Page 113 of 703

. EE ———
MORI DocID: 1451843
Lo i pe
: . . van !
SUBJECT: Sensitive Activities Performed by the Office of

Logistics

. action would be more economical and eliminate the need for
one agency of the Government to duplicate facilities
readily available from another. A typical example of this
procedure is purchasing photointerpretation gear for the
Defense Intelligence Agency element located at NPIC. In
connection with the current reporting requirement, however,

. I have had our records researched for the past 2 years and
Attachment 1 reflects those transactions which appear to be
relevant to the subject of this memorandum,

d. In connection with the disclosures during the sum-

mer of 1971 that the Rand Corporation was not properly
safeguarding classified documents, this Office undertook
two acts. I directed the Security Officer from our West
Coast Procurement Office at the Moffet Naval Air Station
in California to visit the Rand Corporation and satisfy
himself that classified material furnished them by the
Agency was both properly safeguarded and accounted for.
His report was affirmative. On 23 August 1971, the senior !
Security Officer assigned to this Office forwarded a .
letter to the Rand Corporation stressing and reaffirming

: the procedures Rand must follow in safeguarding classified
information furnished them by the Agency. Of residual

: interest in this matter, there is summarized the contents

i of a memorandum of 2 July 1971 to the Executive Director-
Comptroller from the DD/I which is in our possession.

This memorandum reports that FBIS regularly So
disseminated reports to the Rand Corporation EE
but that instructions had been issued to cease SE
distribution of classified reports. While no :

| ‘other direct dissemination went to Rand, other
USIB agencies, primarily USAF, were passing
’ - "many" copies of DD/I products to Rand as au-
thorized under USIB regulations. The memoran- i Fa
. dum also states that Rand personnel had
requested searches and document retrieval from
B the CRS facility,
5. In connection with action taken for the Office of
Security, there are three relevant items:
- a. The Printing Services Division, OL, was requested
. by the Office of Security to print a book written by
Harry J. Murphy, Office of Security. The book was pre- .
pared by Mr. Murphy under a Brookings Institution Federal .
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