- 1 1 1 1 1 ' - Mi B M1 J A w Mr T I The Attorney Director General 4 22 76 AL E - -- - Y T TliED li - f ' i - i ' l LD FBI 0 DR ZALIIARIIORDECAlSHAPIRO ATO IIIC EHDGY Cl' '- you have been previously advised Senator Howard Baker of the Joint Comaittee on Atoaic Energy ond of the Committ or George llurph7 Executive Director were orally briefed on Karch 19 1976 in regard to ih FBI inveatigation ioto the activities of Shapiro and 1 J Nuclear Material Equipaent Corporation Htm Er an At i Energy Comaisaion subcontractor in Apollo PeD llllylv a As ' ' By letter dated April 9 1976 llr llurpbJ' requested the FBI furnish the Joint COllllittee any and all d Ullents to Shapiro and other indiYiduals associaJed with relating the possible diversion of special nuclear aateriaA froa the ar Murpiy indicated United States to a foreign governaent these files should include but not be limited to information allegedl1ntelligence activity concerning Shapiro or any of U on his associa'iea or acquaintances Who could be involYed in intelligenc fOr diversion of UC ear material activities OD bebalf f a foreign governmen On April 19 1976 llr llurpby orally requNted the Woraation be submitted immediately ar llurphy was advtae r - -that the FBI could furnish him with a meaorandum concern ng Shapiro but that the release of copies of file docuaen would have to be approved by the A _ ttorney General abo'ft o ot ' ' 1 7 ' _ REC-ai J- o- o p t O t dm Oep AO Inv _ Asst i 0 1 ---- RIQd j dpr lO Ad m n Comp Syst Ext All o o _ ' -- - 1 J ' S- ET Plo n Evol _ S c Inv _ o Tr o ift ln g - - Leool Coun Tel ep h one Rm _ 0 1 ecto Sec'y - I ' i - ' I ' I SEE NOTE PAGE 3 li I ssified 5019 xempt from -ijate of Dec o o11 ' j JP 6 n' lnt o ll Lo bo ot o y _ t s I i 1 _ 10 va tegory fication y 3 2 Indefinite ' ' ' MAIL ROOM J TELETYP E UNIT CJ EXBHPTED FROM AUTOID TIC DECLA SSIFI CATIOH GPO 101 o 569-92o AUTHORITY DERIVED FROU FBI A UTOUATI C Dl CLA SS IFI CATIOH GUIDE-' EXEMPTI ON CODE 25X l 6 DATE 1 0 -15-2008 The Attorney General ConBequently the attached memorandua and copies of pertinent file doouaents are being submitted to you tor review and determination concerning the releaee of this meaorandum and pertinent documento to George Murphy of tlw Joint Comaitt on Atomic Energy Thia Bureau euggeeto you forward the attached memorandum to Mr Murphy but we are concerned about releaeing copioo of inveatigative file doc lllenta to the Joint Committee Thia releaoo of our documento hall not that if done in been done 'in the paat and it 1o believed a precedent The only this inatance it will eatabliah exceptionB to thie have been the documents provided the Committees Senate and House Intelligence It is noted that the request tor file copies of FBI documents were not received from the Chairman or from Dlembers of the Joint Committee but from George Murphy the Executive Director for the info atton of the Attorney General the attached documentel S I ___ _________________ o Enclosures 1 Tho Deputy Attorney General 1 - Asaiatant Attorney General Office of Legialative Affaira Encloaure Enclosure _ bl -- -- - - - - --- The Attorney General NOTE bl S an FBI -- onsequently er requests were orally of Shapiro and NUMEU Senator briefed Baker of the C Mr Murphy therefore has requested copies of FBI file documents be furnished to the Committee The Legal Counsel Division on 4 19 76 advised Mr Murphy that a LHMconcerning this material would be furnished to him but the release of copies of file documents _ would have to be approved by the Attorney General The attached memorandum and pertinent file documents are therefore being furnished the Attorney General for his review and appropriate action in accordance with instructions of the Legal Counsel Division as set forth in their memorandum to Mr J B Adams dated 4 19 76 l f J Gen e ral Assistant 01' The original Of th e LI-H is be in fr f urnished with copies to the Deput y Attorney General ve Affairs Attorne y General-Le islati I II i fC I 1' PPROVEO Comp 6 st ooo- Assoc Dir Oep AD Adm p t Plnrep Asst Dir Ext i ffa rs Ger 1 w Adm -- - 1' Iont l11 r u i8 a '- - t he Attorne and th e y Laboratory _7- l e g al Coun ' o Pion Eval aec M m t i ac lnv w a u oo i f _ Jntell o Jr air 1ng u r l bl I BXEHPTED FROH AUTOMATI C DECLASSIF IC ATI OM AUTHORI TY DERIVE D FROH FBI AUTOH TIC DECLASS IFI CATION GUI DE BXEHPTION CODE 25X l 6 DATE 1 0- 1 5 -2 0 08 1 1 1 1 1 - lllr J B Ad a ms J A i un t Mr T ' Lea v itt 1lr b6 I b 7c Apz11 22 191'6 Tu Federal Bu rNu of lneaUgattoa J'BI baa of Dr lbapln 'flle fJ rat CODaeted two laYNtiptlou 1ooot1pt1oa wu praapted by tu AtGlllo ws c1 ABC adY1o1ac tlda BLll'ou la 1N5 tut tlae Jtuclear llaterlala Bqu1paeat Corporatioe JRJIUDC - UC oobcolluactor 111 Apello haMJloaala ooo otlatlag witb tbe Goiter t ol larael to otabliab a Joiat coapan1 ia Ieael to IN ltaalra u laneli IRJIOCCJsotoPN alld b _tloa Dterpi lau ISQUD Lillliect Tu flna wao to - la tu u-n111a 1oa of cltrwl fruit A l'oreip Asuta Rqtatratloe Act 1ooot1ptloa-na laitiated to detU'lliae 1f Slaapuo oo actiaa oo aa of tu laraell 0 erDIINt 1a tile Ullited Sta to l m'1q tlae CGU Neof tllta J ay Uptlo Sbapi re waa lDtVYiwecl Be clalaed Ida cloo relatloaalltp witb tbe Israeli ao - i wao atr1ctly a buaio oooi o _ T r o l nl ng _ Tel ephon e R m _ O ire c to Soc y _ MAIL ROOM c J TELE T YPE UNJT CJ 1 7 - - r1 ' GPO 1 97 5 0 - 5 4- t20 Dr zalllan ll0rd41Ca1 Shapiro Accor llq to ABC IIUJUC r el Yecl 1 012 kllOP oo ot uranlma-235 tl'Oll AECto proceso into tuel eluato for nuclor ractoro for apace p ropulo1on Tllla oubcoatract ooo eoapleted OD October 31 196o In April 1966 an ABC inventory indicated a loea fixod by a later Able check 1D loveaber 196S at 61 t l k11o roolued at $764 000 In addition a au ryey of tbe plut'a operatlom 1967 rnealed tbat JfUIIEC bad experienced H' a total CUlllllatlve loaa oa all All aubcontracta o f 178 k1lop-a- Y ' nr o all but 61 of whicb As couiderecl p roperl1 accounted for by i III ll aeraal procoa1q loaao A EC ooo uuble to aay UAequlyocally I tbat tlleft or diveraion of tbo 61 kilocnaa bad not takN place j lt I but ABC belined tbat lftJlliC couilltently llAderotlaated lta 1 ft procoaioa loaaa aad tbat tbe lou - of t b o 61 klloSftala cbarged 1 'I to tho latot aubcoatract actuall7 reported u accuaulatlon o f loaao ovw an -year period J Ohtecl out bowner tbat beoauae the 1ftJMECl eco rda na not tlleD ao up no deteraination could be ode as to whea the va riowa lOllllea occurred aubcontract na wsodM'i or wbetber -torial provided tor the latNt kDWlacly or inadyertotly to off aet cm otber contracta t oiaco o roto oot 1ooo Am adYiaed tbat thve would be DO financial loea to to pay for tho 61 kllogr JJPIJ ' la addition IUJlEC bad developed a better o1ottor CODtrollinc r_1 J# auclear Mteriala and aa iapl'O 'eaot wao also ezl 4teted due to l t 4 WIUIC a blr1DS of a toraer ABC official ABC dYlaed bOlfever tbat prior to okin aore pnetrating checka 1Dto JIUll lllC'o u I ' ' operatioll8 it waa felt tbe l'Bl allould be couulted to dotond 9- - ft whether the FBI desired to auuae hoot1pt1on ot tile otter p 1 Tbe J'Bl adYiaed AEC oo March 1 1966 tbat the 'BI bad g1Yen full eo11aldaratlon to tbla aatter alld tbat uader the clrcuaatanco pre1MDted by Ali 'C tbe 'Bl did DOt intend to aaau ae any inootiptive ropoaaibllity lloareyer it waa requoted tbat AlllC adoioo the l'BI of DJ further developaeata coatnc to ita attention eoacerolag tbia aatter wbJ cb would 1Dd1cato there bad bffll a violation within l'BI Juriadlctloa _ _l the GoYernaent oo Jn1IIBC bad agreed o' o 1 ' oI o ' ' ' r - _ - Dr Zalau ' - _ - - - - -- Jlordeca1 Aapbo bl s S ' I ofllpathy 1 4 il ii-rn 'r -w innrY' 'IITPl iiir nai iiiT----' for tho laraell cause Jl1s lmaodia Deluded a awaber Of persona known to be act tt 1ze ra with the Israeli cause Sbapiro waa Ir iend of David Loi Dthal o a f Gr11 8Z' - t r Zll mz1L J1 ll l J _ IUlll ll i who fre ueo s 1y L Ca' 'lir r-'l Qt- po - r a oa - 'T'MD ll 9i 1lo PeDns1 Diao aD officer of Apollo l dustrio lD P1ttabc1J'c was lnatruaental 111Ntab11ah1ng JIUllEC tb rou sub8taotla1 JIOUDt of IIOD811D IIU1tSC otock also detens 1 ned that lbap1ro aade a owaber U si t -0 1f ' 1 t rin @ i 1 U Pf Y oral for tbe J 1 to that countr 41'hea aDd et Jarael ill ho -YJ' Va1t-4 - to atatea - j ' t ry -- Yh iCll of a 1ovotlgat1oa COClp Dy vestaeat 1ts to Iara el what U Nd-1 elt ao o 17 teidp-ailq lag nd _ -11 actiYlt U - - a J i Sup uae that lie ae rloualy conai mllHlld Shapiro wu actlye 1A uad o tut aou roee ahlaed the Proldeat of entbal la also bODd J - o ' r- 1' t - r ' o ' -- - - _ _ - - - t ' - - -- ' o r o o o o - o --- -- - - -- -- l r Za lmaa So rdeca 1 Sh plro - - o l bl -'S X U ID September 1968 Colonel AYraba Official of Israel'o 111 litar y l otelligeoce S 1Jn1ted statea and ud aeTera l aeet1 with Pe1U1 Sylvaaia and Waahiaitoi J co I o - i - - - - f ' ' - iS -' ' - - - ' ' -' _ rf-' c c Jr -b lonle a aenlor ce was in the 1 ro in Apollo