STATEMENT OF CHARLES L. MARSHALL, DIRECTOR, DIVISION OF CLASSIFICATION, U.S. ATOMIC ENERGY COMMISSION; ACCOMPANIED BY ROBERT THARP, ACTING DIRECTOR, SAFEGUARDS AND SECURITY DIVISION

Mr. MARSHALL. That is perfectly satisfactory to me, Mr. Chairman. [Mr. Marshall's prepared statement follows:]

PREPARED STATEMENT OF CHARLES L. MARSHALL, DIRECTOR, DIVISION OF CLASSIFICATION, U.S. ATOMIC ENERGY COMMISSION

I am very happy to appear before your subcommittee this morning to discuss pending legislation concerning the classification and declassification of official information and the AEC's experience under Executive Order 11652 which provides the framework for the classification and declassification of national security information.

As you know, the Atomic Energy Act requires the Atomic Energy Commission to operate within a special framework for the classification and declassification of atomic energy information. The Act includes a mandate on the problem we are discussing today; namely, assuring that information important to the national security receives adequate protection while all other information is fully and freely disseminated. The Atomic Energy Act establishes a special category of atomic energy information called Restricted Data which is defined as “All data concerning (1) design, manufacture, or utilization of atomic weapons; (2) the production of special nuclear material; or (3) the use of special nuclear material in the production of energy but shall not include data declassified or removed from the Restricted Data category pursuant to Section 142."

In effect, this definition classifies atomic energy information from its inception. While national security information is limited to information generated in Government programs, information meeting the definition of Restricted Data, nomatter where generated or by whom generated, is Restricted Data and its disclosure is subject to penalty. The Atomic Energy Act requires the Commission to safeguard Restricted Data in such a manner as to assure the common defense and security, and at the same time to remove as much information from that category as national security permits, so as to facilitate the free exchange of ideas which is essential to scientific and technical progress and to public understanding.

The two basic objectives which the Atomic Energy Act applies in the atomicenergy field are the same as those which the Executive Order applies on a government-wide basis. After describing the basic objectives of the government with respect to the classification, declassification, and dissemination of information,. the Executive Order proceeds to establish specific policies and procedures to be employed by the departments and agencies of the Executive Branch in carrying out these objectives. We at the Atomic Energy Commission believe that, fundamentally, a combination of the Atomic Energy Act and the Executive Order provide the basis for an effective and equitable classification and declassification program for atomic energy information.

I believe that the Atomic Energy Commission has been diligent in carrying out its two-fold responsibility for the broad dissemination of information while protecting data affecting the national defense and security.

As an indication of the Commission's responsiveness to the provisions of the Atomic Energy Act and the Executive Order, a recent review of our classification guides and of our declassification work indicates that over 75% of the information that constituted Restricted Data in 1947 has since been declassified. As an example of our continuing efforts to make more information available to the public, the Atomic Energy Commission has, since July 1971 declassified as of June 30 of this year nearly 14 million classified documents, and we are continuing our comprehensive classification reviews of AEC classified holdings.

In addition, our classification guides which use the classifications prescribed in the Executive Order; namely Top Secret, Secret and Confidential, are under constant review and are being revised to permit the release of additional information as rapidly as the requirement to protect the national defense and seeurity will permit.

One of the other important aspects of the Executive Order is the emphasis it places on assuring that only documents which require classification in the in

terest of national security, will be classified. The Executive Order specifically points out that classification is not to be used to avoid embarrassment to individuals or to agencies. The AEC's classification and declassification program has been designed to meet these objectives, taking its basic classification guidance from the Atomic Energy Act as a statutory base and using the provisions of Executive Order 11652 for detailed implementation.

One of the provisions of the order designed to reduce the number of classified documents was the requirement that those authorized to classify be specifically designated and held personally responsible for their actions and that such individuals be limited in number. As a result, the number of classifying officials in the AEC has been reduced by a third, to a total of 4,561. Of this number, only 24 have Top Secret classification authority.

In general, Executive Order 11652 has not had as great an impact on the AEC as it may have had on other agencies, since AEC practices already include a number of the requirements that the Order prescribed. However, it did provide a firmer base for the established practices at the AEC and in addition it provided new means for helping to reduce the number of classified documents generated and of monitoring the classification and declassification practices of all government agencies.

The Order has also helped very significantly by establishing the Interagency Classification Review Committee which has become very effective in monitoring the classification and declassification practices of the Executive Branch.

With regard to H.R. 12004, we note that it contains only passing reference to the applicability of other statutes. In view of the unique classification provisions of the Atomic Energy Act, we would hope that any final legislation will explicitly refer to the Atomic Energy Act in a manner similar to that employed in Executive Order 11652 and that it will specifically state that the legislation does not supersede the provisions of the Atomic Energy Act of 1954 as amended. We believe a special exemption, such as appears in Section 8 of the Executive Order, to be necessary and far more desirable than the general language set forth in some of the proposed legislation, which simply refers to the application of "other statutes". Language which makes it clear that any new legislation is not meant to supersede the provisions of the Atomic Energy Act would eliminate questions about the respective relationships and responsibilities of various agencies and organizations under any new legislation.

H.R. 12004 varies from the Executive Order in other respects which are extremely troublesome to us. Among these are the accelerated rate of the general declassification schedule and the automatic declassification scheme for exempted materials, which are set on the basis of time rather than the nature of information involved. We do not feel that either of these variations from the Executive Order serves to promote the common defense and security of the United States. With regard to automatic declassification, it is important to note that frequently, single, quite sensitive items of information (Restricted Data is a possible example) are incorporated in documents which otherwise could be declassified if the critical items were deleted. The title or description of such a document would probably make it appear that the document as a whole could be declassified. Yet such declassification would reveal information the protection of which is of great importance to the national security. Accordingly, it is our view that while categories of information may be declassified as such, documents must be reviewed by knowledgeable classification officers before they can be safely declassified and released.

As indicated above, our experience has shown that one cannot declassify a document merely on the basis of a description of it. We have also come to the realization that one cannot declassify information solely on the basis of the passage of a specific period of time as provided in H.R. 12004. Some information retains its security value for very long periods of time. I believe, for example, we can safely say that details permitting fabrication of a nuclear weapon developed over 20 years ago should still remain classified.

We do not believe that the establishment of a Classification Review Commission as proposed in H.R. 12004 is either necessary or desirable. In light of our obligation to provide information to the Joint Committee (Section 202 of the Atomic Energy Act) and the nonapplicability of Congressional requests of the Freedom of Information Act's exemptions from disclosures, we view the creation of a body to handle such requests as unnecessary. Furthermore, it is apparent that the proposed role of the Classification Review Committee within the classification and declassification framework is an enormous one that would create equally enormous administrative burdens for all government agencies. We

question the advisability of creating a Review Commission with the sizable staff and budget obviously necessary to carry out the proposed duties of this Commission.

Acting within the provisions of the Atomic Energy Act and Executive Order 11652, the Commission has, as noted previously, conducted a classification and declassification program which carries out the objectives both of the statute and of the Order. The Commission's program has as its objectives both the reduction in the generation of classified documents and the declassification of as many as possible, as soon as possible, of the Commission's currently classified documents. We believe that we have been successful in meeting these objectives. Our extensive use of classification guides developed and kept current in accordance with the basic policy approved by the Commission as required by the Atomic Energy Act, and the requirements set forth in the Executive Order that classification be carried out only by specifically authorized classifiers, has kept the generation of classified documents to a minimum. Our intensified program for the review of classified documents has brought about a considerable reduction in the classified holdings of the AEC and has made a large amount of information available for use by industry and the public.

In summary, we believe that the administration of Executive Order 11652 monitored as it is by the Interagency Classification Review Committee is now demonstrating its effectiveness in maintaining a balanced classification system and in decreasing the number of classified documents being generated.

As for precise standards which could be utilized to measure the delicate balance between the necessity for classification on the one hand and the necessity for public access to information on the other, there is no simple solution. We would like to stress that the establishment of classification policy requires the application of a broad knowledge and understanding of all of the aspects and implications involved in release versus protection. We do not believe that declassification can be safely carried out by simple fiat. To the extent that a balancing system can be established, however, it has been our experience under the Executive Order and under the Atomic Energy Act, that an adequate system already exists. In the case of the AEC, this system is considerably enhanced by the provisions for oversight by the Congressional Joint Committee on Atomic Energy.

Mr. MARSHALL. I am happy to appear before your subcommittee but we can just enter the statement in the record without reading it. Mr. MCCLOSKEY. Without objection, so ordered.

I have had the privilege of reading most of that statement and I will finish reading it and let staff direct a few questions to you on this. Mr. Phillips?

Mr. PHILLIPS. I have just a couple of questions. Most of them could be submitted in writing, but I wonder if Mr. Marshall would supply for the record a descriptive statement concerning their data index system which is required under the new Executive order directive of May 17, 1972. AEC is one agency that has completed its data index system, as required by that order, and it is automated. It is a model for other agencies, and I think it would be very helpful to have a description of the make-up and other technical details of that system for the record.

Mr. MARSHALL. We will be very happy to supply that statement for

you.

Mr. MCCLOSKEY. Without objection, space will be reserved at this point in the record.

[The information referred to follows:]

Enclosed herewith is a copy of AEC Appendix 3401 "Classification and Declassification (handbook)" which sets forth an overall outline of the classification activities of the AEC including classification and declassification procedures. Part VII, "Data Index System" and its supporting exhibits (p. 37-40 and 65–74) provides a full description of our Data Index System. This document is part of the

AEC's Manual Chapter series and is therefore a directive applicable to all AEC and AEC contractor employees.

A. Objectives

AEC MANUAL APPENDIX 3401-CLASSIFICATION AND

DECLASSIFICATION HANDBOOK

*

PART VII-DATA INDEX SYSTEM

The National Security Council (NSC) Directive of May 17, 1972, governing the "Classification, Downgrading, Declassification, and Safeguarding of National Security Information" requires each agency to establish and maintain a Data Index System for top secret, secret, and confidential information generated after December 31, 1972, in selected categories approved by the Interagency Classification Review Committee (ICRC) as having sufficient historical or other value warranting preservation. The ICRC further determined that the Data Index System should be utilized to assure routine declassification review of all documents which are either: (a) ten years old and exempt from the GDS, or (b) subject to automatic declassification on the occurrence of an event or date. The AEC also decided that all Top Secret documents shall be included in the Data Index System.

B. Purpose

The principal purpose of the Data Index System is to make available to the public at the earliest possible moment, all declassified information in the above categories.

C. Implementation of the program

The NSC Directive requires each agency to compile information on applicable documents classified after December 31, 1972, for the Data Index System. Divisions and offices, Headquarters, field offices, and AEC contractors will collect data for the Data Index System as outlined in the procedures and forms explained herein.

NOTE. The normal Top Secret accountability procedures will be used for entering Top Secret documents into the system (see appendix 2105). Significant information generated prior to January 1973 will be entered into the Data Index System during comprehensive declassification review programs.

1. Categories of Information to be Indexed. All Top Secret and selected categories of Secret and Confidential information of scientific, historical, technical, or other value warranting preservation shall be entered into the Data Index System.

The following guidelines will be used:

a. All Top Secret documents (Reporting on Top Secret documents will be accomplished through Top Secret accountability procedures. See appendix 2105.)

b. All other classified documents which contain significant information on AEC programs, projects, and other major activities and efforts relating to: (1) policy and decisions.

(2) program direction.

(3) budgetary authorizations and appropriations.

(4) executive and statutory determinations.

(5) scientific and technical R&D, design, testing, and production. (6) interagency relationships.

(7) AEC laboratory or production plant relationships.

NOTE.-Significant information is limited in this regard to documents (e.g., correspondence, reports, directives, briefing books, background discussions, and staff papers, and inter and intraagency meeting and conference records) issued, or developed for or by the Commission, General Manager, Assistant General Managers, heads of divisions and offices, Headquarters, managers and assistant managers of field offices, heads of major contractors (e.g., laboratories and production plants), and the chairman of major AEC and interagency advisory groups and the like.

c. All classified documents which are exempt from the GDS pursuant to Section 5(B) of E.O. 11652 other than those exempted solely by reason of being Restricted Data or Formerly Restricted Data.

NOTE. Excepted from the indexing requirements are in-house working papers and operational type documents such as drawings, design data, and specifications,

technical notebooks, photographs, completed forms, cost reports, books of account, production data sheets, transfer vouchers, machine listings and printouts, and the like which are generally of a transitory or short lived nature.

2. Responsibilities of Heads of Divisions and Offices, Headquarters, Field Offices, and AEC Contractor Organizations. Form AEC-790, "Classification Data Index System-Index Action Authorization", (exhibit 1) will be filled out and submitted to the Division of Classification when a secret or confidential document, as set forth in C.1., above, either: (a) falls within the selected categories, or (b) is determined to be exempt from the GDS for reasons other than that it contains Restricted Data or Formerly Restricted Data. The following are responsible for assuring that a Classification Data Index System-Index Action Authorization Form is submitted and that appropriate records are maintained:

a. The heads of the appropriate divisions or offices, Headquarters, field offices or, AEC contractor organizations in the case of documents falling in the selected categories given in 1.b., above. Normally this responsibility shall rest in either key official(s) or control point (s) specifically designated by the head of the organization.

b. The authorized classifier who determines that a document is exempt from the GDS for reasons other than that it contains Restricted Data or Formerly Restricted Data (see 1.c. above). Any duplication inadvertently resulting because a document is also placed in the index pursuant to 2.a., above, will be adjusted at Headquarters.

c. Each organization (AEC or AEC contractor) shall maintain a copy of Form AEC-790 for their documents introduced into the Data Index. Record copies of the documents entered into the Data Index System must be retrievable within 48 hours of a request at any time in the future. To this end, record copies of indexed documents shall be appropriately marked or stamped "Data Index System" for ready identification.

NOTE.-Organizations which only occasionally originate documents warranting inclusion in the Data Index System shall forward the necessary information on them at the time the document is issued; organizations which issue one or more such documents per week should transmit the Data Index Information to the Division of Classification on a weekly basis.

d. The Division of Classification shall monitor Data Index System input and maintain certain AEC Data Index System records. The Division, with the cooperation of other divisions and offices, Headquarters and field offices, will also prepare and issue the required reports as indicated in part D., below.

3. Procedures for Compiling Data for the Data Index System. Pertinent information on each document meeting the criteria for inclusion in the Data Index System (C.1., above) must be routinely provided to the Division of Classification for entry into the System. To assure uniformity of indexing of the required information, Form AEC-790, "Classification Data Index SystemIndex Action Authorization" (Exhibit 1) shall be completed and submitted to the Division of Classification. Instructions for compiling the Classification Data Index System-Index Action Authorization Forms are also presented in exhibit 1, along with a listing of the subject and organizational codes (exhibits 2 and 3, respectively) necessary for the completion of Form AEC-790. Brief descriptions of the exhibits follow:

a. Form AEC-790, "Classification Data Index System-Index Action Authorization" (exhibit 1). This form is designed to assure that all information necessary to the identification and retrieval of a specific document can be listed with a minimum of effort. The form records the following information regarding a document: Data Index identification number; origination and indexing dates; level, declassification schedule, and National Security Information category: year or event at which the document is to be declassified; report and/or document control number; file location; title; description or main subject content (including identity of the country which is the main concern of the document); originating organization; name of principal author, or organization if no author is given; addresses (for memoranda, letters, and teletypes); and the identity of the authorized classifier.

b. Instructions for using Form AEC-790. Instructions for the completion of this form are set forth in Exhibit 1 (continued) and are an amplification of the previous paragraph.