(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01370R000500050041-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 12, 2016
• Document Release Date: March 6, 2002
• Sequence Number: 41
• Publication Date: January 28, 1957
• Content Type: OUTLINE

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CONFIDENTIAL
L(.2/
8 1957
5h doul the Director at this time seek additional funds to construct or
proposed new huildirein accordance with our original plans so as to house all
of our Departaentea personnel aud activities in ome Wilding?
II. ASSUMPTIOR:
If ue staked for me additional Ands we mead ask for the total necessary
to accommodate ell Departmental activities and personnel in coe building. ($12
to $13 million dollars.)
3IX. FACTS:
A. The original estimate which was agreed tobythe General Services
Adtteistration aod the Barest& of the Budget and =batted to the ConSrees with
our request for an authorisation and appropriation vas $50 ntuico. - to me:romp-
25X9 date all of our Departmental activities .
25X9
B. The Congress has authorised and apprwiated 06 million and ban di-
rected "that the Agency make every effect to construct a building to accomodate
all of its headquarters pereoenel within the stat provided and....that none of
these funds be spent in such a way as to make it necessary for the Congress to
authorize additional funds at a later date." (Tab A)
C. Last Fall we agreed with the General Services Administration and
Harrison Al Abramovits that me could not construct an adequate building for $46
Pialien dollars. Farther study twit:abed that we could erect a building for
about of our original goal) by leaving out of It car.
tain activities vhich required. a large amount of space In relation to the number
of people occupying it, i.e., Printing ardInproduction, TSS laboratories? and
certain full-tins training aetiviiies. We decided to proceed with our pinarning
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aliong these lines, leaving ope:a the quest IOU as to ðer ar =Ft we it at
some later date revolt legislation %Well mad peemit us to place all of our
activities in building, cc at least at one location.
D. Construction costs hese risen about 9% since wepreseatted our art glual
request to the Congrees 2a the atXtrillg of 1933. in other words, due to rising
esmetvetioa costs alone we can now buy vhout $4 million less building for on
=nay =dna te COVria then - the picture say get worse before we let a construe.
tion ocoltract.
E. Current esttes indicate that:
1. To construct a building to accomodate our origami space
requiremets (ell Departmental personnel and aclivities) would
probably cost $58 or $59 million dollars - $3.2 to $13 taillion more
than we are now authorized.
2. We cannot (=street for OS million dollars as Urge a
building as we had thought poesible last Fall, and it seems prob-
able that in a building which we can contract for 06 minim we
will be able to accomodate only slightly =re than 25X9
this =ens leaving cut ea additional nhich present 25X9
plum do not contemplate.
be in
could a
taxpayer, i
1 Tangible savings
bui3Aing, would be shout $3,20D,000 per annum. (
F. . ings to the f In all
2?,learl...ng out Printing 83 Regroluotion, TSS laboratorlea, and.
oari.e. in training activitiespw leaned. reduce these savings by
about. 50%.
3. leaving out additional pereonnel will cause a further
cocrespsading
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G. In a letter (Imbed 6 Dumber 1956 the Director of the Budget advisee
spending on the national econcer at the present Vim, that we should minimise
us that the Presldent desired to avoid. the impact of e.&titionel Goverciecant
our plane for new conetruetion during this period of extremely high businees
activity, that plans ehould be prepared end he1d. in abeyance uatil there
apeenteed to be some lessening at the Intense pressure in this area and. that lee
should proceea now with essential constreatien projects only. (Tab 3) We re-
plied to this letter en 22 Deeenbar 1956 stating our Ms belief that it vas
In the Governeenbts best interests to proceed ulth the oonstruetiom all our MU
building. Mille our funds are letcluded In the Presidentts budget, we etill
have to obtain persissice free the Bateau of the Beiget or the Presieent before
actaxelly let our coustevation contract. Nab C)
B. We have also received a letter from the Searetary to the Cabinet quot-
Ing minutes of a V. Demeter 1956 tbbinet Meeting at iehich the President Derek:et-
c./1y announeed as a pert of his bertt policy that "the rate of empenditures for
coestruction for Which obiligational authority either is now available or nay he
granted by the Congrees is to be held to the econerdc =Wan and requests for
new oblieetional authority for conotrusticea owe to be made for essential pro-
jects way in order that federal spending will net incirease the cemesting
pretweeree for mew, neepoceer, mateirlals and equipment." (Tala D)
I. In a letter dated 23.Temaary 1957 the Director of the Budget has advised
us that the President desires that "any proposals by departments or agencies for
new lagielatiaa involving incramze at new obligetional authority or evenditines
nut specific:03z provided for in the budget or which caneot be covered within
budget totals will be wejected and bald to be not In accord with the Presidmateoe
peognme unless; the President otbereise dixects." (Tab 3)
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DISCUSSION:
A. Based on facts A. thrmsgh P. above, a etrong argusest can be made Urea
we Amid request legislation to accaealett our original yorpose, ead, in fact,
that it would be quite lemenropriate for us not to do so. Facts 0. through I.,
hemmer, indicate that the Emanative Dr=ch esiort deny us pernission to reake
such a request of the Cmegress and it seem almost certain that the President's
persenal persdssion would be necessary.
D. Assuming that the President would grunt permisslou, Which is eat at all
certain, it will surely be a cartrovarsial tter in the Congress. Vie know
that such a request evald be seweattetically received by KU NI key mesibers et the
Congrese end almoot certainly it would be quite =empathetically received by
ethers. These Ulm would oppose us would probably do so primarily because thee
believed we did net 'Iced so many emegvle in Lebtntca, and, set, because
of the coat. Been these tdre woad be synecttlistic would net be likely to defend
cur Deeerferental strength. In feet, few, if am, really undtersterd our need for
this amber ot people in Washiegton. The contromersy awl resultant petblicity
woad focus attention en the Agency vihich might be madeslrable at this time.
If we weresee easeful it would erebably be only with oonsiderable diffieult3r.
Co Conceivably, a eedhination of Ensenbive Brunch relectence to undsatele
=slow cetestrnotics at this time and caegressicnal eonteceeesy over the matter
could result In the Agency being denied pa missionto let its construed= con-
tract for an indefieite period..
D. Althaver it is highly desirehle to vmderteike all at our conertruetion at
once, it is possible to leave sone units out of the building and it to feesibla
to add to it or to construct a separate building at the sane location to ace=
modate all of cur employees at a later date.
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E. If tie WM sodas to request additional authority, 1e1 ]tic should be
inesrodueed at a very early date. If not, we ahea4 ativ-ise certain key needbers
a the Commas cd" the facts and our Ann o stroondttro.
Y. ONICATSION:
That we should not seek additional authorinatien and bads at this ties.
VI. BECOMINDATI
A. That we oceetineep and if possible eggadites our prevent plantains for a
$116 i114 dollar building.
That as soon as wo can determine kw easy people the building will
esecesodate we designate thaws additional unite Ukiah will not ism to the new
WIWI% wad adjust aur Internal pleas aocordisegly.
C. That Tee advise anropriate hay makers of the Melva= of etir Plan or
action with the understandies that if we are unaueeesatul in our efforts to
realm cur penennel so as to gerb all or nearly all of them in this building
new request an additional, authorisation end appropriation at sem later date.
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elith Congress ROUSE REPREEMETATIVES REPORT
2d Session Roo 2864
SUPPIZEZETAL APPROPRIATICE? ma, 1957
July 21, 1956.--Ordered to be striated
Nro CORM from the cosseittee of conference indesitted the following
COMBRICE MEOW
(To am:maw E. R 121138)
EXTRACT
=PT= III
=TM INTIELLIGEICE MI=
The conference committee enrcrees of $49,000,000, the amount allow-
eu . by the MAW of Representatives end the Senate few construction of
the headquarters for the Oeutra, Intelligence Agency. The committee
directs that t220 a
err
soccesto within t*: eeminerj.414,,
and directs that 2142120 of then ftmds be sz....A.gask_m_may_gg jp, entre
it ememesseey for the Congress to authorize adAitional fends at a later
date, omit camtszene farther directs thatnone irids
or spent until the Director of Osettral intelligence has obtained
free the awrepriate local authorities written commitments for the
construction of roads, sweetge treatment Planta, 011ie traaaVCCts, and
other local facilities which are deemed lbaeltiMienr to serve the site
selected.
EXTRACT
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SZECIPIIVZ OFFICSI OF TEE PERSITIVIT
BMW OF TEZ BEDOIRE
liashington 25, D. C.
6 December 1956
my dear Kr.
In connection with his current review of departmental
requests for the preparation of the 1938 Budget, the President
expressed cones= at the large muter of increases AN:gamed.
He asked ate to call your attention to the desirability of
avoiding the additicual Aggliataeovannent
national at the sent tine. With business activity
at a new , competing for labor, equipment,
and nue, the Oovernment should not add to the inta1etionu7
presswes. The President suggesbed, that you minimize your
plans foe' new eosstractien and even major pairs during this
period of extremely high business activity. Plana should, be
'reputed end held in abeyance until, that" appears to be anus
laseening of the intonee pressures in this area, and you
should peAocced on with essential pro3eets only.
Sincerely yours,
At Percival le Brundage
Director
Eonorab.le Allen W. Dulles
Director
Central Intelligence Agency
Washington 25, D. C.
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21 December 1956
The Honorable Pereival F. Brundage
Director
Bureau of the Budget
Washington 25, D. C.
Dear /dr. Brwandage:
mu is in reply to your letter of 6 December 2956 conveying the
President too suggesticn that we minimise our plans for new constructioa?
and even major repairs, &tang the present period of extneutely high
business activity. It is ny understanding that this policy is intended
to imply only to construction in the United States.
According to present plans the nazism expandittue for atm:Weide
construction by this Agarey for the ressimier at Fiscal Year 1937 Itebi
for Fiscal. Year 1958, exclusive of eupenditures for the new beediptar-
term building, will amount to approximatel3r 4335,000 and $1,000,000 re-
spectively. We will certainly give moat careful consideration to the
possible curtailment or elimination of this construction during this
period.
With regard to the rave building, we ha4 anticipated incurring 001.-
attraction obligations in Fiscal Year. 1958 of epproxiniately 02,000?000.
Yine actual expeadituree, &wording to estimates tof the Comeral. Services
A,dmimistratica, wottld emover4 to a maximan of *8,000,000. As you ham:
this building is of extreme importance to the Agency. We _.nticipate
that after the end occupied . .....51SMai"
wilLaccree each year -Ji and that our
and merit/ will be 7.1 ? adtli?t, -
tharl nzie eanstraction Wee earilt Will -coat
Governmemb. ?tor example, since *arch, 1955, when our original esti.
i mutes mat made, the "Roginevaring News Record" lvaLlAing, cost index hoe
increased 8.9 ear cent. Of great importanoe also is the fact that
the , ... . ccestrection of a bridge (or turnel)...with its required ap-
proaehes...aaross the Potomac River near the end of Constitution Avenue
will necessitate the elimination of the major partion of existing CIA
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headquarters space. Theo: even with evedited construction of our new
building then will be a race for the finish lime.
We appreciate vary yeah your agreement to include estimated obit-
/patios of 02,000,000 far the building in the CU it for Fiscal
rear 1958 se that our forward pluming will not be interrupted. We
feel that it is in the Government's best interest to proceed with the
ecostruction of this building without deer* wad look ferward to dis-
missing the matter with you when the data on which we migteb expact to
let a construction contract is more nearly at hand.
Sincerely,
/5/9
Allen W. DuLlss
Director
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TIE WHITE HOUSE
Washington
Dear 14r. Dulles:
DeceMber 20, 1956
Transmitted herewith for your info:motion and action is an extract
from Cabinet Record of Action RA 56-63 from the meeting of Friday,
DeoeMber 14, 1956. This extract is a statement of budget policy set
forth by the President at this meeting and is applicable to the entil
ftecutive Branch.
"L The Bndget. Outlook
ACTION t
The President set forth the following principles of budget
policy which are to guide the Administration for the re-
mainder of PT 1957 and for FT 19581
a) New hiring is to take place only after a review
has demonstrated that a vacated position connot
be abolished or filled by transfer.
b) The rate of expenditures for construction for
which obligational authority either is now avail-
able or maybe granted by Congress is to be held to
the economic minimal, and requests for new oblige-
tional authority for construction are to be made
for essential projects only, in order that federa2
spend,ng will not immerse the competing pressureo
for money, manpower, materials and equipmemt,
0) It 'will be the personal responsibility of oach
Department and Agency Head to implement theae
principles within his organisation, and to hold
his operating aubordinatee correspondingly
responsible."
Sincerely,
/e/ Maxwell M. Rabb
Maxwell M. Rabb
Secretary to the Cabinet
The Honorable Men Welsh Dulles
Director of Central Intelligence
Washington, D. C.
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Ca.
4ted to Official U, S. Govern,
-rXML-7411IVE OFFICE OF THE PRYSIDENT
Bureau of the Budget
Washington 25, D. C.
ar Mr, D
The 'tdert has directed me to bring to your bitten ice the
ming tnntruotions which he wishes the head of each department
gmEw to Volley in order to carry out the fiewalpoliwy,Which
nas eliipbbehed, Please see that the Presidents.4eiie ere
;ualy ieviinvrtood ard followed in your agency,
Ary piv.pwals by departnents or agencies for neu legis.
:AnvolvIng Iparesse of new Obligational authority or expend,
a not spenifically provided for in the budget ur-shttuh cannot
tAlt "e5.33C1idtM hudgfit totlis will be rejected are held to be
accord alth the Presidenttin program" unless the President
(14.,YvIkee arm**.s.
2.?P, di ,Aenentai eat1atee for authorizatims or appro,,
te Imeammeadad ,,Illa ea the funds aan 'be rad
oftUte y transfer or by Adjustments within the budget totals
11.1f ,4he r spective departnent or agency, or unless the Prealdent
vtherwies diroets,
7.2.4ch department and agency head sill reaffirm and pursue
tC.th flor the program already adopted by the Adriniatration
progre iv(tly to reduce aosieromeritt expenditures, with the Idea of
holding 1957 expenditures for the balance of the fiscal year and
458 expeadltoma bels the mounts entimmted In the budget?
4, utch depaAmont mIll report periodicalla, to the Bureau
of e Mdget (,for consolidation and submission to the President)
be rosultw of thin Program,
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..lalder Ivnufmal Arcumstances, special Presidential con-
4idtUtn becomes necessary under paragraphs 1 or 2 above, it
is provided for in the naval, process of handling legislation or
lemental estimstes 1.11 acordance with Budget Circular Noe. A,19
A. respcntively, AddtiAonal inntructdtmo us to agency.
cipaticn in reportAng to the President under paragraph. 4
be issuen lubaequently,
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Limited to Official tr. S. Goveramsot Use
Bhidget Circular A-10 antlines certain other responsibilities
with respect to the budget. It is requested that you take
particular steps to assure that all officers and employees of
your avmswhaviag responsibility in budgetarynnttAers are
thoroughly familiar with this Circular sad comply therewith.
Sincerelyyour,
Percival Brundage
Director
Honorable Men W. Dulles
Director, Central Intelligence
Agency
Washingten 25, D, C.
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