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REE; ID :A4/148473 I 

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OSEGRET 

USCIB 13ft 

16 l.kroh 19~8 

MlnDRAlIDUU FOR ?.EMBERS ·oF USC ICC 1 

SUBJECTt Proposed Security ?Jeasure 

la A representative of the Teletype Corporation of Chicago. Illinois 

ha.a advised the Army Security Agency that a fo:nner member of the Army 

Security Agency who has had considerable practical experience with UaSo 

comnrunication security equipm~nt had very recently propoaed to the· Teletype Corporation tho development of a new cryptographic machine o This ie 

probably only one or the first of .numerous additional instances which~ 

be anticipated, wherein former mC!'l'.bars of the Anned Services will off"er · 

ideas for new crypto-devices 11 including literal, ciphony, and cti'ax equipmanta 11 to CO!l'.llT'.erc.ia.l firms or lahora.torias o 

2 •. In addition to the foregoinr; sources of nmt .ideas in the field 

of ccmu.-1.Ulication security apparatus 11 1 t should bo noted also that there 

are a. number o!' fonner ASA,, UCA., or service personnel who are n~ employed 

in commercial receerch laboratories or vii.th manufacturing concerns and 

who might also contl"'ibute new ideas for such apparatus for development by 

their employers.·· Such cases might well soon arise in the ciphony and 

cif'ax fields vJhich are now or deep interest to a nunbor of con~ernao 

So In vi~ of' tho hazards to. Camnunioation Intelligence sources, 

which such offerings and their potential or actual development present. 

it is suggested that a letter substantially along the lines of the.inolosed draft (lnclosure 1) be subnitted_ through USCIB-USCICC ohannola. 

to tho Sacreta:'Y cf Def'61"'1-Be for: hia conoidcraticn f9r ::;ignatui'e and circ\U.SJ.--ization to the relatively small list of. rirma cited in Incle sure 2o 

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SECRET 

Declassified and approved for release by NSA on 11-04-2014 pursuant to E .0. 1352a 

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As a ro~ult of their participation in the communication security aoti:vities 

and operations of the Armed Sarvices during the last l'le.rg thou:1ands ·ot.· persons 

0811l8 ·into pOSSession O~ classified information concerning the ae~:urity ~ipnfJ!ltS 

used by the ~' tha Navy9 and the Air Foroeo Most or the.t information still is 

and mus.t obviously reno.in in a. cle.ssified status for reasons or nat.ianal security ... 

The great Jd&jority of the persons manti.one~ above aro no longer members of 

those. serv.ices·nor connected. in fltly way with the Government .. Sane ,o_f th~ may 

have invoirti:ye types of mind and may conceive ideas for _improved· or new security .. _ 

equipmc:nts v1hi~h thoy may pr.oposo for possible devolopment by cc:mmercie.l fini.8 0 

such as your finn .• in the ~pe that their exploitation would be of' commercial 

i:ntcres.t and valuo.. In. a. raw casss soma or these i'c;>rmer members of the Armed 

Sen?:cea art1 now employed in commercial research lBboratories or' tn manufacturing 

rirnrs ~ and it l118¥' be part of their assigned duties to au~est new ideas for 

s.ecuri.ty devices or to make inventions in this field.. The great majority or suoh 

persons would be entirely innocent of a.rry intent to injure ·na~ional eecuri ty and 

·WQul.d veh.Smm.tly reject any thought of suoh intent. Uaverthelese 11 even Without 

intC!lt .to injure national security,, it is possible that serious ha.rm might rosult 

lf teohnioO:lly sound communication seolirity. devices,, ern.pl9yine; 'principles based 

upon or derived ·rrom a knowledge of u.s. classified equipment, became public 

property, til tiiiiatoly reaching for'cir,n .wters. 

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$F ID:A414B:473 

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~d}S E CR ET 0 

4o This i tooi. will bEii placed on the agenda !'or the Fii"ty-rirat meeting 

of USCICC. 

2 Inola 

l • Proposed l tr to be signed 

by Sec'y of' Def"onse. 

2.. List of comr.nmications 

companies. 

SE.CRET 

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REF ID :A414B!473 

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_The D~a:-~~ts of the National Military Establishnent have, of' course, no 

desire to stiflo toohni_cnl progress in rm.y field or knowledge, but where· such 

progress clearly af'fectz national security. certain minimum controls are desirablao 

They have been established, in the field of atomic enere;y. for example. but not as 

yet in the .field .of crypto-can.-nunica.tion11 which also presents speoie.1 p~oblems and 

hazards to national seom·i ty requirdnr; special treatment. 

It would, thereforep be much appreciated if your .firm would .inf'orm me or 

e.ny proposals~ oryptpgraphic o.pp8l0D.tus that may· be submitted for possible 

developmmt .. L:terps' could t~en bo taken by competent nuthorities to look into 

these ideliE and. to :make such arra.ngenents with all concorned as will not only take 

cogni·zance qf' whatever J?ri vate interests are invol vod but will also be conduoi:ve 

to th~ prote~tion of the .national der~nse;J 

~ckncmledgemant of raooipt of this letter wou].d be ap.pre.oiatedo 

x ::" -Ye.~e.t~ 

'( :i ~t.-~OJ'l1) Pr$ d·1.rt£t..1e.l \;'t 

-2..:. 

JAMES Vo FORRESTAL 

Secretary or Dsf ense 
2.EF ID:A4148473 

The Bristol CompaJ\,V 

117 Bristol Road " 

Waterbury• Ccnnecticut 

ATTENTION: l\!r. G. T. Evans 

Burroughs Adding Machine Coo 

Detroit, Michigan 

ATTENTION: Mr .. R. G. Bowor 

Vioe-President. 

Engin€1eriug 

D0Vry Corporation 

1111 Annitago Avenue 

Chioago 14, Illinois 

ATTF.NTlONz Mr. E. W. D'AL'cy 

Chief' Engineer 

LIST OF C01lPAWIES 

Gr£l¥ Research & Development Co .. 

Elmsford,, New Yo:r:k 

ATTENTION: Mr. Arthur H. Jones 

Vice-President 

Guardian Eleotrio !.~ufacturine; Co .. 

100 North Loomis Street 

Chicago,. .Illinois 

ATTEUTION: ?liro F. F. Rowell, Sr,. 

President 

Kellogg SWitchboard & Supply Co. 

6650 South Cicero Avenue 

Chicago~ Illinois 

AT'JEl!TIONs Mr. W. L .. Jones 

Government & Industrial 

Sales Dept. 

Melparu Incorporated 

462 swan Averrue 

Alexandria,. Virginia 

ATTENTIONs MI·. Thomas Meloy 

National Cash Register Co., 

Daytonp Ohio 

ATTENTIONs MI-. Ho M. Williams 

Teletype Corporation 

1400 Wrightwood Avenue 

Chfoago, Illinois 

INCLOSURE 2 

Stromberg-Carlson Co. 

100 Carlaon Road Roohest~r, New York 

Veeder-Root, Incorporated 

25 Sargea."'l.t Street 

Hartford. Connacticut 

AT'l'EM'.I.'!ONi 'Mr •. John H. Cfi..!lplin 

President 

Victor Adding lliachino Coo 

3900 Nort.~ Roolavell Street 

Chicago 18~ Illinoi~ 

ATTENTION~ Mr. A. Co Buehl&T 

President 

Under~uod Elliot Fisher 

1 Pa!"k Avsnu0 

Mew York. mm York 

ATTENTION: Mr. Lantz 

Rern.tngton RBnd, IncoTpoz-ated 

l Atle.ntio Street 

Stemf.ord, Conneotiout 

ATT1:NTJON: l1i.fr. A. Mo Roaa 

Western Electric Co .. Hawthorne Station 

Chicago, Illinois 

Wes·tern Unio-n. Telegraph Coo 

60 Hu.daon Street 

r4ew York6 New 'foYk 

AT'l'f;NTION: Mr. Joseph Lo Egan 

Prasiden"'c 

Intarnational Telephone & 

Telegraph Coo 

New York,, Now.York 

R.C.A. Laboratories 

66 Broad Street 

'Msw·Yo:rk 4, New Yo?k 

Automatic Electric Sales Co .. 

1031 W. Van Buren Street 

Chicago, Illinois 

ATTENTION: Mr. H.S. Williams 

Vice-President 
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1nternati;ona.l B.ueine·ise 

Machines Corpo 

590 Madison.Avenue 

New York 22, No Y.· 

T-inie~ Fao·simile Corp. 

229 w:. 43rd Streat 

New Yo_rk 18, New York 

Gener-a.1 Elactrio Company 

Syraousa,, New York 

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REF ID:A4148473 

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Gt=t.o TO•N , ~ e:~. '( o~.bf., 

Radio Inventions 11 Ina. 

155 Perry Street 

New York 14" New York 

Ball Telephone Labore.tori.es 11 Ino o 

463 West Street 

Nevi York 14, New Yol"k 

Hazeltime Service Corp. 

5$25 .Little Neck Parkway 

Little Neok0 New York 

\)J fq1-&...111j•C.li ~ l\.E'itN.1'!11'1 

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