DRAFT REGULATION ON OFFICIAL RECEPTION AND REPRESENTATION EXPENSES

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CIA-RDP80-00473A000300060037-7
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RIPPUB
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K
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33
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December 12, 2016
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November 19, 2001
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37
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Publication Date: 
February 9, 1977
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MF
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11 .,_:...:5ive Approved For Release 2002/01/08 : CIA-RDP80-00473A00030006 O 7--T---m:- 9 February 1977 MEMORANDUM FOR: See Distribution SUBJECT: Draft Regulation on Official Reception and Representation Expenses DD/A Registry 1. Attached at Tab A is a draft of a proposed regulation to govern the expenditure of appropriated funds for official entertain- ment. The line item.in the Agency's budget which identified the need for and secured the approval of these expenditures states: Resources required for the Office of the Director support those activities under his direct control and provide not more than $16 thousand for official reception and representation expenses, including the expenses of cooperating US Government officials and private US citizens at meetings concerned with the official functions of the Central Intelligence Agency. 2. The Agency's current policy on this subject is contained in a memorandum from the DCI dated 17 May 1976 (Tab B). The proposed regulation would make the following changes: a. Prohibition of the expenditure of appropriated funds for functions or activities attended solely by Agency personnel. b. Provision of authority for the expenditure of appropriated funds in the field on behalf of named categories of US citizens. c. Provision of authority for the payment of expenses of Agency personnel who attend authorized functions or activities. d. Establishment of criteria by which the authorization of expenditures is to be judged by senior Agency officials. 3. The attached draft has been discussed informally with the DDA and has been approved in principle by the A/DCI. Your coimlent and/or concurrence is requested by 16 February. STATINTL Approved For-Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 SUBJECT: Draft Regulation on Official Reception and Representation Expenses DDA DDO DDT DT[)S&T D/DCI/NI Comptroller General Counsel Legislative Counsel Inspector General .Asst/DCI (Mr. Falkiewicz) Executive Secretary D/EEO AO/DCI Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 STATINTL Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 A Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 25X1A STATINTL OFFICIAL RECEPTION AND REPRESENTATION EXPENSES A. Purr ose This regulation prescribes criteria and procedures for the payment of Official Reception and Representation Expenses incurred by the Office of the Director of Central Intelligence and components under his control, including expenses of cooperating U.S. Government officials and private U.S. citizens at meetings concerned with the official functions of the Central Intelligence Agency. It does not cover operational enter- tainment in the United States or overseas which is authorized by B. Definitions 1. Official Reception and Representation Expenses -- Direct costs incurred to extend courtesies and amenities to designated officials and persons who can aid or facilitate accomplishment of the DCI's duties and responsibilities. 2. Courtesies and Amenities -- Activities which manifest respect and consideration and are conducive to comfort, convenience and the establishment of personal relat;i_onsh:ps; they include, but are not limited to, receptions, breakfasts, luncheons and dinners. 3. Senior Agency Officials --- The DCI, DDCI, Deputy to the Director for National Intelligence, Deputy and Associate Deputy Directors Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 for Operations, Administration, Intelligence and Science and Technology, heads of independent. offices, the A/DCI (Media), and those Chiefs of Station designated by the Director of Central Intelligence. 4. Designated Officials and Persons -- a. Foreign Officials or foreign private citizens determined by a senior Agency official to be entitled to the extension of courtesies and amenities. b. U.S. Government.Officials -- Civilian officials at an executive pay level or in CS Grade 17 or above or equivalent grade or position, military officers of equivalent rank or position, Members of Congress and Staff Directors of Congressional coamiittees or subcommittees. c. State and Local Government Officials and U.S. Private Citizens, including members of the news media, determined by a senior Agency official to be entitled to the extension of courtesies and amenities. 5. Host -- The Agency official present who extends the courtesies and amenities to a designated official or person. 6. Sponsor -- The Agency official who requests and/or arranges the extension of courtesies and amenities. C. POLICY It is the policy of the Director of Central Intelligence that the expenditure of funds appropriated for official reception and representation expenses is authorized on behalf of a designated official or person to Approved For Release 2002/0-1/08: CIA-RDP80-00473A000300060037-7 .Approved For Release 2002/01/08 CIA-RDP80-00473A000300060037-7 provide an atmosphere through the extension of courtesies and amenities that will further or facilitate accomplishment of the Director's duties and responsibilities. The payment of expenses for functions and activities on behalf' of a designated official and those in his or her party, as well as Agency personnel invited to attend, is appropriate and will be approved. by the Executive Secretary under the following criteria: 1. The Activity or function must be authorized by a senior Agency official. 2. At least one guest must be a designated official or person. 3. The.primary :purpose of the Function or activity must be to establish or promote a relationship which will further or facilitate accomplishment of-the'Director's duties and responsibilities'. a. In this regard, payment is not authorized for any `-expenses incurred in the conduct of routine business or meetings except as expressly authorized in this paragraph. Whether the conduct of business or meetings is routine depends on its frequency, the reason for its occurance, and the nature of the.business or subject matter discussed. For example, regularly scheduled interagency meetings are routine for purposes of this regulation while infrequent meetings with Members of Congress or the Cabinet at CIA Headquarters are not. Approved For Release 2002/01/8 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 b. If requested by a senior Agency official, the payment of expenses is authorized for light refreshments, such as non-alcoholic drinks and donuts, at interagency meetings attended by a designated official or person, or at retirement or awards ceremonies or special conferences attended by primarily non-Agency personnel. 4. Payment is authorized for official representation and reception expenses incurred in the field, subject to to conditions outlined in this regulation, for functions or activities on behalf of a designated official or person in categories B4(b) and. (c) only,, Operational entertainment in the field will continue to be handled under other authority (see Paragraph A). 5. The payment of expenses is not authorized for functions or .`-activities attended solely by Agency employees or individuals whose 41 services are funded in whole or in part by the CIA or one of its proprietaries, or for whose service CIA reimburses another Government agency or private organization. 6. The authorization required by Cl and the determinations made under B4(a) and (c), as required by C2, may not be delegated. Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 D.. PROCEDURES. 1. Annually, as a part of the budget planning effort, each Deputy Director and independent office head will provide the Administrative Officer.of the DCI an estimate of the amount of money needed by his organization in the budget year for the purposes set forth herein. Any significant increases in the cost -incurred in the current year will be fully explained. The consolidated Agency estimates will be incorporated in the budget estimate of the O/DCI. 2. Upon receipt of the allotment from the Comptroller at the beginning of each fiscal year, the AO/DCI will advise each Deputy Director of his proportionate share of these funds for planning purposes and will maintain records to account for the drawdown of funds by Directorate or independent office during the year. AO/DCI is authorized to reallocate these fiends among Directorates and independent offices if actual expenditure rates deviate sufficiently to justify such action. 3. Expenditures will be authorized and recorded in the following a. All expenditures will be charged to a DCI FAN account established for this purpose, b. When a senior Agency official concludes that the expenditure of Government funds is appropriate in accordance with the criteria established in Section C, Policy, above, 5 Approved For Release 2002/01/08 CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 and the estimated cost exceeds $50.00, he will initiate a request (form attached) forcertification of the -availability of funds and approval.of the function through the?AO/DCI (for certification.of availability of funds), to the Executive Secretary, DCI, who is designated the single senior officer delegated the authority to approve these expenditures-on behalf of the DCI. c. Functions or activities which meet the criteria -prescribed in Section C, above, but whose estimated cost is less than $50.0() do not require certification of the availability of funds nor the Executive Secretary's advance approval. d. In each instance the sponsor (who may or may not be the host) of the function will assume responsibility for the payment of the costs incurred. The sponsor may claim re- inibursement by submitting Form 264 with the authorization form attached to the AO/DCI or may request an advance by submitting Form 281 with the authorization form attached to the AO/DCI. Claims or advances for functions exceeding $50.00 will be handled individually. Individual claims for functions costing less than $50.00 may be submitted to the A0/DCI collectively provided the total does not exceed $100.00, 4. The AO/DCI shall submit quarterly reports through the Executive Secretariat to the DDCI on the expenditures authorized Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 herein. Such Reports shall reflect expenditures by major component and independent office at Headquarters and Foreign STATINTL field stations. Such reports shall also reflect and explain any deviations from the provisions of this regulation. Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 ,Approved For Release~:2002/01108.: CIA-RDP80-00473AOQ0300060037 7 MEMORANDUM FOR: Executive Secretary THROUGH : Deputy Director, Administrative Gl zcel , AJ 1 (if appropriate) SUBJECT . Request for .Approval to Incur :penes Under III. 1a Approval is requested to incur expenses allowed under 2. I believe the expenditure .of appropriated fluids is ? authorized under -IR - or the costs for (reception, )neals, :ottee, on, tor mne purpose 3. Senior government officials present including their grade, Other U.S. Government employees present will be: itle and unit affiliation will be: 5, ..Non-U.S. Government officials present will be: Approved For Release 2002/0.1/08: CIA-RDP80-00473AO00300060037=7 Approved For Release 2002101/08.; CIA-RDP,80-00473A000300060037 6. I certify that the attendance of a designated official. or facilitate accomplishment of the DCI's duties and responsibi2_zties c or person has been requested and that the function will further I certify the availability of funds in the, amount -indicated in Paragraph 7. Approved For Release 2002/01/08 :CIA-RDP8.0 00473A0003000$p037-7, ; Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08: CIA-RDP80-4(47'0WW060037-7.- MEMIORANDUM FOR: See Distribution George Bush Director of Central Intelligence SUBJECT official Reception and Representation Expenses at Headquarters and. Domestic Facilities REFERENCE Memo for Multiple Adses. from DCI, dtd 1 April 1976; Subj: Official Reception and Representation Expenses at Headquarter 1. In view of the authorization contained in the I'Y 1976 budget appropriation, the referent is rescinded. and the following policy pertaining to the expenditure of U.Sw Government funds for official reception .and representation purposes at Headquarters and domestic facilities is substituted therefor: a. Appropriated funds may be used for official reception and representation expenses.- including the expenses of cooperating U.S. Government officials at meetings concerned ww.i.th the official functions of the Central Intelligence Agency, Agency employees in attendance at such meetings will noxrnall .2x ecpto may for meals served to them. When a Deputy Director c ~:c rats ne.s t iat this wound be inappropriate and that the employees should he reimbursed for expenses incident to their attendance, the reason therefor must. be stated on the voucher. b. A Deputy Director or Independent Office Head is authorized to certify claims for reimburse- ment of expenses incurred for official reception and representation purposes and to submit these claims (in the format attached) to the Executive Secretary who is designated the single senior official who may approve the vouchers for payment or reimbursement. Since the burden should be a limited one, these responsibilities rill be exer- cised without further delegation. ADMINISTRtWIVE - IN's (;1"AT 1115 O ;LY Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 c. As a'general policy the payment of, expenses incurred for reception and representa- tion purposes at functions attended solely by individuals whose services are fundeU~by the Central Intelligence Agency; or by one of its proprietary organizations or for whose services the CIA reimburses another agency, will not be authorized. There may, however, in the view of a Deputy' Director or an Independent Office. Head, be unusual circumstances justifying an exception. Such an exception shall require the prior approval of the Director. d. Due to a specific: limitation on the total amount of money authorized for "official reception and representation expenses," funds for these purposes are included in the O/DCI bud' get and ali ' such expenditures will be costed to the DCI Improst Fund. 2. The foregoing policy and procedures do not apply to representation expenses incurred-at overseas field stations for operational purposes involving non U.S. Government employees. Existing authorities governing these hinds of activities have not. been modified,. 3. Funds appropriated for the purpose of reception and representation expenses are limited. It is expected that Deputy Directors and Heads of Independent Offices will scrutinize each. request to assure that the need for incurring such an expense is justified. and that a benefit to the U.S. Government is derived. cito George Bush Attachments A. Memorandum Format B. Voucher Format Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 7 STATINTL Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Official Reception and Representation Expenses A. Purpose (add) "It does not cover operational entertainment, in this country or overseas, conducted B.4.b. U.S. Government Officials I note under the heading "U.S. Government Officials" there is included "and members of the news media". It would seem to me the news media people more properly belong under B.4.c., "State and Local Government Official and U.S. Private Citizens." C.l. STATINT~ Should not the word approved be replaced by "authorized?" C.3.b. Can this not somehow be extended so at least we may continue to serve coffee at such time as we have other governmental groups in for one-day courses, seminars, etc. I make reference to the one-day Foreign Service Officers Course and the one-day DIA/JCS Course. C.4. If the recommended additional language under "A. Purpose" is added then the last sentence of C.4. can be deleted. Paragraph 6. You have here perhaps the most knotty and involved administrative issue. In lieu of having all the vouchers Ar' pr ved FprReleasel?d00 01/08.: CIA-RhDP80-t 0473A000300060037-7 y4 and T&A s t?rom e ie now into ere nor e approval of Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 the Executive Secretary, the system would seem to make so much better sense if the Chiefs of Station were authorized, under the strictures of paragraph B.4., to conduct the official reception and representational activity. The vouchers would then be normally processed and adherence to the strictures could be normally enforced by the audit procedures. In order to accomplish this, each Chief of Station probably would have to be given a specific allotment but that is the current situation today. In this connection you might make reference to Headquarters Regulatio M Ref: DDA 77-0464 - Note to DDA fr Asst to A/DCI dtd 26 Jan 77, Same Subject STATINTL STATINTL Approved For Release 2002/01/08 ZCIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 CENTRAL INTELLIGENCE AGENCYi OFFICE OF TIIE DEPUTY DIRECTOR ( )J? ~7, - ~''+~ 26 January 1977 NOTE FOR: DDA 1. Per your request. The draft regulation is an attempt to establish a self-executing system which does not continually require exceptions by the DCI or DDCI. 2. The A/DCI suggested that I send it to the Comptroller and ask that he put it on the EAG agenda. However, in light of the EAG's crowded schedule and the current uncertainty concerning the A/DCI's availability, what would you think about submission of the draft to the Regulations Control Branch to start the coordination process as an Agency regulation? ,- Attachment Draft Reg STATINTL Approved For Release 2002/01/08.:- CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08': .CIA-RDP80-00473A000300060037-7. OFFICIAL RECEPTION AND REPRESENTATION EXPENSES of Official Reception and Representation Expenses incurred. by the Off .cc of the Director of Central Intelligence' and components under hi _s control, including expenses of cooperating U.S. Government officials and priva-e This regulation prescribes criteria and. procedures for the payment A.. Purpose U.S. citizens at meetings concerned with the official functions of 1. Official Reception and Representation Expenses -- Direct costs incurred to extend courtesies and amenities to designated officials and persons who can aid or facilitate accomplishment of the DCI's duties the Central Intelligence Agency. B. Definitions 2. Courtesies and Amenities -- Activities which manifest respect and. and responsibilities. consideration and are conducive to comfort, convenience and the establishment of personal relationships; they include, but are not for Operations, Administration, Intelligence and Science and Technology, Director for National Intelligence, Deputy and Associate Deputy Directors 3. Senior Agency Officials -- The DCI, DDCI, Deputy and Associate Deputy to the Director for the. Intelligence Commtmity, Deputy to the limited to, receptions, breakfasts, luncheons and dinners. heads of independent offices, and A/DCI (Media) . Approved For Release 2002/01/08 : CIA-RDP80 00473A000300060037-7 Approved For Release 2002/01/08 CIA-RDP80-00473A000300060037-7 ` . 4. Designated Officials and Persons a. Foreign. Officials or foreign private citizens determined. executive pay level or in. CS Grade 17 or above or equivalent grade b. U.S. Goverment Officials -?-- Civilian officials at an courtesies and amenities. Members of Congress and Staff Directors of Congressiona] committees or Subcommittees (and menbers of the news media. or position, military officers of equivalent rank or positz.cn, State and Local Government Officials and U.S. Private Citizens determined by a senior Agency official to be entitled. to the extension of courtesies and amenities. 5. Host -- The Agency official present who exte;td_s the courtesies and amenities to a designated official or person.. 6. Sponsor _W The Agency official who requests and/or arranges the expenditure of-funds, appropriated for official reception and representation expenses is authorized on behalf of a designated official or person to provide an atmosphere through the extension of courtesies and amenities that will further or facilitate accomplishment of the Directors duties and responsibilities. The payment of expenses for functions and It is the policy of the Director of Central. Intelligence that the extension of courtesies and amenities. C. POLICY . activities on behalf of a designated official and those in his or her. Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7. by a senior Agency'official to be entitled to the extension of Approved For. Release. 2002/01/08 CIA-RDP80.00473AO00300060037-7 and will be approved by the Executive Secretary under the following party, as well as Agency personnel invited to attend, is appropriate criteria: 1. The activity or function must be approved by a senior Agency official. 2. At least one guest must be a designated official or person. 3. The primary purpose of the function or activity must be to establish or promote a relationship which will-further or facilitate accomplishment of the Director's duties and responsibilities. a. In this regard, payment is not authorized for any expenses incurred in the conduct of routine business or meetings except as expressly authorized in. this paragraph,. Whether the conduct of business or meetings is routine depends on its frequency, the reason for its occurance, and. the nature of the business or subject matter discussed. For example, regularly scheduled interagency meetings are meetings with Members of Congress or the Cabinet at CIA routine for purposes of this regulation while infrequent payment of expenses is authorized for light refreshments, -O b. If requested by a senior Agency official, the Headquarters are not. at retirement or awards ceremonies. meetings attended by a designated official or person, or such as non-alcoholic drinks and-donuts,at interagency. Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 STATINTL reception expenses incurred -in -the -field, -subject to the conditions outlined in this regulation, for functions or activities on.beh,alf Approved For Release 2002/01/08 :'C1A-RDP80-00473A0003000"60037-7 4.. Payment is authorized for. official. representation and. of a designated official or person in categories B4Cb) and (c) only, Expenses incurred in the field on behalf of foreign officials or foreign private citizens will continue to be handled under other authori services are funded in whole or in part by the CIA or one of its S. The payment of expenses is not authorized for functions or activities attended solely by Agency employees or individuals whose proprietaries, pr for whose service CIA reimburses another Government agency or private organization. 6. The approval required by Cl and the determinations authorized Officer of the. DCI an estimate of the amount of money needed by his Director and independent office head will provide the Administrative 1. Annually, as a part of the budget planning effort, each Deputy by B4(a) and (c) and required by'C2 may not be delegated. D. PROCEDURES organization in the budget year for the purposes set forth herein.. Any significant increases in the cost incurred in the current year will be fully explained. The consolidated Agency estimates will be incorporated in the budget estimate of the O/DCI. Approved For Release 2002/01/08 : CIA-RDP80-00473A0003000600:37-7 Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037.=7 2. Upon receipt of the allotment from the Comptroller at the beginning of each fiscal year, the AO/DCI will advise each Deputy Director of his proportionate share of these funds for planning purposes and will maintain records to account for the drawdown of funds by Directorate or independent office during the year. AO/DCI is authorized to reallocate these funds among Directorates and independent offices if actual expenditure rates deviate sufficient to justify such action. 3. Expenditures will be authorized and recorded in the following a. All expenditures will be charged to a DCI FAN account established for this purpose. b. When a senior Agency official concludes that the expenditure of Government funds is appropriate in accordance with the criteria established in- Section C, Policy, above, and the estimated cost exceeds $50.00, he will initiate a request (form attached) for certification of the availability of funds and approval of the function through the AO/DCI (for certification of availability of ds) ,. to the Executive Secretary, DCI, who is designated the single senior officer delegated the authority to approve these expenditures on behalf of the DCI. c. Functions or activities which meet the criteria prescribed in Section C, above, but whose estimated cost is Approved For Release 2002801/08 : CIA-RDP80700473A000300060037-7 . ? Approved For Release 20.02/.01/08.: CIA-RDP80-00473A000300060037-7 than $50.00 do not require certification of the availability of funds nor the Executive Secretary's advance approval. E d. In each instance the sponsor (who may or may not be the host) of the function will assume responsibility for the payment of the costs incurred. The sponsor may claim re- imbursement by submitting Form 264 with the authorization form attache&-t& the AO/DCI' nr riiay request an advaxide by submitting Form 281 with the authorization form attached to the AO/DCI: Claims or advances for functions exceeding $50.00 will be handled individually. Thdi.vidual claims for functions costing less than $50.00 may be submitted to the AO/DCI collectively provided the total does not exceed $100.00. 4..- The AO/DCI shall submit quarterly reports through the Executive Secretariat to the DDCI on the expenditures authorized herein. Such reports shall reflect expenditures by major component and independent. office at Headquarters and Foreign: field stations. Such reports shall also reflect and explain any instances of non-compliance with this regulation. Approved For Release 2002/01/08 : CIA-RDP80-00473A0003000060037-7. Approved For Release.2002/01108 CIA-RDP80-00473A000300060037-T MEMORANDUM FOR: Executive Secretary Deputy Director, (if appropriate) M ministrative Officer, DC~1 SUBJECT : Request for Approval to Incur Expenses r Under HR 1. Approval is requested to incur expenses allowed under 2. I believe the expenditure of appropriated funds is authorized under HR for the costs for (reception, meals,, coffee, (other) on (date) title and unit affiliation will be: Other U.S. Government employees present will be: 5. Non-U.S. Government officials present will be: Approved For Release 2002/01/08 : CIA-RDP80=00473A000300060037-7 3. Senior government officials present including their grade, or facilitate accomplishment of the DCI's duties and responsibilities Approved For,Release.2002/01/08 CIA-RDP80-00473A000300060037-7; 6: I certify that the attendance of a designated official or person has been requested and that the function will further CRequestor Deputy Director, I certify the availability of funds in the amount indicated in Paragraph 7.- .The ..estjirtated . cost-of this ; function is zttrativeOfficer, DC APPROVED: Executive Secretary Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7:' Approved For Refeds 26:b 1dW1 A-RDP80-00473A000300060037-7 1. Re the covering memo of 13 January, paragraph 3 discusses the present authority for a Chief of Station to arrange entertainment for Agency employees exclusively when neces- sary to enable an Associate Deputy Director or higher to meet the Agency employees, and sometimes spouses, under secure circumstances. This authority is rarely used because officers at this level don't travel that much. The last time was when Mr. Bush and Mr. Wells went to Europe. The authority has existed in one form or another for 20 years, but the present delegation was signed by Mr. Colby in a book dispatch. It would be dif- ficult to expect a COS not to entertain visitors at this level, but it would be a financial burden if the COS has to pay for it himself. The Directorate of Operations is the area primarily involved. The memo states that the DDCI agrees that the authority should be cancelled, but I do not believe that has happened yet. This should be discussed with Mr. Wells and Mr. Shackley. 2. Re the memo of 7 January 1976. In paragraph 3 the are two sentences, beginning on line 5, which statel that fiel stations have to resort to other authorities to entertain U.S. officials such as travling Congressmen, etc. There is no other' authority. That is why the DDO asked the DDCI to approve the book dispatch. At the present time a COS has to pay for the entertainment himself if he arranges it. The existing authority does not cover overseas stations. 25X1A Approved For Release 2002/01/08 : CIA-RDP80-00473A! 0 Oft O37-7 CL BY 006624 Approved Fo1r Release I00~/01?o9 Cl~-~ 8 110%4i~,kOOOS68 B3gf-~ng memorandums do not draw a clear enough distinction between "official receptions" and "operational entertainment," whether in this country or overseas. The regulation, as written, could be interpreted to bring all oe entertainment involving U.S. citizens into the "official reception" category, which could create a great deal of confusion. On page 4, paragraph 4, the second sentence excludes certain types of operational entertain- ment which is to be handled but only (a) foreign 25X1A officials, and (b) foreign private citizens, who are (c) entertained in the field. This is too narrow. I think that a (~ 5 clarification could be included iz-a final sentence under para- graph A, "Purpose" on the first page of the regulation, "It does 1.,71/jnot.cover operational entertainment, in this country or overseas, ~1 conducted When the EAG votes on this they should understand that there is operational entertainment involving U.S. citizens, in, this country and overseas, which is outside that 25X1A contemplated in the discussion of "official receptions." George -phoned me about this, and I confirmed to him that was broad enough to take care of the DDO requirements, but the wording of this regulation would restrict the application of to a very limited area. 4. D/O accepts the fact that the budgetary ceiling of $1.6:_-O'-OO applies to official receptions, including the entertain- ment of U.S. Government employees exclusively. This, the Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Release 2002/01/08 CIA-RPP80-00473A000300060037-7 Limitation applies to (a) all official receptions, (b) entertain- ment ofcooperating officials of other U.S. Government agencies, and possibly (c) entertainment of Agency employees whenever this is authorized. i,P5 which (b) above '.OR what Mr. Wells willing to fund is approved, or There is presently no internal authority under can be authorized overseas, and that is basically is looking for. He has agreed that the D/O is separately for that type of entertainment if it the D/O is willing to abide by the $16,000 limitation (or whatever limitation may be established in future budgets). Either way is acceptable. However, the OGC rulings AL_ L did not apply to the entertainment o private U.S. citizens ^r;i-;.__; and if we fold' that into the interpretation it is going to be very difficult. 5. Any statement of policy on entertainment is going to have to be very specific to facilitate the processing of the vouchers through the approving and certifying officers. Key questions the EAG must answer: a. Do we continue to reimburse a COS for expenses involved in entertaining Associate Deputy Directors or higher, with attendance limited to Agency employees exclusively, when necessary to enable the visiting official to meet employees under secure conditions? If the EAG agrees, no change in procedures is necessary, Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 although the present authority is in the form of a Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 book dispatch signed by Mr. Colby as DCI. The program is tightly managed, careful records are kept, and the accounting treatment can be adjusted so that the costs are charged to a single centralized account if this is desirable. At the present time they are not charged to this centralized account. These costs have never been regarded as "official reception" expenses. Such a change would pose no problem. b. Should we authorize entertainment overseas of cooperating officials of other government agencies, in the same way that we now authorize the entertainment of the same officials in the U.S.?? If so, the book dispatch proposed by Mr. Wells would provide the necessary authority and procedural instructions, and Mr. Evans have agreed that they should not be involved in process-25X1A ing vouchers of overseas entertainment, although they handle all vouchers for domestic "official receptions." The proposed book dispatch would make the DDO the approv- ing official, but all costs would be charged to the same account for financial control purposes. If the new pro- posed reg a-d-d&s-e-., the overseas portion, the procedural quest:i.onsmust be considered. As written, it would require Ben Evans to approve overseas expenditures also. c. Do we recognize that there is frequently opera- tional entertainment of private U.S. citizens in the U.S. Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7 Approved For Releases 2002ioimb tI! RDP80-00473A000300060037-7 and overseas which should not be classified as "official reception" expenses??? If so, this type of entertainment should be excluded from the proposed reg. See para 3, above. 6. Page 4, para. 4b. a. Question whether members of the news media should be classified as"U.S. Government officials." 25X1A 25X1A In the same sentence we find the term "representation." I think we should avoid language which could link "representation" and "official receptions" since there are technical distinc- tions which make them two entirely different things. Approved For Release 2002/01/08 : CIA-RDP80-00473A000300060037-7