Local News. F/EAC meeting.

[Patrick J. Smith]

More information on the recent meeting of the F/EAC. Note that Dr.
Will has revised his available funds upwards from $1.3 million to $1.8
million. The difference: $500,000. Has the U of U then
quietly allowed Peterson's infamous "anonymous" transfer of money to
the NCFI?

**********************************************************************

WHY THE UPROAR OVER MY ABSENCE? ASKS PONS. Salt Lake Tribune; Friday,
November 9, 1990. by Tim Fitzpatrick.

U of U cold fusion researcher B. Stanley Pons Thursday described the
uproar over his recent absence as "sterile furor," but he acknowledged
he will be devoting part of his time to lab worl outside the
university.

Dr. Pons met behind closed doors with members of the state F/EAC,
which oversees the states $5 million commitment to the research
launched by [Pons and Fleischmann] in March 1989.

The chemist declined to answer most questions from reporters,
referring them to a press release distributed by his attourney, Gary
Triggs.

"The sterile furor surrounding our recent trip and our absence at the
last meeting was truly unfortunate," the release said. "...We did not
receive notice of the last meeting in time to attend. It was our
understanding that the review would take place during the third week
of November and that our attendance at any meeting prior to this would
not be required."

F. Will, director of the NCFI, has maintained that he notified both
Dr. Pons and Dr. Fleischmann, who is undergoing medical treatment in
England, that their attendance was required at the council's Oct. 25
meeting.

The statements also disputed earlier statements by Dr. Will that Drs.
Pons and Fleischmann had spent approximately $1 million in institute
funds in their research. "The only project that we have administered
at NCFI which commenced in November of 1989 was funded at
approximately $325,000."

"I am in the best position to know what the budgets are at the
institute," Dr. Will countered.

Council members indicated Dr. Pons was very willing to answer their
questions during the session, which was closed for "patent reasons,"
according to council chairman Raymond L. Hixson.

"He was very cooperative," said Mitchell Mellick, a SLC attourney and
council member. He said he didn't understand why people were saying
they could not get ahold of him."

"He expressed the idea that he wants to work in Utah," Mr. Hixson
said. "He said that over and over again."

In his statement, Dr. Pons acknowledged his request for a sabatical
leave from the university "to enable me to donate my full attention to
our research. I intend to pursue our work in several labs with
Martin Fleischmann."

Dr. Pons did not say what labs he was referring to, but he
acknowledged to a Tribune reporter that it included labs not
associated with the U of U. He did not believe it would interfere
with his committment to the university. "That's part of academic
freedom," he said.

When asked where Dr. Pons had been for the past month, his attourney
C. Gary Triggs, said, "Travelling." That travel reportedly included
an extended stay in France, although neither the chemist nor his
attourney would confirm that.

Dr. Pons sabbatical request has been passed on to Jerilyn McIntyre,
the U.'s academic vice president. Dr. McIntyre said the request will
have to be approved by the university's Institutional Council, but it
would likely not be considered before the council's meeting in
mid-December.

Dr. Pons continues to have complete faith in his research, which has
drawn criticism from off and on the university campus. He also
disputed the contention that he had not published papers on work
funded by the state.

An addendum to his press release listed seven papers he has written on
cold fusion. Two of those papers, published last July in the Journal
of Fusion Technology and the Journal of Electroanalytical Chemistry,
focused on work done last year before the institute was launched, but
it included information from the institute funded work, according to
Dr. Will.

FUSION PANEL HAS HIGH HOPES DESPITE LOWER FUNDS. SLC Tribune; Friday,
November 9, 1990.

State F/EAC members Thursday expressed continued faith in the research
at the NCFI, although they considered several cost cutting measures to
make best use of the institute's dwindling resources.

"The science is sound, and we've felt it has been all along," said
Raymond L. Hixson, chairman of the council.

Mr. Hixson said the committee was not considering cutting off the
institute before it spends the remainder of the state's $5 million,
but he said that could change if the independent scientific review
began Wednesday should come in exceedingly negative.

Institute director Fritz Will earlier estimated the remainder of the
state's funds at about $1.3 million, but he now puts the figure closer
to $1.8 million. That would carry the institute through to June 30,
1990, under the current budget.

Council member and USU Provost Karen Morse raised the possibility of
moving out of the institute's Research Park building, noting that it
was her original position when the institute was launched in August
1989 that the money not go to "bricks and mortar."

Dr. Will expressed reservations with moving out of the building
because the building provides a "focal point" for attracting private
investment.

Council members also discussed the idea of appealing to the State
Legislature for more funding. Senator Rex Black, D-SLC, indicated the
legislature might be willing to consider it.

But Mr. Hixson dismissed that idea. "I think it was a good investment
for the State, but I'm not sure the state should fund more. If it is
worth something, and I think it is, then someone in private industry
should carry it forward."

FUSION ADJUSTS TO BUDGET LIMITATIONS. Daily Utah Chronicle; Friday,
November 9, 1990. by Rebecca Walsh.

The NCFI has been forced to cut back its expenses in the event it may
be unable to draw financial support from private corporations.

Fusion researchers at the institute have already spent more than half
of the original state funds given to the NCFI, according to F Will...

Will told members of the state F/EAC that the institute has been
adjusting certain research programs and personnel positions to be able
to continue research until the end of the fiscal year.

Will told council members at the state's financial review of the
institute that by the end of the last fiscal year of the institute's
operation, $2,755,220 of the original state appropriation of $5
million was spent.

Will said, "Considerably less than half of the originally appropriated
money is left to fund the institute. Our original hope of external
funding has only yielded $100,000. We have restructured the
institute" to deal with the possibility that no external funding will
be forthcoming.

Currently the fusion institute is prepared to operate until June 30 on
the $1.3 million remainder of the state budget allocation.

We are in a position to say now that the institute can function in
that worst case scenario [of no external funding.] That is, only
operating using state funding," Will said.

Although the institute has only generated approximately $100,000 in
external funding, Will said he is confident the NCFI will raise
significant private and corporate funding, depending on the report of
a scientific review panel.

Wednesday, four scientists not affiliated with the U of U and the
institute reviewed researchers data, including the research of Stanley
Pons and Martin Fleischmann. The four member panel will issue a final
analysis of the institute's results by Dec 15.

Will said the scientific review board's report is essential to the
institute's efforts to raise external funding.

"Pending the conclusions of the external review, we have been
approached by a third party which has expressed interest in supporting
the NCFI," he said. This "third party" is willing to give $1.2
million to the institute if the external review upholds Utah cold
fusion's scientific integrity.

In addition, Will said the institute may be able to approach two other
U.S. corporations for funding if the scientific review is positive.

Until that external funding is donated, the institute will have to
depend on the state legislature for future financial support of the
institute.

"Our current budget is $1.8 million annually. In order to do the type
of research that is needed to spearhead cold fusion we would need that
type of funds," Will explained.

State Sen Wilford Black, D-SLC, said he thinks there's a "very good
chance of getting funding out of the legislature."

In the meantime, Will has submitted a restructuring proposal to U.
President Chase Peterson to enable the institute's operation at that
budgetary level. However, the proposal's approval has been postponed
until Peterson returns from a visit to Budapest, Hungary on November
17.

Joe Tesch, chief deputy attorney, said additional funding could be
raised directly by the institute as a result of patents filed by
fusion researchers {They may have to get the thing to work, first.}.
[He] said eight patents have been filed and another could be confirmed
in the future.

[Pons] also issued a statement Thursday defending his and
Fleischmann's secrecy surrounding their research, saying their efforts
to receive patent rights for their work mandates reticence when
speaking to the press and others.

"We intend to maintain confidentiality of these applications until
these sources are secured. (We have seen how such applications have
been declined by potential sponsors in the past when there has been
unjustified innuendo and interference by those who are intimidated by
this research)," Pon's release stated.

To further the institute's efforts to gain patent rights for much of
the cold fusion research performed at the NCFI, Pons has requested
sabbatical leave from the U. to give him time to work with
Fleischmann.

"I have... requested sabbatical leave from the University to enable me
to donate my full attention to our research. I intend to pursue our
work in several labs with Martin Fleischmann.

"We want to assure you of our continued commitment to this work and
to our responsibility to protect the patents in which you have a
share," the release said.

*******************************************************************

At this late date, I can only believe that this continued hiding
behind patents is much more of a justification than a genuine reason.
Pons is hiding more than just patents.

-Patrick Smith