OSI [Office of Scientific Intelligence] has investigated the work currently being performed on flying saucers. Since 1947, ATIC [Air Technical Intelligence Center] has received approximately 1500 official reports of sightings plus an enormous volume of letters, phone calls and press reports. During the month of July 1952 alone, official reports totaled 250. Of the 1500 reports, Air Force carries 20% as unexplained. A study should be instituted to determine what, if any, utilization could be made of these phenomena by United States psychological warfare planners, and what, if any, defenses should be planned in anticipation of Soviet attempts to utilize them. A national policy should be established as to what should be told the public regarding the phenomena, in order to minimize risk of panic. It is recommended that: a. The Director of Central Intelligence advise the National Security Council of the security implications inherent in the flying saucer problem. b. CIA, under its assigned responsibilities, and in cooperation with the psychological strategy board, immediately investigate possible offensive or defensive utilization of the phenomena for psychological warfare purposes both for and against the United States.