reported, and shortly thereafter relieved Captah DeKay as Fiscal Gfficer for the operation. Basic fiscal agreementsbetween the Departments of the Kational Uilitary establishmentand the Atomic Energy Commission were arrived at in the first week after orders to the Task Force Commnder were issusd. It was determined that the Atomic Energy ConmLssion would advance funds to the IiavyDepartmentby appropriationtransfer. The I:avyDepartmentwould in turn advance funds to the Departrsmt of the Army and the Department of Air by cash transfer under the appropriation. It was agreed that expenditureswould be reported by object classificationto the liavyDepartment which would make a monthly consolidated report to the Atomic “~ergy Commission of sll expenditures for the three Departments. The decision as to which expenditures for the operation would be chargeable to funds to be made ava51able by the Atomic Energy Commission posed an bitial problem which was hei~htened by secrecy which limited the discussion to a very small group in each Department. In theory authorizationof expenditures for an operation of this nature would be approved by the heads of all Technical Services and Bureaus in each Departmnt. The tim available and the secrecy of the operation did not permit such action. FtiaJly, on 200ctober, the Fiscal Agreenmt (Appendti~) was issued. In general terms this paper, with its enclosures, indicated what expenses would be borne by the Armd Services and what ones by 2 Section XV