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The Department of National Defence transferred its files to the National Research Council. It was generally believed that most of the reports did not pose a threat to national security, but that rather "a number of investigations of the reports suggest the possibility of UFOs exhibiting some unique scientific information or advanced technology which could possible contribute to scientific or technical research." ["Unidentified Flying Objects (UFOs) - Investigations", September 1967 (memo)]

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Three reports were highlighted by the Department of National Defence and the files were transferred to the National Research Council as unsolved: the Falcon Lake encounter, the Duhamel crop circles and the Shag Harbour landing. The department also asked to be kept advised of matters that would threaten national security. Reports continued to be submitted to various government departments.

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