ENTERTAINMENT OF PERSONNEL UNDER CONTRACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00755R000100080005-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: July 12, 2000
• Sequence Number: 5
• Publication Date: February 29, 1952
• Content Type: MEMO

.rTANJ'ARD FORM NO. 64
Ap d For Release 2000) 81 Q & Q 81-007 5R000100080005-1
Office 1ea~2ortum ? UNITED STATES GOVERNMENT
TO : Comptroller
:FROM Finance Division
SUBJECT: Entertainment of Personnel under Contract
DATE: 29 February 1952
1. Attached hereto are two claims submitted by
iE/OPC, in connection with the entertainment of agents under contract with
CIA.
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2. These claims were returned to not certified by the 25X1A9a
Finance Division for the following reasons:
a. The personnel entertained by are under
contract with CIA at a per annum salary and receive per diem
while on TDY in Washington.
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b. Meeting places are provided operational personnel
at CIA expense, for the purpose of conducting covert meetings
with personnel under contract.
c. The fact that covert meetings extended through the
lunch or dinner hours does not alone appear to be sufficient
justification for the entertainment of subject personnel.
3. Also attached iAMC request for clarification of policy
and the reconsideration aims referred to above.
).. Although it has long been recognized that some entertainment is
necessary in connection with the activities of CIA, it has also been
recognized that the entertainment of employees of the Government normally
is not permissable. In some instances the entertainment of personnel under
contract may be justified. For instance, vouchers for such entertainment
have been certified where the operations officer has certified that, (a) he
did not want to bring the individual concerned to an Agency furnished meet-
place for reasons of security, or (b) when Agency furnished meeting
oles are not available at the tine the meeting took place, or (c) when
he has been subjected to late working hours, thus incurring additional
personal expense, which expense snould be classed as operational rather t.an
fourposes of entertainment.
5. To the best of our knowledge entertainment of uuersonnei under
contract is neither cov?red by existing regulations nor has it ever before
beep presented for a policy determination.
6. e will await your decision before further processing the attached
or sir,;ilar clams,
f T' Division
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SECURITY INFORMATION
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NE MIORANDUM FOR : CFD
ATTENTION:
SUBJECT: Request for Clarification of Policy and Reconsideration
of Attached Vouchers
1. In accordance with our recent conversation, I am returning the
attached vouchers with the following comments which I would appreciate your
brinf_ng to the attention of the appropriate officers of CFD with a view to
obtaining a. clarification of policy on the payment of such claims.
2. The persons entertained were both covert and contract agents in
Washington from the field for a brief period for consultation. It has been
the general understanding within the FE Division, sustained on numerous oc-
casions by certifying officers of CIF, that the reasonable entertainment of
contract agents departing for or returning from overseas was permissible.
3. In two cases the conferences involved Division and Branch Chiefs
and/or their deputies. Arranging a time and meeting place for a covert
meeting involving several extremely busy officials is most difficult and
luncheon is often the only feasible solution. In one of these instances
- was used and the conference continued thru lunch. In the other
the only time agreeable to all was at luncheon. In both cases official,
confidential business was discussed. The third instance was basically e -
terta.inment when agent was in town alone over weekend, but it is felt to
legitimate official expense since the establishment of good personal rela-
tions with contract personnel in the field is an essential to operations.
25X1A FEJ'JFC:mmc
7 December 1951
1ist.t
Addressee - Orig & 1
SD/RE - 2
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II Nf~RN~TIQN
25X1A9a 25 March 1952
Finance Division
intertair ent of i' ersonneel Under Contract
1. Reference is made to your memorandum dated 7 December 1951, request-
ing clarification of policy and reconsideration of vouchers,the payment of
which had previously been declined for the reason that they represented
entertainment of agents or employees under contract. Based upon your request
this subject was discussed with various agency officials and was presented
to the Comptroller for a policy decision on 29 February 1952. For your
information.. paragraph 4 of our torand to the Comptroller is quoted:
"Although It has long been recognized that some entertainment is
necessary in connection with the activities of CIA, it hqs also been
recognized that the entertainment of employees of, the Government nor-
mally is not permissible. In sortie instances the entertainment of
personnel under contract may be justified. For instance, vouchers
for such entertainment have been certified where the operations offi-
cer has certified that, (a) he did not want to bring the individual
concerned to an Agency furnished meeting place for reasons of security,
or (b) when Agency furnished meeting places are not available at
the time the meeting took place, or (c) when he has been subjected
to late worming .hours, thus incurring additional personal ee*enaae,
which a ase should be classed as operationaal rather than for pur-
poses of entertainment."
Also for your information there is quoted below the memorandum from the Co
troller to the A 'inance Division, dated 10 March 1952, which is in reply to
our memorandum of 29 February 1952.
"As indicated in your attached memorandum of 29 February 1952,
the personnel entertained by are under contract with
CIA at a per annum Salery an. receive per diem while on TD! in
Washington. Therefore, the claims should be denied on the basis that
the persons were receiving per diem in lieu of subsistence from
the government and, therefore, there is no basis or justification for
the government to also pay for their subsistence or any part thereof.
"Unless there are other circumstances not brought out in the
attached file which would warrant payment of the claims in question,
they should not be approved."
2. In accordance with the above the Finance Division must henceforth
decline to honor all vouchers representing exclusive entertainment of
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or representatives under contract. The vouchers forwarded
your ? orandun of 7 comber 1951
have been csnf%&I I ed and
,
are
urned herewith,
Chie , Finance Division
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