Ronald McRae, a former investigative reporter [tells of] the military's forays into parapsychology, the quasi-science that studies the interaction of mind and matter. According to McRae, who is skeptical of psychic claims, the Department of Defense has spent $6 million annually in recent years to research such phenomena as extrasensory perception (E.S.P.) and mental telepathy. The Pentagon denies any interest in parapsychology. But in an interview with the New York Times, retired Lieut. General Daniel O. Graham, former head of the Defense Intelligence Agency, indicated that the military had unquestionably been involved in psychic research. While he considered McRae's $6 million budget figure an exaggeration, he said, I wouldn't be surprised if the intelligence community were following this. They would be remiss if they didn't." Back in December 1980, Military Review, a journal of the U.S. Army, carried a cover story titled "The New Mental Battlefield" [in which] Lieut. Colonel John B. Alexander wrote that "there are weapons systems that operate on the power of the mind and whose lethal capacity has already been demonstrated." He ... urged the U.S. to step up its research in the field. "I know the Government's involved," says Physicist Russell Targ. "I did the work," he contends. He maintains that there was a "multimillion-dollar" project, part of which focused on "remote viewing" experiments. On a visit to the U.S.S.R. in October, Targ found that the Soviets had replicated some of the experiments he and his colleagues had reported in scientific journals. Says Targ: "In the Soviet Union, psychic research is taken seriously at the highest levels."