SECRET

         D. F. Shaw, Security Division                          June 3, 1947
         
         S. R. Sapirie, Chief, Operations Division
         
         CONTINUED AND EXTENDED USE OF THE POLYGRAPH
         
SYMBOL:  ARCZ

         Reference is made to the attached memorandum from Lt. Col. R. W.
         Cook requesting that a determination of policy be secured regarding
         the continued and extended use of the polygraph by the AEC or the
         Contractor at Y-12 and K-25.
         
         It is understood that you are securing from Y-12 a report summarizing
         the history to date of the use of the polygraph at that plant. That
         report should provide the necessary information to determine the
         effectiveness of the use of the polygraph at the Y-12 Plant.  Attention
         is directed to the effectiveness of using the polygraph to prevent
         the theft of government-owned property and to apprehend the thief
         and secure return of the property.  If the report received from Y-12
         does not answer this question completely, additional information
         should be secured on this point.
         
         The use of the polygraph at either Y-12 or K-25 cannot be recommended
         merely to duplicate the efforts of the F.B.I. in investigating the
         character, loyalty and associations of employees.  The use of the
         polygraph can be, and is, recommended however as a tool for use in
         the diversion control program.  As you know, a specific program has
         been established at both K-25 and Y-12 to prevent the diversion of
         high concentration product.  It is imperative that every practicable
         means be used to minimize the diversion of this type of material.
         If the polygraph has been successful in controlling the loss of
         government-owned property at Y-12, it is probable that its use at
         both K-25 and Y-12 would be an added threat of discovery to anyone
         diverting material and would thereby tend to check such action.  In
         the event any material is lost by diversion, it would be a means
         for the loyal employees to prove their innocence and a means of
         identifying those involved in the diversion.
         
         Assuming that the report confirms the belief that the polygraph is
         effective in controlling theft, it is recommended that the use of the
         polygraph as an aid to diversion control be approved for K-25 and Y-12
         and that the operation be carried on as a subcontract to the operating
         contractor's prime contract so as to specifically limit its use for
         the diversion control program under the contractor's responsibility.
         
                                               DISTRIBUTION:
                                               Copies 1 and 2 - addressee
         1 Attachment:                         Copy 3         - Lt. Col. R. W. Cook
           Memo dtd 5/26/47                    Copies 4 and 5 - S. R. Sapirie's files
            w/incl ltr dtd 5/20/47             Copies 6 and 7 - Classified Files
                  
                                 SECRET