NOTE TO CHIEF, FE LEGISLATIVE COUNSEL FROM (Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00310R000200120016-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 15, 2016
• Document Release Date: August 30, 2004
• Sequence Number: 16
• Publication Date: July 7, 1970
• Content Type: MF

LIAISON - GOVERNMENTAL
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DD/S 70-2785
le JUL 1070
MEMORANDUM FOR: Chief, FE
Legislative Counsel
Bill - Jack:
The DD/S's initial reaction is that the Agency
should not initiate contact with the Committee/Committee staff but
should be prepared to respond in the event that the Committee does
decide to press any issue which could involve us.
We are prepared to discuss this subject further
if either of you has a different view on what the Agency should do.
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Att
Cy of ADD/S MFR dtd 7 July 70, subj: GAO Survey
of Refugee Programs in Vietnam and Laos, w/its Att.
cc: General. Counsel, w/Att
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 Approved For Releas '004/08/31 :(C F ;R. ? 72-0031OR0002 220016-6
DD/S 70-2752
7 JUL 1970
SUBJECT: GAO Survey of Refugee Programs in Vietnam and Laos
1. On 30 June 1970 Mr. Samuel Kleinbart, GAO, telephoned to say
that the report on the Laos Refugee Survey had been put into final draft
form and GAO, per earlier agreement, wished to have us review it. It
was arranged that I and I would go to the GAO office in the
State Department Annex on 1 July,
2. On 1 July I nd I met with Mr. Kleinbart, Mr.
Jenney, and Mr. Gilbert F. Stromvall, who was introduced as Mr. Louis
Hunter's replacement. Mr. Kleinbart produced copies of the draft report
which we read and some specific points of which we discussed. The over-
all report classification was Secret. Individual classification was assigned
to report paragraphs with many bearing the unclassified stamp. The report
was in two principal sections -- one,dealing with public health and the second
with all other refugee support. CIA was not mentioned by name and no specific
inference pointing to CIA appeared. Reimbursement was mentioned in several
places and paramilitary personnel and their dependents appeared throughout
the report.
3. The report reflects some frustration that much data which is
necessary to the type of accountant's approach which the GAO team would
prefer to have used is not available to them -- they seem to accept that
much is not available at all in Washington. There is unspoken frustration
at not having been able to make the field trip which had originally been
contemplated. The report states accountant's-type facts and figures and
does not reflect the facts of the war in Laos and the shifting character of
the war as factors affecting the personnel numbers and dollars associated
with them.
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4. It would seem likely that the Committee would pick up inferences
in the report of incompleted items and ask additional questions about them.
For 'example, the report in one place specifies an increase of paramilitary
dependents 19 times as large as the increase in paramilitary troops. In
another place it indicates a very sharp increase in paramilitary personnel
for a two-month period (March - May 1970). In yet another place the fact
of extensive AID-financed medical support to paramilitary personnel and
dependents is stressed. Unspecified but inferred and likely to be stated
by GAO team members is a question as to the adequacy of reimbursements
for non-legitimate AID refugee costs.
5. We made a few specific suggestions which seemed to be accepted.
We proposed addition of "this is what was happening on the ground" during
None-
the period in question to a number of issues suggested by the report.
theless, on balance, if the Committee is looking for some issues to make
for additional publicity, the report can certainly furnish several. For
example, prior to FY-67, we did not reimburse for cost of rice although
we did pay for its transportation. Further, it is correct that we have made
no reimbursement for medical treatment for paramilitary personnel and
their dependents -- all of these costs have been paid, for by AID funds.
6. We should consider, therefore, if we have appropriate contacts
and relationships, whether we should go to the Committee staff and members
to discuss this whole subject in straightforward terms from our side or to
leave the initiative to the Committee and its staff. There is some reason
to be concerned that the GAO team could raise real problems for us without
deliberately setting out to do so.
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8. Mr. Stromvall seemed impressed with the point that a field visit
would do much to explain the manner in which the whole "system" works.
He inquired concerning physical security in Laos, including Vientiane, and
we reassured him at least as far as Vientiane is concerned. If the field trip
is ultimately made, we should reconsider our existing instructions to the
field to refer to Headquarters any questions raised with them by GAO.
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 Assistant Deputy Director
for Support
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9 he re ort as we read it was somewhat more potentially "loaded"
than had been given to understand in. the conversation with AID
reported in his attached memorandum of 30 June 197 0 0
Memo dtd 30 June 70 for ADD/S, vial fr
I subj: Status of GAO Report on. Senator
Kenn y s Committee on Lao Refugees
ADD/S:JWC/ms (6 July 70)
Distribution:
Orig - DD/S Subject, w/O of Att (DD/S 70-2697)
1 - Chief, FE, w/cy of Att
I - General Counsel, w/cy of Att
1 - Legislative Counsel, w/cy of Att
1 -r DD/S Chrono, w/o Att.
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 Approved For Relea2004/4IIPRDP72-00310R000120016-6
30 June 1970
for Support
VIA Chief,
Assistant Deputy Director
SUBJECT Status of GAO Report on Senator Kennedy's
Committee on Lao Refugees
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1. On 26 June I called Mr. Robert Thompson, AID Laos
Desk, to check on the status of the GAO report to Senator
Kennedy's Committee studying the Lao refugee situation.
He informed me that he and Mr. McCarthy of the AID Laos
Desk reviewed Mr. Joel Slotsky's report on the Lao refugees
on 25 June and that Miss Mary Huntington, AID Laos Desk,
had reviewed Mr. Roy Jenny's report on public health services
in Laos on 25 June. He made the following observances regard-
ing the reports: the report appears to be a summary presentation
of what has been found in the Washington files regarding refugees
in Laos; the report went into some detail but was more general
than detailed in nature; the major criticism noted in the
report was that not enough information was available in the
Washington area for the GAO auditors to do a proper audit; the
information available in the Washington area was incomplete
and conflicting.*
2. Mr. Slotsky stated an addition would be made to the
report with details of the delays the GAO auditors experienced
in talking to certain people and getting certain information.
Mr. Thompson noted that a statement to this effect would
indicate the GAO was receiving full cooperation in its efforts
to compile the report for Senator Kennedy's committee. Mr.
Slotsky noted the various items which were commented on or
criticized by Mr. Thompson and Mr. McCarthy. Mr. Slotsky
"incomplete" and "conflicting" in his report.
*Mr. Thompson requested that Mr. Slotsky define his terms
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told Mr. Thompson if no significant changes were made AID
would not see the report again.
3. Mr. Thompson asked Mr. Slotsky when the report
would be given to CIA for review. He was advised by Mr.
Slotsky the report would be sent to CIA for its review and
perhaps he'or Mr. Jennings would handcarry the report to
CIA representatives for their review and comments. AID
was not allowed to keep a copy of the report.
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