ITEMS TO DISCUSS WITH DIRECTOR SHULTZ DURING YOUR MEETING ON INTELLIGENCE REORGANIZATION

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-537-6-2-7
• Release Decision: RIFLIM
• Original Classification: T
• Document Page Count: 3
• Document Creation Date: January 11, 2017
• Document Release Date: March 16, 2011
• Sequence Number: 2
• Content Type: MEMO

No Objection to Declassification in Full 2011/03/16: LOC-HAK-537-6-2-7
MEMORANDUM a W
THE WHITE HOUSE
TOP SECRET/BYEMAN
MEMORANDUM FOR:
FROM:
SUBJECT:
ON-FILE NSC RELEASE
INSTRUCTIONS APPLY
PURPOSE
NSA, NRO reviews
completed
Items to Discuss with Director
Shultz during your meeting on
Intelligence Reorganization
The purpose of your meeting is to obtain Director Shultzts concurrence
in several changes to the Presidential Directive on intelligence communi-
ty reorganization which were suggested by FLAB.
TALKING POINTS
-- Inform Director Shultz that the FIAB has raised a number of
concerns about the proposed intelligence reorganization. Many
of their suggestions are unacceptable but there are a few which
are either tolerable or appear to be improvements. You believe
it is in the interest of achieving community wide acceptance of
the program to agree to these few changes.
-- You have incorporated those changes which you consider accept-
able in a revised draft directive and letter to Director Helms4
(Tab A). Give him a copy of the draft directive and letter (left
flap) and note that the changes are indicated by underlining.
Explain the major changes to the directive:
Addition of the Chairman, JCS and Attorney General to
the National Security Council Intelligence Committee
(NSCIC). (See pages 6 and 7.)
Placement of electronics intelligence activities under
NSA. (It is preferable to specify that NSA will be responsi-
ble for unified direction of overall communications and
electronics activities and assessments. The earlier
TOP SECRET/BYE MAN
No Objection to Declassification in Full 2011/03/16: LOC-HAK-537-6-2-7 T__
 No Objection to Declassification in Full 2011/03/16: LOC-HAK-537-6-2-7
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TOP SECRETLBYEMAN -2
version had called for a "unified national cryptographic
service. " (See page 7.)
Retention of the present arrangement for the National
Reconnaissance Office rather than making it a Defense
instrumentality. (See page 7.) The Deputy Secretary of
Defense would continue as Chairman of the Executive
Committee of the NRO and the Under Secretary of the
Air Force would remain the Director. (Director Shultz
feels that letting the Air Force run the program would
correct the inefficiency caused by divided management
with CIA and produce some cost savings over the long
haul. FIAB argues that NRO is doing an effective job
and would lose its present flexibility if locked entirely
into the DOD system. Although CIA presumably would
still be able to develop some systems covertly, there
are some drawbacks to the elimination of the CIA element
from NRO management.' It has been correctly asserted,
for example, that the U--2 would not have been developed
if left to the Air Force. It would seem that improvements
could be made in existing management practices without
reorganization.) Because of the strong opposition to this
change and the potential for considerable reverberations
throughout the intelligence community, it is in the interest
of the overall reorganization to accept for the time being
the FLAB recommendation to maintain the status quo.
-- The following minor changes are reflected in the new draft:
The USIB membership is described and the following
changes to the old membership are specified: The Chair-
man of the Board of National Estimates is designated
Vice Chairman, and a representative of Treasury and
the Deputy Director for Intelligence of CIA are added
(pages 5, 6)).
It is less explicit concerning the need to make budgetary
reductions in tactical intelligence. (Compare page 9 of new
draft, Tab A, and page 6 of old draft, Tab B, at clip.)
EXCOM is assigned the task of delineating functions
between NRO and NSA and other agencies NRO supports
(page 7).
TOP SECRET/BYEMAN
No Objection to Declassification in Full 2011/03/16: LOC-HAK-537-6-2-7
 No Objection to Declassification in Full 2011/03/16: LOC-HAK-537-6-2-7
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TOP SECRET/BYEMAN - 3
The language describing DCI's HUMINT collection role
is not as explicit as the language in the original memo-
randum (page 8).
A requirement is added that DIA be fully responsive to
tasking by the JCS in matters involving military planning
and operations (page 8).
Consolidated mapping and defense investigative services
would not be charged to the Defense Intelligence Program
(page 8).
There are some other changes and additions in language
and tone which are of less substantive significance.
-- Offer to show him a copy of the original directive and letter which
have been marked up to indicate areas of change (Tab B). He
should be aware that:
Language calling for the USIB to become strictly advisory
to the DCI has been deleted (page 2 of Tab B).
Listing of the DCIts four major responsibilities has been
deleted from the directive and the ter (page 3 of the
directive and page l of letter).
Language calling for withdrawal of USIB from any role in
formulating program budgets for the intelligence community
is deleted (page 4 of Tab B).
Reference to more rewarding careers for intelligence
analysts is deleted (page 6).
-- Tell Director Shultz that if the new drafts are acceptable, you will
have the memo to the President modified slightly and will send it
to him for signature.
TOP SECRET/BYEMAN
No Objection to Declassification in Full 2011/03/16: LOC-HAK-537-6-2-7