FINANCIAL POLICY AND BUDGET COMMITTEE MEETING 8 AUGUST 1962 - 3:00 P. M. SUMMARY MINUTES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R002400030003-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 15, 2016
• Document Release Date: August 19, 2003
• Sequence Number: 3
• Publication Date: August 8, 1962
• Content Type: MIN

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Financial Policy and Budget Committee
Meeting 8 August 196? - 3:00 P. M.
Summary Minutes
Chairman: Mr. John A. Bross (Comptroller)
Attending:
..A.DD/P
ADD/I
ADDIS
ADD/R
CC
Comptroller
Secretary
Special Guests:
OSI
ORR
1 -1
Mr. Sheldon,
Mr. Lloyd
1. Under date of 7^A-ugust 1962, the Committee had received prior
notice of the agenda.-
. Balance of Payments Estimate
a. The Comptroller advised the Committee that drafts of two
memoranda had been left with General Carter, one to go to the Bureau of the
Budget and the other to go to the various Agency components. Both were
based upon the experience of the Agency in the same exercise two years ago.
It was observed that, in the last analysis, the problem boils down to what,
if anything, can be done within CIA to reduce the drain on the dollar.
b. The thought was expressed that it may become advisable to
invite cleared representatives from the Bureau of the Budget to come over
and review our overseas activities for the purpose of satisfying themselves
that we are doing things in the most economical way. Further, we would
welcome objective suggestions that could substitute dollars for
This still leaves open the question of whether there are things that`
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3. General Comments on the Agenda
It was noted that:
a. The agenda was not intended to represent subjects, all of
which are to be conclusively disposed of during today's session.
b. The intent is to illustrate and to contribute to the development
of a rather comprehensive picture (for the benefit of the DCI and the DDCI) of
the activity undertaken by the FPBC, the backup documentation being generated,
and the vigorous pursuit being made with respect to activities which warrant
investigation as possibilities for retrenchment.
4. 05I External Research Program, FY 1963
a. The discussion of this program was principally directed to
three subjects:
(1) The cyclic characteristic of the total fund requirements,
which are up during the even ears (circa million) and down
during the odd years (circa Killion). Pursuant to this,
attention was directed to the problem to be anticipated during,
FY 1964, on the high cycle, if ceilings remain unchanged.
(2) Measures and safeguards against duplication, within the
community of government and private enterprise.
V
(3) The technical competence of the professional talent
employed by 05I under contract in the External Research Program.
b. 'Concerning the cyclic problem, the ADD /A expressed particular
concern, first with the reduced funds (from F_ -1 for
FY 1963) and second, the application of the same ceiling next year which would,
in effect, be only 50 per cent of the total FY 1964 funds requirements for these
activities.
c. It was agreed that the prospect of employing "year-end savin s"
to make up these differences appears less likely than in previous years.
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The Comptroller indicated that he would be receptive to an adequately
documented request for a supplemental funds allowance for FY 1963, and
that OSI should prepare a similar paper on the FY 1964 Budget so that this
matter could be placed before the DDCI and the DCI. It was agreed that a
hard decision must be made prior to the next revision of the FY 1964 Con-
gressional Budget.
d. On the matter, of coordination and possible duplication, it
was noted that, in' addition to the established procedures for inter-Agency
coordination and check, OSI makes it their business to know what is going
on in the other Departments and directs their own effort to fill the gaps.
e. With respect to the competence of 051 contractors, the trend
is to concentrate on buying brains in the bigger institutions that have a lot
of brains gathered under one pen. With that kind of a portfolio of talent you
will get a better product and can move from one aspect of the problem to
another aspect of the problem without taking time to ,Jet cranked up. The
program envisions three major contracts, = for offensive missiles,
with the defensive, and []on space.
f. In summary, the Committee was in agreement in a recom-
mendation for approval of the CSI-E:kierna1 Research Program, as proposed,
with the understandin,g--t1ta--t OSI would initiate.:
(1) An early proposal to request a supplemental FY 1963
Allowance of Funds, pursuant to the recommendations of the
ADD/R.
(2) A separate proposal directed to the Funds - Ceiling
problem to be anticipated in FY 1964. This paper should be in
sufficient depth for serious consideration by the Executive
Committee, and should precede the next preparation of data
for the Congressional Bu{d ?et.
5. ORR External Research Program, FY 1963
a. Within the general discussion of this program, the principal
focus of attention was upon items One and Five, Foreign Population and
Manpower Studies" and "Research on African Towns. " The question, as
raised by the Comptroller, is not that they are not important, but conceivably
that we (CIA) should not be doing them.
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b. The Committee was satisfied, as a result of the explanation
and discussion, that both items One and la ive were proper responsibilities
of ORR, and that it would not be possible for the Bureau of the Census to
perform services of this type (item One) except upon a reimbursable basis.
Px ecedent goes back to 1948. The Department of Defense and the National
Science Foundation, among others, also employ "Census" in the same manner
for certain of their requirements.
c. It'was noted that the ORR Program for FY 1964 will be at the
same financial level as for FY 1963 and therefore does not involve the same
ceiling problem as the OSI Program.
d. In summary, the Committee was in agreement in .a recom-
mendation for approval of the ORR :External Research Program for FY 1963,
as presented.
6. Other Agenda Items
The balance of the agenda as subjects for subsequent action by
designees prior to further discussion by the FPBC:
a. Invitee Travel Fund Requirements
(1) It was agreed that the ADD/S would chair a group, to
include designees from the iD/I and the DDR to examine this
subject for the purpose of getting the dimensions and to develop
proposed criteria to be applied as ground rules for the conduct
of ",Invitee Travel. "
(2) In principle, the machinery should remain where it is
(in the Office of Personnel). The amount and source of funds to
be employed remains to be determined. The immediate costs
are to be borne by the Office of Personnel. Supplemental funds
may be made available either through reprogramming exercises
or from savings.
(3) The working group, chaired by the ADDS, will endeavor
to place a report before the F:.?BC on Wednesday, 15 August, with
recommendations on magnitude, funding, and criteria for guide-
lines for the conduct of the program by the Office of Personnel.
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b. External Training Fund Reouir ements
It was reported that this can now be accommodated from
within the current funds allocation to OTR and is no problem, at the present
time.
c. Study of Records Control and Records Retirement
(1) The Secretary was directed to circulate the ADDS
memorandum to the Cornmtroller, dated 6 July 1962. subject
"Program Reviews by Financial Policy and Budget Committee".
(2) Unless recommendations are received to the contrary,
it would appear that this matter is under control and that no
further action is required by the FPBC at this time.
d. Manpower Task Force
It was agreed that the Committee chaired by Mr.
is pursuing this matter with vigor and the FPBC may expect to
have the benefit of their report at some subsequent date.
e. Survey of Air Activities
It is anticipated that the report Ion this will
be available course (September - October 1962), and that it will
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f. Stockpiling
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is to continue to examine this subject as a pre-
requisite to a report to the Corrxnittee at some future date.
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g. Automatic Data Processing
(1) This was noted as a subject involving formidable ex-
penditures, both in terms of personnel and in hardware. It was
suggested that was available to provide the Committee
with a complete briefing at any time. The Comptroller expressed
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iF PBC Meeting 8 August 1962 Page Six
the opinion that, before examining the nuts and bolts of the
technology of ADP, it would be desirable to have data on the
magnitude, outlining the paths that the Agency is pursuing in
connection with establishing machine records and ADP equip-
ment generally.
(2) Action on an invitation to have appear 25X1
(before FPBC) was suspended and the matter placed tempo-
rarily aside for subsequent inquiry.
h. Summer Employment Program
(1) The Secretary was instructed to circulate Emmett
Echols' report to the Committee (Memorandum from Director
of Personnel to Acting Deputy Director (Support), dated
3 August 1962, DDS-62-3873, subject "Usefulness of Summer-
Only Employment Program, " including Attachments A, B and
C-1 and omitting Attachment C-2).
(2) It was suggested that this report is sufficiently complete
to substantiate an affirmative vote by the FPBC.
i. NPIC
(1) There had been separately circulated a memorandum
to the DD/I from Arthur Lundahl, Director of NPIC, dated
30 July 1962, subject "Comments on Proposal for Joint Funding
of NPIC Budget".
(2) Two divergent opinions were expressed in connection
with the above:
(a) With the exception of the ADD/.R, it was generally
agreed that the completed staf work in the above memorandum
deserved the support of the FPBC.
(b) The ADD/I was of the opinion that, in view of the
monetary ceiling problems before CIA, there should be a 50-50
split of the costs between CIA and DoD.
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PBC Meeting 8 August 1962 Pare Seven
(3) In summary, no conclusive position was taken by
the FPBC. This subject is scheduled for consideration by
the executive Committee.
J. NIS
(1) The Committee was advised that NIS procedures,
requirements and disseminations have been precisely spelled
out and that it will be necessary to go a time-consum- in ,
formalized route to generate authority for any serious change.
(2) The NIS problem was tabled, for the present.
7. The meeting adjourned at 5:00 P. M.
Sccx: etary, Financial Policy
and Budget Committee
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MEMORANDUM FOR: Executive Director
SUBJECT External Research Program of Office of Scientific
Intelligence for FY 1964
1. The Financial Policy and Budget Committee has reviewed and
approved the proposed external research program of OSI for FY 1963.
The estimated cost of this program in FY 1963 is
2. Under present plans, expenditures in this area in FY 1964
will be about doubled. On the one hand we are faced with a rather
firm mandate to hold the line at the FY 1963 level. On the other,
the Office of Scientific Intelligence and the DD/I have advanced
arguments for a substantial increase in this particular area in
FY 1964. 1 have suggested, that rather than discuss this matter,
which seems to me essentially one of policy, in the Financial Policy
and Budget Committee that it be submitted to the Executive Committee.
It is my understanding that both Mr. Sheldon and who pre-
sented the program to the Financial. Policy and Budget Committee,
agree that a briefing of the Executive Committee would be appropriate
and I recommend that the matter be scheduled for discussion in the
reasonably near future.
JOHN A. BROSS
Comptroller
cc: OSI/0
DDI/ Sheldon
Exc(ar" Sr?-o+9;_d<
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