LETTER TO MR. JAMES M. FREY FROM FREDERICK P. HITZ

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00156R000300010006-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 19, 2016
• Document Release Date: October 31, 2006
• Sequence Number: 6
• Publication Date: March 22, 1979
• Content Type: LETTER

Approved For Release 2006/10/31: CIA-RDP83-00156R000300010006-8
*DIRECTOR OF CENTRAL INTELLR O
Legislative Counsel
2 2 MAR 1979.
OTC HAS REVIEWED.
Mr. James M Frey
Assistant Director for
Legislative Reference
office of Management and Budget
Washington, D.C. 20503
Dear Mr. Frey:
This is in response to your request for the views of the
Central Intelligence Agency on the most recent draft of the
"Classification and Compensation Act of 1979".
I am disappointed to note that the draft falls seriously
short of reflecting the Agency's suggestions contained in
my letter of 20 January 1979, and communicated in subsequent
oral presentations made by members of my staff.
The importance of protecting intelligence- sources and
methods, and of preserving the flexibility required for the
effective conduct of the Central Intelligence Agency's foreign
intelligence functions were recognized by both the Administration
and the Congress when the Agency was exempted from all of the
major provisions of the Civil Service Reform Act of 1978. The
same considerations should apply with regard to the Classification
and Compensation Act of 1979.
Section 6 of the new draft would add a new Chapter 50 to
Title 5 of the United States Code. Under Section 5001, the
"Compensation Agent" and its staff would have access to informa-
tion directly pertaining to intelligence sources and methods..
The revisions now contained in the draft (exempting employment
in foreign areas with regard to pension pay and allowances
in Section 5001(b)) do not adequately meet-our, needs.
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The draft, for example, would eliminate for purposes of the
proposed Act the exemption to the rule making provisions of
the Administrative Procedure Act contained in- Section 553(a).
This would result in the subjection of some of CIA's most
sensitive material to various forms of public-disclosure.
Under subsection 553(c) of Title 5, for example, there could
be public participation in Agency rule making related to
matters covered by the Classification and Compensation Act;
a result that would be diametrically opposed to the purposes
of both the National Security Act of 1947 and the Central
Intelligence Agency Act of 1949, and to the position consistently
taken by this.and previous Administrations on similar matters.
Under the provisions of the latest draft, the Compensation
Agent and its staff would also possess, inappropriately in our
view, the authority to make recommendations impacting upon
the mission and substantive functions of the Central
Intelligence Agency. in addition, it is implicit in the
draft bill that the office of Personnel Management's
administration of modifications in pay systems or premium
pay or allowance.. provisions under Section 5001 would require
continuing access to information pertaining to intelligence
sources and methods and could place OPM in the position of
affecting substantive Central Intelligence Agency functions.
The Central Intelligence Agency must retain maximum
flexibility to carry out its mission and functions success-
fully, a fact which has been reflected in Administration
policy in areas such as 'those covered by the draft
Classification and Compensation Act. The flexibility of
the Director under.50 U.S.C. 403j to operate and adapt the
Central Intelligence Agency's personnel system in order
'to meet the Agency's unique personnel requirements and the
ever-shifting exigencies of intelligence collection and
foreign affairs would be seriously impaired by Section 5001.
I strongly urge, therefore, acceptance of the following
amendments:
1. Section 5001(a): Line 13 on page 40
of the March OMB draft should be amended as
follows:
"....States, but does not mean an
employee of the Central Intelligence Agency."
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i S
2. Section 5949(a) "Staffing Differentials:
Line 21 on page 32 should, for the same reasons
outlined above in connection with Section 5001(a),
be amended to read:
"...prescribe, but does not include
compensation systems of the Central Intelligence
Agency."
The opportunity to again comment on this draft bill is
appreciated. We firmly believe that the amendments specified.
above must be made in order to prevent the erosion of key
statutory authorities of the Director of Central Intelligence
and to preserve the flexibility which is critical to successful
accomplishment of the Central Intelligence Agency's mission.
We stand ready to provide whatever further assistance may
be necessary.
Sincerely, STAT