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

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CIA-RDP81M00980R002800030082-9
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RIPPUB
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S
Document Page Count: 
3
Document Creation Date: 
December 19, 2016
Sequence Number: 
82
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MEMORANDUM FOR
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PDF icon CIA-RDP81M00980R002800030082-9.pdf151.64 KB
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Approved For Release 20c & E.'tE`-y'A-RDP81 M00980R002800030082-9 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 Approved For Release 2006/07/28: CIA-RDP81 M00980R002800030082-9 SECRET], 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. Approved For Release 2006/07/28: CIA-RDP81 M00980R002800030082-9 Approved For Release 2006/07/28: C DP81 M00980R002800030082-9 SECR 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 Approved For Release 2006/07/28: CIA-RDP81 MOQ98OR002800030082=9