i i- 1 by mu 8 1960 Will can names 8 8 PM I Philip J Farley Safewarde on Large Power leactore We have been inforlod by the Ititiah Inbaeey that llr Selvyn Lloyd will probably raiao vith you the queation of approaching the trench regarding a joint policy of rea quiring aa egnaroe an a condition for any tale of power reactore over 100 electrical negmtta le vill probably auggeat that an approach be node to I Come do vanilla mating the Hashington neeting m atte-ta to parchaoe a large natural uraniu reactor and fuel without oafeguarda to prevent the diveroion of pro- duced natarial to nilitary porno lode-0 x oonvereatioao regarding each a reactor have reached an iqaaoe on the point of eategnarde At the tine a trench atonic energy tea- ie traveling through India their tour trill end in Ienbay there it ie udereteod negotia- tiona will take place regarding the aale of a trench natural uranim roactor to India A Ire-ah hbaoey official in lo- Delhi told an oilicer of our Baaoy that the Ireneh did at oonaider th-oelvoe bond by eateguarda the clear in- plioatien being that they out not ineiat on eateguarde in reel-lied oatation have lube previaionally DECLASSIEIE Au 1ority_f2f 6 70 9' DECLASSIFIED Authority f j 6 70 1 11 France were to ahead and offer a large reactor and fuel to the Indiana without aafeguardo it would heve the effect of rendering Agency aafeguarde It in not believed that any country would prefer to have deal- than with tho Agency euhject to oafcguarde when it could get reactoro and fuel bilaterally without eafeguarde Such action would place the 0 x and 0 8 in a diffi- cult peeition vie-a-via their nanufacturere who would he in an unfavorable coqotitive poeition the Indian attqt to purchaec without eateguardo ie in line with their efforte in Vie-a to eahotagc the prin- ciple of eafeguarde they rather than the Soviete have been the leadore in oppoeing the adoption of Agency cafe- We While tho French have eupported Agency eateguerde they have told no privately that the reaeon they do not object to eeteguerdo in that they never expect to receive any- thing iron the Agency which will require the application of eateguarde ln opite o etrennouo efforts to pcrenede th- to adopt bilateral eateguarde coneiotent with thoee of the Agency they have rehead They have already eold ten tone of natural nrani to India without eateonerdo the french have recently participated together with the 0 8 and 0 1 in octagoarde with the Soviete at having been invited to participate in and no a remit thereet night adopt a nore attirnetive J 1l Kr -074 in an approach to Guava do mum to whom tho importance Iva attach to the application of bilataral utaguarda conaiatant with thou of tho my W Iii-3% w - It APPIOVID DISAPPIOVID Vs Aluminium Authority DECLASSIFIED - wow i win NP 34V as Vh AV                     National Security Archive    Suite 701  Gelman Library  The George Washington University    2130 H Street  NW  Washington  D C  20037    Phone  202 994‐7000  Fax  202 994‐7005  nsarchiv@gwu edu