DDI AND DDO BRIEFING OF HSC STAFFERS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80T00704A000100060001-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: November 17, 2016
• Document Release Date: August 4, 2000
• Sequence Number: 1
• Publication Date: July 31, 1975
• Content Type: MFR

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31 July 1975
MEMORANDUM FOR THE RECORD
SUBJECT: DDI and DDO Briefing of HSC Staffers
25X1A
1. spent a little over two hours
briefing Emily Sheketoff and Ed Roeder on 30 July 1975. The staffers
d th dollar fi cares with rnin.i--
on
d
in ep
had requested that they be briefe
g 25X1A
mum explanation of what those who spend the money do. -gave
them some figures and answered many of their questions, some of
which were quite elementary, as best he could, given the framework
of their' request. In the end he convinced them that,they would never
understand dollar figures without some idea of how the money was used.
He offered to brief them early any morning at length on the background
of what the DDI does, how and why, to place the budget in meaningful
context. This is being arranged for Friday morning. Here are some
of the questions they asked.
a. How is the DDI budget formulated?
b. Who (i. e. , what level) decides how much is spent on
each activity?
c. What percent of the DDI budget is re-programmed within
the DDI; what percent of DDI money is re-programmed to
another Agency component; what percent is re-programmed
from another component into the DDI?
d. Do you have covert or hidden contracts, whereby a con-
tractor does not know that he is contracting with CIA? (Even
though the CIA is not at fault, one result of its having classified
contracts may be that the contractor will withhold information
which properly should go far up in his own hierarchy -.. for
example,
25X1A
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Do you have any external contracts except for research?
f. Do you send people abroad to study? How many people
do you place in universities? Have you any cases of a person
managing a contract for $1, 000, 000 or so for a hefty fee, .say
$50,000?
g. What freedom of action does each level have to re-program?
In what amounts? And with what constraints?
h. To what extent are people and resources from other agencies
made available to the directorate, and vice versa.
i. What people or amounts of money do you have control of
that are not reflected in your budget? 25X1A
2. The DDO budget briefing conducted by
lasted about two and one-half hours. The DDO s resse t e nee for
security and his concern about the ultimate disposition of HSC records.
Roeder replied that there had been no leaks from the HSC staff or HSC
members as yet. The level of questioning was elementary and the picture
which emerged could have only been blurred. -explained the 25X1A
difference between operating funds and management support funds, and
he tried to keep them from confounding objectives and object classes.
Roeder asked if there was any unclassified information on the DDO budget
that they could take back for House members to read in their offices.
Some of their questions were:
a. How big is the contingency fund? How much is added to it
each year? What approvals must be obtained in order to use it?
b. If you have a "spy" (agent)iix Moscow, where will we find
his salary?
c. They were interested in mid year reviews for budget and
management purposes. Does the DDO wait until someone
below him shouts for help before he re-programs money or
does he intervene on his own initiative?
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d. Again, does the DDO have employees from other agencies
or parts of CIA, and do other agencies or parts of the agency
get employees from the DDO. If so, who pays them? Does
OMB have control of this exchange of money and services?
e. Do proprietaries give the Agency extra freedom from
budgetary oversight in that it can get services from the pro-
prietaries cheaper than normally and thus have some extra
money left for operating purposes that oversight levels are
unaware-of? Do proprietaries make profits that can be
used by the Agency at its own discretion without effective
oversight control? 25X1A
Distribution:
SC /DCI
ADDO
ADDS&T
-'A DDI
A DDA
IG
D /OGC
D/Logis'tics
DD/OP
D /Finance
C /Audit Staff
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Friday, 1 August 1975
25X1A 0600 hours
Meeting with House Select Committee Staffers
Emily Sheketoff
Edward Roeder
25X1A
J
DAT
TRANSMITTAL SLIP
TO:
ROOM NO. BUILDING
REMARKS:
25X%0 has also been given
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FROM:
ROOM NO.
BUILDING
EXTENSION
FORM NO . REPLACES FORM 36-8 (47)
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