AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 1982 FOR INTELLIGENCE ACTIVITIES OF THE U.S. GOVERNMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89M00610R000100020012-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 35
• Document Creation Date: December 20, 2016
• Document Release Date: March 2, 2007
• Sequence Number: 12
• Publication Date: January 1, 1982
• Content Type: REGULATION

Approved For Release 2007/03/03: CIA-RDP89M0 RHO ';I(5&'012-1
61C RECORD COPY
97TH CONGRSBB SENATE REPORT
tat Session No. 97-57
AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 1982 FOR INTELLI-
GENCE ACTIVITIES OF THE U.S. GOVERNMENT, THE INTELLIGENCE
COMMUNITY STAFF, THE CENTRAL INTELLIGENCE AGENCY RETIRE-
MENT AND DISABILITY SYSTEM, AND TO PROVIDE CERTAIN PERSON-
NEL MANAGEMENT AUTHORITIES FOR THE DEFENSE INTELLIGENCE
AGENCY. AND FOR OTHER PURPOSES.
Mr. WALLOP (for Mr. GOLDWATER) from the Select Committee on
Intelligence submitted the following
REPORT
[To accompany S. 1127]
The Select Committee on Intelligence, having considered the
original bill (S. 1127) authorizing appropriations for fiscal year 1982
for intelligence activities of the U.S. Government, the Intelligence
Community Staff, the Central Intelligence Agency Retirement and
Disability System, and to provide certain personnel management
authorities for the Defense Intelligence Agency, and for other pur-
poses, reports favorably thereon without amendment and recom-
mends that the bill do pass.
This bill would:
(1) Authorize appropriations for fiscal year 1982 for (a) intelli-
gence activities of the United States, (b) the Intelligence Communi-
ty Staff, and (c) the CIA Retirement and Disability System;
(2 Authorize the personnel end-strengths as of 30 September
1982 for (a) the Central Intelligence Agency, and (b) the Intelli-
gence Community Staff; and
(3) Authorize supplemental appropriations for fiscal year 1981 for
the intelligence activities of the United States.
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1-
 I Approved For Release 2007/03/03: Cl -RDP89M00610R000100020012-1
F r? lai
OWN"
1-1%1 Pe 1 ies ................................................................................................................................................................................
MOP" aommwiilp staR ................................................... $18.3 $15.4 $15.4
CURDS ................................................................................... 55.3 84.6 84.6 ..........................
TOW ..................... ....... _..._.._................................................................................................................................................
THE CLABl3IFIED REPORT
The classified nature of U.S. intelligence activities prevents the
Committee from disclosing the details of its budgetary recommen-
dations in this Report.
The Committee has, however, prepared a classified report which
describes in detail the full scope and intent of its actions, and the
specific amounts authorized for each of the major intelligence pro-
grams. The Committee intends that the classified report, although
not available to the public, will have the full force of any Senate
Report, and that the intelligence community will comply with the
guidelines, directions, and limitations contained therein.
The classified report is available for review by any member of
the Senate, subject to the provisions of Senate Resolution 400.
SCOPE OF COMMITTEE REVIEw
The Committee, through its Budget Authorization Subcommittee,
conducted a detailed review of the intelligence community's fiscal
year 1982 budget request. This included:
Hearings involving some 20 hours of testimony, which in-
cluded the Director of Central Intelligence, key Defense De-
partment officials, and each of the principal program manag-
ers;
Detailed examination of over 2,000 pages of budget justifica-
tion material, and a number of special studies requested by the
Committee;
Review of written responses from the intelligence communi-
ty to several hundred questions for the record, containing sup-
plemental information on specific subjects or issues; and
Many hours of informal briefings and interviews on major
topics of interest.
This year, the Subcommittee took the initial steps in reorienting
its approach to the budget authorization process. For the first time,
a number of functional hearings were conducted which examined
programs throughout the community involved in similar activities,
such as analysis and production, and foreign counterintelligence
and international terrorism. The Subcommittee found this ap-
proach quite beneficial in understanding the interrelationships
among the various programs associated with a common community
activity, and in highlighting particular strengths and weaknesses
in these activities. The Subcommittee intends to continue and
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
expand upon this approach in reviewing the fiscal year 1983 budget
request.
During the course of the budget authorization process, the Sub-
committee focused its attention on the following key areas:
The ade9uacy of U.S. intelligence capabilities to meet the
community s overall responsibilities;
The identification of major gaps or deficiencies in current ca-
pabilities;
The extent to which the fiscal year 1982 budget proposed
steps to overcome existing deficiencies, and provided the neces-
sary investments to meet future needs;
Steps taken, and future actions needed or planned to im-
prove the quality of analysis and the analytic product;
Improvements needed in human source collection abroad,
covert action capabilities, and in countering foreign espionage
and international terrorism; and
The implications of the space shuttle for future intelligence
missions.
OVERALL COMMITTEE FINDINGS AND RECOMMENDATIONS
The Committee indicated last year that in its judgment the
decade of the 1980's would place a greater burden than ever on the
U.S. intelligence system to provide timely and relevant support to
the foreign and defense policy process. We see no reason to change
this prognosis; indeed, if anything, events of the past year have
served to strengthen our assessment. Key among the many factors
influencing this assessment are the following:
Competition between the U.S. and its principal adversaries is
likely to grow during the 1980's, which will require an even
greater commitment of intelligence resources to adequately
cover the political, military, and economic aspects of this chal-
lenge;
Continued political instability, economic problems, and soci-
etal change in the Third World will require increased attention
because of the growing strategic implications of developments
in these areas for U.S. interests;
Emerging global issues such as energy and other strategic
materials, food resources, population growth, international ter-
rorism, nuclear proliferation, and the transfer of U.S. technol-
ogy of the U.S. and its allies will place additional burdens on
the intelligence system;
Continually changing trends in the intelligence environment
will require the U.S. intelligence system to alter and improve
its capabilities to keep pace; and
Selected collection and processing systems are rapidly be-
coming obsolete or inefficient and need to be replaced with
modern state-of-the-art capabilities.
Resource constraints and inflation during the past decade have
had a significant impact on the intelligence community's ability to
adequately fulfill its mission. The U.S. intelligence system is not
able to deal with multiple crises as we have experienced recently,-
without diverting resources from other high priority missions.
Moreover, in many areas of the third World, coverage by the U.S.
intelligence system is either ar aL
Approved For Release 2007/03/ : ~ -R~A"-ahA MbY6012-1
 Approved For Release 2007/03/03 :,CIA-RDP89M0061OR000100020012-1
the Committee over the past two years are beginning to improve
this situation, but resources will continue to be stretched extremely
thin for the near-term.
Over the longer-term, however, a robustness must be re-estab-
lished in the U.S. intelligence system. We must ensure a healthy
mix of technical collection capabilities with sufficient redundancy
to guard against unexpected compromise or loss; we must expand
the corps of foreign area specialists and linguists, and improve data
processinngg support to analysis; and we must strengthen human
source collection, our ability to influence events abroad through
covert means, and our ability to counter foreign espionage and in-
ternational terrorism. The Committee's recommendations for fiscal
year 1982 are fully supportive of these goals.
Certain areas, such as the quality of analysis and foreign coun-
terintelligence, require special attention and improvement. These
are longer-term problems which the Committee will continue to
pursue to ensure progress continues in the coming years. The Com-
mittee has also identified a number of programmatic issues which
require further study and analysis that are described in the classi-
fied report.
The Committee is persuaded that the U.S. must strengthen and
improve its intelligence capabilities to compete effectively in world
affairs in the decade ahead. The intelligence appropriations recom-
mended for fiscal year 1982, we believe, are essential, and repre-
sent a prudent investment strategy which will enable the intelli-
gence system to be fully responsive to the diversity of policy con-
cerns likely to face the nation in the years ahead.
EVALUATION or REGULATORY IMPACT
In accordance with paragraph 11(b) of Rule XXVI of the Stand-
ing Rules of the Senate, the Committee finds that no regulatory
impact will be incurred in implementing the provisions of this leg-
islation.
CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT
The Committee has complied with section 403 of the Congression-
al Budget and Impoundment Control Act of 1974 to the extent
practicable.
Tm.E I-NATIONAL INTELLIGENCE PROGRAM
Committee recommendations
Details of the Committee's recommendations with respect to the
amounts to be appropriated for intelligence activities under this
title are contained in a classified supplement to this report.
Tm i II-INTELLIGENCE COMMUNITY STAFF
dear (Dollars in millions)
Revised fiscal Amended f isc=l year~t pew,,, ....... 18.3
882 eeque t ...:: : ::::::.:...::..:........................................>........ xM
Committee recommended change ............................................................................................
Committee recommendation ...................................................................................... 15.4
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
Authorization request
The Intelligence Community Staff requested $15.4 million and
245 staff personnel for fiscal year 1982 to support the Director of
Central Intelligence in fulfilling his responsibilities for overall
management and direction of the intelligence community. The de-
creased funding in fiscal year 1982 results from non-recurring costs
associated with development of a new community-wide system for
the security control and safeguarding of intelligence programs and
materials which require special protection.
Committee recommendation
The Committee recommends an appropriation in the amount of
$15,400,000 for the Intelligence Community Staff for fiscal year
1982.
For the fiscal year beginning October 1, 1981, the Committee rec-
ommends a personnel end-strength ceiling of 245 full-time employ-
ees. Such employees may be permanent employees or employees on
detail from other elements of the U.S. Government. Any employee
who is detailed to the Intelligence Community Staff from another
element of the U.S. Government shall be detailed on a reimburs-
able basis, except that an employee may be detailed on a nonreim-
bursable basis for a period of less than one year for performance of
temporary functions as required by the Director of Central Intelli-
gence.
TITLE III-CENTRAL INTELLIGENCE AGENCY RETIREMENT AND
DISABILITY SYSTEM
[Dollars in millions]
Revised fiscal year 1981 program .............................................................................. $55.3
Amended fiscal year 1982 request ............................................................................ 84.6
Committee recommended changes ............................................................................................
Committee recommendation ...................................................................................... 84.6
Authorization request
The Central Intelligence Agency requested $84.6 million in fiscal
year 1981 for the CIA Retirement and Disability fund to finance
the cost of (1) interest on the unfunded liability, (2) annuities at-
tributable to credit allowed for military services, (3) benefits not
met by employee/employer contributions, and (4) the increase in
unfunded liability resulting from liberalized benefits and Federal
pay raises.
The Central Intelligence Agency Retirement Act of 1964 for cer-
tain employees (Public Law 88-643, Oct. 13, 1964) authorized the es-
tablishment of a Central Intelligence Agency retirement and dis-
ability system for a limited number of Agency employees, and au-
thorized the establishment and maintenance of a fund from which
benefits would be paid to qualified beneficiaries.
The benefits structure of CIARDS is essentially the same as for
the civil service retirement system with only minor exceptions.
These exceptions are: (a) Annuities are based upon a straight 2 per-
cent of high-3 average salary for each year of service, not exceeding
35; (b) under stipulated conditions, a participant may, with the con-
sent of the Director, retire or at his direction be retired at age 50
with 20 years of service or a cunt with 25 of Approved For Release 2007103/03 : CI l-RDP89MOOSIU C dMW812-1
 Approved For Release 2007/03/03 : WIA-RDP89M0061OR000100020012-1
may be retired by the Director regardless of age; and (c) retirement
is mandatory at age 65 for personnel in grade GS-18 or above and
at the age 60 for personnel In grades GS-17 and below, except that
the Director may in the public interest extend service up to 5
years.
In order to provide for the continuing solvency of the CIARDS
fund, financing legislation comparable to that enacted for the For-
eign Service retirement disability fund was enacted as Public Law
94-522 (Oct. 17, 1976).
Committee recommendation
The Committee recommends appropriation of the full amount re-
quested for the CIA Retirement and Disability fund for fiscal year
1982.
TITLE IV-SUPPLEMENTAL AUTHORIZATION
P ISCAL YEAR 1981
Committee recommendation
Details of the Committee's recommendations with respect to sup-
plemental appropriations authorized for intelligence activities
under this title are contained in a classified supplement to this
report.
Budget waiver resolution
Pursuant to Section 402(c) of the Congressional Budget Act of
1974, the Committee has reported a budget waiver resolution with
respect to this title.
TITLE V--GENERAL PROVISIONS
SEC. 501. This section authorizes intelligence appropriations to be
increased by such amounts as may be necessary to cover increases
in pay and benefits that may be authorized by subsequent legisla-
tion.
SEC. 502. ADVISORY COMMITTEES AND PERSONNEL.-Subsection (a)
of this section amends section 303(a) of the National Security Act
of 1947 (50 U.S. Code 405(a)) to replace an obsolete $50 a day limit
on compensation for CIA advisory committee personnel and part-
time advisory personnel with one based on the daily rate of a grade
GS-18 under the General Schedule established by section 5332 of
title 5 of the United States Code.
Prior to passage of the Central Intelligence Agency Act of 1949,
section 303(a) of the National Security Act gave the Director of
Central Intelligence specific authority to employ part-time advisory
personnel and to appoint advisory panels and committees. The pro-
vision has remained on the books with a maximum daily pay rate
set at $50, despite the subsequent enactment of section 8 of the CIA
Act (50 U.S. Code 403j) which authorizes, notwithstanding any
other provisions of law, the expenditure of funds for personal serv-
ices as necessary to carry out CIA functions and for personnel and
contractual services otherwise authorized by law and regulations.
This statutory authority permits the CIA to employ its personnel
and to obtain the additional personal services of experts, consult-
Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
7
ants, and other independent contractors, but does not prescribe any
limitation on the compensation of such persons. The relationship
between these two statutes and the effect to be given each has been
somewhat problematical.
The amendment is consistent with government-wide personnel
policies. Previously existing provisions with respect to a $50 per
day limit for the compensation of advisory committee members by
other government agencies have been superseded by the provisions
of the Federal Advisory Committee Act (5 U.S. Code Appendix I).
That Act, which exempts the CIA and the Federal Reserve System
from its coverage because of public disclosure provisions, provides
that advisory committee members shall receive compensation at a
rate not to exceed the rate specified for GS-18 of the General
Schedule. Despite its exemption, the Central Intelligence Agency
has generally adhered to this limitation in the compensation of its
experts and consultants pursuant to its section 8 authorities. The
amendment confirms this practice, while preserving CIA's section 8
authorities for exceptional circumstances where higher compensa-
tion may be warranted for members of advisory committees and
other part-time advisory personnel.
Subsection (b) amends 303 (b) of the National Security Act of
1947 (50 U.S.C. 405(b) et seq.) by deleting the section numbers
"281," "283," and "284" and substituting in lieu thereof the num-
bers "203," and "205," and "207." This change merely reflects cur-
rent law, since sections 281, 283, and 284 of title 18, United States
Code have been repealed and replaced by sections 203, 205 and 207,
respectively,
SEC. 503. FIREARMS AUThOIUTY.-This section amends section 5(d)
of the CIA Act of 1949 (50 U.S.C. 403f) to clarify the Agency's au-
thority to permit its ersonnel to carry firearms. At present, sec-
tion 5(d) provides autphority for couriers and guards to carry fire-
arms when engaged in the transportation of confidential docu-
ments and materials. The amendment makes it clear that CIA per-
sonnel may carry firearms to the extent necessary to carry out
other authorized Agency functions, including the protection of clas-
sified documents and materials not being transported, training em-
ployees in the use of firearms, the protection of certain Agency per-
sonnel, Agency installations and other property, and the protection
of defectors or foreign persons visiting the United States under
Agency auspices who may be targets of assassination or abduction
attempts. As indicated by the use of the words "including, but not
limited to," this amendment is not as an exclusive list of author-
ized agency functions. The Committee wishes to emphasize that
this amendment in no way is intended to modify section 102(dX3) of
the National Security Act of 1947 (50 U.S.C. 403(dX3)) which pro-
vides that the CIA shall have "no police, subpena law enforcement
powers, or internal security functions." If the Director authorizes
personnel to carry firearms for other than the specific purposes
enumerated in the amendment, it is the Committees intent that he
will report such instances to this Committee.
The language of the amendment makes it clear that the Director
may designate personnel to carry firearms only if it is necessary
for the performance of authorized Agency functions. CIA presently
designates certain personnel to carry firearms in the performance
of all the functions enumerated in the amendment. At present, CCi~Ap
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03 $CIA-RDP89M00610R000100020012-1
reports that less than 50 of its employees carry firearms with the
United States at any given time. The committee does not expect
any significant increase in this number as a result of this amend-
ment.
In the absence of this amendment, CIA has relied for its authori-
ty not only on section 5(d) of the CIA Act of 1949, but also on the
inherent authority of the sovereign and the right of self-defense of
the individual. CIA has also found support in its responsibility
under the National Security Act to protect intelligence sources and
methods from unauthorized disclosure (50 U.S.C. 403(dX3)) and
from National Security Council directives and memoranda which
have generally authorized the Agency to take necessary action in
the interest of national security to protect CIA functions and per-
sonnel, and otherwise carry out the Agency's foreign intelligence
responsibilities. Reliance has also been placed on section 1-811 of
Executive Order 12036 which provides that the CIA shall "[p]rotect
the security of its installations, activities, information, and person-
nel by appropriate means...."
CIA has relied on the foregoing .authorities to support
Agen-
cy's established policy that the CIA may permit its s personnel to
to
carry firearms to the extent necessary to carry out its authorized
functions. The amendment gives explicit statutory recognition to
this policy and obviates any concern that the current provisions of
section 5(d) of the CIA Act might be construed as restrictive. Clari-
fication of the Agency's firearms authority would be particularly
useful in simplifying any legal proceedings which might result in
the event that Agency personnel were forced to use firearms in the
course of their official duties.
Sac. 504. UNAUTHORIZED USE OF CENTRAL INTELLIGENCE AGENCY
NAME, INITIALS, OR SEAL-This section amends the Central Intelli-
gence Agency Act of 1949 (50 U.S.C. 403a-4031) so as to afford the
Central Intelligence Agency name, initials and seal protection
against false advertising or misuse similar to that which 18 U.S.C.
709 presently provided to FBI and to a host of other federal agen-
cies. This amendment corrects an incongruous omission in current
law. The mission and function of the CIA are clearly as important
and sensitive as those of the FBI and of the other departments and
agencies presently protected. In light of past abuses of authority as-
cribed to the CIA, moreover, it is particularly important that the
integrity of the Agency's name and initials be preserved and pro-
tected from misuse in connection with any merchandise, imperson-
ation, solicitation or commercial activity in a manner reasonably
calculated to convey the impression that such use is approved or
authorized by the CIA. The amendment authorizes the Attorney
General to institute civil proceedings in district courts to enjoin
prohibited acts or practices.
SEC. 505. CENTRAL Imau.Ioixca AGENCY ALLowANCc:B, BENEFITS,
AND TRAVEL-This section supplements and clarifies the expendi-
ture authority of the Director of Central Intelligence under the
Central Intelligence Agency Act of 1949 (50 U.S.C. 403a-4031).
Subsection (a) would authorize payment to CIA personnel and
their dependents the allowances and benefits provided to the For-
eign Service under Chapter 9 of the Foreign Service Act of 1980.
The need for this provision arises from constraints on the broad ex-
penditure authority in section 8 of the CIA Act (50 U.S.C. 403j)
Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
 Approved For Release 2007/03/03: CIA-9RDP89M00610R000100020012-1
caused by limiting language in section 4 of that Act (50 U.S.C.
403c). As a consequence, it is unclear whether several of the new
benefits enacted in the Foreign Service Act-of 1980 can be provided
to intelligence officers under section 8. These benefits include:
The provision of family accompaniment of employees on
TDY (temporary duty assignments).
The provision on travel for necessary dental care abroad.
The provision on visits by children to parents with whom
they do not regularly reside.
Subsection (a) also permits the DCI to pay such additional
allowances and benefits as may be necessary to meet the special re-
quirements of work related to intelligence activities. One problem
which could be remedied by this provision is the disparity in bene-
fits afforded Central Intelligence Agency employees moving from a
foreign post to a domestic location outside the Washington, D.C.
metropolitan area as compared to the benefits afforded Agency em-
ployees moving between domestic locations. Although personnel
reassigned from overseas locations to domestic locations outside the
Washington, D.C. area often incur relocation expenses beyond
those normally associated with transfers to or from overseas to the
Washington, D.C. area, these expenses are not reimbursable under
existing law. The resultant disadvantages which accrue to employ-
ees asked to transfer from foreign posts to locations outside the
Washington, D.C. area have created serious obstacles to the most
effective utilization of intelligence personnel. This new provision
would correct this problem by allowing the DCI to authorize reim-
bursement for this unique type of transfer. CIA estimates that
there would be no more than thirty reimbursable transfers per
year during the next five fiscal years with an estimated cost of less
than $85,000 per fiscal year.
The additional authority would also enable the DCI to overcome
obstacles to personnel assignments caused by the Agency's inability
under current law to compensate employees for expenses associated
with the breaking of leases when it becomes necessary to make
overseas reassignments before the scheduled completion of domes-
tic tours. CIA estimates the cost of solving this problem at substan-
tially less than $100,000 per fiscal year. This cost is minimal when
compared to the benefits that would accrue from the enhancement
of the Agency's ability to transfer its personnel where and when
they are most needed.
Subsection (a) is also designed to provide the DCI with the flexi-
bility to act quickly to meet the speical requirements of work relat-
ed to intelligence activities. Such flexibility is essential in an age of
dramatic political change, where unforeseen expenditures may be
necessary. It is the Committee's intent that the DCI's annual
report include a section discussing how this special authority has
been utilized.
Subsection (b) would enable the DCI to promulgate domestic
travel regulations to reflect unique intelligence requirements. The
DCI's authority to adopt travel regulations is limited in section 4 of
.the CIA Act to overseas travel. Government-wide regulations on do-
mestic travel do not take into account the nature of intelligence
work. The need to maintain cover, transport classified material, or
accompany defectors or foreign visitors under sensitive circum-
stances creates requirements that are extremely difficult to deal
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 1 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
10
with in the context of government-wide regulations and documen.
tation procedures which were not designed with such consider.
ations in mind. CIA states that this provision will result in' long-
run cost savings attributable to better designed and more efficient
travel rules.
It is expected that the DCI will exercise his new authority to pro-
vide additional allowances and benefits and to adopt domestic
travel regulations juidiciously in order to meet the special needs of
intelligence work not adequately addressed by other law. In this
connection, the CIA has indicated that it will be sensitive to the
fact that differences in allowances and benefits among government
personnel serving in comparable circumstances create morale prob-
lems. This, it would not be appropriate in ordinary circumstances
to provide additional travel allowances to CIA employees for do-
mestic changes of station. In addition, the Committee also expects
the DCI to take care that new authorities provided by section 505
will be used to eliminate indicators that might aid persons who
seek to identify and expose intelligence officers serving under
cover.
SEC. 506. NATIONAL SECURITY AGENCY PERSONNEL BENEFITS AND
ALLOWANCES.-This section would amend a benefits and allowances
provision that was added last year to the National Security Agency
Act of 1959 (50 U.S.C. 402 note) and that applies to designated De-
partment of Defense cryptologic personnel. The provision became
law before enactment of the Foreign Service Act of 1980, and refers
to sections of the Foreign Service Act of 1946. Although the For-
eign Service Act of 1980 contains a savings clause for such refer-
ences to the Act of 1946, ambiguities have arisen because of differ-
ences in scope and subject matter between the corresponding sec-
tions in the Acts of 1946 and 1980. Section 506 would eliminate this
problem by deleting from subsection 9(bXl) of the National Security
Agency Act of 1959 references to the Foreign Service Act of 1946
and substituting a reference to the Act of 1980. Section 502 would
also ensure that designated Department of Defense cryptologic per-
sonnel can receive benefits and allowances comparable to those
provided to their Central Intelligence Agency counterparts serving
under similar circumstances.
SEC. 507. UNAUTHORIZED USE OF NATIONAL SECURITY AGENCY
NAME, INITIALS, OR SEAL-This section amends the National Secu-
rity Act of 1959 (50 U.S.C. 402 note) so as to afford the National
Security Agency name, initials and seal the same protection pro-
vided to the CIA name, initials and seal in section 504 of this bill.
Sac. 508. CRYPTOLOGIC LINGUIST TRAINING.-This section amends
the National Security Act of 1959 to provide authority to the Direc-
tor, National Security Agency, to arrange for language and related
training of civilian and military cryptologic personnel, and to es-
tablish a cryptologic linguist reserve.
During the past several years, the Committee became cognizant
of the fact that the intelligence community, most acutely NSA, has
been experiencing difficulties in the recruitment, training and re-
tention of qualified linguists in numbers sufficient to meet both
routine and crisis demands. The Committee directed NSA to review
the linguist situation and to delineate the specific problems con-
fronted, along with recommendations as to how they might be over-
come. The NSA review reported the following situation, which is
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
11
reflected in independent probings by the Committee staff and sev-
eral governmental bodies:
People trained in foreign language skills are not being
graduated from American educational institutions in num-
bers sufficient to meet the demands for such skills govern-
mentwide, but particularly in the intelligence community.
There is a shortage of skilled, fully-trained linguists in
NSA and the military cryptologic elements.
Existing government institutions and training authori-
ties provide for the basic, and in some instances, advanced
instructional needs of NSA, but these institutions do not
provide for most of the advanced instructional needs-such
as rapid translation and transcription-that are unique to
cryptologic linguist functions.
NSA's in-house training resources suffer from a lack of
adequate authority to engage and retain qualified instruc-
tors on a long term basis. For example, many of these con-
tract instructors are presently ineligible for participation
in the Civil Service Retirement Program.
Given the requisite authority, NSA could benefit greatly
from several mechanisms to promote skill improvement
and from the development of a skilled surge capability
which could be utilized during crisis periods and for other
special needs.
NSA could also benefit from clear authority to develop
mutually-beneficial cooperative arrangements with educa-
tional institutions and to support or promote programs of
instruction that will meet cryptologic needs and provide
sources of new linguists.
Pursuant to the Committee's directive, NSA advanced a legisla-
tive initiative which would provide the Director with clear, statu-
tory authority to redress some of these problems in a comprehen-
sive fashion. The Director of NSA or the Secretary of Defense al-
ready have statutory or administrative authority for some of the
activities in this legislation. However, the legislation does grant
NSA some new authority which could not be provided administra-
tively and such provisions are highlighted in the sectional analysis.
The initiative was reviewed by the members and staff of the Com-
mittee. The Committee agreed unanimously that the proposed leg-
islation, incorporating minor alterations developed in consultation
with NSA, formed a solid foundation for coping with the aforemen-
tioned problems. Although the Office of the Secretary of Defense
has not yet formally approved this proposal, it has expressed its
support for this initiative and for the general concept that the Di-
rector of NSA should have the leading role in developing DOD
cryptologic training programs.
The legislation amends the National Security Act of 1959 to
grant the Director of NSA authority to:
Facilitate long-term employment of specially-qualified
instructors who support unique needs.
Work with and provide financial support to educational
institutions and government training facilities for the de-
velopment of language training programs that will support
NSA needs.
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/031 IA-RDP89M00610R000100020012-1
Establish a reserve of cryptologic linguists recruited
from among a group of former NSA cryptologic linguists
and other personnel who have the skill to perform such,
functions. Such individuals would agree to undergo period-
ic training to maintain their relevant skills and to return
to work when needed.
Pay the costs of training, incentives, and active employ-
ment pay (or the difference between the individual's retire-
ment pay and active duty pay for retirees) for the mem-
bers of this linguist reserve.
Pay the expense of training personnel to acquire the ad-
vanced language proficiency required for the cryptologic
mission.
Pay incentives to currently-employed cryptologic lin-
guists to improve their skills.
SECTIONAL ANALYSIS
Section 508 amends the National Security Act of 1959, which sets
our administrative authorities for the National Security Agency, to
add a new subsection (b) to section 10 of that Act. Subsection (b)
would provide authority to the Director, National Security Agency,
on behalf of the Secretary of Defense, to arrange for appropriate
language and related training of civilian and military cryptologic
personnel.
Subsection (bXl) reaffirms the Director's authority to establish
policy concerning the training and instruction to be provided civil-
ian and military cryptologic personnel, including the specification
of required functional and geographic specializations. In addition,
subsection (bXl) exempts domestic training and cooperative ar-
rangements with non-government entities from the Training Act
(chapter 41, title 5, U.S. Code). NSA is currently exempt from cer-
tain restrictions in the Training Act pertaining to payment of
travel allowances to individuals assigned to long-term training
overseas.
Subsection (bX2) reaffirms NSA's authority to arrange for train-
ing and instruction for civilian and military cryptologic personnel
with other Government agencies and at non-government institu-
tions. In addition, it would exempt NSA from the limitations of the
Training Act. This subsection would permit better use of other gov-
ernment facilities and greater and more effective use of private in-
stitutions, particularly institutions that indicate a willingness to
enter into cooperative arrangements of mutual benefit. NSA al-
ready trains the bulk of its linguists at government facilities and
will continue to do so. This provision would facilitate the training
of cryptologic linguists and analysts at non-government educational
institutions.
Subsection (bX3) provides statutory authority to support directly
programs undertaken by institutions that furnish language and
language-related skills that are unique to the cryptologic mission,
and to provide assistance to cooperating educational institutions
that agree to maintain such procrams of instruction or expertise.
This subsection reaffirms authority to contract or cooperate with
educational institutions under existing contracting authority of the
Inter-Governmental Personnel Act of 1970 and the Training Act.
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
13
The subsection provides new authority with respect to grants to
such institutions and some cooperative arrangements.
In connection with the authority in subsection (bX3), it is expect-
ed that the program will involve relationships with a few institu-
tions at the outset and undergo a modest expansion over the long
term depending on experience and future requirements. NSA ex-
pects to enter into cooperative arrangements with educational in-
stitutions to support the retention of an existing language capabili-
ty or the establishment of a language capability for which NSA has
a requirement. NSA is particularly interested in supporting lan-
guage programs in the more esoteric languages for which other
sources of students and instruction do not exist. NSA's relationship
with educational institutions would be conducted pursuant to the
provisions of Section 2-203 of Executive Order 12036.
Subsection (bX4) provides statutory authority to obtain and
retain on both short- and long-term bases instructors, linguists or
special project personnel, as required to provide training or per-
form language-related tasks. Personnel obtained on a long-term
basis would be afforded the opportunity, which most now lack, to
participate in the Civil Service Retirement Program with the goal
of making continued employment more attractive. This provision
also affirms the authority to obtain the services of such personnel
by contract, provided they are not permitted access to classified in-
formation as that term is defined by section 304 of the Internal Se-
curity Act of 1950 (50 U.S.C. 834), unless they meet the standards
of that law and such access is necessary. Public Law 88-290 defines
that term to mean the categories of information specifically desig-
nated by a U.S. Government Agency for limited or restricted dis-
semination or distribution (classified cryptologic information as
enumerated in section 798 of title 18, U.S. Code).
This subsection reaffirms existing authority to contract for such
services, provides a new exemption from the provisions of the Serv-
ice Contract Act of 1965 (79 Stat. 1034), and provides new authority
to permit such personnel to participate in the Civil Service Retire-
ment Program provided they make the required contribution. NSA
currently retains the services of a small number of instructors and
special project personnel. These personnel are needed primarily to
offer advanced instruction or services not available elsewhere, in-
house instruction not requiring travel, and instruction in unique
terminology and communication.
Subsection (bX5) authorizes payment of the expenses of tuition
and other charges for the training of current and former or retired
military and civilian cryptologic personnel or other qualified indi-
viduals who are assigned or detailed for language and related
training, orientation, or instruction. This subsection reaffirms ex-
isting authority with respect to current civilian and military cryp-
tologic linguist personnel and adds new authority concerning those
personnel who agree to enter the cryptologic linguist reserve pro-
gram. This provision, in conjunction with subsection (bX2), will
greatly facilitate the training of the limited number of current
NSA personnel and members of the linguist reserve program who
are unable to utilize government training p ms.
Subsection (bX6) authorizes the payment of appropriate benefits
and allowances to current and former or retired personnel assigned
to training at other government facilities or private institutions.
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: CII44,-RDP89M00610R000100020012-1
This subsection reaffirms existing authority with respect to current
civilian and military cryptologic linguist personnel, and adds new
authority concerning those personnel who agree to enter the cryp-
tologic linguist reserve program. In addition, the subsection pro-
vides authority to pay travel and relocation benefits and
allowances in accordance with chapters 57 and 59 of title 5, U.S.
Code, to individuals assigned to long-term training away from their
current post. This subsection provides new authority which re-
moves restrictions contained in the Training Act in connection
with long-term domestic training assignments. Such restrictions
have constituted disincentives to such assignments which include,
for example, lengthy language training programs. The subsection
also clarifies existing authority concerning overseas assignments
with respect to the applicability of chapter 59.
Subsection (bX7) authorizes the payment of special monetary or
other incentives without regard to restrictions in law pertaining to
dual compensation, in order to encourage civilian cryptologic per-
sonnel to acquire and retain proficiency in foreign languages or
special related abilities needed by NSA (military personnel incen-
tives are authorized separately in the Defense Authorization Act.)
In addition, this subsection authorizes the payment of special mon-
etary incentives.to former or retired NSA employees and military
cryptologic personnel or other qualified individuals who agree to
retain existing language proficiency skills and to return to active
service with NSA during periods of emergency need as determined
by the Director, NSA. This latter authority would provide the basis
for a cryptologic linguist reserve to meet crises and surge require-
ments.
This subsection provides new authority. It is anticipated that
modest incentives would be provided to retain skilled linguists in
existing critical positions and to encourage qualified linguists to
obtain second or third language skills to broaden their usefulness,
particularly with respect to esoteric languages of varying impor-
tance. Although no final decisions have been made on the incentive
program for current employees, a specified monthly amount tied to
one or more skill levels is an option currently under consideration.
Both the CIA and the Foreign Service provide such monetary in-
centives to their employees who acquire new or maintain existing
language skills. For the cryptol c linguist reserve program, NSA
anticipates the establishment OT a yearly incentive of less than
$1,000, subject to increase due to inflation, coupled with the pay-
ment of training expenses and the payment of the difference be-
tween retirement compensation and the comparable salary level
for the position being filled during the time the individual returns
to duty. The creation of this cryptologic linguist reserve is not ex-
pected to interfere with the operation of existing military cryptolo-
gic linguist reserve units. The NSA with tologic linguist reserve is
expected to be composed of civilians the requisite skills, most
of whom are likely to be retired former NSA employees, who are
not engaged in full-time employment and are, therefore, available
for immediate recall to service by the Director of NSA.
Subsection (bX8) provides for the payment of the expenses of tu-
ition and related costa of language and orientation training for
family members of personnel assigned overseas. NSA expects to
continue its present practice of using existing NSA or Foreign
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: Cl- RDP89M00610R000100020012-1
Service Institute programs for the training of family members of a
limited number of personnel. The new authority would only be
used when such individuals are assigned to overseas positions and
either time does not permit use of those facilities or the requisite
course of training is not available. Similar benefits are available to
the families of Defense attaches, a larger number of CIA personnel,
and all Foreign Service Officers.
Subsections (bX9) and (bX10) provide for the recoupment of the
expenses of training provided under this section should a current
employee elect not to serve for the requisite period of time speci-
fied in section 4108 of title 5, U.S. Code. Current employees would
be subject to the provisions of section 4108. Cryptologic linguist re-
serve personnel would be subject to the recoupment provision
should they refuse to return to work when requested. The provi-
sions of section 4108 are not generally applicable to this category of
personnel as it is not possible to apply a 3-for-1 service require-
ment, nor is it likely that they would be employed by some other
agency of the government. The Director is accorded the authority
to waive this requirement where equity or the public interest dic-
tates such a waiver.
SEC. 509. ADMINISTRATIVE PROVISIONS RELATING TO THE FEDERAL
BUREAU OF INVESTIGATION.-This section provides certain adminis-
trative authorities needed for the collection of foreign intelligence
and foreign counterintelligence by the FBI. Since FY 1979 similar
FBI authorities for both law enforcement operations and collection
of foreign intelligence and foreign counterintelligence have been
provided in the annual Justice Department authorization bills and
continuing resolutions. The purpose of section 509 is to provide per-
manent authorities for the collection of foreign intelligence and
foreign counterintelligence and to modify certain requirements
that are inappropriate in this field.
In general, the FBI would be authorized to lease property, enter
into contracts, purchase property, establish proprietaries, use pro-
ceeds therefrom to offset expenses, and deposit funds in banks in a
manner that conceals its identity or role. Such activities could be
conducted without regard to any other federal law which might
otherwise cause the Government's role to be divulged.
Chapter 33 of title 28 is the permanent statutory authority for
the FBI. Section 509 amends this chapter to add a new section 538
entitled "special authorities for foreign intelligence and foreign
counterintelligence purposes." This amendment does not address
FBI activities undertaken solely for the detection and prosecution
of crimes against the United States. The enactment of express au-
thorities for foreign intelligence and foreign counterintelligence
purposes is not intended to prejudice possible reliance on implied
authorities for law enforcement.
Subsection (a) of new section 538(a) authorizes the FBI to engage
in specified activities in a manner which conceals its identity or
role, e.g., under cover or pretext. This authority may be exercised
under three basic conditions.
First, the activities are to be engaged in for the purpose of col-
lecting foreign intelligence and foreign counterintelligence author-
ized by law. Such responsibilities are vested in the FBI by statute
and Executive order, and they are subject to congressional over-
Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
16
sight by the House and Senate Intelligence Committees under sec-
tion 501 of the National Security Act of 1947.
Second, the activities are to be engaged in pursuant to proce-
dures established by the Attorney General. Such procedures should
include requirements deemed appropriate by the Attorney General,
in consultation with the FBI Director, for prior certification by des-
ignated officials of the necessity for activities authorized by this
section. These requirements may vary in accordance with such fac-
tors as the amount of money involved, the duration of the activity,
the fiscal risk, and the degree of sensitivity of the proposed actions
(e.g., passive intelligence gathering versus active commercial oper-
ation) or subjects (e.g., foreign governments versus U.S. persons) of
the intelligence or counterintelligence activity. Ordinarily, the
prior approval of the Director of the FBI or a designated Assistant
Director should be required, except in insignificant or routine cases
or emergencies which would be appropriately authorized by field
office heads. The procedures should also specify criteria for cases in
which prior approval by the Attorney General or his designee
would be required. The Committee also expects that a review mech-
anism would be established, including periodic assessments of the
implementation of this provision with a view to determining what,
if any, changes are needed in the statute or the implementing pro-
cedures. The Attorney General's guidelines for domestic undercov-
er activities issued on January 5, 1981, may provide a useful start-
ing point in the development of procedures to implement section
538(a). However, section 538(a) procedures may vary from the law
enforcement guidelines to take into account the different charac-
teristics of foreign intelligence and foreign counterintelligence col-
lection activities. The Committee expects to be consulted prior to
adoption of these procedures.
Third, the activities are to be engaged in only if public knowl-
edge that the Government is involved in the activity could reason-
ably be expected to inhibit or otherwise interfere with the author-
ize collection of foreign intelligence or foreign counterintelligence.
Subject to these basic conditions, the FBI is authorized to engage
in five types of activities in a manner which conceals its identity or
role for the purpose of collecting foreign intelligence and foreign
counterintelligence.
(1) The FBI may lease, rent or otherwise contract for real proper-
ty, personal property and personal services within the United
States, the District of Columbia, and the territories and possessions
of the United States.
(2) The FBI may purchase property, buildings or other facilities
and construct or alter such property, buildings or facilities as mayy
be necessary to carry out its responsibilities to collect foreign intel-
ligence and foreign counterintelligence.
(3) The FBI may establish or acquire proprietary corporations or
other business entities and operate such on a commercial basis.
Any such entity may engage in any activity which may be engaged
in by the FBI including all activities described in this section. How-
ever, it is intended that the purposes for which such entity is estab-
lished and operated should relate to the collection of foreign intelli-
gence and foreign counterintelligence.
(4) The FBI may use the proceeds generated by an activity au-
thorized by this section, such as the establishment and operation of
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: CIA-ftDP89M00610R000100020012-1
a business entity, to offset necessary and reasonable expenses in-
curred in such activity. The balance of such proceeds shall be de-
posited in the Treasury of the United States as miscellaneous re-
ceipts upon the completion of the activity or sooner if the same can
be accomplished without risk of compromising the activity.
(5) The FBI may deposit appropriated funds and proceeds derived
from an activity authorized by this section in banks or other finan-
cial institutions.
Subsection (b) of new section 538 provides for external review
whenever any FBI proprietary authorized by this section whose net
value exceeds $150,000 is to be liquidated, sold, or otherwise dis-
posed of. As much in advance as the FBI Director or his designee
shall determine is practicable, the FBI shall report the circum-
stances of the intended liquidation, sale, or other disposition to the
Attorney General and to the House Permanent Select Committee
on Intelligence and the Senate Select Committee on Intelligence.
Reporting to the Intelligence Committees is in lieu of the require-
ment in the Justice Department authorization language that re-
ports be made to the Comptroller General. Section 538(b) also re-
quires that the proceeds from the liquidation, sale, or other disposi-
tion, after all obligations and costs of the proprietary have been
met, shall be deposited in the Treasury of the United States as mis-
cellaneous receipts.
Subsection (c) of new section 538 provides that section 538 shall
not be modified, limited, suspended or superseded by any provision
enacted after the effective date of this section unless the subse-
quent provision expressly modifies or suspends this section.
Section 538 makes several changes in the requirements con-
tained in previous annual Justice Department authorization lan-
guage. First, as permanent legislation, it eliminates the need for
annual re-enactment of authority. The Select Committee on Intelli-
gence has determined that the types of activities engaged in by the
FBI in this area should be based on specific, permanent legal au-
thority to enhance the effectiveness of its collection of foreign intel-
ligence and foreign counterintelligence. Second, the amendment
eliminates specific statutory requirements for written certifications
by the FBI Director and the Attorney General that each action is
necessary for the conduct of an undercover operation. The Select
Committee on Intelligence has concluded that such requirements
are unnecessarily rigid for activities in the foreign intelligence and
foreign counterintelligence field and that the Attorney General
should have the discretion to establish appropriate certification
and review procedures in consultation with the FBI Director. Final-
ly, the provisions for external review of the disposition of propri-
etaries are modified to apply when the value exceeds $150,000
(rather than $50,000) and to require reporting to the House and
Senate Intelligence Committees (instead of the Comptroller Gener-
al). The Select Committee believes these modifications establish a
more realistic and appropriate procedure for such review in this
field.
The Select Committee's recommendations are based on the con-
tinuing review of FBI foreign intelligence and foreign counterintel-
ligence collection activities that the Committee has conducted
through the intelligence budget authorization process and other
oversight practices. The Select Committee will continue to examine
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/031CIA-RDP89M0061OR000100020012-1
such activities to provide appropriate oversight. Moreover, the FBI
is required to keep the Select Committee fully and currently in-
formed of such activities in accordance with the provisions of Sec-
tion 501 of the National Security Act of 1947.
SEC. 510. PROTECTION OR INTELLIGENCE PERSONNEL.-THIS section
amends or adds new penalties to the criminal code to provide
greater protection for the personal safety of intelligence agency
employees, individuals who are admitted to permanent residency in
the United States because of their contribution to our nation's in-
telligence efforts, and persons present in our country under the
auspices of the Intelligence Community.
Subsection (a) amends section 1114 of title 18, United States
Code, to make the murder or manslaughter of an officer or employ-
ee of the Intelligence Community a federal crime, if the officer or
employee was performing his official duties when the act was com-
mitted, or if the act was committed to account of the performance
of his official duties. Inclusion of the phrase "not already covered
under the terms of this section" takes cognizance of the fact that
the intelligence element of one entity within the Intelligence Com-
munity, the Federal Bureau of Investigation, is already covered
under current law, which includes a broad spectrum of federal offi-
cers and employees.
The amendment is intended to correct a serious and incongruous
omission in current law by giving officers and employees of the In-
telligence Community the protection of 18 U.S.C. 1114. The amend-
ment defines Intelligence Community as in section 4-207 of Execu-
tive Order 12036 ("United States Intelligence Activities," January
24, 1978) or its successors. The amendment also enlarges the pro-
tections afforded all of the agencies, departments and officials
listed in section 114 of title 18 by extending federal jurisdiction to
include "attempts to kill." Attempts to murder would be punish-
able by imprisonment for not more than twenty years.
In addition, inclusion in 18 U.S.C. 1114 of "officers or employees
of any department or agency within the Intelligence Community"
automatically extends to such individuals, by statutory reference,
the protections afforded under 18 U.S.C. 111, "Assaulting, resisting,
or impeding certain officers or employees [of the United States.]"
Subsection (b) amends Chapter 51 or title 18, United States Code,
by adding a new section 1118 entitled "Murder, manslaughter, as-
saults, threats, extortion, or kidnapping of persons given entry into
the United States for permanent residence pursuant to section 7 of
the Central Intelligence Agency Act of 1949." Persons who have
been given entry into the United States under that section (50
U.S.C. 403h) ("section 7 persons") are admitted to permanent resi-
dence because of their special contributions to the national intelli-
gence mission. These are persons who have worked to furthr the
national security interests of the United States in foreign coun-
tries, placing their careers and lives in jeopardy. These individuals,
who may have been calandestine intelligence agents, sources or de-
fectors, often reside in the United States under assumed identities
and sometimes continue to provide ongoing assistance to the for-
eign intelligence activities of the United States. Subsection (a) of
proposed section 1118 would make the murder, manslaughter, or
attempted murder of such individuals a federal crime and would
fix punishment for the criminal acts. Subsection (b) of proposed sec-
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: CIW-RDP89M0061OR000100020012-1
tion 1118 would make conduct proscribed by section 112, 878, and
1201 of title 18 federal crime offenses when such conduct is direct-
ed against section 7 persons in the United States. Offenses which
would be covered include assaults, threats, extortion, and kidnap-
ping.
Section 7 persons merit the protection of federal jurisdiction over
certain criminal acts directed against them. Such acts may be di-
rected against these persons precisely because of the activities
which led to their having been given entry into the United States
under the CIA Act, and federal 'urisdiction is thus in the national
security interest of the United States. It is understood by the Ex-
ecutive Branch and the Committee that federal jurisdiction will be
invoked only where there is reason to believe that there is, in fact,
a connection between an individual's status as a section 7 person
(or the events that gave rise to such status) and the conduct direct-
ed against such person.
Subsection (c) amends Chapter 51 of title 18, United States Code,
by adding a new section 1119 entitled "Murder, manslaughter, as-
saults, threats, extortion, or kidnapping of persons present in the
United States under intelligence auspices." Persons in the United
States under the auspices of departments or agencies within the In-
telligence Community generally include foreign nationals whose
temporary presence in the United States furthers United States in-
telligence objectives. This category of individuals could include in-
telligence sources, members of foreign intelligence services, and
foreign nationals working abroad for the United States. According
such persons the protection of federal jurisdiction over certain
criminal acts directed against them is in the national security in-
terest of the United States.
Subsection (a) of new section 1119 of title 18 would make the
murder, manslaughter, or attempted murder of such individuals a
federal crime and would fix punishment for the criminal acts. Sub-
section (b) of proposed section 1119 would make conduct proscribed
by sections 112, 878, and 1201 of title 18 federal criminal offenses
when such conduct is directed against a person present in the
United States under intelligence auspices. Offenses which would be
covered include assaults, threats, extortions, and kidnapping.
TITLE IV-DEFENSE INTELLIGENCE AGENCY PERSONNEL
MANAGEMENT
During its authorization hearings, the Committee considered the
personnel management systems of the three major components of
the intelligence community-CIA, NSA, and DIA-and their
impact on the quality of intelligence analysis. It was evident that
DIA does not have the same flexibility currently available to CIA
and NSA under applicable statutes. As a consequence, DIA has
been significantly handicapped in its ability to recruit and reward
outstanding analysts and other intelligence specialists and other-
wise to operate an affective civilian personnel system. If the bene-
fits of "competitive analysis," a concept which both Administration
and the Committee strongly suport, are to be realized, it is impera-
tive that DIA have analytical capabilities comparable to its sister
agencies. Title VI of the bill responds to this problem by, among
other things, exempting DIA from classification provisions of civil
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
20
service laws; authorizing DIA to establish a Senior Defense Intelli-
gence Executive Service comparable to the government-wide Senior
Executive Service; and giving authority to the Secretary of Defense
to terminate any civilian employee of DIA if he deems it advisable
in the interests of the United States, notwithstanding the proce-
dures of title 5, U.S. Code.
The Committee believes that title VI would enhance DIA's capa-
bilities to attract and retain high quality personnel in competition
with other intelligence agencies. Flexibility to establish additional
civilian executive positions would permit the Agency to develop
and retain adequate in-house expertise on the broad geographical
and topical intelligence interests to meet growing intelligence re-
quirements. Further, through the Senior Defense Intelligence Serv-
ice, senior executive would be provided incentives for performance
and rewarded for excellence. Classification authority would be ob-
tained to permit establishment of compensation based on individu-
al capabilities and ensure timely assignment and utilization of high
quality personnel to meet changing emphasis in intelligence inter-
ests. DIA would achieve maximum utilization of authorized man-
power through enhanced and simplified authorities for termination
of employees determined to be unacceptable. Finally, by exempting
DIA from certain government-wide disclosure requirements the
personnel system could function more effectively and ensure essen-
tial protection of national security information.
DIA states that title VI will result in additional costs, the actual
amount of which cannot be accurately determined. However, these
costs are estimated to be relatively small and will be absorbed
within authorized appropriation levels. It is anticipated title VI
will be offset by efficiencies to be realized by relief from current
cumbersome procedures.
SECTIONAL ANALYSIS
SEC. 601. This section provides that title VI may be cited as the
"Defense Intelligence Agency Personnel Management Act of 1981".
SEC. 602. This section amends title 10, United States Code, by
adding a new section 1587 which authorizes the Secretary of De-
fense to establish an integrated civilian personnel management
system within the Defense Intelligence Agency (DIA). New section
1587 would accomplish the following:
Subsection (a) authorizes the Secretary of Defense to establish po-
sitions, appoint individuals and fix pay in relation to the General
Schedule (GS) and Senior Executive Service (SES) rates.
Subsection (b) authorizes the Secretary of Defense to establish a
Senior Defense Intelligence Executive Service within the DIA and
to pay personnel appointed to it in accordance with the pay pre-
scribed in the Civil Service Reform Act for the Senior Executive
Service.
Using its enabling statutory authority, CIA has established an
executive service patterned on the Senior Executive Service. DIA
and NSA were excluded from provisions of the Senior Executive
Service established under the Civil Service Reform Act of 1978. The
Committee wishes to note with approval earlier initiatives to
secure legislation to authorize NSA to establish a Senior Crypt-
ologic Executive Service. A measure sponsored by Senators Ma-
 Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
21
thias, Goldwater, Chafes and Durenberger was reported by the
Committee on October 2, 1980 (S. 2216, Senate Rep. No. 96-1014.)
No floor action was taken on that bill.in the 96th Congress, but re-
newed efforts are expected in the current Congress.
Subsection (b)(1) authorizes up to 27 positions to be established
for the Senior Defense Intelligence Executive Service and to be
paid at rates provided for the Senior Executive Service.
Subsection (bX2) authorizes additional positions for certain pro-
fessional engineers, scientists and military intelligence analysts to
be paid at rates provided for the Senior Executive Service and an
oversight provision by which the Secretary of Defense can review
the number of positions so established.
Subsection (bX3) provides the authorization necessary to award
ranks to appointees in the Senior Defense Intelligence Executive
Service comparable to ranks available to appointees in the Senior
Executive Service.
Subsection (bX4) places limits on the number of ranks allowed
during any fiscal year comparable to that for the Senior Executive
Service.
Subsection (bX5) specifies the amount of pay associated with rank
awards comparable to that for the Senior Executive Service.
Subsection (bX6) provides the authorization necessary to grant
sabbaticals to appointees in the Senior Defense Intelligence Execu-
tive Service to the same extent as is available to appointees in the
Senior Executive Service.
Subsection (bX7) removes the current limitations on accumula-
tion of annual leave for appointees in the Senior Defense Intelli-
gence Executive Service the same as such limitations was removed
from appointees in the Senior Executive Service.
Subsection (bX8) provides for a report to Congress concerning op-
eration under the Senior Defense Intelligence Executive Service.
Subsection (c) authorizes a prevailing rate system of basis com-
pensation for positions in or under which the Agency may employ
individuals in a trade, craft or manual labor occupation.
Subsection (d) authorizes additional compensation for employees
stationed outside the continental United States or in Alaska at
rates not to exceed those authorized by 5 U.S.C. 5941(a).
Subsection (e) would permit DIA to withhold disclosure of infor-
mation on the organization, function, activities, or personnel ap-
pointed except for information required by Congress to accomplish
normal functions.
Subsection (f) would authorize the Secretary of Defense to termi-
nate employment of any civilian member whenever he deems such
termination necessary or advisable in the interest of the United
States. Termination authority may be delegated only to the Deputy
Secretary of Defense and the Director, Defense Intelligence
Agency. Termination action would be appealable to the Secretary
of Defense.
Ssc. 603. This section provides for early retirement for those re-
moved from the Senior Defense Intelligence Executive Services for
less than fully successful performance, similar to provisions for the
retirement of Senior Executive appointees. Those who do not meet
the age or service requirements for early retirement would be reas-
signed to another Senior Executive position or moved to a non-
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/0322 IA-RDP89M00610R000100020012-1
Senior Defense Intelligence Executive Service Position elsewhere
in the Agency at a level equivalent to GS-15.
SEC. 604. This section amends section 2108 of title 5 of the United
States Code to exclude from the definition "preference eligible" ap-
plicants for, or members of, the Senior Defense Intelligence Execu-
tive Service.
SEC. 605. This section amends 5 U.S.C. 5102(axl) to remove the
Defense Intelligence Agency from the coverage of the General
Schedule classification and pay system; amends 5 U.S.C. 5342(axl)
to remove the Defense Intelligence Agency from the coverage of
the Federal Wage System; and amends 5 U.S.C. 7103(aX3) to ex-
pressly exempt the Defense Intelligence Agency by law from cover-
age under the Labor Management Relations provisions of title 5.
SEC. 606. This section specifies the date on which the provision of
title VI will take effect.
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill, as
reported, are shown as follows (existing law proposed to be omitted
is enclosed in brackets, new matter is printed in italic, existing law
in which no change is proposed is shown in roman):
UNITED STATES CODE
PART III-EMPLOYEES
Subpart A-General Provisions
CHAPTER 21-DEFINITIONS
f 2108. Veteran; disabled veteran; preference eligible
For purposes of this title-
"preference eligible" means, except as provided in para-
graph (4) of this sectoin-
? ? ? ? ? ? ?
but does not include applicants for, or members of, the Senior Ex-
ecutive Service, the Senior Defense Intelligence Executive Service, or
the General Accounting Office.
Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
23
Subpart D-Pay and Allowances
? 5102. Definitions, application
(a) For the purpose of this chapter ' ? '
(1) "agency" means-
but does not include ' ' ?
(vii) the Panama Canal Commission;
(viii) the National Security Agency, Department of De-
fense; [or]
(ix) the General Accounting Office: or
(x) the Defense Intelligence Agency, Department of De-
fense;
? 5342. Definition; application
(a) For purposes of this subchapter-
(1) "agency" means an executive agency; but does not in-
clude-
(H) the National Security Agency, Department of Defense;
(I) the Bureau of Engraving and Printing, except for the pur-
poses of section 5349 of this title; [or]
(J) the General Accounting Office; or
(K) the Defense Intelligence Agency, Department of Defense;
Subpart F - Employee Relations
CHAPTER 71-POLICIES
SUBCHAPTER I-EMPLOYEE ORGANIZATIONS
?7103. Definitions; application
(a) For the purpose of this chapter-
(3) "agency" means an Executive agency (including a non-ap-
propriated fund instrumentality described in section 2105(c) of
this title and the Veterans' Canteen Service, Veterans' Admin-
Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
24
istration), the Library of Congress, and the Government Print-
ing Office, but does not include-
(F) the Federal Labor Relations Authority; [or]
(G) the Federal Service Impasses Panel; or
(H) the Defense Intelligence Agency;
Subpart G-Insurance and Annuities
?8336. Immediate retirement
(k) A member of the Senior Defense Intelligence Executive Service
who is removed from the Senior Defense Intelligence Executive Serv-
ice for less than fully successful performance after completing 25
years of service or after becoming 50 years of age and completing 20
years o service is entitled to an annuity.
[(k) (1) . * .
? 8339. Computation of annuity
(h) The annuity computed under subsection (a), (b), (05), and (f)
of this section for an employee retiring under [section 8336 (d), (h),
or (j)] section 8336 (d), (h), 0), or (k) of this title is reduced by '/6 of
1 percent for each full month the employee is under 55 years of age
at the date of separation. The annuity computed under subsections
(c) and (0 of this section for a Member retiring under the second or
third sentence of section 8336(g) of this title or the third sentence
of section 8338(b) of this title is reduced by Y 2 of 1 percent for each
full month not in excess of 60 months, 1/6 of 1 percent for each full
month in excess of 60 months the Members is under 60 years of age
at the date of separation.
 Approved For Release 2007/03/03: CL 5RDP89M00610R000100020012-1
Subtitle A-General Military Law
Sec.
[1580. Repealed]
1581. Appointment; professional and scientific services.
1582. Professional and scientific services: reports to Congress on appointments.
1583. Employment of certain persons without compensation.
1584. Laws relating to employment of noncitizens: not applicable to research and
development activities.
1585. Carrying firearms.
1586. Rotation of career-conditional and career employees assigned to duty outside
the United States.
1587. Civilian personnel management in the Defense Intelligence Agency.
? 1587. Civilian personnel management in the Defense Intelligence
Agency
(a)(1) The Secretary of Defense (or his designee) may, without
regard to the provisions of title 5 relating to the establishment of
(and appointment to) positions in the civil service-
(A) establish such positions for civilian officers and employees
in the Defense Intelligence Agency as may be necessary to carry
out the functions of such Agency, and
(B) appoint individuals to such positions.
(2) The Secretary of Defense (or his designee) shall fix the rates of
basic pay for positions established under paragraph (1) in relation
to the rates of basic pay contained in the General Schedule under
section 5332 of title 5 for positions subject to such Schedule which
have corresponding levels of duties and responsibilities. Except for
positions in the Senior Defense Intelligence Executive Service, no of-
ficer or employee of the Defense Intelligence Agency may be paid
basic compensation at a rote in excess of the highest rote of basic
pay contained in such General Schedule.
(b)(l) Notwithstanding subsection (a), the Secretary of De
fense (or
his designee) may establish a Senior Defense Intelligence Executive
Service in the Defense Intelligence Agency comparable to the Senior
Executive Service established under subchapter II of chapter J1 of
title 5. The Secretary of Defense (or his designee) may-
(A) adopt administratively those provisions of title 5 that are
necessary to administer the Senior Defense Intelligence Execu-
tive Service,
(B) appoint individuals to positions established within the
Senior Defense Intelligence Service, and
(C) notwithstanding any limitation on compensation, pal in-
dividuals so appointed according to the pay prescribed by title 5
for the Senior Executive Service.
Any provisions so adopted shall be subject to the same limitations
imposed by the comparable provisions of title 5, including the limi-
tation on aggregate pay under section 5J8J(b) of such title.
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
26
(2)(A) The Secretary of Defense (or his designee) may establish not
more than 27 positions (and appoint individuals thereto) in the
Senior Defense Intelligence Executive Service.
(B) In addition to the positions established under subparagraph
(A), the Secretary of Defense (or his designee) may establish and ap-
point individuals in the Defense Intelligence Agency to-
(o) professional engineering and scientific positions primarily
concerned with research, evaluation, and development activi-
ties; and
(ii) professional positions in the physical and natural sci-
ences, medicine, and military intelligence.
Such positions shall be in the Senior Defense Intelligence Executive
Service.
(3)(AXi) During any fiscal year, the President, based on the recom-
mendation of the Secretary of Defense may, subject to clause (ii) and
subparagraph (B), award to any Senior Defense Intelligence Execu-
tive Service appointee the rank of-
(I) Meritorious Defense Intelligence Executive for sustained
accomplishment, or
(II) Distinguished Defense Intelligence Executive for sus-
tained extraordinary accomplishment.
(ii) A Senior Defense Intelligence Executive Service appointee
awarded a rank under subclause (I) or (II) of clause (i) shall not be
entitled to be awarded that rank during the following four fiscal
years.
(B) During any fiscal ear-
(i) the number of Senior Defense Intelligence Executive Serv-
ice appointees awarded the rank of Meritorious Defense Intelli-
gence Executive may not exceed 5 per centum of the Senior De-
fense Intelligence Executive Service; and
(ii) not more than one Senior Defense Intelligence Executive
Service appointee or 1 per centum of all Senior Defense Intelli-
gence Executive Service appointees, whichever is greater, may be
awarded the rank of Distinguished Defense Intelligence Execu-
tive.
(CXi) A Senior Defense Intelligence Executive Service appointee
who is awarded the rank of Meritorious Defense Intelligence Execu-
tive or Distinguished Defense Intelligence Executive shall receive a
lump sum payment in the amount specified in section 4507(e) (1) or
(2) of title 5, respectively.
(ii) Any award under this paragraph shall be in addition to basic
pay or any performance awards.
(4) The Director of the Defense Intelligence Agency may, in accord-
ance with the provisions of section 3396(c) of title 5, grant a sabbati-
cal to any Senior Defense Intelligence Executive Service appointee.
(5) Annual leave accrued by an individual while serving in a
Senior Defense Intelligence Executive Service position shall not be
subject to the limitations on accumulation imposed by section 6304
of title 5.
(6) The Director of the Defense Intelligence Agency shall submit to
the Permanent Select Committee on Intelligence of the House of
Representatives and the Select Committee on Intelligence of the
Senate at the time the budget is submitted by the President to the
Congress during each odd-numbered calendar year, a report on the
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
27
Senior Defense Intelligence Executive Service. Such report shall in-
clude-
(A) the percentage of senior executives at each pay rate em-
ployed at the end of the preceding fiscal year,
(B) the number, distribution, and amount of performance
awards paid during the preceding fiscal year; and
(C) the number of individuals removed from the Senior De-
fense Intelligence Executive Service for less than fully success-
ful performance.
(C) The Secretary of Defense (or his designee) is authorized con-
sistent with section 5341 of title 5, to adopt such provisions of such
title as provide for pre vailing rate systems of basic compensation for
positions in or under which the Defense ntelligence Agency may
employ prevailing rate employees (within the meaning of section
5.842(2)(A) of such title).
(d) Officers and employees of the Defense Intelligence Agency who
are citizens or nationals of the United States may be granted addi-
tional compensation, in accordance with regulations prescribed by
the Secretary of Defense, not in excess of additional compensation
authorized by section 5941(a) of title 5 for employees whose rates of
basic compensation are fixed by statute.
(e) Nothing in this section or any other law may be construed to
require the disclosure of the organization or any function of the De-
fense Intelligence Agency, of any information with respect to the ac-
tivities thereof, or of the names, titles, salaries, or number of the
persons employed by such Agency, except for that information re-
quired by the Congress to accomplish normal authorization and ap-
propriation functions.
(/X1) Notwithstanding the personnel management laws under title
5, or any other law, the Secretary of Defense may, in his discretion,
terminate the employment of any civilian officer or employee of the
Defense Intelligence Agency whenever he deems such termination
necessary or advisable in the interests of the United States.
(2) Any termination under this subsection shall not affect the
right of the officer or employee involved to seek or accept employ-
ment with any other department or agency of the United States if
he is declared eligible for such employment by the Office of Person-
nel Management.
(9) The Secretary of Defense may delegate authority under this
subsection only to the Deputy Ssecretary of Defense and the Director
of the Defense Intelligence Agency. An action to terminate any civil-
ian officer or employee by either such officer shall be appealable to
the Secretary of Defense.
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
sec.
1111. Murder.
1112. Manslaughter.
1113. Attempt to commit murder or manslaughter.
Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
28
1114. Protection of officers and employees of the United States.
1115. Misconduct or neglect of ship officers.
1116. Murder or manslaughter of foreign officials, official guests, or internationally
protected persons.
1117. Conspiracy to murder.
1118. Murder, manslaughter, assaults, threats, extortion or kidnapping of persons
given entry into the United States for permanent residence pursuant to
section 7 of the Central Intelligence Agency Act of 1949.
1119. Murder, manslaughter, assaults, threats, extortion, or kidnapping of persons
present in the United States under intelligence auspices.
? 1114. Protection of officers and employees of the United States
Whoever kills or attempts to kill any judge of the United States,
any United States marshal or deputy marshal or person employed
to assist such marshal or deputy marshal, any officer or employee
of the Federal Bureau of Investigation of the Department of Jus-
tice, any officer or employee of the Postal Service, any officer or
employee of the secret service or of the Drug Enforcement Admin-
istration, any officer or enlisted man of the Coast Guard, any offi-
cer or employee of any United States penal or correctional institu-
tion, any officer, employee or agent of the customs or of. the inter-
nal revenue or any person assisting him in the execution of his
duties, any immigration officer, any officer or employee of the De-
partment of Agriculture or of the Department of the Interior desig-
nated by the Secretary of Agriculture or the Secretary of the Inte-
rior to enforce any Act of Congress for the protection, preservation,
or restoration of game and other wild birds and animals, any em-
ployee of the Department of Agriculture designated by the Secre-
tary of Agriculture to carry out any law or regulation, or to per-
form any function in connection with any Federal or State pro-
gram or any program of Puerto Rico, Guam, the Virgin Islands of
the United States, or the District of Columbia, for the control or
eradication or prevention of the introduction or dissemination of
animal diseases, any officer or employee of the National Park Serv-
ice, any officer or employee of, or assigned to duty in, the field
service of the Bureau of Land Management, or any officer or em-
ployee of the Indian field service of the United States, or any offi-
cer or employee of the National Aeronautics and Space Adminis-
tration directed to guard and protect property of the United States
under the administration and control of the National Aeronautics
and Space Administration, any security officer of the Department
of State or the Foreign Service, or any officer or employee of the
Department of Health, Education, and Welfare, the Consumer
Product Safety Commission, Interstate Commerce Commission, the
Department of Commerce, or of the Department of Labor or of the
Department of the Interior, or of the Department of Agriculture as-
signed to perform investigative, inspection, or law enforcement
functions, or any officer or employee of the Veterans' Administra-
tion assigned to perform investigative or law enforcement func-
tions, [while engaged in. the performance of his official duties, or
on account of the performance of his official duties,] or any officer
or employee of any department or agency within the Intelligence
Community (as defined in section 4-207 of Executive Order 12086,
January 24, 1978, or successor orders), not already covered under the
terms of this section, or any attorney, liquidator, examiner, claim
Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
29
agent, or other employee of the Federal Deposit Insurance Corpora-
tion, the Federal Savings and Loan Insurance Corporation, the
Comptroller of the Currency, the Federal Home Loan Bank Board,
the Board of Governors of the Federal Reserve System, any Federal
Reserve bank, or the National Credit Union Administration en-
gaged in or on account of the performance of his official duties,
shall be punished as provided under sections 1111 and 1112 of this
title[.], except that any such person who is found guilty of at-
tempted murder shall be imprisoned for not more than twenty y years.
? 1118. Murder, manslaughter, assaults, threats, extortion, or kid-
napping of persons given entry Into the United States for
permanent residence pursuant to section 7 of the Central
Intelligence Agency Act of 1949
(a) Whoever kills or attempts to kill a person given entry into the
United States for permanent residence pursuant to the provisions of
section 7 of the Central Intelligence Agency Act of 1949 (50 U.S.C.
403h) shall be punished as provided under sections, 1111, 1112, and
1113 of this title, except that any such person who is found guilty of
murder in the first degree shall be sentenced to imprisonment for
like, and any such person who is found guilty of attempted murder
(b) Whoever engages in conduct proscribed by section 112, 878, or
1201 of this title against any person described in subsection (a) shall
be punished as provided under those sections.
? 1119. Murder, manslaughter, assaults, threats, extortion, or kid-
napping of persons present in the United States under In-
telligence auspices
(a) Whoever kills or attempts to kill a person certified by the di-
rector of Central Intelligence or his designee to be present in the
United States under the auspices of any ck rtment or agency
within the Intelligence Community (as defined in section 4-207 of
Executive Order 12036, January 24, 1978, or successor orders) shall
be punished as provided under sections 1111, 1112, and 1113 of this
title, except that any such person who is found guilty of murder in
the first degree shall be sentenced to imprisonment for life, and any
such person who is found guilty of attempted murder shall be im-
prisoned for not more than twenty years.
(b) Whoever engages in conduct proscribed by section 112, 878, or
1201 of this title against any person described in subsection (a) shall
be punished under those sections.
? ? ? ? ? ?
TITLE 28-JUDICIARY AND JUDICIAL PROCEDURE
? ? ? ? ? ? ?
Sec. 33-FEDERAL BUREAU OF INVESTIGATION
.
531. Federal Bureau of Investigation.
532. Director of Federal Bureau of Investigation.
533. Investigative and other officials; appointment.
534. Acquisition, preservation, and exchange of identification records; appointment
of officials.
 Approved For Release-2007/03103: CIA-RDP89MOO61OR000100020012-1
30
535. Investigation of crimes involving Government officers and employees;
tions limita-
.
536. Position in excepted service.
537. Expenses of unforeseen emergencies of a confidential nature.
558. Special authorities for foreign intelligence and foreign counteritelligence.
s s
? 538. Special authorities for foreign intelligence and foreign coun-
terintelligence
(a) Notwithstanding any other provision of law, for the purpose of
collecting foreign intelligence and foreign counterintelligence au-
thorized by law and pursuant to procedures established by the At-
torney General, the Federal Bureau of Investigation, in a manner
which conceals its identity or role if public knowledge that the Gov-
ernment is involved in the activity could reasonably be expected to
inhibit or otherwise interfere with collecting such intelligence or
counterintelligence, is authorized to-
(1) lease, rent, or otherwise contract for real property, personal
property, and personal services within the United States, the
District of Columbia, and the territories and possessions of the
United States;
(2) purchase property, buildings, or other facilities and con-
struct or alter such property, buildings, or facilities as may be
necessary;
(3) establish or acquire proprietary corporations or other busi-
ness entities to engage in any activity which may be engaged in
Is the Federal Bureau of Investigation, including all activities
cribed in this section, and operate such corporations and en-
tities on a commercial basis;
(4) use the proceeds generated by an activity authorized by
this section to offset necessary and reasonable expenses incurred
in such activity, with any remaining balance to be deposited in
the Treasury of the United States as miscellaneous receipts
upon the completion of the activity or sooner if the same can be
accomplished without risk o compromising the activity; and
(5) deposit appropriated funds and proceeds derived from an
activity authorized by this section in banks or other financial
institutions.
(b) Whenever a corporation or other business entity which was es-
tablished or acquired pursuant to If rah (3) of subsection (a)
and which has a net value in excess of 150,000 is to be liquidated,
sold, or otherwise disposed of, the Federal Bureau of Investigation,
as much in advance as the Director or his designee shall determine
is practicable, shall report the circumstances of the intended liqui-
dation, sale, or other disposition to the Attorney General and to the
Permanent Select Committee on Intelligence of the House of Repre-
sentatives and the Select Committee on Intelligence of the Senate.
The proceeds from the liquidation, sale, or other disposition, after
all obligations and costs of such corporation or entity have been
met, shall be deposited in the Treasury of the United States as mis-
cellaneous receipts.
(c) This section shall not be modified or superseded by any provi-
sion of law enacted after the date of enactment of this section unless
such provision expressly modifies or supersedes this section.
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
31
(61 Stat. 495)
Chapter 343, as amended
AN ACT To promote the national security by providing for a Secretary of Defense;
for a National Military Establishment; for a Department of the Army, a Depart.
merit of the Navy, and a Department of the Air Force; and for the coordination of
the activities of the National Military Establishment with other departments and
agencies of the Government concerned with the national security
Be it enacted by the Senate and House of. Representatives of the
United States of America in Congress assembed,
SHORT TITLE
That this Act may be cited as the "National Security Act of
1947".
ADVISORY COMMITTEES AND PERSONNEL
SEC. 303. (a) The Secretary of Defense, the Administrator of
General Services, the Director of Central Intelligence, and the Na-
tional Security Council, acting through its Executive Secretary, are
authorized to appoint such advisory committees and to employ,
consistent with other provisions of this Act, such part-time adviso-
ry personnel as they may deem necessary in carrying out their re-
spective functions and the functions of the agencies under their
control. Persons holding other offices or positions under the United
States for which they receive compensation, while serving as mem-
bers of such committees, shall receive no additional compensation
for such service. Other members of such committees and other
part-time advisory personel so employed may serve without com-
pensation or may receive compensation [at a rate not to exceed
$50 for each day of service] for each day of service at a rate not to
exceed the daily equivalent of the rate of pa in effect for grade GS-
18 under the General Schedule established by section 5332 of title 5,
United States Code.
(b) Service of an individual as a member of any such advisory
committee, or in any other part-time capacity for a department or
agency hereunder, shall not be considered as service bringg~In such
individual within the provisions of sections [281, 283, or 2845 203,
205, or 207 of title 18, unless the act of such individual, which by
such section is made unlawful when performed by an individual re-
ferred to in such section, is with respect to any particular matter
which directly involves a department or agency which such person
is advising or in which such department or agency is directly inter-
ested.
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
32
(63 Stat. 208)
CHAPTER 227, as amended
AN ACT To provide for the administration of the Central Intelligence Agency, es-
tablished pursuant to section 102, National Security Act of 1947, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
GENERAL AUTHORITIES
SEC. 5. In the performance of its functions, the Central Intelli-
gence Agency is authorized to-
(d) [Authorize couriers and guards designated by the Director to
carry firearms when engaged in transportation of confidential doc-
uments and materials affecting the national defense and security;]
Authorize personnel designated by the Director to carry firearms to
the extent necessary for the performance of the Agency's authorized
functions, including but not limited to the protection of classified
materials and information, the training of Agency personnel in the
use of firearms, the maintenance of security of Agency installations
and property, and the protection of Agency personnel and of defec-
tors, their families, and other persons in the United States under
Agency auspices; and
MISUSE OF AGENCY NAME, INITIALS, OR SEAL
SEC. 13 (a) No person shall, except with the written permission of
the Director, knowingly use the words "Central Intelligence
Agency"; the initials 'C.I.A.'; the seal of the Central Intelligence
Agency, or any colorable imitation of such words, initials, or seal in
connection with any merchandise, impersonation, solicitation, or
commercial activity in a manner reasonably calculated to convey the
impression that such use is approved, endorsed, or authorized by the
Central Intelligence Agency.
(b) Whenever it shall appear to the Attorney General that any
person is engaged or about to engage in any acts or practices which
constitute or will constitute conduct prohibited by subsection (a), the
Attorney General may initiate a civil proceeding in a district court
of the United States to enjoin any such acts or practices. Such court
shall proceed as soon as practicable to the hearing and determina-
tion of such action, and may, at any time before final determina-
tion, enter such restraining orders or pro hibitions, or take such
other action as is warranted, to prevent injury to the United States
or to any person or class of persons for whose protection the action is
brought. A proceeding under this section shall be governed by the
Federal Rules of Civil Procedure.
Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
33
(73 Stat. 63)
As amended
AN AM To provide certain administrative authorities for the National Security
Agency, and for other purposes.
Be it enacted by the Senate and House of, Representatives of the
United States of America in Congress assembed,
That this Act may be cited as the "National Security Agency Act
of 1959."
Sac. 9. (a)? ? ?
(b) The Director of the National Security Agency, on behalf of
the Secretary of Defense, may provide to certain civilian and mili-
tary personnel of the Department of Defense who are assigned to
special cryptologic activities outside the United States and who are
designated by the Secretary of Defense for purposes of this subsec-
tion-
(1) allowances and benefits comparable to those provided by
the Secretary of State to officers and employees of the Foreign
Service under [paragraphs (1), (2), (7), (9), (10), and (11) of sec-
tion 911, and under sections 912, 914, 933, 941, 942, and 945, of
the Foreign Service Act of 1946 (22 U.S.C. 1136 (1), (2), (7), (9),
(10), (11), 1137, 1138a, 1148, 1156, 1157, 1160); and] chapter 9 of
the Foreign Service Act of 1980 or under any other provision of
law applicable to the Foreign Service, or by the Director of Cen-
tral Intelligence to personnel serving in similar circumstances;
and
SEC. 10. (a)-the Director of the National Security Agency, on
behalf of the Secretary of Defense, may, without regard to section
4109(a)(2XB) of title 5, United States Code, pay travel, transporta-
tion, storage, and subsistence expenses under chapter 57 of such
title to civilian and military personnel of the Department of De-
fense who are assigned to duty outside the United States for a
period of one year or longer which involves cryptologic training,
language training, or related disciplines.
(b) Notwithstanding the provisions of chapter 41 of title 5, United
States Code, the Director of the National Security Agency, on behalf
of the Secretary of Defense, shall arrange for appropriate language
and related traintn4 of military and civilian cryptologic personnel.
In the exercise of this function, the Director may-
(1) provide for the training and instruction to be including f~w~
functional and geographic area specializations,
(2) arrange for training and instruction with other Govern-
ment agencies and at nongovernmental institutions that furnish
training and instruction useful in the fields of language and
foreign affairs;
(.?) support, through contracts, grants, cooperation with educa-
tional institutions, or through other means, prgrams that fur-
nish necessary language and la~gu~agr-related skills;
(4) Obtain without regard to the Service Contract Act of 1995,
by appointment or contract (subject to the availability of appro-
priations), the services of individuals as language instructors,
Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
 Approved For Release 2007/03/03: CIA-RDP89M00610R000100020012-1
34
linguists, or special project personnel. An individual whose
services are obtained by contract, shall be considered an employ-
ee for purposes of subchapter III of chapter 83 of title 5 if such
individual gives notice in writing to the National Security
Agency of a desire to become subject to such subchapter and,
consistent with section 8332(k)(2) of such title, deposits an
amount equal to retirement deductions representing any period
in which the individual was previously so employe by the
National Security Agency. A contractor or contractor's employee
engaged under this provision may not be provided access to clas-
sified information, as defined in section 304 of the Internal Se-
curity Act of 1950 (50 U.S.C. 834), unless such individual meets
the standards contained in such Act;
(5) pay all or part of the tuition and other expenses related to
the training of current and former military' and civilian crypto-
logic personnel who are assigned or detailed for language and
related training, orientation, or instruction;
(6) pay benefits and allowances to current personnel and
former military and civilian cryptologic personnel or other indi-
viduals in the cryptologic linguist reserve assigned to training
at sites away from their normal duty station, in accordance
with chapters 57 and 59 of title 5, United States Code,?
(7) provide without regard to subchapter IV of chapter 55 of
title 5, United States Code, special monetary or other incentives
to encourage civilian cry ptologic personnel to acquire or retain
proficiency in foreign languages or special related abilities
needed by the National Security Agency, including special mon-
etary incentives to former or retired civilian employees and mil-
itary cryptologic personnel or other qualified individuals who
agree to retain proficiency in such languages or abilities and to
return to active civilian service with the National Security
Agency during periods of emergency need as determined by the
Director;
(8) provide to family members of military and civilian crypto-
logic personnel, in anticipation of their assignment abroad or
while abroad appropriate orientation and language training,
including the payment of the expenses of tuition or other neces-
sary costs of instruction at a public or private institution in the
United States or abroad (in the case of individuals abroad), if
such instruction is directly related to the assignment abroad;
(9) obtain an agreement from (A) current employees pertaining
to continuation of service and repayment of such training that
is consistent with the provisions of section 4108 of title 5,
United States Code, and (B) former or retired employees pertain-
ing to repayment of expenses of such training and return to
service when requested; and
(10) waive in whole or in part a right of recovery under para-
graph (9), if it is shown that the recovery would be against
equity and in good conscience or against the public interest.
s * ? ? ? s a
MISUSE OF AGENCY NAME, INITIALS, OR SEAL
SEC 12. (a) No person shall, except with the written permission of
% rft8 tf'oPA4fKa 4YOtiO" tI~ i w~ c X106020012-1
 Approved For Release 2007/03/03: CIA-Fj5P89M00610R000100020012-1
words "National Security Agency"; the initials "N.S.A.'It the seal of
the National Security Agency, or any colorable imitation of such
words, initials, or seal in connection with any merchandise, imper-
sonation, solicitation, or commercial activity in a manner reason-
ably calculated to con the impression that such use is approved:
endorsed, or authorized by the National Security Agency.
(b) Whenever it shall appear to the Attorney General that any
person is engaged or about to engage in any acts or practices which
constitute or will constitute conduct prohibited by subsection (a), the
Attorney General may initiate a civil proceeding in a district court
of the United States to enjoin any such acts or practices. Such court
shall proceed as soon as practicable to the hearing and determina-
tion of such action, enter such restraining orders or prohibitions, or
take such other action as is war anted, to prevent injury to the
United States or to any person or class of persons for whose protec-
tion the action is brought. A proceeding under this section shall be
governed by the Federal Rules of Civil Procedure.
Approved For Release 2007/03/03: CIA-RDP89M0061OR000100020012-1