ACTION MEMORANDUM # 397

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000200040045-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: December 15, 2016
• Document Release Date: April 14, 2004
• Sequence Number: 45
• Publication Date: June 30, 1964
• Content Type: MEMO

OFFICE OF THE DIRECTOR
pproved For Relea
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Action Memorandum No. 397 _-
1)e ty Director (Intelligence)
SUBJECT : Policy Guidance for Preparation and Review of
Fiscal Year 1966 Budget
REFERENCE:
A
4
C
7
I
0
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1. "ring FY i964 the Agency has taken a number of important
steps in complying with the President's admonitions for economy and
efficiency. vital operations have been impaired, productivity has
.been unproved, and the cover-all on-dusty strength reduced. In FY 1964
there has also been considerable reprogramming in the Agency, both
within and among Directorates, and some elimination of marginal
programs in order to accommodate new higher priority efforts. With
0
the requirement to submit the Agency's V Y 1966 budget, there is proms
vided a further opportunity to take the kind of hard program look D
requested by the President. A
Z. Within the neat few days the Offices of your Directorate
will be called upon to prepare their F? 066 budget estimates. It is the N
ofa,,,
Director's wish that each Deputy Director and Office Read per*
review these submissions with the utmost care to insure that: they represent D
T T
a sound allocation of resources .against highest priority objectives.
3. The Director has instructed that the budget reflect a decline M
in over-all Agency personnel stream to 0 by June 1965. W itthin the
Agent total, the personnel ceiling for the DD A will be iz- F`Y 1965 25X1
and total,
FY 1966. The personnel ceilings include positir for 25X1
NPIC which are not to be reduced in adjusting position allocations within
your Directorate's new ceilings. Dollar target ceilings to accommodate
SUSPENSE DATE:
Approved For Relea
0 JUN 1964. =
611%? 1
Exciaded from aatomatil
downgrading and
ieciassiiication
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 proved For Relea
your programs for FY 1966 are Dollar ceilings for the
FY 1965 Financial Plait are now under review in the Office of Budget,
Program Analysis and Manpower. However, prior to the issuance of
allocations it will be necessary to provide BPAM by 15 July with the
new office break-oat of your Directorate's FY 1965 manpower ceiling.
4. The achievement of those goals will require all of us to
demonstrate our management ingenuity in reshaping and reassigning
ones drag priority
current assets to meet future demands as we see
programs must go forward and other less important
Deputy Directors and Office Heads. in concert with my office, will be
expected to reprogram and affect reorganizations as uacessary to
accomplish the FY 1965 and FY 1966 objective*.
(signed) Lyman B. Kirkpatrick
Lyman B. Kirkpatrick
,Executix* Director-Comptroller
O/BPAM vgd 28 June 1964
Distribution:
orig and 1 - addressee
1 - ExDir-Compt
1-ER
1 - D/BPAM
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20 JUL 1964
{ Aam FOR: Deputy for (Intelligence)
SUBSET
npcwer Level*
CN. : Action Memorandum
3o June 196
1. After review Of your memorandum of 15 July 1964 I agree
the level of the
that your point on NPIC departmental int igence activity is well taken. In Deigning rsonn.el- ad justment? wit2
your Directorate, You can end should take this into +i+d
along with other ED/I responsibilities. I would enccaur#e t e Director make every effort in cooperation with thh these, XW# result
from
here MW identify further savings, particularly ices
closer examination of comparable and possibly overl&PPi~
between OCR and NPIC.
be wise to identify at this tit ; oae
2. In addition it may r f= eL'
"overhe " positions now filled by CIA which could be ency
e' tiers as
by military assignees From DIA who are not charged to
ceiling. Perhaps these could include, for exemp
well as others
. Following this review we should ccn$ider the Wibutios Of
exploring with DI their attitude toward a larger and "werheed" activities of the Center in view of the
the support
exploriSaint nature of the activity. It seems-to me that perbaps DOD
make a more proportionate contribution toward
should be e+xpeeted to rhaps not new but
the total personnel regFuiresnents of the Center, Pe
certainly in the future if additional increases are r~quired?
'(signed) L ,pan B. Kirkpatrick
Lam, B. Kirkpatrick
Executive Director?Cc*rsptrdhl-er
BPAM/ (16 Jul 64 )
Distribution:
Orig - Addressee
1 . - Executive Registry
D/BPAM
1 _ Manpower Subject
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Excluded from automatlc
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ORA 4DUM YO*: xxecutivo Director-Co ptrollsr
USiNCT : Action in 70"0
0/ECI Action o 397 (30
1984)
This 0000"ndum is for y information and responds
. 3 of AN 307 requ*et:l Doi to i atfly the organizational
to parc the c4-In the T/0 of the Directorate of
enexats affe+etee+d by
Intelligence from its present in FY 1988 and to 25
n F T 1989 (while exempting eduction.)
suzaaE 1! pi To CUT
3? The specifics of the gx-i--ludiag the effect
part upon deve1#a arising during
'to iscQ' ate t -IC in the T/? brace fr
of finding ways elements
reductions Can c+r . There are, for example, Ceram goreover, I+ID/NPIC-
need careful of NpIC, tray well be a
betviea- S'IC attd tlClt Which t nt
the CIA dopa~rtuea tad suPPOr
preferable source of positiOU$ over the anslytiCal. effort which
PID was created to support.
QCs last
b
y
sitions taken
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4. I t vi WW Of the cut of
year, and the modest level at Sethto ch ONE has coeeistentlY been
ion of absorb the UaJOr staf ed it Will not be
geeible edastl.ngy Single function
the r7 in any #rl.tl? Office or by
programs will therefore be offected
or two. A eta of every kind valuableind of evaluative Intel l 1. gence activity.
see Tab A present DDI manpower coi itne:nts to national intei--
ligen(13~ere Tab A for P intelligence; and
Agency
ee ce;
impact ce;' ~SxB t iC'ee of common See concern; B for the specific Services oo cut upon these inTell.igefce programs.)
of the
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GIRIERAL IMPACT 07 1`D CUT
6. Excepting NPIC, WI periestsel constitute of the
Agency tote et we are now emoted to taker of an Agency-
wide out of positlong. we believe this to be ill-advised,
not from WI's point of view, though cuts are never pleasant,
i ut's and from DCI's point of view because
th
e 1+
but from
of their increasing de ands and thdicati+am that our intelligence
output is of ratio ar.l significance.
7. Again esseptiag NPIC, resources placed at the disposal
rms we
t t
e
of the WI have been progressively reduced. In ne
8. In the face of this decline we have had to pick up
it mime without being permitted to drop any 6ig--
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extensive +cosm j
nificaat tasks. For example, in recent years legitimate requests
for economic and military analysis, and reports of current
policy interest peed by ?RR on these subjects have more than
doubled. Even with present strength needed specific research
is delayed, canceled, or not undertaken for lack of capability.
9. Thera has also been a very considwable increase in the
VnIlifte and variety of intelligence information requiring processing
evaluation and collation in
order to meet those deman as we l as our Comiunity commitments
of ca n concern. (Sae Tab C for increase in information
requiring analysis since ".. )
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11. Going to the relative merits of major Agency activity,
we believe it an error to augment programs in Volving the es ndi
ture of funds for technical intelligence at the expense of an
already relatively modest analytical and evaluative program upon
which the key intelligence jidg*ments west ultimately depend. Added
collection means awe flew into the syste*, requiring more guidance,
more processing,. morre evaluation, more analysis, more reporting,
all or such of which must come from the DDI (as our experience with
)TPIC has shown).
12. Finally, and let there be no illusions about this, the
year ahead will find us forced to identify individuals who are
not marginal performers, but who in the new situation will be
surplus to our needs despite all the steps we plan to take to
place them. Those we shall be obliged to recommend for separation.
13. In short, we believe there now exists an imbalance In
Agency programs which the portion of the cut assigned to DDI
accentuates to the detriment of the ewer--all intelligence effort.
RAY S. CLllis
Deputy Director (Intelligence)
Attachments:
Tab A: Present MI Manpower Commitments
to Intelligence Programs
Tab B: Specific Impact of Cut in WI on
National and Agency Programs
Tab C: Percent Increase in Intelligence
Information Requiring Analysis since 1953
cc: DCI
DDCI
ADDI/X/PABorel:rh(15 July,
Distribution:
O&1 - Addse
1
- DDI Chrono
1-DCI
1
- DDI Admin
1 - DDC I
1
- ADDI/M
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IFIC IMPACT OF CUT IN ODI
NATIO1IAb INTNLLYN
Reduction of production in OCI resulting in inability
to meet the accelerated schedule for the NIB only
recently approved by UBIB. A redact icy in 081's key
role in the NIB program largely to be reflected in pro-
duction delays and in a drop in quality control.
13818 BERM or CO
call"
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 AGWC
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y (DEPA
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TAL) PRODU'Tx
We had planned to augment 1ilitarq-gcoaeetic Research
and will still endeavor to do so in view of the
importance of this work to Mr. McNamara's efforts in
cost effectiveness. tf weare
plan nsu in
increasing this program we
research on free World forces and concentrate on the
USSR.
25
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2. The distributes or 1oCi within you' -vbetorate is in
accord 'At h the brOWUUW t mi~ by your of fiee in reapori a to Action
memo 397. fte tots *93" eeillb$ is the planed s eat ion for your
directorates sub, t to "lam , a ro c1 of t Agency's bullet
and aWortlawant 'by the 1 reau a* . Such . the mice breakdown
is the result of b views erad wings by Q J( but mAy be adjusted
within the total for year directorate, in co ul ation filth tl: m! if
you cte such roriate.
:its to shine runs fu a)d to your
In sd$it# 196 the ttac~
d
l
lis
e
e
u
, ts the
194 anew e l eM a 1A dollar o11
4
imaer b
offi
,
;
y
ce the 19a eOlnui n of the budget. The dollar Obliggatj; accord with
Agency records as of 304u me 0% and cmMot be chanced except for c C et-
pax .'bitity ust is bmtveen offices.
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71
at th* was loyee Gal y Act of 196k
be a pro ell so $h i 1965 all o runt. includes an
.r this coot. 46tail: of this breakdc
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