STATEMENT BY THE PRESIDENT TO THE CABINET ON THE BUDGETARY SITUATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01048A001500110017-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 27, 2016
• Document Release Date: December 28, 2012
• Sequence Number: 17
• Publication Date: June 21, 1965
• Content Type: STATEMENT

Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2013/01/02 : CIA-RDP80M01048A001500110017-8
A:
CENTRAL INTELLIGENCE AGENCY
EXECU
TIVE'.MEMORANDUM
-
OFFICE OF lItt, DIRECTOR
TO:
Deputy Director (Plans)
Deputy Director (Intelligence)
Deputy Director (Science & Technology)
Deputy Director (Support)
CC556ffilitrX D/NIPE
Inspector General
General Counsel
Assistant Director for National Estimates
Membee of
Plonuing Group
A .
At. Yu,kt_at,__i
EXECUTIVE MEMORANDUM No
DATE 21 _Tune 1965
ROOM NO.
Distribution:
O&13 - As above
1 - DCI
1 DDCI
EnDir
1-ER
This memorandum 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.
ADM INT ST LA 'I 1.
(CLASSIFICATION)
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NiLr GROUP I
acluded front automatic
non:Mina ond
declassification
STAT
STAT
STAT
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n
c".?
MEMORIPbUM FOR: xecutive Direct?ID
The Director brought the attached back from
a Cabinet meeting on 18 June. He asks that
it be read and studied carefully. He under-
stands McGeorge Bundy is to be told about
specific actions.
PAW" /641.4 W. Elder
giria# " afci
44/jA\ t-red .
.14 /90t-er til?"1-719 J,441.4)e 65
I (DATE)
Alirnt,
FORM NO. 10 I REPLACES FORM 10.101
1 AUG 54 WHICH MAY BE USED.
(47)
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Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2013/01/02 : CIA-RDP80M01048A001500110017-8
Washington, ). C.
June 13, 1955
STATEMENT 3Y TM ?RESIDENT
To The Cabinet
On the Budgetary W.tuation
Lii?7?
'fiae-h of you will be meeting shertly with the Budget Weeector
Of your agency's 1957 budget plans, so want to say a few words
about ene budgetary problems in general.
When .:3...7st discussed the budget preview with you on
May
,3 that we had to make a major effort in two direetionir
r?irst, imaginative new ideas and programs, and
eeond, hard-hitting, tough reforms in existing
programs.
Tvf, 3udget Director tells me that in general there has seen
no deartt, of new and expensive ideas. 7CTI fact, the Budget Bureau
estima-eee that the costs of the program goals and objectives which
all of oea, 'reoie just submitted carnet conceivably be fitted ieto
a reaeneeble budget total in fiscal 957. The excess cost o: your
trograle eubmiss;ons over any kind o- realistec budget tota abcIt
twlee wht- it wee at this stage o budget-making :,ast year.
3urig,s,t eut ays will rise sharply from a number of causes,
? ';he second-year cots of this year's new
legislation
the added costs o serving a growing popula-
Aaion, and
? pay ncreases
moreover, the budgetary leeway which we have enjoyed n the
last few years ifrom
declining defense expendj,tures, and
.large increases in financial asset sales
mai, no ea with s in 1957.
me repeat that the answer to this problem does not lie
in the c1.1't*cn of declaring a mcratorium on new programs cr pro-
gram
that way lies stagnation.
etill heve a long way to gc to achieve the Great Socety.
Mere a.rf.) still unmet needs for whieh. we must design imaginatve
new programs.
MORE
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Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2013/01/02 : CIA-RDP80M01048A001500110017-8
Bee: car.nci simply add the coees o: these programs on top
of everythinl we are already doing. 'Ke have to carry forward Vee
second pare. of my prescription. We have to make room for the new
ideas by
? a tough and hard-heeded weighing of priorities
among existing programs -- weeding out the
obsolete and the lower priority activities
? a thorough and continuing search for more
eZ-fficient means of carrying out on-going
activieies.
The 'Budget irector tells me that while there have been some
improvements in this regard, the preview submissions still do not
full reenect the kind of hard choices which we are going to have
to make.
Over the next several months, each of
to make these choices one way or the cther -
And they ,f,ri.11 have to be made expeditiously
bud,gat cvc e.
you is going to have
- they cannot be avoided_
as we move through the
In '.-ne longer run we are going to have to equip ourselves to
make these choices in the most effectjqe way. You simply cannot
conduct i=he vigorous and painstakinc; program analysis and weighing
of pricreies d14rina the one month ?r3cr to the budget preview
exercise or dur_tng the end-of-the-year: budget season.
Pragram review is a year-round affair.
F -thermore, it needs the continuing attention of a high-
caliber cram and management evaluation staff, reporting to the
top off :is in the Department.
Al7. ef yo%1 are going to have to make hard choices. You used
the best analysis ifou can get in orde.r to make them wisely.
.eece eaen of you to review the adequacy of your arrang-
71ents for central program and management analysis to make sure
that yo are in a position to conduct an intensive evaluation of
Departmental programs on a year-round basis.
One '2,-arther point in this regard, Starting immediately, the
Budget nu: au will be working with a selected number of agencies
and bureaus throughout the Government to establish, on a formal
oasis
? program and
? cost effectiveness analyses in depth.
These analyses have paid great dividends where they have been
adopte,',,
aek ea.:ea olf you who are involved to give your fullest co-
operation In ,7,his effort,
believe it will pay off hamdsomely.
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