ML20212D009

Summary of 971009 Predecisional Enforcement Conference for Us Enrichment Corp in Region III Office Re Apparent Violation of NRC Requirements.W/Agenda & Handouts

ML20212D009
Person / Time
Site:	Paducah Gaseous Diffusion Plant
Issue date:	10/27/1997
From:	Cox C NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:	Pierson R NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
NUDOCS 9710300239
Download: ML20212D009 (29)

Text

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OCT 2 7133Il 1'

MEMORANDUM TO: Robert Pierson, Chief Special Projects Branch Division nf Fuel Cycle Safety j

and Safeguards, NMSS 1

FROM:

Charles Cox, Mechanical Systems Engineer Enrichment Section D

Special Projects Branch Division of Fuel Cycle Safety and Safeguards, NMSS

SUBJECT:

MEETING

SUMMARY

FOR PREDECISIONAL ENFORCEMENT CONFERENCE FOR UNITED STATES ENRICHMENT CORPORATION ON OCTOBER 9,1997, AT REGION lll IN LISLE, ILLINOIS l

On October 9,1997, a predecisional enforcement conference was held with the United States Enrichment Corporation (USEC) and Region ill in the regional office in Lisle, Illinois, to discuss an apparent violation of NRC requirements. Potential compromises of classified material at the Paducah Gaseous Diffusion Plant (GDP) Ir.dicated a possible breakdown in the protection of classified material. The meeting was not upen to the public due to the potential to discuss classified material. Staff from the Department of Energy (DOE) attended along with Lynn Silvious, Division of Facilities.nd Security, and Charles Cox, Special Projects Branch. Attached is the agenda for the meeting and the handout for the USEC presentation. USEC admitted to the violation and identified potential mitigating factors including self identification, thorough corrective actions, and legacy issues contributing to the magnitude of the problem.

Attachments:

1. Agenda

2. Handout Docket 70 7001 DISTRIBUTION:

Dockets 70 7001 NRC File Center PUBLIC NMSS r/f FCSS r/f SPB r/f KO'Brien, Rill CCox PHiland, Rill MHorn RPierson WSchwink, FCOB DHartland, Rlli

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C = COVER E = COVER & ENCLOSURE N = NO COPY MTGSUM,COX OFFICIAL RECORD COPY men 3 llllllllll \\\\\\ \\\\ll l lll

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.s MEMORANDUM TO: Robert Pierson, Chief Special Projects Branch Division of Fuel Cycle Safety and Safeguards, NMSS FROM:

Charles Cox, Mechanical Systems Engineer Enrichment Section Special Projects Branch Division of Fuel Cycle Safety and Safeguards, NMSS

SUBJECT:

M (TING

SUMMARY

FOR PREDECISIONAL ENFORCEMENT CONP RENCE FOR UNITED STATES ENRICHMENT CORPORATION ON OC BER 9,1997, AT REGION lil IN LISLE, ILLINOIS On October 9,1997, a predecisional forcement conference was held with the United States Enrichment Corporation (USEC) a Region lit in the regional office in Lisle, Illinois, to discuss an apparent violation of NRC re 'rements. Numerous potential compromises of classified material at the Paducah Gaseous Di sion Plant (GDP) indicated a potentiel breakdown in the protection of classified materia The meeting was not open to the public due to the potential to discuss classified material.

ff from the Department of Energy (DOE) attended along with Lynn Silvious, Division of ilities and Security, and Charles Cox, Special Projects Branch. Attached is the ag da for the meeting and the handout for the USEC presentation. USEC admitted to the lation and identified potential mitigating f actors including self identification, thorough corrects actions, and legacy issues contributing to the magnitude of the problem.

Attachments:

1. Agenda

2. Handout s

Docket 70-7001 DISTRIBUTION:

Dockets 70-7001 NRC File Center PUBLIC NMSS r/f FCSS r/f SPB r/f KO'Brien, Rlli CCox PHiland, Rlli MHorn RPierson WSchwink, FCOB DHartland, Rll!

_OFC SPB

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SPB SPB NAME CCox:ij WDHoadley hartin DATE 10/20/97

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C = COVER E = COVER & ENCLOSURE N = NO COPY MTGSUM.COX OFFICIAL RECORD COPY

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CLOSED PREDECISIONAL ENFORCEMENT CONFERENCE AGENDA CERTIFICATE HOLDER:

UNITED STATES ENRICHMENT CORPORATION (USEC)

CONFERENCE DATE:

THURSDAY, OCTOBER 9,1997; 2:00 P.M.

1.

OPENING REMARKS AND MEETING EXPECTATIONS - ROY J. CANIANO INTRODUCTION OF PARTICIPANTS 11.

OPENING REMARKS - USEC REPRESENTATIVES Ill.

ENFORCEMENT POLICY OVERVIEW TOYE SIMMONS IV.

PRESENTATION OF APPARENT VIOLATION - KEN O'BRIEN & JOHN JACOBSON V.

RESPONSE TO VIOLATION - USEC REPRESENTATIVES 4

VI.

REGIONAL OFFICE STAFF CAUCUS Vll.

ADDITIONAL DISCUSSION - NRC AND USEC REPRESENTATIVES Vill.

SUMMARIZE ENFORCEMENT PROCESS-TOYE SIMMONS IX.

CLOSING REMARKS - JAMES L. CALDWELL i

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UNITED STATES ENRICHMENT CORPORATION i

1 PAD ~UCAH GASEOUS DIFFUSION PLANT l

PRE-DECISIONAL ENFORCEMENT CONFERENCE L

October 9,1997 I

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Introduction S. Polston c!

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B.

Ilistorical Perspective S. Polston j

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C.

Sequence of Key Events and Actions Taken C. I' licks l

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Root Causes and Corrective Actions C.1-licks j

E.

Mitigating Factors -

S. Toelle l

F.

Implications for Portsmouth J. Miller i

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Closing Remarks J. Miller i

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INTRODUCTION USEC acknowledges the three instances where uncontrolled classified matter was found outside the Controlled Access Area (CAA) as noted in NRC Inspection lleport 97-007.

To date, we have identilied 3 additional events ol' uncontrolled classilled matter outside the CAA; however, one ol'the events has been subsetinent y determined to not involve classified l

ini'ormation.

We have also identified 18 events inside the CAA which we also consider important to address.

All of these events were self-identitied by lJSliC and immediately reported to NitC as part of our ongoing effort to locate uncontrolled classified matter.

Classified document control at PGI)P is a complex issue that involves both existing program weaknesses and legacy issues which have made identification of classified matter confissing.

We recognize that our ellbris to identify uncontrolled classified matter could have been initiated earlier because of missed opportunities.

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SEQUENCE OF KEY EVENTS AND ACTIONS TAKEN i

' i D:te Selectet! Events Actions Taken

' 4/14/97 Classified information discoscred accessible by uncleased Retriced document arxl mittated scarch for additamal tirawint:s on 4/14/97, personnel (Problem Repost writtent 4/17/97 Classified infinmatmn discmcred recessible tw nrxicated PGDP Atanat ement reatual slut the Comphance Plan did not adequately persosuiet.

askhess legat3 (l.assified nutsen omtro! rssues on 4/17!97 (REDlHECI'ED ACIION)

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5/30/97 NRC Inspection Reixnt 97002 issued with NOV the 4/14 and Problem Report matie a Sigmticant Conthtson Adscrse to Quahty (SCAQ) on f

4/I7 esents 6/'!97 Semor Alaiuger apgwunted to lead c!1ixt on 7/I/97 alter 97002 response

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• 6/1M/97. Classified Alatter unprotected m sauh area llulictm osued 6/20N7 tm Control of Aledia deming uncleared persormel access to electamically genetate skrumors on mterim basis j

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N!!2/97 Site & l'acilities Alanager became anare of the DOE 1994 Presentatam made to PGDP Senior Atanagers on problems by Site & Fachties memo Ntanager on N/lL97 (NEDIRECI'ED ACflON)

M/13/97 l'irst discmen cutside CA A Susped faahty area tmtsade CA A put uixler guard on K/13/97 until potentially

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classified nutter was umliscaled Completed on M/I5/97.

X/22/97 Discussion held with Semor Resident on pik4 e!! int asal plan Started Pikin lifliwt ein caxade process binidmg on M/2N97.

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i 9/l I/97 Discmery of unprotected classified matter imtside plant

. Retriacd susgett whwnutam lhwn kwatum arxl nutsated searches m other property.

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Inadequate identification of the extent of the pre-existing problems until August 12,1997, due in part to 3

. missed opportunities belbre NRC assumed regulatory oversight..

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In some instances, inadequate knowledge to recognize improperly classified documents and to properly h

classify newly generated documents.

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Controls relating to preventing uncleared personnel from gaining access to classified information were

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The ADC training program was t. graded.

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Sanitized areas outside CAA where classified material was Ibund.

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1997.

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As part ol'the " Purge Campaign " a pilot walkdown/veriliention was initiated in the C-331 cascade process building on August 26,1997. Additional searches on plant property inside and outside CAA were subsequently started.

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Plant stalTreviewed their liles and reported to security any examples ol' potential compromises Ihr further evaluation.

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Long-Term Corrective Actions-i hnproving Plant StaffKnmvledge

1. Security training ihr personnel who may handle classified intbrmation and ihr custodians ol'elassified sal'es l

will be completed by December 31,1997.

j 2.. Special briefings are being given to cleared PGDP personnel delineating what is classified. These briefings

_j are expected to be completed by November 18,1997.

j

3. Additional ADCs have been trained using CG-PGD-5 Joint NRC/lX)li Classification Guide as the standard.

I l

4. Management has stressed to all cleared PGDP personnel that they are individually responsible Ibr the f

sal'eguarding ol'elassified matter.

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__.... _..._.~._

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I ong-Term Corrective Actions improving nasolsfor the Protection ofClassified Alatter

1. The classified matter protection procedure was revised to claril'y instructions for protection ol'classi'ied matter.

2. The security education program will be revised by November 21,1997, to provide for a briefing on sensitivel technology / processes prior to issuance of cleai d" picture badges.

i

3. The security briefing requirements in the (ieneral limployee 'l raining program will be revised by November 21,1997, to stress the responsibilities of each cleared individual.

1

~ " " "'"*" " - " """""" -

t

_.SEC U

.....c-..,

MITIGATING FACTORS Identification Efforts to locate uncontrolled classified matter have resulted in findings both inside and outside the CAA.

All potential compromises of classified inlbrmation have been self-identified.

All discoveries of uncontrolled classified matter have been promptly reported to NRC per 10 Cl:R 95 (24; notifications made).

Corrective Actions USEC has prompily taken comprehensive corrective actions in areas of our responsibility.

j USl!C initiated an ellbri.0 review and purge classilled intbrmation at the plant site. This efibrt was e

documented in our supplemental response to NOV 97002-31.

Near-term and long-term corrective actions have been initiated to prevent recurrence within a reasonable a

time frame. The corrective actions have been thorough and comprehensiv: and address broader issues.

6 I

f

---

- - - - -. - ~ - -.

I i

'd lA E,'rtitcalStettes littr1s $torrcert ( *totJworkstierrt A Clobal Energy Compmy 3

MI'llGATING FACTORS Other Considerations

/. This violation was not likely to be identined by routine USl?C efibrts such as normal assessment,

- surveillance or QA activities in that the examples of the violation primarily involved legacy material that -

was not properly classified or handled.-

. ' Compromises were not willful.

-l This apparent violation lias parallels with the subject of"old design issues" addressed in Section Vll.B.3 of the linforcement Policy.

._.n.

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_.SEC U m_,,c_

LMPLICATIONS FOR PORTSMOUTH

'Itisk for compromise of OUO/Itestricted classified intbrmation significantly lower at PORTS:

l PORTS not part of Consolidated Classified Iteview Project (1978) which improperly downgraded o

documents'at PGDP.

Procedures historically identified OUO/Itestricted documents as classified.

OUO/Itestricted documents maintained in a classified vaur.

'i Walkdown verifications of PoltTS documents (~ 180,000).

Some potential c.mpromises of regular chissified documents did occur:

- Six examples of potential compromises were reported.

.l 1

- Corrective actions being taken.

l

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s-Cilit()NOl.OGY OI liVI.NTS ANI) ACTIONS TAKliN Dcte Description 4/14!97 Classified information discovered accessible by uncleared personnei lletrieved documents and secrched for additional drawings 4/17/97 Classified inliirmation discovered accessible by uncleared personnel 4/17/97 PGDP management sealized that the Cornphance Plan did not adequately address legacy classified matter control issues 5/29.97 Secr.:t-restricted infinmation accessible to personnel without the appropiiate lesel of security clearance 5/30/97 NitC Inspection lleport 97002 issued to !!SliC 6/2/97 Problem fleport made a Significant Condition Adverst io Quality (SUAQ) 6/4/97 Ccalidential-Itestricted 1)ita accessible to per sonnel without appropriate les el of security clearance 6/18/97 Confidential-Itestricted Data accessible to pensonnelin vault without appropriate level of security clearance r

_.SEC

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- r-ae CilRONOllXiY 01 liVliNTS AND ACTIONS TAKliN I)atc '

. Description

~

8/12/97 Site & I acdities Manager became aware of the D010.1994 memo.

8/13/97.

Document identified as "Ollicial Use Only"lisund outside the Controlled Access Area (CAA)

M/13/97 Suspect facility.in propesty protection crea gianded until potentially classified matter could be confiscated 8/13/97 ~

Document identitled as "Ollicial Use Only" fi>und.outside the CA A ' Suspect ares secured until potentially classified matter could be confiscated i

+

Site & l acilities Manager made presentation to Senior Managens on th'ese problems.

i l

8/14/97 8/14/97

-Video cassette containing Confiden'tial-Restricted Data liiund outside the CAA.

L.,

8/15/97

\\Valkdows. of training facilities fin any training video tapes containing classified infinmation

.n ;.

8/l5/97 llegan planning / implementation of comprehensive walkdown of PGDP site fin potential uncontro' led classified information 8/22/97 l>iscussed pilot prograni ellint and plan development hith Resident inspeclois

'V

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CilitONOi,0(iY OF !Wl:NTS AND ACTIONS TAKliN Date Description S/20/97 Staited tinmal pilot program in cascade process building 8/27/97 llooklets marked "Ollicial Use Only" containing Confidential-Itestricted Data not properly con rolled 9/3/97 17 documents (mise correspondence) and 36 drawings with vminus old classification markings (such as" Official Use Only" and " Confidential") discovered in an aiea whcie not propeily controlled 9/8/97 One document with "Contidential - ltestricted Data" maikings liinnd in an uncontrolled tile cabinet 9/11/97 A drawing with an old classification ma: Ling discosered where it was not propeily controlled l

9/11/97 Thice documents discoseied to hase been issued to otr-site peisonnel nhich did not base proper security j

clearance 9/l I/97 Confiscated potentially classified drawings liom oll~ site contractor llegan sesien ot' potential for classified matter at contractor's other liscility 9/17/97 N1aterial marked Secret and Confides Q1 was discoscied in a cabinet in the ('-3M buihhng

" ~ " ' ' " " " " " - " ' " " - " ~ "

r

_.SEC U

i. _ e_..,

CilitONG!.OGY Ol I!VliNTS AND ACTIONS TAKliN Date Description 9/17/97 Authoiized Derivative Classifier resiew of a document that was created by a consultant outside the controlled access area li>und to contain classified mattei an 1 uncontiolled Confiscated all suspected matter potentially containing classified infinmation 9/19!97 Document discoscied withm the CAA containing classified infinination, was not inopeily inaiked as to its classification os contiolled 9/19'"7 Document discovered within the CAA which contained potentially classified intiumation 9/22/97 An employee discos cred a document in a file cabinet in his ollice that he suspected might be classified 9/22/97 An employee discosered a document in a file cabinet in his ollice th.it he suspected might be classified

"'2&97 Classified infinmation was inadseitently disseminated via an undassified computer system within the CAA 9/25/97 Document li>und outside the CA A was discovered to be classified r USEC

""" ""' " - """~ ""'-"'"~

_....,,c-.....

' S AFr.

• LARD & SECURITY Div acua

1 2/g TUE 12

3" FAI 423 $76 7629 S4'*1SS

.,n

,D '

Department of Encrgy T 'UWied States Governrnent Oak Rioge Ooersoons CWice

~mernOrandum Daft h os h 31, 1994-o MEPtV70 Anw ept QP-822:tiarciante RECOGNIIING ADEQUATE DOCUMENT DECLA55f FICATION REVIEWS 28G 70; Distribution A In support of Openness, more and more Oak Ridge Operations (ORO) organizations are handling old classified and fomerly clas;1fied documents Openness i; an and preparing tnem for dissemination to the public.

important 'nttiative, yet, as the Secretary made clear in her June press conference, we in the Department of Energy (00E) have a continuing obligation to p otect information :nat is vital to the national security,

+

Classified in ermation ano Unclassified Controlled Nuclear Ir.for'nationMa d

d (UCNI) are two classes of such information.

The contain information that would assist a nuclear wate:ns proit*era Of course, the more refined Unites States technolooies are earlier nucleaf Dissenination of such documents would be detrimental nuclear power.

Therefore it is important that all attractive, too.

thf. interests of the United States.

emoloyees and our contractors, including our non management and ope (t'&O) contractors, recognize what constitutes a properly d non-M&O contractors and M10 contra: tors excluding Martin Marietta Energy document.

The purpose of this memorandum is to desertoe the serinarss of a If at any time you have any doubt as te Systems.

document properly declassifisc occument.whether a documnt is properly declassifie

-that does not have classif' cation markings on it but seems to contain classified information, please protect it as if it was classif my office immediately.

and information in your organirstion's possession rests Drivacy Act rev iew, prerrietary releasability of cocuments, includinginformation review, presenc etc.

ATTRIBUTES OF A pR09ERt.Y DECLA55!FIED DOCUMENT trsat the document as still If the following attributes are not present, cl as sified.

1. There will De evicence on the face of the documen and ruled it to no derivative declassift r (s) reviewed the occumentYou shoulo look for a legible longer contain classified informatic,

a m

.m

L9 b 97 TUE 11:37 FAI 423 sts 7ste SAFEGUARD 4 SECURI~T DIY 4004

//*

,I Novencer 21, 1994 z-Distribution A signature of at least one Authorized Declassifier and the title Over time, the reevirement as to the number of reviewees reviewer (s).

needed to declasaify a document has varied. The following table providss the er equivalent.

1 if the necessary number of reviewers is not evident en a requirements.

document, treat it as if it was still classified.

l EFFECTIVE DATE OF DECLA531FICAT10N REQUIREMENT l

DECLASSIFICATION ACTION 2

One signature declassification Prior to November 1979 Two signature declassification December 1979 hly 1982 One signature declassification August-1982 April 1985 Two signature declassification

}May-1985 Pessent

2. Classification markings, the level and category stamps, will hav If you find a document with the classifhation markings crossed out, b crossed out on all pages.

lacking the attributes described in item 1, above, treat it as classified.-

OTH3 CONSIDERATIONS AND CONCtRMS A. Funky File Folders Type -1. Soma declassifiers in the past were in the habit of documenting -

their decision on the exterior of file folders, with All ORD organizations,,xcept for the Oak _ Ridge Records Holding area, are requested to call my offica in any the file folder.

instance wherein they find the kind of file folders discussed-at th All ORO organizations, including the Oak Riego Recordt Holoing area, are reavested to ca11~ my of head of this paragraph.

come upon such foloers, and there is an inte k

photocopies.

Type-2. Some orgarizations in the past were in the habit of col hich they

. individual documents containing classified infonnation. w had -not had individually marked with classified markings, and storing thern in a file folder which had classified markings on If you come upon such a file folder, treet all the documents in the folder 'as classified and call my office as soon outside of 3 possible.

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?tavemoer 21, 1994-o 3

Distribution A 4

B, Consolidated Classification Review Program (CCRP) Occuments

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and its From 1971 through 1978 the Atomic Energy Conssission (AEC) held in record contractors declassified a large volume of documents thenThat task, }

Ridge (K-25, ORNL, Y 12 and the ACC's records holding area) is known as the centers.

)

Conselidated Classificat. ion Review Program (CCAP)

Many people were assigned to, this task and 'given total authority teHow declassify documents.

As a result, mistakes were made.

with the subject area they were reviewine.

Weapons documents were declassified in arter and ended up in the hands i

untleared persons.

All CCRP declassifications wm cancelled

However, The AEC took steps to recover.

and organizations were asked to again review their CCRP holdings.

A CCRP it is clear that not all documents have been reviewed again.

document will usually contain a stamo Declassified by DOE" and an indivicual's initials, (or no 1nitia15), or it will have notification from the DOE office of Scientific and Technical Information (formerly Technical Infonnation Center) known as T'D's (TID Nos.1380 through 1401 s assumed to be CCRP notices).

followed by initials, or no initials; or " Declassified by" followed byis so marked If a docua rt initials, cr no initials.

post-1978 revalication of declassifiso natus, and have the attributes Prompt steps described in itm 1, above, it must be treated as classified.

need to be taken to have it reviewed again by my office.

C. Obsole'.e Classification Level Markings Two special marktrgs apply to the Manhattan Engineering District o Atomic Energy Commission time period.

one time, BUT ARE NOV CBSOLITE FOR USE ON CONTEMPORAN Mowever, keep in mind that a document with either of the d

following markings. generated in the inoicated time periods must be l

DOCUMENTS.

today at the CDNFIDENTIAL level, (can be Restricted Data or Natio Security Information, ce conservative), and should b h

pub 1ic:

d in

• RESTRICTED - This markirig is a classification level that was once use Any j

the United States and is still used by certain foreign countries.

12/15/53 should be Unitt.d States document marked restricted orter toALL foreign documents with this had3ed as a Confidential docuernt.

marking should be protected as f onfidential.

level from

• OFFICIAL USE ONLY (000) - This.aarking was a classificationSuch doce

22. 1951.

This mark eg on a document from any othe July 18, 1949. to October C nfidential document.

per'ed is 33 classified.under the freedom or Information Act.

G O

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