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Hon. CHARLES E. WILSON,

EXHIBIT IX

JULY 25, 1956.

Secretary of Defense, Department of Defense,

The Pentagon, Washington, D. C.

MY DEAR MR. SECRETARY: During a hearing of the House Government Information Subcommittee on April 19, 1956, with representatives of the Office of Strategic Information of the Department of Commerce, Industrial Security Letter 54-6, dated December 27, 1954, was made part of the record.

This same letter also was made part of the subcommittee's record during a hearing with Defense Department witnesses on July 10, 1956.

Following the OSI hearing, Mr. Erwin Seago, Director of the Office of Strategic Information, asked that this document and others, which had been submitted, be removed from the record. He said he had received this advice from the Department of State. Assistant Secretary of State Robert C. Hill has writen me, however, that the State Department has no views on the advisability of removing Industrial Security Letter 54-6 from the subcommittee's public record. He stated the Department of Defense has the "primary responsibility" in this instance. I wish to know whether the Defense Department wishes this particular document removed from the subcommittee's record. If so, I wish to know the full and complete reasons for removal. As with other items of information on which restrictions are placed the burden of proof to justify the restrictions is upon the agency or individual withholding the information. Sincerely,

Hon. JOHN E. Moss,

JOHN E. Moss, Chairman.

ASSISTANT SECRETARY OF DEFENSE,
Washington, D. C., August 15, 1956.

Chairman, Government Information Subcommittee of the Committee on
Government Operations, House of Representatives.

DEAR MR. CHAIRMAN: Your letter dated July 25, 1956, addressed to Secretary Wilson, regarding the Industrial Security Letter 54-6, has been referred to me. Upon investigating this matter, we find no reason why this document should be removed from the subcommittee's record.

Sincerely yours,

ROBERT TRIPP ROSS.

[Industrial Security Letter No. 54-6, December 27, 1954]

INDUSTRIAL SECURITY DIVISION,
OFFICE OF THE SECRETARY OF DEFENSE,

Washington, D. C.

WHILE THIS DOCUMENT IS UNCLASSIFIED, IT IS FOR USE ONLY IN INDUSTRY AND NOT FOR PUBLIC RELEASE

Official representatives of Soviet bloc missions in the United States are active throughout the country in attempting to obtain various types of unclassified information which have military intelligence value.

Among the types of information being sought are industrial brochures and catalogs, production charts, blueprints and layouts, technical and research reports, aerial photographs of plants, etc. The Department of Defense recognizes that at this time much of this type of material is unclassified.

It is desirable, however, to withhold this information so far as possible from these particular individuals who have frequently used subterfuges or have otherwise failed to identify themselves properly as officials of Soviet bloc countries. Such deceptions have also appeared in written requests for industrial data.

Because it is desirable to withhold certain industrial information from these individuals, it is suggested that, if you receive such a request, you at once seek the guidance of the Office of Strategic Information, room 7844, United States Department of Commerce, Washington 25, D. C. However, those industries and facilities which are engaged in defense contract work should seek guidance from their military security representative.

This notice is concerned exclusively with unclassified information. The safeguarding of classified information is governed by the Armed Forces Industrial Security Manual.

You may receive a notice similar to this from the Atomic Energy Commission, if you happen to be one of the Commission's prime or subcontractors.

EXHIBIT X

ROBERT B. ANDERSON, Acting Secretary of Defense.

Following correspondence between Congressman John E. Moss, chairman of the Special Subcommittee on Government Information, and Congressman George H. Mahon, chairman of the Subcommittee on Department of Defense Appropriations, the Appropriations Subcommittee took special notice of certain Defense Department restrictions on information. Some executive agency officials had quoted, as justification for restricting information, the following language from Report No. 493, 84th Congress, 1st session, on the Defense Department appropriation bill for fiscal year 1955-56:

"TITLE I

"OFFICE OF THE SECRETARY OF DEFENSE

"Salaries and Expenses.-The budget estimate of $12,250,000 is approved in the amount of $12,000,000, a reduction of $250,000. Although the current rate of obligation on an annual basis exceeds by a very small margin the amount recommended, it is believed that the general leveling off of total appropriations for defense should reduce somewhat the activities in the Office of the Secretary. "Office of Public Information. The bill includes $400,000 for this activity, a reduction of $100,000 below both the estimate and the current appropriation. Since all press releases channel from the Services to the Press Branch of the Office of Public Information, the recent request of the Secretary looking toward a reduction in public information personnel of the Services should result in lesser requirements of the central office. Furthermore, the rate of obligation necessary to even carry out the current program is approximately $420,000 annually. The committee was concerned over the inadequacy of control by this Office of informational activities throughout the Department which, it would seem, should be one of the principal responsibilities of a central office. Another criticism is the rather comprehensive interpretation which has been placed by the Office on what constitutes public relations and public information activities. The Office, it would seem, should concentrate on the broader aspects of keeping the country informed of the Department's activities while at the same time providing and enforcing strict rules for the guarding of our military secrets. Too much information has been released which is of no benefit to the American public but which is of tremendous value to our opponents.” [Italics added.]

Report No. 2104, 84th Congress, 2d session, on the Defense Department appropriation bill for fiscal year 1956-57 contained the following language:

"TITLE I

"OFFICE OF THE SECRETARY OF DEFENSE

"Salaries and Expenses.-The budget estimate of $14,500,000 is approved in the full amount. Of the allowed increase of $1,481,000 over the amount appropriated for 1956 approximately $750,000 is to cover the cost of civilian pay increases authorized by Public Law 94, 84th Congress. Other major changes from 1956 involve a decrease of $1,203,100 for supply and logistics due to completion of cataloging development, and a requested increase of $2,206,400 for the expansion and improvement of capabilities for scientific evaluation of weapons and weapons systems. A request of $349,400 was made for engineering, research, and management studies in the Office of the Secretary of Defense and for establishing criteria and standards for use in the military-construction programs and development of other management tools. The committee is of the belief that usual and inevitable delays in the formalization of contracts to cover the above two activities should result in savings adequate to provide for additional personnel and other items in the Office of Special Assistant for

Guided Missiles, the costs of which were not determined in time to be budgeted. While it is indicated that a reduction of 240 civilian personnel will be effected in this Office during next fiscal year the employees will actually be transferred to the military departments in connection with the conversion of the Federal cataloging program.

"The matter of business enterprises in the Pentagon was discussed at some length during the hearings. The committee is left with the impression that adequate consideration has not been given in the past to the fostering of competition in order that employees may be given some opportunity, no matter how limited, for choice as to service and merchandise. No one establishment should be permitted to have a monopoly on the merchandise it sells. It is felt that two or more smaller establishments in each type business would best serve the large Pentagon community. No establishment should be permitted to extend the variety of its merchandise beyond those on the basis of which the concession was originally granted, thereby tending to freeze out competing enterprises. Contemplated additional concessions should be well publicized and awarded, not necessarily to the one offering the highest percentage as rental which could possibly be passed on to the consumer, but to the one with proven ability to dispense quality merchandise and service at competitive cost. "Office of Public Affairs.-The bill includes the budget estimate, $450,000, for this activity. This is substantially the same amount provided for the current fiscal year when costs of salary increases are included. The committee wishes to reiterate the concern expressed last year over the continued leaks and premature disclosures of our military secrets. While the public is entitled to be informed in general terms of our military posture and relative strength, it is not desirous of attaining this information at the expense of jeopardizing national security. It would seem to the committee that more drastic administrative action of some sort is in order. The committee trusts that the language in this paragraph will not be used by the Department of Defense or other Government agencies as a reason for withholding legitimate information from the press and public, nor should this paragraph be used as a coverup for inefficiencies and weaknesses of administration. [Italics added.]

"Another matter of some concern to the committee is the manner in which documents submitted to it are classified. In many instances an entire document or report consisting of many pages is found to be classified because of a single sentence or single figure. It is requested that in the future all documents presented to the committee bear proper notations as to which portions are classified and the nature of classification so that members may feel free to utilize the unclassified portions."

On May 9, 1956 Congressman Moss wrote Congressman Mahon :

"As chairman of the House Government Information Subcommittee, I am well pleased with the language on withholding information which you incorporated in your report on the Defense Department appropriations bill. I think that the revised wording will serve notice on all departments that they cannot use the language in last year's report to evade giving out legitimate information.

"The House Government Information Subcommittee concurs thoroughly in the wording of your report, on page 15 concerning the Office of Public Affairs, in which you express concern over 'continued leaks and premature disclosures of our military secrets.'

"No member of this subcommittee would want to reveal the secrets of the Military Establishment in matters applying to weapons and weapon development. I, too, believe the Defense Department should take 'more drastic administrative action' to prevent leaks that may endanger our national security.

"From the viewpoint of the work done so far by the House Government Information Subcommittee, possibly one of the more important comments in the report is the sentence stating:

"The committee trusts that the language in this paragraph will not be used by the Department of Defense or other Government agencies as a reason for withholding legitimate information from the press and public, nor should this paragraph be used as a coverup for inefficiencies and weaknesses of administration'."

"This statement will, I am sure, prevent Government officials from misusing the House Appropriations Committee's expression of concern over premature disclosure of military secrets."

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