r ._.;... .... _.,,~.,. 

MiMORANDUM FOR GENERAL CANINE 

SUBJECT: SCAG Report ........ ·._::.. ''' o.:.\ ... 

1. The AFSA Executive Group tor SCAG met on ~'.March, 7 April, a.rd 

9 April to discuss the subjact report., make CO!llli9Jlts tfureon for your consid .. eration, am to racoJ1111end such o.ction as might now, be ~ea to implem!'lt tha 

SCAG recomiemationso These meetings formed the basis to~ the folJ.OWJ.ng com<;> 

mmts and recanmendationsa At the meting on 28 ffa:rch ~eTcir.Ql SCAG msnbsrs 

were present tor the purpose of clarifying Cat'tain \portions ~ the, . subject 

reporta "'~ :.i. " . '· 

·!' --:. • ..... 

2a a. At the meting held on 28 March an altastive statenmit ot the 

first conclusion reached by SCAG (paragraph (1), pa.ge\l of the SCAl'l Report) 

was formulated and agreed to by all present as re...'°J.eoting t~ t~uo sL~~~~· 

The alternative statement was c •· .• ·· ;. 

':,, 

stat.eroont 

L------~~1. b. inVolves The reason the definition for restating o.f.'l th: 

_ _ ... ··= £irst~o::~~-·.· -----.... .. 1 \\i·· ~ich .. s that the\SQAG th·e······· ... ori········ ... Repo:t· ~;4. presents on page 2 under the answer to e ques on e L J 

The answr given in the SCAG Report is as follows: L------------___, 

L...---....,....,,.........,.....-=--=----=~-=---=-___.\is possible» the original SCAG concluS!On is deeJ. 

too optimistic. It is deemed adv:i.sal:>le that i£ the SCAG Report is discussed 

witi"" higher authorities this alternative statemmt or SCAG's fil'st conclusion 

be presented, and the difi'erencas betl-Jeen it aid the statement as it appears 

in the Report be explained • 

.3. a. With ref'eronce to the second SCAG conclusion., v:l.z., ••much more 

effort by AFSA is justified on the ,Albatross p:roblem,, n the AFSA ~cutive Group 

for SCAG is in unanimous agreement with.SCAG in reaching this conclusion but 

only if' it is coupled with the second of the "points requiring cooaperation of. 

outside agencies~" which the SCAG Report has phrased as follows (bottom of Pa&re 

1): • . 

11(2) The importance or the Albatross troblem to the national security 

fully justi_fies. a majol".. expansion of the effort am funds expanded in 

AF SA• s opera tioJ;l., .... 

b. The AFSA Executive Group is of the opinion that AFSA has devoted 

and is still devoting aPirc>Pl'iat$ mr.ounts o.f' time, ef!ort. am funds to the 

solution of the Albatross problem consistent with (l) the amount of logistlc 

support proVided for AFSA, ~-_.(2) the limits.tions :imposed by other prol>J.ems 

or almost equal importance and urgeneyo Additional limitations are imposed by 

comi tions not urder control ot t.he Director, .AFSA or or tbs Department ot 

De.tense a 

4o The SCAG RECOMMEIIDATIOI-JS will now be discussed in the ordor in llibich 

they appear urder that heading on page 1 or the Repor-l:.o 

S. ao With regard to tbe recOllliilendo.tion that rrmore programming and computing time should ba al.located to the Roberts' and re.lated approaches for I t' it is import2.nt to point out: 

(1) that the so-called Roberts• method or, more proJ>.!~!':::!:d~~!:!!::!::~ 

the lfJnatrix projeotlon method 11 does not and is nut ted 

eclassified and approved for release by NSA on 04-14-2014 

_:· .. 

AFSA Form 781-C135 6 Jul Sf 

---1 ........... --e--11~35~2~6~~~~-=========================;;;;;~ ... 
·mt: s.Ha1~0!9.!fOI SEef{EVfA~:&)fi."l:t 1952 ~.,. ~ If::O 3.3(h)(2) 

MEMORANDUM FOR GENERAL CANtN'E --SUbject: SCAG Report //.fL86-36/50 USC 3605 

($)that int.he specific case in which we are t~ing the method 

it is quite possible arrl~ accor<,iing to some very recent st\Xiies an4 cal.cul.a tions, imeei probable that the case £alls .·sh· i art in brin·····IP-······?18 ~th the 

problem_ Ito permit s~lution by that metr.od, ,. 

bo Up until recently Hr. Roberts• who has been exploiting the matrb: 

projection method under a contract with Engineerir.g Research Associates•. (ERA)~ 

has been given all the computer time which he .could proi'i tab:fy use. Now .that 

he is in a posi ti.on to use more computer time, arrangements have been made \to 

make available more time on ATLAS_, the only machine uhich is fast mough m1(i 

can be brought to bear on the problemo ATLAS will soon be working 011 a 3..-sbif't 

basis. The second ATLAS is un:l0r way am its completion will be expedited if 

that is possible. Surveys have been mad.$ to ascertain wet.her other com,p'Q.t$rs 

within or outside AFSA can be practically usod on the problem; the results m'e 

negative,· because it t1as found that other ma.chines, steh as SEAC and ORDVA.C, 

are too slow or are not suitable tor the problem. 

c. As to the "related approaches" mentioned in this first SCAG 

recommerxiation, these refer to carts.in proposals advanced by some or the •. workers 

in AFSA s estions tor other an ical a; roaches to 

n o 

er e cover name DERVlSH has been established and progress under it fa 

being made. Besides tbe loc.:V research and ~ tn AFSA in the Jll'!>41'c"' 

tion of electronic. analogs or simulators of I ~ : there is nmr being ·• 

established a research ta.sk/u.rder the contl.""ac ~ .· and another at Teehnit:rol 

to construct I r These are in addition to a task urder a cont.raot 

initiated about five years ago with llational Union Tube CompuJYo So .rar as 

practicable all these developments will be expedited., by am.er.ding contracts. to 

pay for. overtime work if' it will be useful and possible to apply overtdme •. to 

them. 

d. This SCAG recommendation must also be considered in the light ot 

the d1scussion at th3 bottom of page 2 of' the Report~ and under the heading 

"Machine Development" on page S. SCAG cons:iders that: 

(1) AFSA is not using its resources to beE°G advantage 

(2) Certain tachnical avmues leading toward a I 

being completely explored; ...... ______ __, 

(3) Additicnal logistics rupport can be applied to improve 

present opera ting conditions J and 

(4) AFSA does not appear to be gi.Vi11g priorities in nach:ine time 

and programming personnel to the Albatross problem consistent with the. 

urgency and importance of the problem. 

eo These SCAG considerations call for some comment. 

(1) It is necessary to irdicate, with respect to the SCAG' s belief 

t.'1at AFSA is not usin b 

that the attention SCAG as us ar been directed ~and:::r-=il.imi:i=., ·.:it:-::ed::r"Ito=--:ith~e-;:! =:::::.....______ SCAG members~ with the possible 

exception or one 0£ them, have not becan.e acquainted with other AFSA blemo of large magnit\Xle and •. rtance such as the 

AFSA•s resources, which might externally appear 

to SCAG mem era to e great, must be spread over many problems on which 

AFSAForm7Bt-CUS 6Jul51 TOP SECRET SUEDE 
. ~!!:_~~~!:~~Jf 01 SEeRRl'P65'\:JWE>.E~·J.! IY!j~ EO 3.3(h)(2) 

Mll1CRAllDUM FOR GEI~EF.AL CANINE - Subject: Sci.AG Repo1•t PL 86-36/50 USC 3605 

W - " - ~ - M • - - H - - ~ ~ - ~ - ~ - ~ ~ - ~ ~ - -

wo:rk must be done becauce AFSA' s consumers require tli..at it be doneo In 

some degi•aa SCAG rocognizes this po1.nt 't-il.en the Report sey-s that tho 

anSWSJ."S to the t~ro questions posed at the bot~i;om of page 2 "must be condi ... tioned by certain limitations on resourcos.n 

(2) It is t:rt1e that rrce!'tain technical avenues leading tot~m a 

solution are not being cornpletoly e:A.1"..101•ed,,11 ii' t..llat bl:i:11..'lcet stateimnt is 

interpm·ced as me&ning that ther3 is oven one individual. Or. fc.c::Llity 

tha.t could cont1•ibute to this problem out- in n,ot, uorking on it. It \nust 

bo emphasized that :o;-lill:e :~;atad. rght ili'tor /World Jiir II 'fo1• tile development o.tfe.nd genart;l purpoae analytic 

equipment. The nER:Is projec t:iC co..11si ers assembla es utilizi1 · the 

re lts of this pro _am could onJ.w be .f.or:uula tecl after 

This is recog .• 

nized by SCAG itself as r.ia:y be noted on page unc1Qt> the heading nit-q:ilc·!t!.?.-

tiono" Now that they have been :formulated., they are be-tng p:-o.!Jl..oted as 

rap:idly as Al!'SA's logistic situation psrmi·t.s. 

(.3) The AFSA Executive Group w,animously/ngreea that 00.ditional 

a.rid bette1• operating space would be cond.ucivo to higher quality al'..d possibly 

greater quantity of output or uork; however. ii1 must also ba stated that 

any exteri..si ve anaJ.ytiC•liia.chi..-riery oxploitat!.on progl"am is dependent upon 

the availability of appropriat0 spe.ce, facilities~ an= pcrsO!'.nel to operate 

am mai11tain them. 

(4) This point has been adoqtlately covered in pw.~ag1"'aph Sb above. 

- 6. ao With regard to the second SCAG roc.o~atd.on-» t..'1at "an expaided. 

progra..'ll should be ini tiat.ed j_n high-ci:-ocd rr_,'lchine devalopm::;nts i:rith particulc.r 

emphasis on new approaches to AFSA•s special problems,," it do .. 1al.op3d., at tb.c 

.Executive Group meeting on 28 Ma1"ch, t..liat lJhat SCAG had in min:l 1'7as nmoro l1Cl.."k 

011 Shepard's metho1., tho I l and DERVISH.n An aic:tansive progi."am 

of i•esea.l"Ch in the field of eleCtl"Oll..iC CO!llpUters an:i a program for the develop.. 

ment or high-speed analytic :machine17 wa.o ini tia t~ several yoo1"'s ago. Addi ti on .. al uia.lytic ma.chines,, such as NOMP..D 2lld DELLA,, use.ful f'or "i:.he .,Ubatross pro~ler.1,, 

are under construction c...TJ.d these developments uer3 ini tiatc:i lo&"Jg beforo SC..'lG 

was formed. AFSA hes expcmded considerable effo:.·t in cc.nvnsDing the resc-urc3s 

of the u.s. in a search for caitl•actora competon'!:,ly equipped to develop :u-..cl. pro ... 

duce such :rr..a.chines. SCAG could perhaps ba of '2.ssistn.nce in suggesting ai,-enu'.ls,, 

resources, and facilities not coo.sidered by AFSA. 

bo This sacand SCAG recoll?meildatj.on is based upon oome points el~boi•ated 

upoi.1. in small detμ"eo furthm• Oll in the Report \!rd.er the discussion. SCAG 

considers that: 

(1) "1'he mcbir,,o developr:0nt program developed in connection 1-ti.th 

Albatross appc:ars to h:J.ve reached a point trhere greatly cxp-:mded effort 

wil.l be justified;" (Las·!; scnt,ence on page 2.) 

(2) "In View or the rapid aivances being made in high-speed al.E:ctronic deVices~ SOAG is of the opinion that a great deal more c::upha.sis 

should be pl.a.cad on the development of elect:•roic deirices especially 

designed to h&ndlo the sort or problem arlsing in .~SA operations. o.. and an integrav..d :machine developr0

1ant progi"'a?il is i:ndicatOO to develop 

means for handling le.rge volu.'!les of nnalytica:l uork ox:proitiously. ,(Page 

S, SCAG Report~ under Machine Development.) 

cQ The f'ollowing comments, in addition to that already made under£ 

above are pertinents 

(1) A largo progr=i..rn or de,.reloping better a.11.d n1ore rapid analytic 

m:ichine1:y was initiated somo time ago and is being pro~med l'Ji. th as much 

urgaJ.Cy 2.S is p:ractica.blo3 l"Tl thin the l:i."ll'itataol"'..S Of' fur..ds alXl cnzinsering 

pcroonnel available for r.:onitoring outside contractso 'J.'ho prou.am is b~ng 

and will continua to be oxpedi ted wi. th all tho r"sourcas made availablo to 

AFSAo 

(2) What has been said u.-rider paragraph 5e(3) above is equally 

applicable T'ol' AF~Jf{1\tlrf 1~'1?i""bors prooent 

AFSA Form 7Bt--CUS 6 Jul 51 
!OP Bft:It'E! Stifmi!l - 11 April 19S2 

MEMCRf.JmUM FOR Gl!EERAL CANINE ... Subject: SCAG Report 

at the 28 March meeting the ei'forts being made by Dm.AF.SA and Depa1•tment 

of Defense authori tios to obtain in Washington t..'>.e much-needed at1di tional 

space for AFSA. The Execut1~ve Grqyp believes that when t..'tie new si·t.a is 

occupied such space may be o.dequa:te,, and also that so far as concerns 

additional personnel,, when the additional required space be~rri.cs available 

the current recruitment. program 'Will be expandedo 

7o a. With reference to t.lte third SCAG reco:mmel'ldation, that "a Senior 

Civilian Technical Director should be appointel.1 reporting diractl7 to tho 

Director of AFSA," the AFSA Executive Group assumes that SCAG, in using the w0rd 

"ciVilian" here meant to imply the need for a man with long tenure in AFSA and 

appropriate technical backgroum. If these desiderata can be obtained by a 

military appoint.118nt1 the. Execu~ive Group feal.s that it would be entirely 

acceptable and within the spirit of the SCAG reoarcllerda.tion. The E:x:ecu'ti,ve 

Group unanimously agrees that t~hnica1 direction of the ceyptologic activities 

of AFSA wuld be improv~ by virtue 0£ the continuity in technical bam:ground, 

and in technical control policies and managemmt uhich \Culd be possessed by 

a long-experienced, ful.l;y-quali!ied technical. director llho tfould stay on that 

job for an indefinite number ot years. 

bo In this connection the SCAG Repor-1:. states on page $ under "Administrative matterss 11 

"ln its rel.a. ti.on to the Albatross problC!lil SCAG has been !'aced with 

some of the administrative problems ot AFSA, and has considered problens 

oi' militsry versus ci:Vilian control of this activity. Il1 the light of 

the tactical and strategic responsibilities ot .AFSA in times of national 

emergmey, the necessity tor milita:r,y responsibili v is acknowledgeclo 

However, it is recommended that a senior technical. director "t-T.i.th both 

technical and management experience, repor-"iJ.ng directq to the Director 

of AFSA, be appointed with fully delegated authority f'or all operatiori.a 

within his field of' responsibility. n 

Co At the meeting held on 28 March 19$2, the SCAG man.bars who attancled 

discussed this SCAG recommendati.c:n with the Executive Group and agreed that the 

ultimate responsibilitf must be on only aie man and, in tbe case o£ AFSA, he 

must be the military director. However, it wuld appear that, in regard to 

authority exercised, the SCAG view is that the senior technical. director should 

have cqntrol or the technical operations in all respects. Therefore adoption 

of this SCAG recommendation would require changes in the broad policy of AFSA 

control; the nature or these changes and thatr practicability should be studied. 

d. In this connection the Executive Group dee.ms it advisable to 

indicate its feeling that SCAG has failed fully ·to recognize that AFSA can not. 

be considered. solely as an organization for research. The Executive Group 

thinks that in Vi.elf of the fact that SCAG has thus tar been concerned onl.J' with 

Albatross, whim cur1"'ently is a problem of a research nature, SCAG mmbers, 

with one or two exceptions, have failed to realize the quite dirterent nature of 

the problems involved in the execution of AFSA•s responsibilities for the J.arge .. scale production o£ communications intelligence (COMINT) and for the full 

exploitation 0£ the sources of COMINT. The Executive Group believes that in 

many phases of COMINT expl.oitation and production operations technical experience in the direction am managenent of these activities is highly desirable~ 

The Group therefal'e is of the opinion that a position in AFSA should be eatab ... lished for a permanent technical director who "&roul.d be an additional Deputy 

to the Director, A.FSA am on a level with the other deputies. 

8. a. According to the f'ourth SCAG recoil!ileildation, a separate research 

organization should be established in hFSA~ and cert!?.in other primary organizational changes S'lOllld be made. \'hat SCAG has in mind by wa:y of such changes :'i.s 

depicted belcx-r: 

+ 

AFSA Fann 781-CUS 6 Jul !!i1 TOP SECRET SUEDE 
.mop siORIW sumff Oj SEt:!i\FflA6

SVitElfir.1119)2 

MJalUNDUM FOR GEBlW:. CANINE• Subjects SCAG Report 

---------------------------

0 3.3(h)(2) DlRAFSA 

L 86-36/50 USC 3 605 

' 

SENIOR - CIVILIAN 

TECH. DIR. 

-

I . I I 

Office ot Ortica ot Of .tice ot Office ot 

Research • DeYelOJl!lellt Operations Com. Security- . 

bo In support ot this recommezr:lation the SCAG Report states (page 4) 

under ft.Basic Research1• 

"The study ot the Albatross problmn by AFSA has d&V'eloped the tact 

that there is little opportunity (because or the pressure tor operational 

results) tor the comuct ot any basic research in cryptographic prob1emso 

It is SCAG's firm opinion that a strong basic research program is ot great 

importance 1n supporting the development and op'19ation "YOrk ot AFSA and 

that a separate basic research organization should be set up. Research 

should be leapt separate from devalopmeni; am operations with personnel and 

tacW.ty assigmuents which cannot be intringed upon by deve1opment and 

operation requiralltnts. The experience ot members ot 'SCAG in industrial 

research crganization is that to be f'ull1' effective research should be set 

up under a civ:l.lian research directoi- reporting to the technical. directoro" 

c. The .AFsA Execu ti:ve Group unanimously supports the SCAG reCDmmend.ation in rega.J.'d to the separation ot research from deve1opnent, including the 

transfer of the napplied researmn now coulucted in the ortice ot Operations 

to the Oi'tice of Research. The AFSA Emcuttve- Group believes that a high-level, tecbnical.J.7 qual1t1ed group should be established to work out a concrete proposal. for the organization am functions o£ the Office ot Research. This group 

should collaborate w1 th the proposed. management contractor (Anderson Nichols). 

9. a. In its final tomal recommendatt.on SCAG recommends that "more use 

should be made 0£ the potentialities ot outside contractors tor basic research 

as well as machine developnent.n At the meeting on 28 March the AFSA. Executive 

Group requested more :1nf'ormat1on on this recommem.at4.on and it deval.oped that 

what was meant was not additicnal contracting work but more freedom for contractors in the use ot the services and facilities available to them. SCAG 

believes that several contractors fee1 that AFSA applies controls beyond the 

need dictated by security cans:fderatims. "This brir.gs 'Up the question ot clearance and securit7 stamards, how much classified informaU.on it is possible, under those standuds, to tall or give contractors, etc. 

bo The Chief' ot: Research am Daval.opment naintains tha. t control beyom 

the need dictated b;r uscm security regulations is not being exercised by AFSA. 

However, the concensus ot the SCAG maubers present at the meeting was that more 

intoftlltion than they wre be:fng gj.ven was needed by certain contractors. In 

view c£ this opinion, AFSA. should request other SCAG mani>ers for more information en this pointo It must be bome 1n mind that AFSA's seourity requirement.a 

are much more stringmt than those of the AEC• f'or example. It i.s important to 

note that le&kages in the atomic energy field do not in 8.1\V way delay our own 

:Progress in the f'ield• whereas in the COMINT field leakages nullify our own 

progress since changes in cryptosystems are easily ma.deo However. the SCAG 

members present felt that it is necessaey to take risks to make progress and 

tbat .AFSA' a uuaudt.7 polici88 need l"eoexaminationo 

. •. 100 Coming now to the additional npoints requiring co-operation ot outside 

agenciea• (bottcm of page l of SCAG Report; there is no need t.o ........,ton the 

·• first one 9 viz,:!~ _ \ :F~~LF~( ... ,...,SD~ ~an IJJ''EViDUI'ES WUG1V8 
MErlORANDUM FOR GENERAL CANINE • SUbject: SCAG Report 

-------------------------~­ ' 

Group is in full accord w.i.th the SCAG statement, with the reservation mentioned 

in paragraph Se(3) aboveo 

- llo a. Al though not incllXied among the specitic recommendations set .forth 

on page l of the SCAG Report. there are certain reccmmendations in the Discussion and these call for some c011111ent. 

b. One or these is stated as follows (page .$)1 

"In order to attract and to keep key personnel am other top-flight 

people needed for the performance of AFSA•s mission, SCAG feels that a 

careful revision of personnel policy' is needed, particularly td. th respoct 

to the assignment of technically qualified people am their adequate 

l'eCOgnition aJKi 00mp8DSatiODe II 

c. The AFSA Executive Group. in doubt as to mat was behim this 

rec011111Bmation, requested some clarification by the SCAG members presen1; at the 

meeting on 28 March, aDi asked what SCAG had in mind by na complet.e revision 

ot personnel policy." It was stated that as an example, san.e question had 

arisen as to whether the military reservi.Qts were being used in a technical 

capaci t,' tor which thq wre qualified, or tor other duties 4 It developed 

that a SCAG member encountered .a Reserve orr:J,cer acquaintance, a qualif1ed 

mathematician, who was serving as a courier to deliver a classif'ied d.ocumento 

It also turned out that this happens onJ.¥ under intrequsnt, exceptional, am 

urgent circumstanceso Howver, one SCAG member stated that he thought AFSA had 

been losing too mauy competmt technicians, perhaps 11'.ore than other and somowhat equivalent scientific starts wre losLng. ·· 

do In the opinion of the A.FSA Executive Group, the situation in this 

regard is not peculiar to AFSA. It is true that AFSA has lost a number of 

high-level technicians but not many am not for reasons which can be attl'ibttted 

directly to faulty personnel policies. The AFSA Executive Group believes that 

the statistics applicable to this question should be stllliedo AFSA • s personnel 

policies are set by higher authori t:r and by the Civil Service Commission. If 

the clearance standards and policies inhibit or hamper !FSA, it is only' possible 

to investigate this point, report findings. am, where needed, to recommend 

changes. Also. if the impl.ementation of AFSA•s personnel. policies is f'aul\y1 

this also should be examined and recommendations nade tor improvement therein. 

eo As for the "adequate recognition aui canpensati.on" or .AFSA • s technical.q qualified pel'sonnel., the AFSA Executi. ve Group is of the opinion that 

the Director is now doing all that is within J;iis power to meet this recollll19lldatd..on. When at the meeting on 28 March, SCAG members 1earned that there 1l81'e no 

nsuper-grada" civilian jobs in AFSA, they were astoniahedJ but it was brought 

out that the Director began months ago to obtain soma o:t these super-grades 

and that the outcane of his attenpts is not yet cleara 

120 SCAG also reported (bottom or page S) that "working condi t:Lons ot 

personnel are not satisfactory for carrying out sllcll intensive wrk under great 

pressure for ~evement~" and that na great deal should be done in providing 

adequate wcrld.ng conditions and equipment.n Cement having direct bearing on 

this point has already been rrade under paragraph Se(3) aboveo The substance 

of that comment 11as communicated to the SCAG members at the meeting on 28 MarchJ 

in addi tion6 they were told that the Director• AFSA. is implementing plans for 

the better utilisat.ion of currently available space within AFSA operating areas 

and 1:ha. t extension of these plans should help improve existing comi tions to a 

considerable extent. 

lJ o ao The fallowing is quoted :from the top ot page 6 of the SCAG Report a 

11It is SCAQ•s opinion that AFSA bas not taken full advantage of 

outside results both 1n connection vi th machine development and basic 

research. In connection with the recommendations tor a separate 

research acti.vity, the expansion of this activity by means ot outside 

research ccntracts offers a method of expanding certain phases of 

research more rapidly th.an it could be done if' complete dependence were 

placed on AFSA' s own research g:roupo Many or these research projects 

are essen~:r low classification and therefore lend themselves to 

:F~~LF~~Mldl-Cl'S +-OP SECRET SUEDE 
O•-•••,._._. __________ .. ______ _. __ .... 

outsido handling. For full advantage to be dar.t.ved, however 1 as lllUCh of 

the background of the problem as possible must be given to the group! 

doing the work. There has been cons:ide.l"able criticism or praot\remsnt 

procedures due in part· to the present complicated ir.ethcxi o£ transmitting 

information betwem AFS.lt and the contractor." · 

b. The AFSA Executive Group considers tha. t the • recamnendatl.on for 

expanaion of researuh by means or outside research contt-acts is valid but points 

out tba t all such contracts require some degree of control, monitoring, and 

study of results by high-level technically competent research personnel in AFSA. 

Currently such personnel. are ve17 scarce in the Offj.ce of' Research and Development but if the Office of Research is established. as a separate entity am its 

staf'f expanded, the number o£ outsida contracts may be increased. with fair 

assurance of productive results. However,, it must be poi..nted out that the 

amount of background information which can properly be given to contractors is 

direetq r~ted to the classification or the project. 

Co With reference to the c:ritieism of procurement procedures,, lil.ich 

are said to be due in part to the p:-esent canplicated method o£ transmitting 

infomation batween AFSA and the contractor, this is applicable to only one or 

two cases, and here again there are factors beyond AFSA•s control. If one of 

the Servioes insists on having all such intorma tion pass through it on the -P:Y 

to the contractor or from the contre.ctor to .AFSA,, there does not sesn to be much 

AFSA can do about the matter. However, it might be advisable to look intA:> this 

phase of contractual relations to ascertain what might be done to simplify 01" 

t.o facilitate tba current procedureso 

140 One last coment of general applicability to the SOAG remmmendation 

for a major expansion of the mtire effort on Albatross will be made., An 

expansion of the effort neans; i11 final analysis, more eqUipment and 11'.ore 

workersa But the quality or competence o£ the t.a.•kers is also very importanto 

It is the un'tJlimous opinion of the AFSA Executive Group that an extensive 

prog1•am should be initiated in AFSA without delay to train a large number of 

top level an:i intermediate-level technicians from anong its lower-level techniciansa Tliis training should take the form o£ institu~ formal classes,, 

and the performance of the student should be duly comidered in his or her 

future assig?h"ilents-. It is deemed necessary to divert some technicians trom 

productive assignments to unproductive or stud.J" assigl'lments, some £or full-tima 

study for pariods or three to tour weeks, others for part.time study for similar 

or longer periods. 'lhe program should be Ageney-wide• covering all technical 

fields, including cryptanalysis 1 traf;fic an~is, the usage and programmirag or 

analyt..i.c machines, etco The _special ties required by &Ver'f tect&llical branch in 

all the Offices and even in the Staf'f DiVisions should be·· considered under such 

a program,, which l!Duld be extensive and important enough 'to warrant the assign .. ment of a high-level, full-time 'training ~rector to gulil$ and supervise the 

courses and the ma.mi.er of their conduct, 

J..S. a. In connection with this analysiB o£ the SCP~G •Report,, the AFSA 

Executive Group reviewed a repo1'"t dated 10 March 19.$21 prepared by Mro Kirby, 

Chief ot AFSA-24,on the status or work on the OCtober Survey. The Group studied 

the recommendations contained in Mr. Kirby• s report since• they have a direct 

bearing upon the SCAG Report and its recommendations. As a result of the reviw 

of the K:lrby Report, it can be stated, for your in£01"i11at.1Qn, that tbe £ollowil1.g 

steps and aatd.cns have been initiat-Ed and a1""e i..11 progress: 

. . . (l) ATLAS I serial l is going on a 2J.-shift basis per week. 

(2) The oonstruot1.on am delivery of ATLAS I serial 2 is being 

expedi tecl. 

{3) A parallel development for a magnetic d!'Wll suitable for 

use in SLED will be initiated,, it the inquil"".f non undor way s.'iows 

that SLED will be considerably delayed by faults in the present drumo . . 

(4) The research onl ICDERVISH) \11.th s9"'.reral 

parallel developnents, mi tile procurement 0£ deveioJ%118nta1 m<Xiel.s of tha 

same under a task type contract are being expanded. 
• 

-

'M_P_S_!EJ_mH Stif!1'~ , - -· •• 1 / 

.. 18 April 1952 

EO ~.3(h)(2J , 1' 

<MEMORANDUM FeR GJ!\NER'AL CAM:tliE - Subject: SCAG Report PL 86::.36/50 USC 3605 

- • - ~ ~'~r - . - - - ~ • - - ' - ~ -1- - - - - - - - ~ 

;-(Q) More people are being assigned to the I \ 

bo Gertain of the £or(igoing ·a-taps arxl actions are in line uith the 

' first and seccnd formal Recommel1dations made by SCAG on page l of the SCAG Repart. 

Those steps and actibns were initiated in .AFSA some tilr.e a.go and are progressing 

satisfactorilyo Theref'ore, the Executive Group has no .tu..T"ther 00111aeut to mako~ 

on these SCAG recommema ti.ms and no recommend.a. tions bas;ed upon them are am0ng 

those tfhich follow. 

' 

16. ao With reference to the fuird and fourth SCAO recommendations~ tlw 

A'rSA Executtve Group recommer:ds that: 

(1) In regard to the 1hird SCAG reco.ililllEmdation,l the nature am 

extent of the changes in the broad policy or AFSA control which -would 

arise from the adoption ot the SOAG l"eCOmmenda ti.on be studied. 

(2) It those chB.nges prove to be impracticable or unacceptable, 

consideration be given ·t.o the establishment in AFSA of the posi ti.on of 

"permanent technical director," to be occup:S.ed by an official (1nilltary 

or civilian) who would be an ad.dit!cmal Dsputu to the Director, AFSA aTid 

on a level with the other deputieso 

(3) The f'ourth SCAG reco:r.memation2 be adopted insofal1 as concerns 

the separation of research frOJ11 development. 

(4) In cori.nection with this separation, responsibility of the 

Chief or the Oi'fice or Ope1~ations for work in his Office now being done 

as "applied. research" on Alba.t.."'"Oas aml I be transferred to the 

Chief' of the (proposed) Office of Researcho 

(S) A high-level~ technically-qualifi.ed group be established to 

prepu.'91 in collaboration 'With the proposed .AFSA Management contractor,, 

a concrete an:l detailed. proposal and plan for th.e organization and f'unc .. 

tions of tr.a O.ffioe of Research. · 

b. With reference to the fifth SCAG recommendation1 the AFSA Executive 

Group recommems that: 

(1) The Director, AFSA request SCAG members for more inforna tio.."1 

as to the imposition of controls over contre.ctors beyond thos<1 required by 

AFSIL • s current securi v regulations. 

>. (2) .AFSA's current cl.earance standards am policies be studied to 

ascertain whether they are inhibiting or hampering AFSA, and if so• to 

recmmnend changes that should be made therein. 

(3) The current prooeduras in the excha.'lge of iztrorma. ti.on bet":leen 

AFSA and contractors be investigated in ordm" to simply or f'acilitato such 

exchanges. 

Ca With reference to certain or the subsidiary canments and recommendations in tbe SCAG Report, the AFSA Executive Group recommer.ds that: ____ .,.....,,.., _________ .... ..____.... ______ ...._.._ . .--,-----~-= .... * ....... 

1 "(3) A Senior Civilian Technical Director should be appointed, reporting 

direcfil1' to the Director of AFSAe n 

2 "(4) A separate research organizaticn should ba established, headed by a 

Director of Research. The Director or Research should report in parallal. 

with the heads of Development am Operaticns to the Technical Director. 

If pt'oposal. (3) is ad.opted, he 1rould ~art direct.l.y to the Senior 

CiW.lian 'l'echnicaJ. Director." 

A.FSA FORM 781-C13S 

6 JUL 51 

" . TOP SECRET SUEDE 
, 

18 Apl'il J.952 

) ME?·:ORA.NDUM FOR GE!v'ERl\L C!i?lINE .. Subject: SC.AG Report 

\.. 

.., (l) The statistics i'1?1ative to A.FSA' s los:sas in trdnai personnel So studiod in oompariSon 'Hi th losses in similar 01~ganizationA1 mld. their 

causes inVestigated. 

AFSA FORM 781-C 1,S 6 JUL 51 

(2) Tho current manne~ of :L'1lpl.emento.M.on o! AFSA•s personr..e1 

policies bO e.ir.a.'ll1ned uith a Viev to :mak:i.ng improvements t."1erein if .fouild 

faulty 1 or to reCOmma'..ding revising i&i.oso policies if deemed a:lvisablo. 

(3) With a Vin to raising the ovar ... an compe·iienoa of the AFSA 

organilat1on1 and to impi"'OY:i.ng tbs recognition and compensatl.on ot AFSA • s 

techni.Oal personnel . .t an cxtensi\'Q.t Agency ... wida instruction..'.\l prog11ar.i 'ba 

1ni ti a tad w:i:bhin AFSA~ without delay 1 to train a largl3 numba'" ot top-le7el 

am :Ln\e~iato .. lovel techniciari.A from among its low0r-level tecr..ni.cia.ns, 

by ins'b:i.tuting .formal elas~es am ~diverting sueh pars0&'11lel from productiTe to study issignmehtit tor i:tmited perittls d time as !1147 be 1~equil•od 

fo ra1so the general lcv&1 of ®mpe'konc o ot al1 J.~3A teohnicians in £ll1 f'i~s ot interest t6 AFSA. 

c4) tb ~· and supetrl.se the traini.."Ig p:t'ogram; the post tion It 

Dil'eetor of Tl'ainins bs established within the Office or Trainin8, sucb 

a posi"tion t.o be f'U.ied by a high .. leVel; f'ul.l.""tim. 'teohnician; pr3i'et'a.bl7 

with palagogiO expeioie..110 d • 

'\ 

TOP SECRET SUEDE