FY 1961 OPERATIONAL PROGRAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62B00844R000200160043-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: November 16, 2016
• Document Release Date: May 2, 2000
• Sequence Number: 43
• Publication Date: July 8, 1960
• Content Type: MF

Approved For Release 2000/06/05 : CIA-RDP62600844R000200160043-9
RANDUM P0
CT
CHAL408240
B July 1960
Chief, Development Projects Division
: PT 194L Operatio 1 Program
This Program has new been brought into 11113 t satisfactory
form through the major and greatly appreciated labors of members of
your staff. Moreover, I have no legitimate complaint with it since
modifications that I directed have been roade in the CHALICE estimates
for FY 1962 and the CHALICE' budget proposed for FY 1961 had been
approved by me.
Z. ?4ev&tbet.as, I cannot in good conscience recommend that the
Director approve the CHALICE budget for FY 1961, despite my fleeter
concurrence in these numbers. After all, we are aesuming that our 25X1A
inventory of U-2 aircraft is cut from 13 in TY (960 to 7 in FY 1961. that
the number of pilots is reduced by about 1/3, that the total personnel are
reduced by about 116, and that operations conducted arc at a reduced rate.
Yet the numbers your Division has presented *how only a 20% reduction in the
cost of Materiel and an actual increase of in Overhead other than
at headquarters. I can predict with certainty that the DCI would not approve
these figure*, and I would think the less of him U he did. In any event,
will. certainly not approve them.
3. 1 betieve it should be possible to reduc
other than at headquarters by approximate
FY 62, and the Materiel item by some
level projected for TY fa). The former.
25X1A
he item for Overhead
both FY 61 and
61 (down to the 25X1A
ens represents.
for VA* most part, salaries; of government and contractor personnel. I
believe we must lied loops to reduce the number, and hence the cost, of
CHALICE' personnel outside of headquarters by at least 25%. I resit**
we cannot cut the Overhead item by the full 25% from the FY 60 level
because of the usable terminal costs to be paid on employees who are
separated. It is hard for me to believe, however, that the figures shown
le the 7 July Operational Program presuppose realistic savings obtain/Me
through prompt action with respect to personnel, colacellaneous work by
Lockheed, and other *motorist items (notably, Alm).
Copy Copies
Approved For Release 2000/06/046P621300844R000200160043-9
Approved For Release 2000/06/05 ? CIA-RDP62600844R000200160043-9
CftrrraElt
LLAJ.)
CiiAL4QU 40
Peg* Z
nd the increasesin ii ems for SktC 0
t and do not uestton these lianres.
5. I suppose one more confrontation is inevitablebe
Program is put to bed and endeavor to schedule
morning. 9 July. 1 would like responsible section heads ato'clock
to show cause for these extraordinary estimates. I will want to knee
briefly for the major items ef personnel and materiel costs: (a what
TAW of expenditure we will be down to by the middle of FY 19
0) whet extra personnel costs, if any, must be allowed for. Ile
expect to make this a brief session, and in the course of it to fix t
totals for the CHALICE Operational Program and to direct that your
next presentation be for the purpose of advising me what we can do
within these totals. U we cannot tut the costs of citAucr for rt 1961
25X1A I will recornrnelui that the project be terminated
at an indicated savings of some personnel. We have reached a owes 25X1A
in this Activity where we must simply find ways to achieve at least a 15%
reduction in cost when we ar* reducing our capability by 45% and when
no effort is being made to achieve any reduction in costs in headquarters
overhead.
RICHA D M. SISSELL.
Deputy Director
(Plane)
DISTRIBUTION
Cy' t and - ACIDPD
Cy* 3 and 4 - Asst. Ch/DPD DPD/Comptroller
Cy 5 DDIP
DDP/RMB/htb/7 July 1960
Approved For Release 2000/06/05 C1A-RDP62B00844R000200160043-9