C05674849 PROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 o @ f AAct - b 3 ·c1AAc t _____ ··--I ------ 26 Augoo t 1977 MEMORANDUM FOR THE RECORD SUBJECT · Briefing of Representative K Udall Democrat Morris on the NUMEC Case b 3 NSC b Arizona · b 3 NSC b 3 CIAAct 1 Background Representative Udall's office made arfange· ments via OLC to recieve a background briefing on CIA rs kn bwledge of the key issues involved in the NUMEC diversion case · Jj 'sa re ult ···· on 23 August 1977 Mr Shackley - ADDO OLC and · PCS Staff met with Representative Udall at his office Also- in attendance was Mr Henry Myers Special Consultant Nuclea Energy House Committee Internal Insular Affairs 3 _c ____ _AA··••••• c t on 2 Briefing Representative Udall opened the meeting by stating whatever information CIA could give him that he- would appreciate which would put into perspective the Agency's knowledge of what wer the key questions that were involved in the allegp tions that a diversion had occurred from the NUMEC plant at Apollo of nuclear materials Pennsylvania Mr Udall indicated that he had become interested in on the NUMEC situation as a result of recent press commentari es this matter as well as data which was available to him frorn his membership-in various··congressional committees Mr Shackley responded to Mr Udall by suggesting that we give him a brief overview presentation in which we would outline the nature of CIA I s knowledge of the NUMEC ·situation This proposal was agreeable to Representative Udall therefore Mr Shackley drew on the attached to make his presentation on the NUMEC talking paper outline in· order diversion issue After Mr Shackley had sketched out his views on the NUMEC situation there was a question and answer session in of information between Representative which there was a free-flow Udall Mr Myers and the CIA representatives The key questions 'tp 3 CIAAct b CIAAct _11 ------------------------ _____I '-r-- •· -- I C05674849 PPROVED FOR RELEASE - CIA NFODATE 25-Au -2015 ' ' b 1 JX3 CIAAct · b 3 NatSecAct E' 13526 3 3 b 6 25Yrs -2- - _ · hat emerged dur-ing this portion of the meeting t them are outlined b elow tb - CIA I s answers ci nd the essence · of CL a principal Question NUMEG Did CIA jnterview Mr Corporation officer Sha piro 6 the Answer No The point was made th t CIA had asked the ·Justice Department in April 1968 to investigate Mr Shapiro in order to establi sh the nature and extent of his relatioh- ' snip with the Gov rnment of Israel b Question Was Mr_ Shapiro interviewed by the FBI Answer • The Agency ·of any·direct debriefing ·of the FBI It was indicated should really be answered I l the · • · hc1 s·--noknowledge Mr Shapiro-by· that this question E 'BI In by •• w •• i_·· b 1 b 3 NatSecAct EO 13526 3 3 b 6 25Yrs SENsJiva RET A liii2WIP-' b 3 NSC C05674849 PPROVED FOR RELEASE - CIA NFO DATE 25-Au -2015 s -3- c Question Is it possible that President Johnson who was known to be a friend of Isra l could have encouraged the flow of nuclear materials to_ the Israelis Answer There is no information in the CIA files which are curr'ently available to us which would indicate that President Johnson had ever undertaken-any action whicq would have resulted in a di-version of nu lear - b 3TNS0-----------------materials to Israel In this connection b 3 CIMct ------Repre-senta ti y __ pdall was told of the vign tte ss ------ ------a ad learned -·-· _ f' b 1 l b 3 NatSecAct EO 1 526 3 b 6 2 5Yrs 1 I l _ I I I I I I ' t----------ir------'- -- with -r------ J It was stressed '-----------------' to Mr Udall that this story had· been told to · Mr Duckett by Mr Helms There is nothing in writing in CIA files concerning such an event It was suggested that this aspect o the problem could only'be- purs11ed 1 y Mr Udall discussing the matter with those who might have a first-hand knowledge o f the events which transpiredin -the period around 1968 Question • If a- diversion of n11clear materials ha d been authorized -by-the- policy-levels of the United States Governxnent how could this effort have been carried oul d Answer In the initial response to this question_it was noted that Mr Udall was posing a hypothetical question As a result it was stated that there was no real answer to the question j fdid_ ate however that the nature of the nucleal '-- material which was at UMEC would cf haiig I I • I SENs'¢ve RET 2s x1 C05674849 PPROVEDFORRELEASE- CIA NFO DATE 25-Au -2015 it l I SEN ITJYE 1 1 o' 3 NatSecAct -4 E0 1 _35263 3 b 6 25Yrs 1 b 3 NatSecAct · · E0 13526 3 3 b 6 25Yrs 25Xt- _ · made i·t material possible for someone to smuggle th'i s out of the· United States · __ ________ __ In this connection Mr Shackley stated tha t he andl f--------- b CIAAct had beeri told a story by Mr Duckett that at least one v isitor to the NUMEC plant had · · said that securi procedures at the installation were so lax It was also --- ------------__J point ed out to Representative Udall that NUMEC -had a contract for sending irradation equipment · b -1 b 3 Nat$ecAct i 526 33 r J to Israel ___ _ _ ' I · I I I I fasx1 b 1 b 3 NatSecAct IEQ 13526 3 3 b 6 25Yrs I SEN VE · ET C05674849 PPROVED FOR RELEASE - CIA INFO DATE 25-Au -2015 · sx1 ll 1 b 3 NatSecAct E0 _13526-3 3 b 6 25Yrs • h NUMEC 'i 1 Question diversion Is ther _·an issue · official CIA report on the Answer M r Helms as DCI wrote a letter· to Attorney General Ramsey Clark in April 1968 in· which he asked £or an investigation of tvfr Shapiro 'in terms of his relationship with the Government of Israel It was pointed out • however that in one paragraph of this letter there was· a reference to material unaccounted for at the NUMEC plant It was also stressed that CIA had never obtained any hard intelligence hich clearly linked _ ---------- NUMEC to the subsequent production of uraniumbased nuclear weapons by Israel I ·I i I · · · b 3 NatSecAct j b 1 25X1 EO 13526 3 3 b 6 25Yrs SEN iive syRET C05674849 PPROVEDFOR RELEASE- CIA INFODATE 25-Au -2015 f -6- 0 0 1 b · NatSecAct EO f3-5f6 3 3 b 6 25Yrs · i matter i I I Question What is CIA doing now on the NUMEC Answer The Agency is not involved in any · investigation of NUMEC The point was made that on 9 May 1977 the kgency had once aaain briefed the FBI on CIA I s At at pom t the FBI had told CIA that they were still conducting an investigation of the NUMEC Corporation It was stressed however that CIA did not 1 nowat- this point in time whether this investigation had been completed or not · '----------------- ' 3 Comment Representative Udall stated that he had found the23 August meeting very useful In this context Representative Udall made the point that he would be discussing the NUMEC diversion issue A the completion of his conversation with with the FBI on 23 August the FBI RepJ esenta tive Udall indicated -that he might want to return to CIA to pursue additional questions - b Associate Attachment Talking Paper Theodore Deputy G Shac'lffey Director for Operations Outline DistJ hution · - ADDCI w att 1 - DDO w att I - OLC w att I - C SIA w att SE Slt E SE • ET - - ·