LETTER TO MR. PETER L. DANNER (SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00985R000300070001-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 19, 2016
• Document Release Date: June 12, 2001
• Sequence Number: 1
• Publication Date: December 6, 1976
• Content Type: LETTER

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
[phone]
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
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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
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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