OSS - TENTATIVE SUMMARY OF BUDGET ESTIMATES/EXPENDITURES FOR NEW ACTIVITIES/FUNCTION AND DUTIES OF THE BOARD OF REVIEW, 1943

• Document Type: CREST
• Collection: OSS Collection
• Document Number (FOIA) /ESDN (CREST): CIA-RDP13X00001R000100350003-3
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 410
• Document Creation Date: November 3, 2016
• Document Release Date: October 1, 2013
• Sequence Number: 3
• Publication Date: September 14, 1943
• Content Type: MISC

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Declassified and Approved For Release 2013/10/01 : CIA-RDP13X00001R000100350002-4
Declassified and Approved For Release 2013/10/01 : CIA-RDP13X00001R000100350002-4
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cert try that this it. tiorournt has beer prepared
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frity with th. requ I reatarits of tt.xeouti ye Order illo. 8512
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Declassified and Approved For Release 2013/10/01 : CIA-RDP13X00001R000100350002-4
Declassified and Approved For Release 2013/10/01 : CIA-RDP13X00001R000100350002-4
y1 1942
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crul:md in or tronsforrod from 'rt.- 1,,o L 1)1.141 z)t 4tiktootli. !�
'D1itrIct of Col umbi II bj p..ny , ot Kr/. :or 711.4 ,,,111)-717:;er..7mitow Avg.; *WI ;t0.4Mattlet.
for work on .FA FederalC';oyornziont..pJ4-xr 01...1 lit Ir. 1:).1144,:tat* "YutS
of ;ho 48 Stato's or tho..1.'Sistrlict .o.?,!;',.'r�"olitrt.bia,vEtincil j''.';';�zzry:' LI i',"4 ' 'Jr ;'l, or; '.
1;?-162r 01'.1 g Ina-11Y ont �red' thertiflift for �p a cif 440 i/n.j. ' 0,1 ZPteit, 0 x or
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..aarine Service in a locat iort in ovt,j.'o.CItq,1, �-1,i3 ;4"1�,i-ELPII� oi, (..11,,-; Di Arti�;t; ,I;:, i',' ' ' �
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Columbia, and have boon relne.sod therofrom unaer ho.toTlii.bimd1t1011,8 t,3 11;110
loce,tioa outside of th 0 48 .-ittlto3 or tho 171,134:,71.::t oT Colue)i A NIA.Ortr. t 40Y AV*
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employed.
3. .1.;xc Opt as pro vi ded in p ara'r,ro
differential shall not thereafter bo pa'id
applies and who does not' moot thci roquir:
4 o1 thin 't),..rd,tor, such
to, toy ,emp,Lorpo tioAn tktia ,o:rdoz
=onto of pitizz.nipb.. 2 o,C orders.
4. :E;mployees to whora this orderppli,o,,3'1,,Ifko., 'cin :(une�'30, 1945.
beini.; paid a caographic cliff ercaticd, , ??rt .!.lho doo:p met the roquir.eateta .
. d. .
of paragraph 2, shall n,Jvortheloss coat-in-4o t.o roce,:tve',tho; dollir 'rtitte-ft,': :.
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such differential., except that if at, ,any:subsollluo4to.3-iiae,,..,301,.-19,43:,
bhp 13te.tutory 'bo.:",ic 2.'"F.It (3 t 0 V hi ch. thy )iere , er.tit1e1 on 'that dats. ,,stall. :bSo.
incroased for any reason, including 'baSic'pay, sca1ei.reldS10115,';'ITIMOt1Oal".:L ,-
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and ii-thin-grade sala.ry advancement 6 , t 310`,ttol,iiir cr
able on June 30, 1945, :...3hal1 then b.e sil'ocessively,, reduced 'bi.. the,
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each such increaz:e� but not to an extent that ,would,' reduce the esiplloyes
statutory basic -4-a.te below the skrn of is Jurne: "30,, 1'45 :stitItutozy bisi.e., rmts:
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and d:ollsz.- differe.ntial rate.
,
5. Thi s order s bAll not u affect the provisions br any' Act ot:, Congrisii-
expressly authorizin.;:;the payment of,c1.4-ifialsseri4ice:64�idis,thos
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48 States and the District of 'Columbia:
Declassified and Approved For Release 2013/10/01: CIA-RDP13X00001R000100350002-4
donerable Ravol4 f).
Director
Dureau of tho 1:41,19t.
lashtngton 25. D. C.
2ursuant to an unde:stand rimehod mtt; n comfrelinc9
1:epresentatives or th,-) War and Navy Tktpertr;unts� hho. .Oursn.n
TJudt:et. and the Civil Service Camistion, *41.th :11r. Cleer J. �.1choemlaan,
ldllinistrative Assistant to the President, on j'unil 19c 1945, t,he
CoGInAssion has prepared the attached draft or an-7'incutivo order to
f.:olJorn the payment of ceographic differ,outiOls to Yodersa imployoes
outcide the 48 Staten ;:iid the District of (.;elumbia. wheso basic .ratea
are established under the Clascation )1,.ct of 1923, as amonded.
The understaadi- is taat thiG draft io to the Bursau
OC the Budi2et as a vehicle for securiii8 the vie..er the-varioua__
aacies havin positions ia extra-territorial locations.
".:-J'y direction of the Corrirtission:
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Pli,iRFAI,A i'71-4/17:. F:1, I r) r:t; 17:1
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In ac:cordAncra
Order No. 7296, rpin'.inK
and Id r oc I n pin t I on �t.114-1 rnf';
budgo t hits rocoiv of thr. ic) I.
Cached)
Lotter, -dated, 'Iu'zia
miselon ;Inn d
Proposed Ex.ecu v Order enti tied :
;
hf pic-,1ArI r )1. I
pc). 71,3
tor, of: FIU*vsnu. ?e
row-ini,r. OA; pK3,
"Governing the Payuten t o CAGeof0ap.hic: C.Cer,is.a-,
to Federal lOmployeas Ser-r autstde,
the Di s-tri Coitrn$:ta � 4
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'Te Diector of
appreciate receiving an
respect,H to this mat ter.
the Bureau
expression
Very truly Yours .
1,
I Legislative Ref
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LAssist nt Dirac r
e nce
,
Major General' William J. Donovan.,
;1r
Director, Office ,oih Strategic, ; SerTices,.' ,..;
Washington, D. C.
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It is our undersia0d1 *het 1#, orent-ormos tiosiso
agencies which ourventi/ psi rjlo 414100!'w
� n t al are ab14 to .Curn 1 a 4 , ,:)to,f4 Tyz
alight chars*. In 004 hoiewmr, t4ta le'qr14104 ,ver*leol,
and our'employmra 4414' 50r*(014-.;14 .1141' 7?ro*IiirsAPalr itiarVom.
The proposed peg dirformintlal wou2471.1n 11.00,,4111: �,
'dillegivanLiWo, as P.17%-l-k tvolthei ' .41101:014 Ime
lovernmsnt quartoes. 1
the proposed , Is met teltensied
as � substitUte for the-lly AlAortel's'a4ereeneie oregmid
in speordenoe'wIth ,regulationsiOre 14- the ?IN/SI 441ft t � Zuni
the impact ofthoproposodorder 40, Ireula, A.41114 aS. '
INISIWOd ip La not entirel clear. ?rsk 13 or tbe,ciroviar
provides 'in part that, "Th* 11Y1n74nd rs 'allowanowe
ft
authorised by ?art 4 ot,t4141.,oireVtlar 10, priodlAlete4 C!!;40,
payment:of-oompartble tor'the,pOrroriasnile of abatia?
work by implopoes in the '.InItedtOtes.,044 in ro.reign SountOtae�
If the propoaed *sogrephil* 4ir17erentia1 Is
tended as an incentive or Lr4u61n4 eoplOyies to sarve at statIame
oUtside the continontal 1-1nit4)d 5tat14044.Wi4%!..:.a Capertoz *. oU
this aq.ency to date that stmh an loointlire ls not neeossary.
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- -, Declassified and Approved For Release 2013/10/01 : CIA-RDP13X00001R000100350002-4
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0 il.,-i. ID;:-.: pi,. 0',..) tr.: :3 'VIII (.3, ��� 0,4`DC.t A:5 NI .k1 , a 4 14-s and certain enlisted men who are
required to work in Washington, it was very difficult
to live and to pro3erly perform their duties on the
allowances provided b-.; the Army or Navy. The
Committee ecommended that Colonel REHM ascertain
the maximum allowances made available by any ser-
vice of the Army or Navy and conform to such regu-
lations. It WO1 .snuested that Colonel REHM ascer-
tain through Commander Smith what allowances were
made by the Bureau of Motion Pictures, Navy Depart-
nent,
Note:- At this point Colonel Richards left the meeting.
(d). Undercover Arients, Commilsioned or
Enlisted. !
Colonel REHM pointed out
that undercover agents
were sent,to variou's places at,road, including enemy-
occ'lipied territory. He stated that the draft status
of these men variedo'some being subject to draft and
some not. Colonel REHM requested authority to pay
such agents special allowances up to but not exceeding
Declassified and Approved For Release 2013/10/01: CIA-RDP13X00001R000100350002-4
EXCERPT FROM MINUTES OP EXECUTIVE COMMITTEE MEETING HELD IN
COL BUXTON'S OFFICE, ROOM 119, ADMINISTRATION BLDG., 25TH
& E STS., N.W., ON WEDNESDAY, MARCH 3, 1943, AT 2:30 P.M.
**************
PRESENT:
Col. G. Edward Buxton, Chairman
Mr. George K. Bowden
Col, M. Preston Goodfellow
Brig. Gen. John Magruder
Lt, Col. Atherton Richards
Mr. Elmo Roper
Comdr. Wm. H. Vanderbilt
Colonel Lane
present for item #2.
0 COMPENSATION AND PER, DIEM ALLOWANCE TO
COMMISSIONED OFFICERS AND ENLISTED PERSONNEL.
This subject was presented by Colonel REHM and
recommendations made by the Committee as follows:
(a). Commissioned Officers on Duty in the U. S.
Colonel REHM stated that no problem arose with
respect to this category since there never had been
occasion to pay such officers more than their regular
Army allowances or salaries.
(b). Conmissloned Officers Abroad.
Colonel REHV stated that MIS paid their officers
up to and including til0 per diem, plus not exceeding
$400 per month for expense allowances. The ConmIttwi
recommended that the saMe per die M and allowance'
t -
! 1
, ,
should be paid to OSS officerer abrOadi with the pro-
!
!
vino that the payments Lnd Tsgulatlions tOlmo put int*,
effect by OSS should not be more *Norma than that
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CONFIDENTIAL
The Director
e
13 July 1044
B. (1) Military or Naval Personnel should receive nil
extra compensation while In the-Continental U. 3.
(2) In cases where militar7 personne2As assigned
to missions designed to operate behind enemy lines, origi-
nating in the Continental U. S., extra compensation may
commence when they are ordered to the POE for transportation
and cease upon the termination of the mission.
(3) In cases where military personnel is assigned
to duty in theaters abroad, extra compensation would commence
only when they *re assigned to a, mission designed to operate
behind enemy lines and cease upon the termination of the
5. The Board feels that in some cases extra compensation
ha3 been paid which is in fact allowance for expenses.
It believes that compensation should be kept completelj
separat.1 from such allowances. Expense allowances are provided
for under existing rules.
Furthermore, it recognizes that_ there ma7 be in
existence contractual arrangements cotrary to the above recommen-
dations. In this event, we recommendLthat the proper authority
be instructed to adjust or rewrite sUch contracts at the earliest
pra::ticable time.
c�.1.7-.7.) (Tr/ 11h
For the Board of Review:
C. M. SEARS, JR.
Lt. Colonel, AUS
Chairman
CONFIDENTIAL
1110
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GONFIDENT1AL
OFFICE OF STRATEGIC c'ERVICES
Washington, D. C.
13 July 1944
TO: The Director
SUBJECT: Additional compensation of Military and Naval Personnel
attached or assigned to 083.
1. It has come to the attention of the Board of Review that
a custom exists in OSS of making payments to certain members of
the Military services on duty with OSS as additional compensation
over and above their military pay and allowance.
2. Aut:Iority for this procedure seems to be derived from
a meeting of the Executive Committee held on 3 March 1943, though
it appears to have existed previously. The minutes of the meeting
indicate that the Committee made certain recommendations which seem
to the Board to be reasonable. It 'recognizes the fact that any
other procedure may lend itself to 'abuie, that it may be of doubt-
ful legality, and that It is difficuWto defend las a matter of
policy.
As examples of policy regarding extra compensation for
dangerous employhient of military personnel, the Army provides that
in arParachute Troop Organization, officers will receive $100 '
per Month and enlisted men 450 per month in addition'to their
regular pay from the time of enrollment in the parachute training
courae and to continue as long as the man is in an organization
where he may be called upon to jump as a paratrooper.
In the Navy an officer or Man in the submarine service
receives his base pay plus 50% as long as he is attached to a
submarine in corimission.
3. According to present records, there appear to be approxi-
mately 3 officers and 07 enlisted men who are receiving extra
compensation. Determining whether or not ts,ey are properly
ceivir,s such compensation is not within the scope; of the Board
of Review's activities, but it recommends that these cases be
investigated by the Office or Branch Chiefs (in Washington or.
abroad) concerned, with a view to bringing these payments within
.
the policy which the Board reccrunends below.
4. This policy is as follows:
A. In cases involving such military personnel as aliay
do the work of agents, additional compensation may be paid
to raise the pay of these men to the same amount t 3 that
paid American civilian agents for similar work.
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There is no legal objection
to oul�adoptin,3 such policies, so
ion as the
"agents" are expected
to do extra-hazardous 1:;ork, behind
eqemy lines, etc.
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� ;�1 r ......moil�����������+*!;,�� � t ....1111
;
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� � 0
General Donovan
-2- 25 Jaly 1W.te
queetion whether it should not have the approved ori,f(Inal In
files in cases where it is asked to pay out money on this author-
ity. I stated my opin'en that it would bc'best if re. ha6 this
Agency the feneral rule which is new being followed in the I;hite
House, i.e., to collect in Lb e Director's ujleali authorizations
and arprovals which the General has signed, 30 that these can be
readily located in one place at any future time. Until such a
policy is established, however, I can see no objection to the ap-
proved originals of this series being lodged with the Board of
Reeiew. It was the agreement oC the meeting that with your ap-
proval this should he done and that the Boar-1 of Review would notify
Special Funds '''ranch or all pertinent recommendations which you
have approved. Both Colonel Rehm and Mr. Goddard will be satisfied
with this procedure if you will first authorize Special Funds Branch,
to make payments on such notification. ColonelSears expreesed the
rillinuness of the Board oC Review to return its file of approved
originale to the Director if at any time it should be decided as
, matter of policy to collect ,this type of document in the Director's
rile.
Notification to the branches concerned of action taken by the
Director is, of course, normally made ler the Director's Cffice.
The Board of aeview feels, however, that in the case of !its recom-
mendations it would be best for notification to .1.;e made by the
Doard, since it knows all of thej'arties concerned and has discussed
the matter with them. This seems to me to be reesoneble, and it
is pr000eed in such cases that the, Executive Office, in notifying
the Lieard of Review of action taken, will request it in turn to
notify others in the Agency who are concerned.
5. All you kindly indicateewhether the fore,oinil, procedure
ycJr approval.
/
h..ovommenda4ons of '13
1 I 1t 6
o discuss I met this mornIng-Ti4th :4embers or, NW,
,0
t sevpr411,questiohs relatliNtip tki
recommepdatiopi 'the Board ahouldy4oe'lsaue ant'
handlingthen:I! conclusions werip' d
las 411'
; 1. Mat ivproina
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� -
14:ORANDLII TO: General Donovan
I met this morning with the members of the Board of,eideffew
to discuss several questions relating to the form in which"approved
recommendations of the ,Board should be issued and the procedure for
handling them. Our conclusions were as follows:
I. That approved recommendations of general application
should be issued as general orders in a designated number series
signed by the Director and not, as at present, as administrative
bulletins. This will eliminate any doubt as to the status of
such directives and will conforM to our established system of
general and special orders. Administrative bulletins of this
character which have already been issued will be redesignated
general orders in this series.
2. Administrative bulletins of the Board of Review will
be either (a) announcements relating to the organization and
procedures of the Board, or (b)opinions or background discus-
sions supporting recommendations of the Board which, it is fel
should be given general circulation.
3. There general orders are to be issued, proposed orders
will normally be submitted by the Board together with its de-
tailed recommendations. In appropriate cases the detailed rec-
ommendations will be issued simultaneously with the order as an
administrative bulletin. The order will normally begin m-Ith the
following sentence:
"The following recommendations of the Board of Review
hereby approved."
L. Some discussion was also held on the procedure to be
followed for notifying tLose.concerned of action taken by the
Director on recommendations of the Board of Review Alich are not
to be circulated to the Agency, but of which notice is to be
given to the particular branches concerned, e.g. SI and Special
Funds. It is now the practice to return to the Board of Review the
original document which it has submitted to the Director with his
written decision noted thereon. This is accompanied by a memorandum
of action taken frow the Executive Office to the Board of Review,
with copies to the General CounSel's Office, the Secretariat, and
the Director's files. Special Funds, Branch has recently raised the
. NiP ars - . �
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;
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Dia;-2.0R
Bd. Rev. :,emio 7/28/44 ,gsars
, to Director,, 1 "31)00181 Blunds,
OSS, Honolulu"--Comr.
Halliwell' s
Roc ou,aarlded
� "ir //1 �
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;
4 August
0' VEOa
Ed R07. M.erio 7/28/44 Sears to
Director re Special Funds, ()CS,
' Honolulu, resubmitted
'_-esubuitted per your
ravest.1
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iDno Lulu
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TO:
JiJ Y1. Board of .ke,14,
rr �
6 AVir
t�
r
c1:47w 41,-;-;4
tiu:te ,
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L;:4,-; :
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'General OrLior 9, -ea 1-..ied et* v a 26 1 ii4-4
hereby:id by Hl to
,
1
bo,ird of1 11L,L3v law aud ub ti tut in the
board of -::tav iew
rrror���������������....1.ILL
Lie board of v1 ew Jhtti I :advise the
Director ibti,, to Lyle foramiLi ti on or
polio!for, 'and 1,1,i direction of
,6 finunc ea bo Ui ii . aah ine,ton and in the
L'1 el ct. It 3h.: 1 1 d y , ev. I ay. and :ink)
13 001 L 10i.4:; .17%73 c t, to:
(1) :al f inudo iu 1 coil trois record
and a ci oulit ii tt dooLi nc iary;
(2) :di orooJad end i.ture.,; of un-
vouch) red fun t.h i i,l-rova 1 of
t Director or .Lt1L irector ; and
1
(3) 'juch 0 ti;ur _aLter,L, artainiuGto
Cin anc es 6 6 Lila Director 114 a .
The dot, rd L;la ohali Jona Llt of
Lc) be v(Jsi,ted by the GanerA
Couit; "
-7
. �
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Cherie a Cheston
Acting Director
-4�
4
4
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jr
vm,i7r
ehofthefrpard pf ,Reviei,
yLtheDirfictOr 'stated,
'n
this basic directivewill be revised and
,
resubmitted for your approval whenever', in the judgment
of the Director or the Board', such revision becomes
necessary."
2. Pursuant to the foregoing and oral diScuseions
with the Director, we recommend that the following action be
taken:
(a) That the attached revision to General Order
9, revised, be approved.
(b) That subparaarapha 3(d) and 4(d) of the basic
directive of the Board of Review be amended by deleting
the word "shall" in the first lines thereof, and sub-
stituting therefor the word "may".
3. The Board believes that the above changes will
enable it to retain sufficient authority to perform its
proper functions and yet will be a more realistic statement of
its objectives.
-
vs.
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13o ard of itpvi ew
Atte'ltion: Lt. Co
xecutive Office
Eltr�
t.,.:Crence s -lade to ��,T.3;.-.,'r
�
t.1
Ag .it 19tJ, r el a t g to e ;.):.)1/., b.] e c t .
9. e r e
,..
_. , I
rtpral Orcer No. 9, revise.,, ..-.
-,1 ,:::�-lg-d b:� t I. i,r- A c 1.; 1 n i.: Di r i. c t :7) r . 2
.. .
1
"--I -lin at-= 117-2 en S eItt a re C�r,';
fr iSq')arleo.
at tacq.;,...c.:. (7.,,c3ty
to been
g in 1.
tc
_,. 'copy f l'!ennrr..lricum
A 1944, face of ic L',e Acting
1.! r Ct �r �S tc i .71 ri2t 1
run
it. )
Asst. to ..'lyzocuti-ve Of
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' � � -.1.4 "
The followIng recovnendatiuns of tbo Board ot RO10.611 is
bereby approved:
j
lursuant to General c)rder llo. 91 ,
,
1. Conmitment or expenditure of oss,rtids, In the
following catec,ories, prior to specifiC -apprcval of
the Director or Asolatgnt Virvctors, ii prohibited.
1
9.. Not clearly included in a Planning Group
ovor-all or tIpecial program approved by thedDirector.
b. Inter-agency av,reenent or Joint 'Committee
not now In existence.
c. Establishment of an office, headquarters,
operation or aphere of activity in any of the
followinc, areas: ,
,
,
Vresent 141mits'41heater ,
Present IlacArthur Theater
Gem'', _Derlrnak, Vorway, Finland, Russia
Central America, South'Anerica or Canada
,1
2. The Deputy Directer,OrlinistratiVe services, the
DOplity Director Personnel and the Chief, Special Funds
aranch aro directed not to honor regisitionefer '
-materiel, personnel,or I:undo iiesuchlrequisitions� are
not In accord vith this order� J
J
I
41 4
411
411.
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f.111441czt;r,..1,?'�`
Office or Branch Chiefs who occupy key control points such as:
Chief, Special Funds Branch
Deputy Director, Administrative Services
Deputy Director, Personnel
should be instructed not to honor requisitions fOr funds, personnel
or materiel unless the new activity requiring thim had been duly
approved.
. A draft of a suggested order implementing the above recommendations
is attached hereto. We recommend that the order be approved and
issued:
�
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4
OFFICE OF STRATEGIC SERVICES
Washington, D. Cs
TO LIST S.
SUBJECT: Expenditures for New Activities.
The followIng recommendations of the Board of Review is
hereby approved:
1. Commitment or expenditure of OSS funds, in the
following categories, prior to specific approval of
the Director or Assistant Directors, is prohibited.
a. Not clearly included in a Planning Group
over-all or special program approved by the.Director.
b. Inter-agency agreement or Joint Committee
not now in existence.
c. Establishment of an office, headquarters,
operation or sphere of activity in any of the
following areas:
(1) Present Nimitz Theater
(2) Present MacArthur Theate.r
(3) Germany, Denmark, Norway, Finland, Russia
(4) Central America, isouth America or Canada
2: The Deputy Director, Administrative Services, the
Deputy Director Personnel ,anl the Chief Special Funds
Branch are directed not to honor requisitions for
materiel, personnel or funds if such requisitions are
not in accord with this order'.
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ye,
Office or Branch Chiefs, who occupy keY'control points
Chief:, Special Funds Branch;
Deputy Director, Administrative Services
'Denuty'DireCtor, Personnel ;
;should' be ,instructed not to: .honor requisitions for funds, personnel
or Materiel unless, the new activity requiring them had been duly
anproVed .
, .
,
A draft of alsuggested order implementing the above recommendations
;iS attached hereto. We recommend that,' the order be apnroved and ;
For the Board of Review
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-"NW-1W
' ,
in This embodies changes appr substance by Director
oved
before his dep the arture.
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OFFICE OF STRATEGIC SERVICES
Washington, D. C
e
TO: The Director
SUFJECT:
Functions and Duties of the Board of Review
At the end of approximately six ,months of operation, the Board
has taken stock of its positionrelative to your basic directive
and respectfully submits the following coMments'and recommendations.
Your basic directive, creating the Board of Review (General Order
No. 9, Revised, 26 May 1944) stated the broad purposes of the
Board as follows: - "The Board of Review shall advise the
Director with respect to the formulation of policies for, and the
direction of, all OSS finances both in Washington, and in the field".
Subsequently, in an attempt to bring to Office and Branch Chiefs,
an urderstarding of the Board's functions and duties, a memo-,
randem was prepared by the Board and approved by the Assistant
Director under date of 20 June 1944. Under this memorandum,
Theater Boards of Review were established and are now making
recommendations to Strategic Services Officers. We believe, these
Theater Boards are proving helpful.
The Board in Washington has, to date, made over seventy recommend--
attens to the Director. Many of these recommendations have not,
In themselves, involved large sums of money, but have rather tended
to bring uniformity throughout the agency in the handling of
problems of pay, allowances, per diems and the like. We believe
that your orders resulting from these recommendations have Contri-
buted to the morale of this agency and have saved many man hours
by setting a pattern under which adrinistrative officers can
operate.
As instructed by you, the Board has scrupulously avoided becoming
involved in administration or in the enforcement of the Director's
crders resulting from Board of Review recommendations.
The purpose and significance of our annual budget and our Con-
gressional appropriation, shouldibe made clear, to Office and, Branch
Chiefs, many of whom, quite understandably, now consider that
"If' it was in the Budget, it hap already been approved and no
further action is necessary".
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,
. hdve read undagr4e'with your acmoreadem
dr:Aed 8 Decitsbor 1044. ,I!thitk tie Board hes ixosforsed
an Invuluable oar,vioe 4urine, the-vaet six months.
to the Order which you propoze, I mere*
with L11 that is exprosc.4ed in it, but 1 do not believe
17,11t it 63oes fx,' enough. I wont the Po$re, to hevs the
jurisdicMion one oolitrol tonteaplfitodi by your
Bzsic Directive. This we oamot.eocomplish b, specify-
ing itLilted,number of m4,4tten3 which the Bord la to
oonoidar.
1 belleva that tha Board dioulahavsan, under-.
nt-Esndins wit,h evry Office aad iLranda of a 2 t:t.J to. the
of itn l)el'etions requiring the rxeperation of
builffftwta for ;Jubait:;i3ion to the ,Docirii of RWIII9W.
I eS.:."41.1d )ifl to hove th.: Eod di,Jeus this =tter with
1171_71.oe c,nd Branc4 he6(1 and k ii. adv1_2ed of the
E4ra workod out.
cStcir titha has ben derv:, we will consider
wIltilor any further Ordara aro nocob5ary.
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17-Z0009�001-00011-0000X�1-dCl-V10 1-oioio eseeIej -101 panaiddv pue Pe!PsseloeCI
2? Dec 1944
Ariz
make the =ore:.
Office of the General Counsel
r.re:N't5L ,
17-Z0009�001-00011-0000X�1,CICII-V1.6 1-oioio eseeiej -101 panaiddv pue Pe!i!sseloeCI
15 February 1945
We believe that the financia] records now maintained
are adequate for the purposes of this Agency.
Partially 1-ecau-e nf the lack of complete cost
accounting, hut principally because of security and the
intangibles involved we believe that any conslrierable
amount of wor.1: done in trying to correlate OSS activities
with the ascertainable ccst thereof would be difficult
to justify and that the results would be inconclusive.
It seems to the Board that a different approach is needed to rake
it function along the lines it believes ycm want and makes the
followinT suFgestior for your consideration:
That the 7--,oard be more thoroughly integrated with the D-Trectorls
office so that it will be in the situation of constant association
with those charged with making decisions about OSS onerations
and 2olicies. To accomplish this the Board suggests that you
reconstitute the Board to include one of the Assistant Directors
or tie 71xeciAtive Officer, - and the Deputy Director, Administrative
services and Deputy Director, Personnel.
Eoard earnestly hopes that it wil.1 have an or)1Dortunit-T to
discuss this memorandum with you beftre your departure.
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17-Z0009�001-00011-0000X�1-dCl-V10 1-oioio eseeIej -101 panaiddv pue Pe!PsseloeCI
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charnels and wanted' Col. Doering
to see it, immix= but,healso *anted
the ,General. to see it as soon as, possible.
,
I am keeping the carbon f it for bCD �.
,to see.
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Declassified and Approved For Release 2013/10/01: CIA-RDP13X00001R000100350002-4
Declassified and Approved For Release 2013/10/01 : CIA-RDP13X00001R000100350002-4
-
41 '
I.
8ECRET
3 ..
The Director
(d) Records:
16 February 1943
We believe that the financial records ,now maintained
are adequate for ithe purposes of this Agency.
Partially because of the lack of complete cost
accounting, but principally bees: le .of security and the
Intangibles involved we believe that any cOnsiderable
amount of work done in trying to correlate OSS activities
with the ascertainable cost thereof would 7,0e difficult
to justify and that the results would be inconclusive
It seems to the Board that a different approaCh is needed to make
it function along the lines it believes you want and makes' the
following suggestion for your consideration: -
That the Board be more thoroughly integrated with the Director's
office so that it will be in the situation of constant association
with those charged with making decisions about OSS operations
and policies. To accomplish this the Board suggests that you
reconstitute the Board to include one of the, Assistant Directors
or the Executive Officer, - and the Deputy Director, Administrative
Services and Deputy Director, Personnel.
The Board earnestly hopes that it Pwili,have,an opportunity to.
discuss this memorandum with you before,yourldeparture.
,
I
. rt.
Declassified and Approved For Release 2013/10/01: CIA-RDP13X00001R000100350002-4
hiV:
irector ,.,1 k�AHH lel Vebrun 1945
i
0 '.1 4 P tim-4
v!....e-05 -
^''''h
, , , ,.�
,L.
._
' k _ ,t,--
(b) Projects:"7 ' , .e,,. "
,,� ..,
(4A 0
vc 04
Almost without exception,litheOffice and. Bench Chie a
with whom we talked said that it, would rarely occur to them
that their activities fall int categories which are '
Identifiable under the phrase !'involving #5000.00 or more :
for any one prOject 'or purpose".' Most of their plans are
continuations or extensions of: activities which have been,
going .on for a long time, or are considered to be included
in approved Planning Group progriami or are. new activities '
originating in the Director's office. - ------ '
,
,
We do not believe that a ,cOst Accounting system which
makes it possible' to relate expenditures in d'ptail'to
specific so-called projects shoUld.be set up, i having in mind
the time, effortand'manpower which would be and '
being convinced that the net reSult woUlemake no substantial
contribution to the success of thii Agency or to the winning
of the war. '
We have studied existing cOntrols and are satisfied
that they provide reasonable safeguards for the funds
allocated to OSS, but that, at the present, time, commitmentsC4
The fact that the Bureau of the Budget allocates funds
to us on a quarterly basis is a definite restrictive
measure since money is made available only when the Bureau
is satisfied that we are operating in a prudent manner-.
The control exercised by the Deputy Director, Admin-
istrative Services as to numbers of employees in the Agency
and as to contractual commitments or materiel purchases,
makes it highly improbable that funds will be improperly
spent in these categories.
The control exercised by the Deputy Director, Personnel,
is a further safeguard.
The Special Funds Branch operates detailed controls to
make certain that expenditures are in accord With Agency,
orders, approvals or policies. . Control of Special Funds Is
further strengthened by audits made' by a'reptable 'public
accountant.
Declassified and Approved For Release 2013/10/01 : CIA-RDP13X00001R000100350002-4
.,
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Declassified and Approved For Release 2013/10/01 : CIA-RDP13X00001R000100350002-4
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