MEMO TO MR. KEMPTON B. JENKINS FROM(Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00957A000100030043-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 16, 2016
• Document Release Date: June 28, 2005
• Sequence Number: 43
• Publication Date: October 2, 1974
• Content Type: MEMO

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TO:
CENTRAL INTELLIGENCE AGENCY
Office of Legislative Counsel
Washington, D. C. 20505
RR'-i Telephone?
Mr. Kempton B. Jenkins
Deputy Assistant Secretary for
Congressional Relations
Department of State
In line with our telephone conversation
today, attached is section 26 of S. 3394
and an excerpt from the conference
report solution to the overly broad
language when the essentially identical
language was used in the procurement
authorization bills in prior years.
After you review, would you let us know
whether the course of action we discussed
is feasible?
Deputy Legislative COUnBEII
FORM I533 OBSOLETE
6.68 P VIOUs
EDIT IONS.
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25X1
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93D CONGRESS
2D SEssION'
Calendar No. 1083
[Report No. 93-1134:1
IN THE SENATE OF T RE UNITED STATES
Arrcrr. 1974
Mr. SPARKKMAN (by request) introduced the following bill; which was read twice
and referred to the Comm'ilee on Foreign Relations
SErTEnnrn 3, 1974
Reported, under authority of the order of the Senate of August 22, 1974, by
Mr. SPARKMAN, with an amendment
A BILL
To amend the Foreign Assistance Act of 1961, and for other
purposes.
Y Be it enacted by the Senate and House of Representa-
2 tives of the United States of America, in Congress assembled,
3 M t4ts A4 may he cited as the -'' Foreign AffiiStafiee A-et
4 of :974'..
'IE I
7 . -2 The Flerei ss~tnnce Aet of 4961 is ceded
8 by ad4in $ the en4 thereof the following new iftrt-:
9
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a res of
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42
`(h) This .cclion''shall not be oor strued+,as' cbm' itmew
2! ' by.. the United' States 'to ('ambodi i, f or+ its defense,
~`'~; ` ~'(b)4 Sdctio6'.655.'and''656 of 'such Aot' are',repedled.;
LIJIIT&~IONS- 1VI'TII fESI'ECT',T6 LAOS, '+,- !
5 SEC." 26.,, Part V' o j the. Foreign 'As sistaiice`.Abt' o f 1961,
F
6. as am8nde(4, b t section"',24 and. .25 (ii) of 'this' Act, ' s~ .further
7.;, amended 'by iadding at they ends ther+eo f the f f ollowing now
8 section:
"SEC. 508. Lni Try TI Ox's W IT.l1+ RESI'EO T O' LAOS.`
10' (a) So tw'thstanding''a~`ry'other provision of +la n; i'o fonds
11'` 'authorized to 'be iappropri(ttsd ' by 'this 'or zany', other aaw' mhy
12? be obligated in any amount in excess 'o f '$100,0001000 rduri3ig
13". the' fiscal' year ending'Juae''.3O, 19' 5;?''f'o 'tlta purpose -of
14 ':,carrying out, direotly or' inthrectly any 'ecoiomic+oit miiitah?y
15 assistance,' or ar r tiov, ro N 9 9 t a i n t 6f -an y kind;
16 '''or fb'r providing any'yoods, -supplir~, -,#naterials;''et~uipmelil,
17 services, personnel;''or a(li iSers ,'to5". for, or,.on4ehialf of
18 L.aos,++ Of that ` amount, ' there "shall '' be ,availdh'le'
19 ' ```(1) $55,000,000 for niilitiir! assistance; and
20, "'(2) :$4500,000 only for'+ec~t~no7raic' tssistcrrn~e,'Of
21 -.Which, there shall 6e' avai_lable.
22' ' (A) $13y000,600 for +lzumanitarii n +~~c~sstist~
23
24 "(B) $9,900,000 for reconstruction' "WA
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25 velopment assistance;
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92n CONGRESS SE, NATR
1st Session
REPORT
No. 12-447
AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 1972 FOR
MILITARY PROCUREMENT, RESEARCH, AND DEVELOPMENT,
.AND FOR ANTI-BALLISTIC MISSILE CONSTRUCTION; AND PRE-
,SCRIBl'hFG RESERVE STRENGTH
NovEMnm 11, 1971.-Ordered to be printed
Mr. STENNIS, fronl the committee of conference,
submikted the following
CONFERENCE REPORT
[To accompany H.R. 86871
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the bill (H.R. 8687) to
authorize appropriations during the fiscal year 1972 for procurement of
aircraft, missiles, naval vessels, tracked combat vehicles- torpedoes,
and other weapons, and research, development, test, and evaluation
for the Armed Forces, and to prescribe the authorized personnel
strength of the Selected Res erve of each Reserve component of the
Armed Forces, and for other purposes, having met, after full and free
conference, have agreed to recommend and do recommend to their
respective Houses as follows:
That the House recede from its disagreement to the amendment of
the Senate to the text of the bill and agree to the same with an amend-
ment as follows:
In lieu of the matter proposed to be inserted by the'Senate:amend-
ment insert the following:
TITLE I ---PROCUREMENT
SEc. 101. Funds are hereby authorized !o be appropriated during the
fiscal year 1972 for the use of the Armed Forces of the United States for
procurement of aircraft, missiles, naval vessels, tracked combat vehicles,
torpedoes, and other weapons, as authorized by law, in amounts as follows:
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States entered into a bonafido agreement which designated Lockheed's
fixed loss on the C5-A program to be $200,000,000, and to restrict
the traditional right of recovering depreciation, bid and proposal and
independent research and development costs is to add upwards of an
additional $20,000,000 in fixed loss. They consider it unfair for
Congress to legislatively amend the contract on what they believe to
be an ex post facto basis. However, after considerable discussion the
House conferees recognized that the Senate was adamant in its posi-
tion and in the broader interest of enacting the entire bill into law, the
House conferees receded with the exception of Mr. Arends, Mr.
Gubser, and Mr. Wilson, and accept the Senate position on this
provision"af the bill.
CEILING ON EXPENDITURES IN LAOS
Section 505 of the Senatel bill imposes a ceiling of $350 million on
expenditures in, to, for, or on behalf of Laos, excluding combat air
operations in or over Laos b ' y U.S. military forces. The section further
requires quarterly written reports by the President of the United
States to the Congress showing the total of expenditures by the U.S.
government during the preceding quarter subject to the coiling, with a
breakdown of the purposes for which the expenditures were made. The
section also provides that after the date of enactment of this Act any
request for the appropriation of funds for use in, for, or on behalf of
Laos shall be accompanied by a written :report explaining the purpose
for which such funds are to be used. .
The Congress has been advised that the ceiling established by the
section, $350 million, is equivalent to the total expenditures pro-
grammed by the administration in Laos for fiscal year 1972, excluding
the normal and usual expenses of the embassy discussed below.
The House conferees are in sympathy with the purposes of the
limitation and the House, therefore, recedes.
include all assistance-relatod activities in Laos. However, 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, ;uch as the normal expenses incurred by
the State Department in the operation of its embassy and.such normal
and usual expenses of the embassy as would be incurred in peacetime
in the absence of any military, paramilitary, or economic assistance
programs of any kind
REPORTING OF SCHEDULES AND TESTING PRIOR TO PROCUREMENT
The' Senate bill contained a new general provision, Section 506,
which requires the Secretary of Defense to submit annual reports on
development schedules, procurement schedules, and operational testing
and evaluation (OT&E) for weapon systems for which funds for pro-
curement are requested. In addition, supplemental reports are re-
quired to be submitted 30 to 60 days prior to' awarding of a procure-
ment contract.
The House bill contained no similar provision.
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