Special Security Inspection(Classified)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04007A001000050013-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 9, 2016
• Document Release Date: August 18, 2000
• Sequence Number: 13
• Publication Date: September 8, 1949
• Content Type: MEMO

Approved For Release 2000/09/08 : CIA-RDP78-04007AO01000050013-2
Approved For Release 2000/09/08 : CIA-RDP78-04007AO01000050013-2
 Approved For Release 2000/99/08 : CIA-yRyDP78-04MO A001000050013-2
:ROM
",';ie assistant Director, USU
CYLef, :Jlispect*on and security
Chief, Inspection Branch
DATE: Stv S 1949
WBJECT: Special security Inspection of the
25X1A5a1
25X1A
1. t1i]'1't10tWi'1 tt:d1J I'aS'S:LUN
1. r'ursuant to oral instructions from the Chief, Inspection and
Security a'special security inspection was matte by 25X1A9a
25X1 A9a~ut on AuLust 2j, 24 and 2>, 1iu'J, of tree security con- 25X1 A5a1
t f thm
s
s connected with the class1 L eu contra,
o now being 25X1 A
25X1A
peri"onaed for CIA (OSO/Commo under nine ers 25X1 A
Uir'V.
2. inWpectiou included the checking or observation of the con-
trac i,or ' s offices :u-Id, plant with particular reference to physical
aspects arai controls related to security and protection; the procedures
for ;site selection and control of personiiei.; Laid the safeguarding of
ci.assiiied information, documents anu material.
25X1A5a1
main Dilice wiu p.L ft :L-,, hou:,c.ci in
i. l ilo
ILL tei Uto area 25X1A
iwucarrl ;aarluiLactur114 typo luitl?s covei~!.ng approrii
of a city clock in a suburban cos merciLJ: aistiict of
entr aces from tine street to the buildings and grounds are guarded
by uni creed guards. Satisiactoi-y security procedures &na contro:J.,s
are in effect to retvlate aunlittance ana egress of visitors ana eia-
ployees.
2. ijiovriedge of the evasterlce of contracts with Clti is the sensitive
iea-cure of the subject contracts. This knowledge is restrictea to
appro-xinlal?ely thirty-five persons in tiie company. The names of '-?nose
persons to 'rmow of or are in a position to learn of these contracts
are listed in Tab A. This inspection aisclosea that the names of
ei?;iiteen persons uj the categories iii itiored above had not beers con-
;;iucveu Lor uubmiLii-al to LIA for security clearance. O'A:iicial:; (mil
tca iiz+t ouch L;UUIni tta1 wol.i.}_o b ;i,;AIe
tde (:Cirpor~, 't o 1 u"! `
U"1st:ioseU lout procedure Vr,LtXJ:Ln CIA do not lrl.iurc. triE ti-
of all nww.s concerned, vith classified contracts for security c1.6c" I
ante; personnel security clearances are performed by I ,- b on a name
chock basis; USJ is not fi.ed of the results of name checks which take
ce Memorandum ? UNITED STATES GOVERNMENT
Approved For Release 2000/09/08 : CIA-RDP78-04007A001000050013-2
 Approved For Reise 2000/09/08 : CIA-RDI?78-04 07AO01000050013-2
appro:cimately from three to six weeks to perform; contractors
are not notified it the checks are negative; employees are
engaged in, clus::i.tied work oefore security clearcu,cP checks
aro ,;,a,ue, auu continue oil such e:'g;loyme.,t unless the coritr,.:ctor
is notified that derogatory information teas. been developed; a
record of tiic: status of security clearances on nsaies F;ut,LZitted
by contractors is i:rai.iitained by Coi aunications Division
uSU
,
.
25X1A94`" (CSO/Cor ao) woes not consiaer the function
of iaintaiiing security clearance records as properly belonp.ng
to his office.
i
3. T1ie actual aevelopment y;ork on performed
by four persons, is in a physically restricted and rigidly con-
trolleci area of ' the plait. Clas si ti ed Army siui Davy contracts are
also beijif~- performed in this area unuer security regulations of
25X1A5a$hese Services. - of'f'iciai_s stated that the Depart ants
of Array 4L Navy are interested in. the equipment being developed
for Cud and ini'
r
atjo
n
ri
o
n concel
irit; it has been supplied them with
25X1A9a. perrlisl;ion of izr
(USG/Coi.~rrmo).
25X1A 4. Coi'cra.l t is for a standarc item of equipment, out
tiie identi y of Cliff with the contract ana the quantity of tue
order is considered as classified information. Officials of the
company .;e~?e cognizant of the need i'or safeguaruing the identity
of C.iA and had planned to ao so in shipping anc. billing, but t;iey
were con:ubed by the apparent lack of instructions or conflicting
or unexplained instructions in that connection. it was noted that
the on j; iral purchase order (s'o3:.i i c - i Oj ), issued preliirdnan to
t.ie executed contract, instructs that shipment will be made to
"Central Iiitelligehce :Lgeucy." the company officials were acivisea
"supply Ulficer," using the
i'arylanu, as set for Lei in tiI , Contract. .iiie ufi'iciai.s e. z
r
d
p
essc
concern re
Z~I and iiit; the iu