-------------R&~B-9..0""'6.._ _____________ _ 

Jrlrettor. lie 1ea.rob 1l 

J.'lillnlopmnt. ":':OOS 

.......... 

sEenn1. 11. AftT S.ourlty .lge.nat ha8 BO objection to the aydeu or priorities &9 

popcae& ht paragraph S ot 4n.f1; anoran.dUJr-, r.u"bject ... above. 

1. ta tM Al"9jf Se=rit.y Age:aq eonDtt:.ts with reapeot to the revision or AR 860-

•, h ... ,.~ thct ptgjtcta pe«a.liar foe 1ibo tray- S.ov.rity A.geney not \e 

ft11Hs1.C tnroup the !r.17" SeeurU.r Ageucy ?eohnioal Oom:d.tt.ee beoauae ot eecuri.ty 

... 11'*l"tt1ou 'but 'bit bandl-4 u •peoial projc.o'ta excepted rroa the proThion• or 

.0 uo.zs~ th. at.l-a.oM4 llnOHJJ.dua clo•• net t&b 'th1• conUn.gency illto 90llaideration 

... ti.a' pnjeot. pricrltle• aust o• ••t.ab11ah8d 'througb. the TeOhnioal Ooma1it.o. It 

6- raccw •nla.t1cm1 or tho I.ray Security A.r!mr:t • wt'th nd .. nnce to AR 8:i0-Z5. are ..... ltli•hed_, tt.n •peoul action am.&•t be "t*lteu ~ ••tabltah priorltiea f'or the · 

pnjeat• _peculiar to the A"'7' Seourl ty A(!ltl.oy .• 

I. .lt the preaen't ti-.. the lr=7 !eour1'ty !&•!101 11 operating under the 

&MtAtU polic1 t.bat 8S ~r cent o~ it.a rMG&ru q,d dn"elopmen1' •tforta he direoted 

'-l"d cr;rpto&raphJ.c proj•d"t• rea:.ilti.Dr; fl"'OIR Nquea-e. ot outside apnol~s and 35 ... 09nt ot it. •ftort• be a1rected ~rd projeo1;• -,.ouli•r to the :needs Q~ t;be 

.&11Q' SeCll.dtJ" Ageaa,r. The method a~ application or ta. prlorltie•. as stated in 

,.ra,,.ph a or ~ at•ebed. .. .,ran.dam pel"lai t• two pou1ble counes t 

-&. TlW &e•lgnmcn"t or tha .... priority to all ~ Seourl.ty A[}Ofloy 

p:tojeet1 G1eh,, Ul efflet,, h 01r9•~Gnti0'!& Of ~ 11ltmt ot tJ:a.a lll9DOl"llllcti=,, since 

1t wwld only .. ta~liah 'the r91.&tiTe prlor1 ti as ot all .&n.;r $9cu:rit7 A:.enoy projocta 

w!:th '21.oa~ ot ether ta,.e:ioi•• With no 4if!"erentlat1on aima.g the lndiTid.ual project:s. 

lt.. A .. tgn=ont of 41f't•re::.t priori ti•• to cllftarent yrojeots -.1th tho 

l'tl*1ll'\ that tl\6 pneettt 'b&lanoed ;;rcgr.i.a would be de•troyed and ?0&1ibly :no work 

...?d btt ms.derbke: on the •rntanalytio amt interoep't protraa peculi•r to ~ Ant{{ 

SNurlt,' .lg•Mf· Thia con~q •T wll be •XJN'ated becawe ot the liraited An:ry 

..,_rl"7 Agwne;r raoill:tua ror research ud wnelopMnt. 

C.llh• (a) ,p1"CpoH4 *'>oft b o'bYlOU9l7 .-01'."&l>l•J ocune (b) would deatruy tM 

JllU•filll\;y of •intalahlc a balaueed prog:rth1. 

L l'ot" th. purpose of thh ~randta. the reuar~ a».4 dn"elopnwnt f"aciliti•• 

of ~ .!!'111 hOul"tty Agency should 'M -.P?C-rtioned on a peroentage bash bew.en tho 

aypm,:-aphia project. reque1ted b7 o\l'taid.e npnd.ea ud the projects peouliar to 

• Nqutrtaent• or th• Arsw Seaar1-ty A.geraoy. Pre1en't ap,,ortionment b giTon in 

Jll&ragr-.,~ I &bore. ~0"1t8 1n apport1on:ll~nt would "'9 r.tccnti1DOnded per1odicsll7 by 

a. Direotor· ot Intelll~oe. wtlGS. 

e. It b noo~ded tba't: the apport1o=ent ot reseaJ'Oh a.lld developaent 

Declassified and approved for release by NSA on 01-16-2014 pursuantto E _Q _ 1352a 

I 
REF ID:A68906 

S:L6fL'E-

'hr Dlpart.n\ rrtor1~1•• tor Rt•••rok a:nc! ...... 10JllM1!t !"roJ••ta 

tu1U.tl•• ot tll• Al'tl;f !eeuri"ty Ac•o.Y be ncocntted ud _., &1•:>l"Ov•l • p'1'91l 

te •lntaua tliil •PiN>r\10ADe8' lade?9'AH11t ot priorl.\1M &HigMd \o •pooits.o 

fl'Ojeota .tthln ~ -.0 Vol&J'•• 

a. :rt h •l•o reoosmeruted '\hs.t. a phi'• .. •'l'ho•• Mfffle.r;r kt ~.enlop aad/or 

'repaN •tldpmont or •terial to 1UW"8 aoow·tv ot ~1•ti.ou" 1Nt tuorted ~- •abparaar&pba (1t) ad (•) er pe.-rqrap la (I) et tU propo•od tJnft. 

JDa tlS iJ?DC'ffJtt \;;' D'J'W..I'lQ"CB, 

MBOL'O o. BATU 

Oo?.cintt11 S1gaal Corp1 

Ch.l•t • A."'1 SM.u.rl~y •c•nay 

I