December 5, 1950.

Dear Max-

Thank you for your letter of the 30th. Theres are a couple of points
which may need some elaboration.

I am grateful to you for the confidence implicit in your suggestion
that the budget for the grant might be augmented. Make no mistake about
it, I'm not coy about asking for money. However, the X-ray project is
not directly one of the main lines of research in the laboratory, but
just one phase. At the moment, I would not like to comalt the lab. to
an extensive pursuit of this phase, as would be implied by accepting a
larger grant. If we had the space, I'd be glad to put someone fulltime
on it (and ask for a proportionately larger measure of support), but
this would not be possibie for about anothar years By that time, I will
know whether I want to push this angle, whether it is likely to pan out
to something useful, and the AEC will know better whether it will have
a special interest from its side in furthering the problem. Until then,
I feei that the acceptance of a larger contract might constitute some
pressure to emphasize this particular work to an extent that might pre-
judice our other projects, espacialiy with ths spaca limitations we are
eaduring now. Another viewpoint has to be considered. If the ATC's position
ig likely to change in such a way that projects will be frozen during
1951, it night be advantageous to present a more comprehensive plan now.
However, unless there is a decisive advantage in favor of this tack, I
would prefer to start on a amall scale.

There are a few specific procedural questions, your advice on which would
be helpful. Firstly, allowing two or three weeks here for red tape, is
March 1, 1951 a feasible starting date? The matter is quite flexible, but
I would prefer the earliest date posshble.

Secondly, can you cite an established overhead rate? Our business office
will be most concerned about this. Do you operate on a fixed & of direct
labor, like the Army, or can it be put under any other terms?

Thirdly, the formal application will undoubtedly have to be transmitted
by our Vice-President for business affairs. To whom should it be addressed?

Finally, will I have to write quarterly reports (as with the Asmy 7)

For something on this scale, would it be possible to waive suchd a requirement,

or can it be met in form without mich trouble?

Thanks very much for your interest and help, sincerely,

Joshua Lederberg