LETTER TO THE HONORABLE THE DIRECTOR OF THE BUREAU OF THE BUDGET FROM WALTER B. SMITH

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R000800050030-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: June 6, 2003
• Sequence Number: 30
• Publication Date: February 7, 1951
• Content Type: LETTER

ER 1-5473
Approved For Release 2003/06/13 : CIA-RDP80R0l731 R000800050030-0
7 February 1951
The Honorable
The Director of the
Bureau of the Budget
Bureau of the Budget
Washington 25, D. C.
There are a few key positions in the Central. Intelligence Agency
which can be filled most effectively, indeed can only be filled effec-
tively, by selected officers of the Armed Services. Although I have
a quota of personnel from each of these Services, I am unable to obtain,
for these few key positions, officers of the training and experience
which I require, as this training and experience is acquired only by
rather senior General or Flag Officers whose numbers on the active list
are limited. The obvious solution is to employ professionally and
physically qualified retired officers, but the so-called dual compensa-
tion status makes it impossible for me to obtain the services of any of
those who are released for reasons other than for physical disability,
and physical disability would in most cases be a disqualifying defect
from the CIA point of view. Thus the Government is precluded from
utilizing in a very important field the services of certain highly
qualified individuals in whose training the United States has a very
considerable investment and who are capable of performing highly
important functions of particular concern to this Agency by reason
of such training.
I know that you are well aware of this problem due to the support
which the Bureau of the Budget gave to legislation in the 81st Congress
which would authorize the Government to employ Retired Officers, pro-
vided that during such employment they waive tither their retired pay
or their government salary. Unfortunately, this legislation failed in
the last session due to the lack of time for conference, although al-
most identical bills passed both the House and the Senate. I now
understand that similar legislation has been introduced in the Senate,
but I am told that it will be mar W months before its final passage.
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Approved For Release 2003/06/13 : CIA-RDP80R0l731 R000800050030-0
 Approved For Release 2003/06/13 : CIA-RDP80R01731 R000800050030-0
I am faced with an immediate need for the services of certain
peculiarly well qualified Retired Officers, as well as some who are
just reaching the retirement age. Their assistance, particularly in
these times, will constitute a contribution of the ,reatest importance
to our work, not only in certain operational and technical fields, but
also in estimates of foreign military potentials.
I have therefore drafted a bill which would authorize this Agency
to employ not more than fifteen Retired Officers. This would serve us
until such time as government wide legislation could be enacted. It
is requested that you approve our submission of this legislation to the
Congress, and state that this request is in accord with the legislative
program of the President.
Sincerely,
Walter B. Smith
Director
Drafted by Legislative Counsel
Retyped: 0/DCI lec
Distribution:
Ori & 4 cc---VSressee
2 cc---signer
1 cc-Central Records
1 cc-Comptroller
2 cc-Legislative Counsel
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- 2 -
 Approved For Release 2003/06/1 jLC F DP80RO1731 R000800050030-0
To amend Section 6 of the Central Intelligence Agency Act of 1949.
by the Senate and Huse of Representatives, of
United States of America in Con ess assembled. That Section 6 of the
nee Agency Act of 1949 (Act of June 20, 1949, ch. 227,
see. 6. 63 Stat. 211) is hereby amended by the addition of a subsection
;_f" as follows:
) Notwithstanding Section Z of the t',ct of July 31, 1894, 28
Stat. 245, as amended, 5 USCA 62, or any other law prohibiting
mployment of any retired commissioned or warrant officer
e Armed Services,
ncy is hereby authorized to employ
'i pay the compensation of not more than fifteen retired
era or warrant officers of the , rmed Services while perform-
service for the Agency, but while so serving such retired
will be entitled to receive only the compensation of his
position with the -gency, or his retired pay, whichever he may elect.
ing in this Section shall limit or affect the appointment
and payment of compensation to retired officers not presently
after prohibited by law; Provided
that, upon such appoint-
ment, officers retired for injuries or incapacity incurred in line
of duty may, in addition to the elections set forth above, elect to
receive, in addition to his retired pay, annual compensation at a
qual to the amount by which the compensation of his position
Agency exceeds his retired pay.-
Approved For Release 2003/06/13 : CIA-RDP80R01731 R000800050030-0