HAR 2 49F% modifications or utilization. Selection (probably of an Escort Carrier type) should be made of a vessel on its way or scheduled for mothballing. The vessel should not be of a type of high potential need by the DOD, such as is the case with a Hospitaltype ship. The ship will be jointly manned by Holmes & Narver and MSTS or Ships Company personnel. The acquisition of a diagnostic ship would provide a facility for "quickie" tests of smaller over-all magnitude at less cost than other methods. Costs: sag Even a cursory analysis of the additional costs associated with the establishment of Taongi Atoll as a shot location mst give consideration to the fact that resulting savings in operational and maintenance costs would accrue as a result of reduced length of an operational period. Generally, we believe the cost implica- tion to be of not paramount importance, in a properly adjusted perspective. Safety should be foremost and then time savings which cannot be fairly evaluated on cost alone. ‘The Research and Development program has historically had high valuation where time is the essence in program goals. The cost analysis presented below has, of necessity, been based upon rather general estimates, the validity of which has not been checked in detail. However the basic figure representing the initial development cost of Taongi will be found to be more conservative than as indicated in the UCRL proposal. Against this initial cost of the development of Taongi, we have given consideration to savings resulting from a shortened operational period based upon REDWING experience of incremental costs of proving ground . operation and maintenance. We have also included a factor to cover the potential loss of our investment in Nan temporary camp facilities in the event the HARDFACK program includes any high yield shot (at Bikini instead of Taongi) of sufficient magnitude to destroy the Nan facilities. Currently there is no information available as to operating cost of the diagnostic and firing ship. We have therefore estimated $550,000 per year, based on $2,500 a day during an operational period and $1,000 a day during the remaining interim period. The computation anticipates that the ship will be in operational status approximately 125 days. (continued)

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