C0 64 1 994 5 PPROVED FOR RE1 £ASE - CIA NFO DATE 26-Au 20 15 -SmRET SEHSfflVE t ----------- - b 3 CIMct b 1 b 3 NatSecAct qO 13526 3 3 b 6 25Yrs X1 MEMORANDUM FOR Deputy Director FROM for - Central Theodore G Shackley Associate Deputy Direc or SUBJECT 1 14 APR19 7 Intelligence for Ope ations The NUMECC se and E A' s Paper We have seen the atta cJied DDS T memoran dumon the ERDAdocument on NUMEC and it is our judgment that a sources and methods problem is not involved in the ERDApaper Nonetheless it is clear to us that should the NUMEC matter be pursued in the press a good possibility exists that sources and methods as wel l as th e cont rad i ctory ·intell i gence assessme nt s coul d becOlle an issue Z We recol lrnend against CIA bein g pTesent at the · meet j ng on 15 April 1_977 at which ERDA will lake its presentation to Dr Brz ezinski concerning the NUMEC case We offer three reasons for this The ERDAmeeting with Dr Brze zinski may be concerned with an issue of domestic law enforcement in which CI A has no autho r ity or re sponsibility Our particip ati on in suc h a meet i n g woul d in evi tab ly dr aw di scu s sion int o areas invo l ving sens -i i v sources and methods · We do no·t heI ·ieve the· · meeting is the appropriate forum for this kind of discussion Thirdl E Ad a turn would Taise i nvolving NUME C in the question 0£ i l leg a l I 1vers 1on 3 As an alternative to partici pation in the Friday meeti g we propose that Dr Brzezins k i be offered a separate briefi g ·by CIA concerning the NUME C is sue This arrangement presentation would a llow us to provide a full and uninhibited wi thout concern for ·sources and methods sensitivities We have att ach ed a talkin oin t s · a e r and a chronolo gy or use by ec e • WARNING ·NOTICE SENS1TIV£ INTELLIGENCE SOURCES ANDMETHODS INVOLV l' D b 1 b 3 NatSecAct · EO 13526 3 3 b 6 25Yrs 25X1 - m 1 -r x r '-- mt f t - - w · - £ x t ' t I __ __ __ B 3 CIAAct dt - - Ci i 9 y C06419945 PPROVED FOR RELEASE - CIA INFO DATE 26-Au -2015 °tq 1 Kb 1 Cb b 3 NatSecAct ·2sx1 1us2s 3 3 o 6 sys - 1 1 ' n 3 Nat$ecAct E 13526 T' 3 b 2 SYrs 'ro EO 1 · 2· ·6· 3 3 b 6 25Yrs· yceREt SEHSltlVE ·' 1 ·· Q 3 NatSecAct · E · 13526 3· 3 b 6 25Yrs 4 Since 1968 when· the of NUMECfirst ca nto focus CIA has cooperated w1 · tH1 JJ uu a ss 1 SJc uUL LDcam--1 · n ·· · their investi ation of more recent y 111 1 s 7 While this information i s of obvious importance in reaching an intelligence decision on the probability of diversion it is not of any legal pertinence to the FBI's criminal investigation of NUMEC In our discussions with the FBI we have alluded to-this information but we have not made the de tails available to the special agents from the Washington Pield Office of the FBI who are working the case While Mr Bush's conversations are not known to us we have had no substantive discussions with o£ficials at FBI Headquarters on th-is matter · 8 The last-brie'fi ng of · the FBI on the NUMECmatter occurred on 10 August 1976 We are not aware of the current of NUMEC status 0£ the FBI investigation i z 25X1 b 1 b NatSecAct · EO 13526 3 3 b 6 25Yrs · nr11nl'T t I 111 llllll - ' C06419945 PPROVED FOR RELEASE • CIA INFO DATE 26-Au -2015 l · 8tGH l EfiS1l1VE I f I I i I I I· I I I I ____ --- ----- - X 25 1 z r c - T heod ore G Atta chments a s · b 1 b 3 NatSecAct EO 13526 3 3 b 6 25Yrs ·· 3 SE6REF SENSm b __J 1 C06419945 PPROV ED FOR RELEASE - CIA NFO DATE 26-Au -2015 f I ·'· t 2 i PRi$77 '·· I I· · SUBJECT 1 Review of ERDA-Docwnents on NOMEC The proposed ERDA paper on the NUMEC matt er I per-· only to reports maintained by ·AEC on NOMECopexations and an investigation of HUMEC by the ABC We in CL' are not and have not been concerned ·w i th the law enforcement rndeed Dick Helms turned - the aspects of this pr ablem xnatter · over · ta the EB-I in order to avoid such an involvement Though the- 'ERDA report ·concludes that no evidence · indic ting ·unlawful activity or di version was uncovered in the course of the inves -- - - _1 tains ---- - I· b 3 CIAAct b 1 · b 3 NatSecAct · EO 13526 3 3 b 6 25Yrs 25X1 SECRET SENSUIW C064 1 9945 PPROVEO FOR RELEASE- CIA NFC DATE 26-Au -2015 I SEC RE1 ·SlmSI'i' IVB SUBJECT Review of ERDA DocW'llents on I 1· i I I I J - if' -r 1 I f a · nttorney General Lev was directed year by President F r d t o have the FBX· rei nve s tigat e NUt-mC We know nothing of the results o f that i vestigation last b 1 · b 3 NatSecAct EO 13526 3 3 b 6 25Yrs 25X1 - 2SECRf T SENSi PIE C06 4 19 94 5 PPROVEO FOR RELEA$E - CIA NFO DATE 26-Au 2015 SECltE SUBJECT Sl NSI'i'liW Review of ERDA DocUJ11ents on IDMEC i I • • I f • The problmn as · it is addressed by ERDAfocuses on the law ·en£orcement aspects of the problena in which it is inappropriate for the CIA to become- involved I I 3 To provide all of our info rmation to ERDA would release infornaation that bas been considered ext resnely sensitive up till now Perhaps that juagment should be reviewed but it is inost unlikely tmat any of it could be included in any open·announcememb or discussion the matter I I - whicli is what ERDA seems to have i in mind of ·1 I j- II - - I - ·- -3- C06419945 PPROVED FOR RELEASE- CIA INFO DATE 26-Au -2015 5X1 b 1 · ' b 3 ·NatSecAct o 13526 3 3 b 6 25Yrs SECRET SENSITIVE WARl 4mG NOTICE SENSITIIJE INTELUG HCE SOURCES ANDMETHODS ·mvoLV£ ____ _ ___ -sEGRET SENSffiYE ____ I-· _ _ -· 3 CIM C064199 45 PPROVEO FOR RELEASE - CIA INFO DATE 26-Au -2015 SECRET SEl SfTI 'f t i I I I I i I I I I DOE bO I l I 2 25X1 b 1 b 3 NatSecAct EO13526 3 3 b 6 25Yrs SEGHET SENSITIVE C06419945 PPROVED FOR RELEASE - CIA INFO DATE 26-Au -2015 · b 1 _ 3 NatSecAct EQ 13526 3 3 b G 25Yrs • SEOOET S£ MSffl1E ·tt 1 b 3 NatSecAct • EO ·1 5263 3 b 6 25Yrs· b The loss of uranium at NUMEChad been investiga _ the Atomic Energy CoJ11111ission A second investigation was conducted by the General Accounting Office at the direction of the Joint Committee on· Atolllic Energy Both of these report 's conclude t a t ere was no evidence of a diversion of e material · • r· I· I · I In March 1968 the DCI requested the Attoruey General to the FBI to investigate the · possibility that a diversion hat tJ ie m terial unaccounted f' r at N1 1MEC was abruptly ternu nated 1n 1'-- a o o lowingThe lllV stigation an interview between the President of NUMEC and the Director of Security £of the A EC for the stated his security clearances The missing purpose of revalidatin material was not ·mentioned in the interview direct I J ___----- c _ l and I I r During 1976 · the Joint Co1111Ditteeon Atomic J nergy renewed · its interest in the affairs at NUMECand brought the matter to the attention of President Ford Attorney General Levi directed the FBI to ini iate a second investigation into the loss of material- 1968 when the subject 0£ NUMECfirst came into has oop rated fully with the FB as · · J n 1 · ·· b 1 b 3 NatSecAct EO 13526 3 3 b 6 25Yrs 25X1 3 •' SEOHET SEHSIIl' E b 1 b 3 NatSecAct EO 13526 3 3 b 6 25Yrs C06419945 PP ROVED FOR RELEASE - CIA INFO DATE 26-Au -2015 b 1 b 1 p 3 NatSe Act 25X1 · 13526 3 3 b 6 25Yrs E·µ ---JS ECliflRE Tf SEl NMSmttVEve-- b 3 - atSecAct EO 13526 b 6 25Yrs ·· • ·- · - 25X1 ' - - - -- ii j ' - - - rr---1 lo st no opportunity to further the investigation y t e intelligence - infonnation concerning in the hope that positive the whereabouts of the missing material would be forthcoming ···· ·······--· ·-· 25X1 ·--·1 I While this information of obvious is importance in reach• criminal investigation of NUMEC In our discussion s with the FBI we have alluded to this infonaa tion but we have not made the details available to the speci l agents from the Washington Field Office of the FBI who are working o he case • While Mr Bush's conversa -tions are no t-known to us we·have had no substantive discussions with officials at FBI Headquarters on this matter · ing an intelligence decision on the probability it is not of any legal pertinence t the FBI's of diversion The last hriefin of the FBI on the NUMBCmatter occurred on 10 August 1976 · We a re not aware of the current status of the FBI investigation of·NUMEC 25X1 b 1 b 3 NatSecAct EO 13526 3 3 b 6 25Yrs 4 C06419945 PPROVED FOR RELEASE - CIA INFO DATE 26-Au -2015 -SE GRIAET' P S Bfffi ltt1Tltt E - I J I lI I I b 1 b 3 NatSecAct EO 13526 3 b 6 25Yrs 25X1 ' r II ' s SECRET SENSITIVE C06419945 PPROVED FOR RELEASE - CIA INFO DATE 26-Au -2015 b 1 b 3 NatSecAct f O 13526 3 3 b 6 25Yrs 25X1 l SECHET SENSflVE If' ij I ' I I I WARNING NOTICE SENSITIVE lfiTfUIGE iCE SOURCES • AHOMETHODS INYDLVEO SECHff J'iPtS a 1 11 lh ' · - 3 CIM C06419945 PPROV ED FOR RELEASE - CIA INFO DATE 26-Au -2015 0 J N LASSJFIED ·n o 1HmHAL J OHLY ' NfJ ' NTlAl -1 D SUI JECT co ii-11 b' q Cl Met NUMEC Sf iff 1 BiSttf £ ' · ···· ----' ·····D AbDO -- - - ' b 3 CIAAct 11 14 April 1977 o s a - _ T c'J CIAf ct -- ----- ------- - r---r---t t --------------TO CC l cwd lg _ - • i C HrS - bw ead IO C Om 0 - a 1----DA - Tl---1 - 1 ···j OGG _ -- - ------ J - ---- - --- --'-- - --- DDCI a ----------- --- --- ---- - ---------- ----' - -- ----t----- c-t - -l---fl-ll --- - - - 10 •' - - ---- ADDO to DDCI · · · The essar es of an °i e t £e i'world resulted in Mr Tony La Pll_ c OGG being out of the building a when we were handcarrying this -1paper around or coordination ·As a result we are giving Mr Lapham a drop copy of the pape we are ask g him to g t a y· _comments on the 'paper to you by ·e rly morning 15 April This ·· action will ensure that the basic ·· is available to you for -1reyiew on 14 April- · ·___ __ i · i pa r j 11 TGSbackl _ ' - 13 '--- __ IS -· - 1-' -- - - ·- - DDO ------------ --- --- --6 Exec Reg 12 • •' · ------ - - ------ --- -- -----1 DDO Reg -- - -··· · b 6 3 '1 ta _ DDS T • _ onr 2 --- SEC T ROUTING AND RKORD SHEET I- I 1 - -6 ' l O -USf-fDl- -IOIIS- -o--s-EC_R_ET _0_ CO_N_F_ID_E _N_T_IA_L__ _D _ v · ' ' ' -- o--u-N-CI A-SS-1-FI_E_O _J J b 6 C06419 945 PPROVED FOR RELEAS E · CIA INFO DATE 26-Au -2015 '1 IITERNAI G - -UNCLAS$ 1 l D · - i OILY 0 RO NG AND RECORD S _ T 'i SUI IKT o -IJ fflOM ADDO •• __I -- b tld g1 _ - 'I 1 Lapham 1-------- - ----r---t----- 1- - - ---t----i - -_ _' t- -· - --·-- 1-----o_n_c_r ____ · ·· I ADDO ' ·• - 1------------t-1 s COMMfHIS •-• _ •• n- • '- - - -- l ' l °lie pressu res of time • -- ict11-ted that we get this paper to the DDCI before you had a chanc e · to it Aa a result could you ' get your comments if any to e DDCI by 0900 bow ' s 01115 April · read · l977 · I 1 I · - -·· - - -- - --t-- 1----- ----_ -t--- j 9 J- ·· · · --··· -·r b 3 Cl ---j · ' lb TGShacJdey o · t - -io · 1·-- b 3 Cl l- · ·1·· · one c a c argue about the proba_ti e 1 value of that information from an inve itigatiye or ·legal tandpoin t I · no evidence of divers ion However that conclusion is difficul t to square with our intelligence information and L----------- ---t---j----jwhile Jl '- - ---------- -_-· --r---1 - f -i--- _ ·---- -- ---t----1 s ii l b 6 J ·-· 15 fOJM 3-62 ct l ·' --- -- ct PR - - ·I QT Dr Brzezinski rather than to pa rtidpa fe the ERDApresentation But -at ·_ ' -- ·_ __ _ -'-1' the same time I think we should revie i • the decision not · to discuss our i ntelli_ 7 r gen_ ce infOl IJlati on with the FBI or j -- -f-- r----iERDA As I understand it tbe investi 11 ·· · · -· · • · · gations of NUMEC are related to the pc s- - · - i 'i bility that nuclear material may hav1 -r- --- _ -- --- h diverted and apparently at 1 • least-ERDA has concluded that-thue i • • ' _ _ 10 1-IA - -- 1 · # · 1- a - --- • _ - · -- · _ 6 --- • t- 3- ---------'---- --- 5 fl r--5 -t- ti 1-- - -----'0-G-C ------ --- ' -1l · 4- jI - b 6 1977 DA'll Mr I _ t--_- - -IC-fll-- -D' 'il Attn -· __ 0 1ft 14 April TO OtllG 1 · · - -- t 3 Ci C · J' b S CIAAct· • SECRET · ·- i r m J Ni u NUMEC 0 ---------- BNf NTIAl 610USl am 0 SECRET 0 INTERNAL CONFIDENTIAL D USE OHLY 0 UKC SSIFIED