7.1 It was concurred in by DMA on [8 May. Al Graves relieved Don Shuster of Sandia as head of Task Group 7.1, to perform the residual! B y ‘ddtles until an appropriate organization is formed for a new operation. ‘The assumption of that responsibillty Is docum ented in a message from Al Graves to ALOO on 5 June. Sebi On towne 25 June 1959,_ General! Semmes sent a very pertinent memo to Hertford, oar. Shutt, Bradbury, Teller, and herete. The subject of it was what we should B be doing and seeking funding for relative to maintaining our test capabil‘Ities and carrying out preparations at test sites. He stated that overall there is little chance that surface testing at Eniwetok.will be resumed within the next year or in the early future thereafter, that there is little possibility of any high altitude or surface operations in alternate areasduring this period, but that there is some probability that underground testing will be permitted but it is doubtful that we will get authority to proceed for several months to come. Along these lines, Starboard says he cannot estimate how many months, but he doubts very much that anything definite would be decided until the October 31 date rolls around and perhaps not even then. The AEC testing budget that went from the President to Congress in January carried only 17.5 million dollars for “full scale tests." This was the amount that was felt justified on the basis of cleaning up existing tunnels and placing operations on a maintenance status. Later this budget was revised upward to 27.5 mittion for FY 60. This upward revision was based on doing certain preparatory work for possiblc underground testing in Nevada. Starboard states that this has not yet been argued before Congress and there is a very good possibility that congress may cut this number somewhat. However, the 27.5 million figure represented about the moximum that OMA feld they could request without running the dunger of having a vory substantial cut. Starboard feels the 27.5 miltton should be used to keep the ACC "relatively well prepured to /

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