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DEPARTMENT OF THE AIR FORCE 

WASHINGTON 20330 DORIAN 

OFFICE OF THE SECRETARY 

`JAN 19 1968 

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MEMORANDUM FOR D F 

SUBJECT: MOL Program Structure Title Change 

I have rewritten both the Confidential and BYEMAN classified 

rationale for moving MOL from Package 6 to Package 3 and I have 

incorporated your suggestions and corrections except for changing 

the title of Program Structure Code 3 (Intelligence and Communications). 

This is the official title for Package 3. The program structure codes 

and titles are established by OASD, Comptroller as part of their 

programming and documentation structure. DDR&E specifies the package 

to which each program element is assigned. 

To answer your question in your marginalia with regard to where 

reference to MOL and Package 3 appear and to examine the difficulty of 

changing the Package 3 title, I have had my people do a little background 

work (Atch 3). Unfortunately, the Package 3 MOL relationship appears 

in a very wide variety of documents involving programming and budgeting. 

These include the Defense Structure Handbook, Five Year Defense Plan, 

the project listing to Congress and a number of others. To change the 

title, will certainly require your assistance. It seems that Package 3 

was correctly titled Intelligence and Communications initially; it has 

now become somewhat of a catch-all for a variety of specialized activities. 

But this is not necessarily apparent to everyone. The courses of action 

available to us are as follows: 

a. Do nothing. The advantage to this solution is that it 

would not draw undue attention to MOL or imply any great concern on our 

part as it is included in the Other Activities sub-category under 

Intelligence and Communications. The disadvantage is that a very wide 

audience will be exposed to an undesirable association between MOL and 

Intelligence and Communications should they only make a cursory examination 

of the Program Structure Code 3 content. 

b. Take action to remove MOL from Package 3 and have it placed 

back in Package 6. This has the advantage of removing phe intelligence 

stigma by placing MOL in the package where it technically and correctly 

belongs. The disadvantage is that it does not serve the purpose for which 

the present change was made and, therefore, it is probably not agreeable 

to Mr. McNamara to whom the change was attributed. 

DORIAN 

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DORIAN 

c. Take action to retitle Package 3 to "Special Activities," 

"General Support," or "Activities (Other)." The advantages to this 

solution are that it eliminates the MOL intelligence association and 

it is more descriptive of the contents of Package 3 than the present 

title. 

I recommend solution c. I have prepared a letter for Dr. Brown's 

signature which recommends this change. 

S T. STEWART 

ajor General, USAF 

ice Director, MOL Program 

4 Atch 

1. MOL from Package 6 to 

Package 3 (Conf) 

2. MOL from Package 6 to 

Package 3 (BYEMAN) 

3. Memo for Record, 

Jan 18, 1968 

4. Ltr from Dr. Brown's IA 

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29 January 1968 

RATIONALE 

MOL FROM PACKAGE 6 TO PACKAGE 3 

The DoD Program Structure Code assigned to the Manned 

Orbiting Laboratory (MOL) Project has been changed to 

\TI ,-. reflect its potential and significance in the Department of 

g; Defense. In the early phases of the project, MOL was 

assigned to the Advanced Development portion of Program 

Structure Code 6 (Research and Development). As of July 1, 

1968, the MOL will be transferred to the Other Activities 1.3 

portion of Program Structure Code 3 (Intelligence and Communications). Package 3 includes not only intelligence, 

security, and communications items, but also command and 

control systems, and specialized missions such as weather 

service, aerospace rescue and recovery, air traffic control, 

satellite control, the Titan III, oceanography, and various 

other activities. Program Structure Code 3 consists of 

missions and activities directly related to the Strategic and 

General Purpose Forces on which independent decisions can be 

made; and it includes resources for primarily national or 

centrally-directed DoD objectives. The MOL meets those 

criteria. 

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The principal objective of the MOL Program is to obtain 

resolution photography of significant 

targets in denied areas for technical, strategic, and tactical 

intelligence purposes in response to national needs. This 

objective will be reached through the development of the 

necessary high solution optical technology and space vehicles 

for either manned or unmanned use. 

One of the attractive features of space system 

developments, as contrasted with many air, sea, and ground 

R&D efforts, is the achievement of useful operational functions 

on a first flight -- barring early payload failure. 

Some examples are the VELA nuclear detonation 

detection satellites, the Initial Defense Communications 

Satellite Program (IDCSP) and the various unmanned photographic 

and SIGINT reconnaissance satellites of the NRO. While this 

latter group of spacecraft/payload combinations have 

characteristically shown marked improvement with time, they 

have consistently provided an important and highly useful 

intelligence collection source from the very beginning. 

The manned version of the MOL systen is being developed 

and will be flown first because this gives the highest 

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assurance of meeting the resolution goal at the earliest 

reasonable date; will insure a useful reconnaissance product 

at the outset; and will contribute to the maturing of the 

unmanned system at a much earlier date than probably otherwise 

would occur. An unmanned version of the MOL is also being 

developed to insure a national capability to acquire very 

high resolution photography in denied areas should international objections, foreign threats, or some now unknown 

man-in-space physiological limitation preclude extended 

manned operations. 

The MOL system is being developed as an operational 

reconnaissance system. Most of the components are standard 

items or modifications thereof (for example: the Gemini, 

Titan-III, space suits; environmental control system; fuel 

cells, etc.). Only the camera system and related systems 

which serve pointing functions constitute state of the art 

advances. A limited production base capability is necessary 

to support the presently-approved 7-launch program. The MOL 

will be operated from the outset in response to target 

coverage requirements of the United States Intelligence 

Board in conjunction with unmanned National Reconnaissance 

Program satellites. 
t87 577-6 

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From the above, it is quite clear that the MOL 

Program is properly located in Program Structure Code 3. 

It has been placed in the Other. Activities sub-category 

rather than the Intelligence portion to avoid direct and 

open confirmation by the Defense Department that MOL is in 

fact an intelligence collection system. 

EEO 

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RATIONALE 

MOL FROM PACKAGE 6 TO PACKAGE 3 

The DoD Program Structure Code assigned to the Manned 

Orbiting Laboratory (MOL) Project has been changed to more 

properly reflect its status and potential. In the early 

definition/feasibility phases, MOT, was carried under the 

Advanced Development portion of the RDT&E appropriation in 

Program Structure Code 6 (Research and Development). 

Beginning in FY 69, MOL will be funded under the Operational 

Systems Development portion of the RDT&E Appropriation to 

reflect the approval of limited production. In accordance 

with standard DoD practice, once that decision is made, the 

project is thereafter included in the appropriate missionoriented forces (e.g. Strategic, General Purpose Forces, etc.). 

MOL has been assigned to the Other Activities portion of 

Program Structure Code 3 (Intelligence and Communications). 

Program Structure Code 3 consists of missions and 

activities relz.- cad to the Strategic and General Purpose Forces 

on which in,...cp,:adent decisions can be made; and it includes 

resources for primarily national or centrally-directed DoD 

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2. There may be additional benefits from the 

experimental equipment in the MOL vehicle. In contrast to 

many air, sea, and ground R&D efforts, space system developments have frequently provided useful operational functions 

from the outset -- barring early failure of experimental 

equipment. Some examples are the VELA nuclear detonation 

detection satellites, the Initial Defense Communication 

Satellite Progran (IDCSP), the experimental MIDAS missile 

launch detection satellites, and the Navy navigation 

satellites. In a similar manner, it is anticipated that the 

experimental equipment aboard the MOL will not only advance 

both manned and unmanned space technology, but may also 

provide worthwhile operational services on the first flights. 

The MOL Project is a unique and specialized mission for 

the Air Force to meet DoD objectives of investigating manned 

and unmanned military space applications. In doing so, the 

MOL Project may also provide support to the combat forces. 

As such, it fits properly in Program Structure Code 3 which 

was established for the purpose of grouping together 

activities which have been approved for full or limited 

production, but do not fit properly with the combat forces 

grouper in other specific categories. 
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objectives. Package 3 includes not only intelligence, 

security, and communications items, but also command and 

control systems, and specialized missions such as weather 

service, aerospace rescue and recovery, air traffic control, 

oceanography, satellite control networks, the Titan III, and 

various other activities. The general rationale for the MOL 

reclassification follows: 

1. The basic MOL vehicle constitutes an operational 

test bed to develop and test advanced experimental military 

hardware for both manned and unmanned space applications; to 

explore fully the usefulness of man for military purposes in 

the space environment; and perhaps, to experiment in the 

future with other and more advanced military equipment. Much 

of the MOL system is either standard space-qualified hardware 

or modifications thereof (for example: Gemini; Titan-III; 

space suits; environmental control system; attitude control 

system; fuel cells; etc.). A limited production base capability 

is necessary zo support the 7-launch project. The only 

significant advancement of technology is in the experimental 

military equipment carried aboard the vehicle. 

2 

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January 18, 1968 

MEMORANDUM FOR RECORD 

SUBJECT: The MOL Program Element in Package 3 

On January 17, I met separately with Mr. Tom Everett of the Office 

of the Assistant Director, Programming, DDR&E, and Mr. Alexander 

Sinclair of the Office of the Deputy Assistant Secretary, Management 

Systems Development, OSD Comptroller. These meetings were generated 

in response to Dr. Flax's continuing concern with the difficulties 

which might result from the inclusion of MOL in the Package 3 category 

because of the title "Intelligence and Communications." Their purpose 

was to explain the desirability and justification for changing the 

Package 3 title from "Intelligence and Communications" to something 

like "Specialized Activities," "General Support," "Activities (Other),. 

or something else which would be more properly descriptive of the 

program elements which are now in this group. 

Mr. Everett was in total agreement with the need and propriety 

for the change, but admitted that although DDR&E was responsible 

for determining to what RDT&E program an element would be assigned, 

OSD Comptroller was responsible for assigning the program element 

number, category titles and just about all else having to do with 

program structuring and documentation. 

My meeting with Mr. Sinclair was a rather interesting one. At 

the outset, he pointed out that he didn't understand why the Air Force 

had moved MOL into Package 3 to begin with. I recited to him the 

actual sequence of events, as we knew it, (Atch 1), to establish that 

this was not an Air Force generated change. He then permitted me to 

read a short position paper, written by him, in which he disagreed 

with the DDR&E directed transfer of our program to Package 3. The 

basis of his objection was that inclusion of MOL in Operational Systems 

Development violated the basic criteria established for this class of 

program elements. This criteria requires that the program be related 

to efforts involving RDT&E and Production/Procurement. His position 

was that the remedial action required was not to change the title of 

Package 3, but to remove MOL from the Operational Systems Development 

category. We discussed the applicability of the title to programs other 

than MOL, such as T-III, Aerial Targets, Aerospace Rescue/Recovery, etc. 

Mr. Sinclair observed that many of these program elements were new 

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additions to the Package 3 group and although he agreed that perhaps 

some other general title would be more accurate, each action had the 

very specific knowledge and approval of Mr. McNamara. 

I asked whether in view of the fact that there were now a substantial number of Package 3 elements for which the title "Intelligence 

and Communications" was a misnomer, he thought that at some near future 

date he might propose a title change. His response was that before he 

would consider changing the title he would argue that the elements which 

did not meet the DODI 7045 series criteria be removed from the group. 

He indicated that any title change at this time would have to come from 

"topside." 

My conclusion is that there is no quick and easy way to officially 

remove MOL from the danger of the "Intelligence and Communications" 

label. We can only rationalize that there are other programs included 

which are obviously not intelligence or communications, and that the 

title is an unfortunate catch-all for a pot pourri of program elements. 

For the long view, however, it seems almost mandatory, but 

certainly desirable that we initiate action for an official change 

to the record. The MOL program element under the "Intelligence and 

Communications" label will appear in many, many documents with rather 

wide circulation, i.e., the Defense Structure Handbook, the Table 32 

program/budget listings, the Five Year Defense Plan, the Project 

Listing to Congress, in fact in almost every detailed or definitive 

programming/budgeting document. 

I recommend that this change action be initiated by a memorandum 

from Dr. Brown to Mr. McNamara. A suggested memorandum accompanies 

this report. 

Zdt1;:=545(L'g4 

BERTRAM KEMP 

Lt Colonel, USAF 

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2 Atch 

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DORIAN 

January 4, 1968 

MEMORANDUM FOR RECORD 

SUBJECT: Program Element Number Change 

On 3 January, I spoke with Mr. Knutson, Assistant Director 

(Programming), DDR&E, to try to determine the basis for transferring 

MOL into the Operational Systems Development category. According to 

him, the story goes as follows. 

During the week preceding Christmas, there were a series of 

discussions between Mr. McNamara, Dr. Foster, Mr. Anthony and 

Dr. Brown. After one of these sessions, Dr. Foster came out of 

the meeting with a hand written note, which was given to Mr. Knutson, 

and which had words to the effect "transfer MOL into Program 3." 

Mr. Knutson then asked the OSD Comptroller to assign a mission 

element number for MOL, and the 3.51.21F came into being. 

It is Colonel Ford's view that the perturbations which would 

be required to try to get the P.E. number changed might be interpreted 

as an overreaction, and might be suspect to persons not having access 

to the program. This, together with the fact that the decision was 

apparently made at a very high level, would suggest that accepting 

the change without comment might be the lesser security risk. 

BERTRAM KEMP 

Lt Colonel, USAF 

Program and Policies Div, 

SAFSL 

1 Atch 

Memo for Dr. Flax 

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