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Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
December 19, 2016
Document Release Date: 
December 19, 2006
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Publication Date: 
May 24, 1978
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Approved For Release 2006/12/13.: CGA DP81 M00980R001900030062-1 MEMORANDUM FOR THE RECORD OLC X78-1971/1 24 May 1978 GUY 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.1' 2. (U) Members present included: William D. Hathaway (D., Maine), Chairman 25X1 Malcolm Wallop (R., Wyo.) 3. (U) Staff members present included: Dan Childs, George Pickett, Hal Ford, David Bushong, and approximately six 25x1 others. (U) The Director was the rinci al witness. D/DCI/RM, and General D/DCI/CT, assisted him and 'IMr. Steven Potts, Department of Defense, was called on to answer questions. Additional attendees were as indicated on the 25X1 attached witness list. 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. Approved For Release 2006/12/19: CIA-RDP81 M00980R001900030062-1 b. Chairman Hathaway asked where the additional posi- tions being added to the IC Staff were coming from and what activities were being. reduced. The Director responded by saying he was basically picking up a few positions from various locations in the CIA. Mr. Potts responded for the Department of Defense saying the precise areas from whence positions would be taken had not yet been identified but that this would be done as'part of the 1978 budget exercise. The Chairman said don't we need to know that now, and again repeated his question. Mr. Potts responded that he could not give a precise answer but would supply something for the record. c. Chairman Hathaway asked how the Community perfor- mance would improve under this reorganization, and the Director responded by describing improvements in the coordination of collection tasking and in the carrying out of new budget responsibilities. 25X1 d. chairman Hathaway asked the Director if he had considered other alternative 'on pl Director responded saying that he and and had looked at a number of ways of reorganizing an had decided this was the most appropriate. 25X1 e. Chairman Hathaway asked about the need for three evaluation units, and the Director explained what the different functions would be for each of the units in the National Foreign Assessment Center, the Collection Tasking Staff, and the Resource Management Staff. The Chairman asked if these units could not be merged, and the Director responded that they could be, but it would not result in a savings in personnel and might conceivably be less efficient in the long run. The Chairman asked if these 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. f. Chairman Hathaway asked how the National Intelligence Tasking Center would interface with existing Community functions. The Director responded saying that the NITC would be colocated with the combined collection facility of'the Department of Defense, and that this would provide for an interface between tactical and national intelligence tasking. Approved For Release 2006/12/19: CIA-RDP81 M00980R001900030062-1 Approved For Release 2006/12/1.9 ;C.1'#`IDP81 M00980R001 900030062-1 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 this reor anization would not require any additional funds. 25x1 responded saying that the reorganization would not require additional funds but that the Director would hope to have some flexibility i ere the reprogramming changes 25x1 might take place, indicated that the original plan might require some minor adjustment if circumstances indicated more efficient uses of resources, n asked that an 25x1 , The impact statement be provided, and agreed to do so. 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_ 4I- - ation would have over the component agencies. reported that it would have control over reprogrammings and such control ssary to implement DCI and Congressional budget policy. indicated that detailed day-to-day 25x1 management control 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 woullx1 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 had been consulte(f on this reorganization and responded affirmatively. 25X1 Approved For Release 2006/12/19,; hA R&81 V i.w :J r d.d 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 go future and the Director responded that they would probably NITC l in the to do so. He indicated that he wished to maintain as b much 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 experience 25x1 over the past year and a half. 1. Chairman Hathaway asked what the reorganization would be doing to improve counterintelligence. The Director responded that the Resource Management Staff would be looking at counter- intelligence in its 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 about the role of-,the HITNITNT 'ttee in25x1 counterintelligence and both and replied i in thp ndicating that the HUMINT Committee would continue to have a role5x1 ment and guidance of counterintelligence assets. Isaid that he had planned to have one. man assigned to this function but was thinking that he might need a second person. The Director then indicated IA- counterintelligence chief5xl was about to retire and would be replacing him. Chairman Hathaway asked what Mr. Brzezinskits role would be in counterintelligence and the Director replied that he would be 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 problem because of the close affinity of counterintelligence to law enforcement. and that the decision 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 Intelligence Committee Staff and the Director respond there were[ people on non-reimbursible details but that of them were a out to leave and would not be replaced. The airman the Jere were any other 25x1 personal service contracts and responded with the details. Chairman Hathaway then as e It it would not be better t h o ave a ceiling for non-reimbursible details and responded affirmatively. The Chairman tote gave you for present authority would that do and said yes. 0 Approved For Release 2006/12/16:.CIDP81 M00980R001900030062-1 6. (U) Chairman Hathaway ended the meeting by saying that he had no problem with the concept of the reprogramming. Office o Legislative Counsel Attachment: Witness list as stated Distribution: Orig - OLC Subj 1 - D/DCI/RM 1 - D/DCI/CT OLC/ELS/mg (5'. June 78) 1 - OLC 1 - Mr. 1 - Mr. 1 - Mr. 1 - Mr. Approved For Release 2006/12/19: CIA-RDP81 ML00980R001900030062-.1 Approved For Release 2006/12/19: CIA-RDP81 M00980R001900030062-1 .WITNESS LIST Stansfield Turner ACCOMPANIED BY: Steven Potts Director of Central Intelligence Deputy to the DCI-for the - 25x1 Intelligence Community. (Designated Deputy to the DCI for Resource Management) Special Assistant to the DCI (Designated Deputy to the DCI for Collection Tasking) Chief, Support Staff, Intelligence Community Staff 25x1 Budget and Fiscal Officer, Intelligence Community Staff (Desinated Associate Deputy-To- C, the DCI for Collection Tasking) Special Assistant to (Designated Director, ice o Collection Evaluation) Special Assistant to Acting Legislative Counsel, Office of the Director of Central Intelligence Associate Legislative Counsel, Office of the Director of Central Intelligence Department of Defense Representative Approved For Release 2006/12/19: CIA-RDP81 M00980R001900030062-1