Approved For Release 2001 10788R002000250052-7
  SG1J 17 Nov 80
  MEMORANDUM FOR THE RECORD
  SUBJECT: FONECON Between and LTC Watt, 13 Nov BO
       SG1J 1. (U) At 1545 hrs, 13 Nov 80$ 1 called and informed
  him that I had just talked to Dr. Hal Puthoff, SRI-I..
       SG1J 2. (5) 1 told @ that Dr. Puthoff had raised the following issues with
  me and I thought it prudent to pass them on to him SG1J
  a. ( 5:) Dr. Puthoff and his immediate associates were being forced to
  take leave by SRI-I management due to lack of contraciuralfunds being made
  available. I do not know exact status of Puthoff, Targ, etc ... whether they
  are on administrative leave, leave without pay or regular leave.
       b. S') Dr. Puthoff stated that the money from ACSI (50K) had not
  arrived. I assured him that the 50K had been transferred from ACSI to FTD and
  allconcerned were doing their best to expedite the funds to SRI-I.
  c. (S') Dr. Puthoff then informed me that by the end of this month
  he would have to make a decision on the number of personnel that would have to
  be dropped from their program. He explained that the contractural effort
  currently being staffed by DoD would not be sufficient to cover the expenses
  of his current group for a complete year. Either the size of the staff had
  to be cut, stated Puthoff, or more monies had to be put into the effort.
  Although I understood his problem, I informed Dr. Puthoff that there was nothing
  I could do as far as obtaining additional dollars for his program. However,
  I assured him that I would, againt stress the need to get currently planned
  proposals firmed up and get money into the system as soon as possible.
  SG1J
  SG1J 3. (S/NOFORN) I told that he might want to let Dr. Vorona know about
  the above conversation and tRa he might want -to check with
        SG1J rep at SRI-I) and see if things really were that bad. Further, I reminded
  that we had indications that CIA and NSA mi(pt be willing to put some
  money into the project. If so, maybe Dr. Vorona could pursue that angle and
  advise Dr. Puthoff of the results.
        SG1J 4. ( C) Finally, I told@@that I was going ahead with my plans to
  visit SRI-I in early Dec 80. He suggested the earlier the better .... if for no
  other reason than to show SRI-I management that DoD was really serious about
  future contract work.
  "'_ ('@ I do)t,
  MURRAPB. WATT
  LTC, MI
  INSCOM GRILL FLAME
  Project Manager
  NOT ZELUSABTE To FORFiGN NATIoNALS GRILL FLAME
                                                          Approved For Release 2LU M40M 0K1MM6-0=88!R00=W25M2A I-ISH
  a
                         %W a % L. I DTG: 05163OZTL 78
  REVIEW ON: November 2000