LEGISLATIVE MATTERS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R003100230002-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 14, 2016
• Document Release Date: May 6, 2003
• Sequence Number: 2
• Publication Date: November 29, 1963
• Content Type: MF

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MEMORANDUM FOR: Director of Central Intelligence
SUBJECT: Legislative Matters
1. This memorandum is for the information of the Director
of Central Intelligence.
2. How the Agency is viewed by the Congress does not derive
solely from the normal procedures concerned with proposed legislation.
The most significant factors are the appearances of the Director before
the CIA Subcommittees and the DCI intelligence briefings of other
Committees. However, there are other day to day actions which are
important and these are, in many ways, interrelated with the legislative
processes of the Congress and the needs of individual members.
3. Committee Appearances. As a matter of policy, the CIA
Subcommittee of House Armed Services has attempted to meet monthly
with the Director. The CIA Subcommittee of House Appropriations
meets on a more irregular basis. Senator Russell has followed the
practice of holding joint meetings of the CIA Subcommittees of Senate
Armed Services and Appropriations of which there have been four this
year. However, there have been substantive intelligence briefings of
many other Committees. The number of all briefings during 1963
totals thirty. The Agency consistently briefs the Joint Committee on
Atomic Energy semiannually. During the year there have been three
briefings each of the Senate Foreign Relations and House Foreign Affairs
Committees. The Agency has briefed the Senate Preparedness Investi-
gating Subcommittee on three occasions. Other briefings have included
the Mahon Subcommittee on Defense Appropriations and the House Space
Committee. This general pattern of briefing of other committees has
been followed for some years.
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4. Other Committee Contacts. The Agency has rendered con-
siderable assistance to other Committees. For example, the House
Government Operations Committee last year conducted a Government.-
wide survey of use of the polygraph. Through extensive discussion both
with the Chairman and staff members, the Agency's response avoided
classified matters and yet satisfied the needs of the Committee whereas
the responses of both Defense Department and State Department as
submitted were rejected for providing insufficient information. Also,
the Agency has rendered material assistance to the Joint Economic
Committee over the years on a non-attributable basis in the Committee's
preparation of "Comparison of U.S. and Soviet Economies." The two
Jackson Subcommittees on Policy Machinery and National Security
Staffing have issued reports on Policy Machinery and National Security
Staffing for both the Soviet Union and Communist China. These studies
have been acclaimed by the academic community as being the finest
pieces of work in these fields in many a year and were, in fact, produced
by the Agency on a non-attributable basis. The interests of the United
States and the Agency have been served by controlled surfacing of
defectors with the cooperation of the I-louse Committee on Un-American
Activities and the Senate Internal Security Subcommittee. In 1961,
Mr. Helms testified before the latter Subcommittee on the subject of
"Communist Forgeries." This was the first time a Senate Document
was authorized to be printed in a foreign language (in this case three
different languages) and received wide distribution throughout the world.
5. Individual Member Contacts. There were several hundred
referrals of individuals for employment during the last year. Approxi-
mately an equal number of reports were requested which concern
constituent problems dealing with substantive matters. Unlike most
other departments which deal with requests for reports on constituent
inquiries by routine correspondence, the Agency in most cases is unable
to provide reports on an unclassified basis. Consequently, personal
contact with the member is necessary in order to avoid the impression
of a negative attitude by the Agency toward the member's needs. A
large number of inquiries are made by members on an oral basis. In
these cases, as well as in the case of written requests, the opportunity
is taken to develop with the member the true role of the Agency in the
Executive structure and, if necessary, to explain carefully the reasons
why we are unable to provide reports on sensitive matters. On other
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occasions, the Agency has actively sought the assistance of members
in connection with classified situations where the member is otherwise
involved. An example of this would be the assistance provided both by
Senator Smathers and Representative Fascell in connection with CIA use,
under cover, of Another
example was ctive assistance over a period of time in
connection with h.o
became mentally disturbed and conducted a lengthy campaign of
correspondence to half of the Senate membership and an equal number
of Representatives. Personal contacts involved in the above type of
situation totaled over 1100 for the first eleven months of 1963. Informal
Congressional groups have been invited for breakfast or luncheon
meetings in order to provide them with an understanding of the Agency
mission. On a selected basis, members have visited with Agency
personnel at overseas stations. As examples i Stennis, Mahon, Dodd
(and President Johnson himself).
6. Legislation.
a. The Agency monitors the 20, 000 plus bills introduced
into each Congress taking necessary action where (inadvertently
in most cases) provisions in a bill would adversely affect CIA
interests. Various Committees routinely request written reports
from the Agency on legislative proposals.
b. The Early Retirement bill (H.R. 8427) sponsored by
the Agency was the subject of hearings and favorable House floor
action this year. The confidence of Representative Rivers (and
his Subcommittee) in the Agency found expression in the fact that
the final Committee report on this bill and all the floor speeches
supporting the bill were prepared by the Agency. This bill is
now pending in Senate Armed Services Committee.
c. Over the years, the Congress has acted favorably on
a number of Agency sponsored private bills, mainly in the field of
permitting entry of aliens or waiving the ten year naturalization
waiting period required for former members of the Communist
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Party. The Agency has enjoyed the fullest cooperation on the
part of the Immigration and Naturalization Subcommittees of
both the House and the Senate. Further, a high degree of
security has consistently obtained.
d. The Morrison Federal Pay bill, H.R. 8986, reported
favorably by the House Post Office and Civil Service Committee,
inadvertently placed the DCI at Level III in the Executive Pay
structure whereas the Administration's bills (Udall and Broyhill)
included the DCI at Level II. Mr. Morrison has strongly stated
his view that this was a mistake and committed himself to submit
a Committee amendment to correct it when the bill comes up for
floor action.
e. There is renewed interest in Congress in the fact
that it is not a Federal offense to murder the President and
other high officials of the U. S. Government. It is believed that
there are most cogent reasons why the murder of the DCI should
also be made a Federal crime. It is difficult to foresee a proper
and secure investigation by officials of some states of the
possible assassination of the DCI. (A more detailed examination
of this point is being prepared and will be forwarded in a few
days.)
7. Twenty measures have been introduced in the 88th Congress
proposing a Joint Committee on Intelligence which number is about
the same as for the last several Congresses. Most of the current
proponents are repeaters. With the expressed opposition of such leaders
as Vinson, Russell and McCormack, it is doubtful that any action will
be forthcoming on the current proposals.
. Warner
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Nov 196
MEMORANDUM FOR: Director of Central Intelligence
SUBJECT: Legal Role in Intelligence
1, This memorandum is for the information of the Director
of Central Intelligence.
2. The intelligence activities of the Central Intelligence
Agency and its covert operations present many truly unique legal
problems. The nature of these problems runs the entire gamut
of the private practice of law from admiralty and international law
to taxes and insurance. However, these specialties of the law in
CIA all have running through them the novel and peculiar thread of
security not present elsewhere.
3, The General Counsel has been assigned full supervisory
responsibility over such matters as liquidation of indebtedness of
large amounts by agents involved in proprietary activities for the
Agency. The General Counsel has also had full supervisory responsibilities
for the negotiations of the release of Francis Powers and thereafter the
intensive investigation and examination of all facets of this incident.
Another major project assigned to the Office of General Counsel was
the supervision of all aspects of the negotiations by James Donovan for
release of the Cuban invasion brigade Feld 25X1
in Cuba.
4. In carrying out these unique responsibilities the General
Counsel and members of his office maintain a wide acquaintanceship
throughout the Executive Branch. In many cases this liaison
relationship is in fact an intensive cooperative arrangement. Examples
of departments involved include Justice in almost every component
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including Immigration and Naturalization and the United States
Attorneys throughout the country; Treasury including Internal
Revenue Service, Customs, Narcotics, and Coast Guard; and
various echelons of departments such as Defense and State,
5. In general categories with appropriate examples the
following illustrate the extent of the Officets activities,
International Law
Space Law
In order to properly put into context technical progress
in space vehicles, a constant review of Soviet legal positions
on the law of outer space is essential. The General Counsel
has responsibility to assure that no international agreements
are reached which would interfere with the United States
ability to conduct reconnaissance through satellites.
Protection of Intelligence Sources and Methods
For many years it has been recognized that the espionage
laws and other criminal laws designed to protect classified
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information are inadequate because of legal technicalities.
For some time this Office has been studying the problem
and has advanced a proposal to USIB designed eventually to
become a specific legislative proposal to protect intelligence
information, thus putting teeth into the Directorts legislative
responsibility for protecting intelligence sources and methods.
For many years this Office has maintained an extremely
close relationship with the Internal Revenue Service, and
methods have been devised for reporting and payment of
taxes while maintaining security of Agency operations- With
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In the maintenance of an effective work force the
Director has the authority to terminate the employment
of officials and employees in his discretion in the interests
of the United States. Care must be taken when this authority
is exercised so that it is consistent with the large field of
law which has been built up around the concept that an
agencyts regulations in this field have the status of law.
The Agency has been a defendant in three cases over the
past several years involving former employees suing for
damages or reinstatement because of an allegation that
the employee was terminated wrongfully and without regard
to Agency regulations. The Government was successful in
the defense of these suits.
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6. In addition to the above examples the Office handles on a.
regular basis problems in procurement, interpretations of Agency
regulations, and payment of claims. Because the Agency's functions
are not under the scrutiny of the General Accounting Office, this
Office acts in the capacity of the Comptroller General by issuing
opinions regarding the proper expenditure of Confidential Funds.
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~S~~ WARNER
ting C{eneral Counsel
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SUBJECT: Audit of Central Intelligence Agency
1. In order to assure that funds appropriated to the
Central Intelligence Agency are used for proper purposes and
full accountings are rendered therefor, Agency regulations
delineate specific responsibilities and procedures to be
observed in the allocation, application, and accounting of
official funds. In addition to these operating controls,
the Agency has provided for audit of all activities and
expenditures. The objective of audit is to determine that
controls and procedures are being applied effectively to
safeguard resources and assure their use only for authorized
purposes and to determine whether activities are conducted
in conformance with policy determinations and directives.
Audits by the Agency Audit Staff comprise the final audit of
Agency activities since pursuant to agreement between the
Comptroller General, the Chairman, House Committee on Armed
Services, and the Director, CIA, the General Accounting Office
withdrew from audit of the Agency in mid 1962. (Tab A)
2. All activities and installations, overseas as well as
domestic, are scheduled for audit annually and at more frequent
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intervals where warranted by circumstances. Audits are con-
ducted, at the site of operations by auditors assigned to
Headquarters or one of four overseas Audit Staff Offices.
The Agency
Audit Staff furnishes audit instructions for the audit firm
and reports of the results of the audit are furnished the
Audit Staff for review and follow-up on Agency action. Examples
of such audit arrangements are
4. All Agency audit reports are issued by the Audit Staff
to the operating component concerned through the responsible
Deputy Director. Recommendations for action require reply.
Follow-up is maintained to assure appropriate action.
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Audit Relationships - Central Intelligence
Agency .- General Accounting office
1. In mid 1962, the Comptroller General advised Chairman
Carl Vinson of the House Armed Services Committee that he had
concluded that GAO should discontinue its limited audit of
OGC Central Intelligence Agency.
2. The decision that the GAO should discontinue its
FOIAB5 limited audit was agreed to by Chairman Vinson and the Director,
CIA. The GAO auditors were withdrawn from Agency audit.
5. In later years the General Accounting Office has
developed and generally applied throughout the Government a
type of audit referred to as a comprehensive audit. The pur-
pose of a comprehensive audit is to review and evaluate the
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manner in which an Agency activity carries out its financial
responsibilities. This review includes: a determination
that the expenditure of funds and the utilization of property
and personnel are in the furtherance only of authorized pro-
grams or activities and that the programs and activities are
conducted in an effective, efficient, and economical manner;
an examination of Organization structure and a review of
Agency policies for conformance with legislative intent and
applicability to Agency activities; and includes an examina-
tion of Agency practices and procedures in carrying out such
policies.
6. In CIA, the General Accounting Office performed a
voucher audit on vouchered funds only. This type of audit
is generally limited to an examination of expenditure and
collection vouchers and related documents to determine
whether expenditures are made legally and solely for the
objects for which appropriations are made.
7. In 1959, the GAO raised with the CIA Subcommittee
of the House Committee on Armed Services the desirability of
an expanded audit of Agency activities. After considerable
negotiation, letters were exchanged between the DCI and
Comptroller General establishing a framework for a rather
limited expansion of GAO audit. Subsequently in a report
dated 16 May 1961, GAO concluded that as of that date the
GAO did "not have sufficient access to make comprehensive
reviews on a continuing basis that would be productive of
evaluations helpful to the Congress.. .we plan to discontinue
our audit of CIA activities." Both the DCI and Mr. Vinson,
Chairman of the House Committee on Armed Services requested
the Comptroller General to continue to audit Agency affairs
on a limited basis.
8. Throughout negotiations in this matter, the Agency
has held the position that there would be no objection to a
comprehensive audit of vouchered activities if they could be
isolated from confidential, extraordinary or emergency activi-
ties and considered independently. However, the two are
inextricably enmeshed so that no thorough comprehensive audit
of vouchered expenditures could be made which would not of
necessity include consideration of sensitive intelligence and
cold war activities.
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9. GAO recognition and acceptance of the limitations on OGC
outside audit of Agency affairs is reflected in a letter dated
23 May 1961 from the Comptroller General to Chairman Vinson, FOIAB5
House Committee on Armed Services as follows:
10. The need for and concept of limiting access for out-
side audit to nonsensitive material was stressed by the Director
in his letter of 30 June 1959 (Attachment 1) to The President
as follows:
"... if there is a broadening of the General Account-
ing Office's review into a comprehensive audit on the
vouchered side, we will encounter serious problems as
such an examination would necessarily extend into the
field of intelligence sources and methods unless its
scope were limited at our direction."
'r ... I would suggest that I discuss the matter... to
determine whether a form of audit of so-called
vouchered funds,., can be agreed upon without impair-
ing the powers and authorities with regard to expendi-
tures for confidential purposes which we have found
essential to our operations."
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C -O-P -Y CONFIDENTIAL
The President
The White House
Washington 25, D. C.
Dear Mr. President:
I have received a letter dated June 18, 1959, from
Representative Paul J. Kilday, Chairman of the CIA Subcom-
mittee of the House Armed Services Committee, concerning
the audit of the so-called vouchered funds of this Agency as
distinguished from the funds expended for highly classified
confidential purposes. With this letter Mr. Kilday sent me
a communication to him from the Comptroller General on the
same subject.
The Comptroller General notes that since the enactment
of Central Intelligence Agency legislation the General Account-
ing Office has generally broadened the type of audit made of
activities of most Government agencies but that with the Central
Intelligence Agency it has continued to make only a voucher
audit of vouchered funds and no audit of confidential funds.
He, therefore, recommends ". . . a change in the scope of our
audit work at CIA. . .'t by broadening the General Accounting
Officers audit while recognizing that "Any broadening of our OGC
audit activities should not include an evaluation of the
intelligence activities of the Agency." Mr. Kilday, speaking
for his Subcommittee in his letter of June 18th, recommends
that the Agency consider with the Comptroller General "a F0IAB5
broader type of audit than is presently accomplished."
CONFIDENTIAL C -O-P -Y
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C ONF IDENT IAL
OGC
FOIAB5
I would be pleased to continue with these procedures;
however, if there is a broadening of the General Accounting
Officers review into a comprehensive audit of the vouchered
side, we will encounter serious problems as such an examina-
tion would necessarily extend into the field of intelligence
sources and methods unless its scope were limited at our
direction.
The Central Intelligence Agency is a particularly sensi-
tive arm of the executive branch of the Government in the
general field of foreign relations, and I would not wish its
usefulness to be impaired in any way by accepting from a body
responsible to the legislative branch or from the legislative
branch a measure of control or supervision detrimental to its
effectivness. Accordingly, I felt I should submit these facts
to you. At the same time, I would suggest that I discuss the
matter with the Comptroller General, Mr. Campbell, as well as
Mr. Kilday, if you approve, to determine whether a form of
audit of so-called vouchered funds satisfactory to the General
Accounting office and to Mr. Kilday and his Subcommittee can
be agreed upon without impairing the powers and authorities
with regard to expenditures for confidential purposes which we
have found essential to our operations.
CONFIDENTIAL C-O--P -Y
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C-O-P-Y CONFIDENTIAL
If you agree, I shall proceed to have such conversations
and I shall report the results to you without reaching any
commitment until I have obtained your concurrence.
Sincerely,
/s/
Allen W. Dulles
Director
CONFIDENTIAL
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