DRAFT MINUTES OF THE 24 JULY 1974 IRAC MEETING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01082A000200130003-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 15, 2016
• Document Release Date: March 31, 2004
• Sequence Number: 3
• Publication Date: July 24, 1974
• Content Type: MF

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24 July 1974
INTELLIGENCE RESOURCES ADVISORY COMMITTEE
MEMORANDUM FOR THE INTELLIGENCE RESOURCES ADVISORY
COMMITTEE
SUBJECT Draft Minutes of the 24 July 1974
IRAC Meeting
1. The attached draft minutes of the 24 July Intelligence Resources
Advisory Committee meeting are submitted herewith for IRAC considera-
tion.
IRAC ACTION REQUESTED
2. IRAC Members are requested to advise the Secretariat
by close of business 12 September of their approval or
comments on the attached minutes.
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INTELLIGENCE RESOURCES ADVISORY COMMITTEE
Minutes of
Eighth Meeting
Intelligence Resources Advisory Committee
DCI Conference Room (7D64)
Central Intelligence Agency, at 1400 hours, 24 July 1974
Director of Central Intelligence
Mr. W. E. Colby
Presiding
MEMBERS PRESENT
Mr. William McAfee, acting for Director of Intelligence and Research,
Department of State
Dr. Albert C. Hall, Assistant Secretary of Defense (Intelligence),
Department of Defense
Lieutenant General Vernon A, Walters, USA, Deputy Director of
Central Intelligence
Mr. B. A. Bridgewater, Jr. , Associate Director for National Security
and International, Affairs, Office of Management and Budget
OBSERVERS PRESENT
Mr. Richard Ober, acting for Deputy Assistant to the President for
NSC Planning
Vice Admiral Vincent P. de Poix, USN, Director, Defense Intelligence
Agency
Lieutenant General Lew Allen, Jr., USAF, Director, National
Security Agency
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Department of State
Mr. George C. Denney, Jr.
IRAC-M-8
24 July 1974
Office of the Assistant Secretary of Defense (Intelligence)
Mr. James L. Vance
Central Intelligence Agency
Mr. John D. Iams
Office of Management and Budget
Mr. James M. Frey
Mr. Arnold Donahue
Defense Intelligence Agency
National Security Agenc
Intelligence Community Staff
Lieutenant General Daniel O. Graham, USA
National Intelligence Officers
Mr. George A. Carver, Jr.
IRAC Working Group
*Part of Meeting
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24 July 1974
Intelligence Research and Development Council
Dr. Malcolm R. Currie, Chairman
Dr. Robert S. Cooper, Staff Associate
SIGINT Committee
IRAC Secretariat
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1. Budget Guidance
(USIB/IRAC-D-74. 2/6,
23 July 1974, Memorandum
for USIB and IRAC Principals)
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Z. Presentation on Intelligence
Research and Development
(IRAC-D-76.2/2, 22 July 1974,
Limited Distribution through
Restricted Channels)
Mr, Colby said he wished to start the regular agenda with
Dr. Currie's "Intelligence Research and Development Council Status
Report". He commented that from his point of view the report repre-
sented an excellent review on this subject.
Dr. Currie introduced his report indicating that one of its pur-
poses was to obtain the necessary feedback from the IRAC. He provided
a brief history of the Council noting that its membership was a significant
part of the success it has achieved. He was particularly interested in
having the Assistant Secretaries for Research and Development from the
three services as part of the membership because of the importance of
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bringing their expertise into the framework of intelligence. The results
have been encouraging. Dr. Currie explained that the objective of the
Council wa$ to address long-range (6 to 8 years) R&D problems of signi-
ficance. He believed it was not appropriate for the Council to become
involved in immediate R&D problems which involve resource allocation.
Before addressing the specific aspects of the report, Dr. Currie
commented that the members of the Council were impressed by the
tremendous bre .dtb and the diversity of intelligence and intelligence
related research and development. Looking to the future the Council
would address those areas considered most important. The Council
found that most of the R&D efforts under way are well thought out and
on track. Those which required adjustment were identified and corrected
by virtue of the membership, Recognizing that we are in an era of
resource constraint, he believed that the Council provides a timely
bridge across programs within the intelligence community.
Addressing his report, Dr. Currie highlighted the five specific
problems areas :
I. Processing and analysis of raw intelligence
data.
II. Coordination in the development of wide-
band data links,
III, Application of the Space Shuttle to intelli-
gence problems.
IV. New initiatives in mass memory technology.
V. Tactical and near-real-time use of intelli-
gence information.
During the discussion of these areas the IRAC agreed with the Chairman's
proposal to expand Item I. to include "presentation" of intelligence data
to accommodate the various needs of our Many consumers. Accordingly,
Item I. was amended to read "Processing, analysis and presentation of
intelligence data".
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With regard to Item II. , Dr. Currie said that in conjunction
with Dr. Hall they had initiated within DOD an embargo on develop-
ment of wideband links until a coordinated plan was prepared.
Dr. Currie stressed the need for imaginative thinking for the appli-
cation of the space shuttle to intelligence problems (Item III. ) and
the advantages of initiating planning early on. He also noted the
important role and impact of developing mass memory technology
(Item IV.) and the beneficial fall outs from this to the economy of the
U. S. Dr. Currie explained that the tactical needs examined under
Item V. were sparked by the Middle East crisis which raised several
questions regarding the dual role of some intelligence assets to
national and tactical requirements. He believed that aggressive
R&D could improve the interface between national and tactical systems.
Dr. Hall commented that he had discussed the problem of
using real-time intelligence data with the PFIAB and found the Board
very responsive. He said the PFIAB considered that this subject
needs further examination particularly in connection with ECCM.
Dr. Currie emphasized that whereas the mass memory problem
was basically a research subject, the tactical and near-real-time use
of intelligence would require management improvement. He said that
there were some possible cost trade-off between expensive national
systems and less expensive theater or area systems.
Noting that all within government were concerned about the
dollar constraints, he believed that DOD planning had recently
improved allowing for more realistic R&D programming in the out
years. He concluded by saying that the Council constituted a group
that was well situated to identify broad problem areas to assist the
IRAC.
The Chairman thanked Dr. Currie for a very serious and
excellent job noting that the Council had more than fulfilled the hope
of what it could achieve.
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The IRAC approved the Council's recommendations in the
report including that:
I. Information Processing R&D be considered
as a separate line in the intelligence budget by the IRAC in
its quarterly budget review. The Council is to provide
some concrete recommendations next Spring which will
call for R&D resource shifts in FY-76 which would aid in
breaking the information processing bottleneck.
H. IRAC assign the task of coordinating other
intelligence data link developments through the IR&D
Council.
III. The Council direct its activity toward the
goal of discovering new concepts for Space Shuttle utili-
zation for intelligence purposes in the 1980's.
IV. The Council review developments in mass
data storage R&D to determine if a long term program,
based within the national intelligence program, would be feasi-
ble and most likely to produce sizable gains in capability
and reduction in costs. The Council is authorized to
request ARPA to set up a study group whose purpose will
be to determine within six months what course of action
could best provide the intelligence community with a
basic new extension of this crucial technology for the
future.
V. The IR&D Council review all R&D programs
in the area of real-time intelligence for adequacy and di-
rection with the objective of recommending within one year
what changes in scope or emphasis may be required.
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3. Overview Presentation of FY 1976
National Foreign Intelligence
Program
(IRAC-D-74.2/5, 22 July 1974,
Limited Distribution through
Special Restricted Channels)
For the past five years the Program has been held essentially
level as a deliberate policy to wring out any "slack". This has been
accomplished; not only is there no remaining slack, there is no remain-
ing flexibility. Looked at in the context of the Federal Budget, the
Intelligence Community has been ahead of most of the Government in
achieving an austere program.
This austerity comes, however, at a time that leaves the
community particularly vulnerable. The combination of higher inflation
rates and the great stress on the national policy of reducing federal
expenditures could impact dangerously on the NFIP if its true financial
circumstance is not realized.
There is also a troublesome aspect concerning the composi-
tion of the NFIP over the next five years. In the past, the community
has been able to increase its productivity and thereby overcome real
resource reduction through investments in advanced technology. The
currently projected program does not contain this kind of investment,
which will make continued increases in productivity much more
difficult.
The problem will be most acute over the next two years.
After that time, if certain potential savings are actually realized
through the termination of selected programs, some flexibility can
be regained. This leads to the conclusion that the community should
begin now to pay greater attention to out-year planning (in addition
there will be a congressional requirement to present five year budget
request beginning in FY-77).
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The DCI commented that it was important to emphasize infla-
tionary impacts in order to make room for new initiatives. He pointed
out that one of the IRACs main tasks is to become knowledgeable of the
program issues and to provide advice on the NFIPR memorandum to
the President in November or December. At that time the programs
will have to be scrubbed down. Referring back to the President's letter,
Mr. Colby said it was important for the community to understand the
President's concern, as well as the impact of inflation, and possible
congressional cuts. At this point Mr. Colby presented a vu-graph
which he explained reflected the problem of putting off essential programs
to later years:
While some rule of reason must apply or life
will become too destabilized, the choice between the
new idea and perpetuation of the past must be taken
in favor of the former, even at the cost of some
disruption. This is especially true in intelligence,
which has the function of forward projection of infor-
mati on.
He said the real question is what are we going to eliminate. Can we reduce,
or eliminate, older programs to make room for essential new systems
such as the new photographic satellite system? If we are to get at these
problems overguidance may be preferable to underguidance in some cases.
He said the Perspectives should assist the program managers to focus on
new initiatives.
In this context, Mr. Colby stressed the importance of being imagi-
native regarding the uses of national assets to meet tactical requirements
and noted that considerable financial benefits can be achieved if the same
systems can serve both national and tactical requirements. He pointed
out the importance of obtaining the confidence of the theater commanders
in regard to their use of national assets.
Mr. Bridgewater said he concurred in the Chairman's comments
regarding national tactical interface. With regard to the resource
question, he commented that the intelligence community, through its
own initiative, was ahead of the rest of the government in holding down
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its budget. In regard to requirements he said that while he believed there
should be a clear understanding with regard to near- and long-time
requirements in relation to budgetary projections, he thought
had somewhat overstated the long-term problem. While there had been
inflationary pressures, only two quarters in the last 30 years had had
double digit inflation (12 and 10 percent) and that in the last quarter infla-
tion was running at 8 percent. We should plan on inflation, but not on the
basis of double digits. A more realistic figure would be somewhere
between 4 and 7 percent. Mr. Bridgewater cautioned against eliminating
programs which may be needed in the out years to accommodate current
budget constraints.
pointed out that his five-year projection FY 75-80
allowed for a 34 percent inflationary increase, and that between FY 71-75
there was a 14 percent inflationary increase. Inflation to date not with
standing it had been possible to increase capabilities because of improved
technology, but we cannot expect this to continue.
Dr. Hall did not believe that there was a serious intention in
Congress to reduce the intelligence budget by the amount cited in
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briefing. Mr. Colby said that in any event the amoun
of money indicated is such that the intelligence community would have
to make serious cuts in programs.
4. Presentation of FY 1976 Consolidated
Defense Intelligence Program
Dr. Hall advised that the CDIP review was a serious effort involving
the program manager, the services, and the DCI. The briefing to be
given today provided information as to where the program stands. Dr. Hall
said he would provide his own recommendations to the Secretary of Defense
and this would be followed by a reclama period. He said that while the
review, and briefing, points out some of the problem areas, overall., he
was pleased, because the program looked better than he had anticipated.
Dr. Hall introduced Mr. James Vance of his staff who provided a
detailed briefing on the CDIP Program. During Mr. Vance's briefing,
Mr. Colby said he was happy to see an enumeration of the programs which
had been discontinued. He said it was important to demonstrate that the
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Mr. Colby said it was not intended to protect national assets at the
expense of tactical resources. General Allen believed that the
distinction may have merit when presenting the budget to Congress,
but he was concerned that, as a consequence, management actions
would be taken to avoid the real problem. He said that national
and tactical intelligence should be viewed in a coherent way.
National requirements may also serve some tactical needs. Mr. Colby
agreed that the whole picture had to be presented at the same time and
that national /tactical collaboration should be pursued. He said that
retaining the confidence of the operational commanders was essential.
As an example of the lack of distinction he noted that the CDIP contains
many odds and ends of national /tactical resources.
Mr. Bridgewater expressed concern on the trend of the
discussion, He noted four areas had been addressed:
a. Inflation.
b. Longer-term problems and emphasis on the
out-years.
c. Comments on the importance of presentations
to Congress.
d. Various programs within Defense.
What had not been addressed is the fact that in recent years National
Security expenditures have dropped from 47 to 29 percent of the
national budget while HEW type spending is over 50 percent of the total
budget, and is going up at the rate of 13 to 14 percent per year. These
facts have severe long range implications for intelligence, especially
since HEW type expenditures are largely not controllable, but are locked
in and mandated by law. With the President's requirement for a balanced
budget, one must address that portion which is controllable, e. g. , DOD,
which includes intelligence. There are various ways one can address
this problem, but none provide much room for optimism:
a. Engage in deficit spending.
b. Increase taxes.
c. Seek to change legislative programs driving
large expenditures.
d. Cut defense and intelligence spending.
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Mr. Bridgewater stressed the dilemma, the fact that something has to
give, and that there are no easy ways out. He said we are committed
to a balanced budget, and suggested that all should be aware of the
national figures and the problems when addressing Congress.
5. Presentation of FY 1976 INR Program
Mr. Denney presented the INR program summary for the
State Department. During his presentation he highlighted the increasing
requirement for information handling and external research. A summary
of Mr. Denney's presentation is available in the USIB/IRAC Secretariat.
6. Presentation of FY 1976 CIA Program
Mr. Iams presented CIA's FY 1976 program summary, high-
lighting those issues which the agency considers important. Briefing
aids and details are available in the USIB /IRAC Secretariat.
7. Discussion of National/ Tactical
Intelligence
The National/ Tactical Intelligence discussion was treated under
items 3 and 4 above.
8. Concluding Remarks
Mr. Colby said that he believed the object of the IRAC meeting
was accomplished, which was to inform all the members of the budget
picture as we look toward FY-76. He noted that the Department of Defense
will issue their Program Decision Memorandum soon. Mr. Colby will
be reviewing the NPIC and other programs. He said he would like to
meet with the program managers when their programs are completed
with a view toward possibly recommending some changes. Taking into
account the budget picture, Mr. Colby said that we have a selling job to
do. He noted that the intelligence community has taken a beating, but has
produced fantastic results, especially when viewed over the last ten years.
He said he proposed to make a strong presentation to the Congress.
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Mr. Colby said he intended to convene another IRAC meeting
in September to review the results of the FY-74 expenditures. The
IRAC meeting for November would address final budgetary decisions
for FY-76 and Mr. Colby's National Foreign Intelligence Budget
Program memorandum to the President.
Executive Secretary
Adjournment: 1625 hours
SECRETARY'S NOTE
Approval of Minutes
20 May Meeting
(IRAC-M-7)
On 20 June 1974 all IRAC members telephonically approved the
subject minutes.
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