section 152 of this title, except that such purchases and contracts may be negotiated by the agency head without advertising if (1) determined to be necessary in the public interest during the period of a national emergency declared by the President or by the Congress; (12) for supplies or services as to which the agency head determines that the character, ingredients, or components thereof are such that the purchase or contract should not be publicly disclosed; 153 *** Except as provided in subsection (b) of this section, contracts negotiated pursuant to section 151(c) of this title may be of any type which in the opinion of the agency head will promote the best interests of the Government. Executive Order 10501, December 15, 1953, 18 Fed. Reg. 7049: Safeguarding Official Information in the Interests of the Defense of the United States WHEREAS it is essential that the citizens of the United States be informed concerning the activities of their government; and WHEREAS the interests of national defense require the preservation of the ability of the United States to protect and defend itself against all hostile or destructive action by covert or overt means, including espionage as well as military action; and WHEREAS it is essential that certain official information affecting the national defense be protected uniformly against unauthorized disclosure: NOW THEREFORE, by virtue of the authority vested in me by the Constitution and statutes, and as President of the United States, and deeming such action necessary in the best interests of the national security, it is hereby ordered as follows: 7(b) Dissemination Outside the Executive Branch. Classified defense information shall not be disseminated outside the executive branch except under conditions and through channels authorized by the head of the disseminating department or agency, even though the person or agency to which dissemination of such information is proposed to be made may have been solely or partly responsible for its production. (2730-0) Cases: No. 504 MEMORANDUM FOR THE RESPONDENTS INDEX CITATIONS Brown v. Board of Education, 344 U. S. 1 Greene v. McElroy, 254 F. 2d 944 Hamilton Shoe Company v. Wolf Brothers, 240 U. S. 251 Johnson v. United States Shipping Board, 280 U. S. 320 Kinsella v. Krueger, 350 U. S. 986, 351 U. S. 470 White v. Mechanics Securities Corp., 269 U. S. 283 20 Fed. Reg. 1553 Rule 20, Rules of the Supreme Court of the United MEMORANDUM FOR THE RESPONDENTS The petition for a writ of certiorari asks the Court to review a civil case pending on appeal in the Court of Appeals for the District of Columbia Circuit, prior to rendition of judgment by that court, as authorized by 28 U. S. C. 1254 (1) (Pet. 2). Between February 21, 1941, and September 11, 1956, petitioner, a tool and die maker (milling machine operator) with the Bell Aircraft Corporation, held a “company confidential" security clearance granted by the Corporation in accordance with a security agreement then in effect between the Government and the Corporation (S. Ex. 3).' This clearance granted petitioner access to "confidential" defense security information (ibid.). In order to utilize petitioner on a defense contract requiring clearance for access to "secret" defense security information, the Corporation, in the proper manner, requested petitioner's clearance for access to such information (ibid.). 'The letter "S" refers to the Stipulation of Facts entered into by the parties. On September 10, 1956, petitioner was advised by the Director of the Office of Industrial Personnel Security Review of the Department of Defense that his existing clearance had been suspended (S. Ex. 7). At the same time petitioner was presented with a detailed "Statement of Reasons" (S. Ex. 7) and was advised that he could reply thereto in writing under oath and submit affidavits by third parties and such other documentary evidence as he might desire in support of his answer (S. Ex. 7). He was further advised that he was entitled to a hearing on the "Statement of Reasons" at which he could appear by counsel, or in person, or in person with counsel, and present evidence in his own behalf including testimony and witnesses (ibid.). On September 11, 1956, petitioner's employment with Bell Aircraft was terminated by the Corporation (S. Ex. 8). On November 1, 2 and 14, 1956, petitioner received a hearing in accordance with the provisions of the Industrial Personnel Security Review Regulation (20 Fed. Reg. 1553) (S., par. 12). On June 14, 1957, he was advised that, on the available information, the granting of clearance to him for access to classified defense information "is not clearly consistent with the interests of national security" (S. Ex. 14). At this |