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HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex


                     HCO POLICY LETTER OF 30 APRIL 1965


Remimeo


                             EMERGENCY, STATE OF





    When an org or portion  of  an  org  has  consistently  down  statistics
(O.I.C.) or numerous non-compliances or offences, it is declared to be in  a
STATE OF EMERGENCY. This can be assigned to a  unit,  sub-section,  section,
department, division or the entire organization. It is  not  assigned  to  a
person.

    A small flag on a pin is placed on the org board at the end of  the  org
board name of the portion or organization. The flag is bright red.

    The condition is assigned only by the Office of LRH.

    Flags are also  used  for  other  conditions  assigned.  These  too  are
assigned only by the Office of LRH.

    Conditions including  Emergency  are  ended  when  a  new  condition  is
assigned or just ended. This is done only by the Office of LRH.

    To end an Emergency condition the portion of Scientology to which it  is
assigned must  follow  closely  the  Emergency  Formula.  On  any  condition
assigned, its formula must be followed  scrupulously  and  the  steps  taken
must be reported one by one by the most senior person  in  the  portion.  In
the case of an org in Emergency the reports are made to the  Office  of  LRH
Saint Hill by the HCO Executive Secretary  or  HCO  Area  Secretary  in  the
absence of an HCO Executive Secretary.

    In addition to following the Emergency formula  closely,  the  following
policies apply to the portion in a State of Emergency:

                              ETHICS STIFFENED


    1. A report of an error, misdemeanour or crime on any  staff  member  in
    that portion counts as   five reports in other conditions and  is  acted
    on by a Court of Ethics at once.

                              CREDIT WORTHLESS


    2. The credit of the portion is worthless and it  may  have  only  those
    bare things necessary to       carry out the Emergency formula  so  that
    it can promote or deliver.

                              NO NEW PERSONNEL


    3. No personnel may be added to the portion in a State of Emergency.  No
    new people may be  hired on for the portion in a State of Emergency.  No
    personnel may be transferred to a    portion  that  is  in  a  State  of
    Emergency unless  an  incumbent  is  transferred  off,  and  in  such  a
    way that the personnel of the portion does not increase in number.

                                   RIGHTS


    4. Precedent and privilege are suspended  for  the  officers  and  staff
    members of a portion in a      State of Emergency.

                                   STATUS


    5. No staff status  may  be  increased  in  a  portion  in  a  State  of
    Emergency.

    If the State of Emergency is continued beyond the allotted time  period,
then these policies apply:

    6. Deputy, Acting  and  Provisional  assignments  and  appointments  are
    cancelled throughout the       portion.

    7. The fact of having been part of a portion which did  not  recover  is
    filed in the personnel files   of each  staff  member  present  in  that
    portion at the moment the State of Emergency was     assigned,  and  the
    statement is made on a red sheet of paper.

    8. The executive  personnel  will  be  ordered  before  a  Committee  of
    Evidence to the