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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP89B00980R000500150002-2
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RIPPUB
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T
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53
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December 20, 2016
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September 24, 2004
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2
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Publication Date: 
January 1, 1986
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25X1 25X1 25X1 25X1 Approved For R NRO review(s) completed. 1. Office of Special Activities 0980R000500150002-2 The largest component of the Directorate was the Of- fice of Special Activities headed by Brig. Gen. Donald H. mid-1962 from the Directorate for Plans De- Division, OSA experienced a more than 60 Ross. Formed in velopment Projects percent reduction in size.-- from a high of employees -- in the late 1960s but was still the DST's largest entity with positions and a budget of reduction aircraft was a result of having put This large manpower its fleet of OXCART A-12 in permanent storage at Palmdale, California, in mid- 1968. OSA, however, was still in charge of a fleet of U-2Rs, but these aircraft were considered to be a contingency cap-. bility that could be called upon by the U.S. Intelligence Board or higher authority for use in situations where the Air Force U-2 fleet was not diplomatically acceptable. mows 25X1 of 25X1 25X1 %we OSA also continued to oversee the management and security where both the U-2 and A-12 air- craft were tested and pilots were trained. Although OSA assets would be used with great effectiveness on several occasions in the early 1970s, the rationale for the Office and its mission-. grew more and more difficult to defend. " Ultimately, by the end of 1974, it -would cease to exist and its assets would be turned- over to the Air Force, 2. Office of Computer Services By the late 1960s, OCS had almost trebled in size from - its original 1963 authorized strength of in 1969,- which made it the second budget had grown in the same period from this brief time span, the 25X1 to a complement of _ 25X1 largest DS&T unit. Its Office had been through two-complete generations of computer technology and Was embark-- - ing On the acquisition- of third-generation IBM 360 machines. -OCS was-prOviding_support -to more than 250 computer projects T. -2 r'r1, in r?, Approved For Release 200-74p/2&:?.91AFRDP8 Referral Review by NGA 9600980R000500150002-2 25X1 25X1 25X1 Approved Forlt:q.-r9RAFTWA`43 : CIA-RDP89B 0980R000500150002-2 5. Office of Special Projects As the newest of the Directorate's offices, OSP had 25X1 grown from a operation in ? 1965 to positions in 25X1 1969 with a CIAP hudget of just under Because OSP's primary mission, under Director John J. Crowley, was to oversee the development of satellite collection platforms, it actually supervised the expenditure of 25X1 dollars on belonged to the National Reconnaissance Program and not to the Agency. 25X1 25X1 but the funds OSP had inherited from OSA the responsibility for oversee- ing the procurement of the KM-4A and KH-4B camera systems and the return capsules for the nation's original photosatellite effort, Project COR(JNA. This project was already more than a decade old and was in the process of being phased out. CORONA satellites, which collected broad-area search to be replaced by. photography, were 6. Foreign Missile and Space Analysis Center 25X1 -FMSAC_was the second smallest Unit in the Directorate 25X1 with employees and a budget of It had been 25X1 organized in November_1963 at the direction of DCI John A.- Mc- 25X1 wrif?:4," F:Appreoved For Release 2007gq)114 RDP89 B00980R000500150002-2 25X1 Approved For 00980R000500150002-2 Cone specifically to pull together all analysis and interpreta- tion of data concerning. missiles and space. Its founding di- rector had been Carl Duckett, who came to the job from the position as director of U.S. Army .Missile Intelligence Activ- ities. Duckett had hand-picked the FMSAC staff and considered it to be the best in the nation. In 1969 it was headed by David S. Drandwein. .Since its inception, FMSAC provided current analyses on a 24-hour basis and produced finished intelligence on foreign strategic pons) and events.. weapon and space systems (except for defensive wea- in-depth analyses on significant missile and space FMSAC focused primarily on Soviet missile and space developments, but also followed Chinese efforts and, to a les- 25X6 ser extent, those of publication, the Mtssile 25X1 decessor of today's and other countries. and Space Summary (MASS) was Its daily the pre- Science and Weapons Daily Review MASS was supplemented by articles in OSI's monthly SIDs hoc STIRs. FMSAC analysts also responded to questions (SWDR). and ad by pro- gc.iontAfic Intejligence Memoranda, and coordinated on current intelligence and estimates with Directorateof Intel- ligence offices. In cooperation with OSI and DEL, FMSAC helped direct .collection efforts in the -space and missile field. Dur- ing the next five years, FMSAC. and OSI- Would be major- contribu -tors of anall/ses used by the SALT Verification Panel in draft- ing negOtiating positions for the talks in Helsinki and Vien- na. 7. Office of Research and Development Although the smallest of the Directorate's offices, ORD-- by the 25X1 Ieiloyees Agency's R&D budget which, at 25)1 ?toi end of the 1960s had grown to the point where its oversaw the spending :of thr-ee times the--.budget of OSA, more than the half of the was more_Iban Directorate's largest of- peApprpved For Release 200T/r9/2;crcslRDP89 B00980R000500150002-2 25X1 25X1 *ft, No, Approved For 00980R000500150002-2 B. Personnel Changes Lloyd K. Lauderdale, the directorate's associate deputy director since early 1967, resigned his position at the end of March 1969 to become corporate director of electronics for LTV Corporation in Dallas, Texas. Duckett operated without an as- sistant for six months before Dr. Donald H. Steininger arrived on 2 November 1969 from his position as assistant to Presiden- tial Science Adviser Lee A. DuBridge. Steininger's arrival coincided with a number of changes in the Agency's hierarchy. DOT Richard M, Helms named E. Henry "Hank" Knoche to . be deputy director of Planning, Programming, and Budgeting, and John J. Hicks was appOinted executive director of NPIC. Alexander Flax Reconnaissance Office John L. McLucas. On 30 June, the Agency's resigned as director of the National on 17 March 1969 and was replaced by Dr. signed as deputy director, NRC), Robert Naka. Although not an Agency 25X1 for familiar 25X1 January. 1970,- re- and was replaced.by Dr. F. employee, with most Now' Naka had worked and was intimately Early in SIGINT offi- of the Agency's overhead programs. the Agency's cer and Duckett's:special assistant, retired-. - 25X1 In mid-1970, the Director of Special PrOjetts, John J. Crowley, announced his intention to retire. DDS&T Duckett ,AAproved For Release 200T/A4/240:7c9ATRDP89 B00980R000500150002-2 25X1 25X1 Approved For : CIA-RDP89B Now, Meanwhile, 25X1 time to the lic of China 0980R000500150002-2 OSA's aircraft programs were limited at this IU-2s along the coast of the People's Repub- to collect ELINT. ? This effort, which had been underway since 1961, was known as Project TACKLE. The Agency also had a small fleet of U-2Rs based at Edwards Air Force Base, California, which was being used less and less. Known as Project IDEALIST, this 25X1 was to photograph the 25, - v4100 effort's most recent overseas deployment On 20 December 1969, DDS&T Duckett accompanied DCI Helms to a 303 Committee meeting, chaired by Henry Kissinger, which dis- cussed the IDEALIST U-2 program in the light of a memorandum from Deputy Defense Secretary Packard recommending the transfer of CIA's remaining U-2 assets. to the USAF's Strategic Air Com- mand. Duckett pointed out that cancellation could lead to problems with After a of the program 30-minute discussion, all members present fa- vored continuation of the program through. FY-71, with another review before the FY-72 budget was prepared. Kissinger- next brought up the question Budget concerns about the mounting cost of After. listening to Duckett's review General John Mitchell and Kissinger ?"very strange that everybody but important and necessary."a- of Bureau of the of the program, Attorney both said they found ' it BoB thinks this program is - Despite the 303- COmmittee't U-2 decision and President Nix- on's endorsement of same, Deputy Defense Secretary Packard continued :pushing for studies .on consolidation of the Agency and SAC U-2 fleets, In a note to DCI Helms on 17 February 1970, Duckett: said: "r still believe the issue of our staying in the U-2 businets is pridarily policy and not budget He 1 0,, ift-r11,?k ,itratv(1? r'ettl) 25X1 25X1 recommended- that the Agency take no further action an the U-2 -ILLEGIB matter. Approved For Release 2007/03/28 : CIA-RDP896009 OR000500150002-2 Too Secret! Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 Op( (TN II. New Developments: Nixon, Kissinger, and SALT President Richard M. Nixon's election in November 1968 set in motion a chain of events which, over the next five years, had a momentous impact on the Directorate of Science and Tech- nology. Earlier in 1968, when President Lyndon B. Johnson's administration was making a concerted effort to prepare for arms-limitation talks with the Soviet Union, Duckett l. direc- torate began expanding its role beyond that of simply contri- buting to the National Estimates. Unlike his predecessors, Albert D. "Bud" Wheelon and Herbert "Pete" Scoville, Jr., Duck- v.v.-tr. c.v.- rafireNxt141?0----41k.: VVANr ett was a unique 'combination of salesman and politic:iariA who believed in lighting candles, not hiding them. He was in a unique position to make major contributions to any discussions about the Soviet missile threat. Carl Duckett considered himself the Agency's No. 1 missile analyst;- his successor as DDS&T, Leslie Dirks, referred to him as the nation's "technical intelligence czar "1 Duckett. 's ex- pertise was enhanced by his position in the bureaucracy. He had at his beck and call on the FMSAC staff and in OSI's Defen- sive Systems Division the most astute- missile experts in the nation. It should be recalled that Duckett, as the founding director of FMSAC, had personally chosen much of the FMSAC staff, which at this time was headed by David _S. Brandwein. When new pieces of intelligence about Soviet capabilities - became available, Carl Duckett was anxious to bring them to the attention' of those decision-makers who could put-them- to some - use, be they on Capitol Hill or the White House. He strongly believed that CIA had to "sell" its intelligence product if it. hoped to have any influence in the corridors of power. -Duckett was also keenly alert to the fact that Agency influence on Cap-- II-1 WORKING Palpfifbved For Release 200714130/28ecCIA0RDP89 B00980R000500150002-2 STAT 25X1 25X1 Top Secret Approved For Release 2007/03/28 : CIA-RDP89B00980R000500150002-2 On 13 March 1969, Kissinger issued National Security Study Nor Memorandum (NSSM) No. 28 requesting a formal interagency study 25X1 'gone on "SALT Criteria." At'. the same time, he asked CIA to state verifiability of each weapon limitation proposed in NSSM- the 28. Work on verification had since ly 1968 involving been going on within FOSAC's Brandwein and fication had become the Agency OSR's By late March 1969, veri- the--hub around which the planning for the SALT effort would revolve and Carl Duckett was embarked on a long-term and close association with Kissinger which involved educating Nixon's assistant for national security affairs in the intricacies of estimating Soviet strategic missile threat. Before the year was out, Henry Kissinger would be referring to Carl Duckett as "the professor." However., early in 1969, CIA's analysis of the Soviet 88-9 mod-4 triplet left no one happy in the Pentagon or the White House. Defense Secretary Melvin Laird insisted that the three warheads on the mod-4 SCARP were the functional equivalent of MIRVs and as such could overwhelm the U.S.- Minuteman offensive shield. Kissinger, on the other hand, took the position that the SCARP's. triplet "footprint" was designed to match the placement of missiles in the Minuteman launch complex. He hoped thereby to prove that the Minuteman shield was threatened by the Soviets. Kissinger needed this "credible threat" in or- der to justify development of an ABM system which he wanted to use as a bargaining chip in' the forthcoming SALT negotiations. In fact, President Nixon announced on 14 March 1969 his deci- sion to proceed with the phased . deployment of an ABM system called Sentinel, later renamed Safeguard. The question of the Strategic threat posed by the SCARP missile was the subject of a 24 March 1969 telephone request ifrom PFIAB member General Maxwell Taylor -to John, Bross-, the deputy to the DCI for Nat'ional-intelligence Programs-Evaluation II--7 W pApprpved For Release 2007a3/28E5cglAtRDP89 B00980R000500150002-2 25X1 25X1 25X1 Top Secret I Approved For RAIPaSP 7nn7infioR ? CIA-RINDR9R 10980R000500150002-2 *ow' Safeguard and President Nixon met with Soviet Foreign Minister Gromyko. Early in February 1972, Carl Duckett suffered a heart at- tack and spent nearly six weeks recuperating. During his ab- sence, various staff officers filled in for Duckett on the various committees and groups, while Donald Steininger, the assistant DDS&T, kept the Directorate's machinery in opera- tion. On 16 February, with Duckett in the hospital recuper- ating from his heart attack, FMSAC Director Brandwein complain- ed in a memo to ADDS&T Steininger that the DST Office chiefs were not working as a team. He said each chief dealt with DS&T management individually and, as a result, the Director was in the hospital - exhausted from trying to meet all the challenges single-handedly, the Assistant Director was putting in 12-hour days, but most Office chiefs, like himself, had time to work crossword puzzles.. :31 Not until Monday, 13 March 1972; did Duckett resume his duties, and then only part-time. By the end N.01 of March, he had more or less resumed a full schedule. NNW The first quarter of 1972 was a period of relative quies- cence in SALT arena. Duckett attended no meetings of the Veri- fication Panel until 27 and 26 April. In early May, the pace quickened once again in preparation for President Nixon's trip to Moscow. H. ABM and SALT-I Agreements Signed On Thursday afternoon, 25 May 1972, Carl Duckett was invit- ed to the White House Conference Room to attend a ceremony marking the signing in Moscow by President Nixon and Soviet Party Chairman Leonid Brezhnev of a "Declaration on Basic Prin- ciples- of Relations .Between the United States of America and the Union of Soviet Socialists Republics" -that limited the dep_loymeht of anti-ballistic missile. The next day Defense - :1.1-2:3 WORF::: ENS PAppizoved For Release 200Ta9/Zfe:cQIAtRDP89 B00980R000500150002-2 25X1 25X1 25X1 Igp Secr Approved For FI?e 2007/03/28 : CIA-RDP89B 00980R000500150002-2 J. SALT-II, Verification, and the NRP Budget With the transfer of the Office of Weapons Intelligence to the Directorate for Intelligence in November 1976, the DS&T role: in the SALT talks became less active. Unlike Carl DuCk7 ett, :Leslie Dirks was not interested in the analytical aspect of the Directorate or in continuing the role played by Duckett in advising the White House on SALT matters. :He was caught up in the development of intelligence collection systems and the reorganization of the nation's -covert SIGINT collection ef- fort. - Although DST ceased contributing to the policy deci- sion-making process, the Office of Development and Engineering .was deeply ipvolved in the search for new systems of verifi- cation. ?With the inauguration of Jimmy Carter as President in Janu- ary 1977, a, new push began for reaching an even broader accord with the Soviet Union on limiting strategic arms. Once again the .debate within :the_administration and the Congress revolved around this nation's ability to verify any agreement - When NASA's Dr. Hans Mark became Director-of_the National Reconnais- sance,Office-.inAugUst 1977, his major concern was to :determine_ 11-28 WORK T. NO RAPPP:wed For Release 200T/A3/218ocelet4RDP8 B00980R000500150002-2 25X1 25X1 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 25X1 Tnn RPccet Approved For Release 2067/03/28 : CIA-RDP89B Now' 25X1 25X1 25X1 New State of the Directorate, 1970 0980R000500150002-2 At the beginning of the decade of the 1970s, the Director- ate had seemed to reached a plateau at which both its budget and manpower stagnate. In fact, the FY-70 CIAP budget of less than the previous year, whereas its personnel strength had increased by .a modest six - percent to In April and May, the topic of SALT verification was taken up at DCI Helms' morning briefings. On 1 April the pros and cons of releasing satellite photography were debated. In mid- May Helms asked that a verification briefing be prepared which avoided a direct input by Art Lundahl's NPIC in order that the role of photography not be overstated. Office of Special Activities, headed b.)/ Colonel _Donald F. Ross, remained the largest DST entity with a staff of up 25X1 by positions 25X1 -percenttol t ?SA's major U-2-efforts were the ject I from FY-69, but its budget declined by 10 7.1or Pro- known_ as Project TACKLE which _made flights along the periphery of the People's Republic The Office continued to manage the occasional of . China-. and.parti- wnPvimn r.,,Appr;oved For Release 2007r/W2Lk.4,-4RDP89 00980R000500150002-2 STAT 25X1 25X1 o ftP WA') ter) 25X1_ 25X1 25X1 Topae,_' zoo//03/21! . CIA-RDP89600980R000500150002-2 Approved For Flelease 25X1 . Noe gisr" 25X1 Early in the year, a memo to DCI Richard Helms from Deputy Defense Secretary David Packard raised the issue of the Agency consolidating its U-2 assets with the Air Force. Throughout 1970, DS&T officials marshalled their argu- ments for retaining the U-2 programs. Office of Computer Services, headed by budget office. ? with a complement of The Acting Director 177 employees and a the largest DST was tied with OSA as unit had grown steadily in manpower and budget since its establishment and would continue doing so until it was transferred to the Directorate of Management and Services in 1973. John D. lams was named Office director in September. Office of Scientific Intelligence, still headed by Dr. Don- ald Chamberlain, remained the third largest 25X1 manpower,r----lots, and its budget, had -contin- ued_ to decline. Karl Weber remained Dr. Chamberlain's deputy. unit, but both its 25X1 1 that OSI ana- lysts Were unable to keep up with it for lackof personnel; wnPvTmm PAPPrpved For Release 200ppp/2?.APAIRDP89 1920-2 B00980R000500150002-2 25X1 25X1 25X1 25X1 25X1 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 Next 2 Page(s) In Document Exempt Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 25X1 NIO" To Secret Approved For Fie lease 2007/03/28 : CIA-RflPR9IL0098OR0005001500022 itol Hill meant money for CIA's technical collection programs, which were expensive. A. Beginnings of SALT During Johnson Administration As early as March 1968, Duckett was asked by State Depart- ment's General Jack Davis what methods this nation could use to &A determine which missiles the Soviet Union was deploying in :*and 88-4 silos. - At the time. General Davis was preparing a paper on the subject of strategic armaments for Secretary of State Dean Rusk. In his reply, Duckett expressed reservations about this nation's ability to detect the conversion of inter- mediate-range and medium-range missile silos for use by inter- continental ballistic missiles. He also commented on the ab- sence of a U.S. capability for determining the technical dif- ferences between several Soviet anti-ballistic missile (ABM) systems.2 Ten weeks later, in May 1968, Duckett began devoting more attention to the political aspects of the weapons race between .the Soviet Union and the United States. This change in direc- tion was brought about partly by Dr. Ruben Mettler, president of TRW Corporation and the new chairman of the Agency's Stra- tegic. intelligence Panel. In the spring of -1968, Dr. Mettler suggested .reorienting his panel's membership from its emphasis dn technical aspects of strategic weapons to the political as- pects. Although Duckett feared that such a reorientation might challenge the Board of National Estimates, he appreciated Met- .tler's_ concern that -scientists become .involved in the issue of compliance verification.-? Indeed, Duckett's involvement in the strategic-political -arena was to become so intense in the early 1970s that his in- tentions became suspect among high-ranking offidials of the Directorate of Intelligence who felt he was usurping their_ - pre- _vow rogatives. His stint as adviser to Henry Kissinger, President ? I I-2 WORK I NG PepOrT6ved For Release 200f/eit2PUR-IRDP89 B00980R000500150002-2 25X1 25X1 Top Secret I Approved For RP PACP 21107/113/28 ? CIA.R.D.R89BC0980R000500150002-2 No/ President Johnson, to falter. As a result, NatiOnal Security Adviser Kissinger's involvement in the arms limitation arena intensified before the .month was over. At the center of the stormy period set in motion by the strategic arms limitation effort was the question of the Soviet ICBM known as the 55-9, mod-4 triplet, or SCARP. This large, liquid-fueled missile was believed by some analysts within the Intelligence Community to be equipped with three warheads that were multiple, independently-targeted, reentry vehicles (MIRys). Others, particularly Agency -analysts, believed the SCARP had only three multiple reentry vehicles (MRVs). The difference between the two views was that MRVs could not be targeted individually, but merely resulted in a three-burst cluster. All analysis done throughout the government was based on 25X1 work accomplished by analyst who worked for under a CIA contract known as ysis was based onl 25X1 25X1 25X1 the 1960-63 a very clever telemetry FMSAC Chief Brandwein had worked with! period when both were employed by to Brandwein, was a very less permitted his conservative, competent analyst anal- 2 According who never the- rightwing politics to color his Aultimate '_conclusions.6 FMSACs stable of analysts included three men who had worked with Duckett at Huntsville -- and M. Corely Wonus. Brandwein believ- more about the SS-.9 than anyone else in the 25X1 ed that l 'knew 25X1 25X1 _ FMSAC -analysts. United States and that tountry.7 The 25X1 was the finest trajectory ana- Huntsville trio along with - other and R. Evans Hine- man were convinced that the results (..)f the as it wastalled, could not be used to prove that the missile's warheads were independently target- 25X4., ed. In addition to basic research, _FMSAC's 39-9 ana- WORK:INS PAPE Apprroved For Release 2007TH2e8r4DP89B 00980R000500150002-2 25X1 25X1 25X1 25X1 Too Secrpf I `ter' Approved For RLease-20.0210.31284_CIA.R.DP-89E00980R000500150002-2 IV. James Schlesinger: Five Months That Changed CIA In Agency folklore, DCI James R. Schlesinger is considered a "scourge" whose "ruthless" efforts in reorganizing the CIA and reducing its staff might best be compared with the activi- ties of Attila the Hun. After more than a decade, the impact of the changes wrought by Schlesinger seem. much more benign and even far-sightful. If anything, the resentment was engendered more by Schlesinger's management style and philosophy than by any actual harm to the Agency's structure. His personnel cuts were less severe than those under DCI Stansfield Turner and his reorganization more considerate and less radical than the Na- tional Foreign Assessment Center experiment also under Turner. Unlike the dismantling of NFAC and reestablishment of the Di- rectorate of Intelligence, very little of Schlesinger's reor- ganization has had to be undone. Without a doubt, the major beneficiary of Schlesinger's activities was the Directorate of Science and Technology. It grew and prospered during Schlesinger's five-month reign. And it did so because Schlesinger had a concept that involved con- centrating the scientific, research, development, and engineer- ing efforts of CIA under central management. This plan L was carefully thought out before Schlesinger was even offered the job by President Nixon. Of all the DCIs whb came from outside the Agency, it is apparent that James Schlesinger Was the. one best acquainted. with the Agency and its role within the Intel- ligence Community. A. White House Study: "Intelligence Community Review" STAT 25X1 In December 1970, President Nixon -appointed dames Schle- singer!, who was, at the time, the assistant director of the newly established Office. of Management and .Budget (OMB), to . IV-1. WORK INS Ffmu'AP-rprtved For Release 200f/W2eFerk-itIDP89 00980R000500150002-2 25X1 25X1 ? Top Secret I Approved For Fielease-241.0.71031284-CIA.RDP-89E00980R000500150002-2 NNW' sticking point for several senators and Colby was reluctant to serve as DCI until he had been confirmed. The DCI-designate went on extended leave between the time the Senate voted to confirm him, on 2 August, and his swearing in on 4 September 1973. The Acting Director for Central Intelligence during this period was the DDCI, Army Lieutenant General Walters. Unlike previous DDCIs, General Walters refused to assume responsi- bility for the day-to-day operations of the Agency and spent lengthy periods traveling abroad acting as President Nixon's personal ambassador. As a result, during the two-month hiatus between Schlesinger and Colby, Duckett became the unofficial Executive Secretary of the CIA Management Committee. For al- most three years, from July 1973 through April 1976, Carl Duck- ett performed-this function.12 By default, Carl Duckett had become the third-ranking of- ficial of. the Agency as well as the head of CIA's only verti- cally integrated intelligence directorate. Duckett believed that his position had been reinforced by Schlesinger's and Colby's confidences that he might be next in line for the DDCI appointment. Duckett's was a position of power experienced by few Agency employees before or since. Its demands proved greater- than the man and. contributed to his departure in the spring of 1976, but not before he had served as A deputy direc- tor longer than any person in Agency history. Schlesinger's tenure as DCI also had. a significant impact Ii 25X1 on the. Agency's -organization. Shortly after -naming Harold Brownman-to sUcceed.-John Coffey as Deputy Director for Support, Schlesinger authorized the transfer of the Office of Computer Services (OCS) from the DST to the -newly renamed Directorate of .Management and Services (DMS). This move, which became effective on 1=April 1973, was :the -first step- in a program IV-8 vim< Ni3 F,,fsmoved For Release 2007F/R2gieg14-BDP89 B00980R000500150002-2 25X1 25X1 ? Top Secret Approved For FIZelease 2007/03/28 : CIA-RDP89Lb00980R0005001500022 floor where Schlesinger personnally signed them. Headquarters notices are usually signed by the Deputy Director for Manage- ment and Services, but in this case, the DCI felt he could not wait for Drownman's return.16 The movement of NPIC into the DS&T had been under discus- sion since early 1971 when it became apparent that major changes had to be made at NPIC 25X1 25X1 Such changes demanded technology of 25X1 the highest level and in invest- *of ment. The. DI was not equipped to handle programs of such mag- nitude and expense and, thus, transfer of NPIC from the DI to the DST was only logical. NPIC_Director Lundahl was amenable 6 F. pc, s-ca 4 , -11-14.-1A Peat-cc-LI- ki to this_dhange; DDI Edward Proctort?however,-kt was not. He Was ihol* would concern ool 1-e-s4'. Nthe loss of NPIC from his directorateAcause a gap in photo-intelligence expertise. Although he agreed with the reorganization, -Lundahl realized that the challenge Of upY- gr?ading NPIC would require greater physical and mental effort than?he could._ muster. He had suffered for years from arthri- tis, which by this time was becoming incr'easingly more debili- tat-ingi After almost two decades of service to the nation, Art Lundahl chose to retire, h?+kpu('Ali hi W/V4k.i4ik NP.Td. +. t.f-S (C-tr1,? 6(k-kittOP 11A-CAA-4-14-k. Cap(k4) ft fL QICJ frt.wi j) y Lu 06.(0,11 vutcl tAA-c LA.Alyit. iv 4 tLc.,CCC , Iv..-i1 woRK I NE; App,rpved For Release 2007i/10/2a(ba4RDP89 25X1 B00980R000500150002-2 25X1 25X1 TOO Secret Approved For R lease 2007/03/28: CIA-RDP89 00980R000500150002-2 25X1 VI. NPIC Moves to DS&T,. Gets 21st Century Technology By 1973, the National Photographic Interpretation Center (NPIC) had grown to be the largest and most expensive component Within the Directorate of Intelligence with a complement of employees and a budget of From its modest be- ginnings in 1952-53 as the Photo Intelligence Division Igts - (PID) of the old Office of Research, this important activity A had evolved .into a national-level, multidepartmental component of the Intelligence Community. eve /Vat Under Arthur C. Lundahl's deft guidance, PID first orertated into the Photographic Intelligence Center (PIC) in 1956 and ultimately- into NPIC in January 1961. In the beginning, PID worked primarily with captured German Wo-X-) and Japanese +a-xl photography from World War II and some tactical phot s acquired l' 11 . 1 t, ,A ,, ,so et-ploifectlASAP-ack erioSiNciNrplictovitiLAI io CLevivcil 0A-PeA-q41" during the Korean War. A With the advafft Etof the -2 aircraft, thri7s--fac44-ityArapidly assumed national iffiportance as the 944- .v-et?voiced _ Lundahl ,began briefing President Dwight D. Eisen- ) Caiq 1 iieR e ift c a 1., . 5efrCir-ta i4LCA4ibtis Cru.ktf-4-, 71-4,, tt 1.62 c1,44, of (V I CV 4t 1144. 1 c va-tt klutiVIS hower alter every U-2 mission. o ' A ' STAT 25X1 f.A.ALI-4, ((Cflt1 4U yvtr SSie-1( As new reconnaissance systems came on line, NPIC had to _ -gear up to handle the differing types of imagery. In the sum- mer of 1960 NPIC began interpreting the 70mm photography col- lected by the first successful photosatellite system called CORONA and its succession of KH-1, -2, -3, and -4 cameras. In -1963, NPIC began handling the high-resolution 9-inch film from 25X1 the camera. Almost simultaneously it began preparing_ to formats planned for cameras in the Agency's superfast OXCART A-12 aircraft as well as yet a fourth format from the camera being built for the Air For'ce's SR-71 airplane. Nor' interpret three different -.film sizes and VI-1 WORKING pApproved For Release 2onvigadled7A-Rop89 00980R000500150002-2 25X1 25X1 25X1 Tnn qPrrimtl 25X1 Approved For 7flfl711L1I7R00980R000500150002-2 Nirre Noe A. Growing Demands, Diminishing Funds* In were to 25X1 imagery, contrast to its predecessors, whose primary missions collect 'either order of battle or strategic-economic had a unique and demanding mission for _which it was .specifically designed verification of Soviet strategic iil forces. All of this made Lundahl keenly aware that, while quantum leaps were being made in collection technology, owing to budget restrictions NPIC had not kept pace with new developments. . . . . . - fX.p Yot-t ,)-LkA o Cat( 'WU/ V6IVV.14"( lvtAP Ciet' tti- "k- 41- d ct tr _ By the early 1970s, NPIC needed improved light optics, More -accurate mensuration equipment, and advanced com- puter systems in order to provi-d 7erif-ication of Soviet com- pliance with the SALT agreementS. - Being-the largest part of the DirectOrate of _Intelligence,' NPIC had to fight hard for financial resources_ just -to keep its head above water. Al- - VI-2 WORKING PkifiFeved For Release 203&-RDP89 00980R000500150002-2 25X1 25X1 25X1 Top Secret Approved For Release 2007/03/28 : CIA-RDP89B 0980R000500150002-2 though NPIC had managed tb exploit 25X1' RONA, 25X1 the modest amounts of CO- OXCART, and SR-71 film in monitoring Soviet strategic deployment 1Df ICBMs, long-range bombers, anti-bal- listic Center missiles (ABMs), and ballistic-missile submarines, the It needed more and better trained personnel, upgraded equipment, and larger facilities. Lundahl recognized that these objectives could never be attained with the limited resources afforded within the con- straints of the DI 25X1 the about NNW Awe budget. In the DWI., which was overseeing there was also concern to handle the imagery. DDS&T Carl Duckett NPIC's ability was convinced that the transfer of -NPIC to his directorate would facilitate better management of the millions of dollars in contracts necessary for insuring that advancements in ex- ploitation technology would be commensurate With those in col- lection technology.1 Deputy Director for intelligence Edward Proctor, however, was not so sanguine. He was concerned lest his directorate's loss of NPIC -could result in the loss of Agency leadership in substantive photo-intelligence expertise. At this time there was considerable -skepticism about the nation's capability to monitor strategic arms limitation agreements using satellite photography. When he was DCI, Richard Helms was particularly concerned about the effect of the "Potemkin village factor" in using satellite photos to detect Soviet violations, of SALT . agreements. Discussion As to which- of the two directorates wasthe 25X1 - optimum location for NPIC continued through the end of DCI Helm-s' administration and into that of DCI James Schlesinger. Lundahl had tried to convince Helms and DDT Proctor that the 2001 gains in- photo-intelligence capabilities to be derived -from transfer-of- NPIC- to the_ DS&T f7ae outweighed any danger of V I --3 - WORKING PIQPER- o -Apprved For Release airireAK t14-RDP89 300980R000500150002-2 25X1 Nee 25X1 vale' ? Too Secret' Approved For Release 2007/03/28 : CIA-RDP89 0980R000500150002-2 potential losses. It 'was not until Schlesinger's regime, however, that a decision was taken on the matter and NPIC became part of DWI. on 21 May 1973. B. WIC Moves to DST; Lundahl Retires; Hicks Takes Over Al+Iucusit WitA X Notnray--was A LundahlA fully agreeable to transferring his Center to the DWI, -Wok he was a4e.Q--p.aiaLIAl1y aware that the physical and mental demands of the next few years were greater than he could muster. The crippling effects of his arthritis were worsening and he knew he would not be able to oversee the 14=4 41141 of ttis beloved. NPIC. After 20 years of superior service to his country, Arthur Lundahl retired in June 1973 and was replaced by John J. Hicks. Hicks was no newcomer to the arena of photographic inter- pretation. He was an experienced military intelligence analyst who had gained an appreciation for the total intelligence pro- cess in the DI's Office of Current Intelligence and as deputy to Bruce Clarke in the Office of Strategic' Research. Hicks had made important substantive contributions to a number of Nation- capabili- al Intelligence ties Estimates on Soviet strategic and space programs, and had been weapons At the time of his appointment, serving as NPIC's Executive Director. Hicks was 25X1 Under Hicks' leadership, NPIC entered an entirely new era in photo intelligence, both analytical and technical. The. en- hanced duality and quantity of imagery derivedfrorvincreasing- ly sophisticated collection systems demanded new exploitation and reporting procedures. Hicks assumed the reinsof-NPIC at a uniquely, important time: the joint U.S.-USSR Strategic Arms Limitation- accords had just been signed on 21 June 1973. .That . sici he0i.ec.) agreement hinged. onAt-144e-roW-s ability to verify 4Ww.i.e.k. com-- )(25X1 pliance through- the. use of -satellite imagery, The existing -25X1 imagery interpretation rating scale- used by the nation's photo- . VI-4 WORKING Php2pruF-F-1-ved For Release 20113/?Eta-RDP89 00980R000500150002-2 Almost-immediately?the NIIRS -scale--W-a-dopf6d by for evaluating simulated During 1975, all NPIC photo-interpreters were trained and certified for proficiency in using NIIRS. This new scale has since become_ a basic criterion for decompartmenting imagery-derived intelligence produced in the late 1970s and still provides a universal language and common denominator for intelligence and imagery analysts as well as collectors .throughout the Intelligence Community. . . V I -5 WORK I NO FAVeruved For Release 20(TRO3/2/FeaRDP89E 25X1 Top Secret' Approved For Felease 2007/03/28 : interpreters 0980R000500150002-2 was purely. subjective -- it used such descriptors as excellent, good, fair, and poor was outmoded, and was totally inadequate. A national rating system was needed that was independent of the collection system and was applicable to both search and surveillance imagery. It had to be designed to insure consistency in judgment by the photo-interpreters, di- rectly relatable to specific intelligence problems and exploi- tation requirements, and be compatible with computer-based re- cording systems. Hicks appointed an a0 boc SALT Accountability Task Team set to work defining the problem and designing a new sys- By March 1974, the Task Team had developed a refined Intelli- Interpre- which tem. scale gence tation of categories Community. Rating Scale 44-4.44-gough- -9 for use throughout the It .was called the National Imagery (NIIRS) and was tested against 25X1 before it was accepted by COMIREX signatories and promulgated by the U.S. Intelligence Board in September Nape 1974. 25X1 25X1 NNW 00980R000500150002-2 25X1 ,25)(1 25X1 25X1 25X1 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 Next 1 Page(s) In Document Exempt Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 25X1 NOWle Top Secret Approved For Ritlease_20M3/28_:_ag-RDEuB00980R000500150002-2 the mid-1970s, NPIC Director Hicks had to deal with such sub- stantive intelligence concerns as the continued monitoring of the Middle East Disengagement Agreement, Soviet adherence to 04 h ok theASAL1-I1 treat)r,ithe Korean Demilitarized Zoneft, and Soviet infiltration of Third World revolutionary movements in Libya, Ethiopia, Angola, Cuba, and Southeast Asia. Incidental to these major issues, NPIC also used overhead imagery to assess haf-tivtA Uttticfrriohe5 suai AA, the damage caused bYA the Februafsy 1976 ear thquake in Guatemala 25X1 and the Tangshan earthquake in China in August 1976. Noe 'Nem, if FOOTNOTES 1. - Duckett interview. 2. -Executive Order-11826 of 4 January 1975. VI-3 WORKING PARFPOved For Release 2061963altza-RDP89 25X1 B00980R000500150002-2 25X1 25X1 25X1 New Approved For e ret : CIA-RDP89B 30980R000500150002-2 Office of Technical Service, formerly the Technical Ser- vices Division of the Directorate of Plans/Operations, with its 25X1 3f which were contract positions) and budget of became the second largest unit in the Director- ate when it was moved to the DWI in May 1973. John McMahon, INV the Director of ELINT, was moved to South Building to head the new organization on the very day of its transfer into the DS&T. TSD's former 25X1 1973 and his deputy, under McMahon. 25X1 Nue chief, Sidney Gottlieb, retired on 1 July continued in that post 25X1 Office of Computer Services, when it was transferred to the Directorate of*Management and Services in April 1973, had the largest number of slots in the DST, employees, and a 25X1 budget. Director John Earns and his deputy, transferred with their unit when it became the Office of Joint Computer Services. Office gi Special Activitieg was still headed by Brigadier General Wendell Bevan. Its decline was less precipitate in FY- 73 but DNRO John McLucas- would eventually win out in his effort to -,have CIA's -U-2 program transferred to the Air Force.- On 21 November 1973, the NRP ExCom agreed to give OSA'S U-2 assets to the -Air Force- at the _end of FY-74 and decided that no monies h377'77 hinpv ron r.?,Approved For Release 2007rinn 4 iriliAIRDP89 B00980R000500150002-2 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 torate Approved For 00980R000500150002-2 National Photogranhic Intenretation Center continued making preparations for d. DirectorA141Clz named Rutledge P. azzard to Fe direc or of NPIC gained contract slots in FY-75, increasing its author- ized strength to and got a modest budget increase to During FY-75, NPIC employees led the Direc- and the Agency in making suggestions and collecting $9,340 in awards. Office of Technical Service, having survived its public ex- posure during the Watergate investigations of 1974, was in the public view again during 1975. It was thrust into the lime- light in January when DCI Colby testified- before the Church ,-Committee that'CIA had been involved in mail-intercept activi- ties' in New York from 1953 to 1973 and that TSD/OTS was the Agency unit responsible for assisting the FBI. Later in the summer, after the discovery of MKNAOMI's shellfish toxin and _other poisons in a disused laboratory in South Building, OTS was again in public view. ADDS&T Stevens and DCI _Colby testi- fied before the Senate Select Committee on the matter.-_ The toxin was eventually transferred to the Food and Drug Admin- 25X1 - istration : In FY-75, _OTS Director_ David Brandwein and his deputy, 25X1 I Isaw their Office budget reduced byl Nue and its staffing cut byl T lAppf,pved For Release 2007/10L-b,4-.RDP89 00980R000500150002-2 1.1.AtfC4 1.11, att OVA.. 6441 t e r fe. 40, tcgq., OD4.6 . de e-fc, ? 25X1 25X1 25X1 25X1 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 Next 5 Page(s) In Document Exempt Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 25X1 ? Too SPCrPf I Approved For Fie lease 2007/03/28: CIA-RDP89B 0980R000500150002-2 Dirks urged DDCI Carlucci'to issue an Agency notice no later %we than 1 October committing CIA to an incentive bonus plan analo- gous to the Federal SES. bonus. In a separate memo to the Di- rector of Personnel, Dirks said he was fearful lest the new system destroy the flexibility he had for hiring highly tech- nical specialists as SPS officers without regard to supergrade ceilings. He also took exception to limiting bonuses to the Lop 50 percent of SIS cadre. A week later, Dirks complained about plans to include his SPS managers in the SIS schedule which he felt would jeopardized his headroom. National Photographic Interpretation Center Director Rut- ledge Hazzard had a budget of for FY-79 and a 25X1 staff of down one from FY-78. In addition to continuing the upgrading of the NPIC Data System, Hazzard set in motion 25X1 the studies to define future requirements for mensuration, collateral reference, and compu- ter support. Work was also underway on the engineering model of the Imagery Interpretation Station (IISEM) which encountered 25X1 problems with its stereo performance. The requirement for dig- ital soft-copy imagery exploitation was revalidated by an IDEX working group. The challenge would be compatible with by 1985-06. was to develop a system that In April, the Soviet Union shot South Korean airliner over the Kola Peninsula. ed the downed. 25X1 Carter 25X1 25X1 NNW' down a imag- aircr-aft and NPIC delivered prints to President In August and September, the Center began reporting on a buildup of military facilities and supplies at Termez and Kushka near the border with late autumn, photo interpreters borne regiment activity December. The Soviet Afghanistan. In the saw an increase in Soviet air- in that area which intensified in early invasion of Afghanistan began on Christ- avelvilrotvits Iranian e-t,.tt4efft-s stormed the seized 69 U.S. hostages. mas Eve 1979. On A November, American Embassy in Tehran and NPIC analysts began Embassy. situation. The presence monitoring of the of a Soviet brigade-size unit 1979-4 WORKINGP.AA.pEEproR-ved For Release 200f/M/2%91R.-RDP8 9600980R000500150002-2 25X1 25X1 25X1 Zfikl 25X1 25X1, in Cuba Name 25X1 Too Secret Approved For R lease 2007/03/28 : CIA-RDP89B00980R000500150002-2 I NPIC, in cooperation wi71-5-1 the Di's Office of 'Imagery Analysis and DIA, made an exhaus- tive search of imagery to determine how long the brigade had been in Cuba. it was de- termined that the Soviet unit adbath Cuba since the Octo- ber 1962 missile crisis. 1979-5 WORP: I NO Papproved For Release 200116P/213eda1/k4RDP89 B00980R000500150002-2 25X1 25X1 25X1 25X1 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 25X1 25X1 Noe 25X1 Too Secret / CIA-RDP89B 0980R000500150002-2 level. After five reached a plateau of 25X1 25X1 Approved For qlease 2007/03/28: nislots bringing it up to the years of decline, the Office of the DS&T slots and an FY-80 budget of lore National Photographic Interpretation Center began covering the Iran-Iraq War in September and overhead imagery was the primary source of information on the war. A large earthquake shook southern Italy in late November causing widespread deva- station. The Italian Government appealAko the United States in determining the extent and magnitude of the de- for help struction. area and President Carter ordered NPIC provided Italy with tographic enlargements showing the dered increase in food numerous strikes and the prices in formation U-2 photo coverage of the a damage assessment and pho- damage. Poland of the A government-or- ill June resulted in free trade union "Solidarity." By September, Polish unrest reached such a state that WIC analysts began detecting signs of increased Soviet and bloc military activity around Poland. By December, there were signs of Soviet preparations for an invasion and NPIC began preparing a "Summary of Soviet 'Reaction to the Polish Crisis." The crisis abated and the Soviet forces stood down by the beginning throughout the House on the of 1981. Beginning in early April and continuing summer, NPIC prepared reports for the White Mariel Boat Lift from Cuba that brought thousands 25X1 25X1 of Cubans to Florida. -Director Hazzard s FY-80 budget grew by a modest three percent 25X1 to but NPIC's manpower remained constant at for the fourth consecutive year.' 25X1 A New' WORKING 1900-2 mea PNEPoved For Release 200f/M/2PUVRDP89B 00980R000500150002-2 25X1 25X1 25X1 25X1 25X1 25Xiir 25X1 25X1 -vow' Top Secret I Approved For Release 2007/03/28 : CIA-RDP89B 0980R000500150002-2 State of the Directorate, 1981 Another major change occurred in the Agency in January with the arrival on the seventh floor of President Ronald Reagan's campaign manager, William J. Casey, as the new DCI. He was joined. in February by a new DDCI in the person of Admiral Bobby R. Inman, who DDS&T Dirks' of a staff of The Office moved over from his position as director of NSA. fifth year on the sixth floor found him in charge with an FY-81 CIAP budget of of the Director grew by one slot to nand had a budget of National Photogranhic Intergyetation Center in FY-81 got its first manpower increase since FY-77 with the addition of new slots, boosting its complement to Rutledge Hazzard also got a bigger positions. budget, up Director to an abrupt The new Reagan administration caused change in U.S policy vis-a-vis the Palisario revolutionaries in the Western Sahara. Under President Carter, arms sales to Morocco, the object of the Polisario attacks, were restricted. Following King Hassan's appeal for U.S. helps President Reagan immediately ordered U-2 overflights, known as SENIOR LOOK mis- sions, of the Polisario areas and removed the Carter_ bargo.- NPIC analyzed the U-2 imagery and prepared reports Polisario activities arms em iet armor, guns, The Reagan the area as ploitation of the Nicaraguan imagery November, WIC analysts discovered a new 1-also -salled 77-the, BLACKJACK, at the Ramenskoye installa- tion. NPIC assigned a full-time imagery analyst- to the Inter - on and Early in the year, Cuba began sending Soy- other military equipment to Nicaragua. administration ordered SR-71 and U-2 missions well as satellite imagery when possible. NPIC over ex- In Soviet bomber, the 1981-1 WORKING PAPPRoved For Release 200/19F3/219061414RDP89 STAT 25X1 25X1 25X1 25X1 25X1 25X1 STAT 25X1 B00980R000500150002-2 STAT Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 Next 4 Page(s) In Document Exempt Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 25X1 To Secret Approved For ease is s 8 : CIA-RDP89E 00980R000500150002-2 replaced John W. Coffey as Deputy Director for Support; Colby replaced Karamessines as for a brief period and was Nelson; and Schlesinger's retary of Defense the Committee'-also: changed. Deputy Director for Plans/Operations replaced, in turn, by William E. own sudden departure to become Sec- composition of:: the CIA Management. Schlesinger leftjor the Pentagon on 2 'July 1973'. but William Colby, his replacement, ran into diffi- culties --during A protracted series of hearings before the Ben- ate Armed Services Committee which had to ''cihrjrm ment His involvement in the Phoenix Program in sticking-peint for several senators'and Colby-7, f.5W"Orrl serve as DCI until he had been senfl-rmed,.. Went, on extended leave between the time the confirm him, on 2 August, 1973. his appoint- Vietnam was a was reluctant to The DCI-designate Senate voted to and his swearing in on 4 September The Acting Director for Central Intelligence during this per:iodl was the. DDCI, Army Lieutenant General Walters. r previous DDCIs, General Walters ,,rugAW:e to assume bility for the day-to-day operations Unlike responsi- of the Agency and spent lengthy periodstraveling abroad acting as, President. Nixon's personal ambassador.. As a result o during the two-month hiatus. between Schlesinger and Colby, Duckett7-1#247unofficial Executive Secretary of the CIA Management Committee A3P-s-A17 :77-Aost-:A.hr-ege_-yea.Gs---f.TT'O411 ? ni - '-e_tty4IST-m.e....d.--f-urf-ct-ion. 13 utm, 0 25X1 By defaUlto Carl Duckett had become-theAthird-ranking of- ficial of the Agency as well as the head of: CIA's Only verti- cally 'integrated intelligence directorate. Duckett. believed .,that his position had been reinforced by: Schlesinger 's and Colby's confidences that he might be next inline'for -the DDCI appointment. Duckett's was 'a position of power experienced by -few Agency -employees before 'or- since. Its __demands prbyed greater than the man and contributed to ,his departure in the Approved For Release 2007/OVZO. CIA-RDP89 T-- B00980R000500150002-2 25X1 NNW Tnn Rimrrgit Approved For. Release 2007/03/28 : CIA-RDP89 00980R000500150002-2 search, FMSAC,' and OSI's Defensive Systems Division, to be headed by David Brandwein. Duckett also envisioned a Net As- sessments Staff to be h6aded by and a Mission Anal- ysis and Advanced Design Staff headed by Leslie Dirks.15 25X1 Duckett's- letter suggested moving into the DWI the Intel- ligence Directorate's NPIC, OSR, and From the Operations Directorate,' Duckett wanted the Design and Engineering part of the Technical Services Division, Foreign Intelligence and the Air Operations part of Special Operations Division', Not even the new Directorate of Manage- ment and Services escaped Duckett's wish list. He wanted the Office of Communications' R&D unit and its Technical Operations group.: While.: he Hnever succeeded in convincing Schlesinger as to the wisdom of- creating the three staffs, within a matter of months. Duckett had gotten control of much ofhis wish list. Just two:weeks after receiving Duckett's letter, DCI Schler- singer.transferred to the DS&T the Technical Services Division from the newly renamed Directorate of Operations and the Na- tional Photographic Interpretation. Center from the Directorate of Intelligence. Schlesigger.'s seemingly precipitate action :late in the af-_: ternoon of Friday, 4 May 1973 had considerable thought behind it. He had learned during the first weekof May _about the pos- 'sibi:lity::_of a Congressional investigation _ into Howard Hunt's Watergate activities. The DCI was aware of TSD's involvement, :through :-Hunt and 0.-G rdan Liddy, with the:RApublican National Committee's "plumbers" g pana realizea the Agency would CC 441--weae. .v.Ar.ra..4 via 1"4-19.71 _ eventually be pulled into the vortex of any Congressional ac- tion He did not want any Agency reorganization to appear to be part:of a coverup and was anxious that the TSD and NPC IV-10 WORKING PAPPtoved For Release 2001ra3/2fetekeiRDP89 25X1 STAT 25X1 ert 25X1 B00980R000500150002-2 25X1 NNW Top Secret Approved For Release 2007/03/28: CIA-RDP89 0980R000500150002-2 IV. James Schlesinger: Five Months That Changed CIA 25; In Agency folklore, DCI James R. Schlesinger is considered a "scourge" whose "ruthless" efforts in reorganizing the CIA and reducing its staff might best be compared with the activi- ties of Attila the Hun. After more than a decade, the impact of the changes wrought by Schlesinger seem much more benign and even far-sightful. If anything, the resentment was engendered more by Schlesinger's management style and philosophy than by any actual harm to the Agency's structure. His personnel cuts were less severe than those under DCI Stansfield Turner and his reorganization m6re considerate and less radical than the Na- tional Foreign Assessment Center experiment also under Turner. Unlike the dismantling of ?NFAC and reestablishment of the Di-? rectorate of Intelligence, very little of Schlesinger's reor- ganization has had to be undone. Without a doubt, the. 'major beneficiary of Schlesinger's activities was the Directorate of Science and Technology. It grew and prospered .during Schlesinger's five-month reign. And it did so because Schlesinger had a concept that involved con- centrating the scientific, research,- development, and engineer- ing efforts of CIA _under. central management,- This plan __was carefully thought out before Schlesinger was even offered. the - job by President Nixon'. Of all the DC_Is who came from outside the Agency, it iS apparent that James Schlesinger was the one best acquainted with the Agency and its role within the Intel- ligence Community.- - A. White House Study: "Intelligence Community Review" December 1970, President Nixon .apointed Jambs Schle- singer, who-waS,-at the time,. the assistant director.H-of 'the :newly established Office .of Management and_ Budget (OMB), to Iv-1 WORKING PAPER Approved For Release 200-fR8/2r7IZIR0 P8 9600980R000500150002-2 Approved For R Too Secret I elease 2007/03/28: CIA-RDP89 00980R000500150002-2 head a special-study group to look into the agencies and. organ- ization of the Intelligence Community. The group's preliminary report, titled "A Review of the Intelligence Community," was issued in late March 1971. DDS&T Carl E. Duckett reviewed the document and set down his observations and recommendations in a 12 April memo to DCI Helms. He noted that "a number of conclu- sions and assertions regarding the performance of the Intelli- gence Community are incorrect and misleading, but I believe it would be unwise to.attack the paper." Nonetheless, he listed two points that needed to be addressed.1 The first was the assertion that the Director of the Na- tional Reconnaissance Office was "unable to control a large part of his program which is run by the Deputy Director for Science and Technology in CIA." Duckett said this was over- drawn because "the guy who controls the purse strings is in fact controlling the program." Duckett's second point was that the suggestion for turning over to NSA the DST's relatively smalr,Office of ELINT, which had been a major contributor to the _national collection pro- :gram, should be resisted. "This is proposed despite a clear recognition in the report that there are serious management_ problems in various DoD.. intelligence programs, particularly NSA," - ? . Duckett's memo Went on to suggest"establishment of A sep- arate independent'agency.to manage intelligence collection" to. assume responsibility for all national intelligence collection, with a provision that tactical Collection responsibility be ' returned to the military serVices.---Healso suggested that the NRO Executive Committee (ExCom) oversee the entire apparatus. - - -Among the.recommendations- made by the Schlesinger - ? and implemented by: the DOD was the creation of the Post of 11-s-, sistaht Secretary of .Defense (Intelligence)- (ASD/I). At the WORKING P4PER Approved For Release 20017tP.3/kFffit-RDP89 25X1 B00980R000500150002-2 25X1 Too Secret ?Approved For ? - 00980R000500150002-2 -\ same time, President Nixon abolished the position of the Spec- ial Assistant to the President for Science and Technology. -These two developments had a profound influence on the NRO Ex- Com concept -- since 1965, the ExCom had been comprised of the Deputy Secretary of Defense (DepSecDef) as chairman, the DCI, and the President's Science Adviser. By replacing the DepSec- Def with the new ASD/I as the DoD representative on the ExCom and making the DCI chairman of this two-man. panel, President Nixon totally altered the character of this advisory body.. Not only was the ASD/I lower in rank than the DepSecDef, but he did not have dpower of the purse as did the Deputy Secretary, who, . as ExCom chairman, was able to back ExCom decisions with DoD funding. In addition, without the participation of the Science Adviser, the ExCom 'lacked a White House representative. Up to this:, time, the Science Adviser always brought with him a repre- -sentative of the Budget Bureau, who also, had power of the purse and could speak authoritatively on the topic of funding the ex- pensive collection systems. When Schlesinger worked at the Bu- reau of the Budget, it was he who accompanied Science Adviser Lee'DuBridge to NRP ExCom meetings. ? The Agency's response to the Schlesinger report was pre- pared by Executive Director-Comptroller Lawrence White on 15 April 1971. -Duckett's review of White's paper was critical because he felt the response did not address strongly enough the Agency's role in technical collection. Duckett stressed that CIA should hold the line against any attempt to get the Agency Out of reconnaissance .2 25X1 In a -Apr-il 1971 note t?olonel White, ?Duckett suggest- that the agendafor an upcoming deputy directors' meeting at _ - laddress'two -points. The first- was "for each Deputy to explain his _view .of the White House study." The second was.. to replace a scheduled discussion f: the- .National Intelligence Resources Board with "a little soursearching as to'the ob-jec- I V-3 IoRKING PApproved For Release 200711a3/00.ce1AtRDP8 B00980R000500150002-2 25X1 25X1 Top Secret Approved For Release 2007/03/28: CIA-RDP89 00980R000500150002-2 tivity and accuracy of oui,.current intelligence publications as well as NIEs and other documents."3 While the Schlesinger report was critical of the Agency as ,a whole, it had complimentary things to say about the DWI% The report cited expensive technical intelligence collection as worthwhile because it produced better information than old- fashioned political intelligence. Schlesinger .later told Duck- ett_that he believed DST was the ,best managed directorate. in .the Agency.4 B. Duckett and Schlesinger.-- Old Friends, New Circumstances DDS&T Carl Diackett first met James Schlesinger in the late 1960s at NAP ExCom meetings when Schlesinger, a Bureau of the - Budget official, accompanied Presidential Science Adviser Du- Bridge to advise him on program costs. Duckett and Schlesinger got to be "on a friendly basis during that period" until Schle- singer left the Office of Management and Budget to become chairman of the Atomic Energy Commission. *- 25X1 New' In the middle Of -these- negotiations ,' -PreSident:1 Nixon: . _ . - re- lieved .DCI Helms of his job and named Schlesinger to replace , IV-4 WORKING PUSR Approved For Release 200-9?8/APF8111-RDP8 9600980R000500150002-2 25X1 25X1 Tom Sprret 1 Approved For ? - 00980R000500150002-2 him on 2 February 1973. When Duckett learned of -Schlesinger's appointment, he called the DCI-designate at his AEC office and said: "I'm not saying FAm happy to see Dick Helms leave, but I'm happy that you've been chosen. I want you to be assured that I'm anxious to do whatever I can to help." Duckett of to provide the new DCI with any information or briefings he needed.5 IV-5 IAIORK NG PAP1PrOved For Release 2007103/23qoa1AtRDP8 9600980R000500150002-2 25X1 Too Secret Approved For !lease 2007/03/28 : CIA-RDP8913 0980R000500150002-2 Duckett began by Saying the term Clandestine Services *.10 should be abolished from the Agency's lexicon because too many of the employees of -,,the Plans Directorate believed their mis- sion was to be clandestine and not to conduct operations. In Jact, to make the point clear, Duckett suggested changing the directorate's name from Plans to Operations. Schlesinger liked the idea and on Thursday, 1 March 1973) hesigned a directive renaming the directorate.7 25X1 The 14 February Headquarters Notice also announced the es- tablishment of the CIA Management Committee. This was an idea fostered by Executive Director-Comptroller William E. Colby. .Membership on this committee was limited to the DCI as chair- man, the DDCI, Lieutenant General Vernon A. Walters, as vice chairman, Colby as executive secretary, and the four deputy 'directors.. The Office of the Executive Director-Comptroller was suspended. After his return from London, Schlesinger set. out to reduce the size of the Agency. He began this task by calling on Carl Duckett in mid-March to come up with a list of marginal DS&T employees. The DCI began by telling Duckett he believed OBI was inhabited by a bunch of old, tired OB-15s. Duckett told Schlesinger that was untrue, adding that the -DCI had probably been told that by former DDS.11(T Wheelon. Schlesinger admitted - _ that Wheelon was the source of the information. Duckett then . - stated that OSI chief Donald Chamberlain had conducted -a cam- paign over the past several years to have the youngest "branch chiefs in the Agency and had succeeded. Next, the DDS&T said he had a list of employees he thought shoUld--. be released, reti_red, -.or demoted 'which had been prepared-foe.- him by his birectorate's Career ServiCe Board. , -At a Morning. Meeting a short time .qaterl- DCI Schlesinger: : held 7 Up- Duckett's list of names and said: -111 have already made _ clear to all of you. that I think the DST is the best Director- - - . IV-6 WORKING PAPER App roved For Release 200TflewieMat-RDP8 9600980R000500150002-2 .25X1 Upon his return from the White House meeting with President Nixon, DCI Schlesinger stopped at DDS&T Duckett's sixth floor office to tell him .about this new development. Schlesinger also confided. to the DDS&T that the President had specifically told him to tell Carl Duckett that SeneralfWalters would not be in the DDCI slot forever and that there was nothing in the law which said that the DCI and DDCI.could?not both be civilians. Duckett took this to mean-that-he was next-in line for the DDCI position, Several weeks later, DCI-designate Colby related the same story to Duckett-11 ? With the -dRastic changes: that took Place within the JAgency during the spring and summer. Of 1973t- Harold .L. Brownman had. replaced John W, Coffey asDeputy :Director for Support;: Colby: replaced Kar:amessines as _Deputy Director for Plans/Operations for a brief period and was replaCed,'. in. turn, by William E. -:Nelson; and 'Schlesinger's own sudden departure to become Sec-. retary..of-Defense the composition of the CIA :Management: - Committee also changed. Schlesinger left for the PentagOn-on2 July 1973,: but William Colby., his replacement,; '-ran diffi- culties during a protracted SerieSTof.:hearings-beforetheSen-- _ :ate Armed- Services Committee_ which had to confirm 'his-'appoint- ment. ? His involvement - in the Phoenix Program-in Vietnam- was- a = IV-7 WORK.ING PACkifflitoved For Release 2001n08/21PraktRDP89 25X1 Top Secret Approved For !release 2007/03/28 : CIA-RDP89 11100' 00980R000500150002-2 ate we have. These are the numbers Carl has provided so I wouldn't like to see you other deputy directors come up with any smaller numbers than these, percentagewise. u10 C. Schlesinger Moves to Pentagon; Colby Succeeds Him In early May, the DCI was called to the White House and in- formed by President Nixon that he wanted Schlesinger to become Secretary of Defense when Melvin Laird departed 61y. At the time, Schlesinger had been at Langley only three months. As Schlesinger's replacement, the President chose the Agency's current Deputy Director for Operations, William Colby. B00980R000500150002-2 25X1 25X1 Too Secret I Approved For elease 2007103128: CIA-RDP891300980R000500150002-2 sticking point for several senators and Colby was reluctant to imme serve as.DCI until he had been confirmed. The DCI-designate went on extended leaye between the time the Senate voted to confirm him, on 2 August, and his swearing in on 4 September 1973. The Acting Director period was the DDCI, Army previous DDCIs,.:. General bility for the day-to-day operations of the Agency and spent lengthy periods traveling abroad acting as President Nixon's personal ambassador. As a result, during the two-month hiatus between Schlesinger and Colby, Duckett became the unofficial Executive Secretary of the CIA Management Committee. For al- most three years, from July 1973 through April 1976, Carl Duck- ett performed this function. 12 for Central Intelligence during this Lieutenant General Walters. Walters . refused to Unlike assume responsi- By default, Carl Duckett had become the third-ranking of- ficial of the Agency as well as the head of CIA's only verti- cally integrated intelligence directorate. Duckett .believed that his position had :been reinforced. by Schlesinger's and Colby's confidences that he might be next in line for the DDCI appointment. Duckett's was a position of power experienced by few Agency employees before or since. Its demands greater than the man- And _contributed to his ,departure - spring of 1976, but not before he had served as a deputy tor longer than any person in Agency history. proved in the direc- Schlesinger's tenure as DCI also had a significant impact on the Agency's organization. Shortly after _naming _Harold Brownman to succeed John Coffey as-Dep-utyDirector for Support, Schlesinger authorized the -transfer of the Office of Computer Services:(0CS) from the DS&T to the newly. _renamed Directorate of Management and Services -(DM'S) ._ _ This move, which became effective on i April 1973, was the first step _in .-a -program .IV-8- WORK INO PAM:Moved For Release 200Vt02/23EtlIDIALRDP8 9600980R000500150002-2 25X1 25X1 ?f Tnn Rperet 1 Approved For Release 2007/03/28: CIA-RDP89 00980R000500150002-2 aimed at centralizing ll of the Agency's computer resources Nino' into a new Office of Joint Computer Services (OJCS). Three weeks later, the new DCI abolished the Office of Spe- cial Projects which had been headed by Brownman prior to his becoming the DDM&S. Headquarters Notice of 20 April 1973 ? announced the establishment of the Office of Development and Engineering (OD&E) within the DST effective 23 April. OD&E was' ,given the :responsibility for engineering. and system devel- opment in general support of Agency activities. Schlesinger named Leslie C. Dirks to be OD&E's first director and gave him ,the additional responsibility of performing those analyses ne- cessary for developing an overall Agency R&D strategy and plan.13 D. Duckett's Blueprint for an Empire -N Carl Duckett's rapport with James Schlesinger was such that ?1110, he felt secure in making suggestions for rather extensive changes in the Agency's organization. Although his more gran- diose plans were never realized, enough parts of these ideas came to fruition that the result was almost the same. For example, in an informal letter to DCI Schlesinger on 19 April 1973 Duckett .suggested creating three staffs within his Direc- torate. He wanted to set up a Strategic Studies and Future Threat Staff, Comprised of the DI's Office - of Strategic Re- Search, FMSAC, and OSI's Defensive Systems Division, to be .headediby.Dayid..Brandwein. Duckett also envisioned a Net sessments- Staff.. to be headed by and a.MissiOn? Anal- ysis .and Advanced Design Staff headed by-Leslie%Dlrks. 14 Duckett's-letter -.Suggested moving into the DS&T - ligence Directorate's NPIC, From the Operations Directorate, Dt:ickett-wanted the the Intel- Design and Engineering 'part: of the _Technical Sericee. Division,_Foreigh and the ?Air..OperiItions. part of Special 25X4?, Intelligence IV-9 WORKING Approved For Release 200T/10/2?7d1ZRDP89 PQPER _ - B00980R000500150002-2 25X1 25X1 STAT 25X1 25X1 Top Secret Approved Forkelease 2007/03/28: CIA-RDP89 00980R000500150002-2 Operations Division. Ndt even the new Directorate of Manage- ment and Services escaped Duckett's wish list. He wanted the Office of Communications' R&D unit and its Technical Operations group. While he never succeeded in convincing Schlesinger as to the wisdom of creating the three staffs, within a matter of months Duckett had gotten control of much of his wish list. . Just two weeks after receiving Duckett's letter, DCI Schle- singer transferred to the DS&T the Technical Services Division from the newly renamed Directorate of Operations and the Na- tional Photographic Interpretation Center from the Directorate of Intelligence. :Schlesinger's seemingly precipitate action late in the af- ternoon of. Friday, 4 May 1973 had considerable .thought behind it. He had learned during the first week of May about the pos- sibility of a Congressional investigation into Howard Hunt's Nor'. Watergate activities. - The DCI was aware of TSD's involvement, through Hunt and G. Gordon Liddy, with ':t.h*e', Republican National :Committee's ."plumbers" group and realized, the Agency would eventually be pulled into the vortex of any Congressional ac- tion. He did not want any Agency reorganization to appear to . be part of a- coverup and was anxious that the TSD and NPIC -transfers be effective before any formal developments could " - take place on Capitol Hill.15 This was the thinking behind Schlesinger.'s insistence that -DDS&T Carl Duckett get the headquarters notices, prepared for his signature before he left Headquarters that evening. Duck- - ett discoVered that DDM&S Harold Brownman _was. out-. of ? - his assistant, . Robert 'Wattles, was in 25X1 participating in the annual- CIA golfer's' - ties returned to Langley immediately, prepared -town and 25X1,\- Cing T$D)s'transfer and announcing _both effective that day, 4 May, and tool- them to the seventh :outing. Wat- announ-- WORKING PAPER Too Secret Approved For Release 2007/U3/28 : CIA-RDP89 B00980R000500150002-2 25X1 25X1 ??? . Top Secret Approved For 4Iease 2007/03/28 : CIA-RDP89B 0980R000500150002-2 floor where Schlesinger personnally signed them. Headquarters notices are usually signed by the Deputy Director for Manage- ment and Services, but in this case, the DCI felt he could not wait for Brownman's return. 16 The movement of NPIC into the DS&T had been under discus- sion since early 1971 when it became apparent changes had to be made at NPIC Such changes that major demanded technology of the highest level and in invest- ment. The DI was not equipped to handle programs of such mag- nitude and expense and, thus, transfer of NPIC from the DI to the DST was only logical. NPIC Director Lundahl was amenable to this change; DDI Edward Proctor, however, was not. He was concerned lest the loss of NPIC from his directorate cause a gap in photo-intelligence expertise. Although he- agreed- with the reorganization, Lundahl realized that the challenge of up- grading NPIC would require greater physical and mental effort Noe than he could muster. He had suffered for years from arthri- tis, which by this time was becoming increasingly more debili- tating. After. almost two decades of service to the nation, Art . Lundahl chose to retire. 25X1 25X1 .1V-11 - WORKING ?PaRgalovedForRelease2OUnWHOIARDP B00980R000500150002-2 25X1 Too Secret 25X1 1. Approved For R ? - 0980R000500150002-2 FOOTNOTES 1. C.E. Duckett memo for DCI R.M. Helms, 12 Apr 71; Duckett Chrono File. 2. C.E. Duckett memo to Executive Director-Comptroller, ti- tled: "Remarks About 'Comments on a Review of the Intel- ligence Community,'" dated 16 Apr 71, Top Secret; Duckett Chrono File. Duckett note to L. White, 22 Apr 71; Duckett Chrono File. 4. . Duckett interview. 5. 6. 25X1 7. Duckett interview. Duckett's desk calendar. "Organization Change," 14 Feb 73. 25X1 S. Irons had been Schlesinger's secretary at the AEC Duck- ett interview. 25X1 9. Duckett interview; torate of Plans," 1 10. Duckett interview. 11. Duckett interview. 12. Duckett interview. 25X1 13. logy." 14. C.E. Duckett letter to DCI Schlesinger _dated 19 Apr 73;. Duckett ChPono File. Mar 73. "Redesignation of the Direc- 20 Apr 73, "Establishment of Office of Development ngineering of the Directorate of Science and Techno- 15. Duckett interview. 16. Duckett interview. - IV-I2 WORKING PRF ERAPproved For Release 200Tfl613/F8at-RDP 25X1 89600980R000500150002-2 25X1 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 25X1 ? Tao Secret Approved For Illease_2001/113/2&_cadmen9030980R000500150002-2 25X1 ---Islots bringing it up to the years of decline, the Office of the DST Nome 25X1 [slats and an FY-80 budget of Nue 25X1 25X1 to for level. After five reached a plateau of National Photographic Intergretation Center began covering the Iran-Iraq War in September and overhead imagery was the primary source of information on the war. A large earthquake shook southern Italy in late November causing widespread deva- station. The Italian Government appeal to the United States for help in determining the extent and magnitude of the de- struction. President Carter ordered U-2 photo coverage of the area and NPIC provided Italy with a damage assessment and pho- tographic enlargements showing the damage. A government-or- dered increase in food prices in Poland ib June resulted in numerous strikes and the formation of the free trade union "Solidarity." By September, Polish unrest reached such a state that NPIC analysts began detecting signs of increased Soviet and bloc military activity around Poland. By December, there were signs of Soviet preparations for an invasion and NPIC began preparing a "Summary of Soviet 'Reaction to the Polish Crisis." The crisis abated and the Soviet forces stood down by the beginning of 1981. Beginning in early April and continuing throughout the summer, NPIC prepared reports for the White House on the Marie' Boat Lift from Cuba that brought thousands of Cubans to Florida. 1 Director Hazzard's FY-SO budget grew by a modest three percent 25X1 Nome but NPIC!s manpower remained constant at/ the fourth consecutive year. 1980-2 WORKING PksRp'pri.0-Rved For Release 200/6"k2FEr/f-hDP89B 30980R000500150002-2 25X1 25X1 25X1 25X1 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 Next 3 Page(s) In Document Exempt Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 25X1 Nue 25X1 25X1 25X1 25r 25X1 25X1 Top Secret Approved For Release 2007/03/28: CIA-RDP89B State of the Directorate, 1981 0980R000500150002-2 Another major change occurred in the Agency in January with the arrival on the seventh floor of President Ronald Reagan's campaign manager, William J. Casey, as the new DCI. He was joined in February by a new DDCI in the person of Admiral Bobby R. Inman, who DDS&T Dirks' of a staff of moved over from his position as director of NSA. fifth year on the sixth floor found him in charge The Office had a budget of 'with an FY-61 CIAP budget of of the Director grew by one slot tol \and STAT National Photographic Interpretation Center in FY-81 got its first manpower increase since FY-77 with the addition of Director new slots, boosting its complement to positions. Rutledge Hazzard also got a bigger budget, up The new Reagan administration caused change in the Western Sahara. Under President Carter, arms sales to Morocco, the object of the Polisario attacks, were restricted. Following King Hassan's appeal for U.S. help, President Reagan immediately ordered U-2 overflights, known as SENIOR LOOK mis- sions, of the Polisario areas and removed the Carter arms 'em-_ - to an abrupt in U.S policy vis-a-vis the Palisario revolutionaries bargo. NPIC Polisario activities analyzed let armor, guns, the U-2 imagery and prepared reports on Early in the year,. Cuba began sending Soy- and other military equipment to Nicaragua. The Reagan administration ordered SR-71 and U-2 missions over the area as well as satellite imagery when possible. ploitation. of the Nicaraguan imagery November, NPIC analysts discovered a .new NPIC ex- In the Soviet bomber, also called the BLACKJACK, at the Ramenskoye installa- tion.= NPIC assigned _a full-time imagery analyst to the Inter- 1981-1 WORK iNS F'APPRDved For Release 200140/28ENC4IDP89 B00980R000500150002-2 25X1 25X1 25X1 25X1 25X1 STAT 25X1 25X1 Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2 Next 5 Page(s) In Document Exempt Approved For Release 2007/03/28 : CIA-RDP89600980R000500150002-2