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FINANCING SOURCES

authorized by Pentagon-FBI-CIA

BLACK projects cancelled.

*** CONFIDENTIAL ***



"BLACK" programs are military research programs classified with a security rating above that of "TOP SECRET". Government officials, including the U.S.A. President are not informed of their aims, progress or results. Cost performance and control are non existent because the expenditures made cannot be audited by persons who do not hold the highest of security clearances.

Cancellation of a project effectively terminates any further discussion as to the results of the project and the monies spent to date are effectively written off without question on the assumption of failed research. The results from a "cancelled" program need never be shown to the public.

 Startdate  Cancelation Force  PROJECT             Capital Invested 
 ==================================================================

   1947        1953     Navy   Oriole                    12,500,000.

   1950        1955     Navy   HSL-1                     94,000,000.

   1951        1959     Navy   Seamaster                330,400,000.

   1951        1961     USAF   ANP (Nuclear Air Craft)  511,600,000.

   1952        1957     USAF   C-132                     54,000,000.

   1952        1959     Navy   ZIP (Hi Energy Boron)    123,000,000.

   1956        1958     Navy   F-8U-3                   100,000,000.

   1956        1959     USAF   ZIP (High Energy Boron)  135,800,000.

   1957        1958     USAF   GAM-67 Crossbow           74,600,000.

   1957        1966     Army   E-49 (Area Scanning Alarm) 3,900,000.

   1958        1967     USAF   XB-70                  1,468,000,000.

                        USAF   F-111 (TFX airplane)   1,800,000,000.

For the period 1947 to 1970, the above listing represents SOME of the military programs set up and cancelled for the purpose of funding A-projects. Others were funded from AEC programs.

Of this short list alone, the average annualized capital available would equal USA$ 4,707,000,000. (1957) divided by 22 years OR $ 213,954,500. per year.

During this period, the purchasing power of the USA dollar decreased by at least 1/2 and the purchasing power of the 1950 $US compared to the purchasing power of the 1990 $US would be approximately 4.75:1.00

It is unlikely that such programs have received a lower funding on a dollar value purchase basis since and together with the expected AEC program participation, the average annualized investment has approximated the purchasing power of 1990 U.S. $1,800,000,000.

Between 1947 and 1962 the average "retained" large military program, on the average, had a final price 3.2 times the initial cost estimates. The F-111 was originally calculated to cost $4.9 billion. By 1968, the cost would have been $14.6 billion, so the program was cancelled. One way to have a program cancelled is to quickly exceed the estimated budget by several hundred percent at a fraction of the contract duration.

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