.. REF ID :A58.J...77 

•Ynt&RTEP..S ARLINGTON HALL STATION • 

ARLINGTO?l1 VIRGINIA SPSIS-1 

DA.TE ___ _ 

nnroru.:A.L mm FOR1 Kr. Friedman& 

I wonder if Mrs. Highley couldn't finish this 

job? I have finished the re-typing, but it has not 

been proof-read, nor stamped SECRET. 

Attached is a carbon or the first draft, which 

I took the liberty of marking up. This merely conaiete or changes in arrangement of sentences, and you 

may or may nor find it of use. Colonel Corderman 

read the original and made no comments. Just cmpx this 

in the wastebasket if you don't 'WB.nt to bother. 

Attached also are additional copies of the tabs 

'Which I had made. You will note they are clearer than 

the others, as I had them made from G-2 copies or 

originals. 

M. Dyer 

w, Pr~ston Corderman 

C~lonel, Signal Corps 

Commnnding 

Peclassified and approved for release by NSA on 12-26-2013 pursuant to E.O. 1352§ 

_.......,__ 
l. f'rior to Jun. 1917 D.o dep.rtJtent of tbe GoYerrunent Conducted &81° 

~·'-lrU• e.otiYitiea wbataoever. f'roll 1une 1916 to a.bout Decea'ber 

1920 a OOD1Jiderable .-ouut of work al()flf; the•• lines w&• conducted }Nrel1 

u a ,.trl.otie .rtt9l"',Priae and at hia 01fU expense 1Jy Jitr. BM>rge fabyu, ~ n'HrblJlk J.,e.boratoriel at ~. llliJloia 1 organbed 1:nd proTided 

.:).M911t&l7 tn.iaing ror a ..U group ot a.Nt.tw.r ern>t8n-.l.yets to w0rk 

llfCIC1 &ooh oodee aud eipber• a.a were forira.rded by ths lfar, H&-.y, Stat.a snd 

.,..U., DlplrtMnt•• Tbe P'fNP 800D b8c~ SO!lt61fha'\ proficient and Cl"W 

~ -'-ra_. at ~ U.. ~ JO persona. The under&iGJ1ed directed tba 

~1• operat10ll9 Mid tniniDg E-t the RiYerha.nk Laborat.ori•s f'l'e.• 

"'4: t' of th• inception or this work until ita olose tMI*-" in 1920, ~for a period of a -,..r (Kay 1918 - Uay 1919) when he·~ lat Lieut., 

MIJ>, 1£4 I •a at GllQ-A!.F in the German oode aolTing aection. 

2 • .!-- U June 1917 t.be orypt..naly-ti6 &OtiTitirS Of t.be 'la?' Depart.-

Mil\ were iui:U.e.\ed by Colaa.l la.n J>e;:ian, G-2, with .the c~ i~e+()llinc ot 

I. o. Ia.rdlJw7, a telegrapher 1.t t.lw State Department woo ._."'-t:d::im ~ 

?~H•t 1n eeypt.ogra~, wba ... ginm. two oinlian e.teploJtt&• to auut 

ll1a. th.It work &rW rapidly and by th~ autumi or 19l7 the iner.aHd at.arr 

n.a Ol."pJlis-3 &.8 a •ection deaign.e.t.ed an k!-8, which was 9i:idiTid~ into 

ca ab8ecti011a1 

8ub"eot.ion 1. COO. and eipher •olution 

• 2 • Ood• and cipher cxmpila.tion 

• J • Traininc 

• "'· Siwrwt ink• 

• 5 • lborthahd. and 11.iscelll'.neou• 

• 6 • Co=nn1cetion• (ror Ill]) only). 

~· The tunctiona and du~ibs o-C these •i.x aubaeotiona may be 

\lrUf'ly outllnedc 

(l) The oodi9 and cipher solution subseoti0n •~B wh&t would ...,. b. o..u.d th• crypt.Analytic .ubseation. It wr.11 th6 larcest of the .ubHe\iona of III-' and perf onied 1iilt cryptanalytic work not onl; ror the War 

De:P'\rtaent buj al"° ror all other Governnent depa.rtment8, inelwUnti: !tt?J:• 

S\at.•. Justice, and the two cenaorahip~ble anii Po6tal, which nre \ff!! 

t!l*n!f' <?fi!¢u. tiooa. 

(2) Deapi te the r~ot tbtt t llllder Army r.gula tiou• tha compll.aUon ru::rl re•ieiou of codes was a function of the Chi iplf,),. o:t!io~ 

eoapllition aotiTities under the SignP..l Corps were p~~- rTn a aori'bir:md 

.Ut.. latonw.t1on ht.Ying ~ received that the Ge poaseased oopiH 

or the War O.~rtment Telegraph Code, Kl~ deet:\ed it adTisaLle to esttiolillh 

a code o.oapllation subsection• ~ that aubsectiou produced seTeral ood .. 

. -
.. ' _J_ I ,T 

I 

aaeb. a1 11.Uit.ary Intellleeaos Code• No. 5 an.d No. 9, 8lliell pocket cod•• 

tar •eore~ agents, and the like. 

(.3) In addition to t.rdniD& 9'1!' 

~ own personnel, lU-8 trained 

ta1 m,_.*t.t ·~ per80allel ltmi:::m rp R f .1r erypt&oa.1:.-tic duties with 

~ torcef, ~ J.11 and Siberia. It mist. be menti·-:im·d, however, th&t 

approxi~tely S5 officer• were t.rain~d at lU.Terbank L~~ries, where 

:.,·~-i:-:.!;:!:!n: :u:~rf :~£~ ~--icm:• prior 

(4) A laboratory waa eat.a iahed ror the prepBr~tion ot 

1arla1bl• 1.Dke tor use by our own agen\e. It .c;lso examined ~ra tor ~·t wr1tina,nnd an aTera1e or over 2000 lettera per week examined 

tor the ailit&ry t-:nd postal oensorab.1.p from July 1, 1918 to February l, 

19i.9. 

· {5) Tbe Oort.bud subsect.ion -..~ s orgruiized to~ captured 

~lltO 

)Mid tirj 

and 

.s " 

text.a 

.. I. 

ill ftl'iOWI 

ThU na 

ohortlland 

is: If!•~ the 

aysteme, 

tirst 

eopecially 

suhsect.ion ~-e.Ais in 

U-l,4ftien th& eenaorsblp biiiii aelliling (O,q¥1f:D,}9i7) Tettera ocu- 1 

... ,a suppoaed.Li'9-" 1n e1pher but 'lfai•lt ~~"" __.,.._ in slaortbr.nd. 

.. 

In 

ri.*1'-xaminations 

la• 1918 the All ~ueated 

ot Ger-.n 

15 

prisoners. 

expert st&Ao&r&phers 

The required 

wh0 

nuaber 

could 

wa.• ~ tound. 

... ~. Thie suuseoiion also r-rovided traine-d linguists tor ll-6 

ad the , ... 

{6) '!be COmtUDica.tiona subseetioll was &st,.:hlighed in Ml..e 

for handJ.izl4' Jll.eliU.i81!1 to and from oilitary atthCh!--S s.nd. int&lligence atfiMr• Ml"'t'ing abroad. In a period or nine ~onths it sent find ·r~Jceind about. 

2j,OOO suoh ae•1a.g5s, praeUoally all 1u code. 

)• At. the heiibt of' it.• deTelo}Alent, which wa.a reached ill .Nov .. t..r 

1911, U-8 was, for tboN daya, a· :r:at.her lart;e unit, conaiating of lS 

ottic«r&, ~ ciYilian C117Ptop-aphor• -..nd crypta.nalyats, ~nd 109 t.7pilta 

and Stenoil"&Ph••· Tile tiu had come ror the ee"W!.Llislment or a defi.nite 

p>lioy ror t.he f'uture. ·-~ thG guiding h.el'l.dB of MilitarJ. Intelligence at. 

\hat. tiae t'ully recognised the high in.porthnce 1<nd nlue or the se1'Ticea 

rende.W..J.>~i~~....._!1I...c1 cryptanalytic bureau, because they h"'d bean in poaJ.,.. 

't.iou~roducta Qi& •he e•J.il;r -aoU,•1i\i~r the burea:1~.-· 8'1-••Wf' 

t.e ~ aaU:a aai tik119 eelrl:d m1t f'!IH ~es uMe ewinfluence and beariA&J 

wld rk •a: · ' -Jad, not Qtlly upon tho 111ilit11.ry 1-nd nnTal, uut s.lao upOll 

Uie d1plou.~1o, political, end econmd.c phaaeg o~ th~ c.mduct ot the nr. 

bey tbererora hftd prantica.l exparienee in the i:m t tor rud could l>riti& tJl9 

weight or t~:"f ~nsa'F1nr~nctt nd tl.f!ir a.et,u. .. l expt"rlence to bff.r 

upon tboae ~liiil".&!I: W the purse string•, .-1th the result that they •ere 

able \o ol)tain tuna.a sutfioient to keep a tairly large ore,anisation intact. 

tor a year or two. 1n annual appropri,.tion or Uoo,ooo wi.z'J reco~ 

in a ae80rand.um for the Chiet of Staff froti the .A.. C .. of S., G-2 1 dated 

1&7 16, 1919,(Tab .l att?i.obed) to be used aa tollowa: 

I.· I 

i f: f 

- Ii -
~"'£" ~..,.... ~ • / ;"{-.. , ... , ,, ......... ~ .. 

• ,_ -·-srGRcF=A5B¥? 

t J,900 

100 

PerS0111Mtl1 Chief (Y&rdle1) 6,ooo 

10 aode ~ oipbw nperts 

• 13,000 J0,000 

15 code and cipher •Xllerts 

• 12,000 Jo,ooo 

2' clerks 

• $1,200 JQ,OOCi 

$ 100,000 ~J J ' '4 i:f.,, l...:I ~ ,J-,,,.,.,,dcok..I 

Th• it•• for •rent., litht., ..,nd h&t"t• iH e.xμlsi~e •A• ~ aeh4 ~ th• 1-reeu .- • 'ie l:ie M•e4 f'rOt!i Wt\shineton ·dt.h 11 1"1e• t.o hiding it• 

.xi at.enc•. Of the $100 ,ooo r•Cj~anded, t.he s·\,r, te De pz.rtHnt. wn to pro-

•id• ~.ooo Rnd $60,_000 Wft.S ~'lirovided t"or expenditur" t:y the .1... C. ot 

8., G-2 QQ •aontid•nti«l IMltlOralM:Ut.• aisin•t 1'und5 pert&.inint to •Contμtpne;p- lil1t.o..r) Int.elli&'&aoe DiYision• - tli.r·t is, by voucher• not su'bjeot. 

to 'l'eTin by tb6 Cosaptrollflr Gener.~l. Th• paper aontAining the recoamend•-

Uoo• ltf.U1e hJ' the 1. C. ot s., G-2 to tho Ch1C\! or 1t.af'f "'"a •0te-ed• dd 

Saitialled bJ' Aetia& S6or•t•ry of' St.lite Polk on ~1.)' 17, 1°191 1 nd •itbin 

tibree ~,.. ot tho 1niU.11Uon or t.he pa.per (l«&;y 19} it ~jo~ atpproved by the 

Seerota.ry ot •~r over th• 8ign ture of (.,eneral Uaroh, Ch.lef or nterr ( ... top aheet. ot Tab A). lext cane tile qu8st.1on or wotui>.ll:: o'Ltr in.in& t1-

tmade.. In thi1.11 coru'9ct1cm T.l.b fl showe 'l eopy o!' a let t.f"r dh tect May 24,, 

1922 troll th~ thci 3ecretn.r-;. of State to Senator l'adairorth, wflo 11'&8 Chf.iJ"Mll 

of the Senate .lppropriatio1us CoJ:Uii tteo. '7'1 th th'> letter •en\ b apeoial. 

•110ri-.ndlw .,nJ a cop:. of it is included in T;.b a. biciently t.he fund• "P-•r"e 

obta1ae4. ~The plan •ns put into effect, t:.he burfJ&.U •··s instf'J.led in a print. 

bouH at 22 ~st. JSth Str•et., Rew .York City, ··nd all ,:x.r3onnel tiee-~• wiMl "-'<• ,.1.. 

exi•tin8 r~oord• were 1-'0Ved t.bereto~ . 

4• Tbe f'Ol'flflOin& flmda W.t:::.:.~i~h~ \...url"flU f'.'.'r t.he 1'! 1920, °W:\ 

when in June 1920 it. cane time to eat up tni:. l)\J.,.lret !'or YY 19~1, tht purM 

•trint• were alri•a:ty beginnine: to be pulled ti!:hter. Jiliny or t.he •old-U..l"a• 

in G-2 h!!.d r,on.c to o~h"r 01ss1ouaente; tho~• retnainin.£ • n1 r,h~ newcomer• in 

G-4 &ppttreuUy ·.lid n-:>1.. hove the baek{ round -:if the t\tory 1 t1.)r the f oreaigh\ 

and the influence t.o pr(;Sll tne n·' tter so ft•r .... s t.he lb.r Depr.rtnent •""• ooaCMraed. The r.ppropriatiou wns f't once cut in twlf, th ... t is, to ~~o,ooo, 

or trhich th~ StAt. Dep:.rt.!Attnt ah.ctre st.ill continue i tn ha 1.40,000. It la 

poeaihl• 

~ 

th~t t.ho Q-; th&ilili "fft fJ th• t ~ince the "PCrk. ·ion& uy tht: l~'Q. WU 

it' not. aol.•11 tor riDl.i or in1.~rttst to t.r.e St.~_t;.., D6}'(~ru.ent. ~" 

that. peri~::l in our a.t'fi;ir:, ttll or n<c"urly nll or t.n.~ !."unia •h?uld t. prOT~ ~,. ib&.1' d.•p•rt.ltent. Tti. war Departl:'lf.'nt o•E.rlooked soir.~· Tery illlJ>Orl.ant poiaw 

in \he •ii.u.tion - poi.Jlt.a ... w.ch will be l·roul,ht i..1. f,!d er.phnsiaed ls.ter 

in thi.9 ~1"1'• !lef'r t.hf' clolle O( n 1921, when it. ,.ppearcd t,hli;t, IL l'urt.bor 

eon.traction in fun:\3 O'>uld ~ r..n:tJ.cip.'ltt>~\ 11 ~ a.t.tt1mpt w~.s ?!1"1• 1.0 obt41&l 

Sttt.\e Depa.r\llMlt :JU_,port. be(ore Congr&••ionPl e.pproprifftions oommittee•, aad 
-

. ""· - .... ..., .. ~ ~., ,. .. r 

th9 A. o. or s .. , G-2 auoceedei.! 1n rut.tint. t.oo Secret r:-. oi' 3t"l.U. to write~ lett'lJJ' to t~e Cbair...u or the ~.enato AμproJri' Lions Co~~""\J.ttee • 

.l oopy of thi:s let.t~:r is 11+;t 11ched na 1',i,.b B. Tho A. c .. ·;f ~., G-:2: ~eo 

pr•.e9ftt()d hil ft8 ~f01'"9 the OOll'.llittee in cloSl'd 8:;JI '~which 

open rer«l"'GD orypv..n&l .• 

de1toed 'by I mc®r:?.n.iUll •tt. ched t.o Tab !. . iapr••_..,, fnr tbere w~s DOt, in FI 1922, SJ10ttwr 1$harp dliiiCBr! 

allotted for crypUul&l;)·tJ.c work. ~T8l" 1 111 order not t-o l·reek:. "the ooot.Saul\y of the history., at. this point,.. will inarel: !If? tt~tod t.lr t ~ o:lir \-y 

}'el.!' the fun.1a i°J'·ov1tied for tht: tMiiDL~ oonC# .ml OI->Ol'' t.lnu o!' t.l.e 

l.oeiMM mre ··nd sore C<JDatricted,.~,&. the .•utumn or lt; .. 9 t 

U.Nl.l\t1an, based ut-ion , lettor J~tod .fuiy 17, 1929 tror. ~'.t,jor ;. 

ht t.h.e _ ..t S cnal Of ricer Generti.l Gill ·s ' 

t.tc <l•terior"te ,A.M-4.6U.(a.....,~~--

n.nt. 

· Dooka, potttGg•, \ravel J<:nd 

tn.uporte. tioo, Iliac. 

Paraoanal.1 

1 Chief (Yardle;r) 

l oode &: aipber expert 

l transl•tor {.J~p) 

l aecrotar;y 

l clerk-~ist 

l clerk-typist 

7,500 

J,H..iJ 

J,750 

1,800 

1,600 

i.Jro 

'• Ot the total nppropriatioo of $2,,Q()J, ths St.: ta .iJe!•ttr~t. fur000 the War De • :t ~o,ooo the ao~.iviti a o'! tt-..o bure«.u 

this :eoo=e oo r uCi •~a 5en<lioi in cnly ocott si0nal 

I\ row Jr~pAn830 r ml h fow l>':t-X:l.C.O.n ·Ji;,lot."' t.i.o meri!let,;6Se Ja. 

rcab. "b6t. evtJr wnaJ oonduot.Ead in · u i there lli'tire no ~in1na 

· vitiea, nr) inttn"Cept, no direot.~M-fin~iing :1t..u..iies no seioret. ink work. 

The p&rsoruie-l consiatod .1r six rar"ooa ~l- tol(i> n1 37'- o: tho to't(.l payroll went to one rr.11ll, who h:•d little i.nvf r~st J't.ber tun.1 t•.) continue llS 

loDg -'8 poasit~lc to me.il:lthil:l hiaaeJ.r in tl..ie sin~curr• iut<:> which be had l.4Sl 

penitted t.o eetb.l1ll1Sh hi11selr. He •&\uni;:~· ~~ircll::~ie:)'inC ~~eument 

p~ea ':Uts -~ 41iftd'*i"<1 *'•'ernh',.1:11- ~~ MJt1Vtt:t~. 
-,, 'f'• 

'( ... ~ ... . ~ .., ' .,,.. 1 ~ neg? : AS 8 4),,,.7 

1...UllL' • 

~ •'tudit)• in per.'4e tioe n.3 i»lwii it Ml· hitaztliP! to ~a&• 

1a naearcb. .-.nrt tAo lil•e'lfli&e ' •eflA1 t:1r 't.rtlizd111ig specill.li~ed perwnnel 

ror- ~!:4!!W war-UM etrect.1Yeoess. liaJo:r ilbrit:ht roun·1 t~ t not ooly 

"l'dtJ tbltre Yery llt.tle U' aDy t.l"ttlni.rl.t l-ei.ng OOhduCted lut ··1J.SO t.lmt all 

~r«m• in the bureau, e~~k to..r~9.l'-JWtrk~nee1Yine t.he ltast, pay, nre 

•t•\tiDG aJ.oo~ 1n yeat"l-=:;.,~~U~ef'uln11tS5 !°or poiJsii·le wartime 

"l"'f'iM,pl••"• nil uii. Moreover, the 1~-eau w1:.a no-s hi lr.ien ·~•u.)· in • 

~ 

puhlic otric. LJuil,Unc in low York (under oo·i"er ()f:' the "Code Coapil~1.t.i,..Al 

tor •ll•ged i::urpoee-a of •llO\lrit,') 1 rvl f· r ~we: :'..'roM ·iir'3c~ eupi:-r-

....... ~ 'iW VfZi trmnrner(:ffi, .... t.c.J.) i.t ...... P~ lt"" or ~t~"fi<tnen; ~_o_r~,;so-tl";t 

Yardl.4Qr 

(M•l'Nial 

d..-oted 

cod• 

s.ost 

OQ11Pilat1on, 

ot his time~ rMl eatate o or 

urolterage, 

t.hree 1-'.::-iv~ consultant t,o u1t.erpriffD.t 

1,, code 

~ 

... t.t.ars \o COlll!&rc!.u f iru Gd t.a. •~s h..~Yini a 11 f ial.d d;ty• n t Govel"'nWmt 

eaq:Sll'ute. re w~:re, o !:ICV&rn.l ottw!" welt_l:ty root.or~ whioh 

a:>Uftted Major J.lbri&ht. preparin{; A G-2 ·~~ (Tcb C) res~e<ii!IG tbPt 

tM b\u"tau b. 4M:lte• gut or ~ and its t'uQction11"'trr..n:sr&l"red(W'~tne11;1£,lll.l 

Colt•· Clhiet •-.e the.. ..... the d4a1rabll1 ty' if not n~ce&ai t:r. or pl.rteini 

.l)l '9J'?too'aph1o .a.ad ~1• work or tho lrl r Depi rt.me:nt under one .,_.,, r•thar than distriluUng it UKJrl8 three (The >dJut.nn+, G:·nei-al, for 

~. •iorttco, issue, &Ad MOOOnti.n«i ot codes; tne Chier ttigoal Ot!"i~•r, 

tor OOltp1Unc oodea aa:\ oipmreJ Vilita.ry Int..~.llit.,-.nae, f1Jr aolution ot 

oocSes f<lld oipbera). It a ..,.. on the mw~ suLJ "'Ct 'IC :; • rt.:<pr 1·c.-d by Lieut. 

Oc>le w. K. nl.taaa ot ~he Wu Plans :-ind I'rvinlr!f. ''&cth,:i of G-2 1 ·nu ie a.lao 

&\'c.aobtld hereto ('l'itb D). tbe reis.SOAs f~iven h 1 he G A' it\'•'r ·,al\ Li: QN.Qlil!l 

Wl 1115'=• 111aa»UM!ua were p~~itJ.Y d.ened valid l'lj" tht1 Oh.'..(·f of :;urr, !or 

laJor Allrlght's reo~ a ere ap,.rO"led in J..f1ril 1W9 · . .n1:i atep• wen 

9008 1D1Ua ted lJT ~ a.ad the Chio! Si{<;l18l Otf let r to rru t tuer.. in to~\• . at.ions ourried wlth thee morel;; tilw1 Wf.U:1.URri o1 et1!'.n,t:t.>s. ~~ 

05-5 1 apeoit'~i..n&~ d.u~ies or the Chier Si~~hl otrioer, ~ 

lt&ag enl.<or&;ri1~ the ~rinting, stol"&£e, 1Hstrili.1tioo.> ~n.d 

MOC>latin& of codes n~ •in tiM or •~r too int~l'O<·~ tioi.1 of" ~ radio ~Dd 

wire tra.tf'1o, t.t. toniOCMtrlc locPtion 0r enemy radio st•,tiouo, the solution 

Of 1nt.eroept.ed ene!IY ooie rind Ci}•b".:'r llOB8111£:<iSt rn.d l&l'lOr:, t.ory >'lrr~·.nset'JllO.tS 

ror the 4111Plo;r~nt r!Jlll det.vot.1.on or eeorct inks." 

7. Ji:nMYer, 'Lefortt &Di)'1;biD¥,. ooW..d oo :ton" rctn Jlif to

~~ 

11 '!rauafBr the 

uUnv •• uew ruid Tet"y diaturbin& r.ot.or entervd into the pioture.f ln 

•rob 1929 a ~ adainl1-tntion took otf'i~e, ii~ wh:eh r~. ?t.ir.-son beoa.N 

Seorat.ary of ~te. For a fn week& no "lulletin1t" froli' t.ne O'!'J- ptenalytie 

b.arNU 1n ?Jew York 1"91"9 civen hiv., i:.he in!..cntion l 1dnt tu .. '° slow• until 

hit had becoat11 suf'ticientl~ ..J:'i oriente..l in ~i,(:I .:.u+,ies of hls o!"fice to 

warrant. ~1.ni to hi& :ttten\,L:m the hi~hl.~ tieeret. ( "nd Li the, thon 

aurrent Tifft biihl.Y •un&tbie&l•) r:otivitiNl Gnt_.!· t: c<.1 in by 'lJr.r r.nd $~. te 

J)epe&r'tment.8 hy l:tE!&llS or fun:ls .vrov1,led ln ll".r{;( y· 0 rt liy trib l&ttol" Depart11eQ'\.• Early in ~AY 19:"9, bonver, thll tL..'IC wo.~ deemed ripe !or thia 

-s-

.................. __________ ~~~~--
S'f'D Ill' : AS a ~1 LUUt.I • 

•wn .. Mtl (UMrdlac to Yardley) ~ .,... wit.h llOll• trepidation ~ 

• r .. w.aalat.t.ana of Sf.pine" code ..... '" 'ft'l'9 pl.aced QD llr. stu.an•· 

'91111.. TMH ••- \o ~ n&90n to bltline t.bllt. hi• reaction •• 

..W-t a.a Illa zli.t:a dra.Uc. Opoll. l•ra1Dc ha. tr-• aa.ter1al. was ob-

\aiaet, be ebanote:r1aed ~ M\1Yit.7 aa beiJac h11bl;y UDetbioa.l u4 deelar-4 tha\ it wotll.d ..... 1,Bl!di•Mlz•., tar•• t.he Ste.t._~putmm.t wu 

•-e1'M4. to ,.t. t.M\h 1ni01ira 4M1a1CD M ~ iil•truct.f&s tbot. the 

M•llU7 tuad• ot t.be S\aw DeptrtaeAt -..t;z:l be wit.bd.rawn •\ 009\l).., 

It •• -1.J after oona1clerabl.e prunre b;r the .A. c. or s., G4 that i. 

•• d.t....W rn. t.ld.• OQIU'M1 fti.ah atcht ba•e bad 119?'101:48 ~uooea 

1lr ..-.1,. tJarowlac oa.t ot 911p~t. th. •iz peop.l.e oonoerued, at. a U. 

et .;e 900ll.Olalo chp:N..S.ca. ,_. lhoM work~r• had onlj apecial \r&\a1'DI 

1- a tiel4 1fboU7 UMlua to °' n uroial., illdlletrial 1 01.ppJ.n& or hank' ng 

ts.Pu. w \o ett.r IOY:;~~Upartunta, or to oduce.t.1onal inaU\uUana1--'" 

• ~" w• ~~ iii!i;'w close tbe ortioe l.nediat•l.7 .a tu£....~ a. ..u .. won •• eoa 1 bat. w kHp tt. pereonnel on the payroll tor 

U. U.. ...... !"). to w1ad wp attair• and c;wt the tile• in ab&pe read7 to 

tMnl nv to \1w Sipal Corpe. Thi• toot a couple or a.bntha, ii.Dd •t. ti.. 

_. ot lw 1929 \M eapl..,,..a were ti•• three 110nt.U• pq in ad!Yf! 1a 

a 1mp -. io tide \hea O'fer the period in whiah. they aipt, be jobleH. 

&lllOe t.be7 bad be9D pa14 out. ot •ocnt1dentJ.&l f'unda• they blld n.o o1'ril 

Mni•• ~-- an4 no reu.i-.u..t. benettt.•1 ao~~reeQY~~el"~~t~~ii~5~~:;t' ti .re.r t.o other oa. ~ poai t.iou ~ s 

11" w: -. ~ \'bem •• hi&~ 

on Oil pan ot a Dft otfi~ Mlt 1ilat ..... IJ :bl'pJH•HI 

ti. Mrlou pn-Mm&l lit.uatica onat.4ki ri th8m 1n the Jlid•t ot a a.nou 

MO'lo'd• ctepnsaica)lf--tlt'· he'i• ""•, &ht lead tb• w 

Wt•ll alp'JYOD8 ..... abu'ratl• \•ad eonMq•a•tJ .... ..i deteH . ' that.,~Wt"er nw , t.be d1 peraomae.i.,, u.oept 'Ule clliet b«Mtt1eiu7 ot tM 

.U ~~ r••1M4 lo,.i ad did tJHJ beat t.be7 oould to thd jobs. 

I! Ill Ootobw~ I •• ... to b,- th• Clll.et Sipal. Of'f1cer to I• ?orft 

w '-D onr ta ~ reocmt. NM tH::ea or t.he: 4e!Wlc&t BureA flld 1o 

.,,_..... tUU- tran.eportatioa tc Wa•biqi.oa.. 'Ille 6r,-pt.DaJ.,.Uo ao\1T1U.• 

r...anJa• ud JaOW beia& mder the C.biet Sipal Ottihr, .hudia\e 

fteplt •en taken • t.o reorpai•• tt» bv'Mv a.ad i\a work 1'a. 

t.da aftUHl• ery - only ~Md U. 

hr hpu'Ment'lf ot tio, or the 19)0 

•••••• ~ ruaJ.U.r ot tbe 8ta\e Departa.ent'• ahare oil '15.000 Md~ ...._ •1~,,..,. .._ I••~ hpM"'ti eat. •• 1 1 Jhah• r'be.¥e. Ja otter ot 

empl.eyalD' ne ad.a t.o llr• • lfil.,.., t.be lapanese expert with Yardley• but. 

. ' ,.-

• ... mable \o a•oept, eino4t it inYolYed l\OTing to 1'••h.ln&toA u4 ane ·-

{1), ~btr ot year• later (1941) Iardl•T told ae tJliit. he bad bMD ataiafOl'Md ·a• to Mr. S\1.uon'• a~UWd• ru:Mt tnt it wf!a rsall7 t.be Preatdeat 

(llr. ~) who •k1Ued• t.be bureau, not Mr. Stiaaon. Than~ - psaud.e tor 'bell•Tinl t.hi•• aiwl it wo\lld be ia't.ar<iat.i.Rg to know - ~t&.. 

-' .. 

f ~-~ 
lilad a m.bud ud oldld in lew York. Another employee, Jn'. Victor l'eia9-

Jl:apl' 1 lad a buaineaa in •ew York end rerused to acwe to Waahington. Tm 

r..ie cl.e~ioal employee• were d .. med un5uitablr for our purposea and, 

mreover, having no oi'f'U aanioe st&.tua, they could. not ba taken on by 

treA•fer. in ott•r or temporary employunt we.1 made 1io Yardley blR he~ 

r.f'uaed .. t,he \eAlie•. Instead, he proceeded aeeretlJ to prope.re a book which 

t'lr•t mr~!~ t.be fora of art.iclea iJa the S&turdt<y Evening Post, &nd ~ 

law ~&rln mob expanded !'om under the 1;1 t.le, •The AJnerican BlBck 

o~.·· The book and aniol.e• were highly aen15ationa1 and llll.de d.al'iagin& 

ti8Closure11 concerning the sost eecret aot.ivitien ever conducted by the 

Gcwenamen1l.. Beror9 the appearanoe or the artiales and book, bofreTer, he 

bad t.ken certain steps to protect hims.elf from poeaiele prosecution for 

hi• d1aeloaure1, UIOD& which was to resign hiri comr.iission !'!~ Major in t.be 

llilltar,.- Intelli&flnee ReaerT&. Ot course, had the authorities understood 

the reel purpooe or his resig.n.ation they might ha.ve proTent~d it 80 as to 

retain aa11e_hold on his. But being in doubt or in ignorance of hi:J real 

110t1Ttu1 and defUlinf; it Ju.st a• act or pique, tbl. re1ignation we.1 acoepted. 

!he w:atortuna.te aonsequenoe• attend.ant. upon the putilicntion of the book 

aee4 no elaboration herein. Surfice it to say r,m. t, our amicable relations 

with the British, who resented the disclosure of certain inforlMtion ohta!ned tro.·thea by Yardley ... a aOllURi&•ioned officer, were disturbed; 

mob .,re aftrioua, our preearioua relations with .T~pan were broU£ht to a 

bollJ.n&: poin~ wheD about JO•OOO copies of the J~panese translation ot The 

.&merioan Black Cbutber 1n1re sold in Tokyo in a period of leaa than a 11011th 

(pvlaaplt t.he book was subsidised by the Japanese Govorm:ient itself). The 

bad odor into which &l.l oryptanalyeta £:.nd cryptanalytic aotivit.iea t"ell,. 

&S a result of the dif!ioultieS which the pul1lioity fiTen t.he :matter °by 

tardl.e7•• dieclaeurea ooca.sioned high goT~rnaent ot!ic1als1 had a bad etfeet 

1lpol'l tbe atte11pted raorgan1ation or the crypta.na.lytic hureau by t.he Chier 

Sipal. atricer. tund• me bard to get, lmd St.ate Department support. waa 

laoldn&. it ao\ Ma '\he o'bkeP <11nct1oii lltos•~her. The aost serious conn- q119DC•• or Yardley'• d1aclosures 1 .boweTer, ca.mot.en yeus later, and their 

ett~ can ba.rdly be eati•ted. I rttff'r here to the jolt which his book 

C•Y• the 1apaneae Cl7Ptoeraphera, leadinf: the• out or their bli••tul 1.Enorane• 

and causing th• to deTelop really OOllplox aethoda which a.re nO'lf giYing WI 

80 11&917 articml.ties. The aaae is true probably as regards the German and 

It.ali&r.L cryptographers - their educstion baa heen entirely at Uncle Saa'• 

expense 3Dd the finel eonsequeuces or Yardley's work can not yet be !or•IMMID· 

'f beT .. Y well turn out to be disastroua. 

9. Wi\hout. delay, 1u indiOt'tted in the beginning or the la.st paragraph, 

the Chief Signal otficer proceeded, a• energetically as posnible under the •1rcall~tancea, to carr;,y out. tbe aiasion aa~lr;ned to hi.l!!.. The reorganised 

ood• and cipher 11<>lTing section 11'&8 placed under the War Pl~ns and Training 

Divisi011, since the code coapilation section was already there. A rather 

detailed direc~ive, which waa prepared liy G-2 and approved by the Secretarf 

ot 'lfa.r (Tab&), becue the guiding plan of the reorganized service• which 

wa.a now ns.med. the Signal Intelligence Service. Ir.s personnel,, cona1Btin& 

or m;yael.r and one or two aloru, soon •as aupented b;y a h~l!' do&en more 

... ~ _ .. 
-.pl.oye••• Training lit•reture ~nd courses in ar,.p'\.'l.n&l.yais :and crypwgrapb,J we:re prepared and put into i;OO<i usa.,..e 6t. once. A l:lre::.t :leal 1'.i& 

done in expan.iing our orjiptocrhphic work also, bj preparing reserv" ediUoa.1 or eziat1ng co·ies, ooapllint: and devising new codes : .l.d ciphci·a, 

dn8lop1ng ci~r apparatua, and ao an. Cryptanalyt.ic •ork was put. on a 

fin basis of re•euch and training, with •phasis on tne lat.trr, !!!: 

\here ex11t.ed v.o intercept; 88rY1oa and the raw ISl\1.eriKl eoulcl d.ot be 

oL't1tined. (Yardley bad been able to get. a small &mount of .material rrom 

the oal>le oompl\Jdea but tbie audroe M.d pract.ically •dried up" by 1929 

due to tear an the p®r~ or the C013pani••·> HP.nee tul intercept servioa 

.,_ W8.S orr;uized end grew •err alowi,.. ill phases of si.,:.ruu intelligence 

were ui!ied under one. serrl.ce ltl1.d tu.-n under study JJlld 11'.Cti•""ln.- Moreover, 

illportant cooperPition wi't.h the Me-.y in thr aam• t.y~.e >f wm.·~ ,,.ee ...,. 

initiated. How the aotivity bas expn.nlled since t.h, ... n 1·equirff& no col'llient 

at. th111 t.111e. Hnw.rYer, a few 1r0rde r..bout. relations "fi t.h the t~avy are 

pertifttfnt. .. 

10. Cey'pt.enal~ tio aet.ivitirs iu our Me.Yy De!"''rtm('Out wc.,.e practiaally 

non-existent 1:lllW after the close of the last wer, cturinr. which, as wae 

aot.ed s.bove,. wbat.t:ivt•r problns t.he) hl\d in C?'1pt.analyaia were referred to 

111-8. Bu\ in 1921 ~he Na.-yy• recognisinf th~ 1~portPnt role which cryptualyai• 1'1lS l1ounri tu !)lay in f"uture, began bull.ling U!J 11 lArye unit in 

tl::.e Na-.y DepartrJ~mt, with. eohelone afloat. Where&H t,h1~ AITIIY placed eapba•ia 

upon ci•llian traillia.g, the ?fa-.y I'l"ced empha.Bia upon o.rrtcer trainin&J and 

for eaah dollar the Army w1ta ablP t.o obtain ror oryptanal,--cic ~.ad ceyptocrapbie work th~ N&Yy ••a alJlu to obtain t.hree t.o riTn dollars, un"til b7 

19)9,'a& rar a;:, concerned. mv1bers or officers 'a.OJ civilinu par..>onnel en-

~ged in t.heso activities, uount o-r etiUipment 011 hPna., .. nd f'unda available 

for research• tbe ri'svy bad oonsiderabJ.y outatri:.>ved t!'l.e kr't¥!1· HOYovur, it. 

my 'be scid1 with some just.itiable pri..le ptel i;ps, tht:ft. wh.i..li:. they wttre ahell.d 

at us in qwmtit.y, we were a.bead 1.u quality, f"or l:-11 tne lmpor;:.a.at devwlopaents in "Loth ttu: cryptographic .-.11J tht cryptanalytic 1'i.-l ls rm1t be credited 

to .&rll7 personnel. At rirat., cooport1tion 1.Jet.ween the two services waa interaltt.ent and at tb1es Tery in.iiff'erent--the uaUErl ~'Utual suspicions and 

jealouaie• pena.ied our relationships. But, happil~, ~Clr the pao:tt four or 

fift )"8ar11 eooper~t.ion tl!ls lJeen wch more wholehe..irted, ~itn the result 

tWit it •Y now be said without reserve that, &s I'Ht;.hrds 1.hell" cryptobTaphic 

aJlfi crn>tuaalytio aotiT1t1ea, tfjclmical cooper1iti'lu betwE>en the b"lly' and 

lfavy in these fields is Ro clo~e a.A t.o l1u '-tV'· sft.l'•t1 ·~::1 "t.llollgil t,ney- were under 

one head. This, or course, is RS it shoul..:i be ~nrt !!LU.St. be 111 order t.o 

gain the rlesired result from such ~ctivit1es. 

ll. It would be of utmost v.qll,E' to the •ir&IUnt; of t.hJ.8 war if t.he 

Gov&rnaent were nC\W in a. posi"t.i.on to r· an the codes a.nii ciptwr~ of alJ. the 

foreign posers whose act.ions and prob& 11.La int.1..uti.ons are of int.t·reet and 

1aportanoe in our prosecution ot tne w&.r. It eouJ.j lll!Ve been in tlda 

f'ortunate position had it. elven t.o crypumalyt,ic st.uai~s the at.~~ 

-8-
REF ID:A58477 

lfote: It. seems to me No. 1 shou1d be the • 

nec'essi ty for factual knowledge of int,Pntions of potential enemies; No. ;: t.~1e protection of our own systems (now in0luieQ 

in No. 4); then 1, 2 and J. 
•") . 

; R#nJlf=·i}\sa 4.:z 1 

VlaVU'-ol • 

¥"1a!f.:i the Mt.t.r can e sumaarised Tery &ucainctl; in this stateaor.d.a Actwtl or physiutl warfare is intend:t.te11t> l)ut signel security 

wartaro,, eapeeiall.Jr oeyptaul.yt.ic warfi.re, 121 continuous. It 111 Tital 

that tbia be understood by those who t:xarcise ts:he.. conr.rol over such 

atudiea. 

12. tlaen a.re rour basic reasoru> •1\1' thla cont~W. ty in cryptanal.J1:.1o studiesvJ.a ao 1.aportant.. They will be discussed brieflyt ~ ,,-.u:tA-:.t 

{l.) It EBt. be realized that cryptanal.Jrt.ic activities have 

JM> ~ in. ciYil lite. Therefore, on th£ ovturee.k or war there 

1• no :lapuriant. 60Urce troa which trained, experienced personnel can. be 

drawn tar inediate uaetulneaa. Since skill in. crnitanrlya119 oan bardl.J'" 

\:.-e d.v-eloped in - short t,J.me and oryptflntlytic unitl! c11.pe.ble of prociuciDc 

•ll1ak reaulta can not be b:prO"f'i1Sed in a hurry, unless the?-e b a goodaised nucleue or 1mcb trained and experienced pcr~oDn.el no food crwtaaal1tic operations can be conducted in the t>c-ly !--has<>s cf a warJ t.bat 

s... jut. et tM tUt, when results can usual.11 Le obte.inE-d most eaailJ' 

au •h•u such results are extrellely importui.t. L'creoTer, it is ill the 

upper strata of Cr[ptan•lft!o brains that contin.uity in studies is most 

:blpc.lrt&nt. It ia possible, UD.d..r pre:ssure, to obtd.Jl l.a.rge llWllber• ot 

reerult.a ot hi&h intal.ligence from eolleg~R l:Uld universitiea, hut until 

tlle7 baY• h._d at lee.at. five years a.ct.ua.l experiune<" and tro.lning the7 

are whol.17 unp1 .. pared to &ttack the more difficult problems oncountertid 

in aodeJ'Jl• up-to-date secret coaaunicatione. Consider the present •Purpl. .. 

.,.tea, tor eX.&11ple. It required almost two ~~&ra of concen~r~t£d effort 

to brat down this a,ateat and it waa indeed fortunate tha.t this h&d been 

ucomplished by Se~tember ~ Ir wre had only Le(:.n u ble t.o st.c.rt t.hi• 

~ ill December l94l it would not he Te l•een possit le to rckd thoae 

••1e2aa abort ot two yeare• at.ud7, if at all, becau.sE: the probl.ea 1• eo 

clittiO'Ult to begin wit.a, aDd mreover, the Yoluae or traff ie an.Uabl.e 

tar eMl.yai• would be ao su.ll coapa.red to what it ws.s shortly l>ef'ON 

...... ber 7• l.941.. Moreover, it we did not he.Ye the two y~ar-at experieno. 

with the or.iinaey •Purple• the task of r~adint; the special "Purple .. DOW 

occaalo.tlilly aaploJ-'ed would be ext.rt::n-;el) !!lore jifficult, if it could 'Le 

done at. all bsf'ore too late to be use-fc.l. .A.~ain, our present ditriauJ.t.i•• 

wit.h Japanese mllita.r1 s:t•teaa are in large part occasio:.ed by our f'ailur• 

\o <191'0\e suff1C1a».I'; Stud, to t.b.e.se S~ Ste1'2' OYer thf: past few yee.ra; but, 

it maat be realiz~d that l.illitations on funds and per~Ol'.nel made aueb 

•tudi•a illlpoaaibl.e, beca.us e with thf ,,,;~ :i l.6.f r ur SIS fitsr aowiel tros 

1930 to 1940 it n.5 all. th.at this p~rsonucl C..lul-l do to il. .. p .. breast of 

the .Japanese diploaatic ayat..u, tor whicr, G-2 was olamoring. 

(2) Continuity in cryptanalytic studies t.J.so re4uires oontinuitT 

tn intercept work, ror without the basic rft• 111\teri~l no studies at ell. 

Mn bft conducted on aot.u~l tr11ffic 1<1nd purel,: tho't'etical studies ir.ay be 

- 9 ... 
• 

ftJr otr thlt :real targ-.t <oe~tner, no matter h.:>w :•r.ieces.1ful. Cont1nu1t7 

in 1ateroept work 111eane1 or courso, that. th<! e-1ui?m~.ot. nn..i. person,t.U or 

MM intereept. service ha•• to be rta.int.a.1.ned end t.hua, t.ht~se .1ro ~T3.il.able 

Oil the wt.break of war, tor iJDediate,, usetul work. Unl€1H cry·pt.~n&l]'tio 

stlldi•• .u-e pursued the ueed !or the maiatemmce ,,r adequate intercept 

.tat.ion.a eoon d1aappaara, ror it presently begins to look as t~u.gh the 

work done b;r t.hft intarcept personnel 11 U!!!elesa and !unJ.s r.:n:· thia aetJ.TitJ' 

are witbd:ralrn. 

(3) Continuit.7 in oryptanal,.tic atudiea is .iecoasa.ry bece..uoe 

erret•n!lY!i! it not ! at~t1a acienoe or ar\ -- it must ~rogres• aa cr,yptoa:ra-plde •cianae progre1aes. In the past. few yeare t'Te.t't. etrides have 

Dew\ :u.ct. in the latter, eepecially ao regards the d8'9'dlopnte:.at or ooaplu 

•lectr1oal. and •echanioal c:rn>tographic devices a.u:.i ma.ehinArJ". iloreovw. 

tlle C1'7P~io work done during the la3t. war has beeu puhl.ioiaed. .l• 

alll.Wied t.o aboire1 "The .&Mrioa.u Blaek. Cbellber• in pnrt1aull:!r Ua.1 exeroi.Hd 

a •id• intluenco in putting certain nations •nic:l had "befill quite baekward 

in tlle1r 91'1Ptograpb;y on their guard, oausinf, them to engage in titurUes I.ltd 

&welopt1enta i•or the iaproYeaent or their eod.e& and ciphers. The result 1• 

that tne cryptogra~hio ay1te11U1 or these natione have bdcome ~ore a.Jld l!01"tt 

dif'tioult to analyse. It ,ia apgrt.1.nt to .aote r.h~t J.J1pr<JVe'!\enti in ar.z.P\O.lr!.-

pqr u!ajlx ocm@s in aucc'?..!fil~ell ateE&a i«u·l if th~ C'Weing s_rn>?•ll!} 

O&!\ keep .\p St1tp "fii(h th&lltFs proereS3i'l"e i.Acreasee in COr.lplexity be ~an, a.a 

• be in a os1t1on to re~d the n~• s etef.\S almost ~-l fast &B tll!Y !l! 

et rito u~e. Ir there ie auah of 1t l~g in the cr:,yptanaly-sis t.he or,yptographer 18\S fa.r llheE'd for the cryptaial~st to catch U)J quiOklYJ i!l SOM 

•11.soa oatohing up beoOW!9 i.apr1t.ctieable or impossible. 

(4) 11nally /1 1 t aay be noted thti r. continuity ii1 cn-ptanal~rt.111 

studi9e brings iaprove:nents in our own oryptographie sys:-.ema and mathoda, 

without which wa .:u.y be lulled into e. false snn3e of :J<:'Ou:-i'-Y and remiD. 

bllastully ignorant or what 80116 foreign oryptanu-rtic li\lt'eau ·~ be doin& 

with ~ snppoaedly •eoret 00112wnicet.ions.. It cp..n Lt· said trw t t.ne great.et 

bl• that can be 1i .. l.:t to signal iaecurity work la lo9a pf eont.inu.iy- 1q 

~ic studieat r'or it :.o.eane that a disastrous "blow ha~ been de-

;er;dtO technicU ef f1cienc;y of ho th ~he cryptogra ~>hie and cr;ret!n•lzY! 

s;er:ricee ror war-tbie i"unct.ioning. 

13. It uy be pertinent to add that the British Gov.~rnPM!nt hog&n it.• 

cryptanalyt.1e act1.Yitie3 in 1914 and never ·1e•iated frou ~nem :or ev.m a 

90llth since then, though or cou.ratl on a aulier •oale t.:ian wa9 raohed at 

the haight. or taesa fll.Cti-.1tics in 1918-19. Howaver, it wa.a on a saale 

aut'f1cient ~o enable t~em toeep uμ with tne ~iplonstic t~afti~ of QOB~ ot 

the iOT&rnaents of any conseque:Q.ce iu thA world in "'hlch the) had an 1uteree\. The British ouilt up a corpe or about J5 to 40 ab~e aryptanal.yata, 

including .lnay , ll<i lfavy ot'rioers permanen~ aarnign•5d to cr-y μts!llJ.J.;rtia 

- 10 -
' .. -8Hfffn : ASB J,] 1 -~·- · . 

duties. They u.in.teir.f:d CIJ ptaruil.yt.ic UD.it.5 in l,01 011 1 ln.dh., l~:r.ic& 1 China, ~nd so on - the ot'ficv·rs being tran~f'OO"red !"1-0li."• oz.a ur~H ,o l\noiher 

but oonau.n.tly •t.11.Dg tu. orrpt&nal.j·tio work. 'i:'he !'esult h t.hut t.odaJt • 

•blle oar SIB hu.s eolTod and can pert.pe a.gr in 1olve !'.or~ •li!f1.cult i:id1Yidul problaa, in O"l"w:-il OOVE:r!fjfl of the field the :BritifJh organiu.-

t.iOD. is considera.hly a.head or ours. It ia clear th!tt no countr:-. 16 too 

..U for th•• to h&.Ye 11.n iutf::rs-st. in tLat eou.ntry' ~ f;.;e:r-&t. coi::.r.:uuicat.ion•,. 

•Ad th91 ere toda.7 able to read tho trnffic of micust coontrif>s on which 

they haYe had contiau.1ty ai11Ce the last war. 

J.4,.. Finall.y, if we are not to repea\ once l!iore the mist.aus gde 

at UWt close of the hat war i:u re•pect to Sit-:nal security ..-nrk, ave17 

effort 9bould be aade to place the present orgP1.r.izaUcn on t-b.G 110&t fir•• 

pera&neilt tound&tion it 1a posaiLl~ to erect. Tlie aerYic~ ihoul.1 not be 

ooaa1dered a.1 aer&l.y an appendage to the functions peri'o!"Dl.ed Ly t.he Signal 

CorptS oal,y ill ti.:e or war 'by,t, as a P!r1MU1ent. a·1rvicti that. operht~a on ! 

lv:&e soale in pu.oe-U!,! as well as in "J!f-ti•e• 

Orig1nally written 

and dated June 29, 1942. 

a1aor chaaces aade on 

April 2, 194). 

Willie~ F. Fricd?aa, 

Direo't.or vt" Coir"w.nicetion~ Research. 

- ll -

- • t . ; 

t ,.