LETTER TO ALAN T. WATERMAN FROM ALLEN W. DULLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R001100030010-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 47
• Document Creation Date: December 14, 2016
• Document Release Date: May 1, 2003
• Sequence Number: 10
• Publication Date: November 18, 1958
• Content Type: LETTER

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 Executive Registry
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tai( n !I o -.Sog~_I
Dr. Alan T.
Director Niktional Science Foundation
Washington 25, D. C.
A ncy will be to pxovidez VhOtt Information
available as recg p*steai in your 27 .#we letter with
regard to scientific research a msnpo' r sseeta of seLec
foreign countries.
Divi on,, Office i.'lt~IiuriG 3.~i jAnce., to work
tai.
I have ask, t.$ie ", rtw4wwn
tines of the National :3cie oe Foundation. Re
to provide pr t
.en W. Dulles
Director
Distribution:
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osl/FSDA k dgrr (!!; July 58 )
STAT
STAT
STAT
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Deputy Director me nce
STAT
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.,IL 1958
a11
BRIEF FOR: Director of Central Intelligence
SUBJECT : Acknowledgment of Request
1. This letter is an acknowledgment of the 27 June 1958
request of Dr. Waterman, National Science Foundation, for
support of a NSF project to compare Western and Soviet Bloc
Scientific research and manpower.
2. In accordance with the request it is recommended
that Chief of the Fundamental
Science Division, OSI, will consult with Mr. Thomas J. Mills,
Program Director, Scientific Manpower Pro am, NSF, to carry
out this responsibility. I Imet with NSF
personnel on this matter in March 1 5 .
Acting Assistant Director
Scientific Intelligence
STAT
STAT
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6, 1958
O iGN COUNTRIES
I. Bcono
A. ids for scientific research and development
1. Fields covered (natural sciences and engineering,
possibly social sciences)
2_, Definition of r & d to include basic research, applied
research, and development
3. Performance by groups, such as Government., private,
educational and other non-profit Institutions
4. Sources of funds - private industry, educational. and
other non-profit institutions, and verwient
B. Scientific and technical manpower
1. Fields covered (engineer'ng, natural and social sciences;
clans; college and high school teachers an these
de - See II)
2. Supply
Type of employer such as Governiient, private,
education
(b) 'T'ype of function
(c) Income
(d) Level of education and training
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4. Utilization
ii. Education (
info of sciert.-il.sts, engineers and tecx-mic:iane
particular reference to science and engineering.)
nd data on educational system; its character, scope, etc.
C. students
1. gnroll nt
2, Attrition
3. graduations
4. lost- :e.duation activities
D. Faculty ($econdar.1 and higher education levels)
cal plant
. Institutional or
ation and factors affecting scientific
.rower, education, and research
A. Legislation
B. Policy statements and adxi7.ni.strative orders
0. r_473* of control and institutional fra rework (single-times
g)
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"D LDM E
20 March 1958
HJ}I0RANDUN FOR: DIRECTOR OF CENTRAL INTELLI( VCE
VIA : DEPUTY DIRECTOR (PLANS)
SUBJECT : Suggested Letter for Signature
REFERENCE : Letter to Director of Central Intelligence
from Alan T. Waterman, Director, National
Science Foundation dated 19 I-larch 1958
1. This memorandum suggests action on the part of the Director
of Central Intelligence. Such requested action is contained in
paragraph 2.
2. Attached for your signature is a suggested letter acknowledging
receipt of the correspondence from Alan T. Waterman, Director, National
Science Foundation,
25X1
KING
Chief, Western Hemisplre Division
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ti r~~t.~~~.a5_:
20 March 1958
F+OI$r D TOR O QVITR AL INTEUIUENoE
$ l Uff D cTOR (PLANS)
Suggested Letter for Signa-:ire
CE t Letter to I)ireptor of Central lntofligence
from Alan T. Waterman, t'irector, Nations.
Science poun'zatian dated 19 March 198
1. Tide memoraz t* eugge;ate actio2. on tJ a Part of the Director
of Central int .l.igence. Soach recluse e ,,ion is contained in
paragraph 2.
2. Attached for your signature is a suggested letter acknowledging
receipt of the corrospondez?ce from Alan T. Waterman, Director, National
deuce ; oufldatiot
J. C. KING
Chief, Western Hemisphere Division
At~tactmiernt
cc* ACCT
011
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STATEMENT BY ALAN T. WATERMAN
DIRECTOR, NATIONAL SCIENCE FOUNDATION
EXECUTIVE AND LEGISLATIVE REORGANIZATION SUBCOMMITTEE
OF THE COMMITTEE ON GOVERNMENT OPERATIONS
HOUSE OF REPRESENTATIVES
January 15, 1958
Mr. Chairman, Members of the Subcommittee: Events of
recent months have brought into sharp focus research and
development activities in the United States, as well as the
education and training of our young people, particularly in
science and technology. It is therefore most timely that
this Committee should undertake a thorough review of Federal
responsibilities in those areas with a view to improving the
situation wherever there seems to be a need. I am happy to
appear before you this afternoon and to place in perspective,
if I can, the objectives and operations of the Federal Gov-
ernment in supporting and fostering scientific research and
development and education in the sciences.
1. The relative place of the United States historically and
currently in the world of scientific thought, activity
and development.
The half century just past has witnessed the phenomenal
rise of American technological development to the point where
the United States occupied the position of unquestioned
leadership. The growth of the United States as a great in-
dustrial democracy began at about the time that new sources
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of power began to be cheap and widely available. It was an
American, Eli Whitney, who is better known for his invention
of the cotton gin,-who also invented the principle of inter-
changeable parts and thus helped to lay the groundwork for
an era of great industrial expansion based on the growing
capacity for mass production. The history of this period
also witnessed the rise of a number of great industrial firms,
such as General Electric, Dupont, Western Electric, Westing-
house, and others. It was firms such as these, whose future
depended on new advances in technology, that marked the
beginning of large-scale industrial research in this country.
The inventive genius of such individuals as Bell, Edison,
Morse, Whitney, and others laid the groundwork, but it was
obvious that in order to maintain their own in the face of
keen competition, each company would have to seek constant
new refinements and innovations. Since World War I, the
United States has led the world in applied research and
technology. In fact, we have come to take that leadership
so much for granted that the recent evidence of serious
challenge to U.S. supremacy from the U.S.S.R. has come as a
rude shock to most Americans and has brought about a period
of intensely critical self-examination and analysis.
The more scholarly type of scientific research into the
secrets Of nature that we describe as basic or fundamental
research developed less rapidly in the United States.
Although the early history of science in the United States
is distinguished by such brilliant names as Benjamin
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Franklin, Joseph Henry, and Willard Gibbs, the United States
was largely preoccupied with the problems of an expanding
frontier economy. We turned to Europe for our basic knowledge
and then applied it with brilliant success.
Our own development in pure science may be said to have
begun in the 1920's and has grown rapidly ever since. Whereas
a few decades ago science students flocked to Europe to get
their training, in more recent years the trend has been re-
versed. Some indication of relative standing in quality of
research among the nations is to be found in the number of
Nobel Prize winners. Although the number of Nobel Prizes in
science awarded to the United States was low during the early
part of the century, it has increased greatly in the last two
decades. However, we may not have done so well as other
countries in relation to total population. Germany, before
1933, had probably achieved a research strength relative to
its population which we have not yet reached. Of the large
nations, the United Kingdom has been, and probably still is,
at the top in numbers of distinguished scientists and quality
of research in relation to population and income. One might
add, also, that on a relative basis, small nations like the
Scandinavian countries, the Netherlands and Belgium have done
extremely well.
As for the U.S.S.R., the evidence increasingly shows
that as a result of the concentrated efforts of the last few
decades, the U.S.S.R. .is producing numbers of competent
scientists which constitutes a maximum in terms of their
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total potential. This is an imposing fact. Whether by this
means they can succeed in their expressed ambition to domi-
nate the world in scientific and technological achievement
remains to be seen. At present they are not considered to
have clear leadership in any field of basic research, except
in Arctic research and in certain areas of geophysics. They
are excellent in mathematics, astronomy, and theoretical
physics, for example, and quite weak in biology. However,
they are providing their scientists with modern research
facilities at a rate that will be hard for us to match, even
if we put forth a strong effort, which incidentally we have
not yet done. In all fields they have high respect for
scholarly work, whether applicable or not.
The moral to be drawn from all this is that the relative
strength in fundamental research of the European countries is
the result of their genuine respect for learning, for teach-
ing, and for fundamental research--an attitude which we as a
people have never had to the same degree.
2.: A summary of the relative positions of the United States,
the Free World and the Communist World with respect to
scientific education and manpower.
Let me begin by saying that it is dangerous to assume
that any single country or group of countries enjoy a natural
superiority over others in the matter of brains and intellec-
tual capacity. All the evidence points to equal intellectual
ability on the part of all nations, particularly those that
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have developed traditions of education. This category would
include, for example, in addition to the Western World, India,
Japan, and China. It follows then that the potential scien-
tific manpower available in the countries of the world is
probably the same relative proportion of the population in
each. Therefore, the only advantages in technology enjoyed
by any nation lie in the strength and breadth of the general
education system, the degree of development of aptitudes
among the people for science and engineering (as well as in
other fields), industrial experience and know-how, and last
but not least, the interest and the determination of the
people to develop scientific manpower and scientific activi-
ties.
At the present time, the U.S. lags behind most other
countries--certainly all of the leading countries--in the
understanding, respect, and prestige accorded learning in
general and science in particular. The U.S.S.R., on the
other hand, has demonstrated great singleness of purpose and
has evolved the most effective procedures for concentrating
upon the education and development of scientists and engineers.
It has also solved the problem of providing scientists and
engineers where needed, either for research or for teaching.
In the recent report by Senator Henry M. Jackson, "Trained
Manpower for Freedom," he observes that "Scientific manpower
is being graduated in the Soviet Union at a present per capita
rate approximately twice that of the NATO community as a whole.
Russia now turns out more scientifically trained people than
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any western nation and is accelerating the output at a higher
rate than any nation. Furthermore, Soviet instruction is of
high quality."
The weakness of the Soviet system lies in the probable
incompatibility of developing free research to the utmost
under a totalitarian system. Furthermore, it is questionable
whether under the training given in a totalitarian system
scientists and engineers can acquire the same breadth of view
and insight which come with a free system. However, whether
these weaknesses constitute a serious threat to the continued
advance of the Soviet Union remains to be seen. In any event,
in the short term their system must be regarded as formidable,
and it should be clear that the only advantage which the
United States can hope to achieve depends upon the quality of
performance. This in turn depends upon the kind of coopera-
tion and broad know-how that come only from well rounded
tradition and experience. We are now realizing that the
breadth we have is not enough unless it includes a full
complement of top-notch, highly trained and imaginative
specialists. Among the latter, scientists and engineers of
the highest quality and in requisite numbers are indispensable.
3. Scientific fields An which the United States has lagged
and in which it has forged ahead, and the effect of the
activities and policies of the Federal Government in
such cases.
In general, the United States has made the most notable
progress in the fields of research that underlie the principal
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tech +a .n us r es. Such fields include electronics, solid-
state.physics, high polymer chemistry, biochemistry, nuclear
physics, computer design and technique, a number of fields of
biology, agricultural research, low-temperature physics, applica-
tions of nuclear energy, and certain types of space research involving
rockets and balloons. We have lagged most conspicuously in the
earth sciences, a category of research that includes such important
fields as meteorology, oceanography, geophysics, certain fields
of geology, and now the opportunity for satellite research of
outer space.
United States facilities for research and development. are
in many respects outstanding. Both industrial and Government
laboratory equipment, test stations, and other installations
have been models for the rest of the world. By contrast,
college and university laboratories have been showing great
need of renovation, new construction, and modern equipment.
Scientists returning from the U.S.S.R. report that great
effort is being expended on laboratories and instruments; and
even in the case of such costly equipment as high-energy
accelerators, no expense is being spared to make them as
efficient and advanced as possible.
Effect of activities and policies
of the Federal GUVerament.
Generally speaking, with the exception of agriculture,
it is only since.World War II that Federal policies and
activities in support of science have begun to be felt in a
national way. Prior to that time, Government participation
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in, and support of, scientific research and development was
on a relatively small scale. Excellent results were produced
by such agencies as the National Advisory Committee for Aero-
nautics, established in 1915, which conducted an outstanding
program in aerodynamics; certain branches and departments of
War and Navy Departments were producing valuable results in
their laboratories; and, of course, such scientific activi-
ties as agricultural research, Public Health research, and
the National Bureau of Standards were of long and honorable
standing within the Government establishment. But it was the
full impact of science and technology upon military weapons
and strategy during World War II that brought not only expan-
sion of the Government's research and development activities
in its own laboratories, but introduced the widespread use
of the research and development contract as a device for
securing needed results in a minimum of time. Under the
auspices of the Office of Scientific Research and Development,
the Government contracted for research on a wide variety of
problems ranging all the way from the development of DDT and
penicillin to the research that led to the first atomic bomb.
A major feature of the war effort was the major role played
by the colleges and universities in carrying on research and
development under Government contract.
The effects of Government policies and practices in
support of research during the war were obviously good. Not
only were the major weapons and devices that played a crucial
role in the war produced under this system, but support was
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also given to a certain amount of fundamental research, and
the effects were found to be desirable. The continuation
of Federal support for research and development by contract
and by grant by such agencies as the Department of Defense,
Atomic Energy Commission, Department of H.E.W., and others
has produced excellent results for the Government. Neverthe-
less, there is a growing concern lest the extent of the
Federal research and development program encroach upon the
universities' normal functions of teaching and research.
It has become apparent that the universities are depend-
ing more and more upon such contracts and grants to support
the research of regular departments of the universities, par-
ticularly in the fields of the physical sciences. This
situation is partly the result of the Federal Government's
cautious support of basic research as contrasted with the
heavy support for applied research, development, and engineer-
ing. Although the basic research programs of such agencies
as the Office of Naval Research, National Institutes of
Health, Atomic Energy Commission, the National Science Foun-
dation, and other agencies have won the respect of the scien-
tific community, there is general agreement that the total
effort has been far too small. For example, since the estab-
lishment of the National Science Foundation in 1950, requests
for assistance to the Foundation alone have exceeded the funds
available by four or five times, and the Foundation could have
supported about three times as many meritorious applications
as it has been able to support with the funds available.
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Although up to now the Federal Government has provided
significant support for wind tunnels, computer development,
nuclear reactors, and accelerators, the lack of Federal funds
for radio and optical telescopes, and oceanographic vessels,
has been a contributory factor in the lag of the United States
in these fields. In oceanography, for example, it is well
known that the Soviet Union has in service several major
research vessels constructed and equipped for oceanographic
research and operated under the direction of scientists.
The United States has no comparable vessels of its own, and
the two or three ships being used for this purpose are re-
constituted vessels, entirely inadequate to the need; in fact,
one of the principal vessels in use looks as though it were
left over from a whaling fleet.
4. The proper place of Government in scientific research
and development. Is Government support necessary if
the United States is to keep pace in the world of
science?
It is becoming increasingly clear that a major respon-
sibility of the Federal Government with respect to science is
to see that both research and education in the sciences re-
ceives support, encouragement, and all necessary measures to
maintain the scientific and technological power of the United
States. A second responsibility is the adequate support of
research and development necessary to the missions and special-
ized programs of the respective Federal agencies.
In general., research and development in support of agency
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missions has received the major share of the Federal Govern-
ment's interest and support. In the Department of Defense and
defense-related agencies particularly, the objectives of such
research are readily identifiable and have been given priority
of attention.
Until recently, the advancement of science generally and
the effective training of our scientists and engineers has
not been viewed as a major area of concern for the Federal
Government. It is becoming increasingly clear, however, that
we are in a race for technological supremacy and that our
very survival may depend upon the high quality of our scien-
tific effort. It is now beginning to be understood that the
maintenance of technological pre-eminence depends fundamentally
upon two important factors: full support of basic, long-term
research, even though its ultimate application cannot be pre-
dicted, and the training of high-caliber students in science
and technology in sufficient numbers to meet the needs. The
tine element is now so crucial that we can now no longer
leave to chance the possibility that gifted students with
aptitudes for science and technology will be identified, moti-
vated toward those fields, and educated up to their highest
skills. The upsurge in student population which will over-
whelm our colleges and universities in the next decade will
take so much attention, money, and effort that the problem
of special attention to the gifted becomes a matter of major
national concern.
It is obvious from relative population figures that
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the United States is outnumbered, and will continue to be out-
numbered, by the Soviet Union. If we are to hold our own,
therefore, we have no choice but to concentrate on quality.
This means that there must be a radical change in our national
attitude toward learning and toward teaching. The Federal
Government must assume responsibility for what cannot be done
on a local basis, or cannot be done in time, in order to
insure the high quality of teaching in all the fields of
science, and to insure, also, that every needed step is
taken to seek out and educate the gifted in all fields, and
particularly in the technical fields where the training is
longer and more exacting than in some others.
5. Major area of deficiency in Federal expenditures in
fields of scientific research and development.
By all odds, the major area of deficiency in Federal
Government expenditure for research and development at this
time lies in the inadequate support of basic research and the
facilities and equipment needed for basic research, especially
by colleges and universities. According to the most recent
issue of the Foundation's annual study, Federal Funds for
Science, "More than 60 cents of every dollar for research and
development is obligated for development; less than 40 cents
for research, both basic and applied; and approximately 8
cents of the latter goes into basic research. In fiscal year
1957, total obligations for development amounted to $1.7 bil-
lion; for research, $964 million, of which $218 million was
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obligated for basic research."
As I mentioned earlier, an important factor in the sup-
port of basic research is the increasing size, complexity, and
consequent cost of equipment and facilities needed for basic
research. Although such major items as high-energy acceler-
ators, nuclear reactors, and electronic computers have
generally been provided by the Government for work to be
done under contract, such equipment has been far less avail-
able to the universities for their own research programs and
for the important function of training young scientists in
the special techniques required by such modern instruments.
The costs of such equipment run into the millions and hence
are beyond the resources of most universities, or even groups
of universities. Nevertheless, a number of universities have
displayed a strong desire to acquire such instruments by sup-
plementing Federal monies and by pooling resources so that a
major facility could be made available to all the universities
within a given locality.
The Federal Government must be prepared to expand its
support of the types of facilities mentioned, and to extend
such support to include oceanographic vessels and special
laboratories and field stations in polar, tropical, marine,
and arid environments. The lack of such equipment and facil-
ities in the very basic fields of the earth sciences is one
reason why United States research tends to lag behind that
of other countries in those fields.
At this particular time, attention centers in the area
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where the United States conspicuously lags and that is the
field of space technology. Although we have actively and
brilliantly. pursued upper-atmosphere research by means of high-
altitude balloons, rockets, and combinations of the two, our
satellite program has not yet materialized. The capabilities
of the Soviets, as demonstrated by their performance in
successfully launching two earth-circling satellites, opens
up whole new vistas for the future of space research and
technology. Only a determined effort on our part, properly
organized, with adequate funds, facilities, and competent
manpower, can close this gap.
It would be a mistake to regard space research as primarily
a military problem or to pace its progress with that of the
missiles program. The earth satellite is a powerful new
scientific instrument, capable at present of providing
much needed data about the outer atmosphere and about the
character of the earth and its environment as viewed from
outside. From an instrumented earth satellite to a research
observation platform in space is but one additional step.
The scientific data that these instruments can furnish will
provide much of the knowledge needed to determine whether space
travel is feasible or valuable. The new knowledge to be gained
through research with satellites and space rockets may have
practical consequences of the same magnitude as those based
on nuclear research.
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6. The efficiency and economy of the organizational structure
through which the Federal Government plans and conducts
its research and development activities, including a de-
scription, the agencies which are involved, and the major
relationships among them.
The organization, planning, and conduct of research and
development by the Federal Government is a large and complex
problem, requiring continual examination and review in the
interest of balance, adequacy, and coordination. Part of the
problem stems from the size of the operation. The estimated
level of Federal expenditures for research and development in
fiscal year 1957 was $2.8 billion, an amount far in excess of
any comparable effort by private industry. Another part of
the problem stems from the wide diversity in the scientific
activities being supported by the various agencies of the
Federal Government. Some 23 departments, offices, agencies,
and establishments of the Executive Branch of the Federal
Government administer funds for scientific research and de-
velopment. In fiscal year 1957, the Department of Defense
and the Atomic Energy Commission together accounted for 85
per cent of the total funds. Other agencies with substantial
research and development programs include the Department of
Health, Education, and Welfare, Department of Agriculture,
National Advisory Committee for Aeronautics, Department of
the Interior, Department of Commerce, and National Science
Foundation. The other 15 agencies account for the remaining
one per cent of the total obligations.
The major programs of the agencies enumerated evolved
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over different periods of time, with differing objectives and
procedures. It is therefore difficult, if not impossible, to
apply a common yardstick against which the programs of all
the agencies could be rated in all respects in terms of
efficiency and economy. For example, the problems of admin-
istering an agricultural research program, through the state
experiment stations, or administering a grants program for
basic research in the colleges and universities, are so
different from the problems of administering an interconti-
nental ballistic missile program that it is quite impracticable
to attempt a comparison except in the very broadest terms. By
the same token, the establishment of a single department of
science and technology, far from providing a solution to the
innumerable and widely differing problems inherent in the
over-all Federal research and development program, would
create additional problems.
Despite the differences in the various governmental
research and development programs, however, there is good
coordination and understanding among them. One thing that
all research and development programs have in common is sci-
entists; and scientists are thoroughly accustomed to working
cooperatively and to keeping themselves informed of what is
going on in their own and in related fields. Failure to do
so is to commit professional suicide. Except where security
provisions are involved, scientists exchange information on
their work in the Government as they do on the outside; they
publish in the same journals; they attend the same meetings.
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In addition, other measures designed to bring about a more
formal exchange of information have been instituted. The
Interdepartmental Committee on Scientific Research and Develop-
ment, consisting of the directors of research in all the
agencies with major scientific research and development pro-
grams, affords a forum for consideration of common problems
such as administration, personnel and scientific information
exchange.
The research and development activities of the Depart-
ment of Defense and the National Advisory Committee for
Aeronautics are closely coordinated in order to avoid
undesirable overlap in their developmental activity. Similar
coordination is effected among the National Institutes of
Health, the Atomic Energy Commission, and the Department of
Defense in the fields of medical research.
The Foundation maintains a central register of basic
research projects being supported with Federal funds, outside
the Federal Government itself, in the life sciences, social
sciences, and the mathematical, physical and engineering
sciences. These records are compiled and published at
regular intervals so that each agency may have the opportunity
to review what is being done by other agencies in the same
field.
Those agencies that are supporting basic research
maintain informal working relationships with other agencies
so that action by one agency on an application for support is
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promptly known by others in the same field.
The functions of all the agencies that conduct or sup-
port scientific research and development are too extensive
and too detailed to be outlined here. The National Science
Foundation has compiled a directory of these, entitled
Organization of the Federal Government for Scientific
Activities. This document covers 347 pages and is accom-
panied by organization charts and general descriptions of the
scientific activities of all the agencies involved. It will
no doubt come as a surprise to many Americans to realize that
the Federal research and development effort is so extensive
and diversified.
In stressing the scope and diversity of the Federal
research and development program, I should not wish, however,
to create the impression that there are no common problems or
procedures, and especially that there is not room for improve-
ment in these. Certainly, there are many such areas that
would repay careful examination and attention. .
One procedure that all agencies have in common is the
budget process. Speaking as one who is not an expert in the
comparative practices of the several nations, I may neverthe-
less venture a few remarks comparing the United States with
other systems. In this country, each department and agency
of the Executive Branch, after much study and planning by
all units involved, presents its proposed budget for the
coming fiscal year to the Bureau of the Budget for thorough
examination and review, both in terms of its relation to the
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requesting agency and to the President's over-all budget.
After the agencies' budgets receive the approval of the
Bureau of the Budget on behalf of the President, they are
defended by the agencies before the two houses of Congress
and are thus subject once again to careful examination and
review. The entire process engages the attention of a sig-
nificant portion of each agency staff for a period of about
a year and a half for each budget. This system is probably
more thorough than that of other large governments. It is
also probably the most protracted. Its chief drawback is the
time lag between the initiation of plans and the receipt of
funds for carrying them out. Under most other systems, as
I understand it, the budget is prepared by the department
in consultation with the government, and the whole process
is accomplished in one step. The government's budget is
not a matter for review and debate in such a system, unless
indeed the government is challenged and falls.
Although we do not know the details of the Soviet system,
some idea of its effectiveness with respect to matters of
high priority may be inferred from a conversation between the
head of the Russian high energy nuclear accelerator project
and one of our nuclear scientists attending the International
Conference on "Atoms for Peace." When the Soviet scientist
was asked what arrangements were made for the money to carry
on his work, he replied that he and his group were not in-
volved in fiscal matters but had merely to state their needs
and construction of the accelerator began at once. Other
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American scientists returning from meetings in Moscow report
that Soviet scientists appeared to be under no obligation to
economize, as the Russian equipment was constructed of the
finest material available and quite obviously no expense had
been spared. Under this system, research projects that
enjoy a high priority would be expected to get under way a
year earlier than would otherwise be the case.
The whole budgetary process is a matter of particular
importance and concern for basic research in science because
such research involves the exploration of the unknown.
Projects in this area cannot be clearly justified in terms
of the specific promise of results. Obviously, no one can
foresee before the research begins what the results will be
or how significant they may ultimately become. Therefore,
funding for this type of research is subject to a very con-
siderable handicap in competition with funds for specific
practical purposes, the nature of which is well understood.
Because of the nature of the budgetary and appropria-
tions processes, it is difficult to make funds available for
the prompt support of sudden, unexpected developments whose
pursuit seems indicated in the national interest. In view of
the rapid pace of modern science and technology, eighteen
months or two years could well prove too long a period in
which to wait before moving into a given area. It would be
advantageous to have some sound way of dealing with this
problem. Likewise, it may be pointed out that basic research
requires continuity and stability of support, otherwise
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valuable momentum and key personnel are lost.
7. The relative efficiency and economy involved in
conducting scientific research and development
through Government facilities, universities, other
nonprofit organizations and private contractors.
In attempting to evaluate the relative efficiency and
economy of the various methods by which scientific research
and development is conducted under Government auspices, one
must first of all understand something of the circumstances
under which each method is used. The rapid growth of research
and development needs by the Federal Government in the period
following World War II has resulted in a changing pattern
by which such research is accomplished. As I mentioned
previously, prior to World War II, most Federally-supported
research and development was performed in Government labora-
tories by Government personnel. Notable examples were the
military laboratories, the public health laboratories, the
laboratories maintained by the NACA, including subsonic and
supersonic wind tunnels, and the scientific establishments
of the Department of Agriculture, the National Bureau of
Standards, U. S. Weather Bureau, and the Bureau of Mines.
During World War II, when there was clearly no time to expand
existing laboratories or to construct new ones under Govern-
ment auspices to meet the emergency, the research and develop-
ment contract came into widespread use. This type of con-
tract was awarded both to industrial concerns and to colleges,
universities, and nonprofit research institutes. This device
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proved so successful during the war that its use was continued
and extended in the postwar period.
Coinciding with the growth of the research and develop-
ment contractual procedure was the gradual evolution of the
research center and the national laboratory. This type of
institution came into being originally because several of the
universities operating under large-scale research and develop-
ment contracts felt it necessary to segregate Government work
for reasons of security, and also because staffing and admin-
istration problems differed markedly from those normally
employed by the university in the conduct of its own affairs.
Such laboratories. included the Radiation Laboratory at MIT,
the Applied Physics Laboratory of Johns Hopkins University,
the Allegheny Ballistics Laboratory of the George Washington
University, the Los Alamos Scientific Laboratory, administered
by the University of California, and the Argonne National
Laboratory, administered by the University of Chicago.
The national laboratories have achieved outstanding suc-
cess. In some cases special associations of universities
have been formed for their management, as for example, Asso-
ciated Universities, Inc., for the Brookhaven Laboratory and
for the National Radio Astronomy Observatory, and the Asso-
ciated Universities for Research in Astronomy (for the estab-
lishment and operation of a new national astronomical observa-
tory in the Southwest).
With these several methods available for the performance
of needed research and development, the Government departments
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with R&D programs have a choice as to which method shall be
used;,, There are advantages and disadvantages inherent in each.
Generally speaking, the Government-owned and operated
laboratory has the advantage of permanence and closer incor-
poration within the Federal structure, which are associated
with a continuing need in fields of research and development
for which there is no commercial interest and which may be
unsuitable for an academic environment.
The research and development contract is widely used
for large and small projects, Its advantages are clearly the
speed with which action can be taken to proceed with research
and development along lines with which the contractor has
available high competence and experience.
The national laboratory has the advantage of general
access to competent research personnel, especially from col-
leges and universities.
The research center, when established in conjunction with
an academic institution, is in an environment where the broad
background and experience of the academic faculty of the
institution may be brought to bear in a convenient consulting
manner, as well as high competence in the direction of research
projects. Historically, several of the Research Centers
developed out of an existing nucleus of talent, as was the
case with the Radiation Laboratory at MIT. The Los Alamos
Scientific Laboratory originated in the special facilities of
the University of California physics department, which had
on its faculty, among others, Ernest Lawrence and J. Robert
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Oppenheimer. Project Lincoln was placed at MIT, where
high competence in management of research and development
existed and where there were also excellent facilities for
engineering and electronic research and high-speed computation
for background.
Where speed and flexibility have been prime considerations,
it has been natural for the Federal departments and agencies
to contract for an existing Research Center rather than to
expand or to develop new laboratories of their own. This has
been particularly true in the case of the newer departments--
the Atomic Energy Commission, created in 1946, and the Air
Force, in 1947.
One may not generalize and state categorically that
any one of the foregoing methods is more efficient or more
economical than the other; for if sound judgment is used,
we may assume that the method chosen is probably the best in
a given situation. We must recognize that the pattern of
Federal research and development activities is a highly
dynamic one,,and that even as new challenges and new problems
arise, so, too, we must be prepared to evolve new devices
and techniques for meeting them.
Before leaving the subject, however, I should mention
that the wide differences in personnel and administrative
procedures employed by the Federal Government, private industry,
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and academic institutions are a complicating factor that
necessarily influences the choice of method. Government
establishments unquestionably suffer from the fact that the
ceiling .on the salaries available to scientists and engineers
.is markedly lower than salaries for comparable work in private
industry. This fact makes it difficult for the Government to
recruit and hold in its own laboratories the scientists and
engineers it needs.
Colleges and universities labor under personnel difficulties
similar to those of the Federal Government as an employer,
and sometimes in the smaller institutions the situation is
acute. However, the salary problem is offset to some extent
by the freedom for research, which is greater than in industry
or government, and the added attraction of research that is
associated with teaching. A recent study by FORTUNE shows
that a.preponderance of brilliant young American scientists
prefer the universities to industry because of the g}oeater
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appeal of academic life.
Nevertheless, effort should be made to establish better
equilibrium in the salaries for scientists and engineers,
in order that the Government may be able to acquire the staff
that it needs, and in order that universities may not be
raided of their teachers and high quality scientists.
The foregoing discussion relates primarily to the type
of research and development for which the Government itself
has a definite need. In all such cases, the Government
presumably takes the initiative in seeking out the method
best suited to the problem at hand. An entirely different
set of considerations apply to the support of basic research
where the Government's interest is the increase of knowledge
rather than the solution of a specific problem. The exper-
ience of departments and agencies supporting that type of
research has been that the research grant offers the most
satisfactory instrument for the purpose. In fact, many
features of the research grant have worked out so satisfac-
torily in practice that the National Science Foundation has
been moved to recommend that some of these, notably the
provisions with respect to the accountability for property,
be substituted for less workable provisions in the research
contract.
8. Any suggestions regarding actions Congress or the
Executive agencies can take to facilitate and stimu-
late scientific research and development in the
United States and in the Free World, or to remove
impediments thereto.
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My suggestions as to what the Congress and the Executive
agencies can do to facilitate and stimulate scientific re-
search and development in the United States and the Free
World would be, in effect, a summarization of what I have
attempted to say here today. Let me say at the outset, also,
that whatever the Congress and the Executive agencies attempt
to do along these lines can only be effective if there is
an informed body of public opinion throughout the United
States that recognizes the nature of the problem, its import-
ance, and the necessity for remedial action. Our people must
realize that they have a right to look to the Federal Govern-
ment for leadership in attacking many of these problems, but
that they, too, have a responsibility for meeting the problem,
wherever possible, at community and state levels.
As I have tried to bring out in my testimony today,
Government action is needed in the following three broad cate-
gories:
(1) Education: There must be close and continuing
cooperation between local, state, and Federal Government to
strengthen and improve education in all fields, so that our
country may have all the well-trained people needed for all
aspects of national life. There must be a concerted effort
to improve the quality of teaching in scientific and technical
fields at all levels, but particularly at the secondary-school
level where today many people are teaching these subjects
without adequate preparation. There must be an organized
effort to identify and motivate youngsters with special
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aptitudes for science and technology. Where financial support
is a problem, aid should be provided.
(2) Basic Research: The nature of, and the necessity
for, basic research is imperfectly understood by the vast
majority of people, and this has made it difficult to secure
adequate funds for its proper support and encouragement. The
most important single action the Executive Branch and the
Congress can take to stimulate scientific research and develop-
ment in the United States is to provide adequate support for
competent research scientists, in accordance with the needs
of the country, in such major areas as defense, and health
and welfare, and above all, to provide encouragement and funds
to competent scientists in basic research wherever found.
Only in this way can the United States make satisfactory
progress in fundamental science, which is the basis for all
future development.
(3) Basic Research Facilities: Facilities and equipment
for basic research, particularly capital facilities, are
urgently needed to advance the frontiers of science in many
important fields of research. The capital facilities are
national needs and only a few of each are required. However,
they are increasingly costly, and the consequent tendency to
postpone appropriations should be avoided. In this category
are included such items as high-energy nuclear accelerators,
nuclear reactors, wind tunnels, testing basins, oceanographic
research vessels, high-speed computers, optical and radio
telescopes, large facilities for basic research in meteorology--
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such as aircraft and radar--and the facilities required for
high-altitude research--balloons, rockets, and satellites.
Fortunately, not all fields of research require such costly
items as these; but unless the country is prepared to under-
write the costs of those that are needed, its progress in
science will suffer materially, since the areas of science
they represent are among the most promising for the future.
At this point it may well be asked: Why do we feel jus-
tified in urging support of all competent scientific research?
Will this not lead to an impossible economic situation, since
obviously we do not have funds, manpower, or facilities to
carry out all the promising ideas generated by the scientists?
It is true, of course, that the security of a country depends
not only upon its progress in science and technology but upon
many other factors, chief of which is the strength of its
economy. The latter, in turn, depend upon many factors, in-
cluding, of course, the proper balance among its activities.
Are we then in a dilemma? If we make the maximum effort in
research and development, do we jeopardize our economy and
therefore our security? On the other hand, if we withhold
adequate support to research and development, we may help to
balance the budget but jeopardize our security by failing to
maintain technological supremacy.
The answer, I believe, is clear. We should encourage
and support basic research to the limits of the capabilities
of our scientists and engineers. By so doing, we make
available to ourselves the full potentialities of all new
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discoveries of science. We should then give careful consideration
to which of those potentialities we should emphasize and support
for development and ultimate production. This is one of the best ways
to control the National budget. In this way we should be able to
maintain a sound economy and at the same time achieve our highest
priority goals. To support basic research fully requires
relatively modest amounts of money, except for capital facilities.
It is in the other stages of technology--applied research,
development and production--that the large costs occur. There-
fore, we are not jeopardizing the national economy in providing
full support for basic research. In fact, I must go further and
declare emphatically that unless basic research is adequately
supported, we are certain to miss opportunities for development
and application that may mean all the difference between success
or failure in the race before us, whether for war or peace.
Fortunately, there are modern processes of analyzing
the findings of science which help in selecting those that
promise the most fruitful application. Two modern techniques--
systems engineering and operations research--can give inval-
uable assistance at this stage, as they are now doing, but they
can be developed more fully.
Systems engineering or systems analysis is well under-
stood by the technical industries, which have developed it
to a high degree. It consists of a detailed layout of the
steps required to undertake a given development--its
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possible directions, its bottlenecks, its time schedule, etc.
A thorough-going analysis of this kind should determine whether
a development is currently feasible or whether it should be
postponed for future research, the general form and direction
the development should take, possible bottlenecks, time
schedule, and degree of feasibility.
Operations research consists in an analysis by special
techniques of a scientific nature that were developed during
the war and postwar period. Using the mathematical bases of
probability and other scientific devices, operations research
can predict the degree of success of a given development and
especially a comparison of the effects of the new develop-
ment upon operations as compared with current or older plans.
These techniques do not in themselves provide complete
answers as to the wisdom of embarking on a given undertaking.
However, they do provide powerful assistance to management in
making its decisions by furnishing as complete data as pos-
sible concerning the feasibility, time schedule, and degree
of success of the venture.
It is after we have passed the stages of basic research
and selection of items for development and enter the proto-
type stages that the costs begin to assume truly large pro-
portions. Here again, technology is able to effect substan-
tial savings. The high-speed electronic computer is able to
do "tresearch on research" in the sense that it can evaluate
the performance of proposed alternative types of designs,
and even of alternative weapons or weapons systems, thus
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obviating the need for the construction of expensive proto-
types. Literally thousands of variations on an air frame,
for example, can be computed as to flight characteristics.
Only those variations that meet specified performance char-
acteristics need be developed.
A computing machine can be programmed so that the
characteristics resulting from an initially-assumed design
are calculated. The calculated performance is then auto-
matically compared with what is desired and the initial de-
sign modified so as to produce better agreement. This process
can be rapidly repeated until a design is reached which should
give a fair indication of performance to meet the specifica-
tions. The whole process is carried by the computing program
in the machine without human intervention.
Full support of basic research, far from being incom-
patible with a balanced budget and a sound national economy,
is absolutely esseitial if properly understood and wisely
pursued.
In conclusion, I wish to say that I have not overlooked
the reference to the Free World as well as the United States
in the last topic that you asked me to discuss. To some
extent the remedies with which we seek to repair and
strengthen our own position in science and science education
are equally applicable to all the Free World. Obviously,
such objectives must be carried out with a unity of purpose
and in a wholehearted spirit of cooperation that transcends
national interests in the narrower sense. Most important,
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in my opinion, is taking steps to strengthen and extend
scientific collaboration between the United States and
other countries. This includes the removal of impediments
to the exchange of scientists and scientific information.
As the President said the other day, "the task ahead will
be hard enough without handicaps of our own making.""
A recent significant step was the action of NATO in
announcing the establishment of a Science Committee on
which, in the words of the official communique, "all of the
NATO countries will be represented by men highly qualified to
speak authoritatively on scientific policy. In addition, a
scientist of outstanding qualifications will be appointed as
Science Adviser to the Secretary General of NATO." This
is indeed an important move forward, and our Government can
do a great deal to insure its success by supporting the
participation of the United States in the science program
for NATO which the Committee is expected to formulate.
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MEMORANDUM FOR: MR. DULLES
You asked for the full text of Alan
Waterman's statement before the House Committee
on Government Operations.
Attached also is a letter to Chairman Moss
from General Cabell (TAB A ),,which deals with
Moss' inquiry concerning the exploitation and
procurement of Russian scien ific literature.
25X1
GATE
FORM NO. REPLACES FORM 10.101
1 AUG 54 IQ I WHICH MAY BE USED.
1471
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MEMORANDUMy FOR: GENERAL CA.BELL
The attached came in while you were away.
The Director wanted to be sure that you agree
with the action taken, i. e. , his approval and
signature.
25X1
~"?Fo-
Wei a J
FORM NO. 4 101 WHICH CMAYF BE M US10- ED.O1
I AUG 5
5 Apr 58
(DATE)
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 akM&
A
UNCLASSIFIED
CONFIDENTIAL SECRET
CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
INITIALS
DATE
1
2
VIA: DD /P
1958 24
3
4
5
6
XX
ACTION
DIRECT REPLY
XX
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks :
Per my conversation with
will you please prepare an appropriate
coordinated reply for DCI signature.
In addition DCI would like to see a
brief report of the type of assistance
Sus 2 8
FOLD HERE TO RETURN TO SENDER
FROM: NAME, ADDRESS AND PHONE NO.
DATE
A to the DCI
OTIV
UNCLA lea M
SSIVIEI) N ,
4 Mar 58
,
FORM N0. n 7 Replaces Form 30-4
1 APR 55 L I which may be used.
STAT
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TRANSMITTAL SLIP
DATE
ju
TO:
ROOM NO.
BUILDING
REMARKS
Du
FROM:
ROOM NQ
54
BUILDING
EXTENSION
FORM O 241 REPLACES FORM 36-8
WHICH MAY BE USED.
FEB 55
STAT
STAT
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