CONVERSATION WITH ROBERT HULL RE STATE DEPARTMENT'S COMMENTS ON CIARDS LEGISLATIVE PROPOSAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP73B00296R000100010025-3
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: December 20, 2001
• Sequence Number: 25
• Publication Date: July 31, 1970
• Content Type: MFR

Approved For Release 2002/01/10 : CIA-RDP73600296R000100010025-3
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ORANDUM FOR THE RECORD
1 't
31 July 1970
SUBJECT: Conversation with Robert Hull re State Departments
Comments on CIARDS Legislative Proposal
Today Robert Hull, Department of State, celled to explairt the
position the Department will be taking with respect to the transfer of
government contributions proposal in the draft CIARDS legislation sent
by the Office of Management and Budget to the Department of state for
corrtment.
2. Hull said the proposal creates a false bnpression that the
transfer of government contributions would fully fund the nortaal costs
of past service. Further, the fact that government contributions are
not presently transferred is a convenient explanation for the higher
normal costs associated with the CIA and Foreign Service retirement
systems when compared to the Civil Service iysterru Also, the income
from the transfer would be insignificant when compared to need. Finally
the resulting accounting costs were high in relation to net gain.
3. I disagreed on all points and in the stunting discussion he came
to better appreciate the reasons why this proposal had an important
impact on the CIA system. He agreed that accounting was not a signifi-
cant problem since employee contributions are already being transferred.
In response to my question he said they had not even considered whether
the proposal would result in a significant depletion of the Foreign Service
Fund. I told him it would not at present and he replied that if there was
any unique problem between our two Funds, it possibly could be resolved
through reimbursements.
4. I asked how the Department would specifically present their
adverse and essentially subjective position in view of Hull'r recognition
that the proposal is sound in principle, has been cleared twice previously
for transmittal to the Congress, and favorably acted upon by one House.
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Hull fell back on the ''false impression' argument and the fact that
since supplemental funding would be needed eventually the proposal
would merely be a cumbersome delaying device. I told Hull that if
the Department's position had not jelled yet, I would like to be given
the opportunity to put our substantive people in touch either with him
or the proper State official involved since the provision was important
to us and the Department should be completely aware of all its merits
before taking an adverse position. Hal said the position was firm.
5. I reported the substance of the above to
Director of Finance. It was agreed that little would be served at
this late date to take further iniative with State on this matter,
particularly in view of the subjective rationale being used by State
and the overriding importance of the positions which will be taken
by the Civil Service Commission and the Office of Management and
d et which in the past have been favorable.
Assistant Legislative Counsel
Distribution.
Orig Subj
1 - OF
1 - Chrn
OLC/LLM:erng (4 Aug 70)
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