At least 50 people began their peaceful sit-in at interim President David McClain's office in Bachman Hall at 10 a.m. Under heavy police presence and security, they were allowed to stay overnight and could risk arrest tomorrow.

They were protesting the university's plans to enter a multimillion dollar deal with the Navy to establish a classified research on campus. There are only four existing University Affiliated Research Centers across the nation.

"This is to specifically stop the expansion of the war machine on the UH campus," said protester Gene Ray, a visiting art professor from Berlin.

Hawai'i administrators have been pushing for the contract that is estimated to bring in nearly $50 million in federal funding over five years to conduct classified military research.

"This is primarily an alternative funding vehicle," said Gary Ostrander, vice chancellor of research at the university. "It's a different way of bringing money to the institution and faculty members will have an option to participate or not."

The center will also put UH on a level playing field in research with the nation's top universities, he said.

"Our expertise is in the areas such as oceanography, astrophysics, optics, development of sensors," Ostrander said. "These are all areas the Navy is interested in."

He promised that the university will not develop weapons of mass destruction, as alleged by some opponents.

Protest co-organizer Ikaika Hussey said protesters were prepared to camp inside McClain's office until the university changes its position on the research facility, even if protesters are arrested.

The protesters crowded in the spacious office, eating, talking, lounging and chanting "Save UH. Stop UARC."

McClain was at his offices early in the day, but later left for meetings. He told protesters that he could not guarantee that he would stop the project from moving forward.

"But I can also not guarantee you that I will not decide not to stop the UARC, so you may be here a long time," he told them.

If the plan is approved by school administrators, it will go before the Board of Regents.

It will be "all transparent, all up front," Ostrander said.

The four Navy-backed research centers in the United States are located at Pennsylvania State University, University of Texas at Austin, University of Washington and Johns Hopkins University.

The University of Hawaii was recommended as the fifth center in July 2004.