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

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00957A000100030007-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 20, 2016
• Document Release Date: November 27, 2006
• Sequence Number: 7
• Publication Date: November 14, 1974
• Content Type: LETTER

If7.iv~ r o c 82I5-NEOB
centssl Intelligence Ageii cy
Washington, D. C. 20505
TO:
Office of Manage=-aent & Budge
Washington, D. C. 20503
39D3
DATE
14 November 1974
X I ENVELOPE (S)
I PACKAGE (S)
OTHER
Orig. & 1
sent to Oliver
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4/4, . i'
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a~ O)RI/ Pages 3-k
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 L] `UNCLASSIFIED prove
orII Q Af' 2006/11127 :CIA-REj -e8 7$JJJ,JJ030007-0] SECRET
USE ONLY L
- ROUTING ANI;
RECORD SHEET
Legislative Counsel
TO: (Officer designation, room number, and
building)
OFFICER'S
INITIALS
FORWARDS
..,.
S TAT....,.....
FXTENSION
NO.
DATE
14 November 1974
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment.)
OMB has pressed us for a
response this afternoon rather
than tomorrow as originally
scheduled in order to get our view
in the Administration position on
the Hughes and R an amendments
I to the Foreig ssistant bill.
We have g? e.n Frey a xerox copy
- of the a ached with the under-
stan g that it is subject to your
oval. If you have no objection
a K
go ahead and send him
ewill
the original.
George L. Cary
Legislative Counsel
FORM USE PREVIOUS ~/~p r~ ~~1 E. -? INTERNAL
3-62 610 EDITIONS, p eSE{,,,RFJeleas OCP# /t~[i'--:'LiAlk?PR10cl 7AWD1000Qe O CLASSIFIED
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CENTRAL IN T EL'"IGENCE AGENCY
WASHINGTON, D.G. 20505
I ~{ Uwv . 1
Mr. James L. Frey
Deputy Associate Director, International Affairs
Office of Management and Budget
Washington, D. C.. 20503
Dear Mr. Frey:
This is in response to the November 12th request of
Mr. Arnold Donahue of your office for the views of this Agency on
a proposed new section in the Foreign Assistance Act of 1961 which
limits intelligence activities, specifically proposed new section 660
in H. R. 17234 and section 661 in S. 3394. Both of these sections have
the identical basic purpose of lim-.sling expenditures by or on behalf
of the Central Intelligence Agency :or clandestine operations other
than those for intelligence collection.
With respect to preferences in language between the two
versions:
(a) The language "operations in foreign countries"
in section 660, as opposed to "covert action operations"
as used in section 661 is preferable in the interest of not
admitting to covert action its. United States Statute and
eliminating definitional uncertainty. If there is an
opportunity for the insertion of totally new language, it is
recommended that the wording be changed to "pursuant to
section 102(d)(5) of the National Security Act of 1947
(50 U.S.C. 403). "
(b) With respect to the Presidential finding to remove
the bar to expenditures, it would be :preferable to use the
language of section 660, "important to the national security
of the United States, !' rather than the more restrictive
language "vital to the defense of the United States" of
section 661. A strict interpretation of the latter phrase
may require a finding involving the territorial integrity of
the nation,
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(c) Regarding the contents of the report to be submitted
to the Congress by the President, the language of section 661
is preferable, as the details to be reported are modified by
the word "appropriate" which would provide flexibility for
omitting extremely sensitive details.
(d) With respect to the committee recipient of the
President's findings and report, the language of section 661
limiting such reporting to committees 'fre s ently having jurisdiction
to monitor and review" intelligence activities is preferred.
(e) With respect to subsection "(b)" the preference is for
the language of section 660 because it does not contain the
words "covert action" as does section 661.
It can be argued that the proposed new section merely implements
agreements made between the Executive branch and congressional leaders.
In fact, the proposed new section goes far beyond these agreements as we
understand them. Therefore, we would not want the above-stated preference
in language to be construed as an Agency position that the Administration
should support such a new section. To the contrary, it is believed that
strong arguments against such a position exist and they include;
(a) The foreign assistance legislation is an inappropriate
vehicle for such a provision of law.
(b) No committee hearings have been held on the
proposition and it is doubted that its implications have
been adequately studied.
(c) A provision which in effect requires reporting of
the type of programs covered by the proposed new section
is included in legislation introduced by Senator Stennis and
Representative Nedzi, which has received Administration
support and on which the Director has testified before the
Nedzi Intelligence Subcommittee. Both of these bills are
before committees having legislative jurisdiction over
the subject matter.
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(d) There are movements in both the Senate and the
House which make such a new section somewhat redundant,
this includes Chairman Stennis' invitation to the Majority and
Minority Leader, both members of the Foreign Relations
Committee, to participate in sessions of the Senate Armed
Services Intelligence Subcommittee; and an amendment to the
Rules of the House which grants the House Foreign Affairs
Committee certain jurisdiction with respect to intelligence
activities affecting foreign policy.
(e) The proposal could impinge upon Presidential power
not shared with the Congress. Whether the President fulfills
such Constitutional responsibility privately or covertly, using
the CIA as a mechanism, should make no difference and
certainly does not eliminate the necessity for speed, dispatch,
and secrecy to enhance the prospects of success.
In addition to the proposed new section d rig with limitation on
intelligence activities, this Agency also has a~Lmplaink with sections of
S. 3394 imposing ceilings on U. S. Government obligations in Indochina.
These sections bar the obligation of any funds in excess of the stated
ceilings, "for the purpose of carrying out di:?ectly or indirectly any
economic or military assistance, or any operation, project.. or pro ram
of any kind. " This language is so broad that it could be construed to
encompass normal U. S.. Government activities, such as embassy staffing
and intelligence collection.
Similar language was used in the Fiscal 1972 Defense Appropriations
Act to limit U. S. expenditures in Laos, but to eliminate the overbreadth
problem the House-Senate conferees included language in the conference report
to make it clear that:
" ... the conferees wish to make it understood that
it is not the intent to place a ceiling on, or reduce, funds
available for vital non-assistance-related activities in
programs which must be carried on irrespective of
assistance-related operations in Laos, such as the
normal expenses incurred by the State Department
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in the operation of its embassy and such normal and
usual expenses of the embassy as would be incurred
in peacetime in