LETTER TO MR. PETER L. DANNER (SANITIZED)

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CIA-RDP86B00985R000300070001-1
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RIPPUB
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K
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9
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December 19, 2016
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June 12, 2001
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1
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Publication Date: 
December 6, 1976
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LETTER
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Approved,Kor Release 2006/10/05 : CIA-RDP86B00985R000300070001-1 CENTRAL INTELLIGENCE AGENCt 30 8 DEC lan Mr. Peter L. Danner Department of Economics Marquette University Milwaukee, Wisconsin 53233 This is in response to your letter of 8 November to our Director, informing him of the views about CIA of the members of the Association for Social Economics. As Mr. Bush stated in his May letter to William Van Alstyne of the American Association of University Professors, "The Agency has several kinds of relationships with scholars and scholarly institutions. They include negotiated contracts for scientific research and development, contracts for social science research on the many matters that affect foreign policy, paid and unpaid consultations between scholars and CIA research analysts, contacts with individuals who have travelled abroad, and other similar contacts that help us provide the policymakers of our government with information and assessments of foreign develop- ments." We seek conscious and voluntary cooperation from people who can help the foreign policy processes of the United States. We do not seek to embarrass your profession, to interfere with or betray academic freedom, or to obstruct the free search for and exposition of truth. We fully appreciate the benefits of professional scholarship, and freely admit to you that both the CIA and the government would be less able to act wisely in foreign policy if scholars felt that they should isolate themselves from government or government from the fruits of scholarship. In sum, we think our academic relations are strong and that they must be sustained. Our problem is to be certain that the relationship of scholars to CIA is understood on all sides. I hope that this letter is helpful in that way. Sincerely, $goed ~'r Approved'For Release 2006/10/05 : CIA-RDP86B00985R000300070001-1 Letter from DCI to Peter L. Danner, Secretary- Treasurer, Association for Social Economics 24 NOV 1976 Distribution: Orig - Addressee 1 - DCI 1 - DDCI 1 - ER 1 - DDO 1 - A/DCI 1 - DDI/CAR 1 - D/OER 2 - DDI STATINTLDDI/CAR1 6929 (23 Nov 76) PRESIDENT Warren J. Bilkey School of Commerce The University of Wisconsin Madison, WI 53706 FIRST VICE PRESIDENT Stephen T. Worland Department of Economics University of Notre Dame Notre Dame, IN 46556 SECOND VICE PRESIDENT Robert W. Faulhaber Department of Economics De Paul University Chicago, IL 60614 SECRETARY - TREASURER Peter L. Danner Department of Economics Marquette University Milwaukee, WI 53233 EXECUTIVE COUNCIL 1976 \ Thomas J. ilstones Xavier University Cincinnati, OH 45207 Kendal P. Cochran Department of Economics North Texas State University Denton, TX 76203 Irving J. Coffman Department of Economics University of Florida Gainesville, FLA 32601 George F. Rohrlich School of Business Administration Temple University Philadelphia, PA 19122 1976-1977 Donald J. Curran Department of Economics Cleveland State University Cleveland, OH 44115 Helen C. Potter School of Home Economics Purdue University Lafayette, IN 47907 Francis X. Quinn, S.J. School of Business Administration Temple University Philadelphia, PA 19122 REVIEW OF SOCIAL ECONOMY EDITOR William R. Waters DePaul University 2323 North Seminary Chicago, IL 60614 (312) 321-8172 ilovenlber 3, 1976 'Association for, S a1 Econon i.cs rL. George bush, Director Central Intelligence Agency ,TashiaFt;)n, D.C. 20505 The members of the Association for Social Economics have gone on record at their annual meeting, September 13, 1976 in Atlantic City, in joining with the American Association of University Professors in oppos- ing the practice of the Central Intelligence Agency of covertly using members of the academic community when they are engaged in stuying, consulting and doing research in foreign countries. The resolution further cites these reasons as bases for opposing such practices: they are a cause of embarras- sment to academic people and programs; they betray academic freedom; and they compromise the free search for and ex- position of truth. Peter L. Danner Secretary-Treasurer Association for Social Economics Copy; Joseph Duffey, General Secretary American Association of University Professors I Approved For Rel LOI YO. nnv. ersviou6 editions 5 ILL 'HIMF CLA3 BOTTOM UNCLASSIFIED COIVF7DE\T7AL SECRET OFFICIAL ROUTING SLIP TO NAME AND ADDRESS DATE INITIALS 2 Ben Evans 3 4 5 ACTION DIRECT REPLY PREPARE REPLY APPROVAL DISPATCH RECOMMENDATION COMMENT FILE RETURN CONCURRENCE INFORMATION SIGNATURE Remarks: "' . 4 'Y The attached response to Peter Danner, prepared for DCI signature, waste by DDI/CAR. FOLD HERE TO RETURN TO SENDER FROM: NAME. ADDRESS AND PHONE NO. DATE 3E58 Hq, 6929 23 Nov 76 SECRET a GPO. im, 0 - 53!467 (40) Approved For Release 2006110/05: CIA-RDP86B009fEE MEMORANDUM FOR: Chairman, USIh Scientific and Tccl Intelligence Comrdttee FROM SUBJECT REFERENCE 070001-1 3 OGC 'i x5430 0/ ILLEGIB Use of Consultants, Panelists, etc. Under E.O. 11905 i Your Memo to OCC dated 26 March 1,970 1. You requested our opinion as to the requirements of Executive Order 11905 and CIA's Katzenbach Guidelines in connection with relation- ships between individual academics and CIA as well as intelligence community organizations. Your immediate problem pertained to the use of individuals from acadern e as members of an advisory panel to the DCI. A number of panelists have been asked for written statements to the effect that the management level of his college or university is cognizant of his association with the Intelligence Community, and at least one individual has indicated that he is reluctant to do so. In this context, you asked the following ouestions: Is it necessary to have a written statement- from each individual associated with the Intelligence Community? With the Agency? With the Agency acting for the Community?. Does it make a difference whether it is an occasional association--one, two or a few contacts---or a continuing relationship--a 3-year membership on a panel? Have CIA guidelines relating to the IIatzenbaclx reco::?aeraatiolrs been ssul>ei-cedccl in whole or in part? What is required today? This menlorendwn reflects oral advice given to Mr. ;,orphit. 2. There appears to be no legal requirement that an individual academic under contract with the Agenc o_ the Co;timunity is to provide a written statement that the management level of his college or university L aware o` such r..latle s'^in. a c ;' Orc.r.r 11905 n2-d: es CIA relationships with academic institutions :-ether than individual academics. 'The Order, in Section 4(b)(9), provide; that CIA enter into contracts and' arrangements "with academic institutions [_mphasis added] provided Approved For . ease 2006/1,0/.05.: CMSRDP 6 p0985R0003QOQ70001.1 . ft sponsorship is :,wn o~lie appropriate senior c -tats of the academic institutions and to senior project officials," In annotations to She Executive Order prepared by the White Rouse, the proviso to Section 4(b) (9) is further interpreted as follows: 4(b)(9) The proviso at the end of this paragraph requires that the head of a univer_;it~with which the CIA enters a contract must be informed of the agency's sponsorship, as well. as those officials actually heading the project in question, such as the head of a laboratory conducting the research contracted for. [emphasis added] The Order does provide, however, at Section 5(b) that "[f]oreign intelligence agencies shall not engage in, .. (6) Infiltration or undisclosed participation within the United States in any organization for the purpose of reporting on or influencing its activities or members." * W e assume that the relationships with which you are concerned do not involve such circumstances. 3. The Guidelines for Contracting with U.,S. Educational institutions (the so-called CIA "Katzenbach" Guidelines), however, provide that "[c]on sultana and other types of personal service- contracts with professors or other staff members of educational institutions within the United States. .,will, as a general rifle, be made only after assurance is made that appropriate manage- ment officials of the institutions concerned are aware of the proposed relation- ships." These Guidelines were approved by Richard helms as DCI in June, 1967. The purpose behind the Guidelines was to implement a Presidential policy state- ment of March, 1907, which accepted the recommendations of the hatzenbach Committee and directed all agencies of the government to implement it fully. The Committee had rccornmenUed, after a review of CIA relationships with academia, that "[iJt should be the policy of the United States Government that no Federal agency shall provide any Covert financial assistance or support, direct or indirect, to any of the nation's educational or private voluntary organization.s." Although the Presidential policy statement which approved the recommendations of the hatzenbach Committee has, never been rescinded, neither has it been the subject of a subsequent executive order or other Presidential directive, or a. statute. The CIA Guidelines as they pertain to personal services contracts, moreover, appear to go beyond the mandate of the Katzenbach recommendations. Y According to the White House annotations, this "subsection bars infiltration of groups within the U.S. for the purpose of collectuig foreig n intelligence or counterintelligence," but "does not prohibit placement of an individual for the limited purpose of developing associations and credentials to be utilized ,in collecting foreign intelligence or counterintelligence outside of the United 'Approved For Release 2006/10/05 CIA-RbE'86bO0d85R0003bddd0601''1 STATINTL ?r particularly notC`.JU7"thy tlla addressed by headquarters or field rug ulations. In this regard, it is l _ _i_ . " vpr eJ@i]_ILL c co as \V isIL 21S La Cl'Uir!Il r:n and 7.:1 `!.31 VIlarJ. i:,, 4'l ltn l-C>pc^_C`L t0 personal services contract, , therefore, the 1967 Guidelines should be Con- sidered as an expression or DCI policy which has never been aba.ndo.-:ed formally. However, policy in this regard has been under review in recent months and appears to be changing. In 1975, a Review Staff paper cited the 1967 Guidelines provision relating to personal. services contracts and the following statement was made: If an individual v,hu is associated with an educational institution is to be engaged