LETTER TO DAVID A. STOCKMAN FROM JOHN N. MCMAHON

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00816R001000060003-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: August 24, 2007
• Sequence Number: 3
• Publication Date: September 22, 1982
• Content Type: LETTER

Approved For Release 2007/08/24: CIA-RDP85M00816R001000060003-3
Washington,. DC 20503:
The Honorable David A. Stockman
Director
Office of Management and Budget
tions at the end of this fiscal year as a way to manage
hnanpt and shut down essential intelligence functions. Moreover,
is p
"Agency Operations in the Absence of Appropriations." The nature
of the work of the Intelligence Community, involving the protec-
tion of intelligence sources and methods and the conduct of acti-
vities essential to the national security, in many cases will
permit detailed assessments by line managers of their situations
only at the time of a lapse in appropriations. An evaluation at
this time of our options for contingency planning is further
complicated by that portion of our workforce which is overseas.
It is difficult at this time, of course,.:,, to determine the likeli-
hood of the absence of appropriations, and any special
circumstances will have to be taken into account, but I do not
believe that Congress would attempt to use a lapse in approepria
2 2 S EP 1982
Th' res onds to OMB Bulletin No. 80-14, Supplement No. 1,
Dear Mr. Stockman:
25X1
Last year the operational, as well as staff, components
within the Intelligence Community were deemed to be engaged in
the conduct of essential activities and continued their opera-
tions during the funding hiatus resulting from the failure of
Congress to enact appropriations prior to the end of fiscal year
1981. Consistent with what we did last year pursuant to OMB
guidance and direction in light of our particular needs, I would
expect the Community to continue to be exempt in order to assure
that intelligence components-operate as a unit until any funding
crisis has ended. However, I am cognizant of the legal opinion
set forth in the Attorney General's memorandum of January 16,
1981, and will make every effort to expedite identification of
those activities of the staff elements of the DCI and the Central
Intelligence Agency as a whole that can be curtailed if the need
arises. Of course, we would begin cutting in those areas that we
find to have the least potential impact on critical operations.
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 a longer period::?;
The collection, analysis, and production of intelligence would be.
expected to continue, as would special activities and functions
in support of the foregoing. However, we would delay all travel
for administrative purposes, conferences, training, and other
functions not directly related to ongoing operations, and delay
starting new programs, contracts, or procurements without direct
approval in each case, pending enactment of appropriations-
In response to the specific questions you have asked about
our plans for 'a potential shutdown or limitation of activities,
we will in general use the following principles in determining
furloughs or retention of personnel, which shall take effect
within 30 days unless the Director believes it is in the interest
of national security to delay the effect of these procedures for
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All:: overseas personnel will be retained on duty
All' personnel An the U.S. directly supporting the func-
tions' of overseas personnel will be furloughed at a
rate of 50. percent.
All analytic personnel in the U.S. will be furloughed
at a rate of 50 percent.
We would expect, given some notice of a funding hiatus, of
being able to begin implementation of the above plans by the
.third day of a . period of no funding.
All personnel in the U.S. directly supporting technical
.'collection operations and the analysis of data
there from.will be retained at a level of 75 percent.
Administrative staffs will be furloughed at a 'rate of
80 percent.
Sincerely,
John N. McMahon
Acting Director of Central Intelligence
STAT
STAT
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