DIARY NOTES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP76-00183R000300100148-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: September 11, 2000
• Sequence Number: 148
• Publication Date: June 13, 1961
• Content Type: NOTES

25X1A
Approved Forelease 2003: CIA-RDP76Q,0183R000300100148-9
DIARY NOTES
DD/S 13 June 1961
25X1A9a 1. reported that in conferences with the General Accounting Office
it was agreed tat GAO would withdraw from their position that we collect the pay-
ments which were made to the Department of State for the NIS Program which GAO
alleges were incorrectly made. However, GAO declined to withdraw from their po-
sition that the payments were, in fact, incorrectly made.
25X1A9a
2. I reviewed with Ed Saunders and their Budget Projections
through 1966 and authorized them to transmit a copy to the Bureau of the Budget on
an informal basis. I also asked them to draft a memorandum to the Director explain-
ing to him the purpose of the Projection, etc. , and to attach a copy of the Projection
paper. (At the Deputies' Meeting on 14 June the Director raised this. I assured him
that it had been passed to the Bureau of the Budget on an informal basis and that we
were not bound, but he seemed to think that our estimates were quite high, which is
probably correct. However, he offered no objection to the action which had been
taken.)
25X1A9a
3. was up to present his paper on the Automatic Data Processing
Staff. I asked him to leave it with me since I did not have time to read it then.
However, I noted among other things that he requests some 5 to 6,000 square feet ./'
in the new building. I told him that I did not know where this was coming from and that
this certainly presented a problem of major proportion.
25X1A9a
25X1A5a1 4. I also talked to and Jim Garrison about the Videograph contract
with the and asked Jim to draft a memorandum which would refer
this contract to the ADP Committee for a formal recommendation.
25X1A9a 6. - and I met with Messrs. Samuelson and Pahl of the General Ac-
counting Office to discuss future GAO activities in the Agency. I explained to Mr.
Samuelson that we had no reason to change the ground rules under which we have been
working and that we have received no indication from the Kilday Subcommittee that they
wanted the ground rules changed. I told him, however, that we wanted to live up to the
spirit of these rules and if at any time he had reason to think otherwise I would appre-
ciate his letting me know. Our meeting was friendly and cordial and they are going to
start an audit of ORR next week.
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25X1C10e
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Approved For Release 2001/03/30 : CIA-RDP76-Q .183R000300100148-9
7. In connection with GAO activities in the Agency, I found later that both ORR
and OSI have recently put some contracts on unvouchered funds which have been on
vouchered funds for several years and that this action was taken for the sole purpose
of keeping them away from GAO. I, therefore, met with-and representatives 125X1 A
of ORR to discuss a typical case. It was clear in this instance that this change was not
justified. It is true that the contract is highly classified but we are under no restriction
to keep classified information away from the General Accounting Office. The criteritv/
is one of clandestinity and noi classification per se. Everyone agreed, including the
ORR representatives, that this contract should be changed to a vouchered funds con-
tract. I also directed - to look at all of the OSI contracts with the same general 25X1 A9a
philosophy to make sure that we could not be charged with hiding under the confidential
funds cloak for the sole purpose of avoiding GAO audit.
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25X1 A9a
8. advised me that he had briefed on the
25X1A = 25X1A
communications problem and that Dick had suggested that he prepare
a memorandum to the Director on this subject.
25X1A2d1
9. I talked with Larry Houston about setting up a trust fund in the amount of
$750,000 to take care At this
point (20 June) the Director has approved of this procedure, and this amount has been
included in a request for a release from the Contingency Reserve to defray the over-all
cost of- through Fiscal Year 1961. The request has been presented to the Bureau
of the Budget and we are awaiting their action.
10. General Cabell telephoned to say that he was not in favor of giving up one of
our KY-1 phones so that Mr. Kirkpatrick could have direct and secure communications
with Pat Coyne. He, therefore, intended to disapprove of this action.
11. In connection with the "Meritorious Exiles" problem I obtained the Director's
approval to use $426,000 from his Fiscal Year 1961 Special Projects Fund money to pay
for the termination and resettlement costs, etc. The 10 Division has $100,000 to add to
this, making a total of $526,000 from which the Free Europe Committee needs can be
legally obligated during Fiscal Year 1961.
DD/S:LKW;mam
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SECRET