DEAR(Sanitized)

• Document Type: CREST
• Collection: NGA Records (Formerly NIMA)
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78B04747A001500010001-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 28, 2016
• Document Release Date: January 7, 2002
• Sequence Number: 1
• Publication Date: June 24, 1965
• Content Type: LETTER

Approved For RIls`aAtfl06/17 : CIA-RDP78B04747A001500010001-4 ..
STATINTL
STATINTL
y
Dena r
STATINTL
I have been in touch with
STATINTICr-esident of F__ 1 regarding questions which
STATINT
STATINT
STATINT
arose in nay last meeting with representatives of your office.
STATINTL asked to provid a little more factual detail
concerning the direct relati nshi between the expansion of
his facilities,and the awa-r of I am quoting STATINT
iere appropriate excerpts from reply to me in the STATINT
hope -hat they satisfactorily answer the questions still out-
standing.
"When we proposed a research project covered by the
.11)OVO rW;tr,,ic:.t number, our enc`)incering staff was sufficient to
i,,in,do our everyday br.rsIness ins i t existed at the time. Iiowever,
d;r_rte to tie, ,ize of the contract, which represented hatter than a
third of our yearly volume in addition to our. normal business,
had to provide additional qualified 'engineers to be able 'to
coon duct the R & D project in question.
"it was not a question of whether the new people could
do things that our regular staff could not do, it was more a
problem of quantity than quality, that is, our regular staff.w?,was
normally occupied and, therefore, we could.not spare the engineers
for the new project without endangering our normal business;.
"In fact, however, one of the new eng i rrccerS wa'. ;)II c r.-
pert on feeding and transporting film and paper, another- (Jne was
an expert on complex electromechanical devices. Both these capa-
bilities were highly desirable for the project in question.
STATINTL
Re:
after the termination of the contract . STATINT
was assigned to research an idea for mounting aperture
cards, which was never put to any practical use.
Approved For Release 2002/06/17' CIA RDP78B04747A001500010001-4
June 24, 1965
DECLASS REVIEW by NIMA/DOD
 Approved For Release 2002/06/17 : CIA-RDP78BO4747AO01500010001-4
STATINTL
June 24, 1965
was assigned to investigate the feasibility of a diazo type
contact printer, which again found no practical application
STATINTL and was used as a checker in our production engi-
neering for a while. . . since these people were on contract,
and had specific abilities, and we had no government or,com-
mercial contracts to which these people could be profitably
diverted, we conducted some R & D projects of our own just to
keel) them occupied. As indicated, neither one of the two pro-
jects turned out to be profitable and, therefore, their time
and investment was a total loss.
"We expected to use all three men full time on the
project for one year at least, since the original estimated
time was eighteen months and we hoped that after the first year,
our R D had progressed far enough so that we would be involved
in building the prototypes within the last six months of the
contract.
STATINTL "The I ortion of the contract did provide.for
sore additional R & D, but only about 30% of the total, since
.hey wanted the same basic unit as the agency, but with some
additional features, which had to be researched and incorporated.
STATINTL .
the prototype was estimated at about
which includes some engineering and tooling, and better than
STATINTL was estimated for the R & D. portion and, since the
STATINTL Portion was a total of their R & 0 addition
STATINTL was estimated ati STATINTL
"As to the new floor space, one specific requirement
was to have an area completely separated from our other activities
so that it could be safeguarded properly for classified contracts,
such n this one, and therefore, such an area had to he fir-It
rented, and then produced. Secondly, the R & D requ i rernen t s were
such that an environment of practically "white room" conditions
had to be produced to satisfy the basic specifications.
STATINTL "Certainly. the I iportion would have required some
of the new space, but only. as far as the additional floor space
requirement for a second prototype, which was to be assembled
simultaneously with the first one. All other activities, such as
engineering would be conducted.by the same people in the same
engineering space provided for R & D research."
I look Ioi'word tc. heA.ririg from you in the near, future.
STATINTL
 Approved For Release 2002/06/17 : CIA-RDP78BO4747AO01500010001-4
STATINTL
Approved For Release 2002/06/17 : CIA-RDP78BO4747AO01500010001-4