Research and development progress specifically directed toward the construction of a 40-Mw(e) prototype power plant employing a high-temperature, gas-cooled, graphitemoderated reactor known as the HTGR is reported. Irradiation of element III-B in the in-pile loop continued satisfactorily. The element has generated a total of l36.3 Mw-hr of fission heat. The gross activity in the purge stream increased slightly to about 350 mu C/cm/sup 3/. By taking larger gas samples than were previously taken, a value of 0.02 VC/cm/sup 3/ was obtained for the gross activity of the primary loop. Element III-A, which was removed from the loop after generating 133 Mw-hr of fission heat, was disassembled and examined. No fuel-compact damage of any type was vis...