🧵I transcribed page 7 through 16 of the Australian National Archives David Grusch mentioned yesterday on the Hill. See @UAPWatchers post for direct link to the scanned images.

May ’71 — SUMMARY
The early analyses of UFO reports by USAF intelligence indicated that real phenomena were being reported which had flight characteristics so far in advance of U.S. aircraft that only an extra-terrestrial origin could be envisaged. A government agency, which later events indicated to be the CIA Office of Scientific Intelligence (OSI), studied the UFO reports with the intention of determining the UFO propulsion methods. At that time, OSI was responsible for intelligence on foreign research and development in nuclear and missile matters.
1.The CIA became alarmed at the overloading of military communications during the mass sightings of 1952 and considered the possibility that the USSR may take advantage of such a situation. As a result, OSI, acting through the Robertson-panel meeting of mid-January 1953, persuaded the USAF to use Project BLUE BOOK as a means of publicly “debunking” UFOs, and at a later stage to allocate funds for the Avro advanced “saucer” aircraft and the launching of a crash programme into anti-gravity power. To initiate such programmes decades ahead of normal scientific development would indicate that the U.S. Government acknowledged the existence of advanced “aircraft” which presumably used a gravity-control method of propulsion. An additional motivation could have been the fear that the USSR would achieve this goal before the U.S.
2.By erecting a facade of ridicule, the U.S. hoped to allay public alarm, reduce the possibility of the Soviet taking advantage of UFO mass sightings for either psychological or actual warfare purposes, and act as a cover for the real U.S. programme of developing vehicles that emulate UFO performances. The RAAF, together with many other countries of the world, give credence only to the USAF public facade and appear to have uncritically accepted the associated information. This information has been widely discredited by retiring U.S. service personnel formerly engaged on UFO investigations, as well as by scientists and private citizens.
3.The conclusions of the Condon report conflict with its own contents and have been discredited by many reputable scientists, including the UFO scientific consultant to the USAF. In accordance with the recommendations of the Condon report, Project BLUE BOOK was terminated, but presumably this would have little effect on the main programme.
4.It would appear wrong for Australia to remain ignorant of the true situation. We lack an intelligence viewpoint that can assess the nature and possible consequences of the problem, a scientific viewpoint that could derive scientifically valid data from the reports, and a public relations viewpoint that can honestly satisfy public interest. To overcome these deficiencies in the Australian investigation of UFOs, it would seem that a strong case exists for the acceptance of the RAF suggestion that another government department assume responsibility for the investigation and analysis of UFO reports. U.S. OFFICIAL ATTITUDE TO U.F.O.s
1.In June of 1947 the Air Technical Intelligence Centre (ATIC) near Dayton, Ohio, assumed a responsibility to investigate the initial reports of ‘flying saucers’. Within a month it was considered that the phenomena were real and probably of Soviet origin. By the end of the year, when ATIC was officially authorised to investigate under the project code name of SIGN and with a high priority, most of the investigators were focussing on an interplanetary rather than a Soviet origin. These opinions were crystallized into a written estimate that was sent to the Pentagon in September 1948. When the interplanetary conclusions were rejected on the grounds of insufficient hard evidence, a reaction set in at ATIC against trying to unravel the UFO problem.
2.In February 1949, ATIC personnel on Project SIGN were replaced with new personnel to form Project GRUDGE. A definite attempt was made during 1949 to use Project GRUDGE to destroy any acceptance of UFOs. The motives for this are not clear: possibly Air Force embarrassment at being incapable of controlling the situation and/or a fear of national panic prompted USAF to try and remove the problem by denying its existence. Another possible motive may have been to provide a breathing space for another “investigative agency” to reach some conclusion; the agency had been assisting ATIC through 1948 and, contrary to official USAF policy, was maintaining a high level of interest during 1949. This governmental agency was not the FBI, and had rocket, nuclear and intelligence experts; their purpose was to study UFO reports in an effort to gather design data on interplanetary spaceships. In the light of later developments, this agency was almost certainly the CIA.
3.Project GRUDGE failed to eliminate the UFO problem. UFO reports in 1949 actually exceeded the number in 1948, and several people who had gained access to earlier official reports were able to contradict the USAF. Journalists generally felt that GRUDGE reporting represented a cover to a more serious knowledge. Eventually, USAF intelligence decided that a fresh approach to the problem was necessary. Between September 1951 and the establishment of Project BLUE BOOK in March 1952, UFO investigation regained adequate financial and administrative support to once again analyse the collected data. Project BLUE BOOK was able to process the data from 3,200 reports into a form suitable for their consultants to be able to use IBM card-sorting machines.
4.The summer of 1952 saw a more than twenty-fold rise in the normal rate of reporting and included the two extensive July sightings involving Washington D.C. This marked increase in sightings had diverse effects. A component of USAF intelligence considered that UFOs were interplanetary spaceships which were about to make closer contact. To prepare the public for this possibility, 41 previously classified reports were released for publication between August 1952 and February 1953. These reports contradicted the earlier official USAF policy of dismissing the reports as misidentifications etc. On the other hand, the CIA regarded the summer UFO activity as a threat to national security, mainly because the resulting crowded communications and defence forces involvement lessened the level of national alertness against possible enemy attack.
5.A scientific panel chaired by H.P. Robertson was convened by the Office of Scientific Intelligence of CIA during mid-January 1953 for the purpose of recommending future action on the UFO problem. Briefings were made both by CIA and USAF. ATIC personnel showed two then-classified movie films of UFOs and the early results of statistical analysis of 3,200 reports. Because of the vital issues involved, the panel felt restricted to recommending that the investigation be continued, but with increased personnel and equipment. The USAF responded promptly with an instruction to comply with these recommendations.