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Hersh is still, after decades, somewhat inept in dealing with the operational details of the military. To witt:
SEYMOUR HERSH: They did have a way. There were people there who understood what we call in America “mine warfare.” In the United States Navy, there are groups that go into submarines — there’s also one command about nuclear engineering — and there is a mining command. Underground mining is very important, and we have skilled miners. Probably the most important place for training miners is in this little resort town called Panama City in the middle of nowhere in Florida.

This is the USN heavy suit diving school. It was previously located at the Washington Navy Yard for many years. WNY was a less than good location by the time it moved about 1982. The water in the Anacostia River is dirty, dark and contains a lot of hard and heavy objects. Weather is cold and unpredictable about half the year and yes there is a classified component to the hevy suit trade so getting it out of DC made sense. However the facility at Panama City Fl is not fundamentally some sort of spook school. Its purpose is to train the people who conduct hundreds of routine under water hull inspections each year. The expdlosive training is primarily focused on traing divers to use explosives to clear under water navigation hazards. Finally, Panama City is not exactly in the middle of nowhere but is one of a string of middle sized cities along the west panhandle coast of Flrorida.