[PAGE 2]
7 Rovember 1955

HEHOPAUIN POR: COMPTIKOLER

ATISTICa Finsacs Divislon

SU8JCT 1MaLa Bubprojeot 48 - Obligation # 3

Under the euthority grentod in the mesoraáa dated 13 April 1953, Toe the DCI to the DD/A, and the estaroioa of this mutharity in euteoçuent mmcrenda, Subprojoct h3 was previouely approvel. Cnder the sase suthority an atdittoñal sus of \$1ko,479.00 haa leen aathorisad to covor the sbgrojoct's ezpensee (thareby bringirg to e total of \$2ho,b79.0ò Nnds ob11gatod curins FY 56) to be chargo1 to A110tmat 6-2502-10-001.

vse/chenical Divietai

APPIXVED TOR

02LICAT10U P PUTG:

Hesonrcb Dlreoter

860 6:2502-10-001

Dator

Digtributiont Oria & 2 = Addres6os

1 - TSS/00

1-TSS/PASB

1-TSS/SRB

2 - -TS8/cD

ss/e(7 Boventer 1955)

48-2

[PAGE 4]
PROPOSED BUDGETS Fiscal Year 1955-56

SummaryB

Ludget

\$ 84,295:00

General Administrative

54,059.00
54,268.00

Project #1

47,950.00

Project #2

84.175.00

270.479.00 2mm. Total Dudget Request \$270683.00

[PAGE 5]
Administrative

Salaries tin Director 9,000.00 Executive Director 3 10,000.00 clministritie Asst. 5.00.00 27,185.00

Office Equipment and Supolies 410,00 300.00 710.00

Travel Recruitment, Official Conferences and Consultations=/ 1,800.00 1,800.00 10.000.00

Special Projects ecial Frojeccs

To provide mechanisms to assess-present,availableinformation and oersonnel in the various fields of interest of the concept,

1.Conferences=-4annally\_(@ 2,000.00 ea.) Approx. 20 participants 28,000.00 2. Special Consultants 5.000.00 3. Field Trios 3. Field Trips 5,000.00

Tota Budget

11 48-3

PROPOSED BUDGET Fiscal\_Year 1955-1956-

[PAGE 7]
PROPOSED BJDGET Fiscal-Year 1955-1956

Project #1 Basic Studies on Human Brain Functions

48-3

[PAGE 8]
PROPOSED BUDGET. Fiscal Year 1955-56

[PAGE 9]
Hosoital Balance shows 22,88l,59.,Thore 1s an error in the amount of \$48.60 which waa credited incorrectly. Our-balance above is the true balancs

48-5

HOSPITAL November 1955

Balance 1 November 1955 Recoivod

8,718.76 25.000.00

Total to bo Accounted ror33.218.76

[PAGE 10]
Total Expenditures

Balance 31 August 1955

Balance 1 August 1955

\$7.472.41 9.451.98 \$16.924.39

[PAGE 11]
48\~5

[PAGE 14]
4815

[PAGE 15]
B September 1955

[PAGE 16]
Cash on lland Oct. 1. 1955

Ceoh in Bank Oct. 1, 1955

Advanoes to Employees Cash Received (Special amount for a special trip)

Total to bo Accounted for \$18.261.58

[PAGE 17]
Totol to be accounted for \$78.175.58

Omber 1955

48-5

[PAGE 18]
Total to be Accounted for \$43,125.97

2.143.69 Totalxpenditures

104.76 Advances to Employges

200.00 Petty Cash

40.677.52 Cash on hand

Total Acoounted for \$43.125.97

[PAGE 20]
Cash on Band August 1, 1955 Cash in Bank Auguat 1, 1955 Cash Received Advances To Employees

Amount to be Accountod for \$45.846.60

B C1955

[PAGE 21]
Caah on Hand Sept. 1, 1955

Cash in Bank Sept: 1, 1955

Amount to bo Aocountod for \$17.253.12

[PAGE 22]
hery Jret

486

[PAGE 23]
November 1955

48-6

[PAGE 24]
Cash on Hand-Dec.1,-1955 40,822.12
Petty Cash 203.85
Advances to Employees 2,100.00

Total to bo Accounted for \$43,125.22

Exoenditures

Total Expenditures 2,143.69

Advances to Employees 104.76

Petty Cash 200.00

Cash on hand40.672.52

[PAGE 25]
HOSPITAL JULI 1955

48-6

Experditures

[PAGE 26]
Expenditures:

Total Expenditures

Balance 31 August 1955

48-6

ASRITAL 1955

Balance 1 August 1955

\$7.472.41 2.451.98 \$16.924.39

[PAGE 29]
Expenditurest

2 Desk Lamps 3 15.67-31.34

1 Piling Cabinet59.50
90.84

Hospital Balance\_shows 22,88l.59.Thəre is an: error in the amount of \$48.60 which was credited incorrectly. Oir balance above is the true balance

ha Jrtths.

HOSPITAL November 1955

48-6

Balance 1 November 1955 Received

8,718.76 25,000.00

Total to be Accounted tor 222l8.76

[PAGE 30]
Balance 1 Dec. 1955

\$23.832.92

Balance

\*Hospital showa expenditures of \$10,996.30 Difference of the \$48.60 which was credited in error last month.:

48-6

10,947.70\*11.885.29\$22.832.92

[PAGE 31]
Cash on Hand June 1, 1956 Petty Cash Advances to Employees

Exoenditures

1 havo ezaainod ard spprived the subnlt: oxponditures. 1 1

TSS/Ccenioal Diviston

Pate:

B June 30, 1956

48-7

[PAGE 32]
June 1956

Balance June 1, 1956

Expenditures:

\* Equipment

1 Filing Cabinet 59.50

1 Gas Rogulator 38:50

1 Thermoswitch 30.00

1 Cenco Electrical Heater 13.00 11-00

I have examined and appreved the submite expenditures.

TSS/Chenical Divisiou

Date:

[PAGE 33]
May 15, 1956

Enclosed please find the the emount of \$25,000. Thia sum is to be us6d work in the field of Human Scology C

I have examined and approved the subaittad expenditures.

Dater

chedf

TSS/Chemical Division

[PAGE 34]
Expenditures

I have exaninad and approvod the subaitbed expenditures,

Datat

Chier TSS/Chezical Division

48-8

[PAGE 35]
Balance May 1, 1956. Received

Total-to be Accounted for

Exoenditures

10.00
Maintenance 2,400.00
Rent 838.40
Travel 104.58
Elect. 106.17
Telephone 75.50
Equioment\* 15.98
Ref. Library 8.77
Entertainment
Special salary payments 200.38
Soc. Sec. 4.01 2,000.00
Admin. Fees
Office Supplies,Postage-&-Misc. 457.60

Total Expenditures

Balance

Total-Accounted for

\*1 Filing Cabinet59.50
1 Stopwatch- 16.00
75.50

I have examined and spprovod the submitted expenditures.

TSS/Chewical Division

48-8

Dateu

[PAGE 36]
I have ezinined anl Approved tha subaic expenditusos. ii.

Dats;

TSS/Chenioal Divisica

[PAGE 38]
nonnuz poa: Deputy Direetor (Bupport)

SUBJECT H

REVERENCS

; Tas Sono to D0/8 and D/P dated 10 June 1055 re Torminetion of Adainistrative Plea

H

1. You approved tho requept o2 the Forking Connittee to terainato the Adainietzative Plan for Project s of 30 Jsze 1955. "providod, (a) the Ataiaiotrativo plan is folly Czavith through 30 June l95o, and, (h) a suary report 1o subaitced to the D/s end tho Do/9 as of 30 Nuno 1965 giving the disposition aod statup of all fuods and othor Agenoy sscete involyed in this project."f

2. With referonce to provisiou (a) above, the Adhinigtrative Plen was complied githathagugn 30 June l958. The Audit Oftice recently coupleted an acdit o Cron 1 January l95s to 30 June l055 (which was the second and finsl áudlt) asd toch no excepticns to the aáaiaiatrative bandling as sot forta ia-the Plane Ls

3. Vità regarg to proviaton (b) above, a echedule of projeot sxpondituree ie attached aud Sa suppcrtad by cchedulee of logiatical itoms purchased through yand

4. An of 1 July 1955, tee follovingaaggata xere transferréd to the bocks of the successor organisation to Project (TSs Projact #43):

The above cash was exponded in 2uiy and August of l955, and through ths use of a epocial accounting feature the resultant exponses are included in the attached scheduilve. as is the dopcsit end the equigmpnt costseThil.ellowed the Working Cobnittee to account for all of t advances, An anount of s1l.66 renainirg in the coatlazency Tund wHbTotarned to the Agency in Septeuber l955.

418-9

17 May 1956

[PAGE 39]
Chad received \$100,000 and ezpended al1 6. A0 of 1 Jaly 1966, but \$9,263.10. Rent obligntTO08 07 \$7,200 aad salario have scoounted for thie balence.

6. All project böaks sad recorda havo been sudited througà 30 June l0s5, and be have resolvud op satiafsotorlly explained ali audit exceptions.

[PAGE 40]
Frou Dato o? Inneptioo, 11 June 1984 to 50 June 1056

\*. Schedulea attached
\*\* Ratarved to the A69noy
e\*oThis balance obligated in rent (\$7,200) and the balaoce 1u salaries

I have examined and approved the submitted expenditures.

Date:

fl Satl
SDMEY GO Chief
TSS/Cheaical Division

48-9

[PAGE 41]
Sobedule of Furuiture Feuipesnt end Books Purchaeed Throuzh

Froa Date of Taception, 11 2uno 1054 to 30 June 1055

dali of the above items vill ramein the property of the Agoncy.

I havé éxáñined and approvéd the submitta. ed ana apr… expendituves.

LREY GOTIJEL Chief TSS/Chemical Division

[PAGE 42]
Schodule of Nuralture Rqulgrgnt gud Bodte // Purchased Throughr

Froa Bato of Inoeption, 11 Jane 1954 to 90 Jane l95s

2-Draver filo csbinet--lotter sice 90.69
4 Smith & Corona Typovritera 702.00
3 Deak lampt--varicus sixes 135.43 115.60
Flat-top doska=Nzocutivo typp
558.00
Dooretary deaks
103.50
Conferenco desk
Ara evivel posture chairs 170.00
78.90
Sectionel svivel chaira
Adding mechipe 158.00
\*l070 Decade aoaler--Bxtav Religat 1,220.00
22.95
Soquin Godd. Fora Board
S-L siectric Tiser-lsO volts 72.49
Mcchanical counter 9.49
20.09
Code \$7-43l Purae Peg Board
Stoo-vatoh 78-790 6 holder 19.95
#331-BL Strobotac Ualt 150.00
4-mawer file cabinot-lotter eite 每集.74
Halstead teet battery 833.20
Air Conditionore 1,320.50
Condttioning Panel 2,549.33
44.85
eackedores
Bide chairs 55.00
1 X-ray stand-ueed 175.00
33.19
2 Deak lampo
集 Smith  Corora typewritor 202.00
1 Sointillator Dotector and mounting 012.25
真 Cabinet 61.00
皇 Fabricator eye-piece 10.60
真 Projector Polariscope 12.75
集 Volce Masters 429.00
1 Stroboscopic test box 95.00

48-9

-contirued

[PAGE 43]
Totale

elf and whom thiy roseorch activity is torainated, all of the above itene becoe the proparty of

I have examined and apprcved the sur.
expenditures. 一

Dato:

TSS/Chssical Oivision

4189

[PAGE 44]
I have exanined and aoved o sa.
expenditurus.

Dete: TSS/Choxical DAvision

c453

[PAGE 45]
Balancə April 1, 1956 Received

\$19,249.80 0

Total to be Acct. for\$19,249.80 #

Expenditures

Travel 460.66 Reference Library 40.00 Informants Fees 200.00 Eouipment- 1 Stapler 10.73 Office Supplies & Maint. 268.49 Statistical Services 100.00 Salaries (Special Payments & Adj. Est. Payroll) 872.60 Maintenance-refund on Salary of Cleaning Man (221.00) Maintenance. 9.25 Elect. & Telephone 206.66

Total Expenditures

Balance

Total Accounted for

I have exasined and approvad the sucat. sibenditures.

Datet TSS/chonlcal Divisien

HOSPITAL April 1956

[PAGE 46]
Trial Balancs Apr11 30, 1956

I have exanined and appcovel tho expenditures.

tit

Date:

TSS/Chesioal Divtaten

48-10

[PAGE 47]
1. The above Audit Report Instructs the Working Committee to take appropriate action as Indicated in paragraphs 7 through ll of the Report.

2. We have resolved the audit exceptiong set forth in the above paragraphs, ox offer explanatione as followst

Paragraph 7: Upon examining the llst of names of those who attended the operational lwncheon, only two were Agency employees. One dollar has been collected from each of the individuals and remitted to the Finance Divislon, as evidenced by the attached receipt.

Paragraph 81 A "Memorandumn of Understand" with the rolect officiale of the euccessor organisation to (TSS Project No. 48) veete tho title of all Broject assets with the Agency. However, a copy of a memorandum addressed to the Chtef, Finance Divisiou. is ettached, which requeste the Finance Divialon to re. cord thie \$425.00 deposit in a mamorandua afsot account for periodic follow-up.

Paragraph 9, regarding check No. 26 for \$41. 45 to A project representative, traveling
to a eclentific meeting had to have his ticket changed to
a sécond sirline to get whore he was going because of
bad weather, Thle ticket was purchased originally by
Project No. 48 through the use of the air travel card
commented on in the previous subparagraph. The origi
nating alrlino would not change the ticket without the travel
card. a chance acquaintance on the plane, Ltravél C
lent the project representative hlas
card. The check was to reimburse The awes
aixline later gave-Project No. 48 credit for this exchange
in the July 1955 tatement of account.:

[PAGE 48]
Paragraph 9, with regard to the June vouchers totaling \$85.13 more than the qummary accounting: The accounting etetoment wae correct. However, the project bookkeepar failed to attach a "credit" voucher for an amount of \$85.13 to be applied againet travel expenses. In recapitulation, the accounting summary was correct, but the attached documentatlon excoeded tho accounting by \$85.13 because of the lallure to include the refund in the attached documentation.

Paragraph 10: With regard to chocks No. 2 and 3 in the July 1955 accounting, made payable to coneultante in the amomnte of \$145,00 and \$40, 00 respectively, for "coot of businese loat," an agreement wee made with these consultants to pay them \$50, 00 per day for their servicee, except that if their services were needed urgently enough so as to require them to cancel thelr scheduled appointmente, they would bo paid for the cost of buainees lost for that day(o). It was felt that the unusual circumetancea surrounding tho need for these two consultants at this particular time justified the excees cost Involved. However, this practice has been diecontinued and will not be repeated.

Paragraph lli A copy of a memorandurn to the Chlef, Finance Divieion, la Attached which setg forth the Juge 1955 ealary Thls will allog for fome the Sectlon to orfcianly ctote the file on

3.This completea the adminletrative sctlon requested of tho Working Committee with regard to

48-11

CONCUR:

T

[PAGE 49]
MEMORANDUM FOR: Chief, Finance Division Attentiont Saction

SUBJECT:

1. In accordance with our telephona convekeatioa of 23 April 1956, Wfor the and In compllance with the Report of Audit for period ended 30 June 1955, pleaas be advised that fermar Staff Agont sa(terminated 4 June 1955) recoived a gross ealary of \$395. 82 for the month of June 1955 from

It la our understanding that tho above information was taken 2 tormination pay. This memointo consideratioa in computing randum, thorefore, le for informfiion only so that you may officially close the file. 4

Working Committee

CONCUR:

48-12

[PAGE 50]
MEMORANDUM FOR: Chief, Financs Division Attontion A O & L Branch

SUDJECT:

1. The Audit Report for the above project for the period ended
ina 1955.brlnas to attention the fact that a \$425.00 deposit for an credit card, purchased through tha facllitiee of was traneferred to the successor organtzation from without proper notification in the recorde of the Agency.

2. The successor organiratlon is boing Opęrated aa a research activity of T5S, and in that reapect the project officiale have signed a "Memorandum of Understanding" In that title to all assets of the organisation veste in the Agency.

3,  It is roqueated, therelore, that sinco the deposit came from funds, an amount of \$425.00 be set up in Memorandum Account No. 760, "Asscts Writton Off--Further Follow-Up Required-

CONCUR:

Working Committee

418-13

2 6 APR 1958

[PAGE 52]
Audit of lor the Period 1 Jamary 1955 - 30 dane 1955

1.This reort covere an wudit offor the reriod
froa 1 Jenvary 1955 to 30 June 1955 which was made st yor reqzest.  Copies
of the roport are subaitted for each Agency coaponent ropresented on
the project workiag comlttes (Coputy Birector (Support), (ivision
and Sscarity Office). Copies heve also beon fur ished the Tcchnioal
Services Stafr, which assumed reaponsibility for the project from the vision as of 3lDecember l9hs and the Conptroller.

2. The classification of thls project sas chanced effective 1 Jaly 1955 from that of a special project to that of o research sctivity under the jurisdiction of the Tecinical Cervices Steff, and the related addinlstracive plen was. terainated es of 30 Jane 1955. This change was requested by the Chief, Tech ical Services Statr and epproved by the Deputy Mrector (Support). H H

3. The cover Recheniea of this prolctris r€- search facility overtly adsinistered byw vell knovn educational institution. Snarterly edvences of 25,00o.o0 heve beon nade to to take cere of the bilk of project eiponses and sreller advances were rade to for office end certain einor operating expenses.

h. Agsncy advonces to the project and expeuditures by it daring the audit periad sre s:meorteed es follovs:

1 Jamuary 1955) Üuexpended (5ee Agency Kaported Ealsnce Ireviois Fepord dvancea Expenditures 30 June 1955

Fendquertero...
Totel exvenditures ( chedle 1 attached) .....

23 Farch 1956

[PAGE 53]
Inoludoa enradmnce of \$25,000.00 wich ves ta transit from Hesdquarters to at 31 Deccmber 1954.

b At 30 Jane 1955 actually had M,l7h.22 cesh on hend, of viich th,lé2.54 ws élabureed in Jaly and August 1955 for costs incurred prior to 30 Jane 1955 and \$ll.68 vas refonded to the Agency in Jaly 1955. These transactione are relle ted in this report as conevasated as of 30 Jang 1955 becsuge (1) thoy are treated by tho Agency as appliceble to and (2) our audit sas intended to cover tho proysetranos Pletion of its operatioos under the auspices of the gimlnistrative plan whioh vas terainuted on 30 J.ne 1955.

The \$9,263.10 unexpanded bbiknce on 30 Juna 1955 wes 6s3mod by. =Techlcal Corvioes Stafl elrcctive 1 July l955 When it asaamed responsibility for the project ao a reseerch ectivity.

Audlt Conscnta

H ande (b) doouente Arting  exendtnrs furnlehed to the auditor by the vorking conaittce, and (e) Agency records maintained ty the Finance iivisions mid a revier of procedires to the cxtent vossible to. cetermioo coapltance vith the adalnistrative plen apyroved 26 J.ly 1954 and amended 27 0ctober 1954.

6. Upder the provislons.of the adaiaistrative plen, edvances to this rrojact are aitten ofr to costs fros the advence accomt on the tasis of docavents aekooaledging reccipt of he funda by-the project At 30 June l955 all edvances :o the projeat hed boen vrit.on ofl to coote except 67,300.00j this anount vea later written of: in Fobruary.1956 (alnue a refund.of \$ll.68).

cocountin s and excenditure dooionts

7. Voacher Ho. -5? attached to the rebrutry 1955m y accounting covers the cost of an operatlonal luncheon and contains the folloving statementi r

"Lnneheon giveo horo on Fe ruary 2, 1955. ee true name receipte for those present.

"vave not collectad ay money for this luncheon from any of the kemeers at endiog. Fleave notily me if it is necessery and how moch.

The avdltor ves unable to find an. insication that this mat er was ever reaolved. Appropriate ae ion shorld be taken.

2. The April 1955 eecomoting inolades a diesurscvaat (oa Check Po. 19) of Sh2S/0o to the Amerieun Firll es, Ine. for a doposit on e credlt card.

48-15

[PAGE 54]
It 1e reeovanled itet appropriste stepe te takan to ectablish control 97er thie csact so shat it may bo rocovered when there is no Corther need Cor the depo8it.

9.. Ths June 1955 accoantiog ineloded an axpenaitare to an individeel of 8hlah5 oa Check lo. 26 which vo8 not emlained or docasectod. jlso, the voocbere aipzorting tho expenditares for thls moath totelad 885.l3 more then the totel show lor on ho 6xrery eccmting (<2.697.8h). Actio9 choald be take to resolve and diapove of thece dir orepenelese H

10. oo Check Bmbere 2 sad 3 attrehed to We Jaly 1955 acoounting tho projeat dlsbaraed 1k5.00 and l0.00 reopcetively to consaltante for tho "eort of basicezs lost." Thcco payeente vera in additioa to coasalteals! 1eca of \$50.00 a dey md report-writiag lves o1 &6.50 an hoars' It is rcqueated thet jastiflcation for theeo wasaal "eost of basicess lost? peyents be fuaniahed.

Laployves! salrries

1l. stafr arent arsi pad to thle project vao termiaabed ao a1 izency caplovce on 4 8rce4755 bot ves contia.ed e0 en soatvee of the cover faciiity hme The salsry rehedule farolshed to the Fhance Uvieios tor the soth of Jane l955T. the working coo cittee does not reflcct tce salary. paid by mt? thia eaplorse for the first four days of Juce. This tnforcetloalcboald be obteined and reported to the firance livision so that it cak cocplete its records o1 thts ennloyce.

12. taff eseat r ves overprid valers of for tho soath of Joe 1955 sven thoagh he vas torminatad oa 18 June 1955. Ihis enovnt ahoald be estebliehed in the a cocatiog re.oris of :inence Tivisioa en: racorery shold te eftcoted.

adaintstretive lction tepested

13. Aporocriste actioa as indicsted in pora rsphs ? throogh 11 shoald be tken by the workiag comaittse. Fleese iolora t:is offica wen suca sation ras teen coaplcted.

M. y a éorg of thks roport sha rooptroiler ia requested to record and recover the caliry overceysent refecred to in paregreph 12 and to rotify this otlice vhen such actiod hee !cen complcted.

48-15

Copies furnished other offices: Orig. & 2 - Addressee 1- Comptroller

[PAGE 55]
Schedale of Roported Project Expendituree Por Audit Poriod froa 1 Jamuary 1955 to -0 Jue 1955 and From Incept1on on 11 Jane 195h to 30 June 1955

/ Inclndee 1,200.00 propaid ront-1or Jaly-1955.

Schedale 1

[PAGE 56]
MEMORANDUM TO: FROM:

SUBJECT:

As discussed with you previously, it was.decided that items in Expense Account that could not go through-regular channels C wouid be paid for from a Special Fund.I have drawm up  travel voucher and figured it onaRer-diem-basis instead of on an exoense basis Because of this fact would lose the sum of \$91.26.

I am,therefore, forwarding you the original-list of exoenses which total \$765.57-including special clothing (bill atthcheuj.rne sun of \$273.39 was paid directly-to-the Travel Agency-and tre sum of \$231.83 will be reimbürsed on the regular travel voucher.

The sum that-I wish paid-here would be \$169.09 plus.\$91.26 totalling \$260.35.

Expanes 765.57 169.09 lmifrms 596.48

05.22

4816

20 Apri1 1955

[PAGE 57]
Cash on Hand - March 1, 1956
Petty Cash
Advances to Employees
Receipts
I have examirod a... tt
expenditures. SIDREY COATLIEB caver TSS/Cheeteal Divisicn

Date:

[PAGE 58]
Pabruary 29, 1956

check in the amount Znolosed please find the vork of \$40,000.00.This sum-1s to be used fo in the field of Human Ecology.

Eno.

I havé exanined and approved the subait.
hxpenditures.

Chiet TSS/Chamical Division

F1LE 48

[PAGE 59]
本 Equipment: 1 set ear phones 20.00. 4 letter trays 16.50 36.50

expenditures.. I have ezamined and approved

Date:

4.8-18

HOSPITAL March 1956

[PAGE 60]
expenditures, I have ezamined and cppsovol tha suhalt 11 raovol tha euhalb

Dato: frle Jttl TSS/Chenical D:vision

48-18

[PAGE 61]
48-18

Balance 1 Feb. 1956 and total to be accounted for

35,290.90

Expenditures

Salaries and Soc. Sec. Jan./June 1956- 46,775.00
1,200.00
Rent- 200.00
Informant fees 340.97
Equipment\* 133.30
Conference Expense 199.50
Travel 623.83
Office Supplies and Misc. 20.00
Dues and Subscriptions 212.10
Elec.andtelephone

Total Expenditures

\$49.704.70

Qverdrawn

Total Accounted for

1 desk lamp 15.67

1 filing cabinet 59.50

1 Atomizer 9.35

1 type (crèdit) (194.05)

1 Elec. type. 450.50
\$340.97

\*\* \$40,000 donated Feb. 29th-not received on accounting

True balance \$25,586.20

Amount obligated \$5,107.00

oxpenditures. I havs exonined and

Date:

[PAGE 62]
48-18

FILE+8

[PAGE 63]
NB
Salaries are not inoluded in this accounting but are going to be obligated through June 30th beginning the month of February. This-should run about \$50,000.00.

[PAGE 64]
and HOSPITAL Cumilative Experditures July, August & September 1955

48-18

[PAGE 66]
Cash Received:

29.900.00

Amount \_to\_be Accounted for 29,900.00

FILE 48

418-20

[PAGE 67]
Advances To Employees

Amount to-be-Accounted for..

August 1955

FILE 48-20

Cash on Hand August 1, 1955

Cash Received

Cash in Bank August l, 1955

120.00 7.856.65 37,719.95 150.00

[PAGE 68]
helly pottllos.

[PAGE 69]
48-20

[PAGE 70]
418-20

[PAGE 71]
48-20

40,822.12 Cash on Hand Dec. 1, 1955 203.85 Petty Cash 2,100.00 Advances to Employees

Total to be Accoanted for \$43.125.97

Exoenditures

-Reference Library -17.75
Travel 1,?99.49
Withheld Taxes paid 211.20
Office Supplies .85
Dues & Sub. 30.00
Conference Exo. 36.40
Misc.Expense 48.00

Total Exoenditures 2,143.69.

Adyances-to Employees 104.76

Petty Cash 200.00

Cash on hand 40.677.52

Total Accounted for \$43.125.97

FILE 48

[PAGE 72]
HOSPITAL JULY 1955

48-20

Received

\$ 9.263.10
20,00.60
22,263.10

Balance 31 Jüly 1955

[PAGE 73]
Balance 1 August 1955

Balance31 August 1955

NOSBITAL 1955

\$7,472.41. 9.451.98 \$16.924.32

[PAGE 76]
半 2 Desk Lamps @ 15.67.31.34
1 Filing Cabinet-59.50
90.84

孝 Hospital Balance shows22,881.59.There is an error in the amount of \$48.60 which was credited: incorrectly. Our balance above is the true balance

Balance1 November 1955 Received

HOSPITAL November 1955

8,718.76 25,000.00

Total to be Accounted for 33.718.76

[PAGE 77]
Expenditures:

Maintenanca 11.06 Telephone and Electricity 263.86 1,200.00 Rent
Admin.Expense 750.00 Equipment-l Thermistor-App. 300.00 Travel 300.11 Informant Fees 125.00 Lab. Supplies 7.05= Office Supplies and Misc. 242.62 Reference Library 19.35 7,462.91 Salaries
176.50 Special payments-salary
Soc. Sec. 89.24

TotalExpenditures

Balance

\*Hospital shows expenditures of \$10,996.30 Difference of the \$48.60 which was credited in error last month..

hebe fstetis

F7LE 18.

HOSPITAL December 1955

48-20

Balance 1 Dec. 1955

\$ 22.832.99

10,947.70\*11.885.29\$22.832.99

[PAGE 78]
CHAFT OF ACCOUNTS

/NAME OF ACCOUNT

Deposits

LIABILITIES

Accounts Payable Sooial Security Taxes Payable Withheld Income-Taxes Payable Excess of Income over Expenditures

Contributiona Other Receipta

EXPENSES

Salaries
Rant and Utilities
Communications
Speoial Services
Travel
Entertainment
Insurance
Taxes-Payroll
Taxes and Licenses - Other
Legal and Auditing
Bepreciation
Office Supplies and Postage
Dues and Subscriptions
Printing and Stationery
Bank Charges

101 105 110 120 121 130 131- 140

Miscellaneous Expense Grants

201 210 211 250

301 310

401 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 500

[PAGE 80]
1956 and the related statement of income, expenses and unexpended income for the year then endedOur examination was made in accordance with generally accepted-auditing-standards, and accordingly included such-tests.of the accounting-records\_and such other auditing procedures as we considerei necessary in the circumstances.

In our opinion, the accompanying-balance sheet and statement of income,expenses-and-unexpended-income present fairly the financial position of at December 31, 1956, and the results-of 1ts operations for the year ended December 31, 1956; in conformity with generally accepted accounting principles applied on a basis

[PAGE 82]
Contributions received

[PAGE 83]
7/7110\~005- \$718

Flliag cabinet - cap airo steel tnsulated d dravera HxI Drawer W=W. Comtinalloa tock - Shaw-Valber 6248.16(39-2)

1/7110-005- 5713

Same as above, excopt Remtagton-Rand 6212.16(Sc-2) 8

PAGE OF  PAGES VOUCHER NO.

Ser.

\*LEGEND FOR REMARKS: FWT-UNSERVICEABLE. DUE TO FAIR WEAR AND TEAR. SER -SERVICEABLE. RS-REPORT OF SURVEY.

"I CERTIFY that the artictes listed herein are turned in under the circurnstances indicatec in "REMARKS."

The quantities shown in the "ACTION" column have been received.

PROPERTY TURN-IN SLIP

SKGNATURE (ACCOUNTABLE OFFICER)

FORM NO 36-24 (PREVIOUS EOITIONS MAY BE USED) SEP 1953

[PAGE 84]
MENORANTUMA PORIEAPSHCUSS PROCUREMSET CFFICE

(1-50 Strr lye)

Forvariod for your roconis is a photostatto copy of the ou the prealees general relense of forserly rented at

Rnclosure: As boted

Dietribution: Orig à 1 Addresaee v/att

1 - TS8/0

1 - TSS/SRB

2 - 188/cD

TBS/cD (26 October 1956)

26 0ctober 1956

[PAGE 85]
MEMORANDUM FOR THE RECORD

SUBJECT

: The Auditing Firme which might be Used on MKULTRA Projects when Neceasary

1. If, in the course of an MKULTRA project, the contractor asks uo whether we prefer that he use any particular firm of accountants to audit his boc s  we could recommend that he make use of the services of either These to nrma re UnitedStates. Including both

Chief, Headquarters Division, Audit Staff, inforimed me that he bas cleared key individuals in both of these firms.-In making use of these firms, we would facilitate the audit of MKULTRA in the event that for any reason our auditor wishes to contact the CPA auditing our contractor'e books.

mphasized that this was not to be considered as a mandató ocedure and that our contractors should feel free to use any company that they wish. The only purpose in using the above mentioned firms would be if we anticipated the necessity of requiring a witting auditor going through our contractors' books,

TSS/OC:(21 May 1956)

Dijtribution: TSS/OC files- Orig. TSS/CD-1

May 21, 1956

[PAGE 86]
We are now setting uo a mortgage for the committei rentals on

The first month's rent has already been paid and, as far as we know at present.-the rooms will be, available October lst. Therefore, we are mortgaging the rent from November 1. 1956. to June30. 1957 (8months-@-\$890=\$7120)

In addition we are setting aside two months'-rent (\$l,780), representing the penalty clause which we will haye to pay-in the even the lease is-broken before June 30, 1959.

¿ trust this meets with your-aporoval.

Sincerely.

Buisiness Manager

Office of the Business Manager

COFY

May 16, 1956

[PAGE 87]
re Ie r  t

[PAGE 88]
e  e

[PAGE 90]
14 Apr11 1956

MDORANDUN FOSI CAIEF, FIIANCE DIVISIOH

1 TSS/Badget Officer

1 OLTA Subproject 43, Iavotce 5 A110tuat6-2502-10-001

l. Invoice 5 fos the above mubproject 1s attached. It is roqseeted that pawent be sade by five (5) caahier's checka 1o the folloving nooneri

5.2555 \$.9,297.00 drava cn \$15,205.00 drayn ca \$23,120.00 drevn on \$10,315.00 drava on al \$13,446.00 drava on a nl fire chaske to be p

2. The checks ahould be torwardad to Chief, Tss/Chspicel Divisioo, through 1ss/Budget Officer, no later than 1 viay 1956.

. 3. This is a final invoice and vhen paid ccnstitutas\_coaplete payment of this sutproject. The five invoices aggregate \$270,h79.00, and represent tho total expeniiture to be made under Mulara Subpaoject h8. It is requested, thorefore, that the files bo closed.

SIDNEY GOTTLIRB Chier 75s/Chemical. Division

Attachment: Invoice & Certifications

Distributiont Oria & 2 - Addrossce v/attachrpents 1 - Cooptroller

TSS/CD14 Apr 56)

48-28

[PAGE 91]
IAVOICE

For services

\$67.345.00
\$67344.05

CEITIFICATICNS

(1) It is horeby certified thet this 1s Invoice 5 applying to Subproject 48 of MULTRA, that performance is satisfactory, that the services are being sccoxplished in accordance vith autual agreemente, that a dotailed agenda of the payuents and receipts is on file in TSS/CD, that this bill is just and correct and that payment thereof has not yet been made.

Chief, cs/Chenical Divieion

(2). It is hereby certified that this invoice applies to Subproject 48 or MULTRA whioh vas duly approved and that the project is being carried out in eccordance vith the memorandum dated 13 April 1953 froua the DCI to the DD/A, and the extension of this authority in subsequent menoranda.

48-28

Pesearch Director

[PAGE 92]
General Prinoiples Upon which These Propoaals are Based

Our experience during the past two years has taught us a great deal about the problemsinvolved in carrying out rasearch upon humans for intelligence purposes in a university setting under the-cover of an open scientific investigation. Upon initiating the present set of proposals ve feel that it is pertinent to review our experience-and to point out some of-the ganeral considerations upon which these proposals are based.

1. Oor relationship to the company

The company levies-two basic requirements upon:our project.

a. That ve carry out certain investigations which are pertinent to the coapany. and which will help them in their, operations.

b. That our stafr act as their consultants in problems affecting their field of interest.

The demands of these two requirements conflict to a certain extent. If we restrict our investigations solely to topics of direct interest to the company. we shall lose some of our value as consultants; because we stand in danger of losing the insights which come from contacts in the broader fields of science, which insights are fundamental to the function of a good consultant. On the-other hand,-if-we do not carry out some investigations of direct pertinence to-the company, they have some difficulty in justifying their expenditures for our activities.

Some coupromise must be made in order to meet these two requirements.

One compromise is to carry out research which has some pertinence to

c344

Down radd to: NIEt by authoity of date: Jie 1977 A

48-29

Memorandun to A

March 8. 1956

[PAGE 93]
the company and some pertinenceto medioine in general. Unfortunately. this compromise tends to defeat both purposes. A wiser compromise is that of expending part of the time of our staff upon investigative activities diretly pertinent to company interests.. from wnich the medical gain. if any, will be of secondary importancet and to carry cut other inveatigations and activities directly connected with basic problems in the field of medioine. with the underotanding that the information derived froa this is perhaps of no imrediate pertinence to the company except that it vastly enhances our valus to them as. consultants and adviaere; but which will uitimately produce the type of insights upon which major advances in the company's fielda of interest can bo basod.

2. Our relationship to the Hospital and the redicai ccnogl 2. Our relationship to the Hospital and the Kedical School

The hospital and the medical-school-have made available to \_us their faoilities and their sponsorship. Cur role as a functioning part of the teaching and inveatigative ataff of the institution is essential to our cover, without which it is impossibia to carry on the human investigations necessary to our work.It is nəcessary that our staff be engaged in the aotivities proper to the ataff of a medical school hospital. This-cerries with it the impliei understanding that we shall spend some of our time in the care of patients and in the. pursuit of information relating to the understanding of human illnessee and that we shall make some of our information known to the scientifio world in general in the form of researoh report and to the medical students and house staff in the form of lsctures and other teaching exercises.

DowEradeto: CONFIO(NHAL byauthoyity of Ste: Jme 1977

Oen. Prin.

[PAGE 94]
48-29

:ut also, the wedical school has been cooperative in arranging for us to use space, even at the expense of- displacing others who have a great need for this space.-because it is the desire of the administration to cooperate with the company in working on problems of importance to -them. Thus, the medical school also makes two types of demands upon our project:

That we be teachers and clinicians, this carries, with it an implied derand that we keepourselves intinately acquainted with developments in our scientific-fields and carry out research of pertinence to medioine.

b. That we sork on problems directly relevant to the company. These demands levied by the medical school and hospital are essentially the same as those deaanded by tha company. The sane sort of compronise whioh meets the demands of our company should also mest the\_dual denands of the medical centor.

It is in the light of the foregoing considerations that the present proposais are being forwaried.Noither aspect of the activities of our staff and our projeot can be saorificed without daraging the other aspoct.. Therefore, it is our suggestion that thes6, proposals be considered as a whole, even though they-are presented in the fora of thrse separate projects.

Doxograded to:CONEHENHAL A

0, Prin,

三

[PAGE 95]
Doangraded to: CONrbfual by authority of? A date: June 1977

48-29

PROPOSAL f1

General Considerations:

Cur exoerience during the past two years has indioated that it is quite feasible to study foreign nationals under the cover of a medicalsociological study. Using this meohanism one can learn a great deal about these informants whils at the same time meeting the requirements of good cover and overall security. However. these requiraments for.. cover and security pake such studies more qumbersose and laborioua than\_ a non-classified study of a similer nature, and the net yiold of valuable acientific information per man hour expended is less.

In point of fact,-there is relatively little medical information per se which can be-obtained by the study of the personality structure ete. of large nnmbers of foreign netionals, in spite of the faot that it is ralatively easy to make such a study appear to have a valid medical purpose. Because of the expense and difficulty which are involved in such studies. it is ixperativo that -they be oriented to meet a direct intelligence need: for othervise they are not worth the expenditure of tine. effort and money involved.

The prasont proposal is boing put forward because in our opinion it will serve to provide-information of direot value to those concerned with carrying out intelligonce operations. It should be understood that while some infornation of general value to soience should be produced. this in itself will not be sufficient justification for carrying out a study of this nature.

[PAGE 96]
48-29

Basis for this Proposal

In our opinion, one of the primary problems confronting those involved in intelligence operations is the understanding of the paychological and situational factors which cause men to defect from their own national groups and cooperete with other national groupsjto provide infornation to representatives of foreign governments, to become agents and to carry out activities under the guidance of intelligence officers.The intelligence officer is frequently faced with the necessity of seieoting from a group of foreign nationala those individuala who can be persuaded to work for him and to understand their motivations and personality etruoture woll enough so that their future attitudes and behavior can be predicted to sone extent. He has the problea of approaching them,in a proper manner, establishing a auitable .relationship with them and controlling this relationship effeotively undei what are often adverae-and difficult circumstances.

On the basis of our conversations with representatives of the cospany
and from information gained by\_the debriefing of soviet and satellite
intalligence officers, we believe that neither we nor our opponents have
over made a satisfaotory study of interçersonal and situaticnal factors
involved in the foregoing aspects of intelligence operations. It is the purpose of this proposaì to undertake such a study.

Yethods:

Thir investigation will be divided into two parta. whioh will run separately but concurrently.

The Firat part of the investigation will consist of a syatematio

Broposal f1 2

Dow Tad to: CHDTL by utyority of dte: June 1977

20

[PAGE 97]
review of the cirourstances and the characteristica of people who have separated themselves from the aims and goals of their own nation or their own aooial group, and cooperated with representatives of othor nations or other groupe. To obtain this information, we shali draw upon the openly available literature pertinent to the subject. We shall also require-access to pertinent clasalfied information. and an opportunity to discuss certain topics with those having special knowledge of value to us. We shell requiro a realistic knowledge or the circumitances and situations in which intelligence officers operate and if-poseible, an opportunity to observe a typical scene of operation.

This part of the stady will be carried out by a study group made
up of the. Director. the Sxecutive Director, 1 Fsychiatrist, 2 Payohologiste,
1 Social Psychologist or Cuitural Anthropologiat.. The mambers of this
study group will be fully eleared and witting.It is tho plan that over
an extended perlod of time they will make an exhaustive review of
availabla information from whatever sources,and give intensive con
sideration to all of the probloms,both theoretical and practical,which
are pertinent to the toplc under study. They will draw upon consultants ARS
froa whataver fields of knowledgenpertinent to the understanding of AS WELL AS
the problexe with which they are faced; anclearable andjclearable sources
will be apprcached under appropriate cover where necessary. The seoond part of this investigation will consist of an attempt
to uss aons of the knovledge and insight gained by the covert study group in an actual ovaluation of subjects of This

Pro. 1

48.29

Dovngrodod o: CONOA date Ju9 1977

[PAGE 98]
second seotion of the inveatigation will be overt, and will purpogteto be a study of the relation between culture, personality. life atress and illness In à hotrogeneous, group of The informants for this study will te drawn from thed The overt reason for this study is to provide a comparison group in order to verify and extend the results of our previous study wof the Y The covert purpose of this atudy will de to assess each of the informants in teras of bis social and cultural baokground, his life experiencejand his total personality struoture, in oder to develop methoda of understanding the motivation: value syatexs. and probabls behavior of such subjeots under various oircumstances. Tho rembers of the covort-atudy group will ccnsider each-of these informants as if ho were a target individual. Thoy will attompt to evaluate what the susceptibilities of the informant are, which of his drivea and motivstions night be utilized as a means of subverting him and what types of interpersonal rolation would be most effeotive in dealing with him. Having made-this evaluation, consideration will be given to having one member of the group set up an interpersonal relationship with this inforrant. and so manage hin that be changee sone belief, or that he carries out sone bahavior which is degired. (In no case will there be any attempt to recruit thesa informants. No attempts to persuade or control thea will have to do with their political beliefs or any other attitudes which woull give away the study as. having an intolligence background.)

Facilities

The facilities to be used for this study will be the offices and

Pro. 14

48.29

by atrity of: dat:ane 1977

[PAGE 99]
49-29.

INABUILPING

examing roons in our-nev quartersynow being constructed as a part of

the hospital group. All personnel vorking in these quartors will

be fully cleared although not all will be witting.

Badgot

The breakdown of the costs for this proposal are attaohed to

the end of this proposal.

>p. 1

E2 IMFDET: CL BY

[PAGE 100]
48-29

Propcsal 42

Ganeral Ccnsiderations:

The study of the methois.used by-the Communist State Police in the. arrest. detention, interrcgetion and indootrination of prisoners, whioh was carried out during the past two yeors. has shown that the fundamental features of this procoss are these.. The subject is seized and thrust into a new environment in which he is exposed to a series of pressures. both physicaì and peychological. The pressuros of this environment produce in him pronounoed changes-in-his mood, thought, and behavior. and in many of his bodily functions. In this setting. an interrogator seta up a relationship with the subject, and. by using information fron the subject's own lire experience, creates in him additional dependenoy, doubts and guilt feelings. The intorrogator then utiilzes these as well as the desire of the aubject to relieve himself of the pressures of the environment in order to perauade the gubject to make rationalisations, which bave the effect of leading the subject to confora with the desires of the interrogator.

In order to undorstand thase Communist polico\_ methods more fully and to develoo coantermeasures.for dealing with them, it is necessary to carry out further experimental investigations. Ideally, these investigations should take the forn of a preciss reenactment of the Cogaunist procedures using human subjects. But both humanitarien and practical considerations make it impossible to do this within the continental limits of the Unitad States. Therefore,·it becomes necessary. to develop a practical method of setting up experimental gituations which reproduce some of the fundamontal aspects of the

[PAGE 101]
Communist procedures. while at the same time steying within the bounde of the humanitarian, legal and practical considerationa involved.

Such an investigation can be set up in a medical school. and can be made to yield valuable-information, provided it is oriented towerd obtaining legitimate answers to medicel problems of curront interest. Kany diseases which occur in men ariso out of disturbancee. in their relationship to their total environment. Such prrsons come as patients to a hospital. The fundamental-problem facing the physician is that of developing in these patients a new relaticnship to their\_environment.\_and new patterns of attitudes and behavior. He can do this by temporarily placing them in an entirely new environmentel situation, and then sotting up an interperscnal-relationship with them which he manipulates by using infornation fron their own lire experiences and reaotive patterns in order to create within then new attitudes and behavior. Fundamentally, the problem faced by thə physician is quite similar to that faced by the Comsunist interrogator. The information devised fron the manipulation of the relationship between the patienta, his environment, and his physiclan, can be made to provide an incroased únderatanding of the methods used by the Comunist State Police.

The experiments of Thd others have shown that by placing subjects in-a-highly.structurod life situation, involving isolation and the deprivation of opportunities for receiving mesningful. patterne of sensory stimulation from the outaide wcrld. these subjects develop profound changes in zentaticn and mood within a space of relatively few hours. The offects of such a situation upon the subjeot are in many ways similar to those produced by the Communist procedures. There is

Prp. 2

48-29

by aythgrity.of datd: una 1977

[PAGE 102]
48-29

an impairment of mental funotions, and increased receptiveness to suggestion. There is a valid medical reason for reproducing, and further investigating the effects of the procedures.similar to the eprocedures, upon certain catagories of patients who require relier from pressing complaintei for there is good reason to believe that placing such patients in a situation of this nature may relieve sone of their symptomatio manifestations. and make them more receptive to the suggestions of a peychotherapist. Thus, there is a rational, humanitarian and practical opportunity tc carry out, investigations which will provide information of fundemontal value to zedicine, and which should also provide basio knowledge of ultimate fundamental value to those engaged-in intelligence operations.

We have avallable in our olinio many Fitients.with the syndrome of migraine headache.—The-symptoms of this iliness are-the result of oyolic and recurrent changes-of some of the-blooi vessels of the head. This illness is not associated with any irreversible damage to the body. and those who suffer from it are otherwise mentally and physically intact. The manifestations of the iliness apoear to be the result of persistent patterns of behavior arising out of the attitudes and value systam of the petient. It is often extremely difficult to produce any change in the attitudes and behavior of. migraine patients, in spite of the fact that their symptoms may be so severe that they are willing to go to any ends to ssek relief. Ons of the difficulties in treating Such patients has been that of preoipitating them into a new environmental situation which will break up their reaction patterns, and provide

Prop. 2

[PAGE 103]
the physician with leversge for inducing them to develop new patterns.

There is good reason to believe that introducing such patients into an environmental situation similar to that set up by and his associates might produce profound, end potentially benofioial, changes in them.

Methody

During the past two years, we have daveloped a series of testing procedures involving the use of written and oral psychological tests. performance teats such as those in the Halstead battery, and conditioned reflex procedures. Thess have bsen standardised on a variety of subjecto, both thoso that are intact and those having known amounts of brain damage. We nou believe that this battery of tests can be ased to provide reproduoible and quantified measuroment of certain aspects of brain function. They can be used to eatimate the degree of impairment of brain function which\_is produced by-various types of procedures.

It is our plan to establish an experimental unit in which. situationa atilized.bg an be produced. For experimontal.eubjects. we shall use otherwise intact patients having the syndrome of migraine headache. Each of these patlents will be evaluated by medioal and paychiatric examination, and a battory of psychological tests. After evaluation. hs will be\_exposed to the experimental situation. The symptomatio considerations of this aituation upon him and his illness will be observed. At the sare tine, the effeot of this situation on his brain funotion will-be observed by exposing him to our test battery before and immediately after the procedure, Measures of suggestibility will be devised. and an attempt will te made to evaluate

Prop. 24

48-29

FO INFDET: Ct. BY 12zAzE

[PAGE 104]
the effects of this procedure upon suggeatibility. Likewise, the susceptibility of individuals to this procedure will be evaluated by comparing -their prior porformance on psychological tests with their reaction to the procedure. Subjects who are carried through the proceduro to the point where they become increasingly suggestible. and show an increased desire to talk and to escape-from tho procedure. will be introduced into interview situations in which the interviewer will utillze materiai from their own past experience in order to create psyohological reactions within them. The effects of these reactions will bo observed. Likewise. the effect of introducing into the expriaental situation additional threatening stimuli from their-life experience will be evaluated.

In addition to making measurenents upon changes of brain function.\_ produced by this.procedure,we. shall also make measurements.upon changes occurring in other organ systeme. Initially, we plan to consider certain changes-in internal fluid balance and renal funotion which\_\_ are pertinent to headache, snd which are also pertinent to the.. Copmmunist detention and interrogation procedure bocause they play a part in the oiroulatory disturbances which occur during the course of these procedures.

Facilities:

These experiments will take-place in the laboratories of the hoopital itrolf.

The breakdown of the costs for this croposal are attached to the end of this proposal.

F . 2

48-29

[PAGE 105]
Prop0sa1 42

General Considerations:

Kany of the insights and a good deal of the practical infcrmation which was brought to bear upon our studies of Communist indoctrination and interrogation proçedures and our investigations upon the effocts of peychochesicals and hypnosie during the paat two yeara were derived from our past and present studies of brain function and of human adaptations to adverso\_ life situations, The procedures, equipment and staff uaed in these studies will be an intogral part of the other. two projecte. Furthermore, they are a fundapental aspect of our activities in relationship to the hospital and nedical school..

Yethode:

This investigation will continue along the same lines as those of the past two years, aaing the aame equipment and personnel, and using as subjeots for investigation intact persons, persons with various diseases, and persons with certain forms of brain damage. As a part of this aspect of the project, we shallicontinue to devise new testing methoda. including mathods of teating auggestibility. We shall also utilize the mechanism of this project for avaluating the effects of nev drugs, psyohochemicals, hypnosis and various physical situations, when the need for:such investigation arises.

Dovnrto:CCL ty suthoyty of: cato:pyhe 1977 S2 TUPOET. CL. RY

48-29

[PAGE 106]
Comolete Budget  1956-52

[PAGE 107]
Cost Breakdoum for

48.29

[PAGE 108]
48-29

Cost Breakdown for General Adninistrative

Salaries

[PAGE 109]
48-29

Cost Preakdoun on Prooosal f1

[PAGE 110]
48-29

[PAGE 111]
<18-29

Cost Breakdown Proposal f3

[PAGE 112]
I hereby acknowledge receipt of the following checks:

48-30

Cashier's cneck drew on the UM15140,
in the amount of \$5 500.00 fashiers check fM45900, drawn on the in the amount of \$10,900.00 Treasurers
check f60694,, drawn on the in the anount of
\$8.400.00: Cash1er's check70M15128, dt mon the in the amount of \$15,615.00,La11 four checks payable
to

RECEIPT

I horeby acknovledge receipt of the folloving checks:

Cashier's check drawn on the f005140,
in the amoont of \$5,500.00; gashier's check fMs5900, dravm on the in tha anount of \$10,900.00; Treagurers
Chsck g60694, drawn on the In the arount of
\$8.400.00; cesh1er's chack fU15128, drav on the in tha, anount or \$15,615.00, a11 four checks payable
to th

一CDoto2/16/5

ILE48

RECEIPT

[PAGE 114]
\$75,515.00

CERTIFICATIONS

(1) It is hereby certified that thio ls Invoice f4 applying to Subprojeet 48 of KULIR, thet perforsance is satisfactory, thet the services are being acconpliahed in accordance vith mutual agreements, that a detailed agenda of the rayuents and receipts ie on file in TSSCD, that this bill 1s juet and correct and that reyment thereor has not yet been made.

Date:

Chief, Tbs/Chenical Division

(2) It is hereby certified that this invoice applies to Subproject 48 of MLTRA vhich was duly approved and that the project is being carried out in accordance vith the memoranium dated 13 April 1953 froa the DCI to the DD/A, and the extoneion of thie authority in subeequent meroucnda.

Date:

48-32

25 Jauary 1956

Research Dircctor

[PAGE 116]
MONORANTUA PGRI CONPTRGLLER

AiTravTI Finacos Division

Veder the suthorlty. greated ia the sascanhm dated 13 Apri1 1953, troa the DCI to the D0/A, scd the extoraicn of this authority la suteoquent mosoreoda, Subgrojoct 43 ve previoualy eporovd. Under She anae suthority an ad4lttaval 84s ot 140,479.co bea be9a outhceload to cover tho ebprojact's expaases (theroty bringirg to a total or (2ho,479.00 fuada cbligated ducin3 71 56) to bo charaod to A110ta0at 6-2502-10-001.

BIDREY GOTTLIERChtaf528/Cheaical Divieicn

WTY ONLICATION C FUSTO:

Datoi

Distribution Crig 4 2 - Addvceseo

1 - TSS/0

1 - TSS/FASB

1 - TSS/SRB

2 - TSS/CD

53 R7 Eoveabee 1955)

7 8cvoaber 1925

[PAGE 118]
We have examined-the-balance sheet of

1955 and the related statement of income and unexpended income for the period from May 25 to December-31, 1955. Our examination was made in accordance with generally accepted auditing standards, and accordingly-included such tests of the-accounting-records and such other auditing procedures as we considered necessary in the circumatànces.

In our opinion; the accompanying balance sheet and statement of income for perlod and unexpended income present fairly the financial position December 31, 1955, and the results of its operations for the period from-the date of incorporation, May 25, 1955, to December 31,:1955, in conformity with generally accepted accounting principles.applied on a consistent basis.

[PAGE 119]
BALANCE SHEET

As at December 31, 1955

Liabilities

[PAGE 120]
INCOME FOR PERIOD AND UNEXPENDED INCOME

For the Period from May 25 to December 31, 1955

Contributions received

70,000.00
8,000.00 78,000.00 106,058.56

[PAGE 121]
This Ulget is' divided into. three general headings each covering a project.-
The stüdies of brain function and the:effects of various drugs and procedures
upon brain function is a continuing project which is primarily under direction. 一D

The completion of the study of th nd the new project on the study of Defection will be under my. direction.However, it should be understood that both of us actually participateto-some-extent-in\_all of the projects. The difference in the salary-allccated for-the two-of us.is.primarily.based upon the fact that much more of my time is spent in the administration of all of the projects.

Project D The compilation .ofthefundamental data from .th study has been completed. With the completion of the interviewing.-it-has been possible to cut down materially uoon the staff assigned to this: project. The following members of the staff will be separated-from-our-payroll.on July:lst:

The material assembled in the course of this study is quite extensive. When properly analyzed, it promises to provide us with much valuable information. This apalysis, however, will take at least 6 months and some parts will probably have to continue for the entire year. In the initial analysis of these data, it will be necessary to have the participation of 1 psychiatrist, l psychologist, l physician, 2 research assistants as woll as typists. It will also be necessary

=506

WARNING NOTIZESENSIPVE TELLIGENCE

[PAGE 122]
to have the services of a statistician.

For the purpose of analyzing these data and preparing the necessary reports. we are assigning mèmbers-of-our-staff to continue with this project in the.. following categories:

Suoolies will be required for this work..

of reports is essential to our realizing-our investment on this project. The expense of this analysis is only a small proporation of the original-cost of gathering the information

Study of Defection

It is estimated that the study of-defection will get under way in-the Fall. after the corpletion of the major part-of the work in reviewing the data from the pnoject.

Some of the personnel in this project will be new.Specifically, it will be necessary to have a staff member who is competent. in the fields of history. political science and the social sciences, as-well-as-a-replacement for

The salaries budgeted for this-new project is drawn up on the basis of spending only 2/3rd of the annual salaries of the staff during the forthcoming year.

WARNING NOUICE SENSITIVE INZELLGENCE SOUROES AND METHOLS INVOLVED

[PAGE 123]
418-35

Brain Study Project

This is a continuing project. The only new staff member assigned is a

psychologist assistant who will carry on psychologicaltesting in this

project under the direction of

so that he can participate in the other two projects.

SENSITVEINTCLLIAENCE

[PAGE 126]
Sec.-Treas.

figai Ctstiicieg

48-35

[PAGE 127]
RECEIPT

Receipt 1s hereby acknowledge of Check #197120, in the amount of \$37,719.95,

Dotor Ang: 19 1953

RECEIPT

[PAGE 128]
MEMCRAEUN FOR: CHIEP, FIRABCE DIVISIOS

VIAI

15s/Budget Officer

SUBJSCTI

KULTRA Subproject 49, Invoio f3: A110tmont 5-2502-10-001 ent 6-2502-10-001.

1. Iavoico f3 covering the above subproject is attechod. Other invoicee vili rollov later. It is requested that payoent te mode by cnahier'a checso es follovs:

0no check for \$33,000.00, drawn on end dgeeh check in the acount of e, bboth payable to the

2. Both checka should to farvardod to Chief, T3/ckealcel Diviaico, thruch Tue/eudget Officer, no Jater than 25 Octoter 1955.

SIDNEY OOATLIEB Chief Ts8/choutcal Divieica

Attachsenti Invoice & Certificatiane

48-36

12 October 1955

[PAGE 129]
For sorvices

60,000.00

CERTIPICATIOKS

(1) It is bereby certified that thia is Invoice #3 applying to Subprojoet 48 of MUlA, that perfonzance 1s satisfactory, that the services are being accoaplished in accordance vith mtual egreements, that a detailed agenda of the peyments and receipts is on file in T8s/co, that this bill is juet and correct and that payaont thereor has not yet been rade.

Date:

Chiet, Teß/Chemical Division

(2) It is bereby certified that this invoice applies to Subproject 48 under ULTRA which vas duly epproved end that the project ia being carried out in accordance vith the memorendum dated 13 April 1953 froa the DCI to the DD/A, and the extension of thi authority in subeequent memoranda.

12 October 1955

Research Director

[PAGE 130]
MENRAODUH FORI CHINF, PINANCS DIVISION

1 TSS/BudgetOrricer

SUBJECT

Subproject 48 VLRA, Iavoice 2
411otmmnt 5-2502-10-001

Invoice Eo. 2 for Dubproject 4s of Projeot MuLa 1e

atteahed, Other inroices vill follow later, It is requeetel

that paysont be sade by oashier's cteck drata cnpp

B the asount of \$37,719.95, payáblo to t

should bo sant to Chief, TSs/co through Tas/Bodget cfficer by

Thureday, 15 August 1955.

SIDNEY GOTTLIES Chief rSS/Ghaaicel Divieion

Attachnantal Involco & Certifications

Diatribution!

Orig & 2 - C/Finance Division

i - Coptroller

1-TSS/FASB

1 - TSS/SRB

2 - TSS/cD

L17 Aagust 1955

49-37

17 Angust 1955

[PAGE 131]
.837,719.95 For servicos...

CERTITICATIONS

(1) It is hereby certified that this is Iovoice Ng. 2 applying to Subproject 48 of MULRA, that  foraance is setisfaotory, that the sorvices are bsing socoapliahed in socordance vith mutual agreements, that a detailed agenda of the payoents and receipts is on file in Tss/@, that this bill is just and correot and that peywent thereof has not yet beon made.

Date:

SIDNEY GOTTLIED Chief, TSS/CD

(2) It ie hereby certified that this invoice applies to Subproject 48 under MULIRA which was duly approved and that tho project is being carried out in accordance with the memorandua dated 13 April 1953 froa the DCI to the DO/A, 'and the extonsion of this authority in subsoquent momoranda.

418-37

17 Aug 55

Resaaroh Director

[PAGE 132]
17 kugast 1955

48-38

EENRANDUA PRI- COPTIROLJUR

ATTENTICsPinaaco Division

SOJECTMRULARA Subprojoct 43

Under the euthority grantod in the zaxoranhm dated 13 April 1953, fros the DCI to the D/à, and tha extonaion of thia authority in mubsejuent zonoranh Subprojoot 43 was previoualy approved. Coder the pao authority an additiooal mn of l00,000.00 has beon authorizod to covor the abproject's axpensos (theroby bringing to a total of \$100,000.00 fuds obligatod during FY 56) to be charged to Allotaent6-2502-10-001.

SIONEY GOITLIXB Chief TSS/Chanical Division

APFROVID FOR COLIGATIOS OP PUNDS

Rezcareh Director

Patet

Diotributiont Crig & 2 - Addresaee

1 - TSS/0C

1 - TSS/FASB

1 - TSS/5RB

2-TSS/CD

pa7 August 1955

[PAGE 133]
27 Jaly 1955

MOIRASDCN FOR: TEE CONPTROLLER

ATTiTIOs: Pinance Divloton

SUBJICT 1sEUlRe, Sobproject 48

Uadar the authority granted in the sasorandua dated

13 Apeil 1953 froa Uhe DCI to the D0/A, aud the axtansion

of ttie authority in prbeoquant mexeanda, an edlitional

837,672.00 0f Uhe over\~al1 k20LRA fode bas been obl1-

gated to cover the gabprojoct'e axpocpas,

STONEY GOTTLIFA Chief TSS/Cbeaical Diviaion

APPECVLD PCR QULIGATION O PUES:

Fecoarch Diisotor

Dater

Ditritutioa、 Crig 4 2 - kddresse0

1 -TSS/0C

1 - TSS/FASB

1 - Tss/RB

2 - TSS/@

48-39

[PAGE 134]
MEMORANDUM FOR: DEPUTY.DIRECTOR (SUPPORT) DEPUTY DIRECTOR (PLANS)

SUBJECT:

H ProseceH

1. As r 30 June l955 this office vill have eliminated those phases bf financial and adminiatrative activities which categorized as a. project subject to Section 9.4 of the Confide Tuus Regulations. After 30 June 1955 TSS will operate n a manner consistent with other similar reserch projects undertaken by it.

classificationof Projects fron that of a CIA special project to that of a research activity of TSS, and further, it is recoumended' that the Administrative Plan be teruinated as of 30, June 1955.

APPROVAL:

GSA/DDS

(Working Committee)

DD/8

(Working Committee)

DD/S Representative (Working Committee)

Executive Secretary, Working Commtttee

一

48-410

10 June 1955

[PAGE 135]
1h-8h

[PAGE 136]
KEMRAROUH FOR: CHILY, 7LSANCE DIVISIOT

1To8/Budgat Officer

SUBJICT

1 Poleet VvLtka, Subprojeat Bo. 48 Iaro1c9 f1. Allotont 5-2502-10-001.

Invoice No. 1 for Sutprojoot 43 o? Frojoot kavLiRA is

attacbed. Otber inrcices vill folloy letor. It is raquested

that payzent bo made by carhiar's chock draa oa a

n the amount of \$29,900.00, payable to th

phould te cont to Chies, Tss/cD through Tss/budget Osrloor by

8rida, 17 Jme 1955.

SIDNEY GOTTLIES Chler TS9/Chaaical Diviaion

Attecheonter Invoico & Cortilicaticns

D1stributioat Orig 0 2 - Addrepeee 1 - Coptrollar

1 - TSSAFASB

11- TSS/CD

1 - Chrono

48-42

9 June 1955

[PAGE 137]
PEUYPICOPTROLE

ATETIIOSI Fiotcce Divisica Prajat , Srject 48

tuéer the authority aruntet in the pmoorcutae dated 13 Ap:11 1953 1ros the D2I to tbe m0/a, cnd Che exseoston of thie autkority ia sabseqeat saorania, Smbproject h8 has baen approved, snd \$30,000 of tho crer-all Project !8a Cuale have beeo cbligatel to covar the mbprojoct'a exponses 6d ahou14 be clerged to Al1otent 5-202-10-00.

SIDNT GOTTLIRS— Chier. T3s/Chacicel Divtsion

ATTROVED FOR OSLTOATICN OP FU3031

deacarab Director

xtal

Diacribatioct A44reoace - Orig. & 2

TSS/∝ - 1
TSS/FASB - 1
TSS/ERB -1
TSS/CD - 2

118-43

3my 1955

[PAGE 139]
Fiscal Year 1955-1956

Special Proiects To provide mechanisms to assess present, available informatior 'and personnel in the various fields of interest of th concept.

1. Conferences - 4 annually (@ 7,000,00 ea.) Approx. 20 participants \$28,000.00

2. Special consultants 5,000.00
3. Field Trips 5,000.00 38,000.00

48-44

PROPOSED BUDGET

B

[PAGE 141]
Fiscal-Year 1955-1926

Proiect /1

Basic Studies on Human Brain Functions

49-44

FROPOSED BUDGET

[PAGE 142]
PROPOSED BUDGET Fiscal Year 1955-56

48-44

[PAGE 143]
ADDENDUM FOR THE RECORD, SUBPROJECT 48

The purpose of the Addondum is to set forth the mutual adminiatre tiye resppnsibilities of the -B the sponsor. Therefore, it is mutually agreed that,

A. Funds shall be made available for the operation of the the basis of an annual itemized operating budget prepared by the Lith the advice and guidance of the sponsor. This budget shall set fofth, but not necessarily be limited to, the following:

(a) Total compensation of personnel;

(b) Euipment cost (scheduled, if possiblé);

(c) Travel-and per diem expenses;

(a) Operating expenses;

(e) Contingency fund; and Contingency runa;, ana

(e) With reference to total-compensation of personnel, the Shall submit a manning table with the budget showing the positions to be filled and the salaries applicable

B. Funds shall-be advanced to the appropriate by the. sponsor.

In a manner deemed

2 C. Thel ghall agree that funds advanced by the sponsor shall be expended ly ror purposes as designated by the sponsor.

D. An authorized official shall give a signed true-name receipt to the sponsor for each advance of funds.

E. The shall agree to keep books and records in\_a form and manner as designedahd/or approved by the sponsor, and to submit monthly summary financial statements in a form designed and/or approved-by the sponsor.

F. The Shall submit to the sponsor an annual audit of their books by a Cértified Public Accountant, In addition, the sponsor shall reserve the right-to audit and examine the books and records at any time.

G. The. hall agree not to change their corporate form of organization, nor to amend their charter or bylaws without first receiving the concurrence of the sponsor.

H. Title to all fixed assets (equipment, technical equipment, furniture, fixtures, eto.) purchased with the sponsor's funds shall remain with' the sponsor. Upon completion of the program the sponsor will instruct the investigator as to the method and mode of disposal.

I. Expense policies of ther shall be those determined and/or approved by the sponsor, and if it is decided to terminate the

48-415

[PAGE 144]
relationship\the agrees to return to the sponsor all or any requested unexe ftion of the funds provided by the sponsor for support of the s well as other fixed or tangible assets thereof which hay have been purchased with the sponsor's funda,

J. The Bhall agree to obtain wherever possible, documentation for expenattures and to retain suoh documentation in a manner guitable to the sponsor: B

K. All personnel of the witting of U. S. Government interest shall sign Secrecy Agreements and/or Memoranduns of Understanding.

48-45

[PAGE 145]
•. MEMORANDUM FOR THE RECORD

SUBJECT:Project MKULTRA, Subproject 48

etting forth their and research program.It rs a continuation and expansion of the research activities that have been carried on during the past tvelve months as a part of Project 一

2. It is planned to allov Project to expire on 30 June=1955. H

3. One of the oblectivea of Subproject 48 vill be to acquire those assets of hich are considered to be of value.

4. The total cost for this investigation will not exceed \$270,479.00, including an 8% administrative fee, for a period of one year.-At the present time the sum of \$30,000 is being committed. The balance of the total will be committed at a later date.

SIDNEY COTTLIEB Chief.TSS/Chemical Diviaion

APPROVED FOR OBLIGATION OF FUNDS:

APPROVED FOR ADDITIONAL ORLIGATION OF FUNDS:(\$100,000.00)√

Datos Inj 107. 155 1/

Date:17Ahy. 191V

Originai only Attachment

APPROVED FOR ADDITIONAL OBLIGATION OF FUNDS: (\$140,479.00)

by actforiy of cate:un 1977 E2 PFDEI CL BY

E2 IMPDET; CL BY MWAWK

Dovngdedto: CORDEAL by odthortty of: e czte: Jine 1977

18-46

DRAFT

3 May 1955

[PAGE 146]
A. On February 14, 1955 we presented the following memorandum relating to the
needs of in the field which we have.designated Based upon our experience and knowledge gained during the past year it is our opinion that the\_company's needs in our field of interest fall into the following categoriesr 4

1. A need for a better understanding-of the functions of the human brain and hcw these are affected by-chemicals, physical injuries; and procedures such as isolation and hypnosis,

2. A need to know.more-about-what-kind of information must be obtained about individual men in-order to assess-them:in:terms of their capabilities : and probable performance in various situations; and a need to know how to. obtain this information under-operating conditions.

3. A need to know more about the genesis of the attitudes, behavior, and motivations of man and how-these-can-be-altered and controlled...

4. A need to know what aspects of the-culture" and society from which an individual originates-must-be-taken-into consideration in assessment.: and prediction of performance.

5. A need to know more precisely how stress situations stemming from interpersonal relations affect-human-behavior, attitudes, thought processes and bodily functions;

6. A need to have available a group of consultants, knowledgeable in the fields deseribed above, and also witting of the general problems faced by the company in these fields; who can be called upon to give advice and assistance about immodiate problems which arise from time to time; : and who can also from time to time review the fields of our own efforts and those of the. enemy, and advise what new investigative programs need to be undertaken.

48-46

March 4, 1955

[PAGE 147]
E2 IMPDET; CLrBY areas of interest defined in. this memorangam taken together constitute the general area of interest of the as defined by us.

It-is our understanding it has been agreed that these points do represent important areas of interest fon and that.a general program must be imolemented in order to meet these necds. The purpose of this memorandum is to implement the Implementation of the involves threo.general steps:

2. The cevelopment-of new knowledge in areas of pressing importance through the establishaent of research programs.

1. It will provide-a-covert-funding mechanism for-projects whichmay wish to set up in the general field of including the project at—

2. It will provide a covert mechanism-for making contact with scientists in our fields of interest and-for-obtaining-information from them and other sources without ręvealing Government interest

3. It will provide a means of holding-scientific conferences and symposia which will make it possible for us to have a rapid survey of information and potential assets in our various fields of interest

4.  It will provide a mechanism for assembling a group of consultants and for funding them without revealing Government interest. . …\*

It is proposed that the shall be incorporated and established under the guidance oflegal representatives. It will be arranged that o viil be able to retain control of funds deposited with the fand

[PAGE 148]
It is our plan to state that the lawyer, for our present anonymous donor has decided to set up this as a non-profit, incorporated foundation to handle The membership the funds which he is now administering for of the will be limited to-those administering the funds. will be Fresident, and I will be Vice President.: will be Secretary-Treasurer. A few other "members"of.the may be appointed if this seems advisable. B

to recover these funds if it wishes. The will Follow standard accounting procedures and the books will be available for audit and review.

For the present, the will occuoy an office at It is 3
anticipated that separate-offices-for-the will be rented in a secure
place in the area at some time in the future.  It is. planned to
have a suite consisting of an outer office and an inner conference room. These
offices of the will provide a place for meetings with persons\_whom It would also provide
it would be unwise to meet
a secure repository for classified-docunents.The budget for the Provision is also made
includes the salaries for
for a clerk-typist who can be assigned-to:tht as its activities grow. During the coming year the will sponsor conferences of the best
available scientists active in"several-fields of pressing interest to the
Ecology program. Four conferences are.planned under general headings such as: attitude hehavior. and motivation.

4. The pctentialities and limitations of hypnosis as a means of altering hunan behavior.

A

[PAGE 149]
bə asked to participate in each conference and present a snort paper covering their major area of competence. Each paper will be open for discussion by members of the group.Scientists-who-participate will be specifically selected by invitation, the criterion being their competence in the field. Their expenses of attendance will be paid.-It is anticipated that each conference will cost approximately \$7,00o.In addition to those actually participating in the conferencé, there will be an opportunity for-non-participants to attend and observe the proceedings. The proceedings of each conference will be printed. We feel that conferences such as these-will-not only make it possible for us to obtain a rapid survey of the present state of development in esch of these fields but will also enable\_us to assess the caliber of participants and spot in the future. various men who might be useful-assets to The provision for special consultants allows for the expenses of consultation of various cleared scientists on ad hoc problems arising in relation to the needs of the  progran and of

provides also for-one-field trip to an overseas The budget for thes
country. We anticipate that studies of foreign nationalities to be carried on during the coming year will bring us to the. point of considering
in
the advisability of setting up similar studies overseas. It will probably be to visit the scene of proposed
necessary for persons representing the
activities overseas to assess the potentialities of the area and determine the
manner in which these studies shoyld be-set up. The general purpose of the projects at II. PROJECTS AT
is to provide a group of central advisory consultants for the guidance of the and for the management of the and also to set up rescarch programs in special areas of
interest where there is a pressing neoi for more information. The proposed project is divided into three categories headed:
-budget for the

48-46

Do of ca 1977

DowTe by 77

[PAGE 150]
A.General Administrative Costs forprojects. B.- Froject I - Basic Studies on Human Brain Function

C. Project II- Factors Affecting Behavior, Attitudes and Motivation of —D

A. General Administrative Costs for Projects: This segnent of the budget includes the cost of facility at and .equipment travel, and office supplies directly-attributable to administering the and projects. Administration.of\_these projects will be under the Director and Executive Director-whose.salaries along-with that of the:administrative assistant haye been included in the project of the

We have included in this general administrative budget the administrätive H 11 fee for This sun is now set at of all monies handled by and covers the clerical and administrative costs of handling the payroll; -H preparing salary checks, the cost of space used-at and the Social Security paymonts made by for people on this payroll. The exact amount of this cost will not be stated-at the p esent time because we anticipate B that the will deposit with only such amounts of money as are necessary to cover payroll and H expenses going through The sum of \$14,000 which is given in the budget should represent top limit. However,-it must be pointed out that and similar institutions) have a usual administrative·fee between 10% and 20% which is deducted from all grants.: It is my understanding that the charge on B grants given by ths will be set at around 15% during the forthcoming year. The 8p fee which is charged on the grant is the lcwest chargo which hás made on any grant of this size. -Since this grant ostensibly comes from a private donor the reason for the low chargeis not completely apparent to those who hanile the money. Furthermore, a to:

二7A

[PAGE 151]
assure me that does not cover their the administrative authorities at total cost for handling payrolls and for space, and they may wish to consider with our representatives the possibility of increasing their administrative fee. However, this matter-has not comeup yet.

The general administrative project also provides for 4 clerk-typists. These clerk-typists will not actually be used in administration but will be hired and assigned to the various projects as-the-need-arises.-We are retaining an administrative typing pool in order to'be free to control their number and assigment. H

B. Basic Studies on Hunan Brain Fnnction: These studies are being carried out in the laboratories ata The entire project includes five (5) studies which are being carried on in-parallel.-

1. The measurements of clinical changes in behavior, thought, speech, ete.

2. Measurements of brain function by standard psychological testing procedures.

3. Measurements of brain function-by psycho-physiological testing procedures (the llalstead Battery and special modifcations).

4. Measurement of brain function by conditioned reflex techniques.

5. Localization of areas of brain damage and the site of action of drugs. The general. purpose of this program is-to understand how hunan behavior is related to brain function. The scope of-the-five sub-projects allows us to set up measuring devices and acquire a high-level-of knowledge in areas of neurology, pharmacology, and physiological psychology which directly pertain to the use of drugs, hypnosis, brain damaging operations, electronarcosis which are now boing employed in Intelligence operations or are likely to be so employed. Furthermore, it provides us with a cadre of eleared scientists working in this field who can beutilized as special consultants if need be. P C. Factors Afrecting Behavior. Attitudes and Motivation of This.project also includes a number of studies being carried on in parallel.

[PAGE 152]
1. The anthropological team isinvestigating the cultural and social daterminants of behavior in the subjects and the impact of cultural change upon these. :-

2. The psychiatric group is working on-the dynamics of personality development-in these subjects and the manner in which their attitudes and motivations have been formed.

3. The psychologists are engaged in evaluating the usefulness end applicability of comonly used psychometric-tests-in-the-evaluation-of-members of this group. 4. The physieians are concerned with the evaluation-of the reactions of this group to stress situations.

Each of thesesub=projectsis.capable-of-being-developed into a major project of its own covering one of the important areas of interest outlined in the memorandun of February 14th (above).Based upon the information gathered from B the survey conferences to be-held by the.during the coming year and from our experience gathered from the.present study\_of new studies in the fields of alterations of attitudes. behavior, and motivations, evaluation of human capabilities and future performance,-etc. may be designed by the various members of the staff of this projeot.

During the coning year the various members of these teams will also be asked to consider the possibility of developing-investigativeprograms in other areas of interest covered by the concept as outlined in:our mêmo of 14 February 1955.

.48-46 -7

owngrades to y autypitsof: A ate:une 077

[PAGE 153]
SECRECY AGREEMENT

MEMORANDUM OF UNDERSTANDING

1. I acknowledge the fact that because of the particular relationship between myself and the United States Government, I will be the recipient of information which, in itself or by the implications to be drawn therefrom, will be such that its unlawful disclosure or loose handling may adversely affect the interests, and possibiy the security, of the United States of America.

2. I will always recognize the paramount interests of the United States Government in information which I may possess or acquire as a result of conversations with Special Representatives of the Government or as a result of requests placed upon me by Government representatives pursuant to this understanding.

3. I solemnly pledge my word that I will never divulge, publish, or reveal either by word, conduct or by any other means, such information\_or knowledge, as indicated above, unless specifically authorized.

4. I agree not to inform anyone that\_I am being considered for a position with the United States Government, unless specifically authorized.

5. I agree not to discuss by name or otherwise any individuals with whom I have talked in the course of making application for employment with the United States Government,

48-47

[PAGE 154]
MEMORANDUM OF-UNDERSTANDING

1. I acknowledge the fact that because of the particular relationship between myself and the United States Government,-I will be the recipient of information which, in itself or by the implications to be drawn therefrom, will be such that its unlawful disclosure or loose handling may adversely affect the interests, and possibly the security, of the United States of America.

\- 2.-I will always recognize the paramount interests of the.United States Government in information which I may possess or acquire as a result of conversations with Special Representatives of the Government or as a result of requests placed upon me by Government representatives pursuant to this understanding.

3. I solemnly pledge my word that I will never divulge, publish, or reveal either by word, conduct or by any other means, such information or knowledge, as indicated above, unless specifically authorized.

4. I agree not to inform anyone that I am being considered for a position with the United States Government, unless-specifically authorized,

5. I agree not to discuss by name or otherwise any individuals with whom I have talked in the course of making application for employment with the United States Government.

(0) f15 19 00 10/

48-47

SECRECY AGREEMENT

[PAGE 155]
SECRECY AGREEMENT

MEMORANDUM OF UNDERSTANDING

1. I acknowledge the fact that because of the particular relationship between myself and the United States Government, I will be the recipient of information which, in itself or by the implications to be drawn therefrom, will be such that its unlawful disclosure or loose handling may adversely affect the interests, and possibly the security, of the United States of America.

2. I will álways recognize the paramount interests of the United States Government in information which I may possess or acquire as a result of conversations with Special Ropresentatives of the Government or as a result of requests placed upon me by Government representatives pursuant to this understanding.

3. I solemnly pledge my word that I will never divulge, publish, or reveal either by word, conduct or by any other means, such information or knowledge, as indicated above, unless speclfically authorized.

4. I agree not to inform anyone that I am being considered for a position with the United States Government, unless specifically authorized,

5. I agree not to discuss by name or otherwise any individuals with whom I have talked in the course of making application for employment with the United States Government,

418-47

一

[PAGE 156]
UNCLASSIFIED CONFIDENTIAL (SENDER WILL CIRCLE CLASSIFICATION \_TOP\_ANO\_BOTI

CENTRAL INTELLIGENCE AGENCYOFFICIAL ROUTING SLIP

to INITIALS DATE 1 clco 2 A A 3 110 H MAR 48 5 56
FRO INITTALS DATE 1 2/24 2 1A 3

APPROVAL INFORMATION SIGNATUREACTION DIRECT REPLY RETURNCOMMENT PREPARATION OF REPLY DISPATCHCONCURRENCE RECOMMENDATION FILE

[PAGE 157]
MEMORADUM FORs Director of Security

ATTLNTIO3 Chief, Socurity Reroarch Steff

SUBJECT: Request for Assistance

1. It ie requested that you provide TSS/Chazical Division with an aiproprlately security altroved attoroey yho may ansver the legal qusations that ould have angvered. 2

2. Thank you for your prompt aotion in this regard.

Security Oporations Ci.'lcer DD/F/TSS

Distributloa addreeose - orig. &-1

TSS/CD-1

TSS/SRB - 1

TSS/S00 - 2

48-48

[PAGE 158]
48-49

a11
FROM Dep bir or Becwrity (Investigations and Support) -H SUBJ : Personnel Sscurity -

1. Reference is mede to your meaorandu, so 4-2393, dated 26 Ogá 55 concerning the varioua cetegori es of personnel assoctated vithe 11

2. This is to advise that after extended stuly, this office regards your plan as a fine constructive effort vaich vill serve to solve certainproblens arising froa the project.- This ctfice offers no subatantial objection to your fornulated plan. However, your attention is invited to the fact that the Dir of Sec cannot arbitrarily divest bimself of his responsibilities. Among hia duties, which relate to the entira Agency, is the pessing upon the qualifications fros a security staodpoint of all perscns hired either directly or indirectly. Accordingly, it is pointed out that all persons utilized by the project in any capecity whatscover are subject to the deterninátion by the Security Orfice as to the propriety of their use.

3. You are also advised that cove4t security approvels vill be required for all peraons falling into group C prior' to their entering on duty and before any comitoents are mede, In regard to group D, it is the feoling of this office that every effort ahould be made to utilize the services of. individuals accoptsble from a security standpoint and that perxons falling within the category group D should be restricted to an absolute minimua.

4. The So is vell avare of the many problems attendant upon the oporation of this project ani vishes to advise you that every effort vill be made to resolve individual queations sympathetically and vith due regard to the coplexities of the situation.

j. In the future, it is requested that all candidates for clearences in connectioa vith this project-be-identified by the project cryptonp and the group designation as set forth in your semorandun.

FOR THE DLRECTOR OF SECURITY:

ifs senity

16 November 1955

[PAGE 159]
MEIORAMDUX FORa Chief, Security Support Division/crfice of Security

ATTENTION A

SUBJECT: Safe Space

1. It is requosted that your ofiice assipt Tss/Chenical Division in the acquisition of safe spcce in tsrg area. The vaual type of apece that vill be required vill be botel roors. As vas pointed cut in our convereations oa this subjeot, thore ray occur a mnber of requests which will not provide thò uspal desired lead time. As-you incicated, it was your opinion that this was nct an insursountahle probleu. It is svgcested thet the folloving procoduro. be folloved: ce

vill adviso in vhat nare t nco stould te roeorvo es well as the spece roquirerents. She vill not roqpost a technicsl inspectical bqvever yor officeeust instruet tha epsthat anytiree

1nspocted nll te the
local contact:Atso, ane will errange to provide funda to cover the exponse fof the safe space.

C 2. Pleaoo adviso,this ofiice ty Neroraniun of your office's corrents, as woll as fyrnish thia ofiice vith the nazo and talepbone nurbor of yourropresentative.

Security Operations Officer pp/e/

Distritation: addrescoo - orig..& 1 T3S/s00- 4

48—50

80 4-2503 7 Novenber 1955

[PAGE 160]
HEMORANDUM FOR: Director of Seourity

SOCT Securityo Ceratlona

INTRODOCTION

sarentitio stody group.

The princiral misslon of Aill be to cooduct overt researoh La the fields of Chealstry, Fedicine, Faychiatry, Socioloy and Anthropolozy as it alplies to the capoelt study of humen ecoloy. Praa these overt stodies ths 1ss Chemicsl Divisiop. in coniunctlornith arprorriate teraoonel of the hoot orgenizatioa wili utilise the information obtained to detoraine the test pothod for conduot for Agent-Agesoy roletlonships.

COVER

Cover for thls projeot bas and wlll continus,to be e unit B
of the This uait is identified as the -一B ia tha Derartment of lédiölne, -G
It is an ioterrated rart of tho 3 .H

The foundiag ofy of MAULTRA funde ia grants froa The -B introddced ty an representing the for the granting of the funis for this puirose to the

KNYSICAL SECURITI

Flysical security ls not a primary feotor insofar as this projoct ie conceroed. Hovevér, tho faellity currpntly being utilized inr has been the subjoct of tyo seperate covert physical surveys and vas indicated as boing satisfactory.

49-51

\$O 4-2412 26 Četober 1955

[PAGE 161]
Tho renson physioal aecurity is not of primary concern is the fact that as a general rule there ls nothing of a clessifiod nature maintainod or retalosd ca the preaisea. The one excepticu to the general rule is that cocasionally a classified paper is traasmitted to one of the princirals for hla inforvation, and efter it has boen read is soturned to headçuartera. Yor storage of quch a documont, a sate type rerository is located ia a locked roca on the fourth floor or the facllity. Tho ccabination to the safo is known only to the Adriniatrative Aesietant for the frogrem,a to ths small rocm coataining the sare are held by the same porsoa.

Carreatly plana are being studled as to how erea this vory limited saount of claasillod inforaation may be eliminated fron the pronises.

OFERATIONAL SECURITY

all work boing conduoted bed is to be performed as en orea solentific stucy. The one olassifiod piece of infornation is who is tha true sponsor. Therofore no Agency personnel (Staff eaployeoa) are authorized to visit the facility, officially cr unoffic:ally. CH

H tevar it is necessery for Agcnoy personnel and prinoljals of e meot on official business, safe srece such as a hot ror gulte must be acçuired. To acquire safe slace, Tss/CD vill request TSS/SCO to cbtain space. CO/ISS máat advise as to the epece requirexcats ani classification of rersonnel, matorlal, doousents, equipaont and coaveroaticns that vill take place.  Tss/s0o will request SSl/sO to actually acçuire the sjace and to conduct a technical survey of toe area. (It is during these meetings that classified doouments referrod to previously change hands)

Conzunications betvcea leedquartora end vill te as folloa: follova: H H

Telerhore Incoing calls to loadçuarters froad shall
be to Co/issis unlisted telephone. Calls origlaating froa head
quartera torahall be plsced on the Axecutiva line, to a
private unlisted mumber avallable only to the prinoipale and adoinls
tretive Asolstant. sn-- n

Pall Hoadçuarters incoaing mall vill te adáressed to the covert ail box. Cutgoing mall vill te on non-covernment bond paper. It may riflect the covert mall chennal. True nomes should not be

50 4-2412 coatinced

48÷51

/used in any

2

[PAGE 162]
Subjects Security of Oporatlons /

uaed in any form of cozmunication. @ personnel should obtain alias for communication purposes. Since Coveroment interest is not to be showa, iacaiog and outgoing doeuzeats ahould not bear a elassification stexping.Hovever, filo copies of outgoing correapondence and inccming correspoodence should be appropriately clessisied. In addition, a notation should be added "aot clasaifiod externally, olasslfisd (eppropriate clasaification) for interaal vco."

YERSOAUL SECURITY

All'securlty inquiriea vill te covert in nature, Secoodary crodentiala should alvays be utilised.

In the event any rersoonol uncer Lovestigation bocone alerted to the fact thoy are being iavestigatod they should be advlsed, Yea, this is so, the reaeoa being that the laveatigation is con duetod at the request of the financial donor es à conlition preoedent to the giving of finanolal ansiatance to the Vaiveraity..

Security Cperaticos Officer DD/Y/TSS

TSS/sco/m(25 Cet 1955)

Dietributice: eddressce - crig. &-l

TSS/CD --1

TSS/S00 --2-

Yellow - extra

4851

80 4-2412 eoatinued

[PAGE 163]
MEHCRAzDUM POl: Direotor of Seourity

SUBJECT 1 Ferscnnel Security -ea

INTRCOUCTION

On 6 January 1955, Tss Cheaibal Divislon vaa delegated the
authority to take over/the reaeargh and development aod tho eatire
rezpoasibility of the/old joint -Security Cffice roject,
The oreratioa of gis mucn different than its predecessors
ia that the rhysicel facilities, vhich were prinarily of "safo housea
ia charaoter are now tho overt factlitles for thom wbereia Governsent interest is not ohova,

FaCOUN

Since there has been a change in the metbods of operatlon there bas arisen the specirio problea of the tyres of lorsonnel security. epp ovala recuired for the frojeot. and alao an laterpretation is pecessary es to what enrhasis abould be plcced ujon what would, under otber ciroumatancos, te consldered a security disapproval, together vith the use or coatinued use of this type of individual.

DISCUSSIOA

There are three specific types of personnel involved on this Froject at this time and a fourth tyle in the futuret

A Indigeuous infornaat peraonnel. Those ere peraons vho are subject to a variety of modicel, anthropologicel, and reroholozical testo. They are volunteers for thase teats. They are contected once. maybe tyice, dejending on the.tine involved in adminlatering the tests. They are not the recipients of any classified infornation. ∵

B. The socond tyre are thoce caployeea of them Irincipally coepriclag the vho aro uovittinz of the true apoosor of the frograa. This group is sade up of anthrorolouiyts. sociologists, psychiatrlsts, olerks, ete. This group acministera the testa to the firat grosp, or the

48-52

SQ 4-2393 26 Cctober 1955

/indigenoua

[PAGE 164]
Subjoct: lereorel Security-

iniigenous informants, the subjeote of such tests. All of tholr work la unolassiflod in nature. Those persoas cualified in the scolal sclencss also contribute to the basic interpretation of the tests they have given. They are aot the reclpleats of elassified infomation.

boct organisation, fully"8oghttant cr ths trs ofosorany LThey essiat Agenoy reroonnel ia tbo fical
evaluatioa of Thrormation obtainod from the tosts, This group
does receive clasaified infortation.

D. Ihe potential fourth group would te those fersoos possessing arpropriats backgrounds in the acoiel and phyaical sclences vho are noted for thoir abilities io various fields, tat who because of thoir backgrouoda vould definitely be "uoclearable, but would be givea grants-in-aid"to conduct rosearch ia thair sphere of laterest. Fras their: stodies arolicabls portions vould te slphoned off for Agepey use.

RECONNDAICS

It 1s recommended that the followlas types of security approvals and interpretation of the informatioa be tho foupdation to solviog the prcblem.

Group A - Indigenous Informaat jersonnel. A covert zeae oheck. As a rule thla vill te after the faot( that is after their latervieve). The purpose ofr the neze check would be to provido possible lemis oo otber inforuaats aad a very general insight as to their beckgrounds, which in turn would or could be correlated with test information. Ccosslonally e field iuvestigation may be requested on a very liaitod nuaber of these persone, primarily for collateral inrozsatioa to be used in conjunotion vith their test.

investigation plus a covert  (tbirty day service requlred). The inforzation so gained would not pecessarily te the basia for esployacat or coatinued eaployaent. If nothing derogatory is developed, future expanslou of their kaouledge, cn a nced-tekacy basia, could then te possible. Hvever, if derogatory

48-52

50 4-2393 continued

/information

2

[PAGE 165]
Sabject: Feraonnel Seourity

Information is develored this ahould not prsoludo cmploysont or contired oaployzeat, but ahould alert the princirel officer of tho host orxeniaation to be cognisaat of the tyre of iniividual he has as ao caployee. le then cculd take what steps he dsomed appropriate ss to their use and then follou the host organltation personnel procedures. Again none of these persona would bo the recipients of classlfied inforation or be placed in a pooition whore olassifiod inforzatioa is available.

Group CEchee t organieatioa or smployees of tho who have a dorlaite need to haoy as to trae Tossorsntp eoe tho Could to recipients of clessified inforzation. all of thla group would have a full field and saC covert invoetigation, and a definite covert security auproval for their use would te requlred.

Group D - The fourth potential groep vould be similar to Group B.

For your asalstance in dotermining your office's commeats or coocurrence in the above reccazendation, attechod la a copy of the Gecurity of Creratioaa procedure.

TSS/sc0/ (25 Oct 1955)

Attachment

Distritution: addreacee - orig. & l w/a TSS/CD-1 TSS/S0O - 2 Extra Yollow

48-52

60 4-2393 contimued

[PAGE 166]
MMBANDUM FOR: CHIV, FINANCE DIVISION

1 TSs/Budget Offioer

Subproject 43 KULIRA, Invoiee 2
a110tsont 6-252-10-001

Invoios Eo. 2 for Subproject 48 of Projoot K0LA 16

attechod. Other invoicos vill lollov later. It is roqueeted

in the amount of \$37,719.95, payable to the The check should te sant to Chies, TSs/co through Tss/Dudget Offioer by Thuratay, 18 Angust 1955.

SIDNEY GOTTLIES Chief TSS/Cheaical Diviaion

Attacteontsr Iavoice & Certiricationa

Crig & 2 - C/Finance Divialon

1 - Comptroller

'1 - TSS/FASB

I CORTEY PNAT FUGOS ARL AVAILABLE 2 6:2502.10-001

1 - TSS/SRB

2 - TSS/CD

17 August 1955

THE AMT.I CE \$270995

48-53

17 lagust 1955

[PAGE 167]
XOORANDUM PORI GOPPTROLLER

ATTENTIOx FinenCo Divielon

SIBJICT HULIRA Subproject 43

Undar the authority granted in the pesorsodum dated 13 pr1l 1953, fro tho DCI to the D/a, and the extenaioa of this suthority in pibsequent menorandh Subproject 43 was previouely approved. Ünier the sane authority an dditioonl m of f100,000,Co hag been authorised to cover the subproject's axpensse (thereby bringing toa total of \$100,000.00 fads obligatad @uriag P1 56) to bo charged to A11otpout 6-2502-10-001.

SIDNEY GOTTLIED Chief TSS/Checical Divieion

APPROVTO POR CBLIGATION OF PUEDS

Resoarch Dircctor i

Dater

Dietributiont . Crig & 2 - Addressco

1 - TSS/00

1 - TSS/PASB

THAT NC. ART AVARABLE 268 2501.10.01

1 - TSS/SRB

2- TSS/cD

17 Auguat 1955

48-54

17 August 1955

[PAGE 168]
NOMRANDUM FOBI CHIE, FINAXCS DIVISION

VUA

1TSS/Badget Crficer

SBJECT

1 Projeet MXULIEA, Subproject No. 49 Iuvo1ce f1, a1lotmant 5-2502-10-001.

Iavoioe So, 1 tor Subprojeat 48 of Projoct XVLIA 1s

attached. Otbor invoices will follov later. It is roquasted

thet peyuent be made by cashier's check draum on ag

1n the anount of 129,900.00, payable to the

abould be sont to Chief, Tss/co through Tss/Budgot Crficer by

Priday, 17 June 1955.

SIDNEY GOTTLIES Chief TSS/Cheaioal Pivision

Altachmcntal Lavoice & Cortifioetious

Dietributioat Crlg 6 2 - Addreesee 1 - Comptroller 1-TSSAASB 1 - TSS/CD 1 - Chrono

9June1955

[PAGE 169]
TAUOUGUCOOUOLURI

ATEEETIoktPisseca Divlaton

Sumzonfrojeet XULTzA,Subaroeet 46

Ialer the outhozity greated in the peoorcatua datel

13 April1 1953 fras the DCI to the Do/s, soi the extepoion of

thie astbority in eaboeqent pemoranla, Suoproject h9 hos

been approved, ant \$30,000 of the over-ell Projeot NEUT

frta have taoo obllratei to eover tha plbprojcct's eapedesy

and axli to clerge1 to A1loment 5-2502-10-001.

BI0IT GOTTLIRS Chief, Tos/ckaaicel Nvieton

APPROVED TCR OMLJOATION

Da54. 12751

Dletributioct A151e1500 = 0712. & 2

I CERTIEY THAT FCNOS ARE AVAILABLE CRIGATON REBEINTE Ne. CHARG0LO5-2501-0-001 AUTHORENG OTCR

T33/0c-1

T3S/PAS8 - 1

T3S/SRB - 1

T3S/CD - 2

48-56

3NY 1955

[PAGE 170]
4856

48

19 May 55 yeew

12 Qug 55

6:2503-10-001100000.00
6:2502-10-001140479.00
149/5529,900.00 100.00
28/12/55 37719.95 62380.05
.3.10/3/55 60.000.00 2380.05
4/23/56 75515.0067344.05
54/4/56 67344.05
590,479.00

Project Cloud  u.