DIARY NOTES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP76-00183R000300050013-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: May 16, 2001
• Sequence Number: 13
• Publication Date: June 24, 1959
• Content Type: NOTES

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DIARY NOTES
DD/S 24 June 1959
1. At the Deputies' Meeting:
a. The Director indicated that he would be in New York on the 6th of
July at a meeting in .Albany with Nelson Rockefeller.
b. There was a brief discussion of the use of counterpart funds and
the Director objected very strongly to the Treasury Regulation which would
require us to pay for counterpart funds at the rate which they were originally
acquired. In most instances this would be considerably more than the current
market value. Apparently the Director has learned this in connection with
25X1A2d1 Project the details of which I am not familiar with.
c. Dick Bissell raised the question of Project WALNUT and proposed
that we request a release from the Contingency Reserve to finance this
project. I informed the Director that, in my opinion, this project did not
meet with the criteria for use of the Contingency Reserve and felt very sure
that the Bureau of the Budget would turn it down. Therefore, I advised very
strongly against making such a request. The Director then lashed out at the
Bureau and indicated that he thought the Contingency Reserve should be used
for the general good of the Agency and did not like the Bureau's ground rules.
I told him that it was my understanding that the Bureau and the Congress did
not approve of using the Contingency Reserve for items which we could foresee
and budget for in the normal way. In view of the fact that this situation comes
up from time to time I suggested to the Director that we invite Mr. Macy over
for lunch some day soon and that all three Deputy Directors attend the luncheon
so that we could have a common understanding of what the conditions were
under which we could draw funds from the Contingency Reserve and he approved.
2. The Director requested that we prepare a memorandum to the President concern-
ing the interest of the General Accounting Office and Congressrnan Kilday in broadening the
GAO audit function. (The first draft has been prepared by Larry Houston and is now in the
Director's hands . )
3. I advised the Director of the interest of the Bureau of the Budget in seeing the
study which we undertook to make last fall to determine whether or not the scope of the
NIS Program could not be reduced somewhat. I emphasized the necessity of making some
decision on this soon but am not at all sure that it will be done.
4. I advised the Director of the re uest of the Bureau of the Budget for an up-to-
date report on all residential property The Director saw25X1A6a
no objection to furnishing this information.
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10. At the Deputies' Meeting we also discussed the asmuch zsx~a
as the Director had had a telephone call from Roger Lewis The
Director asked for a memorandum which he could use for discussion at the Operations
Coordinating Board. (This was prepared by Gates Lloyd and supplied. )
11. I obtained the Director's signature on a letter to Senator Hayden requesting that
the $2.8 million for the NIS Program which was deleted from the Department of State's
budget be restored to our budget. (This has been delivered to Francis hIewitt, Clerk of the
Senate Appropriations Committee.)
25X1A9a
12. advised me that the Director wished to keep General-on
as a consultant and that his clearances should be kept current:. I passed this on to Gordon
Stewart and Emmett Echols.
13. Gil Greenway, Deputy for Civil and Military Air Transportation, Department
of the Air Force, was over to talk with Larry Houston, Gates and me about Congressman
Carter who has caused a lot of trouble in connection with CA7?s-contract. After
consulting with him we saw the Director who approved of our recommendation that
Congressman Carter could not be briefed as to CIA's interest in CAT and that the Air Force
should go ahead and award the contract in question which will stand on its own merit. It is
possible that Congressman Carter may cause further trouble and if he has gained a knowledge
of our interest in CAT in some unauthorized manner he may drag us into it. However, this
is a risk that we will have to take.
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5. I have agreed with Matt Baird that would report to the Office of
the DD/S on 13 July for a tour of duty approximating one year.
6. Larry Houston advised me that the Kilday Committee wished to have a meeting
with the Director on 30 June for an intelligence briefing and to discuss the GAO audit
problem .
r~
25X1A9a 7, discussed with me the possibility of disseminating information to
employees on the status of the new building, roads, etc. I told him that I would call a
meeting soon of the Building Planning Staff to discuss this matter and at that time would
place the responsibility for the actual dissemination in the hands of the Office of Personnel.
8. came to see me about a flap having to do with placing an addi-
25X1A6a tional auditor in Due to his hospitalization this matter had not been well handled.
25X1A9a He wrote the Division, however, about three weeks ago and dust today learned from Jim
-that the Division could not concur because of instructions issued by Dick Bissell
25X1A6a to the effect that no more people were to be added to the_ Station complement. The
individual's household goods have been shipped and he is sailing on the 4th of July. I tele-
25X1A9a phoned and he instructed Jim to change his positron. However, Dick did say
that he thought the situation was developing again wherein individual DD/S Offices were
trying to up their components in the Area Divisions without my knowledge and I assured
him that I would look into this matter. (I propose to write a memorandum to all DD/S
components instructing them that when they are going to add to the strength of an overseas
25X1A9a station it must be coordinated with
before putting on any pressure . )
who will obtain my personal approval
9. I had lunch with .Alan Mills, Jr. , Mills and Petticord Architects, who also had
off 50~ of their carpenters Friday and that he did not feel that the foundation contractor
would be out of the way sufficiently to permit Public Buildings Service to give him a notice
to proceed until about 1 August. In fact, he said that if he received a notice to proceed
next week he would immediately file a request for an extension. He was also pessimistic
about the possibility of completing this building in two years and felt that the delay caused
by failure of the foundation contractor to move fast enough was going to prohibit him from
getting a lot of the work that he had hoped to get done prior to Winter. I invited them to
come over to lunch sometime with the Director and they are most anxious to do so. I
gathered from-conversation that he was very much aware of our early difficulties
with PBS. As a parting remark he assured me of his friendliness and his eagerness to co-
operate in every way but said "whatever you do, don't ask me to undercut GSA. " I assured
him that I would riot.
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