LETTER TO MR. DIRECTOR FROM PHILLIP S.HUGHES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-00631R000200010018-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: May 3, 2005
• Sequence Number: 18
• Publication Date: June 9, 1958
• Content Type: LETTER

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EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON 25, D. C.
JUN 6 1958
My dear Mr. Director:
Reference is made to your letter of December 13, 1957, and
to the draft Executive Order transmitted therewith which would
designate the Central Intelligence Agency as a defense agency
within the meaning of chapter 17 of title 35, United States Code.
Enclosed herewith are copies of letters of February 12,
1958 from the General Manager of the Atomic Energy Commission,
and of June It, 1958 from the General Counsel of the Department
of Defense.
The General Manager of the Atomic Energy Commission for
the reasons set out in his letter recommends that, for purposes
of clarity, the draft order make a qualified designation limited
to patent applications which do not involve Restricted Data.
The General Counsel of the Department of Defense suggests
that a conference be held by representatives of that Department,
the Central Intelligence Agency, and the Commissioner of Patents
so that the Department of Defense, before expressing its position
with respect to the draft order, may receive a more extensive
briefing as to the need therefor.
In the circumstances this office will withhold further
action on the draft order pending receipt of your advice in
the premises.
Sincerely yours,
Assista?Director for
Legislative Reference
Honorable Allen W. Dulles
Director, Central Intelligence
Agency
Enclosures
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GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE
Washington 25, D. C.
June 4, 1958
Dear Mr. Stans:
Reference is made to your request for our views on the proposed
Executive Order which would designate the Central Intelligence Agency as
a defense agency within the meaning of chapter 17 of title 35, United
States Code.
Section 181 of chapter 17 authorizes the Commissioner of Patents,
upon the request of the Atomic Energy Commission, the Secretary of Defense,
or such other department or agency of the Government designated by the
President as a defense agency of the United States, to issue orders to
keep secret the inventions, disclosure of which would be harmful to the
National Security.
The Department of Defense does not fully understand the needs of the
Central Intelligency Agency as expressed in this request. The Department
of Defense is concerned over the possibility that section 181 will be
extended to cover a number of agencies and that conflicting actions
might arise from such a situation.
This Department recommends that a conference be held with representa-
tives of this Department, who handle such matters for the Department of
Defense, the appropriate authorities within the Central Intelligence
Agency, and the Commissioner of Patents to determine the basis upon which
this Department could concur or non-concur in the proposed Executive Order
after receiving a more extensive briefing on the needs of the proposing
agency.
Should the Executive Order be approved, we would request that an
agreement be reached between this Department and the Central Intelligence
Agency whereby each would be apprised of the other's actions so that the
two agencies would not be recommending conflicting actions to the Commis-
sioner of Patents. This Department has such an agreement with the Atomic
Energy Commission.
For the foregoing reasons3 this Department defers comment on the
proposed Executive Order until such time as a clearer understanding is
reached.
SinFerely yours,
/, k ----
Raberk Dec ert
Honorable Maurice H. Stans
Director, Bureau of the Budget
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UNITED STATES
ATOMIC ENERGY COMMISSION
WASHINGTON 25, D. C.
FER 1 2 1950
Mr. Roger W. Jams
Assistant DArootor
Legislative aefosenso
Duress of the Budget
Washington 25* D. C.
Dear Mi. joie*:
This is in response to your letter to Mr. Strauss dated January 13,
1958, requesting an expression of the AEC 's views with respect to a
proposed Executive Order designating the Central Intelligence Agency
as a defense agency under and for the purposes of Chapter 17, Title
35, United States Code. Poi the reassns set firth below, up sannot
concur in the proposed Executive Order as it now *tends.
As we understand the proposed Executive Order, it would authorise the
Central intelligense Agency to revive the im;osttion of secrecy orders
upon potent applleations, the public disclosing' of whisk sould, in the
opinion of that Agency, be detrimentil to the national security.
As you will recall, Sections 141 and 142 of the Mimic Energy Act of
1954 give the Atomic Energy Commission primary respensibility for con-
trol cd!the dissemination and declassification of Restricted Data.
When the Commission and the Department of Weise jointly determine
that Restricted Data relates primarily to the military utilisation of
atomic weapons, determinations relating to its dissemination and declassi-
fication are to be mode jointly by the Commission and the Department ,of
Defense. Decisions relating to the dissemination and declassification
of Restricted Data are based, for the most part, upon teehnical ecientificH
considerations peculiarly within the competence atlas AEC and within the
competenoe of the DOD to the intent resegnised by DiObiou 142 of the
Atomic Energy Mt of 1954. it is our belief the Ceedies*, fully cognisant
of the technical ability necessary for soma decision* in this area, in-
tended to vest the authority for sash determinations ia thine hands shore
the peculiar skill rests. This sonclusion is based upon ftebian 14660
of the Atemis Energy Act of 1954, read in conjunction with Section 142,
'shift states:
"Sections 141 to 145, inainsivo? Shall net exclude the
applicable provisions of any other laws, except that no
Government agency 'hall tele any action under each ether
laws inconsistent with the provisions of these sections."
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Mt. Roger W. Jones
This quoted section of the 1934 Act is substantially identical to
Section 10(b)(6) of the Atomis Energy Act of 1946. What Congress
intended by including that provision in the 1946 Act is indieated by
a statement on page 24 of Senate Report 1211, 79th Congress, 2d Session,
which said that subsection 10(c)(5) (the section referenee of the
10(b)(6) provision in the draft bill then being discussed) "prohibits any
agency from placing infermation in a restricted oa under the author.
ity of this or any other law once tion has n released from
the category by the official action of the Atomic Energy Commission."
(Emphasis added.)
We construe the above language as a clear indication that the Congress
did not intend any money except the Atomic 'Energy Commission, and the
Department of Defense to the extent indicated by Section 142 of the 1954
Act, to control the dismendnation and declassification of Restricted
Data, and we believe that this is the only possible statutory interpre-
tation, with regard to Restricted Data, when the Atomie Mnergy Act and
Section al of Title 33, U. S. Code, are read together. Thus, to the
extent that the admlaistration of Chapter 17 of Title 35 is to be
broadened by an Losseutive Order desigsating an adaitional agency as a
defense agency, we would reeommend? for purposes of clarity, that such
an order mak, a qualified designation limited to patent applications
which do not involve Restricted Data. Such a polification would, in
our opinion, avoid defeating the Otegressional intent as regards Restricted
Data.
Sincerely yours,
McIned - K. J'. ieTc1s
General. Manager
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T
RO
REMARKS:
Please keep together w/ papers
you have on this subject. LRH may
have need to call for them.
J.
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