PROGRESS REPORT BY THE DCI ON RESPONSE TO THE PRESIDENT'S MEMORANDUM OF 5 NOVEMBER 1971 (NSCIC Meeting, 1 December 1972)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00506R000100030003-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 9, 2016
• Document Release Date: August 30, 2000
• Sequence Number: 3
• Publication Date: December 1, 1972
• Content Type: REPORT

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PROGRESS REPORT BY THE DCI
ON RESPONSE TO THE PRESIDENT'S MEMORANDUM OF 5 NOVEMBER 1971
(NSCIC Meeting, 1 December 1972)
Actions responding to the President's memorandum of 5 November
1971, which established this Committee, have had a significant impact
on the organization, management and functioning of the U.S. intelligence
community.
The President assigned me four responsibilities in that memo-
randum. My comments will address these responsibilities.
**********
The first charge was to plan and review all intelligence
activities and the allocation of all intelligence resources.
The key action in this instruction is to plan and review.
Accordingly, I organized within my Intelligence Community Staff,
a Comptroller Group and a Plans and Evaluation Group.
The Comptroller Group was instructed to participate with
the Departments of State, Defense, and CIA in their FY 73-74
program reviews and budget planning and to make substantive input
into their deliberations. This has been done. The product of
that effort was the development of a National Intelligence Program
Memorandum, the nature of which I will address in a moment.
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In addition, we developed a defense of the National Intelligence
Program for Fiscal Year 197:3 for my presentation to the Appropriations
Committees of the Congress last spring. This was the first time the
Appropriations Committees had been given a comprehensive exposition
on how the community operates and how the various sources of
intelligence are integrated to produce the national intelligence
products.
In the planning field, we have been developing a detailed
set of planning assumptions or guidances which are expected to
govern the development of programs within the national intelligence
community for the FY 1975 and beyond. To help in both planning
and program review a number of Defense Department personnel have
been integrated into the community staff.
The Intelligence Resources Advisory Committee created with
the 5 November directive has met twice. Its Working Group, which
is headed by the Community Comptroller, has met seven times, and
has completed action on four resource-related studies:
- Future needs and costs of intelligence
communications;
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- A SIGINT satellite mix for the FY 1974/75 program
decisions;
- The capabilities and projected costs of the Atomic
Energy Detection System.
The results of these studies are reflected in the FY 1974
resource proposals for the National Intelligence Program.
IRAC-sponsored studies will continue to contribute to resource
decisions. Studies now underway include:
- An evaluation of various U.S. drone systems
employed for intelligence collection;
- A review of U.S. air reconnaissance programs
collecting information around the periphery of denied
areas;
- An examination of imagery needs for 1974-77 as
these impact on present and planned investment
in imagery satellite systems; and
- A study of U.S. intelligence activities and
institutional arrangements in the field of warning.
Earlier I referred to the National Intelligence Program
Memorandum for Fiscal Year 1974 which was submitted to the President
through the Office of Management and Budget on October 15th. This
document responds to the President's directive to provide him with
"an annual detailed review of the needs and the performance of the
intelligence community."
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The main themes of the NIPM are these:
First, the overall size of the intelligence budget appears
about right for the next several years, except perhaps for certain
uncontrollables such as legislated pay increases. A hold-the-line
principle could establish leverage to force absorption of over
100 million dollars annually through reprogramming, productivity
increases, and elimination of lesser priority activities.
Second, the community can accommodate foreseeable requirements
without increases in manpower, and an orderly reduction in manpower
levels should be possible over the next several years.
25X1 Al a^^ i rd, for Fiscal Year 1974 there is a net increase of about
in the current national intelligence request now
under review with OMB. These monies are to provide better collection
for strategic and SALT-related targets and are largely in SIGINT and
imagery developments, and special Navy projects.
Fourth, the highest priority tasks of the intelligence
community are those involved in monitoring and reporting on all
foreign developments that might impact on the strategic balance.
This involves monitoring Soviet and Chinese weapons programs of all
types, support to arms-limiting treaty negotiations and monitoring
compliance with the resulting agreements such as the Limited Test
Ban Treaty, the Strategic Arms Limitations arrangements, and the
Mutual and Balanced Force Reduction treaty when it occurs.
We believe that current: and planned capabilities of the community
will permit us to do these things within reasonable levels of confidence
and time constraints without: major increases in expenditures.
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In the years ahead, the NIPM should serve the President as a
comprehensive account of the needs, structure and performance of the
intelligence community and its resource levels. It will also give
visibility to National Intelligence collection and production
strategies, their program mix and targets.
*~:********
My second assigned responsibility-- that of producing national
intelligence required by the! President and other national consumers--
is closely linked with the charge that the quality, scope and
timeliness of these products be improved.
The intelligence production organizations always have tried to
turn out high quality products, but I think it is only fair to say
that the President's memorandum focused attention on the importance
of continuing attention to the quality of intelligence analysis.
I trust that the national intelligence estimates, the current
intelligence publications, and other intelligence memoranda which
you have seen in the past year reflect this kind of attention.
A Product Review Group has been established in the intelligence
community staff, and part of its responsibility is the support of the
NSCIC Working Group, which has devoted itself primarily to matters
relating to product improvement.
Since a progress report on the NSCIC Working Group program
is to be presented today, I will not expand on this point.
**********
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The President's third charge was that I chair and staff all
community advisory boards and committees.
The hours devoted to these board and committee meetings are
usually time well spent because I am convinced it is essential
that intelligence organizations examine their problems and make
their estimates as a community rather than separately.
As a related point, the addition of a Treasury representative
to the United States Intelligence Board-- as called for in the
President's memorandum-- has been quite beneficial, particularly
in view of the increasing importance of economic intelligence.
**~;*******
The fourth responsibility assigned me by the President-- that
of reconciling intelligence requirements and priorities within
budgetary constraints-- is closely linked with what has already
been said in the discussion of the National Intelligence Program
Memorandum.
The intelligence community has agreed upon a listing of intelligence
objectives, and their priorities, as guidance for the planning and
programming of intelligence resources.
The initial statement, which was issued as a DCI Directive
last January, is now being reviewed by a community task force to
see in what ways it can be improved.
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In addition, the community staff is developing analytical
methodologies to improve our ability to assess the cost effectiveness
of various intelligence programs.
* * * * * * * * * *
Thus far these remarks have been directed almost entirely to
the community aspects of the President's memorandum, but mention
also should be made of the major effort which has been accomplished
in the Department of Defense to bring about the organizational
changes called for by the President.
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A consolidated Defense Wapping Agency and a Defense
Investigative Service have been created. Neither of these
organizations is in the intelligence structure, and resources for
these activities will no longer be carried in the intelligence budget.
**********
As I trust these brief remarks have indicated, the basic thrust
of the initial responses to the President's memorandum has been to
improve community understanding of the interactions of the various
elements of the U.S. intelligence effort and to begin examining
problem areas on a cross-program basis.
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Much work still remains to be done.
The Planning Guidance paper for FY 1975 and beyond now being
drafted by the community staff examines the implications for
intelligence operations posed by the combination of expected
international developments and continuing fiscal constraints.
This Planning Guidance, the annual National Intelligence Program
Memorandum, and our efforts to improve the quality of the
intelligence product provide the basis for continued progress
under the guidelines set forth in the President's memorandum.
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