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SUBJECT NmiBER 1-.. 1-.) .. t. 1 

USCIB: 2!}.2/f5 

Subject: 

Item 6 of the Agenda for the 103rd Meeting of USCIB, 

held on 14 May 1954. 

Release of AFS.AM-7 to NATO Nations. 

THE ACTING CHAIRMAN (General Cabell) stated that this item had been 

put on the agenda at the request of the CIA Member. 

MRn SHELDON said that consideration at this meeting was requested as 

a result of a conversation between the Director, National Security Agency 

and the Director of Central Intelligence to the effect that were NSA 11to get into the IJlC!.nuf'acturing business" it would present rather a problem. 

He asked if General Canine would comment further on that statement for the 

benefit of the other members of the Board. 

GEI~ERAL C.ANINf said that he was grateful for this opportunity to 

in.fo:nn the members of his views. He recalled that the Board had agreed 

some time ago to release and furnish to NATO and to lend to the British the 

AFSAM-7. It was his opinion that it is unreasonable to expect that release 

of the machine, which is considered good, to NATO members for military use 

would not soon result in requests for the machine for national use. In 

such event, he said, it is inevitable that some U.S. organization will have 

a tremendous job in handling production of machines and spare parts to meet 

these requirements. He said that his organization is in no way qualified 

or equipped to handle this volume of business, and added that it would, in 

fact, be a real burden for NSA even to maintain accounting on the machines 

and provide spare parts. He said that he had explained to the Chairman 

that the problem will eventually have to be faced, and added that guidance 

beyond the competence of USCIB probably would be required in that questions 

involving national budget and long-range high-level policy will need to be 

resolved. He stressed to all members the importance of being prepared .for 

requests that will involve such a program once the .AFS~i-7 is approved for 

NATO military use. 

ADMIRAL ESPE, referring to the construction of the AFSAM-7, stat.ed 

that he had been informed that the machine is mechanically unsound from an 

engineering standpoint and is prone to break down in the middle o.f a 

tra..."lsmission. He mentioned the P.FS.AM-47B as an improvement and asked if 

it would not be better to think in terms of it, rather than the AFSAM-7. 

GENERAL CANINE replied by stating his opinion that Admiral Espe's 

source of information is probably not in possession of all the facts, 

explaining that the AFSAM-7 is not inferior mechanically. He went on to 

point out that the AFS.AM-47B is a different version of the ADONIS cryptoprinciple and is not intended as an improvement over the AFSAM-7. 

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TO:PSBGRBT 

eclassified and a roved for release b NSA on 09-29-2014 ursuantto E.O. 1352 
... 'I'()P ~61ca: 

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USCIB: '29.2/15 

In rep'.cy" to a question GENF.114!. CANINE ~aid that the British were 

accepting AFS.A!i1-7's on loan until they can replace them with an ADONISprinciple machine designed and built in Britain. He stated further that 

the Canadians are buying the machines being supplied to them, and that 

machines for all others than the British and Canadians are being financed 

by the FOA at a cost of' some 24 million dollars. 

The members discussed brief''.cy" the question of' USCSB interest in this 

problem, and accepted General Gabell 1 s suggestion that the whole problem 

be aired at a joint meeting of' USCIB and USCSB. In this connection it 

was agreed, further, that the Director, NSA, will prepare a suitable 

paper for consideration by both Boards at a meeting to be held at an ear'.cy" 

date. 

DECISION: (14 ¥.iay 1954) USCIB considered the subject problem at the 

request of the CIA Member and agreed that a joint meeting of USCIB and 

USCSB should be held in the near future to discuss the problem further, 

based upon a paper to be prepared by the Director, NSA. 

This item to be dropped from the agenda. 

USCIB: '29.2/15 - 17 -

TOa.0 SECRET