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Senator INoUYE. But prior to the introduction these items were deleted so the House bill as introduced did not include these two items? Mr. SHERIDAN. That is correct, Mr. Chairman. --- - Senator INoUYE. By way of further clarification, this $50 million is in no way related to the hundred million dollar supplementary reuest? Q Mr. SHERIDAN. It is directly related. It is supplemental to it. It complements it. It is not in the $700 million, but it would be used for the same purposes. Senator INoUYE. But not in the southeast Asian area? Mr. SHERIDAN. That is where we would probably use it, in the Southeast Asian area. Senator INoUYE. This $50 million? Mr. SHERIDAN. That is right. Senator SALTONSTALL. Mr. Sheridan, let me ask you this: There was occasion when we heard the $700 million that it was hoped that there would be no additional requests made in the 1966 budget because of the $700 million that we have already appropriated in the fiscal year 1965 budget. Now this item of $50 million is really a new item, a new authorization which you are going to ask for $50 million of funding, and that is prior to the $700 million request. Mr. SHERIDAN. When the $700 million request was made, the Secretary considered the $50 million which had been previously requested. so SALTONSTALL. Ithink I understand now. Thank you, Mr. Chairman. Senator INoUYE. Mr. Sheridan, by way of further clarification, am I correct in this assumption: That in requesting the $700 million suplementary appropriation, this included a hundred million dollars or construction? Mr. SHERIDAN. An actual amount was not identified. Senator INoUYE. But actually, you needed $200 million. This would make up $50 million Mr. SHERIDAN. I think we are getting into a classified area now, Mr. Chairman, if I may, I think we are getting into classified information in identifying the amount. When we go into executive session, I will be glad to clarify that, sir. - Senator INoUYE. Senator Saltonstall, do you have further questions? Senator SALTONSTALL. No, I do not think I have further questions, Mr. Chairman. Senator INoUYE. Is the Intelligence Center at Arlington part of the classified? Mr. SHERIDAN. Yes, sir. The remaining subject in title IV that is unclassified is section 402 for the Advanced Research Projects Agency. Senator INoUYE. Mr. Sheridan, may we proceed where you left off? Mr. SHERIDAN. Yes, Mr. Chairman. Dr. Robert Sproull will be the witness. He is Director of the Advanced Research Projects Agency. Senator INoUYE. Doctor, please proceed. We are very happy to have you with us. Dr. SPROULL. Thank you, Mr. Chairman.

With your permission I would like to have the statement read into the record and I would like to give the principal points of it in order to Save time.

Senator INOUYE. Without objection, it is so ordered.
(The prepared statement of Dr. Sproull follows:)

Statement of Dr. R. L. Sproull, Director, Advanced Research Projects Agency

Mr. Chairman and members of the committee, the Advanced Research Projects Agency is requesting authority to transfer up to $20 million from the R.D.T. & E. Defense agencies appropriation to the military construction appropriation. There is a critical need for this authorization if we are to continue to carry out assigned advanced research projects on a quick-response basis. To place our request in the proper perspective, let me briefly review our history. ARPA was established by the Secretary of Defense in February 1958 as a quickreaction research operating agency within the Office of the Secretary of Defense. In part, the organization was created in response to the urgent needs for centralized management of selected high military priority research projects that are not Specifically identified with a given weapons system or definite military mission. Today ARPA’s project assignments include ballistic missile defense, nuclear . test detection, remote area conflict, materials sciences, information processing techniques, advanced sensors, and behavioral sciences. By the Very nature of our project assignments from the Secretary of Defense Or the Director of Defense Research and Engineering, we cannot foretell construction requirements sufficiently far in advance to prepare individual “line item” construction authorization and appropriation requests on an annual budget Cycle basis. For this reason, we must ask for construction authorization based On Our best estimates to carry out the urgent research without delay or interruption. Without such authority, delays of more than a year would have been incurred in DOD's priority research in such areas as ARPA’s field measurements of ballistic reentry Vehicles and penetration devices for missile defense, and in the determination and development of improved capabilities to detect and identify underground and high-altitude nuclear tests. In each of our construction projects to date, we did not know of the construction requirement at the time we initiated the program or at the time of the DOD submission of congressional authorization request for the year in which construction was begun. The same situation pertains today. Out of a total transfer authority of $93.5 million authorized since 1958, we have remaining transfer authority in the amount of $631,000. Whether this is sufficient to carry us through this current fiscal year is problematical. Our research programs for ballistic missile defense and nuclear test detection create the major facility requirements now. At this point in time, we know of one general requirement for future facility needs. In January of this year, a requirement for a UHF-VHF radar developed in connection with our major reentry measurements research program being conducted On the Kwajalein Atoll. Contracts for the radar instrumentation will be awarded this spring. Construction must be started this summer in Order to meet the radar delivery date. Studies are now underway of designs and costs; construction may total as much as $10 million. Without construction authority, we may be required to Store the radar instrumentation for a year, and more importantly, we would not be able to make desired observations of the programed U.S. missile flights. It should be noted that our request for construction authority is not matched by an equivalent request for construction appropriation. The authority we are requesting is to transfer the funds from our R.D.T. & E. defense agencies appropriation to the military construction appropriation as required to build facilities in support of our research projects. Assistant Secretary of Defense (Installation and Logistics), Secretary of Defense, and Bureau of the Budget approvals need to be obtained for each ARPA construction project before funds are transferred for the start of actual construction.

Dr. SPROULL. I am addressing myself to the request in section 402 for $20 million of authority for military construction required for advanced research projects. This is the third such request that has come before you. The earlier requests were several years ago.

We have been operating in the Advanced Research Projects Agency with authority of this kind practically since the Agency was founded in 1958. - The nature of our work is such that we have projects assigned to us by the Secretary of Defense or the Director of Defense Research and Engineering. These projects take on different character in different years, and the research and development work that we do is fast moving and fast changing. Within the last year we stopped one program on propellant chemistry and will start another program called advanced sensors, so that by the very nature of our work we are unable to prepare line item construction requests well in advance. The real question, I believe, is the question of our stewardship of this authority in times past. This is not addressed in the statement in specifics. I should be happy to go into that, but I think the most interesting parts of it I would have to go into in a closed session. Also, the one topic or the one immediate task ahead of us, and the onlv one that we now know that we would use construction transfer authority for immediately is a task, and a very interesting one, that I should be happy to explain to you in a closed session. Senator INouye. Thank you, sir. Doctor, as noted earlier, this is one of those items submitted by OSD and deleted by the House. Did the House give a reason for its action? Dr. Sproull. I am not aware of it. Perhaps Mr. Sheridan knows why it was removed from the bill. Mr. SHERIDAN. It was under the general premise that the committee felt there was too much authority vested in the Secretary of Defense. Senator INot YE. Can you, Doctor, give us a brief rundown of how much construction authority has been granted this Agency in the past? Dr. SPROULL. Yes. The total from the time the Agency was created was $93,545,000 and, of this, $631,000 remains in transfer authority. Senator INoUYE. And I note here that you are not asking that this authority be funded? Dr. SPROULL. That is correct. Senator INoUYE. Where do the funds for this construction appear? Dr. SPROULL. They appear in the appropriation “Research, development, test, and engineering, Defense agencies.” It is our ordinary R.D.T. & E. appropriation for the Advanced Research Projects Agency each year. This request is not matched by and not to be accompanied by a request for funds for the military construction. Senator INoUYE. Why is it that so much of your authority is still not in inventory? Dr. SPROULL. Well, this $93 million that I mentioned began in 1959. In the early days of the Advanced Research Projects Agency, I believe you recall we were involved with the large space projects, and there was a great deal of construction involved with them. Of the projects that we now have that have used this authority in the past, practically all of the authority has been used for the ballistic missile defense project, Project DEFENDER, and the nuclear test detection project, Project VELA. We used nearly $24 million of this $93 million for the facilities of Project PRESS, the Pacific reentry experiments at Kwajalein.

Senator INoUYE. Please proceed. Dr. SPROULL. That is a capsule, I think. The biggest single items were the early space items, and then nearly $24 . for Project PRESS. The remaining items were other items in Project DEFENDER, including the large radio telescope at Puerto Rico, including the optical station now being constructed on Mount Haleakala on Maui and including a number of other items that I would be glad to go into in a closed session. Senator INoUYE. We note that your activity is a fast moving, everchanging one with technological advances. Dr. SPROULL. Yes, sir. Senator INOUYE. I believe the committee would like to know what happens to those facilities that are possibly vacated when projects are changed. Dr. SPROULL. Again I can give a general answer to that, I believe, in the open session. In the first place, as I mentioned, a large proportion of the $93 million has gone into the space-associated facilities. These are such things as tracking stations throughout the world now being used by not only the Department of Defense, but I believe some of them are used jointly with the National Aeronautics and Space Agency. The remaining sum is for projects that ARPA still has, such as the Project PRESS facilities on Roi-Namur Island in the Kwajalein Atoll, and are still being used completely. The construction part, as you I am sure realize, tends to be frozen. For example, we have as part of PRESS I believe one of the most, and I hope the most, capable radar in the world. The radar keeps being modified year after year. The base and the power station and things that support it, which is what the military construction funds were used for, do not have to be changed each time the radar is changed. When we do need a new radar, however, then we need new military construction authority. Senator INoUYE. Thank you very much. Senator Saltonstall? Seantor SALTONSTALL. Mr. Chairman, I have no questions on this. Senator INOUYE. Do you have any further statement? Dr. SPROULL. No, sir; but I am at your disposal for questions. Senator INOUYE. Thank you very much, Doctor. I appreciate your testimony.

DEFENSE INTELLIGENCE AGENCY

Mr. SHERIDAN. The next project, Mr. Chairman, with your permission, is the Defense Intelligence Agency in Arlington Hall Station, $17.9 million.

Senator INoUYE. These are classified, sir?

Mr. SHERIDAN. This will be classified.

Senator INOUYE. The room will be cleared of all unauthorized perSOI)S.

Whereupon, at 11:05 a.m., the committee went into secret session after which, at 11:40 a.m., the open hearing was resumed.

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STATEMENT BY LT. GEN. GORDON A. BLAKE, DIRECTOR, NATIONAL SECURITY AGENCY

General BLAKE. Mr. Chairman and members of the committee, the National Security Agency military construction program for fiscal year 1966, as contained in the program documents now before you, consists of two line items, for a total amount of $6,075,000. One of these line items is contained in the unclassified volume (vol. I, p. 27) and one is contained in the classified volume (vol.II, p. 54).

I should like now to discuss each of the two line items comprising the construction program of $6,075,000, beginning with the unclas

sified item.
FORT MEADE, MD.

The first item is for minor modifications and alterations in NSA operational facilities at Fort Meade, Md., for an estimated amount of $375,000. This line item will provide funds to: (a) Accomplish the minor modifications and alterations which are made necessary by the shortage of operational space available to NSA, as well as those building and utility adjustments which are incidental to the installation of new electronic data manipulators and processing systems currently under procurement and scheduled for delivery in fiscal year 1966. (b) Accomplish the minor modifications and alterations necessary to provide NSA with the flexibility demanded by frequent changes in missions and requirements resulting from world political and military developments. (c) Rehabilitate and expand the existing industrial-type dispensary to make it compatible with current and approved programed personnel strength of the Agency. The second project provides a new facility to house the Communications Security (Comsec) Organization of the National Security Agency in the NSA complex at Fort Meade. The Communications Security Organization provides the secure communications systems used throughout the U.S. Government. This organization is currently housed in 10 separate buildings at 3 widely separated locations; that is, Navy Security Station, Washington, D.C., Vint Hill Farms Station, Warrenton, Va., and Fort Holabird, Baltimore, Md. The inefficiencies resulting from the separation of closely related operations are further complicated by the security hazard inherent in conveying classified materials in finished and semifinished state between buildings and between sites. The majority of the space required by the Communications Security Organization is for manufacturing and electronic engineering operations. The spaces currently occupied were generally intended for of. fice use. Consequently, the efficiencies normally attributable to good roduction layouts are impossible because of low ceiling heights, inadequate floor loading, multiple floors and inadequate elevators. In order to eliminate these inadequacies, the Agency proposes to erect a building of 262,000 square feet (gross) at a cost of $5,700,000. The facility would be specifically designed for communications security operations. In order to minimize construction costs it is planned

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