®ffirPnf tqrl ttnmry rnrrnl IJ a n4ingtnn i Ql 20530 PRESIDENT The purpose of this memorandum is to set forth my views on two issues -- 1 whether the jurisdiction of the Joint Atomic Energy Committee is exclusive and 2 whether the statute of limitations has run on any possible criminal offenses arising out of the discrepancy in nuclear materials at the Nuclear Materials and Equipment Company NUMEC -- and to attach a brief memorandum summarizing the FBI's role in this matter I Jurisdiction of the Joint Atomic Energy Committee Section 202 of the Atomic Energy Act 24 U S C 2252 which defines the authority of the Atomic Energy Commission provides in pertinent part All bills resolutions and other matters in the Senate or the House of Representatives relating primarily to the Commission or to the development use or control of atomic energy shall be referred to the Joint Cornrnittee 1 te t indicates that this referral Nothing in this and that other Committees may not consider those they also come within their jurisdiction is exclusive matters if During the debate of the Atomic Energy Act of 1954 on the floor of the House there was a colloquy in which Congressman Ya tes expressed the view that with respect to legislativ e proposals the jurisdiction of the Joint Committee is exclusive 100 Cong Rec 11667-11668 In our view however this statement is insufficient to give to the text of the statute a significant feature which it does not in fact contain particularly in light of the subsequ e nt legislative practice The House and Senate rules do not contain any provision which would give the Joint Committee ·on Atomic Energy exclusive jurisdiction The Senate Rules merely reprint without comment the provisions of the Atomic Energy Act relating to the Joint Committee 42 U S C 2251-2257 see Senate Manual paras 565571 The House Rules give only a short digest of those statutory provisions Manual and Rules of the House of Representa§ 983a Moreover at least one House committee is tives specifically accorded jurisdiction over a matter which comes within the Joint Committee's authority as well The House Committee on Interior and Insular Affairs is given special oversight functions ''with respect to all programs affecting nonmilitary nuclear energy and research and development including the disposal of nuclear waste Manual and Rules § 679 693 of the House of Representatives A study covering the practice of the first fifteen years of the Joint Committee indicates that it repeatedly had to share jurisdiction with other committees on matters involving the development use or control of atomic energy 2 For example in the case of nuclear powered merchant vessels the Joint Committee had to share jurisdiction with the Senate Committee on Commerce and the House Committee on Merchant Marine 3 Recently the Subcommittee on Energy and Power of the House Committee on Interstate and Foreign Commerce considered instances of alleged misuse of radioactive materials a subject which unquestionably comes within the jurisdiction of the Joint Committee on Atomic Energy the We conclude that jurisdiction of the it cannot plausibly Joint Committee is be asserted exclusive · that There are however other features distinguishing the Joint Committee from other committees of Congress so that the executive branch could justify an unwillingness to furnish sensitive information to committees other than the Joint Committee Under 42 U S C 2256 the Joint Committee may classify information originating within the Committee in accordance with standards used generally by the executive branch on Atomic 1961 pp l Id pp 270-271 g s o a for classifying Restricted Data or defense information The effect of such classification is ·at the very least to enable the Act's provision on the protection of Restricted Data to become applicable -- and possibly to enable the stat tes as well invocation of other criminal 2255 the Joint Committee is authorized Under 42 u s c to permit its members employees and consultants to carry firearms while in the discharge of their official duties and under 42 U S C 2257 it is authorized to direct such security safeguards as it deems appropriate We are advised that by virtue of these provisions the Joint Committee has an extremely secure recordkeeping system These special features would obviously dential willingness to provide information to which might be withheld from others II Possible Violation of Criminal justify Presithis Committee Statutes The Federal Bureau of Investigation conducted one criminal investigation which related to NUMEC That investigation involved a possible violation of the Foreign Agents Registration Act by the president of NUMEC for acts occurring in 1956-66 The Criminal Division advised the Bureau in September 1966 that these acts did not constitute a violation of the Act and the investigation was closed The five-year statute of limitations which applies to this Act has since expired The FBI did not conduct an investigation into the alleged discrepancy in nuclear materials at NUMEC because it was advised by the AEC that any loss likely was attributable to inadequate accounting procedures and that there was no evidence or suspicion of a violation of law Since no investigation was undertaken the Department of Justice cannot state that there is no evidence which would support a criminal charge The facts available with respect to this matter indicate that the following criminal statutes may be involved nuclear 42 U S C material 2077 - Unauthorized erally 42 U S C 2273 - Violation or of agency regulations u s c 2275 Receipt 42 U S C 2276 - Tampering 42 of dealings in special of Atomic Energy Restricted Data with Restricted Act Data gen- - 4 - 42 U S C 2277 18 U S C 832-834 18 U S C of defense 793-794 - Espionage information 18 U S C 3 - Accessory 18 u s c 18 U S C 4 - Disclosure of Restricted - Transportation after Misprision of 371 - Conspiracy of the Data dangerous fact felony to commit offense The Statute of Limitations for the above-enumerated 3282 except for violation offenses is five years 18 u s c 2274-76 for which it is ten years 42 u s c of 42 u s c 2278 Furthermore if concealment of the substantive offense is continuing the statute of limitations would not bar a prosecution under 18 U S C 3 accessory after the fact 4 misprision of felony and 371 conspiracy Because the statute of limitations may not have run with respect to any offenses that may be involved and because of the responsibility to consider whether any dismissal or other disciplinary proceedings may be appropriate with respect to any persons presently employed as federal officials who may have participated in or concealed any offense I believe it necessary to conduct an investigation Section 2271 of the Atomic Energy Act provides that the Federal Bureau of Investigation of the Department of Justice shall investigate all alleged or suspected criminal violations of the Act A brief attached summary of the FBI's file on this matter is • fFJ a 9r TIii DIHCTOa I FEDERAL BUREAU or INVESTIGATION a irat on was prompted by til e Atomic Energy Cor»n1ssion A X adriaiD tbia Bureau in 1965 that the Buclca r ltatorials Equipment Corporation NUJIEC u AEC aabcontractor ill Apollo Pesma lnaia waa negotiating wltll the Governsent of Israel to eatabliab a Joiat company 1D Jarael to- bo known as I era U atJ1mC Isotopes and Rad S at1on lblterp riaes ISORAD • L1lll1 ted The tins waa to enga iJa tbe lrnd 1trus fruit ga iAdicaUou aatuiala ID J'41tbruU7 1966 the ABC advised there were tbat BUJIBC waa l ax b tbe aageaeDt o f nuclea S1Ace April 1957 • AEC had Jilade extensive ute raal checks at a ad bad reported the a1tuat1oa tot be tecbA1ca1 Join Corae lttee OD AtOlldc Eaergr JC U The Joint Committee raa told by AllC OD February 14 1968 that ia tbe abeence of •idence or auap1cion of a violation of the law • AEC bad detand Ded tbat Saqlliry bJ tile FBI wu aot tben warranted lA_ IZ • Claaailied be pt fMII Date of J ecl -c NATIONAL SEC tmIT' NF RMATION Unanthor1 z2J D1 sdosme_ Subject to Criminal Sanctions Accordhg 'to AEC rromx received 1 012 kilograms of f roa A EC to process into 1uel elements for nuclear reactors for space propulsion Thia subcontract was completed on October 31 1964 In April 1965 AD A EC inventory indicated a loaa fixed by a later AEC check in November 1965 at 61 Jdlograaa valued at $764 000 In addition a survey cd tne plant's operntion t since 1957 revealed that NUlIBCh d experienced a total cwwlative loss on all A EC subcontracts of 178 kilogr all but 61 of wbich A I X considered properly' accounted for by nonaa1 processing losses AEC was unable to say unequi vOClllly tbat theft or diversion a f the 61 kilograws had not taken pl ace but tEC believed that HmlEC consistently Wlderestimated its processing losses and that the loaa'- f the 61 kilograms charged to the latest subcontract actually reported an accumulation o f loases over an S-year period All pointed out however th at becaoae tile BUJlEC records system was not then so set up no determ ination could be made as to whca the various losses occurre8 or wbether material provided tor the latest subcontract was use l knowin l J o r inadvertently to o ffset losses on other coatracts u rania»-235 AEC advised that there would be no financial loss to CoverDJll8nt as ffl1JlEX had agreed to pay for the 61 kilograms Ia adcU tion rromx bad dneloped a better system for controlling nuclear materials and an improvt ent was also ex ected due to the is 1-r1 NUlUX 's hiring of a for mer are official A EC advised however p that prior to maki rJg more penetrating checks into NUIUX s operationa it waa felt the FBI should ·be consulted to determine w2 1ether tbe FBI desired to aesu me inveetiption al the matt e r - 1 Th• FBI advised AI £ OD llarch 1 1966 that the 'BI had given full consideration to this matter and that under the circum- · stances presented b AEC tbe FBI did not intend to assume any inveatigative responsibility however it vaa requested that AEC advise tbe FBI of any further developments coaing to ita lttention concerning thia -tter which would indicate there bad been a v'iolatioa within FBI juriadiction A CW @9 1395 1i 4 E l 1 mm- utu 0 1 Kim-man ll nu