OCT la 2a12 - 2 2SP'1 1'v1E ORA ' Dt M '1 r _ '-' ' W n' - ' i 0 1 I J b- ''' ' ' ' ' I r '-Ui' X THE 'tv'HITE HOIJSE z SEGRE' f-IS SI7rvE Ton J - • 'Jt 1 1 Vt' SHINc T'O · d p'J_ r if I i' O 449 -1 - 5367 I R - 7 z - - - - - N- ' ce­ '-' z yz ­ ' ' 2 -- - '- ­ r-- y -N 0­ ' lJ' Z z c _Zr ­ I ' - NZ - '- - z -'7 ­ PR SIDl N T r liE ' ORANDu 1 'CR THE FR Olvf ZBIGN E'W BRZEZINSKI SUBJECT N clea - UF 1 y - l - o L-l L - t J ' j t r- ' I ER DJ r s long- pla nned re lea s e of V S 11'U' 1aterial ljnaccounted For data vill t ake place on Th ursday Augt Lst 4 A s I mentioned yOll ill a rece nt veekl·l Alert the publi releas e wiL 1J doubtedly focus 'intense -E SS a d Congres ional a tte tion on L1 e missing ma teria £ rC1TI trle N J tviEC pla 1 t in Apol10 F ennsylvania tC 7 ­ J N '- z $ '-' '-' ' - '-' y -- ­ - - J J - r- CL The e s sential conclusiol1S are tCL-ese In the 1 1505 and II OS the AEC did not require its li censees to mal e annuc J physica1 i r ventorie·s of th€ ir special luclear naterial u-a At yo'ur d re tiol1 I h a re been t oroug'hl r brief ed by J R DA FBI an d rhis l ad 0 thE practic e· of a plant's borro ing 01'1 a contract in rd er to CCI'' re-r c peratioru l 11 ses the rnajo r c nt riblltar to M UF in n cU 'rent contract tr e NUMEC 'i 'E c cr r­ t lant was Fla rtic tlarly bad in this re spe ct No inventory was - eriorme d c etween 195'7' anc 1965 In' rnid 1965' t h lack of an lr -a im m@dic t lubsequent contract forcec J UMEC to do'a material C· § a ccounting ' I l llch revealed that 170 kg C f ' highly f n 'iched u 'aztium c --o 'S 0 l nissing i 0 I C J r -J U suboequ nt r J ' 'J' Jpon rel eiving tb s accoll nting t LE AEC' immediately began a long ' J CJwc s 2 2 c of i- 'l· lestig'l t ons whicf l continued through 'l969 and which t Lltirnat ly' conc ludec that all but 6 ' f the missi ng r naterial O lld 3 be physica ly accountecl for ERr be1ieves no'w l ut b as no O-a videnCE tbat even t _ S remaining' 56 l g can be acc ounte d for by ' --­ r­ § ' J s cries ' ­ ' 'I J operatiQnal1osge but this t --ill be l J ry hotly C Jntested con clt sion rhe ER A report also 'reaches a 'l ery i ar-e u11y g1 arded conclusion that no evi ience of tb eft of sigr i£i ant amounts of found Th k ey paragr aph is attal hec3 i3 t Tab A rhe FB1 h2 s lnate ial IJ as belen undertakell t JlO lengtb y in restigatic ls of fhis case i -l 1965 looke d a t t he questioI1 of Sh api ols the Presici nt of 'i'JU C re atio n 9bip o the Isra li GoV'ernme _t rhe first OI S ' GR'P • J J oJ beri j ng ' E TSI'i I i--' c I y _ '- 1 0001 _ _ _ _ I_ _- - t t1 tf I ll'W - ·- f · '-' - _ '--'- __ _ 0 d I 2 Jl 2St-J 1 I C - ltj13 I TOP o E GRI I-- t-1''r - r J iw_ 'r 1 ' J ­ It conclud ed that S apiJ o F' S 2 ind€ d hav'e requsnt contacts vi th 5 ra eli officials b eTe pa l icular y th Science A tta che who m s thoe g ht to 'be an ir tel igence O££i E r They a Iso discovere·d th a t S apiro got VIP 1 '1 at T_ent on tri s to Israel for whic there was no obvious explanation 7his is the es sential sum of thei r finciing s wnen 'I le se re st lts were tr a nsmitted to Helms then head 0 ' the CIA at whose request th i nvestigation had been l naert Lken he responded with c seri es of lette -s to Hoover urging t l a t the FIBI take additional steps incl di lg retappir g and surveillance o£ Shapir Ho over refused q i I I cid The A E C 7 at the directior of Attorney' General M itchell undertc ok its own in v·ss'tigatior leading up tc a f1111 corr mission inte rvie' i of Shapiro i I l 1969 Si -angely all that Sb apiro was asked in that intGrview as whetb er e llad ever di TUlged any classified ir f rrnation and not wb ether he had pa -tici a'tl d i I l a' divers·io n of material The ABC iI _ves'tigation was discontin l d i L September 1969 25XI £ 0 13526 J I J1 ot sUTpTisin gly Baker i'en_t to ' Pre siden t Ford vhc then ordere i the A tto rney GE neral to undeTtake an imnlediate in'vestigatioo Tb i tittle the FB n andate cove red two qu st'lons as t11ere a dive r sian and was the e a covertJp of a diversion An intensive study iIlvol ring hundreds of -interviews a full time team of 6 s enior ager ts and millions of dollar s w 3 s und ertake rl It was concluded O le welek ago The investigation was unable to uncover any evideJ lce o a theft altl ough the interviews included many curre nt and ior er NUMEG err ployees ------------- 25X 1 nd 6 O 13526 Ic ENSI IVE XGDS T e 0- E 6F ''Ud 7 oJ _ _ _ _ _ _ _ - - 445 _ _ - _ _- 1 -- 4 • 7' ' ·'_ 1 Til Q i •__ -- - -' 4b CPP-E--r if lf' r _ ur _ Jr ' l4 J - 4 JCT la 2012 i 2 27py T t -- I pc E tJ iJft E -- g eRE r- Sj NSITIV P r' J 449 3 l 1 L' 25Xl and 6 E 13526 i --_ _------------ fA ' The conclusi on fI·om all this is that while a diversion might have occurred l there is no eviCi n ee -­ despite an inteIJ si re search Cot' some -­ to 1 rove that one did F r every pie ce of evidence tI lat implies one concluslon' J ther is a DI theI piece that argue the opposite C ne is pretty much left with rnal i n g a peJ scr LaI judgm ent based Or in t inct -­ as to ' vhether tJ 'le diver sion di i or did not OCCUI SO faT' as v- pe ·know h o -veveor and we bave made sexious effo t tel discover it there is nothiJ lg to indicate active CiA pa rticipat io in thE alleged theft ' _ 1 OIl ' ere is a t er nendous a rnount of inte rest in t i5 issue in C-ongress J t ot beCa lSe 0 t e existing intelligence as pect a nd becallse of the implications fo U' S saieg'la ds standards i e r that s lch a thing could have ap·pened over 2 peTiod c f' years with' Jut being de te ted I We fci ce tough sledding in the next few' wee1 s partic ularly in view oi yl s Mid-East tl Lp i n txyi ng to 'kee p attention focused CI l ERDAl s technj cal al' g UJ er ts and if nec es sarYJ on the I lii i estigatj oL sJ and a vay fl·C m the C lA I s infcrrr ation vre run an ob iC u s r'isk in releasing this info r mation since it is q'lJ it e pos'sible that C ongIes iiona l investigations and press probings could 'lead to l aks of the s n5itive r n teriall However with all the t ublic expectation of tb e ERDA release and t e ' lmor s alre ady floating arc ndf the Iolit cal cc s ts in volved in ithhold ing the relea ie would be unac ce ptab e j 1 I I i - --­ • I - ••••••• r - 1 I 1 ifOJi E C l S NSI TNE XC _ • ' _ _ •• _ • _ __ _ 0 0 •• 0 0 • __ • • 0 '-' _-- --'---''''--- ''-' - '_'--_- ''--- - 0 • --- 0 - I • - °d 'i J 8 - t L rJ­ f I 1l _ __ -- _ __ _ Ll _ 0 0 • -' T - -r 1 ' 0' ' 1 -' ' k 'r JJ u JCPIitCW I'r r ll ' '1 - - -----