CONFLICTS OF INTEREST COMPLIANCE AND SECURITY CLEARANCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M00165A001300020003-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 15, 2016
• Document Release Date: February 11, 2004
• Sequence Number: 3
• Publication Date: May 16, 1977
• Content Type: MF

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rRegt
OGC 77-3128
16 May 1977
MEMORANDUM FOR: Director of Central Intelligence
VIA
:
FROM
:
SUBJECT
:
REFERENCE
:
Deputy Director of Central Intelligence
Anthony A. Lapham
General Counsel
"4" 74,44:0t4.?
c72 atell 7 .7
Conflicts of Interest Compliance and Security
Clearance
Letter from Robert Lipshutz dated 29 April 1977
1. Action Requested: None. You have inquired as to the effect of
the referenced correspondence and this memorandum is for your informa-
tion in that regard.
2. Background: The referenced correspondence was issued by the
Office of the Counsel to the President for the purpose of reducing the number
of prospective appointees who are subject to review by that office in regard
to actual or apparent conflicts of interest. The White House will retain this
responsibility for Presidential appointees, and appointees to the position of
General Counsel. In regard to the Agency, this means that the financial
interests of appointees to the positions of Director and Deputy Director of
Central Intelligence, as well as the General Counsel, would require review
by the Office of the Counsel to the President. Our present practice has been
to submit the requisite information for the Director and Deputy Director
positions. Additionally subjecting the position of General Counsel to this
requirement 3.vill present no real difficulties and will be done in the future.
3. The remainder of the correspondence serves to delegate to the
various agencies the responsibility for applying the Administration's conflict
of interest guidelines to prospective appointees to Non-Career Executive
Appointee (NEA) positions and political appointee positions designated in
Schedule C of the Civil Service Commission excepted service. These pro-
spective appointees at the levels of GS-16 and above, including Executive
Salary Schedule positions, must be reviewed for conflicting interests by the
General Counsels of the agencies involved.
5.144 luit me.
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4. This division of labor does not conform to the personnel system of
Are :Agency which, excluding the Director and Deputy Director of Central
Intelligenc*e, is populated entirely by non-career appointees within Schedule
A of the Civil Service Commission excepted service. Patrick Apodaca of the
Office of the Counsel to the President has advised my office, accordingly, that
the referenced correspondence has no application to this Agency and that we
will be advised when this difficulty, which already is under consideration in
the context of the National Security Council Staff, has been resolved. In the
interim, we should continue to operate according to Executive Order 11222 and
our existing conflict of interest regulations which require initial and annual
reporting of financial interests by individuals who are compensated at a level
of the Federal Executive Salary Schedule and personnel in grades GS-13 and
above who occupy positions and perform duties of a nature which require
the reporting of financial interests in order to avoid the possibility of actual
or apparent conflicts of interest.
Anthony A. Lapharn
STAT
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THE WHITE HOUSE
WASH I NGTO N
April 29, 1977.
MEMORANDUM FOR: DEPARTMENT AND AGENCY HEADS
FROM: Robert Lipshutz
Counsel to the Preside
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SUBJECT: Conflicts of Interest Compliance and
Security Clearance
Hamilton Jordan and I have decided that it shall be the policy of the
Office of Counsel to the President to review conflicts of interest and
security clearance reports only for prospective Presidential appointees
(prospective appointees to a position designated as "PAS" or "PA") and
for prospective appointees to the position of General Counsel to a
department or an agency. Prospective appointments to NEA and Schedule C
slots shall not otherwise be reviewed by White House Counsel.
Under the Administration's policy, all prospective appointees to non-
career positions at the GS-16 level and above must be cleared of po-
tential conflicts of interest. The General Counsel of the employing
department or agency should therefore ensure that unreviewed prospective
appointments in this category comply with the Administration's conflicts
of interest requirements. General Counsels should consult with White
House Counsel for general guidance on conducting their conflicts review
and in the event a difficult question concerning a potential conflict
of interest arises. Also, the General Counsels should assume responsi-
bility for initiating and reviewing appropriate background investigations
on any prospective non-career appointments which fall outside the scope
of White House Counsel's review.
Summary memoranda and biographical sketches on all prospective appointees
to Executive Level positions (i.e., positions where compensation is at an
Executive Level rate) should continue to be submitted to Hamilton Jordan
for other appropriate clearances. Documents pertaining to conflicts of
interest compliance and security clearance should be included in the
nominee's submission package only if he or she would .be reviewed by White
House Counsel in accordance with the policy stated herein.
Further questions concerning conflicts of interest compliance and
security clearance should be addressed to Michael Cardozo (tel. [phone])
and Patrick Apodaca (tel. [phone]) respectively.
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