◆ SpookStack

It was originally thought that at least 18. months. would elapse after the building funds had been raised before the facilities would be finished and could raised the $500, 000 \vhTch his Fund will ostensibly contribute,- he will then be allowed to use existing space in the present hospital in order that he may build up the organization which will later occupy the new .wing. This means that TSS will be able to begin to take advantage of this cover situation within a matter of months instead of waiting for a year and . „ a half. f VIII. Security. Security matters and details are being co-ordinated with the TSS Liaison and Security Officer. Security of transmittal of the funds and cover arrange- ments are described inTabA and remain unchanged.— IX. Agreement with< C is described in Tab A, and the extent The agreement with is described in Tab A, and the e> of his co-operation and the control over his actions remain unchanged. X. Resultant Financial Saving. The total contribution' of $375, 000 by CIA will result in an additional $375,000 in matching funds provided under Public Law 221. It is felt that the expenditure of these total funds is justified by the importance of the programs which will be pursued at the new facility. = Even though the CIA contribution is increased under this amended project, the total of Federal funds remains unchanged. The use of this facility will allow work to proceed under conditions of cover and security which would be impossible to obtain elsewhere without an expenditure of equivalent or greater funds. In addition, by funding individual projects for this facility through the no char ge will be incurred for overhead expense. If research projects are °P er^y sponsored by the — fj> U. S. Government, it is customary to pay an overhead rate equivalent to 80% of salaries. ^ However, if a non-profit fund, such as - j; sponsors research, the funds granted for the work are customarily used only to pay for salaries, equipment and supplies, but not overhead. The Agency thus buys considerably more research through - S ^jj^phan would be the case if no cut-out were used. I” .•v.f.-.orKy of j IQ'-X'/S ^ X ’ t : i 1-7 • Copy # l of 1 copy • f 5 ?•*» M 137479.