CABINET MEETING ON 1964 BUDGET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01048A001500100043-0
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 4
• Document Creation Date: December 27, 2016
• Document Release Date: December 27, 2012
• Sequence Number: 43
• Publication Date: October 23, 1962
• Content Type: MEMO

Declassified
in Part - Sanitized Copy Approved for Release @ 50-Yr2012/12/28: CIA-RDP80MO1048AO01500100043-0
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(CLASSIFICATION)
CENTRAL INTELLIGENCE AGENCY
EXECUTIVE MEMORANDUM
OFFICE OF THE DIRECTOR
MEMORANDUM FOR:
DEPUTY DIRECTOR (PLANS)
DEPUTY DIRECTOR (INTELLIGENCE)
DEPUTY DIRECTOR (RESEARCH)
DEPUTY DIRECTOR (SUPPORT)
COMPTROLLER
INSPECTOR GENERAL
GENERAL COUNSEL
ASSISTANT DIRECTOR
FOR NATIONAL ESTIMATES
Addressees
1 - ER. via DCI, DDCI 1 - ExDir w/Compt. memo
w/CThiajttom 1l&n contains information for the addressees. Ad-
dressees may give this memorandum additional circulation within
their components as required. All copies should be destroyed not
filed, upon completion of circulation. A master file will be kept in
the Executive Director's Office and will be available upon request.
t=om a - ~
(CLASSIFICATION)
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2012/12/28 : CIA-RDP80MO1048AO01500100043-0
 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2012/12/28 : CIA-RDP80M01048A001500100043-0
Y - _
MEMORANDUM FOR: Mr. Walter N. Elder
1. Bob Amory passed on the annexed memorandum from
the Director, Bureau of the Budget, concerning a Cabinet meeting
held on October 18th. The meeting was concerned with measures
to reduce the 1964 budget. From the memorandum, it would appear
that instructions will be issued cutting every Agency below the
planning ft res established last summer. In the case of the Agency,
this means or non-NRO activities of the Agency.
So far, there has been no formal approach to the Agency on this
subject.
2. The fact that the DCI was not invited to this Cabinet
meeting was apparently an oversight for which the Director, Bureau
of the Budget is most apologetic.
JOHN A. BROSS
Comptroller
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UNITED STATES GO( _LNMEINT Z- of the Pre den -vt
Exd. ie O
Memorandum
TO ?:vision Chiefs
FROM The Director ignud) D. E. Ad
SUBJECT: Cabinet Meeting on 1964 Budget
,
Bureau of the "Bu get
October 18, 1962
:o `_'ar as we can tell, the Cabinet meeting this morning accomplisned the
purpose we intended--namely, to inform the Cabinet officers and agency
heads of the seriousness with which the President regards the budget
instructions he has given us for this fall's review period. The follow-
ing points were stressed.
That the President understands that his instructions require cuts
in programs to which the Administration has been committed and legislative
recommendations it has previously put forward.
. That the President's instructions will require cutting eve--y agency
below the planning figures established last summer. (The illustrations
used were that the Agriculture budget might need to be cut $100 - $200
million below the Budget Bureau's planning figure, and the HEW budget might'
need to be cut $200 - $400 million below the Budget Bureau's planning figure).
. That we do not propose to lay down arbitrary constraints such as a
"no new starts" policy. Instead, we believe the objective of both the
Bureau and the agencies should be to apply sensible priorities in reducing
the budget figures. It was made plain that there would obviously be fewer
new starts, but some new starts might have high enough priority to be
retained in the lower budget totals.
. That the Bureau and the agencies will have to consider 1963 actions
which might have a 1964 effect. (Illustrations used were the Food Stamp
Program and--in private conversation with Celebrezze--the NIH Program).
. That Cabinet officers and agency heads should beware of making
specific commitments to figures regarding legislation, programs, or projects,
in makin,- public statements during the fall.
That legislative proposals should all be reviewed and reconsidered.
(Illustrations used were legislation relating to recreational]sind purchases,
to urban mass transit, and to aid to education).
. Finally, and this was stressed by both the President and by me, that
we should hit particularly hard at increases in the number of employees.
Recognizing that personnel costs might not loom large in dollar terms, the
degree to which the budget includes increases in numbers of employees will
plainly have a good deal to do with the extent to which is regarded by
Ccngressional and other observers as a tight budget.
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staffs, what reductions might be appropriate in the budgets they ,are
submitting.
that we would review these budgets with the purpose of arriving'at,,
suggestions for possible reductions. Simultaneously, we asked the
Cabinet officers and agency heads to consider, along with their
With respect to procedure, we suggested that the budgets now bel g
)spared should be submitted to the Bureau without further delay,
No specific arrangement was suggested as to the time at which we would
be in touch with agency staffs and agency heads. I suggest that each
Division Chief establish his own time-table in this regard. Any of
you who now wish to talk with the top budget people in different agencies
should proceed to do so. Others of you may prefer to wait until you
have had a further chance to analyze budgets--or even until after the
Director's Review session.
Both Mr. Staats and I attended the Cabinet meeting and are available
for further clarification if any is desired*
cc: Mr. Amory / Mr. Armstrong Mr. Staats
Mr. Broadbent Mr. Bowman Mr. Carey
Mr. Schwartz Mr. Hughes Mr. Hansen
Mr. Sutton Mr. McCandless Mr. Schultze
Mr. Veatch Mr. Seidman
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2012/12/28 : CIA-RDP80M01048A001500100043-0