Note by the Secretary, Subject: Eniwetok Atoll - Agreement on Allocation of Costs (Memo Attached)

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ENIWETOK ATOLL - AGREEMENT ON ALLOCATION OF COSTS— Note by the Secretary 1. The attached memorandum from the Director of Military Application to the Joint Chiefs of Staff (v$ithAppendices) i~ circulated for information. revision of the agreement circulated under cover of AEC !25 dated July 27, 1948. The Director of Military Application advises that the minor modifications introduced in this agreement are aimed at clarifying certain points which current operations indicate are 3. This agreement w1ll remain in effect until such time as a riewfiscal agreement covering the 1951 test operation can be cirawnup. The subject of fiscal support of the 1951 test program is being considered by the Joint Procf-Test Committee and will be referred to the Commission after consid~ration by the Joint Chief’s DISTRIBUTION COPY NO: Gzneral Manager 7 Whe Deputy General Manager 8

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This/’document consists of 5 pages COPY No. 1.5 of 18 Series A.—— .— MEMORANDUM FOR THE JOINT CHIEFS OF STAFF August 19, 1949 Through: The Chairman, Military Liaison Comm~ttee Subject: PROVISION FOR SUPPORT OF THE ATOMIC ENERGY COMMISSION IN CONSTR(JCTION OF ENIWETOK PROVING GROUND Reference is made to your memorandum SM-1489-49,* SL~bject The Atomic Energy Commission concurs in the revised draft** of an agreement entitled, “Allocation of Costs to be Borne by the Atomic Energy Comzmlssionand the Armed Services,” which was The Atomic Energy Commission concurs that this agreement should be made effective as of July 1, 1949. The Commission further concurs in the issuance of the revised agreement as an The Atomic Energy Commission appreciates the action of the Joint Chiefs of Staff and the Commander-in-Chief, Pacific in the support of Commission activities at Eniwetok. The Commission’s Manager of the Santa Fe Operations Office has been instructed to continue to direct all requests for assistance, including requests Of Commission contractors, to the Commander-in-Chief, Pacific through existing liaison channels, UNITED STATES ATOMIC ENERGY COMMISSION Brigadier General, AUS Director of Military Application

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MEMORANDUM FOR THE CHAIRMAN, ATOMIC ENERGY COMMISSION: Through: ,Chairman, Military Liaison Committee. Subject: Provision for Support of the Atomic Energy Commission in Construction of Eniwetolc Proving Ground. Incident to discussions between representatives of the Atomic Energy Commission, Commander in Chief, Pacific and the armed Services relative to support of Atomic Energy Commj.ssion construction at Eniwetok, necessity for certain changes has become apparent in the “Agreement for the Allocation of Costs to be Borne by the Atomic Energy Commission and the Armed Services” currently in effect and previously approved by you on 2J.July 194[]. The support now being furnished the Atomic Energy Commission and its contractors requires provision for the Atomic Energy Commission to assume costs of transportation required in commercial carriers. There is accordingly forwarded herewith* a revised draft of the subject agreement entitled “Allocation of Costs to be Borne by the Atomic Energy Commission and the Armed Services Incident to Eniwetok Proving Ground. ” The Joint Chiefs of Staff have approved the enclosed revised draft and request your early concurrence thereto ~iith the effective date of the agreement to be 1 July 1949. Your further c~ncurrence is requested to the issuance of this revised agreement as an unclassified document. The Joint Chiefs of Staff have designated the Commander in Chief, Pacific as the commander to coordinate all requests made by you or your contractual agents for support of the construction program at Eniwetok, Accordingly, all requests for assistance should be directed to him through liaison channels currently in For the Joint Chiefs of Staff:

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AGREEMENT FOR THE ALLOCATION OF COSTS TO B$ BORNE BY THE AEC AND THE ARMED FORCES INCIDENT.—— 1. The following principles will govern the allocation of costs to be borne by the f.tomicEnergy Commission (AEc) and the Armed Services for activities related to the ET{IWETOKATOLL and atomic proving grounds thereon.. In the phrase “attributable to mahtenance, construction, activities or future tests at the Enlwetok atomic proving grounds” used below it is the tntentlon differentiate between those costs for AEC activities over and above those costs normal to a military garrison. (a) The AEC will be charged with the following: (I) AI1 construction costs, Including buildings, roads, bridges, Utilitif3Sj installations, runways, facilities, dredging, harbor improvements antipreparation of test sites providing that prior approval is obtained from AEC for costs involved. It fs further understood that the military services are authorized to :roceed with minor construction considered neces;ary for the gamison force without prior approval or cost to AEC. (2) Except as provided in paragraph 1 (b) below, all travel includir.gmileage and/or per diem for military personnel and civilian employees where travel involved Is directly attributable to maintenance, construction, activities cr future tests at the Enlwetok atomic proving grounds, ?assenger and cargo space on regularly scheduled armed forces vessels and aircraft or passenger and cargo ships and aircraft which can be made available by the Services without the acquisition of additional vescels or aircraft or resort to commercial shipments to handle

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normal Service movements, will be made available to AEC without reimbursement, except for meals furnished under these conditions. Commercial vessels or aircraft which are required for AEC purposes to replace armed forces vessels or al~craft, and space in commercial vessels or aircraft which must be utilized by the armed forces in order to provide space in armed forces vessels or aircraft for AEC purposes, will re- (3) Expenses connected with the administration of this agreement including salaries and overtime for civilian personnel which may be directly attributable to to the maintenance, construction, activities or futl.we tests at the Eniwetok atomic prsving grounds, (4) All maintenance and operation costc in connection with the Eniwetok atomic proving ground activities, except those costs connected with the normal maintenance and operation of the ml.litarygarrison. (5) Except for equipment prccured on a loan basis, the cost of all supplies and equipment procured by AEC from military stocks or through military channels from commercial sources, including freight charges on commercial carriers and the cost of maintenance of equipment procured on a loan basis by the AEC. (6) Special clothing or personal equipment, if procurement is directly attributable to the maintenance, construction, activities or future tests at the Enfwetok atomic proving grounds. (b) The Armed Services will be responsible for the follow-

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(1) All pay and allowances of’military personnel, except mileage and/or per diem chargeable to AEC in accordance with paragraph-,1 (a) (2) above. (2) All clothing or personal ecluipmentfor milltary persormel, except as outlined in paragraph 1 (a) (6) above, and subsistence except while In a travel status chargeable to AEC in accordance with (3) All transportation costs of military and civilian personnel, equipment and supplies on government-cwned ships and aircraft in accordance with paragraph 1 (a) (2) above, except for per diem chargeable to AEC in accordance with paragraph 1 (4) All costs for activities which maybe conducted by the Armed Services which are not planned or requeste~ by the AEC. (5) Equipment, supplies and services for tary garrison which would normally be borne 2, The decision for the Interpretation or allocatioriof specific costs In accordance with the above agreement will be the responsibility of CinCPac. In the event that additional major categories or expenditures shculd develop, the allocation of costs will be the subJect of further agreements between the AEC and the 3. The financial procedures of the armed forces with respect to fiscal and property accounting and disbursement of funds will b in conformity with established proce~ures of the armed forces in-