of investigation containing derogatory information, or upon the receipt of credible derogatory information from any source, falling within the criteria specified in paragraph 17a, action will be taken in accordance with a through c below:

a. The commanding officer will take such action as is necessary to protect the security of the installation or of classified information or material pending further action and a final decision in the case. If the record available indicates that retention of the employee in a duty status pending adjudication of his case is not clearly consistent with the interests of the national security, the employee will be suspended as indicated in paragraph 42. If at any time a determination is made that retention in employment may not be clearly consistent with the interests of the national security, action concurrent with that determination will be taken to revoke the employee's security clearance, if any which revocation shall remain effective until final disposition of the case.

b. A positive determination in the light of the security criteria set out in paragraph 17 will be required to be made in each case indicating whether or not on all the information available the employee's continued employment would be clearly consistent with the interests of the national security together with recommendations as to the action to be taken in the case. If the information available is not sufficient for a positive security determination, the local commander may request additional investigation with appropriate justification.

c. The complete case file will be forwarded to major command headquarters with a detailed explanation of the reasons and basis for the commanding officer's determination. If the employee has been suspended, the case file must be forwarded within 3 working days after suspension. The record also must show the following:

(1) The grade, title, and salary of the position occupied.

(2) The degree of sensitivity of the position in terms of security clearance and access to classified information and material.

(3) Whether similar nonsensitive positions exist at the installation or elsewhere to which the employee could be reassigned or transferred.

(4) The steps taken to protect national security

(5) Whether the employee has served a probationary or trial period or when such period will end.

(6) Whether the employee is a United States citizen or an alien.

(See 23c (7), change No. 2, p. 116.)

24. Action at major command headquarters. Upon receipt of the case file from the employing installation, the major command headquarters will—

a. Make a positive determination as to whether continued employment would be clearly consistent with national security together with recommendations as to the action to be taken in the case.

b. Prepare a digest of the case giving the essential facts and outlining in detail the reasons and basis for the determination and recommendations. The digest should cover the derogatory and favorable information, correlating that information when pertinent.

d. If the employee has been suspended, the case must be forwarded within 3 working days after receipt at major command headquarters.

e. Any additional information available will be added to the files.

26. Action by Assistant Chief of Staff, G-2, Department of the Army.-The case file will be reviewed in detail in the Office, Assistant Chief of Staff, G-2, Department of the Army. That office may take any of the following actions: a. Recommend revocation of the security clearance, if any, and/or suspension of the employee.

b. Issue an interrogatory for delivery through channels for completion by the employee.

c. Request or undertake further investigation.

d. Return the case to the major command for interview, under oath, with the employee. A verbatim transcript of such interview will be made a part of the official record in the case.

e. Whenever it is determined by the Assistant Chief of Staff, G-2, that employment is not clearly consistent with the interests of the national security or whenever such action is deemed advisable, the case will be forwarded to the Security Screening Board in the Office, Secretary of the Army for further action. When

forwarding the case the Assistant Chief of Staff, G-2, will make a positive recommendation as to whether retention in employment would be clearly consistent with the interests of the national security and will indicate the reasons and basis for the recommendation. If the recommendation of the Assistant Chief of Staff, G-2, is unfavorable, a suggested list of charges to be issued will also be submitted.

f. Whenever it is determined by the Assistant Chief of Staff, G-2, that continued employment would be clearly consistent with the interests of national security and retention of the employee is recommended, that office may close the case favorably without further action. In such cases the Assistant Chief of Staff, G-2, will prepare appropriate notification in behalf of the Secretary of the Army for transmission to all offices concerned. The installation commander concerned will execute DA Form 873. Distribution of the clearance certificate will be in accordance with paragraph 14.

27. Action by the Security Screening Board. The Security Screening Board will consider the cases referred to it and after review of the cases will make recommendations to the Secretary of the Army. The Security Screening Board may take any of the following actions:

a. Recommend that continued employment would be clearly consistent with the interests of the national security. In such cases the Assistant Chief of Staff, G-2, will be so informed. If that office concurs in the Screening Board's recommendation, the case will be forwarded to the Secretary of the Army with a statement of such concurrence and, if approved, letters of notification will be sent to all interested offices. If the Assistant Chief of Staff, G-2, does not concur in the Screening Board's recommendation, the Assistant Chief of Staff, G-2, will prepare a detailed rationale setting forth the reasons for nonconcurrence and the case, with the explanation of nonconcurrence, will be submitted to the Secretary of the Army for decision. Based on the decision of the Secretary of the Army the case will either be closed favorably and a letter of notification sent to interested offices, or a letter of charges will be issued and the case referred to the appropriate Security Hearing Board for action.

b. Determine that an interrogatory is necessary or that an interview with the employee under oath should be undertaken. In such case the Board will prepare the interrogatories or outline the areas to be covered in the interviews and then return the case for reprocessing.

c. Determine that further investigation is necessary in which case the Board will outline the areas to be covered and return the case for reprocessing.

d. Determine that continued employment would not be clearly consistent with the national security. In each such case the Board will make an unfavorable recommendation and, if approved, will prepare a letter of charges for delivery to the employee. The letter of charges will contain the following:

(1) The charges will be specific and will give as much information as secu-
rity conditions permit in order to provide the employee with sufficient
information upon which to prepare his defense against the removal
action.

(2) Notice of right to answer the charges in writing in duplicate, together
with such statements, affidavits, and other documents as the employee
may wish to submit. Failure to submit any kind of reply within 30 days
after receipt of the letter of charges will be considered to mean that
the employee has waived all rights to a hearing.
(3) If the employee is entitled to a hearing, notice of right to an adminis-
trative hearing at the employee's request before final removal is
effected. The employee will be advised also that he may appear before
the designated Security Hearing Board with or without counsel or
personal representative and will be given the opportunity to present
evidence and witnesses in his own behalf.

(4) Notice that the employee will be carried in a suspension without pay
status pending adjudication of his case and that removal would not
be effected in less than 30 days after receipt of the letter of charges.
(5) A statement of the authorities for the action taken.

e. The Board will notify all interested officers of the action which has been taken.

f. When the employee is entitled to a hearing, the case will be referred to the appropriate Security Hearing Board for action and a complete case file will be made available to that Board.

95-901 0-68-app. vol. 1

28. Delivery of letter of charges to the employee. Upon receipt of the letter of charges the installation commander will notify the employee concerned to report to the appropriate official at the installation. Upon so reporting the employee will be given the letter of charges and a copy of these regulations, will be asked to sign a receipt in duplicate, and will be advised that further contacts on his case are to be made with the Executive Secretary of the appropriate Security Hearing Board. One copy of the receipt will be forwarded to the Executive Secretary of the appropriate Security Hearing Board and the other to the Administrative Assistant, Office, Secretary of the Army. If personal delivery is not practicable, the letter of charges will be sent to the employee by registered mail with request for return receipt signed by addressee only. The signed receipt will be forwarded to the Executive Secretary of the appropriate Security Hearing Board to be made a part of the official file in the case and the Administrative Assistant, Office, Secretary of the Army notified. If the employee has not already been suspended, such action will be taken in accordance with paragraph 41 and the Standard Form 50 (Notification of Personnel Action) will be given to the employee with the letter of charges.

29. Effect of adjudications.-Whenever a case is finally adjudicated in the employee's favor, that is, where it is ultimately determined that employment is clearly consistent with national security, the following instructions will apply. a. Final favorable adjudication in any case will result in granting the degree of security clearance necessary to permit access to classified information and material used by or available to the employee in his regular position on a needto-know basis. The final notice of a favorable adjudication will be used as the basis for granting such clearance. If the employee is to be reassigned or employed in another position where security clearance is necessary, a determination is required as to whether employment in that position would be clearly consistent with the interests of national security.

b. Once a case is adjudicated favorably the case will not be reopened unless additional derogatory information is received or conditions of employment are changed as indicated above or for any other reason which brings the interests of national security into consideration. In such cases removal action may again be initiated but derogatory information which was successfully refuted during the previous proceedings should not be reused unless its efficacy has been reestablished.

SECTION VI

REVIEW AND READJUDICATION

30. Requirements for readjudication.-Executive Order 10450 directs a review and readjudication of all cases not previously adjudicated under a security standard commensurate with that established under that Order. To insure early compliance with the above requirement, action will be taken to review and readjudicate the cases of all employees with respect to whom there has been previously conducted a full field or background investigation under Executive Order 9835, Public Law 733, 81st Congress (SR 620-220-1, 13 November 1950), or Public Law 808, 77th Congress (SR 620-220-1, 16 October 1949), and earlier directives. This is to insure that the continued employment of the person concerned based on the standard and criteria of Executive Order 10450 as particularized herein is clearly consistent with the interests of the national security. Whenever a review of the record indicates that continued employment would not be consistent with the interests of the national security, the case will be readjudicated in accordance with these regulations.

31. Additional investigation required. In those cases where additional information is required prior to making a security determination the commander concerned will take action to obtain such information.

32. Notifications to the Assistant Chief of Staff, G-2.-If action is taken under either paragraph 30 or 31, commanders concerned will submit a letter report to the Assistant Chief of Staff, G-2, Department of the Army, Washington 25, D.C., ATTN: Chief, Security Division, indicating the following: a. Name of employee.

b. Title of position occupied.

c. Dossier number of the case.

d. Date case reopened.

e. Date previously adjudicated and case closed.
f. Under what authority previously adjudicated.

g. Whether additional investigation is required; if so, the date requested. 33. Favorable determinations. In these cases where it is determined that continued employment is consistent with the interests of the national security complete processing under these regulations is not necessary. In such cases the following action will be taken at the employing installation:

a. DA Form 873 will be executed by entering in the remarks section the following statement: "Reviewed and readjudicated favorably on---. Con(Date) tinued employment in the present position is deemed clearly consistent with the interests of the national security."

b. DA Form 873 will be distributed as required by AR 604-5, except that under this paragraph the G-2 Central Records Facility file copy of the clearance certificate will be forwarded by the major command to the Assistant Chief of Staff, G-2, Department of the Army, ATTN: Chief, Security Division, through the head of the administrative or technical service, if appropriate. When forwarding the clearance certificate the major command will enter the dossier number of the case on the Form 873.

SECTION VII
HEARINGS

34. Employees' rights to hearings.-Public Law 733, 81st Congress provides that a personal appearance hearing, at the employee's request, will be granted to a United States citizen employee who has a permanent or indefinite appointment and who has served a probationary or trial period.

a. United States citizen employees serving under appointments limited to 1 year or less, including experts and consultants, ordinarily will not be removed under these regulations, unless there are reasons why removal action is necessary in the interest of national security and then only if it is believed that final action can be completed before the end of the term of appointment. Appointments of such employees will not be renewed if the record indicates that employment is not clearly.consistent with the interests of national security. When the investigative reports indicate that such employee constitutes a threat to national security his appointment should be terminated without reference to security.

b. Aliens serving overseas may be removed under these regulations or separated under appropriate Civil Service rules and regulations, whichever is deemed more appropriate under the circumstances of the case. No hearings will be provided.

c. Aliens serving in the United States, regardless of whether they have taken formal action signifying an intention to become United States citizens, will be treated the same as aliens serving overseas.

d. An employee whose removal is contemplated under these regulations and who is not authorized a hearing will be given a letter of charges explaining the reason for the proposed action, an opportunity to submit within 30 days statements and affidavits or other material in reply to the charges, and a written decision by the Secretary of the Army after a detailed review of all available information.

35. Preliminary arrangements for hearings.-After delivery of the letter of charges and referral of the case from the Office, Secretary of the Army, the Executive Secretary of the designated Security Hearing Board will proceed according to a through d below. Since hearings are a matter of statute, the Executive Secretary will be responsible for assuring that the right to hearing is not curtailed or abridged because of misunderstanding by the employee or by arbitrary action.

a. If the employee makes no reply to the letter of charges within the 30-day limit, the case will be closed without further action (par. 20g). No appeal of any kind will be granted in such cases. Although a full reply should be made, the employee does not have to submit a full reply within the 30-day limit in order to request a hearing. A simple acknowledgement with request for consideration by the Board will suffice.

b. Whenever the employee's reply to the letter of charges does not indicate specifically whether a personal appearance hearing is desired, the Executive Secretary will write to the employee and obtain a definite statement as to the employee's desires.

(See 35c, change No. 1, p. 114.)

d. If the employee signifies a desire to appear personally or by counsel or other personal representative, the Executive Secretary will—

(1) Review the file in detail. If there is a reasonable basis for believing that the record then available, including the evidence submitted by the employee, is sufficient to arrive at a clearly favorable finding, an advisory panel of the Board may be named. If that panel agrees, the panel should then be named officially and should meet in executive session to prepare its findings according to paragraph 39. In such cases it is essential that the basis for the Board's decision be carefully and completely set forth explaining clearly why it is felt that a hearing is not necessary. The case will then be returned to the Administrative Assistant without a formal hearing. The employee need not be advised of that action unless he makes inquiry concerning his case.

(2) Select a panel of the Security Hearing Board and proceed according to paragraph 20.

(3) Obtain the employee's official personnel folder and make it a part of the official record in the case.

36. The hearing.-Hearings will be conducted in an orderly manner, in a businesslike atmosphere of dignity and decorum; however, the hearings are not to be conducted as courts of law nor as military courts-martial, for strict rules of evidence and formal court procedures are not followed. The hearing is an administrative proceeding for the purpose of obtaining all available facts in the case and assuring that the employee has a full and adequate opportunity to be heard. Detailed instructions for conducting hearings will be supplied through other media; however, hearings will conform generally to the following!

a. The Chairman will be in charge of the hearing and decisions will be made by him with the concurrence of the other members of the Board.

b. An attorney-advisor will be made available to provide advice and assistance to the Board in preparing for and conducting the hearing. The attorney-advisor will be given the lead in direct questioning and in cross-examination of the employee and his witnesses, but the members of the Board may ask any questions they desire. An officer of The Judge Advocate General Corps may be assigned also to assist the board.

c. The major commander concerned will designate a security advisor to assist the Board in security matters. The security advisor will be present during the hearing and may meet with the Board in executive sessions to discuss security matters which may arise. If the security advisor wishes to have questions directed to the employee or his witnesses, he may submit such questions to the Chairman or the Attorney-Advisor, who, in his discretion, may ask them of the employee or his witness.

d. Hearings may be attended only by members of the Security Hearing Board, officials of the Army Establishment who have an official connection with the program and the case, Government and employee witness only while they are testifying, the employee, his counsel or personal representative, and necessary clerical and technical assistants. The employee and his counsel or personal representative will be permitted to be present throughout the hearing, except for executive sessions.

e. All testimony will be given under oath, administered by the Chairman, under authority hereby granted by the Secretary of the Army. The person responsible for preparing the verbatim transcript (reporter) will also be sworn. A complete accurate verbatim transcript will be prepared in quadruplicate and certified to by the reporter.

f. The Government and the employee may introduce such evidence, oral or written, as the Board may consider proper. Strict rules on admissibility of evidence will not be followed but reasonable bounds of relevancy, competency, and materiality will be maintained.

g. Hearings will be called to order by the Chairman who will make an appropriate opening statement in which will be included the authority for the Board and the hearing; notice to the employee concerning the conduct of the hearing as an administrative proceeding and not as a court of law; advice that the employee may participate in the hearing, be represented by counsel or other representative of his own choosing and present witnesses in his own be half; a statement that the transcript will contain only the information elicited during the course of the hearing and that classified information will be stricken from the record; notation that a copy of the hearing transcript can be made available to the employee or his counsel upon request; and that the Board will