This paper describes a scheme for implementing a digital optical matrix processor including an all-optical control unit, using free-space interconnected optoelectronic integrated circuits (OEICs). Many digital optical processors have been proposed in the last decade or so, but if they involve any complexity, the control of the processor is either not discussed, or is relegated to an electronic host computer. An all optical processor has advantages in cost, complexity, and robustness over an optical processor that requires an electronic host computer. We have already developed the basic principles of operation, and several novel matrix manipulation algorithms, including one that accomplishes boolean matrix multiplication of two NxN matrices in N processor cycles, and arithmetic addition of N pairs of N-digit words in N cycles. We estimate the system throughput at over 1011 operations per second.