LETTER TO MR. WILFRED H. ROMMEL FROM(Sanitized).

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000600120001-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 9, 2016
• Document Release Date: April 11, 2001
• Sequence Number: 1
• Publication Date: January 4, 1974
• Content Type: LETTER

~e~1,F,pC.R~1~VItW~II$(~8 : CIA-RDP75B00380R000600120001-6
H. R. 8865 Purpose: To amend the Internal Security Act of
[Ichord] 1950, to establish a central security review
office for the coordination of loyalty and security
programs administered by Federal executive agencies.
Comment:
The House Internal Security Committee conducted a 2 year review
of the administration of laws and procedures underlining the Federal
civilian employees loyalty- security program (H. Rpt.92-1637). H. R. 8865
is the result of this review. The Committee felt that the programs were
deficient in Government due to the absence of centralized control.
Agencies failed to update and maintain appropriate implementing regula-
tions; there was a lack of uniform standards and practices; improper
security adjudications; and a failure to appeal adverse lower court decisions.
H. R. 8865 establishes a central security review office within the Executive
office of the President to coordinate Government security programs and
to require compliance with directives issued and approved by the President.
The Office would conduct continuing surveys and inspections, instruct
security officers, investigate complaints by Federal employees and con-
tractors, and report annually to the Congress on the operation of security
programs in Government.
Position:
By letter to Mr. Colby dated 2 July, Chairman Ichord requested
Agency comments on H. R. 8865. An interim was sent 10 July.
. A Agency reply, coordinated with DDM&S and OGC, was
forwarded to OMB on 5 November.
Status:
Referred to the House Committee on Internal Security on 20 June.
Agency reply sent to OMB 5 November.
4 T'an Roproved For Release 2001/08/28 : CIA-RDP75B00380R000600120001-6
 Approved For Release 2001/08/28 : CIA-RDP75B0038OR000600120001-6
5 NOV 1973
Mr. Wilfred H. Rommel
Assistant Director for
Legislative Reference
Office of Management and budget
Washington, D. C. 20503
Dear Mr. Romrnet:
d is a proposed report to Chairman Ichord,
nal Security, in response to a request for
our views and recommendations on I1. R. 8865, a bill "To
Security Act of 19S9 to establish a Central
ce for the coordination of loyalty and
security programs administered by P ederat executive agencies.
Advice is requested as to whether there Is any objection
on of this report from the atandpoi
outs program.
Enclosure
Distribution:
Orig - Addressee w/encl.
Legislation File
1 - OMB Liaison
1 - Chrono
OLC/PLC:jal:5Nov73
Approved For Release 2001/08/28 : CIA-RDP75B0038OR000600120001-6
 Approved For Release 2001/08/28 : CIA-RDP75B0038OR000600120001-6
CENTRAL INTELLIGENCE AGENCY
WASHINGTON, D.C. 20505
Honorable Richard Ichord, Chairman
Committee on Internal Security
House of Representatives
Washington, D. C. 20515
This is in reply to your letter of 2 July 1973, requesting the
views of this Agency on H. R. 8865, "To amend the Internal Security
Act of 1950 to establish a Central Security Review Office for the
coordination of loyalty and security programs administered by
Federal executive agencies. "
H. R. 8865 provides an explicit statutory basis for a compre-
hensive Federal agency loyalty and security program. This program
establishes in the Executive Office of the President a Central Security
Review Office which is responsible for (a) surveying and inspecting
executive agency loyalty and security programs, including programs
for classifying and declassifying information affecting the national
security; (b) compiling statistics on loyalty and security programs;
(c) preparing plans for security training programs for security
officers; (d) investigating and evaluating complaints made on behalf
of employees by labor or employee organizations with respect to
the administration of security programs and complaints made by
Government contractors; (e) promulgating rules and regulations for
uniform loyalty and security programs; and (f) submitting annual
reports to the Congress providing a description and statistical
analysis of each loyalty and security program.
The National Security Act of 1947 and the Central Intelligence
Agency Act of 1949 provide a specific statutory basis for the establish-
ment and administration of a comprehensive security and loyalty program
by this Agency. The 1947 and 1949 Acts impose and implement a
responsibility for the protection of intelligence sources and methods.
The 1947 Act authorizes the termination of any Agency officer or
employee, when such action is determined necessary or advisable in
the interest of the United States.
Approved For Release 2001/08/28 : CIA-RDP75B0038OR000600120001-6
 Approved For Release 2001/08/28 : CIA-RDP75B00380R000600120001-6
In consonance with existing statutory responsibilities and
authorities, there has been established within this Agency a personnel
security program which meets or exceeds the standards established
by Executive Order 10450, "Security Requirements for Government
Employees" and which supports requirements unique to the field of
foreign intelligence. For example, the isolation encountered in
certain intelligence assignments and other factors of stress demand
that the suitability of each employee, from the standpoint of emotional
stability, personal integrity, security consciousness, loyalty, and
possible foreign connections, be carefully assessed. Moreover, the
judgment and discretion required to administer this program must be
exercised in a manner which assures the protection of intelligence
sources and methods from unauthorized disclosure. Existing law
provides the necessary authority to insure that the. investigation,
hiring and termination of Agency personnel are compatible with these
requirements.
Section 406 of H. R. 8865 raises a possible conflict with existing
law by making the judgment and discretion exercised by the Director
subject to review and overruling by outside authorities not sharing the
statutory responsibility for the protection of intelligence sources and
methods.
We fully share the interest of the Committee in a strong and
effective personnel security program, but in view of the above con-
siderations, it is requested that the Agency be exempted from H. R.
8865 if the bill is favorably acted upon by your Committee. Recom-
mended language is enclosed.
The Office of Management and Budget .has advised there is no
objection to the submission of this report from the standpoint of the
Administration's program.
Since rely,
Approved For Release 2001/08/28 : CIA-RDP75B00380R000600120001-6
 Approved For Release 2001/08/28 : CIA-RDP75B00380R000600120001-6
Exemption for CIA from H. R. 8865
On page 2, line 8, Section 402(3) after the
word "-agency" insert:
"except the Central Intelligence Agency,"
Approved For Release 2001/08/28 : CIA-RDP75B00380R000600120001-6
 Approved For Release 2001/08/28 : CIA-RDP77BS0380R0000600120001-6
Journal - Office of Legislative Counsel Page 2
Wednesday - 7 November 1973
5. (Unclassified - PLC) Discussed with Office STATINTL
of the General Counsel, National Security Agency, NSA's position
STATINTL concerning H. R.-8865, which establishes a Federal Review Office.
stated that NSA was requesting an exemption, as H. R. 8865
would create serious statutory conflicts with the personnel security
program in NSA. By statute in 1964, the Director of NSA was given
sole authority to develop and administer a security program for NSA.
STATINTL I informed - that their position paralleled the position of
CIA, as our security program is also based on statute. STATINTL
6. (Unclassified - GLC) DCI/NIO, called and
asked for any information we could give her on congressional action pertaining
to the Federal budgetary process. I told her of the work which is being done
by a joint congressional committee and said we would get to her whatever
information we had available on the subject.
7. (Unclassified - GLC) Jim Woolsey, Senate Armed Services
Committee staff, called this morning to advise that Senator Symington had
released to the press Mr. Colby's memorandum of 6 November 1973 to
Symington. Woolsey commented that he thought it was a good job.
Woolsey also mentioned that Joel Merkel, on Senator Jackson's
staff, might be in touch with us regarding the language they are trying
to insert in Senator Nelson's resolution to establish a Joint Committee on
Domestic Intelligence Activities. Woolsey will be out of town for five days
and has given Merkel my name as a point of contact. Woolsey added that
they have received some suggested language from Defense but he (Woolsey)
is having considerable difficulty in fitting all of this together in some
acceptable legislative format.
8._ (Unclassified - LLM) Called Cedric Kroll, Actuary, U. S.
Treasury Department, and closed out our review of the proposed amendments
to CIARDS, including retirement financing. Kroll suggested a couple of
minor modifications which I said we would be glad to accept. In the interest
of expediting OMB clearance and in response to his request for guidance, I
suggested that Treasury's report to OMB on the legislation merely refer
to the discussions held between the two agencies and our acceptance of their
suggestions for minor modifications.
Approved For Release 2001/08/28 : CIA-RDP75B0038OR000600120001-6