(SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00337R000500190049-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 21, 2016
• Document Release Date: September 18, 2006
• Sequence Number: 49
• Content Type: MFR

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xM.ORANDUM FOR Tta RECORD
25X1
SUBJECT:
1. The Director vast this afternoon with Senator Russell and
Representative Mahon for approadmately 45 minutes on the above
subject. Assistant Secretary of Defense, Charles Hitch, was present.
Mr. William Darden of Russell's office was present; i`+'tr. Robert
Michaels of Mr. Mahon' a office was present; and John S. Warner
accompanied the Director.
2. The Director gave a brief background of the paramilitary
activities which gave rise to the expenditures which he wished to
discuss. He stated the CIA budget for 1964 had been formulated with
the understanding that Defense would fund the cost of these various
p*ramilitary programs. The Director explained that in the past
Defense had funded a portion of these activities from MAP funds
but it had been determined that for legal reasons Defense would be
unable to continue this funding. When the Agency was advised of
this situation in January 19 c budget level had alread
been approved at a level of
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the President has approved the recoran3ended increase with the under-
standing that this would not necessitate an increase in the 1964
appropriations recoau ended to the Congress for the Department of
Defense.
Included in that letter is a sentence static
4. The Director next referred to and read from the letter
from the bureau of the Budget of 27 April 1963 to Clarence an 25X1
which identified the Agency'a budget request and
identified the two accounts in which these funds were included. The
next letter referred to by the Director and reviewed by Senator Russell
and Mr. ahon was the 8 August 1963 letter from Bureau of the Budget
to Senator Hayden. Mr. McCone indicated that it had been reported to
Mai that the Stanate Com mmitteeina rovin th DOD bill had placed a 25X11
restriction so that this additio wras not available for CIA
expenditure. Senator Russell stated that this was not the case. 25X1
5. Mr. Hitch indicated that there would be no increase in the
President's recd mended program for DOD as a result of the 8 August
letter since by this time the authorization bills passed by the Congress
had reduced the recommended levels by far more than th
After some discussion Russell stated that he "thought the other 25X1
was up to the Executive branch" to allocate if the programs were
sufficiently valuable to be carried on. Russell also stated that he thought
it was "up to DOW `' to determine which accounts should be adjusted to
;-ra.alre these funds available if the programs were to be carried on.
Insofar as additional accounts being made available by the Congress at
this time, Russell stated "we have gone as far as we can. " Russell also
added that he had assumed nossibl wvro l sea that ill.- Lk- 25X1
Y n
whether there were any legal restrictions in terms of reapportionment
and making funds available from other accounts to make up the
item. 4r. Mitch statest that he know of none, that in effect thi was a
question of national priorities and once these were determined appropriate
shifts in funds could properly be made. Mr. Russell and Mr. Mahon
agreed there were no restrictions in this regard.
S Y use a r
on this matter was such as to require DOD to absorb the
6. Mr. Mahon pointed out that the CIA Subcommittee of House
Appropriations has not finally approved a total budget figure for CIA and
that fiiaal action depends on $r. Cannon and his Subcommittee and
str. Russell and his Subcorx mittee. There was also discussion of
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7. ' .r. Mahon stated that he was not in a position at this zfeeting
to state what the Agency total should be but that he individual) would 25X1
support the program . It was pointed out that sore bawd in
fact already been expended in 1963 and considerable sums so far in
1164. Mr. McCone referred then to Mr. Cannon's Letter to the Bureau
of the Budget of 2() June 1963 to the effect that the Agency could continue
with its regular program under the terms of the Joint Resolution and in
addition the Agency was authorized to proceed with the program discussed
In the hearings which contemplates withdrawals from Reserves up to
thus indicating that up to now and in part the House Committee
has expressed its will on the availability of funds to CIA for these programs.
+on stated that when final decisions are made as to the total CIA budget.
opportunity will exist for the Congress to express its will as to the total,
not in any conference report of course, but to the usual letter from
Cannon to the Agency.
8. Mr. Russell indicated that he would like more information
fro reprogramming which would be required by DOD absorbing
the Cdr. Hitch stated he would be glad, of course, to confer
with the Senator on this. Is connection with Congress furnishing guidance
on its will, Mr. Mahon stated that the usual letter from Cannon to the
Agency setting forth what was available for Agency expenditure would
furnish such guidelines. (The Senate in the past has furnished a similar
letter.) Mr. Mahon indicated that the conference an the DOD appropriation
bill is planned for ten o'clock this coming Friday, the 4th of October.
JOHN S. WARNER
Legislative Counsel
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SENDER WILL CHECK CLASSII TION TOP AND BOTTOM
UNCLASSIFIED CONFIDENTIAL SECRET
. CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
1
2
3
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks :
Attached is my Memorandum for the
Record of yesterday's meeting. The
Director had wanted to send a copy of
this to Gilpatric. In view of the importance
of this he may well wish to review mine
before it is sent to DOD, particularly since
the Director also took a few notes.
John S. Warner
FOLD HERE TO RETURN TO SENDER
FROM: NAME, ADDRESS AND PHONE NO.
DATE
Legislative Counsel 7 D 07
3 Oct 63
UNCLASSIFIED CONFIDENTIAL
SECRET
FORM 10. 237 Use previous editions
(40)
U.S. GOVERNMENT PRINTING OFFICE : 1961 0-587282
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UNCLASSIFIED CONFIDENTIAL SECRET
FORM NO. 237 Use previous editions (40)
2-61 A U.S. GOVERNMENT PRINTING OFFICE : 1961 0-587282
Approved For Release 2006/09/19: CIA-RDP72-00337R000500190049-1
SENDER WILL CHECK CLASSIF TION TOP AND BOTTOM
UNCLASSIFIED CONFIDENTIAL SECRET
- CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
I
Acting Comptroller
2
6 IC 64
3
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks :
Attached is my memorandum for the
record of yesterday's meeting. I would
suggest you take no action utilizing this since
the original is before the Director for his
review and possible changes since he intends
to make a copy of it available to Gilpatric.
I will send you any corrected copy or otherwise
let you know.
John S. Warner
FOLD HERE TO RETURN TO SENDER
FROM: NAME, ADDRESS AND PHONE NO.
DATE
OGC/LC 7 DOT
3Oct63