DIARY NOTES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R001700110039-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 15, 2016
• Document Release Date: February 10, 2004
• Sequence Number: 39
• Publication Date: July 23, 1965
• Content Type: NOTES

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DIARY NOTES
Executive Director-Comptroller
23 July 1965
1.I spoke to Des FitzGerald about making a survey of the usefulness
of and deciding whether we should make any changes in
current practices. He requested that I advise him of the requirements
of the "seventh floor" and then ask him to survey the DD/P and to recom-
mend a procedure which would meet the needs of the DD/P as well as
the seventh floor. I undertook to do this and have asked Hank Knoche
to are something for me to send to Des. I told Des also that
pre
had requested an appointment with me to discuss management of
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the Clandestine Services and that I would be happy to do so but wanted
to make sure that he knew about it. He said that he had requested
to talk with me about this. I gather that it all hinges around the C an-
destine Services Personnel Division which is now on the T/O of the
Office of Personnel but which devotes a substantial part if not most of
its effort to the support of the Clandestine Services Career Service
Panels.
2. The Director telephoned to say that Congressman George Miller,
Chairman of the House Space and Astronautics Committee, wanted to be
briefed on Soviet space activities at 0930 hours on Monday, 26 July. I
called Bud Wheelon and Larry Houston, and the briefing has been laid
on. Carl Duckett will make the presentation.
3. Bud Wheelon requested an audience with the Director and me
to protest placing of OXCART money in our lower priority
items submitted to the Bureau of the Budget and also to protest a dis-
proportionate percentage allocation to the DD/S&T. I explained to the
Director exactly how this lower priority figure was arrived at and
reiterated my position that (a) OXCART had never been operational,
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an c the U. S. Govern-
ment is not going to let OXCART go down the drain. The question,
then, is whether we are willing to pay Ito have the privilege 25X1
of keeping OXCART in CIA at the possible expense of eliminating
something I also said that 25X1
I thougl(this submission to the Bureau didn't mean very much inasmuch
as OXCART will be run by CIA or the Department of Defense depending
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on how the whole NRO matter finally comes out. In any case, the U. S.
Government is not going to lose it. The Director supported my position
fully. I also explained to the Director and Bud that we could not accom -
plish an exercise of this kind by allocating the same percentage cuts to
each Directorate and, in fact, our whole task would be much simpler if
the Deputy Directors would do a better job in identifying their real low
priority programsin lieu of submitting to us the "shutting off the water
in the Directorzs toilet" type of items. The Director and I assured Bud
that there was nothing final about this and that there would be many
adjustments between now and the time the budget is actually submitted
in September. Bud came back to my office with me to say that he hoped
he hadnTt offended me in any way. I assured him that he had not, but
also emphasized that he would be wise to take a hard look at some of
the things he was doing in our budget exercise. I identified one or two
for him which in my book are of much lower priority than those which
his Directorate submitted.
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5. I talked with
about the following:
a. We discussed the audit report of the mess fund, and I told
him to insure that an appropriate reply was prepared. He assured
me that the charge of seventy-some guests in one day to the mess
fund was an error and that the mess was actually reimbursed for
this. I also emphasized to him the necessity of having all the
employees that work there security-cleared and that their status
should be kept current.
b. I talked with Dave about the number of newspapers and
periodicals being received in the Office of the Director and asked
him to prepare a brief memorandum to the various people who
receive them so that we can decide whether they are really neces-
sary.
c. In reviewing the Office of the Director's budget with Dave
I pointed out several places where I thought we could save some
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money, the most significant of which is the budgeted 25X1
for DCI travel on the assumption that he would take a chartered
Air Force plane for his entire trip
a. A contingency plan. We were asked to submit by Monday,
26 July, a contingency plan saying what we could do if we should
have to forego a supplemental request.
.
John Clarke prepared a detailed memorandum for the record of this
meeting. The subjects discussed, however, were as follows:
b. A supplemental request. If we should have a su plemental
the Bureau of the Budget is willing to go forward with
They do not wish to go forward at this time with Radio China, and
they do not wish to put in a
c. Radio China. They want to defer a final decision on this
until the Department of State, USIA, and CIA have made a joint
study of the whole problem and decided just what areas would be
handled by las opposed to the Voice of Amer-
t9 -A e DrrecJar &rra~ oC
6. I spent most of the afternoon he Dir tor, John Bross, tr 4Vd
Colby, John Clarke, and talking about the budget
d. Manpower controls. The Bureau of the Budget will insist
that we comply with the spirit of their manpower control program.
However, Mr. Staats, the Deputy Director of the Bureau, volun-
teered that they were well pleased with our manpower control
program and in fact thought that it was one of the best they had
seen.
e. In our budget submission the Bureau agrees that Vietnam
makes this a little different world than it was when they prescribed
that we should assume that international tensions would not increase.
However, they do have some questions about the balance of our bud-
get. They have made an analysis which I assume we will see and
which indicates that we are not spending our money in the right
areas insofar as they are concerned. We agreed, of course, to
review this with them.
f. Low priority items. They think that some of the low priority
items which we submitted in our lowest 10 percent are really quite
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lop,
high priorities and would hope that these would be re-examined
before our budget submission.
g. Photo interpretation. They are going to address a letter
to the Secretary of Defense and the Director of Central Intelli-
gence asking that a joint study group be set up to look into this
whole problem.
h. The consolidated cryptologic program. They understand
that the Director is looking into this entire program.
i. The increase in Department of Defense clandestine collec-
tion. The Director requested that he not be asked to look into
this but urged Mr. Schultze to talk with Clark Clifford, the Chair-
man of the President's Foreign Intelligence Advisory Board. Mr.
Schultze said that he would do this but that he might be back to
ask for Admiral Raborn's assistance and guidance at some later
date.
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