time as a permanent camp could be established on Parry Island. At such time as the Parry Island camp was established, construction crews were to be quartered in the permanent buildings on Parry Island as well as the camp facilities on the islands of Runit, Aomon, Biijiri, and Engebi. 9, LO. Permanent construction was to be accamplished on the islands of Parry, Eniwetok, Runit, Aomon, Biijiri, and Engebi. Tenporary construction camp facilities installed on Eniwetok were to be turned over to the military users upon occupancy of the Parry camp. The estimate was to include activation of the island of Bogallua, However, because of the fact that the Atanic Energy Commission had not definitely decided to activate Bogallua, this feature of the estimate was to be brought up separately in order that it could be either included or deleted fran the Contract estiuate. The cost estimate in accordance with the above criteria was pre- ' gented in the Reconnaissance Report of Jamary 1949 in the total amount of $16,694,400, which included the activation of Bogallua. The cost figures applied to the estimated quantities were based on going construction costs both direct and indirect, existing in the western portion of the United States during 1948. To this figure was added the factors of indirect costs that would be incurred to do this same work on Eniwetok Atoll. The indirect costs were worked up in detail by Holmes & Narver personnel with recent experience in Pacific Island construction work on Okinawa. On the Island of Okinawa, experience had shown that construction costs were 2.6 times the comparable stateside construction costs, However, at this time, the general thinking of CINCPAC in Fonolulu was that the Eniwetok construction would possibly be higher than the Okinawa construction and that the differential between stateside construction cost and Eniwetok Atoll construction costs should be a factor of 3, or slightly less. When the Reconnaissance Cost Estimate was finally assembled in detail, it was determined that it reflected an overseas cost of con- struction at Eniwetok Atoll which was, on the average, 1.96 times the comparable domestic cost, and this factor was used in the prepara- tion of all subsequent estimates. The AEC was advised of this com- parison early in 1949, The differential between domestic construction costs and Eniwetok construction costs was based upon the following factors: 1. Increased material costs including: a, Transshipment warehousing cost at port of embarkation b. Export packing costs