VI. RECOMMENDATIONS

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CIA-RDP77M00144R001200050009-8
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RIPPUB
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K
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44
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December 16, 2016
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May 13, 2005
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9
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Publication Date: 
July 31, 1975
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Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009s8 RECOMMENDATION (28) Establishment of a National.Security.Review Committee (NSRC) to conduct a broad review, under the direction of the National Security Council principals, of the U.S. worldwide national security posture at the beginning of every new Administration. The review should involve the newly appointed senior officials and draw upon the views-of the relevant departments. It should be directed by the President and his National Security Assistant. I see considerable merit in the concept of a National Security Review Committee. with membership as desired by the President, and would be prepared to provide such intelligence inputs as would be of use to a NSRC in its worldwide review of the U.S. national security: posture. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02: CIA-RDP77M001 Recommendation (1) Section 403 of the National. Security Act of 1947 should be amended in the form.set forth in Appendix VI to this. Report. (Reproduced in full on following page.),F These amendments, in summary, would: a. Make explicit that the CIA's activities must be related to foreign intelligence. b. Clarify the responsibility of the CIA to protect intelligence sources and methods from unauthorized disclosure. (The Agency would be responsible for protecting against unauthorized disclosures within the CIA, and it would be responsible for providing guidance and technical assistance-to other agency and department heads in protecting against unauthorized disclosures within their own agencies and departments.) c. Confirm publicly the CIA's existing authority to collect foreign intelligence from willing sources within: the United States,, and, except -rs specified by the President in a published Executive Order prohibit the CIA from collection efforts within the United States directed at securing foreign intelligence from unknowing American citizens. 1The Executive Order authorized. by this statute. should recognize that when the collection-of foreign 'Intelligence from persons who are not United States citizens 'resul-ts in the incidental acquisition of information from unknowing citizens, the Agency should be permitted to make appropriate use or disposition of such information. Such collection activities must be directed at foreign intelligence sources, and the involvement of American ci t i zer?s must be incidental. Approved For Release 2005/06/02 : CIA-RDP77MOO144ROO1200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Note- Appendix VI of the Commission Report provides: In Recommendation (1), the Commission proposes that 50 U.S.C. Section 403(d) be amended to read (Additions are italicized; deletions are marked through).: (d) For the purpose of coordinating the foreej n intelligence activities of the several government departments and agencies in the interest of national security, it shall he the duty of the (Central Intelligence) Agency, under the direction of the National Security Council- to advise the National Security Council in matters (1) concerning such foreign intelligence activities of the government departments and agencies as relate to national security;` (2) to make. recommendations to the National Security Council for the"coordination of such foreign intelligence activities of the departments and agencies of the government as relate to the national security; (3) to collect, correlate and evaluate foreign intelligence relating to the national security, and provide for the appropriate dissemination-of such foreign intelligence within the government using where appropriat6 existing agencies and facilities: Provided, that except as specified by the President in a published Executive order, in collecting foreign intelligence from United States citizens in ?he 'United States or its possessions, the Agency must disclose-.to such citizens that such intelligence is being ca ected_ by to "- Agency. Provided further, that the Agency shall have no police, subpoena, law enforcement powers, or internal security functions: . Provided further, than the department- and other agencies of the government shall continue to collect, evaluate, correlate and disseminate departmental intelligence: F. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009 8 And p'~ c t t tI e F 5-ret~tar e r} t - ah&14 be'~ fer p y e i-n i- t r: 114, g e -, ems' s-a-? ' fro .d`3- JUp I wy (4) to perform, for the benefit of the existing intelligence agencies, such additional foreign 1ne1Uq pce services of common concern as the National Security Council determines can be more efficiently accomplished centrally; (5) to perform such other functions and duties related to foreign intelligence affecting the national security as the National Security Council may from time to time direct. (6) gto be responsible for protecting sources and methods of foreign intelligence from unauthorized disclosure. Within the United States, this responsibility shall be limited a to lawful means used to protectaga n.st disclosure b i resent or former employees, agents or ? sources of the Agency or i i persons, or employees of persons or organizations, presently or formerly under contract with the Agency or affiliated with it, and (b) to providing guidance and technical assistance to other government departments and agencies performin intejennce activities. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Response I fully concur in the recommendation of the Cominission that the National Security Act be amended to clarify the duties of the Agency by inserting the word "foreign" before the word "intelligence" at appropriate places in the Act.. In fact, this suggestion first arose at my confirmation hearing in 1973. I concur with the added provisions clarifying they Agency's role in the collection of foreign intelligence from US citizens, I have reservations about the proposal of the Commission to amend the Act to shift from the Director of Central' Intelligence, to the Central Intelligence Agency, responsibility for protecting intelligence sources and methods from unauthorized disclosure. The DCI, as head of the Intelligence Community, is well placed to protect the Community's interest in sources and methods of foreign intelligence, but CIA is less well suited to cover these matters' as they affect other 'agencies. The proposed amendment could be read to diminish the DCI's coordinating function in the Intelligence Community. I believe the purpose of the Commission in recommending the change can be carried out by retaining some of the limitations in the proposed subparagraph. (6) but assigning the responsibility to the Director of Central Intelligence. In addition, changing the. wording from "protecting intelligence sources and methods from unauthorized disclosure" to - "protecting sources and-methods of foreign intelligence from unauthorized disclosure" eliminates terminology which is well recognized and for which there is judicial interpretation and precedent in several cases. I am also concerned that subparagraph (6).may not afford sufficient. authority to protect intelligence _sources and methods information under the Freedom of Information Act.. That Act exempts from its mandatory exposure 'provisions matters "specifically exempt from disclosure by statute." Appropriate language should be included in subparagraph (6) to make clear that that subparagraph is an exemption statute for Freedom of Information purposes. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8- Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Recommendation (2) The President should by Executive Order prohibit the CIA from the collection of information about the domestic activities of United States citizens (whether by overt or covert means), the: evaluation, correlation, and dissemination of analyses or reports about such activities, and the storage of such information., with exceptions for the following categories of persons or activities:. a. Persons presently or formerly affiliated, or being - considered for affiliation, with the CIA, directly or .indirectly, or others who require clearance by the CIA to receive classified information; b. Persons or activities that pose a clear threat to CIA facilities or personnel, provided that proper coordination with the FBI is accomplished; c. Persons suspected of espionage.or other illegal activities relating to foreign intelligence, provided that proper coordination with the FBI is accomplished.. d. Information which is received incidental to appropriate CIA activities may be transmitted to an agency with appropriate jurisdiction, including law enforcement agencies. Collection of information from normal library sources such as newspapers, books, magazines and other such documents is not to be affected by this order. Information currently being maiftained which is inconsistent with the order should be destroyed at the conclusion of the current congressional investigations"br as soon thereafter as permitted by law. The CIA should periodically screen its files and eliminate` all material inconsistent with the order. The order should be issued after consultation with the National Security Council, the Attorney..General, and the Director of Central Intelligence. Any modification of the order would be permitted only through published amendments. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-.8 Response I concur in this recommendation. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R0012000500097$ Recommendation (3) The President should recommend to Congress the establishment of a Joint Committee on Intelligence to assume the oversight role currently played by the Armed Services Committees. Response As you know, I concur in this recommehhdati.on. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R0012000500097A Recommendation (4) Congress should give careful consideration to the question whether the budget of the CIA should not, at least to some extent, be made public, particularly i n ,view of the provisions of Article I, Section 9, Clause 7 of the Constitutional Response In the past I have taken the position that this question should be resolved by the Congress but that I could not in good conscience recommend publication of all or part of the intelligence budget. I believe I must now recommend that the Agency budget and certain classified intelligence programs of the Department of Defense remain fully classified and nonidentifiable. I do this despite the recommendation of the Commission and its reference to Article 1, Section 9, Clause 7, of the Constitution.- With respect to the constitutionality of the present procedure, a recent attempt to litigate this question did not reach the substance; the litigant having been defeated on the issue of standing to sue. Richardson v. United States, 418 U.S. 166 (1974). There is, however, cons iderabIe Historical precedent for budget secrecy, going back to deviates in the Constitutional Convention, the use of a secret fund during the administrations of Washington and Madison, and a secret appropriations act in 1811. Congress most recently endorsed the secrecy of intelligence budgets in June 1974 when the Senate' rejected an amendment to the Department of Defense Appropriations Act of 1975 which would have required that the total budget figure for intelligence purposes be made public. In addition, I believe that present procedures are'fully' in accord with the Coi7sti-tution. Agency appropriations are an integral part of appropriations made by law and are reflected in the Treasury's Statement and Account of Receipts and Expenditures in compliance with the cited provisions of the Constitution. 1 "Ho Money shall be drawn from the Treasury, but in Consequence - of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shal.l..be publis,ied from time to time." Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009;8 , On the merits of the question, aside from the constitutionality,-my belief that this budget should. remain secret is based on the following: a. Public disclosure of Intelligence Community budget data, or the budgets of the individual agencies which make up the Intelligence Community, could provide potential enemies with considerable insight into the nature and extent of our activities. b. Publication of part of the budget, as suggested by the Commission, would raise, in my view, extensive congressional debate as to what matters were included and what matters were not included in the published totals., leading to a rapid erosion of the secrecy of the portions withheld.- c. The same question would' immediately arise with respect to the 'publication of the total CIA budget, a total. Community budget; or any other figure covering "intelligence." An immediate requirement would be levied to explain precisely which of our intelligence activities were covered in the published. total and which were not.. As you know,.this is a difficult matter to determine within classified circles due to the difficulty of determining at what point intelligence expenditures stop and operational expenditures begin (the radar on a destroyer; tactical air reconnaissance on the battlefield; the reporting as differentiated from the representational and other functions of attaches, foreign service officers; etc.). d. Publication of any single figure with respect to intelligence would, in my view, quickly initiate curiosity and investigation by the press and others as to exactly how the figure was arrived at and what its component elements were. This is suggested by the history of disclosure fff AEC budget materials and related information by both the Executive Branch and the Congress. e. Publication of any figure with respect to intelligence will result in questions and discussions of any changes or trends developed in succeeding year figures. Any change in the basis on which the figure was computed or any change in its level will generate a demand for explanation and tend to reveal the details of the figure and programs supported by it. Thus, I must recommend that the CIA budget and certain other highly sensitive inte'iligence programs remain classified and noni denti f iabl e Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 9 Approved For Release 2005/06/02 CIA-RDP77M00144R001200050009-8_ o 'h Recom~endation (8) a. The Office of Deputy Director of Central Intelligence should be reconstituted to provide for two such deputies, in addition to the four. heads o.f the Agency';s directorates. One deputy would act as the administrative officer, freeing the Director from day-to-day management duties. The other deputy should be a military officer, serving the functions of fostering relations with military and providing the Agency with?.technical expertise on military intelligence requirements. b. The advice and consent of the Senate should be required for the appointment of each Deputy Director of Central Intelligence. . Response - I endorse this recommendation though.I envision its implementation in somewhat different fashion. With the establishment of a Deputy Director charged specifically with CIA management and representation responsibilities, the other (military) Deputy could most effectively perform the functions cited in the Commission Report if he were primarily concerned with management of those Intelligence Community responsibilities given to me under the President's letter of November 1971.. Thus, I would propose that the existing position of Deputy to the DCI for-the Intelligence Community be the basis for defining the responsibilities of the military Deputy Director. Should expected congressional consideration of the DCI's role within the Intelligence Community produce significant changes in.this role, this recommendation will obviously be .affected.. While it might be undesirable to specify this in .legislation, .I believe. that. the Deputy Director principally concerned with management of CIA should be both a civilian and a career Agency employee.. This last comment in no way reflects upon the high quality of the military Deputy Directors who have served this Agency in the past; it merely reflects the experience that such an outsider is normally less able to conduct the detailed management; of the Agency contemplated by the Cornmission's recommendation than is a career Agency employee. This is especially true in the case in which a career Agency employee has been the Director, as in such Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8' Approved For Release 2005/06/02 : CIA-RDP77M00144RO0120005000g 8 situations there has been a natural tendency for management decisions to be made by the Director rather than del gated to the Deputy. CIA has, however, been exceedingly well served by the high quality of a number of Deputy Directors of military background who have made a unique c.ontrbution in intelligence matters for which they were particularly fitted as we'll as being excellent helpers and independent advisors to the Director, himself. 15 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R0012000500E9,8 Recommendation (9) a. The Inspector General should be upgraded to a status equivalent to that of the deputy directors in charge of the four directorates within the CIA. b. The Office of Inspector General should be staffed by outstanding, experienced officers from both inside: and outside the CIA, with ability to understand the various branches of the Agency. c. The Inspector General's duties with respect to domestic CIA activities should include periodic reviews-of all offices, within the United States. He should examine each office for compliance with CIA authority and regulations as-wel.l as for the effectiveness of their programs in implementing policy objectives. d. The Inspector General should investigate all reports from employees concerning possible violations of the CIA -statute. e. The Inspector General should be given complete access to all information in the CIA relevant to his reviews. f. An effective Inspector General's office will require a - larger staff, more frequent reviews, and highly qualified personnel. g. Inspector General reports should be provided to the National Security Council and the recommended executive oversight body. The Inspector General should have the authority, when he deems it appropriate, after notifying the Director of Central Intelligence, to consult with the executive oversight body on any CIA activity (see Recommendation 5). -' Response I concur in this recommendation. a. The status of the Inspector General can be raised as recommended, although I believe the other recommendations made by the Commission with respect to the functions of the Inspector General are more fuidamental. 5 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144RO01200050009-8 b. The Office of the Inspector General will be staffed by officers of the types' described, both from inside the Agency and from outside the Agency. c. The Inspector General will develop a program of periodic review of all offices within the United States as proposed. d. The Inspector General will investigate all reports from employees concerning possible violations of the CIA statute and other applicable laws. e. The Inspector General will be given complete access, by specific regulation to all inform ation'in CIA relevant to his reviews> f.- The Inspector General is now studying the recommended expansion of his office and program, and wil'l'. develop a specific proposal for consideration.. g. Inspector General reports will be made available to the DISC and the recommended executive oversight body, as recommended. 17 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009_$ Recommendation (13) a. The president should instruct the Director of Central Intelligence that the CIA is not to engage again in domestic mail openings except with express statutory aiithori ty in time of war. (See also Recommendation 23.) b. The President should instruct the Director of Central. Intelligence that mail cover examinations are*to be in compliance with postal regulations, they are to be undertaken only in furtherance of the CIA's legitimate activities and then only on a limited and selected basis clearly involving matters of national security. Response I concur in the` intent of this recommendation, although in form it is directed to the President rather than the Agency. It is fully -consistent with the instructions issued by me on 29 August 1973 and will be reflected in internal Agency regulations as well as instructions. 11 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Recommendation (21) The Commission endorses legislation, drafted vri.th appropriate safeguards of the constitutional rights of all. affected individuals, which would make it a criminal offense for employees or former employees of the CIA willfully to divulge to any unauthorized person classified information pertaining to foreign intelligence or the collection thereof obtained during the course of their employment. Response On 23 April 1975 I submitted to the Office of Management and Budget proposed legislation in line with this recommendation.. I had submitted similar legislation in January 1974, which was not introduced, and I have vigorously pursued the objectives of this proposal with the Congress, the Department of Justice, and other interested departments and agencies since that time. It has been evident to this Agency for.many years that existing criminal 'Law is inadequate and provides virtually no enforceable sanctions against disclosure of intelligence sources and methods to unauthorized persons. This is because to prosecute under existing law requires disclosure in open court of further sensitive information as well as confirmation of the information. disclosed by the person. being prosecuted.. In very recent years, - with the Government's inability to prosecute in well known cases of disclosure by former employees, the need for improved criminal legislation has become evident to many outside of the Intelligence Community. The -l egi s l ati on which I have proposed meets, I believe, all of the standards of this recommendation including particularly safeguards for the consititutional rights of all affected individuals. It would permit prosecution only of persons authorized to possess the information disclosed or who possessed it by virtue of an association with the Government. It specifically precludes prosecution of newsmen or other recipients of information disclosed in violation of the lawn. . Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009=8 Approved For Release 2005/06/02 : CIA-RDP77M00144R0012000500Q S Recommendation (22) The CIA should not undertake physical surveillance (defined as systematic observation) of Agency employees, contractors or related personnel within the United States without first obtaining written approval of the Director of Central Intelligence. Response I concur in this recommendation, but note that the requirement for the Director's prior written approval would apply to some activities by the Agency which the Commission did not find objectionable. These include surveillance of Agency employees in operational situations for their protection or to detect counters urvei 1 lance, surveillance of individuals who may be carrying substantial sums of money, or surveillance during the routine investigations mentioned in the response to Recommendation 18. Thus, I believe that the. intent of' this recommendation can best be met by adoption of detailed internal procedures, whi ch define those situations in which DCI: approval for surveillance is required and those in which authority can be delegated to the Director of Security or other subordinate levels. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 ? Approved For Release 2005/06/02 : CIA-RDP77MO0144RO01200050009e8 . Recommendation (23) In the United States and its possessions, the CIA should not intercept wire or oral communi ca ti onsl or otherwise engage in activities that would require a warrant if conducted by a law enforcement agency. Responsibility for such activities belongs with the FBI. Response This recommendation suggests the prohibition within the US and its possessions of two kinds of activity which raise different considerations.' The first is the interception of wire or oral communications, and the second is "activities that would require a warrant if conducted by a law enforcement agency." The latter is understood,to mean, unauthorized entries onto premises and all conduct other than the interception of wire or oral communications which would amount to a search or seizure. I concur in the recommendation that CIA not engage in "activities that would require a warrant if conducted by a law enforcement agency." Since the Agency has no law enforcement functions, its use within the US of unauthorized entry or other methods which amount to a search or seizure is beyond its legal authority. Cases where.the Agency's legitimate interests may call for such activities are infrequent and should he handled by the FBI upon- CIA's request (see Recommendation 19). In regard to the recommendation that CIA be prohibited from intercepting wire or oral communications within the US, I concur- that responsibility for such activities belongs with the FBI. I recommend, however, that CIA be authorized to support such FBI activity in cases involving foreign intelligence approved by. the Attorney General. .lAs defined in the Omnibus Crime Control and Safe Streets Act, 18 U.S.C. Secs. 2510-20. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R0012000500094- In regard to.possible intercept of communications in the course of equipment testing or the training of operators, see response to Recommendation 28. 35 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144RO01200050009-8 Recommendation (24) The CIA should strictly adhere to established legal procedures governing access to federal income tax information. Response I concur in this recommendation. Agency regulations on liaison with the Internal Revenue Service will be revised to clarify the limits and procedures in dealing with the Service and for obtaining income tax information. Approved For Release 2005/06/02: CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Recommandation (27) I n accordance with its present guidelines, the CIA should not again engage in the testing of drugs on unsuspecting persons. Response I concur in this recornmendati on, which reflects directives issued by me on 29 August 1973. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8t Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Recommendation (28) Testing of equipment for monitoring conversations should not involve unsuspecting persons living within the United States. Response While I endorse the intent of the Commission in raking this recommendation, I believe it is so simple in form as to pose serious difficulties as a guide for actual testing. practice.. Many types of radio receivers for the collection of foreign intelligence are developed and tested by the CIA, and our personnel are trained in their operation. By their very nature, these receivers are sensitive enough to monitor inadvertently some US conversations in test situations and virtually nothing can be done to prevent this. Adequate acceptance and suitability testing of these systems requires that they be tested in realistic circumstances, and, inevitably some conversations will be monitored, though no identification is made of the participants. The building of' large scale simulated communications systems for test purposes would be expansive and impractical. In my view, the guidelines for testing of equipment in the US established by us in August 1973 meet the purposes of"Ehe Commission's recommendation and serve as a more realistic quide to such activities. These provide that testing of intelligence equipment may be undertaken in the United States provided that no use of the information collected shall in any way abrogate the rights of US citizens as guaranteed under the Constitution n of the- United States. If it is essential to test equipment on an American communications system or other establishment, this may be done provided that no recordings of the material.are retained or examined by any element other than the original test. engineers. In this context the original test engineers constitute the engineers under contract to perform the tests and the Agency technical officers supervising the activity., Knowledge derived from the tests that relates to equipment performance but maintains anonymity of the data source may be exchanged with other elements of the Agency. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009.-$_ Recommendation (29) A civilian agency committee should be reestablished to oversee the civilian uses of aerial intelligence photography in, order to avoid any concerns over the improper domestic use of a CIA-developed system. Response I concur in this recommendation and urge that. it be accomplished speedily. I should note here that--contrary to the statement in the Commission's Report--a proposed agreement for continuing support in this' area of the Environmental Protection Agency was not concluded because of that Agency's law enforcement responsibilities. 41 a? Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02: CIA-RDP77M00144R001200050009-8 IV. AMENDMENTS TO THE NATIONAL SECURITY ACT OF 1947 Summa y of Issues The Central Intelligence Agency and the National Security Council were created by the National Security Act of 1947, the larger purpose of which was to consolidate the armed serves into what became the Department of Defense. The Act contains many ambiguities and uncer?- tainties concerning the powers and duties of the CIA and NSC. For this reason, proposals are. being considered to mend the Act to make these powers and duties more explicit., S p cificIssues Relatirgto Amendment of the National Security Act of 194K 1. Section 402 (a): Membership of the NSC The function of the NSC is to "advise the President with respect to the integration of domestic, foreign, and military policies relating to the national security..." (emphasis added) But as William Watts noted in his testimony before the House Select Committee on October 30th, (T)he National Security Council as presently constituted has no statutory representative, other than the president, who can speak to domestic considerations and concerns. In a world where foreign policy in many areas is also domestic policy (oil and grain are obvious examples), this is, in my view, a serious but correctable weakness. It places an unfair burden on the president, since only he can take fully into account the domestic consequences of foreign policy actions. Mr. Watts suggests, therefore, that this section be amended to add the Secretary of the Treasury as a statutory member of the NSC. In support of this proposal, it may be argued that the NSC, as presently constituted, cannot promote the integration of domestic and foreign policies because none of its members has an institutional interest in promoting domestic considerations. Although no official can adequately represent the entire gamut of domestic interests, the macro-economic responsibilities of the Secretary of the Treasury give him a broader perspective on domestic policy concerns than any of his Cabinet colleagues. Approved For Release 2005(06/02: CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Further, adding the Secretary of the Treasury to the NSC would be a recognition of the increasing importance of international economic policy, and the shifting emphasis in security policy from military strength to questions of resource allocation and market control. The intelligence community has been criticized for not putting sufficient emphasis on economic issues. This weakness might be corrected by giving the Secretary of the Treasury a statutory'voice in directing intelligence collection and evaluation efforts. In opposition to this proposal, it may be argued that presidents have frequently asked domestic officials to participate in NSC meetings whenever appropriate. Every president has re-shaped the NSC to fit his own style of decision-making, and this flexibility should not be reduced by unnecessary changes in the formal membership of the NSC. The NSC is essentially an advisory body to the president; the more the Congress specifies its membership and activities, the greater the likelihood that presidents will find it uncongenial and ignore it. 2. Section 402(b): Functions of the NSC (."" In Sections 402(a) and 402(b), the Congress provided that the NSC is to advise, to assess and appraise, to consider policies, and to make recommendations to the President. There is no explicit statement that the NSC is to have any operational authority. Section 402(b) does provide, however, that the NSC shall perform "such other functions as the President may direct..." and Section 403(d) provides that the CIA shall perform its services, functions and duties "under the direction of the National Security Council..." It is presently being considered whether the NSC should be an advisory or operational body. If it is concluded that the NSC should only be an advisory body to the President, it may be recommended that this section be amended by (1) eliminating the reference to "such other functions..., or (2) specifying that these other functions shall not include authorizing or directing operations or activities not undertaken primarily or solely for the purpose of gathering foreign intelligence. If it is concluded that the NSC should remain involved in covert action operations but that the final responsibility must rest on the President, it may be recommended that this section be amended to provide that the NSC shall direct no operational activity without the explicit, personal and written approval of the President. Such a provision might duplicate the requirement for presidential approval imposed by the Foreign Assistance Act Amendments of 1974, but it would specify that the NSC is to have no operational authority independent of the President. Approved For Release 2005/06/02: CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 3 . Sections 403(a) and 403(b): --The Director-and De uty Director "~- of Central Intel 1 i dence Section 403(a) provides that either the Director or D ty Director, but not both, may be nominated from among "com is oned officers of the armed forces, whether in an active or r ed status." Section 403(b) contains various provisions concerning t e status. of a cor,~;;issioned officer occupying either position. Traditionally, either the DCI or his Deputy has been a com issioned officer. It may be concluded that this is undesirable because y military official, whatever his intentions, must inevitabl e influenced by his years of experience in the armed forces. It ma recommended, therefore, that the separation of the CIA from the military be enforced by repealing Section 403(b) and amending Section 403(a) to require that both the DCI and his Deputy be civilians. 4. Section 403(.-): DCI authority to fire CIA employees "i- Section 403(c) provides that, notwithstanding any other Dr-Ivi sion of law, The Director of Central Intelligence may, his terminate the employment of any offi or discretion , employee of the Agency whenever he shall deem s h termina- tion necessary or advisable in the interests of the United States.... It may be concluded that this authority is too broad and that CIA employees should enjoy the rights of other government employees to the fullest extent possible. If so, it may be recommended that this section be am ed to provide that (1) the DCI's discretionary authori, is ited to cases in which employees are fired for security rea onl, (2) in such cases, the employee shall have the right to appeal the President for reconsideration and reinstatement; and (3) befo,e acting on such an appeal, the President shall have the advice and recommendation of the Attorney General. 5. Section 403(d)-__ The intelligence funct' ns of the CIA Section 403(d) provides that th- C shall undertake various functions related to intelligence. 'ro als have been made to specify that the CIA shall only undertake programs related to foreign intelli- gence. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 The DCI, Mr. Colby, supported such an amendment in testimony before the House Armed Services Committee on 22 July 1974. I fully support 'this c &rr'g"e. While I believe the word "intelligence" alone i n e original Act was generally understood to refer orgy foreign intelligence, I concur e Agency's role to foreign that this limitation Q,~ intelligence should b' made crystal clear to its own employees and to the-public. I hope that this amendment will reassure any of our fellow citizens as to the Agency's true and only purpose. 6. Section 403(d)` NSC direction of the CIA Section 403(d) provides that the CIA shall perform specified functions "under the direction of the National Security Council." On the basis of its hearings and investigation, it may be decided that the relationships among the President, the NSC, and the CIA should be clarified by amending this section to provide that the CIA's activities shall be undertaken at the direction of the Presi- ''' dent, upon the recommendation of or after consultation with the National Security Council. for the appropriate dissemination of such intelligence within the Government..." evaluate intelligence relating to the national security and provide 7. Section 403(d)(3):_ Intelli ence_collection by the CIA Section 403(d)(3) provides that the CIA shall "correlate an There is no explicit provision in this section or elsewhere in law which authorizes the CIA to collect intelligence. Whatever the original intention or expectation, however, the CIA has been involved in intelligence gathering since its creation. This fact may be acknowledged by amending this section to provide that t: he CIA shall "collect" as well as "correlate and evaluate" intelligence. 11 8. Section 403(d)(3): Domestic activities of the CIA Section 403(d)(3) provides that the CIA "shall have no police, subpena, law-enforcement powers, or internal-security functions." Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02: CIA-RDP77M00144R001200050009-8 On the basis of the Rockefeller Commission report and the Congressional investigations, it may be concluded that this section requires clarification. It may be recommended, therefore, that the section be amended to provide that the CIA shall engage in no activi- ties within the United States except: 1. to conduct personnel investigations and protect the security of its facilities; 2, to provide foreign intelligence information to other federal departments and agencies only upon the written, public request of the Attorney General or the Secretary of the Treasury, and 3. to solicit information voluntarily from United States citizens and residents. Mr. Colby has indicated support for such an amendment. It may also be recommended that: 1. the above limitations are not meant to imped the lawful activities of the CIA at its headquarters and other offices within the United States, any domestic activities undertaken pursuant 2 . to (1)-(3) above shall be subject to the laws of the United States, and 3. the CIA shall submit an annual report to the Congress describing and providing the statutory basis for all domestic activities undertaken pursuant to (1)-(3) above. 9. Section 403(d)(3): Protection_of intelligence sources and methods ------ _ Section 403(d)(3) provides that the DCI "shall be responsible for protecting intelligence sources and methods from unauthorized disclosure." The CIA has argued that this provision imposes an important responsibility upon the DCI without giving him the necessary auth3rity. In his 1974 testimony before the House Armed Services Committee Mr. Colby stated: Approved For Release 2005/06/02: CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02: CIA-RDP77M00144R001200050009-8 Under existing law, the Director is responsible for developing such internal administrative controls as are possible and appropriate to protect against unauthorized disclosures, but if such a disclosure is identified, his only recourse beyond internal disciplinary action, including termination of an employee, would be to report the matter to appropriate authorities for examination df possible legal action.... ...I am of the personal opinion that additional legislation is required on this subject to improve our ability to protect intelligence sources and methods against unauthorized disclosure.-.the specifics of my recommendations on this subject are still under active consideration within the Executive Branch, so that an appropriate Executive Branch recommendation can be made to the Congress. For these reasons,.it may be recommended that some new authority must be provided to enable the DCI to meet his responsibility under this section. On the other hand, it may be recommended that no additional authority be provided to the DCI, or even that this provision be repealed. It is unclear what kinds of information are encompassed by "intelligence,sources and methods" and whether the DCI's authority is limited to information in the custody of CIA or to information held throughout the intelligence commmunity. Instead of attempting to clarify the provision, it may be recommended that it be eliminated as a possibly contentious issue which is unnecessary for the protection of intelligence information. 10. Section 403(d 4): _"Additional services of common concern" Section 403(d)(4) provides that the CIA shall perform for the benefit of the exjfstingintelligence agencies, such additional services Of common concern as the National Security Council determines can be More efficiently accomplished centrall . It may be determined that :tf e provisions of Section 403(d)(4) are unnecessary and that this secti n be repealed. Approved For Release 2005/06/02: CIA-RDP77M00144R001200050009-8 Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009;8 11. Section 403(d)(5): "Such other functions and duties" Section 403(d)(5) provides th t the CIA shall perform such other functions ann;d duties related to intelligence affecting the natio;ial security as the National Security Council may from time to time di rect. ' It is this provision which the CIA has cited as its statutory authority for conducting covert actiion operations. If the HSC and SSC believe; that the CIA should not engage in any covert action programs, they rpay recommend that this section be amended to provide that no activi?ies undertaken pursuant to this section shall be for the purpose of influencing, determining, or otherwise affecting the policies officials, programs, organizations, or actions of any foreign gover rnent or entity. If the HSC and SSC con dude that covert actions should not be prohibited by law but that they should be considered and approved more systematically than at p esent, they may recommend that this section be amended to provide that any such functions and duties are to be undertaken only upon tl? specific, written direction of the President, upon the recommendation of or after consultation with the National Security Council. The HSC and SSC may also recommend that any activities under- taken by the CIA under the uthority of this section shall be reported to the Congress under the same reporting requirements established by the Foreign Assistance ~ct Amendments of 1974. Such a provision might be redundant, but itlcould be felt to minimize the possibility of major CIA activities escaping Congressional notice. Mr. Colby has expressed his general upport for such a reporting requirement. Approved For Release 2005/06/02 : CIA-RDP77M00144R001200050009-8