REPORT TO CONGRESSIONAL OVERSIGHT COMMITTEES REGARDING EXEMPTION DIRECTIVES ISSUED UNDER FOREIGN CORRUPT PRACTICES ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81M00980R002800030082-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 19, 2016
• Sequence Number: 82
• Content Type: MEMORANDUM FOR

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29 September 1978
MEMORANDUM FOR: Director of Central Intelligence
THROUGH Deputy Director of Central Intelligence
FROM . Anthony A. Lapham
General Counsel
SUBJECT Report to Congressional Oversight
Committees Regarding Exemption Directives
Issued Under Foreign Corrupt Practices Act
REFERENCE Memo for DCI fm AALapham, dtd 8 Mar 78,
Subj: Ltr to Hon. Zbigniew Brzezinski
Re: Implementation of the Foreign
Corrupt Practices Act of 1977, w/att.
DCI ltr to Brzezinski.
1. Action requested. Your signature on the attached
letters to the Chairmen, Senate Select Committee on Intelli-
gence and the House Permanent Select Committee on Intelligence.
2. Background. In-referent memorandum, this office
outlined for you the potential impact on various covert CIA
operational and procurement practices presented by the
enactment of the Foreign Corrupt Practices Act of 1977,
which in relevant part requires all U.S. corporations registered
with the Securities and Exchange Commission to maintain "in
reasonable detail" accurate internal corporate records. Our
memorandum further advised that Congress, at CIA's urging,
adopted an amendment to the Act which essentially exempts a
company from this requirement when it is cooperating in a
matter relating to the national security and the responsible
Federal agency certifies this fact to the corporation concerned
by means of a specific, written directive. Although the so-
called "national security" amendment does not mandate review
or approval of the actual directives by any third parties,
Congress did insert requirements for prior Presidential
"authorization" to the agency to issue such directives as
well as for reports by the Agency on 1 October of each year
to the House and Senate Intelligence Oversight Committees
"summarizing the matters covered" by directives in force
MORUCIDIF
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during the previous year. Thus, in order to first gain the
requisite White House authorization, referent memorandum
contained a proposed DCI letter to Dr. Brzezinski outlining
what an Agency-wide survey concluded would be the six major
categories of confidential CIA/U.S. corporate relationships
for which specific directives would be-required. You signed
that letter on 13 March and, after NSC staff consultations
with White House and Justice Department attorneys, Dr. Brzezinski
responded with a 4 April 1978 memorandum to you authorizing
CIA to issue specific directives under each of the six
categories.
3. Supporting data. The attached, proposed letters
to Senator Bayh and Representative Boland will serve to
satisfy CIA's remaining statutory obligation to provide SSCI
and HPSCI with an annual summary by 1 October of the kinds
of matters covered by the exemption directives issued by the
Agency during the preceding year (or, in this case, since
the legislation was enacted on 19 December 1977).
previous y --submitted to the White House and
formally approved by Dr. Brzezinski. In addition, the
letters also state that CIA is in the process of preparing a
"significant number" of exemption directives (in point of
4. For your general information, our established
internal procedures governing the preparation, issuance and
control of exemption directives are in place and appear to
be functioning efficiently. Pursuant to your written delegation
of 18 April 1978, this office is the focal point and initiator
of all exemption directives issued by CIA. Pursuant to
these existing procedures, after the designated senior
corporate official in each case formally acknowledges receipt
of the directive in the appropriate space thereon, this
Office in most cases maintains the central Agency file
containing the originals of these duly executed and acknowledged
directives. A copy of one such completed directive has been
included in the background materials for your general reference.
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5. Recommendation. That you sign the attached,
identical letters to Senator Bayh and Representative Boland
in accordance with CIA's Congressional reporting requirements
under the Foreign Corrupt Practices Act.
Anthony A. Lapham
egislative Counsel
,CT
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