Statement by the President on a Budget Amendment Reducing Funds Proposed for the Atomic Energy Commission.

I HAVE today sent to the Congress a fiscal year 1968 budget amendment involving a decrease in the amount of $14.9 million for the Atomic Energy Commission. This reduction in the fiscal year 1968 budget is made possible by a decision of the Atomic Energy Commission to phase out one of the three major projects for advanced nuclear power reactor development which AEC is pursuing in addition to its main-line effort to develop the so-called "fast breeder" power reactor. The Atomic Energy Commission will terminate the current development work on the heavy-water-moderated, organic-cooled reactor (HWOCR) concept for civilian power but will continue a research and development program on heavy water reactor technology.

The AEC decision to cancel the HWOCR development program is an excellent example of our continuing efforts to reexamine the priorities of on-going programs and to eliminate lower-priority activities. This particular decision was made following an extensive study of the technical and economic promise of the HWOCR concept within the context of the outlook for heavy water technology generally, the marked success of current light water reactor systems, and the 'priority assigned to the fast breeder reactor development effort.

The planned continuation of the heavy water research and development program will enable the Atomic Energy Commission to retain the option to exploit this technology later if it proves to be especially attractive.