LETTER TO MR. JAMES M. FREY FROM GEORGE L. CARY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP77M00144R000800170002-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 9, 2016
• Document Release Date: January 31, 2001
• Sequence Number: 2
• Publication Date: July 18, 1975
• Content Type: LETTER

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CENTRAL INTELLIGENCE AGENCY
WASHINGTON, D.C. 20505
18 JUN 1975
Mr. James M. Frey
Assistant Director for Legislative Reference
Office of Management and Budget.
Washington, D. C. 20503
Dear Mr. Frey:
Enclosed is a proposed report to Chairman Staggers, House
Committee on Interstate and Foreign Commerce, in response to a request
for our recommendations on H. R. 968, a bill To establish a National
Resource Information System, and for other purposes. "
Advice is requested as to whether there is any objection to the
submission of this report from the standpoint of the Administration's
program.
Sincerely,
George L. Gary
Legislative Counsel
Distribution:
Orig - Addressee, w/encl
JJ- I. R. 968 file, w/encl
1 - OMB Liaison file, w/encl
1 - OLC Chrono
OLC: WPB: cg (16 Jun 75)
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WASHINGTON,D.C. 20505
Honorable Harley O. Staggers, Chairman
Committee on Interstate and Foreign Commerce
House of Representatives
Washington, D. C. 20515
This is in reply to your request for our comments on H. R. 968,
a bill "To establish a National Resource Information System, and for other
purposes."
It is not entirely clear whether information on both domestic and foreign
resources is to be subject to the proposed information system. Resources
are inherently international in character and since U S. resource availability
or needs are affected by world supply and demand, and since the activities
of foreign affiliates of U. S. firms must be reported, foreign resources
appear to be included. Clarifying language on the scope of the bill would be
helpful.
If the bill is to be limited to information on domestic resources, we
would have no substantive comment to offer since domestic matters are not
within our scope of authority. On the other hand, if foreign information is to
be included in the proposed National Resource Information System, this Agency
would be affected and we have the following comments to make:
(a) In connection with information to be provided by
this Agency, certain factors must be considered. The use of
foreign intelligence information carries with it the burden of
protecting the sensitive Intelligence Sources and Methods
utilized in its collection and analysis. Unless satisfactorily
protected, these sources and methods--national resources in
their own right--may dry up or be nullified. These consider-
ations were recognized and validated in the National Security
Act of 1947 (50 U.S. C. 403), which provides in part:
"That the Director of Central Intelligence
shall be responsible for protecting intelligence
sources and methods from unauthorized disclosure."
(b) The undiscriminating entry of all Agency foreign
resource information into the proposed library system would
conflict with the statutory charge cited above even if classified
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material was placed in the "secret library," Some intelligence
in the area of foreign resources is based on sensitive means of
collection and analytical techniques. The disclosure of these
finished intelligence products would, in turn, betray the sources
and methods used in their production, To protect these intelli-
gence assets, such materials are segregated according to the
sources and methods involved in their production and are main-
tained within separate compartmented systems and controlled
channels. Accessing such material within a single information
system would defeat this scheme of compartmentalization which
has been recognized and accommodated by the Senate Select
Committee now studying intelligence activities.
(c) Of concern also are the provisions of sections 208(b)
and 208(e), which conflict with or fail to accommodate the
Director's responsibility to protect Intelligence Sources and
Methods. In addition, section 208(b) conflicts with the standards
for classification under Executive Order 11652 and appears to
substantially reduce protection afforded by classification
pursuant to the Order. Of equal concern are the proposed grant
of authority to the Comptroller General to review claims that
information is entitled to be kept secret in section 601, and the
proposed right of access to Agency files by the Director of the
Bureau of National Resources Information or his designee in
section. 211.
(d) Section 208(f) of H. R. 968 would require immediate
confirmation of any information which comes into the public
domain. This would force the confirmation of information which
is disclosed without authorization and could aggravate the damage
resulting from the initial disclosure. We would urge that this
section be struck from the bill.
It is noted that section 209 of the bill establishes criminal penalties for
the unauthorized disclosure or theft of national resource information by a
Government employee in the interest of deterring such conduct. I have proposed
similar legislation concerning Intelligence Sources and Methods, which I believe
are deserving of the same protection.
Enclosed is a suggested amendment to the bill, which would satisfactorily
resolve the statutory conflict referred to above, while preserving the intent
and objectives of the legislation.
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Su Bested Amendment to II. R. 968
Add as new section 704 to Title VII:
"INTELLIGENCE SOURCES AND METHODS"
"SEC. 704. In the interests of the security of the foreign
intelligence activities of the United States and in order further to
implement the proviso of section 102(d) (3) of the National Security
Act of 1947, as amended [ 50 U. S. C. 403 (d) (3) that the Director
of Central Intelligence shall be resonsible for protecting intelli-
gence sources and methods from unauthorized disclosure, nothing
in this Act shall require the Central Intelligence Agency to provide
information when in the sole discretion of the Director of Central
Intelligence such provision would disclose information relating to
intelligence sources and methods which, in the judgment of the
Director of Central Intelligence, should not be disclosed."
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The Office of Management and Budget has advised there is no objection
to the submission of this report from the standpoint of the Administration's
program.
Sincerely,
W. E. Colby
Director
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