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IICPO 

CQntrect lib. Dl 18-119-sc-109 

261-JD .. 58 (Mr. V11ll• I'. Pdedman) 

'!llO 16 Sep 58 

P. a. 'J!a.tefoo"JT I fbri..t 

On 3 Sept.ed>er 1958, Mr'. VUJS• P. Pr1ec1mn 4el1Tered Progress BepQrt :so. 2 

to the D1rectar at '1'.ra1D1ng • prorlded 1n }lfll'wgt1lpb (1) b6 Article V 1 Contract l'lo. 

DA. l.8-ll9-ec-l.09. 1.nl18 repart meets the teclmical requireroen.ts ot the o.tt1ce ot 

lfra1D1Dg. 

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@'pp roved for Release by NSA on 11-18-2013 pursuantto E .0. 1352a , ____ --- -- . - -------- -

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REF ID:A6357241 

WILLIAM F. FRIEDMAN 

310 SECOND ST., SE WASHINGTON 3, D. o. 

3 September 1958 

Director 

National. Security Agency 

Fort George G. Mee.de, Maryl.and 

Attention: Director of Training 

Sir: 

Reference is ma.de to Contract No. DAJ.8-l.J.9-sc-l.'119, 267-LYN-58, 

entered into as of l May 1958 by and between the United States of 

America and the undersigned. In accordance with provisions of Articl.e I, 

paragraph d, of said contract, I submit herewith, in Inc1osure 1, the 

second of the six bi-~.ontbl.y Progress Reports outl.ining progress of the 

work on the items called for by said contract. 

Very truly yours, 

W1~8;8:W ... c--'-

~IAM F. FRIEDMAN 

Incl.: 

a/s 

II 
• REF ID:A6357 • 

3 September 1958 

L Progress on Project l of Article I, Paragraph a(l) of the contract. 

a. The item called for under this project is a manuscript of the text 

for a series of six (6) lessons containing uncl.assified data designed for 

the technical orientation of new NSA empl.oyees. The word uncl.assified in 

the preceding sentence is underl.ined to call. attention to the Contractor's 

belief that the National. Security Agency's recent action in connection with 

a Department of Defense Directive wil.l cause all the material called for 

under the contract to be cJ.assified CONFIDENTIAL. In Section IV of NSA 

Bul.J.etin Number 117 dated l Jul.y 1958, the attention of all concerned is 

directed to the provisions of paragraph IIA, Part 6, Encl.. No. 1 to 

Department of Defense Directive 52~~.1, dated 8 Jul.y 1957, viz: 

"AJ.1 material directJ.y reJ.ated to cryptographic systems which 

was previousl.y cl.assified RF.STRICTED Security Information is upgraded 

to CONFIDENTIAL." 

It is the Contractor's understanding that the foregoing provisions are 

being appl.ied in a very strict manner throughout NSA. In view of the fact 

that much of the basic material which the contractor is using and expects 

to use as the work under the contract progresses, it wil.1 be necessary or 

• 

at least advisabl.e to appl.y the provisions cited above to the final. materials 

to be produced under the contract. 'l'he Contractor will not be handicapped 

in the production of those material.a as a consequence of the strict appl.ication of the provisions of the DOD Directive cited; however, the Contractor 

bel.ieves that the contract shoul.d be modified to make it clear that the 

cl.assif'ication of' the materials to be produced is to be CONFIDENTIAL. No 
. . . REF ID : A635 79 

change in the total. consideration of the Contract is expected as a consequence 

o£' the proposed modification. 

b. Work on Project l has gone forward despite the Contractor's absence 

o£ almost a month to participate in the SCAMP summer symposium at the 

University of' California in Los Angeles, because during the weeks he was 

there he was abl.e to try out many ideas be has for the material.a to be 

produced under this proJect. Copious notes were kept and " these are now 

being worked over. Examination of' the thousands of' bits and pieces of 

cryptologic information in the Contractor's personal col.lection is still 

in progress; actual writing o£ manuscript has al.so been in progress for 

some time. The substantive material for all six l.essons and lectures has 

been written down in outline form; the actual filling in of the outl.ine has 

been almost completed for one lesson a.nd l.ecture. 

2. Progress on Projects 2, 3, and 4 of Article I, paragraphs (a)(2), 

(a)(3) and (a)(4) of the contract • 

.!• Work on these projects has continued at a slow but steady pace. 

Material for additionaJ. photographs has been assembl.ed and some new 

photographs anq lantern slides already have been made. 

b. Two magnetic recorders, one of.the disc type, the other, of the 

tape type, were recently received f'rom the Logistics Division of NSA. 

Tentative recordings of an experimentaJ. nature have been ma.de. The Contractor expects to make trial recordings first, f'rom which edited recordings 

can be ma.de at a later date. 

3. The Contractor bel.ieves that about one-third of the work to be done 

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• REF ID:A63572 • 

under this contract bas been completed. He expects to make rapid progress, 

without significant interruptions, in the next f'our months. 

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