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Approved For Release 2006/12/15: CIA-RDP81 M00980R00020CM6 OLC #78-1971/1 24 May 1978 fl COPY W-ems-S - MEMORANDUM FOR THE RECORD SUBJECT: Senate Select Committee on Intelligence Hearing on FY 1978 Reprogramming and FY 1979 Budget Amendment Concerning the Reorganization of the Intelligence Community Staff 1. (U) On Wednesday, 24 May 1978, the Budget Authorization Subcommittee of the Senate Select Committee on Intelligence (SSCI) met to hear the Director on the matter of FY 1978 reprogramming and FY 1979 budget amendment concerning the reorganization of the Intelligence Community (IC) Staff. Security was provided by the Committee. A transcript was taken of the hearing. Witnesses were not sworn. The hearing started at 10:00 a.m. and concluded at 11:15 p.m.. 2. (U) Members present included: William D. Hathaway (D. , Maine) , Chairman Malcolm Wallop (R., Wyo.) 3. (U) Staff members present included: Dan Childs, George Pickett, Hal Ford, David Bushong, and approximately six others. A (U) The Director was the nrinr?;rnal witness. Tl /nr T /nna __ -1 ., '-'/ LCD-/ .,a , as.-11J ed 111111 25X1 and 1%r. Steven Potts, Department o~ Defense, was called on to .answer questions. Additional attendees were as indicated on the attached witness list. 25X1 5? ( S) The following items of interest were noted: a. The Director presented his briefing which described and explained the reorganization of the IC Staff and the Collection Tasking Staff and the Resource Management Staff. During his briefing he indicated that there was a need for a general and a legislative counsel activity to handle Intelligence Community matters, but that these personnel would be offshoots of the Office of Legislative Counsel and the Office of General Counsel of CIA. ?=T c~ aret2C1u 1.. Approved For Release 2006/12/15: CIA-RDP81 M00980R000200060075-2 Approved For Release 2006/1 2tt5':T ti r RDP81 M00980R000200060075-2 b. Chairman Hathaway asked where the additional po:;i- tions being added to the IC Staff were coming from and what activities were bein,; reduced. The Director responded by sa;ring he was basically pic::ing up a few positions from various locutions in the CIA. Mr. Potts responded for the Department of Defen:re saying the precise areas from whence positions would be taken had not yet been identi==Led but that this would be done as part of the 1978 budget exec,:ise. The Chairman said don't we need to know that now, and a,;ain repeated his question. Mr. Potts responded that he co-.ild not give a precise answer but would supply something for the record. c. Chairma:zHathaway asked how the Community perfo: mance would improve 'i.nder this reorganization, and the Direc-:or responded by describing improvements in the coordination of collection tasking.a:zd in the carrying out of new budget responsibilities. 25x1 d. thairma:z Hathaway asked the Director if he had considered other al,::rnative rearanni t on p re(--tor responded saying that he andi and had 25x1 looked at a number of ways of reorganizing and had decided this was the most appropriate. 13. Chairma:a Hathaway asked about the need for thre(: evaluation units, ant the Director explained what the different functions would be :'Dr each of the units in the National Fori:ign Assessment Center, .:he Collection Tasking Staff, and the Resource Management Staff. 'The Chairman asked if these units could not be merged, and the Dire:tor responded that they could be, but it would not result in a savings in personnel and might conceivably be less efficient in the Iona run. The Chairman asked if units might be performing overlapping functions. The Director indicated that there would be some overlap, but it would be desirable. He also indicated that there would also be non- Government people invited into the process from time to time to help in the development of intelligence studies. if. Chairman Hathaway asked how the National Intelligence Tasking Center would interface with existing Community functions. The Director responded saying that the NITC would be colocatad with the combined collection facility of'the Department of D,,fense, and that this would provide for an interface between tactical and national intelligence tasking. Approved For Release 2006/12/15: CIA-RDP81 M00980R000200060075-2 Approved For Release 2006/12/15 Lb1>A' DP81 M00980R000200060075-2 g. Chairman Hathaway asked if there were any plans for further expansion of the IC Staff beyond what was being requested. The Director responded saying he did not plan any further expan- sion, but that at this point he could not be absolutely certain as to how many people would be needed and would have to wait and see whether the numbers currently being requested were right. h. Chairman Hathaway asked the Director to indicate what the Committee might look to in evaluating this new staff concept, and the Director responded saying that next year the Committee should look to the progress the Collection Tasking Staff had made in developing collection plans and the progress the Resource Management Staff would make in presenting better budget justifications. i. Chairman Hathaway asked the Director to confirm that ization would not require any additional funds. responded saying that the reorganization would not 25x1 require a itional funds but that the Director would ho e to have p some flexibility in ter7nq ere the reprogramming changes might take place. indicated that the original plan 25x1 might require some minor adjustment if circumstances indicated more efficient uses of resources. The Chairm n asked that an impact statement be provided, and agreed to do so. 25x1 j. .Senator Wallop asked the Director to assure that he would monitor the future size and budget-of the new Community organization. The Director responded that he would, that he would cut overhead at CIA in order to increase operations, and that he had no desire to have any unnecessary management. How- ever, he said this reorganization plan was called for by the charter legislation. It was needed if he was to have the mechanism to coordinate the Community. Senator Wallop asked how much control this organization would have over the component agencies. reported that it would have control over reprogramming5x1 control as was necessary to implement DCI and Congressional budg C> F et policy. indicated that detailed day-to-day 25x1 management contro wou not rest with the IC Staff. Senator Wallop asked how much new lyis staff would create for the component agencies and responded that there would 25x1 be no substantial additions wor oa at the management level. However, there would be some additional financial breakouts required in order to assist in the budget management process. Senator Wallop asked if the compo s had been consulteS on this reorganization andi responded affirmatively. 25X1 Approved For Release 2006/12/15: CIA-RDP81 M00980R000200060075-2 Approved For Release 2006/12/15.- Q1bP81 M00980R000200060075-2 k. Senator Wallop and the Director then had a discussion on the manner in which intelligence analysts would relate to both the NITC and the collection tasking committees. The Director explained that while the NITC would grow in its role, he had no intention of prohibiting analysts from dealing directly with the functional tasking committees. Chairman Hathaway at one point asked if all analysts would be required to g ba NITC l in the future and the Director responded that they would probably the to do so. He indicated that he wished to maintainasmuch not have flexibility as possible in these matters. 'Senator Wallop then asked if this plan was the result of a study the Director had made and the Director responded that it was based on his experie::ace over the past year and a half. 25x1 1. Chairman Hathaway asked what the reorganizatio:i would be doing to improve counterintelligence. The Director responded that the Resource Management Staff would be looking at counter- intelligence in it; budget role. He explained that under the new Executive Order the Special Coordinating Committee of the NSC. was responsible for overall management of counterintelligence. Chairman Hathaway asked abou the HUMINT Co- .ti:ee in counterintelligence and bothf-I and 1re=plied25x1 indicating that the HUMINT Committee would co e a role in the management and guidance of counterintelligence asset!;. 25x1 I I said that he had planned to have one man assigned to LnIS unc: -ion but was thinking that he might need a second person. The Direc:tor then indicated t"hnt A' counterintelligence. chief was about: to retire and would be replacing him. 25x1 Chairman Hathaway asked what Mr. Brzezinski's role would be in counterintelligence and the Director replied that he would to responsible for managing the overall Government effort and would not get down into daily operating details. At one point in the conversation the Director indicated that the placement of manage- ment responsibility for counterintelligence was a 25x1 pem be of the close affinity of counterintelligence to law renforcerrentSe and that the decisicn to give this role to the NSC was, in effect, a compromise. 25x1 M. Chairman Hathaway asked whether there were any other personnel involved in the Intellig Committee Staff and the 25X1 Director responded that there were people on non-reimbursable details but that of them were about to leave and would not be replaced. The airman the ere were any other personal service contracts and responded with the 25x1 d etails. Chairman 1athaway th t would not he r to have a ceiling for non-reirnbursible details and responded affirmatively. The Chairman we gave youl for present authority would that do and said yes. Approved For Release 2006/12/15: CIA-R?P81 M00980R000200060075-2 .ZM Approved For Release 2006/12/15: CIA-RDP81 M00980R000200060075-2 6. (U) Chairman Hathaway ended the meeting by saying that he had no problem with the concept of the reprogramming. Office of Legislative Counsel Attachment: .Witness list as stated Distribution: Orig - OLC Subj 1 - D/DCI/FtM 1 - D/D I/CT 1 - Mr. 1 - Mr. 1 - Mr. 1 - Mr. I - OLC Chrono OLC/ELS/mg (5S, June 78) Approved For Release 2006/12/15: CIA-RDP81 M00980R000200060075-2. Approved For Release 2006/12/15: CIA-RDP81 M00980R000200060075-2 .WITNESS LIST Stansfield Turner ACCOMPANIED BY : Steven Potts Director of Central Intelligence Deputy to the DCI .-for the Intelligence Community. (Designate Deputy to the DCI for Resource Management) Special Assistant to the DCI (Designated Deputy to the D'-I for Collection Tasking) Chief, Support Staff, Intelligence Community Staff Special Assistant to (Designated Associate eputir o the DCI for Collection Task:Lng) Budget and Fiscal Officer, Intelligence Community Staf:E Special Assistant to (Designated Director, icE: o Collection Evaluation) Acting Legislative Counsel, Office of the Director of Central ntelligenc, Associate Legislative Counsel, Office of the Director of Central Intelligence Department of Defense Representative Approved For Release 2006/12/15: CIA-RDP81 M00980R000200060075-2