DEAR SENATOR MCCLELLAN:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00682R000300050012-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 12, 2016
• Document Release Date: April 10, 2002
• Sequence Number: 12
• Content Type: LETTER

Approved For Release 2002/05/09 : CIA-RDP91-00682R000300050012-4
CENTRAL INTELLIGENCE AGENCY
WASHINGTON 25, D. C.
The Honorable John L. McClellan
Chairman, Committee on Expenditures
in the Executive Departments
United States Senate
Washington, D. C.
Dear Senator McClellan:
Reference is made to your letter of 26 October 1950 requesting
information concerning potential and realized benefits gained by the
Central Intelligence Agency from the enactment of Public Law 110 and
other legislative acts passed by the 81st Congress.
The Central Intelligence Act of 1949, Public Law 110, approved
20 June 1949, was enacted for the purpose of providing for the administra-
tion of the Agency which was established pursuant to section 102 of the
National Security Act of 1947, Public Law 253, 80th Congress, 1st Session.
Prior to 20 June 1949 CIA was administered under laws and regu-
lations of general application and under authorities of appropriation
acts which provided funds. These authorities were inadequate to serve
the needs of an intelligence agency, consequently administrative officials
were required to continually resolve legal and other obstacles in order
to provide the necessary services. Public Law 110 provides the basic
law which establishes the administrative authorities necessary for CIA
to carry out effectively its assigned responsibilities. The law has
provided the flexibility and security of operations necessary in an
intelligence organization.
Action has been taken to carry out all the provisions of the
law and to issue appropriate regulations required by the Act. Categories
covered include (1) procurement, (2) education and training, (3) travel,
allowances and related expense which, in an intelligence agency, cover
many complex problems incidental to foreign and domestic travel not
common to most government agencies, (4) medical services program, (5)
budgetary and accounting controls which are particularly necessary because
of the Agency's comparatively broad latitude in the application of appro-
priated funds, (6) personnel, and (7) other general authorities usually
set forth in appropriation language.
The administrative deficiencies that have been eliminated and
the major improvements which have been realized from this Act result
from the fact that the basic law permits actions to be taken now which
heretofore had been restricted by certain legal limitations. However,
action on specific improvements that is now permissible includes
(1) providing specialized training, (2) exercising the authority to
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I without too many restrictive
rswa-ip ions, an (3) providing a home leave program for personnel
assigned overseas.
The primary objective Of Public Law 110 was to provide a
framework for effective administration of functions prescribed by Public
Law 25.3, Sec. 102 and 303. The direct financial savings that have been
realized cannot be ascertained in dollars and cents, but it is felt
that savings do accrue because the law permits prompt actions to be
taken now in many cases where in the past considerable efforts were
required on the part of Agency officials in searching for legal ways
and means for processing urgent projects. While no particular savings
can be cited, no additional costs have been incurred through exercise
of the authorities in the Act.
The Central Intelligence Agency is exempt from the provisions
of the Federal Property and Administrative Services Act of 1949, and
amendments thereto (Public Laws Nos. 152 and 754). However, the Agency
does conform to the law and regulations promulgated in connection
therewith to the extent possible within security considerations.
The Budget and Accounting Procedures Act of 1950, Public Law
784, was approved on 12 September 1950. CIA officials are studying the
act-and conferring with representatives of the General Accounting Office,
the Bureau of the Budget, and the Treasury Department concerning the
budget and the accounting and reporting procedures best suited for the
needs of this Agency.
Sincerely yours,
IALTER B. WITH
Director
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 Ap
UNCLASSIFIED RESTRICTED CONFIDENTIAL SECRET
WILL WILL CIRCLE CLASSIFICATION TIT
~
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CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
INITIALS
DATE
I
Legal Staff
2
Attn: Legislative Liaison
Officer
3
5
FR M
INITIA
DATE
I
Budget Officer
10 Nov.
1950
2
APPROVAL
]ACTION
]COMMENT
C=CONCURRENCE
REMARKS:
L
PREPARATION OF REPLY
RECOMMENDATION
Attached is a draft of a proposed reply
to the request dated 26 October 1950 of the
U. S. Senate Committee on Expenditures in the
Executive Departments. There is also attached
background material used in drafting the reply.
05/098i=6TA4RIP18I-OPMEW99 PQ@
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