(SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000100010007-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 19, 2016
• Document Release Date: July 3, 2006
• Sequence Number: 7
• Publication Date: October 2, 1963
• Content Type: MFR

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OCT 1963
12 s-2 OL
THE CORD
SUE3ECT;
I. The Director met this afternoon with Senator Russell and
itepresexatati o Mahon for approximately 45 i nutes on the above
subject. Assistant Secretary of Defense, Charles Hitch, was present.
Mr. William Darden of Russell's office was present; At. Robert
Michaels of Mr. Mahou's office was present; and John S. Warner
2. The Director gave a brief background of the pa-ra=uilltary
activities which gave rise to the expenditures which he wished to
discuss. He stated the CIA budget for 1964 Ud boon fornaul4i.ted with
the understanding that Defense would fund the cost of these various
paramilitary prograu s. The Director explained that in the past
efeensee had funded a portion of these activities from MAP fun"
but it had boon deeter:n ned that for legal reasons Defense world be 25X1
unable to continue this funding. When the Agency was advised of
been approved at a level
Vail aeituation in January 1963, the Agency budget level hAd al van 25X I
t'v1ORlin
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S -I
T
the President has approved the recommended increase with the under
standing that this would not necessitate an increase in the 1964
appropriations recommended to the Congress for the Department of
Defense.
Included in that letter is a sentence stating
4. The Director next referred to and read from the letter
from the Bureau of the Budget of 27 April 1963 to Clarence Cannon
which identified the Agency's budget request I la-nd
identified the two accounts in which these funds were included. The
next letter referred to by the Director and reviewed by Senator Russell
and Mr. Mahon was the 8 August 1963 letter from bureau of the Budget
to Senator Hayden. Mr. McCone indicated that it had been reported to
him that the Senate Committee in DOD bill had placed a
restriction so that this additional I vas not available for CD
oVenditur e. Senator Russell stated that this was not the case.
3. Mr. Hitch indicated that there would be no increase in the
p'resident' as recommended program for DOD as a result of the 8 August
letter since by this time the authorization bills passed by
had reduced the recommended levels by far more than th '!L
After some discussion Russell stated that he "thought the othe
up to the Executive Branch" to allocate if the programs were 25X1
tly valuable to be carried on. Russell also stated that he thought
a "up to DODr' to determine which accounts should be adjusted to
on this matter was such as to require DOD to absorb th 25x1
mako these funds available if the programs were to be carried on.
Insofar as additional amounts being made available by the Congress at
this time, Russell stated "wee have gone as far as we can. {' Russell als
added that he had assumed, possibly wrongly so, that the House
stion of national priorities and once these were determined appropriate
item. Mr. Hitch stated that he knew of none, that in effect this was a
that final action depends on Mr. Cannon and his Subcommittee and 25X1
Mr. Russell and his Subcommittee. There was also discussion of
whether there were any legal restrictions in terms of r.appor f
sad making funds available from other accounts to make up th_
Appropriations has not finally approved a total budget figure for CIA
6. W. Mahon pointed out that the CIA Subcommittee of Ho
As could properly be made. Mr. Russell and Mr. Mahon
agreed there were no restrictions in this regard.
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7. Mr. Mahon stated that he was not in a position at this meeting
to state what the Agency total should be but that he individual) would
support the program. It was pointed out that som had in 25X1
fact already been expended in 1963 and considerable sums so far in
1964. Mr. McCone referred then to Mr. Cannon's letter to the Bureau
of the Budget-of 20 June 1963 to the effect that the Agency could continue
with its regular program under the terms of the Joint Resolution and in
addition the Agency was authorized to proceed with the program discussed
In the hoariw which contemplates withdrawals from Reserves up
I Ithus indicating that up to now and in part the House Committee
has expressed Its will on the availability of funds to CIA for these programs.
Mahon stated that when final decisions "a made as to the total CIA budget,
opportunity will exist for the Congress to express its will as to the total,
not in any conference report of course, but in the usual letter from
Cannon to the Agency.
8. Mr. Russell indicated that he would lure more information
hi reprogramming which would be required by DOD absorbing
Hitch stated he would be glad, of course, to confer
ith Senator on this. In connection with Congress furnishing guidance
an its will, Mr. Mahon stated that the usual letter from Cannon to the
Agency setting forth what was available for Agency expenditure would
furnish such guidelines. (The Senate in the past has furnished a simil
letter.) Mr. Mahon indicated that the conference on the DOD appropriation
bill is planned for ten o'clock this coming Friday, the 4th of October.
S/ John S. Warner
JOHN S. WA VR
slative Counsel
cc: DCI
Comptroller
,/OGC/LC - Acctg - Budget
CIA Sub House Armed Services
CIA Sub Senate Armed Services
Chrono
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