SIGPO 

REF ID:A63527 

Contract llo. DA J.8-119-SC-109 

267-LYll-58 (Mr. William 'J". Friedman) 

flll 14 Jan 59 

J. Ca1n/40r;;r/t)r. 

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On 8 Januar;y 19'39, Mr. WU J1 am ., • l'riedman t!elivered Progress lleports 1'os. 

3 and 1f. to the Director or ~iDg as prov1decl in paragraph (1) b, Article V, Contract :SO. 1lA J.8-ll.9-SC-109. These reports meet the technical requirements ot the 

Ot'tice ot '!'raining. 

@'pp roved for Release by NSA on 11-18-2013 pursuantto E .0. 1352a 
REF ID:A63527 • 

WILLIAM F. FRIEDMAN 

310 SEOOND ST., SE WASHINGTON 3, D. C. 

8 January 1959 

Director 

Nationa.J. Security Agency 

Fort George G. Meade, Maryland 

Attention: Director of Training 

Sir: 

Reference is ma.de to Contract No. DAJ.8~J.19-sc-1~9, 267-LYN-58, 

entered into as of l May 2958 by and between the United States of 

America and the undersigned. In accordance with provisions of 

Article I, paragraph d, of said contract, I submit herewith, in 

Inclosure l, a report combining in a single report the third and 

fourth Progress Reports outlining progress of the work on the items 

cal.led for by said contract, for reasons explained in Para. 3 of the 

incl.osure. 

Incl: 

a/s 
.... . REF ID:A63527 

8 January 1959 

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

a. In the second bi-monthly report, dated 3 September 1958, reference 

was ma.de to the matter of the security classification of the materials to 

be prepared under the several projects specified in the contract. Attention 

was called to the fact that: 

"In Section IV of NSA Bulletin Number 1.17 dated 1 July 1958, 

the attention of all concerned is directed to the provisions of 

paragraph IIA, Part 6, EncJ.. No. l to Department of Defense 

Directive 52~~.l, dated 8 July 1957, viz: 

"All material directly related to cryptographic systems 

which was previously classified RESTRICTED Security Information 

is upgraded to CONFIDENTIAL." 

b. The second bi-monthly report went on to say: 

"It is the Contractor 1 s understanding that the foregoing provisions 

are being applied 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 will 

be necessary or at least advisable to apply the provisions cited above 

to the final materials to be produced under the contract. The Contractor 

will not be handicapped in the production of those materials as a consequence of the strict application of the provisions of the DOD Directive 

cited; however, the Contractor believes that the contract should be 

modified to make it clear that the classification of the materials to be 

produced is "tiO be CONFIDENTIAL. 11 
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c. The point raised by the Contractor•s second report apparently 

required considerable consu1tation within NSA and took more time to 

straighten out than the Contractor had anticipated. When this became 

obvious, the Contractor orally advised the Training Division and Mr. 

Robert F. Moroney, the Contracting Officer, that the Contractor felt it 

advisable to get the point at issue settled before proceeding with further 

work on the contract. This advice had its effect, for after a1most one 

month's delay, in a letter dated 30 September 1958 the Contracting Officer 

stated: 

"In view of the fact that NSA Bu1letin Number J.17, dated 

1 September 1958, requires that a11 material related to cryptographic systems be classified CONFIDENTIAL, and since much of 

the material to be incorporated under Project 1 of Article I, 

paragraph a (1) of the subject Contract involves cryptographic 

material, the six lessons to be completed under this portion of 

the contract a.re hereby classified as CONFIDENTIAL. 

11All remaining portions of the contract will remain 

UNCLASSIFIED." 

d. Upon receipt of the foregoing letter the Contractor immediately 

telephoned Mr. Moroney to point out that it appeared to him that it 

wou1d be illogical to classify as CONFIDENTIAL only the materials called 

for under Project 1, leaving the materials ca1led for under the remaining 

three projects unclassified, because all the projects and all the materia1s 

thereunder must definitely be regarded as closely inter-related. In 

particular, for instance, the voice recordings called for under Project 4 

were to be based upon the manuscript called for under Project 1. It 

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REF ID:A63527 e 

certainly wouJ.d appear illogical to classify the manuscript of the lectures 

CONFIDENTIAL a.nd to leave the recordings of those lectures unclassified. 

~- As a consequence of the aforesaid telephone conversation a new letter, 

dated 9 October 1958, was sent the Contractor by the Contracting Offficer 

stating: 

"Subject: Narrative Security Requirements Check List dated 

3~ September 1958, for Contract DA18-119-sc-1~9 

"The subject Check List is hereby rescinded a.nd the 

following substituted therefor: 

"All materials produced under the referenced contract, 

considered as a whole, will be classified CONFIDENTIAL. 

In this connection, individual parts will be classified on 

their own merits. 11 

r. In acknowledging receipt of the foregoing letter, the Contractor, 

in a letter dated 13 October 1958, stated that the "new wording is now 

satisfactory and work on the contract is being continued on the basis 

indicated therein". 

~· Work on the first three lectures of Project 1 has now been completed, 

and is considered to be at least suitable as a final or nearly final draft 

of the required manuscripts. 

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

(a)(3) a.nd (a)(4) of the contract. 

a. The photographic negatives and prints for the three above-mentioned 

lectures have been assembled (Project 2) but a.re not in final form. They 

a.re considered fairly satisfactory but need a bit more work. 

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.. . REF ID:A63527 

b. The negatives mentioned in !. above wil.l be forwarded to the 

Adjutant General, NSA, for ma.king the required lantern slides. It appears 

tba.t film slides 2" x 2", suitable for automatic projection lanterns, will 

be better tha.n the old-fashioned gla.ss slides 311 x 4k11 , and the former 

type will be ma.de. 

c. Voice recordings of' the three final or nearly final drafts of' the 

first three lectures have been ma.de on magnetic tape and have been heard 

by a representative of the Training Division, who expressed his satisfaction 

therewith. These recordings will need some editing work, which will be 

done before turning them over as final products. 

3. The Contractor has been somewhat handicapped by the fact that the 

magnetic tape recorders a.re ol.d and in not too good condition. On two 

occasions, af'ter testing to insure that the magnetic heads were fUnctioning 

properly, recordings were ma.de, only to find on playback that they were 

quite defective. One recorder was returned for repair but still is 

unsatisfactory. All recorders have been returned temporarily to NSA in 

view of the fact that the Contractor some months ago ma.de a commitment 

which will take him to Yucatan, Mexico, for at least three and possibly tour 

months • The Contractor had ini tialJ.y contemplated continuing work on the 

contract while abroad, in view of' the fact that the materials called for 

were originally specified as being unclassified. Now that the materials 

,... called for are CONFIDENTIAL, work on the contract will necessarily be discontinued until the Contractor returns to Washington. Re hopes to complete 

the contract within the time stated in the original. document; but shoiil.d 

it develop on his return from Mexico that an extension of time will be 

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REF ID:A63527 

required to complete the wo~k in a satisfactory manner, a request will be 

:ca.de in writing for such extension. 

As originally contemplated the third bi-monthly report was to have been 

submitted on or about 1 November 1958, and the fourth, on or about 1 January 

1959· Because of delays mentioned above, no third bi-monthly report was 

submitted. The Contractor therefore deemed it advisable to combine the 

two bi-monthly reports (3d and 4th) in this single report. He further 

believes that approximately one-half of the work to be done under the contract 

has been completed and that he is warranted in filing the invoice which 

accompanies this report. 

h~·d~ WILLIAM F. FRIEDMAN 

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