ENCLOSURE DRAFT AGREEMENT FOR THE ALLOCATION OF COSTS TO BE BORNE BY THE AEC AND THE ARMED SERVICES 1. The following principles will govern the allocation of costs to be borne by the Atomic Energy Commission (AEC) and the Armed Services for activities related to the ENIWETOK ATOLL and the Atomic Proving Grounds thereon. In the phrase "attributable to maintenance, construction, activities or future tests at the Eniwetok Atomic Proving Grounds" used below it is the intention to differentiate between those costs for specific maintenance activities over and above those costs normal to a military garrison. a. The AEC will be charged with the following expenditures: (1) All construction costs, including buildings, roads, pridges, utilities, installations, runways, facilities, dredging, harbor improvements and preparation of test sites providing that prior approval is obtained from AEC for costs involved. It is further understood that the military services are authorized to proceed with minor construction considered necessary for the Garrison Force without prior approval or cost to AEC. (2) All travel including mileage and/or per diem for military personnel and civilian employees where travel involved is directly attributable to maintenance, con~struction, activities or future Atomic Proving Grounds. tests at the Eniwetok No charge shall be made for transportation furnished in government-owned ships or aircraft except for subsistence. (3) Administrative expenses including salaries and overtime for civilian personnel which may be directly attributable to the maintenance, construction, activities or future tests at the Eniwetok Atomic Proving Grounds. -5-