the hologram should be sampled at each pixel, as in the A-K, to reduce or eliminate false images. Chapter III also describes the SBP required of the CGH to perform the optical correlation. The SBP drives the size, complexity and expense of the CGH. When used as a matched filter, the requirements are more stringent than when used for reconstruction holography. However, when the techniques presented at the end of the chapter are incorporated, the SBP requirements can be minimized. Chapter IV describes preprocessing techniques useful in optimizing the CGH matched filter. The high-frequency emphasis and phase-only filtering increase the discrimination against false targets but sensitize the filter to scale and rotation. The phase-only filter, although easy to implement, is not unique in its ability to improve signal-to-noise and efficiency. Rather, it is a form of high .frequency emphasis which may or may not be optimum. It does minimize the dynamic range but may not be the appropriate choice for a specific application. The rules describing the application of high frequency emphasis should be applied to each case. The exception is when an on- axis hologram is to be phase modulated so as to require the reference to contain no amplitude information. The phase-modulation process applied to the physical hologram should not be confused with the phase-only filtering step which is applied to the reference information. That is, a phase-modulated hologram can utilize the normal reference information, frequency emphasis or phase-only filtering. In general, the phase modulation provides considerably higher efficiency with an accompanying loss of signal-to-noise ratio due to the non-linearity. When using binary