l """1d' l.De to 1aVe IOU fta4 thle. .3lrlQDd ftflecti:c on it, I 

filQU14 =t wJ.ab ,_ "° talr.e - llCtSoll --•• aaarp1.ate obeok ~ tbt 

11.bole ~ lW ilr• Mlleok am4 8'1Cb ~ u !le _, 1dah to hae 

ocmalder S.'t. 

~ the -. or mxt ftek I pJ.m to take a ---icll ¥t4Cb. WUl 

t..smca eC'l¥ SD ~. .?¥ t.bat time, w dboUld be ~ to ~ 

d4e.r W ot the dotu A ~ or JSA. 

CCI 'f/JI'S 

C/3 

!!fr. iri.~ s/~S!..1.f ...::- ~. iiul lhack 

Declassified and approved for release by NSA on 08-15-2013 pursuantto E .0. 1352a 

""·"'" .... .. >F - 0 G.....r;]b £1 ~ ,{- '1,_ " .... _-:- -=...C 3 I )(.JJ , .. n . '<e;w CC; RET tJ 
REF ID : A65 6 71 6 Dea ter 1954 

tlda ta a ftnt 4laft 8IJlll08Ch to the ameraJ. pzoblm. or our 

Ctliiill eftbzit V!d.ab I alt1amd to 10\\ a tw _. ._. 

We se beoWinc _.. ..i -.... c:all9Snoed tbat • are DOt c1o1ag 

• ...,,,._. l/D Job v.t.th. ft8IGlt to CCllJl'lf. !Ida cpiaf.m 18 laUed. 

)11'1De:lps117 CD t1Je fol~ JJOf,nta: 

1. ftth ft8lilCt to te1epboae ...nv, w .. DOii' wtt.neem111 the 

mall 

'"'cl-1nl 

m 

at 

~ 

a~ 

tor mllitar,f, 

ta •m ld•Hme 

d1p1QN.t1.C 

1fJd.eh 

8111! re'llhd 

V1ll. Jl8kO 

ac:tf:rJ.tiee ~ tmm 

:lt baa -- MeQ SD tbe put. fttlda a t• J'eal'8 n will. ~ tee 

the a4ftat ot a aecun te!Clp)ane .,..... baaed Oil the waodel' Which 

el.eotr.leaU7 VSll be ..,._ tat: __.l44S.4& tel.ephmd.c cmmrm1catiaml. 

'!oa i.e &1natt aeen the betd'Rd"81' ot ., .. ,..,.~ aecun ~ ba88ll 

cm JQl.ae mcKblle.tSaa t.- tllm't - taatie&l. emmmScat.icm betVem air- ~. betWm aU,pl.aDae 8Dd sroum,, 8D4 betwca mbUe vebicl.ea ca 

lmd. 1'1188 ......U• 'lll1 a18o .-)D88tb1e en••C91 ard aecure tel...,.. aervt.ee tor .,, • ..., a.,_., cmarlaa4. 

2. Ve taYe not 1et ... & a1iaTt ~ tbl ~ ~ l8thod8 

am teelm1cpleo tar "czackSna• tel.epboD1c sec:ur1t7 s.JBtem• Ve do mt ..,. ImoW Vbetbar or not tld.8 1fUl ft'l!llr' nee- a pn.cticable ~tian. 

3• !be Job Gt cnc!rJng telepboDe ll&Cm'it7 qstaa8 vaul4 be & 

tanddable cme :1Mee4. Ir w ,....,~ began to 8iPJ>4 a mJor ett~ 

to tid.a wa., we 'laU14 be dolDc .,,.,,. ve1l. 1Ddee4 u 1d.tb111 tmee ,... w mde 1128 ti. a pot beglnn:tng. It would. be cotber tbzee Jean 

lJe:toft - OtNl4 aspen to be 1D. & poa1t1cm at all ~ to -·· pn8ld poat.'Uaa. nJaUve ~ tm crac1r1ng ot secret te1•:ew11 ..,._.. Aa ~ ment!aDed., auac•• ta tbSa tSel4 eaaaa~ be gml'8l1teer1J buWINI', 

lt dDel mt - to M UM W lbo1l14 fllU to mt& ID belo1e ettartr. 

i.. JD tm ~ oc•111ndcat.Sane t1el.4, 1'ft88At IUV' CCl4D.r 

ettOl't.I mve an Jar.pt pace V1.t11 ~ s.a CQISIC. ~, 

in tlda Ct.JIEID: t1el.d1 ve are about to Vi tDeA a l'ft'OlutioW7' obaage 

O:om maoballf.eal ~.f.Ds 4avices to electl'oll1o dev1.cea. 1.'h1a vill 

~ make the cnck1ng Job mmh ... d.iffDult. 
At this the I do not consider Iqsell' verr well in!'ormed with reapeet 

to the intercept problem; however, I beliew that. the tollowizlg things a1"8 

true. 

5. The task oL intercepting ol"d1.na17 long-range telegraphic 

commmr\cations should be susceptible to considerable improvement. ~art, 

ot this improvement. should come about aa & result of the steps which 

you bave ~ taken to improve personnel and mthods o! operation 

ueing prese~ ava.flable gear. Considerable t'urther impro~ should, 

I believe, be capable of rea.llsation by employing improved gear arJd 

impro'Ved methods which R/D should be able to provide. Som.e indica.t.ed 

poasildllties in this connection are1 

a. Diwrsi.tJ" reception. 

PL 86-36/50 USC 3605 

EO 3.3(h)(2) 

b. Reception devices which will better indicate the\beginning 

and end ~ aessages. 

c. Automatic gear ·ahich will better indicate the portions of 

received inessages which a.re garbled because at adverse receiving conditions. 

6. 11\8 presently available gear and :nethods for intercepting VHF 

a.nd ncrowave eo...munica.tions shoul.d be susceptible ol considerable 

improvement. 

? • te shou1d .:?Jake a. start toward interceptingJ 

t this is riossible. 

9. In due course, the results ot the study on bow NSA could more 

e.tfecti velT mechanise ite COMINT, '\llhich Dr. ~chus is heading up, ·dJ.l 

become available. We beliew that it will indicate much opportunit.7 tor 

more e.t.tective mechanization, particularl.T in the tields of traffic 

~·and the wJ..nnowing out ot promising material tor .t'urt.her st.w%r 

tl'Om the enormou me.sees ot me.terial "Which nov now in. At tbs least 

it seems a sate bet that this study vill indicate t.he desirability ot 

a larger amount of B/D effort. in the COMIMT tield. We bellew also that 

the stuey will indicate posaibilJ:ilea of tu.rt.her mecbaniaation which 

PROD can exploit with very llttl.e, it &Z\Y'J R/D etron. 

TOI 'SECRET 
REF ID:A65671 

10. Just a.a a ruer, I asked Dr. Campaisae to prepare a briet 

memorandum. eett.bg forth his 1d.eaa as to vort.mlbile proJect.e for~ 

1ng the etfo~ on COM!?lf. Aa a result. he prepa.red a. memorandun dated. 

tiowml:Jelt 22, • cow of which ia attached. In th.ta bo aped.fica'll7 oattiadod, att rv sugpatioQ, the d.eaiftb1llt7 ot undertald.ue the dewloPaen\ ol mcttbods ~ cte\'1ces tor cracking aeove telephone~ and 

alao the desirabilit.7 of t.ransiator1s1Dg li& •a ~ maebinoa, in view 

o£ the tact that- I vu alread7 convinced ot the desirablli\y ct these 

W'Jdertakings. Even G01 Dr. Capaigne' e NmOrandm serves tho uselul 

pU.rpOee ot adding collaborati ~ evidence in ge.ueral support ot the 

~.nt herein set forth. 

u. lBA should take the lead in ultimate t.ranlistorisation ot 

aubata.ntiallT all o£ it.a anal.Jtic ma.chines.. Transistorisation nov appears 

to be t.he -~ p:re.cticable l'O&d toward great incre&sea in the pulse rate 

cl HSA' s m.aeh.intas,. tl"QLl the present top tigu:re ol soaethiDg like l m1 l lion 

pulJsea per second to at. leaat 100 11illion pulaes per second. Some or NBA 

anal.Jtie ma.chinos have alreadT about reached. the ll:Ait ol pncticabillt.7., 

size and cmplexit.y', It "NOuld seem. to me that the groater reliabil.1\7 

to be expected fl"()Ja tranaators, coupled wit.h their aall sise QJ'J.d low 

power requ:l.remsnt.a should make it posaibl.e to envision practical in&Chinee 

at least lO tixr..es as large end lO times u complicated aa an:! .NS..\ now 

poseeasea .. 

soME YIGJ.!RES l@AWS 'l'O alp EFFORT 

12.. i.dth ~spect to R/D eti'ort, some tigures have been prepa1'ed 

which are set. tort.h in a mciorandum prepared by Mr. A. w. Roso, attached. 

hereto. On Sheet l, there is sot .forth !or the .tiscal 70a.rs 1947 to 19.56 

inclwdve the total o! t.ho R/D et.tort. .figured in tw l!lq'SS (l) in aCCOl"da.nce with the present. Go~t Accounting metmd.s, &1ld ( 2) 1n accordance 

with met.hod.a which would bG used wre this a comt:iereial organ:i at.ion. You 

1d.ll note t.hat., tig ·:~ in this latter...,., R/D e.tforta appear to have 

inereased fram s.o :rtu ion dollars in tiacal .,...r 1947 to an est!Iated 19.:3 

mill ion d.ollcirs /Qr .tiscal. 7f:&r 1956. I have wed the werd.B 0 appe$1' to 

show" above bee&~ a camzot be too certain ot the aceurnq o! the tigurea• panicularq for the earlier JOU'S• 

13. On another sheet. is given a bnakdowa ol R/D et.tort. 1nto the 

COM:~ and COMU'l' caiescries tor t.hG liacal years 19;1 through l.956. 

Thia is ot pa.rUcu1.a.r interest. It. a."&ow that. the R/n ettort 1n 19'1 

amounted to 10.4 million dallan on COONi' am 5.3 m:lll1on doll.an on 

COMSEC. The pt'C>jected figures for fiscal ;yeU" l9SS ahow a total ot 

lD.l m11.lion dollan tor roMD1T and 7.s million dollars tor COMSEC. In 

other 1i0l'ds, the a/D etfot"t, on <X>Min bu not kept, pace with the eorre9-

ponding ettort. on COMSEC. Wbat eeemts to• pa.rUcul.a.r~ ldanifioant 

_,_ 

·TOI SECR~T --'--: 
bas beeA tbe apparent tende11C7 for the out.aide contracts on COMmf tO 

peter out while t.hose 011 COMSEC haw abown a heal~ 1.nol'eaae. 

(IOTE1 The present 1'1gurea in l'..r. Rose•s umorandus, with respect to 

the division ot effort. bet.wen COMiliT and COMS.8C differ conaiderabl,y 

from. those in an earlier edition. Tbe J»W edi1;1on ahowa Nlat.i vel.J' more 

effort on COMiliT than did ·the earlier edition. We must therefore check 

these figures .further betore attaching too much signiticance to theln.) 

SOME OIJi'2"R COMPARI;Sj?!§ 

14. The present total of milital7 expenditure according to ths 

newspapers is something like '' bllllom ol. doll.a.rs per 1'!ar. I 

estimate very roughly that l4SA 's total effort. plus increased military ~cations exper..ditures resulting .trom the imposition of securit7 

requirements a.wunts to somotbillg like 3SO m3Jl!on dollars per~· 

U these figures &l"e correct, it would indicate - that NSA 1 $ activities 

amount to about U of the present total defeme effort. 

l5. ;\gain 'V'llrT roughly, the a.bove 350. million dollars divides 

into about 250 millions tor COMINT and 100 :zdlllo:rw !or COMSEC. Comparing these figures with the R/D etfort eatlla.ted tor fitilC&l year 1955 

ot 10.l miJJ1ons and 7.5 ndllioAa !or ~.w1T and OOMSEC respectively', 

we MO that it tbs above assmsd figures a.N true t'he R/D effort on 

COM.Dr.I' amounts to 4$ o! the corresponding total milit.1.U7 e!tort ar..d the COMfil!~ amounts to 7. 5%. 

(UOTE: I have talked to Colonel Je>nea, the Comptroller, a.bout obt.aimng 

better .figures nth respect to the total effect of NSA on .:Dillta.ey 

m;iendi tures in the COMii.'T and C0.11\5£C tields and. I belleire t.M.t he 

would be veey happy to be assigxled t.be job o£ obta.1 pin& better authenticated !igures. It seems to me bi&bl3 desirable that this bo done although 

high precision is of no bμ:>rtance.) 

a@ICA~D COU&SES OF ACTION 

16. It seems cleu that, in the national. into.rest, l'ISA's e!!ort in 

the CO~Wlf field should be expand.edJ howner • in tho 001-tSEC i"ield the 

present et'!ol"t seems reaaonabq adequate. 

17. Ia the P./O area_, t.he moat practicable il'i\'D,eCf fate method whereby the over all etfct't can be oxpaadod is by mat.eriallT increasing the volume 

o£ ot1tt;ide cont.raete. 

-Ir CL 

_ ...._. TOi...)SECRET. 

' ,. ~ - - - - - - - ~~-_ _:_~;;r~ .. ~\ ".: ,-~ ~ ~-- - - - - - - - - - ~_2~_:_ { •{-; - .. ' - - - - - - - - ---
19. Om auch eoncem is.- Bell Tel.epbone Labora.tories,. which baa 

had no COMiliT contra.eta $:1nce the last war. RSA bu preeenti¥ under 

actJ.'9 eonaiden.t.1.on contracting with 8ell Telephone Laboratoriee tor aa 

ach •rk, 1ooJdDg tow.rd' the tranaistol'Ua.t.ion ot JfSA •a ana:cytic macbinea, 

aa Bell Telephone taborat.ol'iee can be penuaded to ~e. It 1.s hoped 

that this can be made at least &a great as 1 nd.Jl1on 4ollars per .1881'• . 

20. Another strong concern is the Lincoln Labora.tories whieh t.o 

date baa done nothing in the CO:..wrt tield, It is hoped that Lincoln 

can be poi-suaded to undertake a broad contract to atudT the !ea.aibiU.ty 

ot and ul.timatel.3' proc:tuee maebiner.r for the . cra.c1d.ng ot telephoae eectU'it;r 

s,yat.,ems. This work should starii within a. ~ and to be Nally efi'ectiw 

should build up to a rate ot expenditure of at least 1 Dlillion dollara 

per JeU*• 

21. The 1xnssibilit7 ot other large concerno ent~r.1.ng into other 

cont.n.cts which W'>uld reqtrl.re a minimum o.r sui:ervi~ion should also be 

explored. It wul.d appear that several other concerns would !all into 

this cat&goey. 

22. In addition to this increased contract activity, R/D should ~ately' plan and take active steps touard increasing ito engineering 

torce by a much :nore intensive recruit.i118 omap--1.gn than has u ,et been 

undertaken. In this connectio~ I have had discussions with the Personnel 

Department ot NSA which ha.a reeulted 1n tbe preparation o£ a memorandum 

i"rom }lr. John L. Sullivan, a cow o! which is atta.che&i hereto. This 

memorandum puts forth as a possibility too hiring b7 MSA ot a.bout llJ 

seientU'ic personnel !or each of the next tbreo yea.rs, which e.J.lowing 

tor attrition uould be a net gro\1th ot 75 engineers and scientists over 

this three-,ear period .. 

23. Even though I believe that the i.ucreased expenditures tor Rib 

should be principa.UJ tor increasing tbe COHDT e£!ort., the increased 

engineering torce wulA be allocated to all sepent.s on a "need. for new 

blood" basis. Proper balance between jobs muld then be attected b,J' 

transl era. 

24. Security requirsDent.s aZld iA parUcular the obtairtl~ ot t\1ll 

security clean.nee !or new employees otters a major obstacle to the h1.:r:SJ:lg 

program. The amelioration o! thia situation should be actiwly studied. 
.; 

REF ID:A65671 

26 •. &'9811 it an out.lide esta.Oliabment. such aa suggested above 

·were eatabliahed1 R/o ahould immediat.e.11' :recruit eom.e additional pel'SOWl 

who lOUld ~under present aecuri.t.7 regulations •. Space prod~ 

eoould· therefore be -.de tor increa.aed. ~ ot 2~50 eng:l.neen and 

50-lQ() assistants \d.tldil t.he contina8 of pre~ quarters, pr!Or to the 

projected·move to Fort Meade. 

.iTOF•secRET - - - - -~ - - ~,. _, - -' - -~ .. - - - - ' - - - - -

-· 

"