information sent in exchange has been greatly delayed in reaching the addressees. This matter has been examined with the Bureau of Customs and other executive agencies and very substantial progress has recently been made in speeding up the operation in the Bureau of Customs. Working with the Central Intelligence Agency and the Treasury Department the Office of Strategic Information is hopeful that this is nearing a satisfactory answer and smooth-running operation. Achieveing an answer to this problem will be of great help to Government departments and industrial people who have been developing exchanges and who find the material received in exchange is of value in their work. SUMMARY Industry, in general, is alert, well aware of the strategic information problem and cooperative. Industry is not our major problem in respect to published information. Establishment of OSI brought on a nationwide flurry of editorial criticism, mainly the result of a campaign conducted by a small group fearing censorship. Such attacks have now subsided. In private many editors are in sympathy with the program and the aims of OSI. It must be expected that a small minority of editors will fail to cooperate with any voluntary program. Competition for readership may then prevent the majority from withholding strategic information. For this reason, not too much can be expected of a voluntary editorial program at this time. In addition, editors remonstrate that most of the dangerous information published has first been officially released or leaked from a Government department. This appears to be true. The matter should have immediate attention at top Government levels. The Interdepartmental Committee on Government Publications has been formed and two problems are being investigated; (1) How to prevent leakage of strategic information, and (2) aerial photography. The Interdepartmental Committee on International Exchanges has been formed and is at work on the problem of centralizing exchanges which was specifically posed in the NSC directive. There appears to be an increasing trend by the Soviet bloc nations to exchange information. One probem, the delay in processing Soviet bloc material through customs, is on the way to solution. RECOMMENDATIONS 1. Control of the release of unclassified information from certain areas can be adequately handled by the committees set up under this directive. In other areas however these committees will not have sufficient authority to exercise effective control. It is therefore recommended that action be taken at high level to prevent the unwarranted release of strategic information, both classified and unclassified, by officials and others in Government. 2. Consistency in release and classification practices among departments should be improved. 3. The NSC directive sets forth the operations of the OSI in the field of unclassified information, the release of which woud be detrimental to the security of the country. Executive Order 10501 states that information detrimental to the security of the country should be classified. These directives present an overlap and thus OSI cannot disregard the inherent problems involved in the classification of information. If the executive branch of the Government is to be consistent in what it publishes it must be consistent in its classification and more particularly its declassification procedures. Due to the apparent inconsistencies it is recommended that a complete study be made of the Government's classification and declassification system in light of present world conditions. EXHIBIT XI OFFICE OF STRATEGIC INFORMATION PROGRESS REPORT, FEBRUARY 19, 1955-JUNE 30, 1955 JULY 7, 1955. On recommendation of the National Security Council, approved by the President, Secretary Weeks established on November 1, 1954, the Office of Strategic Information within his immediate office by Departmental Order 157. The staff originally consisted of 7 employees; a director, 2 assistant directors, a staff assistant, and 3 secretaries with 1 vacancy. As of June 30, 1955, the staff consisted of only 6 employees; a consultant (director), an assistant director, a staff assistant and 3 secretaries, and it appears that due to budget limitations the Office may be unable to fill the vacancies. In addition to carrying out its functions, as assigned by Secretary Weeks, the Office serves as secretariat for the 2 interdepartmental committees and the Department's Advisory Committee on Strategic Information, and has been chairman of both interdepartmental committees, but now chairman of only 1. OSI prepared and transmitted to the National Security Council its first report concerning its progress to February 1955. IMPLEMENTATION TO JUNE 30, 1955, OF NSC * * RECOMMENDATIONS I. Implementation of *** part I: This part provides that Commerce should set up a central clearinghouse for business and industry and should also take affirmative steps to publicize the availability of a voluntary guidance program for industry. A. Industry contacts.-Since its establishment, the Office of Strategic Information has initiated a program to create a prepublication awareness by news media. Talks have been made before the American Society of Newspaper Editors, the National Industrial Advertisers Association, and a special presentation was made before the Society of Business Magazine Editors. B. Inquiries from industry.-Approximately 600 inquiries for assistance regarding the strategic information problems have been processed. C. Problem of awareness.-Perhaps the chief accomplishment by OSI to date, important but hard to pin down specifically, is the development of an increased awareness by publishers and editors on the matter of printing strategic information. Much work remains to be done in this area but at least initial steps have been started. II. Implementation of *** part II: This part provides for the establishment of an Interdepartmental Committee on Publication with the view toward furnishing guidance to executive agencies on the publication of strategic information. A. Interdepartmental Committee on Publication.-A committee representing Agriculture, Atomic Energy Commission, Central Intelligence Agency, Commerce, Defense, Health, Education, and Welfare, Justice, Interior, State, and the National Science Foundation, was established on December 21, 1954. The committee has held six monthly meetings. B. Prepublication awareness.-Prepublication awareness to the printing of strategic Government information has been developed. C. Uniformity.-Efforts have been directed toward bringing uniformity throughout the Government to the problem of publishing information which would harm our defense efforts. Example: Uniformity has been established on the method of handling Publication Board reports by Commerce and the Library of Congress. D. Experimental balance sheet for strategic information. This check list is a guide for people to use in deciding whether, in net balance, publication of information will help or harm the defense interests of the United States. One of the Army units is testing it on an experimental basis. E. Synopsis of contracts awards.—A study is underway to change the armed services procurement regulations to eliminate strategic information from the synopsis of contract awards. F. List of agents.-Preparation of a list of official representatives and registered agents of the U. S. S. R. and Soviet bloc countries was considered. This list was to be used by Government and business firms to check against in filling requests for strategic data. After much consideration it was decided it would be unwise to prepare such a list, since it would be difficult to keep it current due to frequent changes and may give a false sense of security. G. Task Force on Aerial Photography. This task force was established to study the problems of publishing and disseminating aerial photographs. It has recommended a specific educational program throughout Government and industry to alert producers and users of the strategic intelligence value of aerial photographs. A meeting was held on June 30 with representatives of the aerial photography industry. The industry supported the views and plans of OSI and voluntarily agreed to carry out an educational program within their industry and among their customers. They also offered to establish a self-policing policy among themselves. III. Implementation of * * part III: This part provides for the establishment of an Interdepartmental Committee on International Exchanges and also provides that OSI should take affirmative steps to set up a posititve exchange program for executive branch agencies so that a net advantage would accrue to the United States, particularly in the exchange of technical publications with the Soviet bloc countries. A. Interdepartmental Committee on International Exchanges.-A committee representing Defense, Commerce, Interior, Agriculture, State, Library of Congress, Atomic Energy Commission Central Intelligence Agency, National Science Foundation, Post Office, Smithsonian Institution, and the Treasury Department was established on February 8, 1955. The committee has held five monthly meetings. B. Bureau of Customs backlog.—The large backlog of printed material from Soviet bloc countries awaiting screening for propaganda content, under the Foreign Agents Registration Act of 1940, has been eliminated. Result is speedier delivery of authorized material. C. Delivery of Soviet bloc publications.-The Post Office Department's position in delivering Soviet bloc publications suspected of containing foreign political propaganda has been clarified. Educational and research institutions and others having a justifiable interest are being permitted to receive such material through the mails. D. Secretariat to coordinate exchanges.-Steps are being taken to establish a working secretariat to coordinate the international exchange of technical government and industry information with Soviet bloc countries. Object is to insure uniformity and a net advantage to the United States. F. Industry and scientific advisory group.-The desirability of setting up a joint Government, industry, and university group to study the overall problem of exchange with Iron Curtain countries, especially methods of evaluating material received in return is being considered. F. Export of unpublished technical data.-Scientific groups throughout the country were apprehensive about the implications of the export control of technical data, especially as it related to scientific correspondence, international meetings, and the foreign students in academic institutions and laboratories. To clarify this problem the Office of Strategic Information consulted with scientific groups, both within and outside of Government, and the Bureau of Foreign Commerce. As a result of these consultations OSI recommended an amendment to the current Export Control Bulletin controlling technical data (tab number 3). This recommendation was adopted and the export bulletin has been amended. G. Action of special cases.-Action was taken on several individual cases where exchanges of particular pieces of technical data with Soviet bloc countries were involved. The following is an outline of the program which the Office of Strategic Information plans to develop in the future: I. Further implementation of * ** part I: A. Voluntary program and central clearing house.--On this particular problem OSI plans to maintain its existing facilities and to be available to help industry in problems in this area. The main concentration of effort in the immediate future however will be directed toward further implementation. II. Further implementation of * * * part II: A. Aerial photography, maps, and charts.-Upon completion of the present program of the Task Force on Aerial Photography, which will include final recommendations to both Government and private industry, it is intended to have a similar task group study the problem on maps and charts. B. Government publications.-A study is planned on what unclassified Government publications contain strategic information. OSI plans to work toward bringing consistency in Government publications as to their contents and release. A study is underway on one phase of this problem; i. e., the release of purely military information to both foreign and domestic requestors. C. Weapons advertisements. It is planned to complete a study, presently underway, concerning weapons advertisements which contain strategic information. A task group of the Interdepartmental Committee on Publication has already been appointed to work with the National Security Industrial Association on this problem. III. Further implementation of *** part III: A. Central point.-It is planned to strengthen our exchange program by designating OSI as a central point in an executive branch of the Government to which exchange problems can be channeled. B. Present exchange policies.—A complete analysis of existing exchange policies and procedures will be made with a view toward improving benefits potentially available to the United States. Close liaison with the State Department will be maintained to assure proper relations with foreign countries. C. Working group. In carrying out this objective the Interdepartmental Committee on International Exchanges has recommended the establishment of a working group which would handle the day-to-day problems involved in this program. If this is properly pursued it could be the most important operation of the whole program. UNITED STATES DEPARTMENT OF COMMERCE, OFFICE OF THE SECRETARY G-578. The Commerce Department acted today to amend its regulation governing the export of unpublished technical data to exclude general scientific and educational activities from licensing controls. The action was taken following consultations with scientific organizations, private and governmental. The proposed amendment, which becomes effective when published in the Federal Register, excludes from validated licensing requirements the following categories of technical data: (1) The dissemination of scientific information not directly and significantly related to design, production, and utilization in industrial processes. Information thus exempted, includes correspondence and attendance at or participation in meetings. (2) Instruction in academic institutions and academic laboratories. The regulation, issued December 16, 1954, and effective January 15, 1955, is administered by the Department's Bureau of Foreign Commerce. It is intended to prevent the acquisition by unfriendly countries of applied technology and industrial know-how of strategic significance. There are no validated licenses required for the export of published technical data; these may be shipped under general license to any destination in the world. The regulation also provides for voluntary consultation by industry with the Bureau of Foreign Commerce for advice on unpublished technical data of significance to the common security and defense, especially where the technical data is concerned with (1) advanced developments, technology, and production know-how; (2) prototypes, and (3) special installations. To preserve free dissemination of basic information and to help protect the Nation from leaks which inform unfriendly nations about developments of strategic importance in the United States, the Department's Office of Strategic Information is encouraging the exercise of balanced judgment and alerting members of scientific and technical societies to the possible strategic importance of certain types of technical data prior to publication. EXHIBIT XII OFFICE OF STRATEGIC INFORMATION PROGRESS REPORT, JUNE 30, 1955-FEBRUARY 29, 1956 A. INTRODUCTION The National Security Council *** directed the Department of Commerce to assume certain specific responsibilities in the field of nonclassified, scientific, technical, industrial and economic (nonstatistical) information. Pursuant to such directive, the Secretary of Commerce set up within his immediate office, an Office of Strategic Information and established two interagency committees, an Interdepartmental Advisory Committee on Publications and an Interdepartmental Advisory Committee on International Exchanges. B. ORGANIZATION AND FUNCTIONS 1. Under the NSC directive, the Secretary of Commerce has the responsibility to: (a) provide a central clearinghouse to which business and industry may look for guidance on a voluntary basis in considering the public release of nonclassified information which might be prejudicial to the defense interests of the United States. (b) furnish guidance to Executive agencies on the publication of nonclassified information which might be prejudicial to the defense interests of the United States and to establish an Interdepartmental Advisory Committee in connection therewith; (e) develop and coordinate uniform policies on the international exchange of nonclassified information and to establish an Interdepartmental Advisory Committee in connection therewith. 2. The Office of Strategic Information has been designated as the clearinghouse for business and industry, mentioned in (a) above. Also, the Office, with the advice of the two interdepartmental Advisory Committees, is responsible for furnishing guidance to Executive Agencies on the publication of nonclassified information and for developing and coordinating uniform policies on the international exchange of nonclassified information (par. (b) and (c) above. 3. The Office is composed of a director and 3 staff assistants. The director serves as chairman of the two interdepartmental committees. The office also perfoms the necessary staff work for each committee and furnishes secretariat services. 4. The Interdepartmental Advisory Committee on Publications serves as an advisory body in developing uniform policies for the executive agencies on the publication of nonclassified information by such agencies. It comprises representatives of Agriculture, AEC, CIA, Commerce, Defense, HEW, Interior, Justice, National Science Foundation, State, USIA. The committee has held 8 meetings from June 30, 1955 to February 29, 1956. 5. The Interdepartmental Advisory Committee on International Exchanges serves in an advisory capacity in developing and coordinating uniform policies to be followed by Executive agencies in exchanging unclassified information with foreign countries particularly those in the Soviet bloc. It comprises representatives of Agriculture, AEC, CIA, Commerce, Defense, HEW, Interior, ICA, Library of Congress, NFS, Post Office, Smithsonian Institute, State, Treasury, and USIA. The Committee has held 9 meetings from June 30, 1955, to February 29, 1956. C. GENERAL RESPONSIBILITIES In general, the problem which the office and its advisory committees face is that of balancing the need for promoting and increasing the flow of nonclassifiled information against the fact that indiscriminate publication or distribution may be prejudicial to the defense interests of the United States. The difficulties inherent in resolving the problem are readily apparent. It is a well recognized fact that any intelligence community can gather vital strategic information from bits and pieces of ordinary unclassified information. Industry and the public, in general, are quick to point out information contained in a Government publication, or in advertising or news releases, which they believe is inimical to our defense interests. On the other hand, action taken by 69222-56-pt. 6-86 |