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Contribution of Signal Intelligence 

Toward Victory in World War II 

and Its Relatively Small Cost 

1. a. The Hearings held by and the Reports of the Joint Congressional 

Committee on the Investigation of the Pearl Harbor Attack are replete with 

references to the nature and value of the large amount of signal intelligence produced by the cryptanalytic services of the Anny an:i the Navy bef'ore 

the attack. The testimony of all the important a.IXi. high-ranking witnesses 

lead the Majority to characterize in their report (p. 25.3) the signal intelligence as "some of the finest intelligence available in our history." An 

excellent summary statement appears on p. 232 of the same report: 

"The success achieved in reading the Japanese diplomatic codes 

merits the highest commendation an::t at! witnesses familiar With 

Magic material throughout the war nave testll'ied that it contributed 

enormously to the defeat of the enemy, greatly shortened the war, 

and SaVed many thOUSandS of lives• II 

b. Perhaps the most valuable testimony as to the value of the signal 

intelligence produced by the Amy and the Navy before and during World War II 

is found in the letter which General Marshall, Chief of Staff, wrote to Mr. 

Dewey on 27 September 1944. 

c. The present Director of Intelligence, WDGS, who served throughout the war in the Pacific as G-3 on General NacArthur's staff, has recently 

stated: ' 

"The information G-2 gave G-.3 in the Pacific Theater alone saved 

us nany thousa.rxis of lives and shortened the war by no less than two 

years.11 

2. Assuming the last statement valid,, am with the knowledge that the 

information to which re£era:ice was made consisted almost exclusively of 

signal intelligence, it follO'...rs that the operations and results produced by 

our signal intelligence agencies shortened the war by no less than two years. 

A rough calculation may therefore be mde as to the monetary value of signal 

intelligence by comparing the cost of producing that intelligence with the 

cost of maintaining a fighting army for two years. It will be warranted to 

select the la.st two years of the war as a basis for calculation. 

3. a. Cash spent for operations of Signal Security Agency, Washington: 

FY 1945-----------------------------$14,,840,234 

FY 1946----------------------------- 9,,107,,124 

Total for both years ---------------i23,947,3S8 

eclassified and approved for release 

y NSA on 05-08-2014 pursuant to E.O. 

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b. Estimated cost o£ pa7 and allowances fa!' military personnel at 

S:f6nal Security- Agency., Washington: 

FY 194$-----------------------------t S,,524,,626 

FY 1946----------------------------- 313371494 

Total for both years ---------------1 81 862,120 

c. Cost of plant, Arlington Hall StatiomO~ginal. real estate ---------------$ 650 1 000 

Furnishings with purchase ---------- 40 1 000 

New construction ------------------- '5156o,ooo 

Total cost ------------------------...$ 6,2.$01 000 

~o deduction is mde for normal depreciation. 

d. Cost of supplies and services (estimate}: 

Requisitions through Supply --------$ 21S001 000 

Branch 

Communications service for --------- 21 0001000 

two years 

Total cost -------------------------$ 4,Soo,,ooo 

e. Estimated cost of overseas operations 

For two years at $2,5001 000 per year -- ;S,,0001 000 

RecapitulatUm. 

a -------------------------------$23,9471 358 

b ------------------------------- 8,862,120 

c ------------------------------- 6,2so,ooo 

d ------------------------------- 4~soo~ooo e ------------------------------- s,000,000 

Total cost for two years -------------148,559,478 

4. Since it is difficult to state how much of the COMINT provided 

overseas comma.ms was produced 'bJ'" the Anny and how much by- the Nav.y1 it wil1 

be assumed. that both Services contributed equally- in this regard. Also., it 

is assumed that the cost o£ o~erating the Navy COMINT service was approxillB.tely the same as that of the A:rrtrr1 that is1 a:i;praximatel.7 $4B.,SS9.,47B. 

Calling it $501 0001 000 for each Service, the total cost was ,:Pl001 0001 000. 

S. The total appropriations for the two Services for the FY 194$ and 

1946 were as follows: 

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Anny 1945-----------------------------$15,435,ocx::>,ooo 

Navy 1945----------------------------- 29,493,000,000 

Army 1946----------------------------- 21,497,000,000 

Navy 1946----------------------------- 23,477,000,000 

Total --------------------------------i89,902,000,000 

Approximately------------------------ 90,000,000,000 

Add for other quasi-military 

.functions carried on for 

activities directly connected 

with the war-------------------------$10,000,000,000 

Total. -------------------------------$100,000,000,000 

6. Ratio of total cost of COMINT Services to total cost of war for 

two yearS": 

$100,000,000 - l 

$100,000,000,000 - I?rO"O' 

That is, one do liar spent COl-ITNT-wise is worth One thousand spent otherwise. 

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