission or the General Manager (and this permission rests solely with those named) to exempt persons from this requirement where such exemption is clearly consistent with the national interest. The Federal Bureau of Investigation is required to handle any cases in which the Civil Service Commission finds any information which indicated questionable loyalty. It is also required to conduct investigations for those groups or classes of persons specified by the President, or for those positions certified by the Commission to have a high degree of importance of sensitivity. The Commission is authorized to establish the scope and extent of the less sensitive investigations permitted to be conducted by the Civil Service Commission, depending upon the degree of importance to the common defense and security of the restricted data to which access will be permitted.

Section 146 continues the application to restricted data and to persons in the atomic energy program of other laws relating to the protection of information. It also forbids the Commission from controlling or restricting any information outside of any powers granted by any law.

CHAPTER 13. PATENTS AND INVENTIONS

This chapter sets forth the provisions under which patents may be issued, and used in the atomic energy field.

Section 151 forbids the issuance of any patent on an invention or discovery useful solely in the utilization of atomic energy or of special nuclear material in an atomic weapon. Where inventions or discoveries have uses other than in weapons, patent rights are forbidden. to the extent that the fields set forth above are involved. Any person making any invention or discovery generally useful in the field of atomic energy, is required to report that invention or discovery to the Commission, or to file a patent application on it within 90 days. The Commissioner of Patents is required to keep the Commission fully. informed of all applications in the field of atomic energy. These latter provisions are to keep the Commission fully and currently aware of all technology in the field of atomic energy.

Section 152 permits the Commission to find that a patent is of primary importance in the production or utilization of special nuclear material or atomic energy, and that the licensing of the invention is of primary importance to effectuate the policies and purposes of the act. Upon making such a finding, the Commission may declare the patent to be affected with the public interest. Thereafter the Commission itself is licensed to use the invention, and other persons engaged in activities authorized by the bill may apply to the Commission for and may be granted a patent license to use the patent if the Commission finds that such a patent license is of primary importance to the conduct of such activities.

The bill also authorizes any person engaged in an atomic energy activity authorized by the bill to apply to the Commission for a license on a patent which has not been declared to be affected with the public interest. In such cases, the Commission is required to grant a patent license to such person after hearing all materially interested parties, if the Commission finds (1) that the idea or invention involved is of primary importance in the production or utilization of special nuclear material or atomic energy; (2) that the licensing of such patent is of primary importance to the activities of the applicant; (3) that the activities to which the patent license is to be applied are of primary importance to the furtherance of the policies of the bill; and (4) that the applicant cannot obtain a patent license from the owner of the patent on terms which the Commission deems reasonable. The Commission is required to see that the owner of any patent declared to be affected with the public interest, or licensed by this section, receives a reasonable royalty fee for any such use of the patent.

Section 153 provides that no injunction may be issued against the holder of a patent license issued under the provisions of section 152 and that in any court action brought against such a patent licensee, the action is to be stayed until the royalty is determined pursuant to those provisions of this bill.

Section 154 provides that no patent may be issued on an invention or discovery known before in this country even though such invention has been known or used in the atomic program in secret.

Section 155 requires the Commission to establish standard specifications for the issuing of any patent license for any patent held by the Commission.

Section 156 establishes a Patent Compensation Advisory Board to consider applications under this chapter. The members are to be paid a per diem and may serve without regard to the conflict of interest statutes except as atomic energy matters may be involved. The Board may hear applications from the owners of a patent licensed under the compulsory licensing provisions or from the owners or persons seeking to obtain just compensation for patent rights eliminated by the statute and may also hear applications for awards by persons who have made any invention or discovery not otherwise entitled to compensation or royalty. The Commission is permitted, upon the recommendation of the General Advisory Committee and with the approval of the President, to grant an award for any especially meritorious contribution to the development, use or control of atomic

energy.

In determining the reasonable royalty to be paid, the Commission is required to consider the advice of the Patent Compensation Advisory Board, any defense which might be pleaded in an action for infringement, the extent of any Federal financing involved, and the degree of utility, novelty, or importance of the invention, and may consider the cost of developing or acquiring the patent. In determining just compensation and awards, the Commission is required to consider the extent of actual use of the invention or discovery as well as those considerations involved in royalty determinations.

Section 157 declares that the Commission may continue to require that patents made or conceived during the course of federally financed research or operation be assigned to the United States.

Section 158 permits any person who had applied for a patent which was earlier prohibited by the act, and which would now be permitted by the bill, to reinstate his application for the patent. No patent so reinstated can form the basis of a claim against the United States.

CHATER 14. GENERAL AUTHORITY

This chapter sets forth the general powers of the Commission in operating or regulating any of the activities authorized by this bill. Section 161 permits the Commission to: Establish advisory boards; to issue rules on the possession of dangerous materials; to hold hearings; to appoint officers and employees; to acquire property; to use the personnel or services of any other Government agency; to acquire real or personal property including patents; to combine in one license one or more of the activities of which licenses are required by the bill; to prescribe regulations to protect restricted data, to guard against the loss or diversion of special nuclear material, and to govern activities authorized pursuant to the bill, including health and safety regulations; to dispose of radioactive materials or property where special disposition is needed in the interests of national security; to authorize its personnel to carry firearms and also to authorize employees of the contractors who protect the property of the United

States to carry firearms; to import, duty free, source and other material obtained abroad; to enter agreements with licensees under section 103 or 104 to provide services or materials to such licensees where those services and materials are not otherwise commercially available; to permit small numbers of its employees to obtain further instruction and training outside of the Commission each year; to delegate to its employees and officers all functions authorized by the act except those specified functions which have the highest degree of importance to the program; to require persons in the program to keep records and reports and to authorize the inspection of the activities of persons in the program and to make rules and regulations necessary to carry out the purposes of the act.

Section 162 permits the President to exempt any action of the Commission that he deems essential to the interests of common defense and security from the provisions of law relating to contracts. Section 163 permits members of the General Advisory Committee and members of the advisory boards to serve without regard to the conflict of interest statutes.

Section 164, which is unchanged from present law, permits the Commission to enter into contracts for electric utility services for periods not exceeding 25 years in connection with the construction or operation of Oak Ridge, Paducah, and Portsmouth. The contracts may provide cancellation costs for termination of the contracts.

Section 165 prohibits the Commission from using cost-plus-percentage-of-cost contracts in its operations.

Section 166 requires the Commission to require its contractors and their subcontractors to submit to auditing of their books by the Comptroller General of the United States.

Section 167 permits the Commission to settle damages arising out of its program for testing atomic weapons, where the amounts do not exceed $5,000, where the claim is submitted within 1 year, and where the damage is not caused in whole or in part by negligence of the claimant.

Section 168 requires the Commission to make payments in lieu of taxes to States or localities where activities of the Commission are carried on, and where the Commission has acquired property previously subject to State and local taxes. The Commission is to make the payments it deems appropriate but is to be guided by the policy of not making payments in excess of taxes which would have been payable on the property in the condition in which it was acquired except in cases where special burdens have been cast upon a State or local government by the activities of the Commission.

Section 169 provides that no funds of the Commission are to be employed in the construction or operation of production or utilization facilities licensed under section 103 or 104, except pursuant to contract entered into in accordance with the provisions of section 31.

CHAPTER 15. COMPENSATION FOR PRIVATE PROPERTY ACQUIRED

This chapter establishes the rules for acquiring property condemned and used for public purposes.

Section 171 requires that, where the United States takes any interest in property for which just compensation is required to be paid under the terms of this bill, the Commission shall determine