STATEMENT OF MR. JOHN G. SCHUSTER, JR.
SUBMARINE SECURITY AND TECHNOLOGY BRANCH (OPNAV N875)

BEFORE THE SENATE JUDICIARY COMMITTEE
SUBCOMMITTEE ON ADMINISTRATIVE OVERSIGHT AND THE COURTS

March 29, 2000

I am the Branch Head for Submarine Security and Technology (OPNAV N875) reporting to the Director of Submarine Warfare (OPNAV N87). In this position I am responsible for the SSBN Security Program including all N87 projects related to Non-Acoustic Anti-Submarine Warfare (NAASW).

In the fall of 1997, I received a request from CAPT. Earl Dewispalaere, USN (ret.), then OPNAV N89B, to review an FBI affidavit regarding the disclosure of potentially classified material by Mr. Peter Lee to the People's Republic of China. I was asked to give my opinion on the seriousness of the disclosure made by Mr. Peter Lee and to further give an opinion on whether the potential disclosure of additional NAASW information during the prosecution would be warranted.

I reviewed the affidavit as well as additional published information authored by Mr. Peter Lee and wrote an internal memorandum to CAPT Dewispalaere summarizing my conclusions on November 14, 1997. This letter has been provided to the Senate Judiciary Subcommittee. In this letter, I stated that classified information at the CONFIDENTIAL level had been divulged but that the information released did not cause significant damage to national security. Moreover, it was my opinion that release of additional material during a trial would not be warranted.In the spring of 1999, I was asked by N89B to review the classification of the November 14, 1997 memorandum for release to the Cox committee reviewing the Peter Lee case. I concluded that the memorandum was unclassified and could be released.

The above actions describe my total involvement in the Peter Lee case prior to being questioned in connection with the investigations of the Senate Judiciary Subcommittee on Administrative Oversight and the Courts, starting last fall.