the sensitive stage may be followed by apparently complete repair from adjacent primitive dividing cells which are less sensitive to radiation. Certain parts (such as the optic pits and the neural part of the pituitary gland) were not repaired in this manner, although the cells bordering them appeared the same under the microscope as the cells adjacent to repairable areas. It was noted, however, that these areas involved local development of an outward-growing pocket to form a new structural unit on the embryo and an adjacent cluster of especially radiosensitive cells. Further data are needed to establish whether damage to these cells is of primary importance in the loss of the ability of the embryo to repair certain structures.

Radiation Effects in Large Animals

Fundamental studies are needed on the effects produced in large animals by whole-body ionizing irradiation, in order to understand clearly the mechanisms involved in radiation damage. At the present time there are only a few reports available concerning the effects of whole-body irradiation on large animals such as swine, goats, and burros. Information on the effect of chronic daily exposures of large animals to whole-body irradiation is even more limited.

Studies undertaken by the AEC-University of Tennessee program, and through collaboration with the AEC project at UCLA, were aimed at measuring the relation of chronic radiation dose and the detectable physiological changes, in burros exposed to 100 roentgens daily of cobalt 60 gamma rays. The general symptoms of radiation injury are similar to but slower in developing than the symptoms when the daily dose of radiation is higher. A pronounced fall in blood lymphocyte count occurred one hour after the first 100 r dose of irradiation. The blood platelets followed the pattern of response obtained when either 200 r fractional or a single dose sufficient to kill half the animals was given. However, generalized bleeding from small wounds did not occur until the 21st day, whereas in the 200 r series it occurred on the ninth day.

A significant increase in the level of iron in the blood was observed when the total irradiation reached 400 r. Two maximal responses were obtained, one after 800 r and the other after 1500 r. Plasma iron was significantly elevated at the time of death. A primary drop in the blood iron level was observed in one animal associated with a pronounced increase in the white cell count, followed by a secondary drop. The origin of the increased plasma iron is uncertain, but since there was no significant decrease in the red cell count or the hemoglobin. concentration, it appears that the iron must be released from body stores rather than from hemoglobin destruction.

Mechanisms of Post-Irradiation Fever

At the AEC project at the University of California (Los Angeles) recent studies suggest that the elevated temperatures observed in rabbits following exposure to X-rays is a result of a direct action of the radiation on the central nervous system. It was formerly believed that the fever might be due to absorption of certain chemical substances (pyrogens) through the injured intestinal lining. However, it was impossible to demonstrate that repeated pyrogen injections before irradiation prevented the fever, although such treatment is known to render the rabbits tolerant to the pyrogens.

Localized irradiation of abdominal regions or of the hindquarters failed to cause the fever, whereas an exposure of 800 roentgens to the head only (with the rest of the body shielded) produced the fever. Since the temperature-regulating centers are known to be principally in a certain part of the brain (hypothalamus), a direct reaction of this part of the brain to the head irradiation is the most obvious explanation. Furthermore, the drug aminopyrine-believed to act directly on these temperature-regulating centers of the brain-was shown to be effective against the fever reaction when given just prior to irradiation. Further studies are in progress to demonstrate the effects of radiation administered directly to this part of the brain. The investigators think that the so-called "acute shock deaths", occurring in some rabbits within a few hours after whole-body irradiation, may be due in large part to the high fevers developed at this stage.

Organization and Personnel

Outside Training for Employees

Plans were completed to administer Section 161 n. of the Atomic Energy Act of 1954, authorizing the Commission to "assign scientific, technical, professional, and administrative employees for instruction, education, or training by public or private agencies, institutions of learning, laboratories, or industrial or commercial organizations. . . .” This authority will be used when such training assignments are determined to be the effective and economical method of imparting skills and knowledge necessary for best performance of employees' duties.

In view of the limitation on the use of this authority, central control will assure that no more than one percent of the eligible employees will be so assigned at any one time.

Incentive Awards Program

An incentive awards program was established by the Commission in conformity with the Government-wide awards program provided for by Public Law 763 (83d Cong., 2d Sess.). Cash awards will be made to employees for superior accomplishment, suggestions, and inventions resulting in economies or improvements in operations, and special acts or services in the interest of the Government. Honorary awards will also be granted for exceptionally meritorious service to the atomic energy program.

In line with this new program, a Distinguished Service Award was presented to Dr. Lawrence R. Hafstad, Director of the Division of Reactor Development, on December 21. The award cited his "exceptional ability, sound judgment, and extraordinary devotion to duty in planning and directing the many activities which comprise the Commission's program for the development of nuclear reactors."

Personnel and Organizational Changes

The following personnel and organizational changes took place in Washington Headquarters, effective October 1, 1954, or as indicated: Commissioner Henry D. Smyth resigned as of September 30, to return to Princeton where he will serve as Chairman of the Board of Scientific Engineering and Research. Dr. Willard F. Libby was appointed on October 1 to fill the remainder of Dr. Smyth's term of office.

Dr. John von Neumann was named by the President to a vacancy on the Commission, and his name was submitted to the Senate for confirmation on January 10, 1955.

Commissioner Joseph Campbell resigned his appointment as a member of the Commission effective November 30, and was appointed by the President as Comptroller General.

Appointment of R. W. Cook, former Assistant General Manager for manufacturing, to the position of Deputy General Manager. In addition, Mr. Cook continues to act as Assistant General Manager for Manufacturing.

Establishment of the position of Assistant General Manager and the appointment of Harry S. Traynor, former Special Assistant to the General Manager, to this position. Mr. Traynor provides overall coordination and assistance to the General Manager in directing the activities of the following components: Division of Organization and Personnel; Division of Security; Division of Information Services; Division of Intelligence (formerly Office of Intelligence), with C. H. Reichardt as Director, effective February 1, 1955; Division of

Classification (formerly Office of Classification); and Division of Source and Special Nuclear Materials Accountability (formerly the Source and Fissionable Materials Accountability Branch, Division of Production), with Donald F. Musser as Director.

Establishment of an Inspection Division with Elbert B. Johnson, formerly Chief, Controller's Investigative Staff, as Acting Director. Curtis A. Nelson has been designated Director of the Inspection Division, effective February 1, 1955. Section 25c of the AEC Act of 1954 provides that the Inspection Division "shall be responsible for gathering information to show whether or not the contractors, licensees, and officers and employees of the Commission are complying with the provisions of this Act (except those provisions for which the FBI is responsible) and the appropriate rules and regulations of the Commission." The former Controller's Investigative Staff was transferred to the new division, and studies are being made with respect to the assignment of other AEC inspection activities to the Division. Appointment of Paul F. Foster as Special Assistant to the General Manager for Liaison to coordinate the Office of International Affairs (formerly Office of Special Projects) and the Congressional Liaison staff.

Designation of Harold L. Price, Deputy General Counsel, to act also as Special Assistant to the General Manager for Licensing to coordinate necessary planning and studies of the Commission's licensing functions under the Atomic Energy Act of 1954, and the development of licensing regulations and procedures.

Effective December 31, Dr. Lawrence R. Hafstad resigned as Director of the Division of Reactor Development to enter private industry as an atomic energy consultant.

Total AEC employment declined by over 300, largely as a result of the reorganization of the New York Operations Office during the period of February 28 through September 30. The New York office was reorganized early in 1954, resulting in the transfer of its production functions to the Oak Ridge Operations Office; shortly thereafter the exploration office of the Raw Materials Division was transferred from New York to Washington, D. C.

Atomic Energy Labor-Management Relations Panel

The Labor-Management Relations Panel issued recommendations in four disputes during this report period. Two of these involved operations contractors and two involved construction contractors. Except in one case, discussed under "National Emergency Dispute at Oak Ridge and Paducah," the parties accepted these recommendations as bases for settlement of their disputes without interruption of the work. In one other dispute, involving construction contractors and building

trades unions, the Panel returned the dispute to the parties for further negotiations.

National Emergency Dispute at Oak Ridge and Paducah

Production and maintenance employees of Carbide and Carbon Chemicals Co. were on strike at the gaseous diffusion plants in Oak Ridge, Tenn., and Paducah, Ky., from July 7-9. This dispute arose out of negotiation of wage reopeners between the contractor and United Gas, Coke and Chemical Workers, CIO, and Atomic Trades & Labor Council, AFL. The Atomic Energy Labor-Management Relations Panel had recommended in June that the dispute be settled by an across-the-board wage increase of 6 cents per hour. Carbide accepted, but the unions rejected these recommendations.

The president created a board of inquiry on July 6, pursuant to the Labor-Management Relations Act, 1947. The board, composed of T. Keith Glennan, chairman; John F. Floberg, and Paul H. Sanders, members, heard the issues in dispute between Carbide and the CIO Union on July 8 in Washington and reported to the President on July 10. The board's report on the AFL dispute was submitted to the President on July 19, 1954.

On July 10, CIO employees returned to work pursuant to an understanding between Secretary of Labor James P. Mitchell and CIO officials that AEC would discuss "matters of housing, health and community facilities" in AEC communities with union leaders and that a study would be initiated "to seek to improve labor-management relations and to strengthen collective bargaining in the atomic energy field." The Commission met with representatives of CIO and AFL, and officials of the United Gas, Coke and Chemical Workers to discuss the first matter and subsequently Mr. Mitchell appointed David Cole to head a committee to study atomic energy labor-management relations.

Early in August the Atomic Trades and Labor Council, AFL— representing employees at the X-10 and Y-12 plants in Oak Ridgevoted to reverse its previous action and accept the 6-cent per hour wage increase retroactive to April 15. The CIO, however, continued in disagreement with Carbide and threatened a second strike to enforce its demands. The President instructed the Attorney General to seek an injunction under the emergency provisions of the Taft-Hartley Act on the ground that strikes at the affected plants in Oak Ridge and Paducah would imperil the security of the nation. The injunction was issued by the U. S. District Court in Knoxville on August 11. Thereafter the parties met in several negotiating sessions with the assistance of the Federal Mediation and Conciliation Service. These efforts were unsuccessful, however, and on October 11 the Board of