DIARY NOTES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP76-00183R000300110045-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: November 17, 2016
• Document Release Date: August 8, 2000
• Sequence Number: 45
• Publication Date: December 5, 1961
• Content Type: NOTES

Approved For ReleaseP2000/08/27 RUP76-00183R000300110045-2
DIARY NOTES
25X1A
25X1A9a 1. I asked to return to me the letter to the Comptroller General
after it was signed by Mr. McCone so that Larry Houston could hand carry it.
2. I queried Bob Amory as to whether he still wanted to move the Foreign
Documents Division, Acquisitions Branch,from Arlington Towers to 1717 H Street, N.W.
After inquiring, he advised me that these people have decided now that they would
rather stay at Arlington Towers; however, he hoped that a little more space could be
made available to the Office of Operations at 1717 H Street, and I see no reason why
this could not be done.
3. John Tietjen was in to discuss a number of things:
a. is doing all right and will be able to come
back on a full-time duty status.
25X1A9a b. is in bad shape and probably will not return to duty.
c. With regard to
medical problems:
25X1A9a
25X1A9a
relationship on
25X1A9a
25X1 C
25X1 C4a
(1) has been and is oin to the
field to both the jobs . 25X1 A6a
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25X1A9a
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d. John has made some internal shifts in re taking
some of the administrative responsibility away from and bring-
ing it into the immediate office of the Chief, Medica to wit Frank
-having personal responsibility.
the agenda for a Deputies' Meeting.
25X1A
25X1A6a
4. I talked to General Cabell with regard to making a decision on-and
he has agreed to set up an early meeting with Matt Baird, an FE representative, and
Dick Bissell, if he would like to attend. This will be a preliminary before placing it on
25X1A9a
5. I had a long and rather unsatisfactory meeting with
and others concerning the National Photographic Interpretation Center and
whether it should be classified. Since security does not seem strong one way or another,
the real problem is to get a decision whether or not it is going to be classified. I consulte
with General Cabell by telephone who was indined to think that it should be classified. I
have since talked with Bob Amory who felt that it should not be classified; he will seek an
early meeting with General Cabell who will have to make a decision.
6. Ed Saunders brought another case to me wherein an employee had requested
reimbursement for a dinner that he had attended in Washington. I approved of this par-
ticular case but instructed Ed to develop a policy paper on this subject without delay.
Ed also indicated that he had learned that Mr. McCone was accustomed and liked to use
Government transportation requests in lieu of confidential funds. I asked him to get in
25X1A9a touch with and work out whatever arrangements Mr. Mc Cone wanted in this
regard.
25X1A9a
7. advised me that Mr. McCone doubts that we have reserved suf-
ficient space on the seventh floor for his secretaries. I have sent a memorandum to
Mr. McCone pointing out that the space available here will be somewhat larger than
what they occupied in the old Administration Building and that we think it will be satis-
factory.
8. Mr. Mc Cone queried as to what was going to happen to the "hill complex at
2430 E Street, " and we are preparing a memorandum to him on this subject.
25X1A9a 25X1A9a
25X1A6a 9. I talked with - in -, as well as and we agreed
that Don would return to Headquarters for a DPD assignment shortly after the first of the
year.
25X1A9a
10. I talked to about the possibility of finding a spot for Lucile
25X1A9a - and he said that he would be very glad to talk to her.
11. Mr. McCone advised me that Elmer Staats had called him about the budget
and stated that they would go along with the restoration of the Contingency Reserve to
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25X1A1a
that they would put in a separate line for Project OXCART in the amount:
25X1 Al a of and that they wanted to maintain Radio Free Europe at about its present
level. They also want 50/50 financing with the Department of Defense on the National
Photographic Interpretation Center. In response to my questions to Mr. McCone as to
what the NOA figure would then be, he asked me to call Elmer. He said that he had told
him that he would settle on this, provided that it was all right with me. I was unable to
reach Elmer but did get in touch with Bob Macy and at this point doubt very seriously that
25X1A9a we can settle on this basis. (On Wednesday, 6 December,- and I met with Bob
25X1 Aga Macy and Frank Ecker to get together on the figures and I have asked to draw
u' a
25X1A9a
25X1A9a
25X1A9a
25X1A9a
25X1A9a
p new set cating where we are still in disagreement with the Bureau of the Budget. )
In my conversation with Mr. McCone, he was emphatic that he would not accept any re-
ductions in the International Organization Division; however, I am not clear as to whether
he meant that he wouldn't accept reductions from the Fiscal Year 1962 level or from the
Fiscal Year 1963 requests.
12. advised me that Mr. McCone desired CIA to set up a secret
communications system between the Secretary of State and the Under Secretary of State.
I asked to look into this but am not sure how practical it would be.
13. was down to discuss the 29 November article by Robert S.
Allen and Paul Scott under the headline of "New Chief of CIA Cracks Down on $$" and
another article by the same authors on "CIA Still Pays Cuban Dependents. " As Chairman
of the USIB Security Committee, Bob is pursuing this, and I briefed him on what I knew
as to the possibility of where conversations with regard to these matters might have
taken place.
14. telephoned and asked that be entered on dut
as
y
25X1A9a a staff employee at grade GS-14. I asked to accomplish this as expeditiously
as possible.
NOTE: Extract of Item No. 2 was made for the Director of Logistics on 8 December 1961.
DD/S 61-4215
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-3-
 G ?4G51A-FADP76-001838 0030011.6045-2
the Cord Meyer Development Co. in Forest Hills, L. I
He is a friend of William Bundy, deputy to Assis-
:rr.,.r aw, tant' Defense Secretary Paul ' Nitze. Meyer, Bundy,
e-A MIt'._ --t,e.d n? _ ?a..... ~.. e1. n..1 .... e...i _..w
tory since he joined the agency early in the '50s. Only
a handful of persons know of Meyer or his position
and none of these will discuss it.
Before Joining the CIA, Meyer was national pres-
ident of the United World Federalists and a vocal ad-
vocate of world government.' His father was a state
Department official and his uncle was president of
111= "T. 29
C..
racs Down on
Unvouch?red , .
WASHINGTON . olui McConq, new head of the
Central _IAtelligeneq. Agency, Is preparing to tlghteh
Wayside. L, I. and who handles the CIA's unvouch-
,ered_funds- to make a full report on the $400 mil-
t money,
For Instance, McCone was shocked?to learn In
Europe that the CIA promoted or financed nearly ev-
ery major international socialist conference held on
the world. .
Many Questionable Activities
cy's foreign operations earlier this month, McCone
decided on this move after discovering that the CIA
bad financed dozens 'of questionable "eonfetenbVI,
groups, and other undercover activities throughout
Returning from a first-hand survey otChe
tivities.
for covert operations and intelligence gatherW g?+ac
McCone is also looking into the advisability of
another eat onable CIA activity. This is the unpub-
rments' and groups abroad, as some evidence now in-;
dlcat.es.
gathering missions or to promote socialistic move-
the continent during the.Past 10 years. '
Ile now ves ga nn~~~ o rmine whether
these conferences were 's 'dhged as intelligence t.
lished pra icq of giving large fees to U. 8.law firms
and.touudatlons for making intelligence studies and
tt7nhing the agency operational "advice", none of
which has been of visible help in improving the CIA.i
,In one case. a New York law firm was Paid more than
a million dollars in "consultant fees" with no evi-
one of % the real mystery men in government. Hisila ti
name has never been listed in a government direc-124
porting the policy of supplying U. S, military and;
economic aid to Yugoslavia's Communist'. W MW,
Another Time Bom6 Lighted
McCone also is ligh'.ing another time bomb with-%
In the CIA. '
,;,-,$ie is making a first-hand survey of the agency's
"estimates" division, which is headed by Sherman
Kent.
. The new CIA director is looking over these re-
ports to determine their accuracy and the impact I
that these -national intelligence estimates hav.Q onl
U. S. foreign pglicy - especially, U. S.-Sovlet rela-
tions.
Already, the unexpected move by McCone has
division.
If this should happen, the stage would be' set
- icy is, being based If McCone decides to shake-up the
'lose control over the "estimates" on which their po1-1
officials and members of the State Department policy
planning staff. These officials, viho work together in
'touched off a series of secret huddles between CIA,""
I drafting position papers, are concerned that they will
ties have failed to stem the tide of international
For. Rev~(om?unia~ l oc an a v~y"tlie! moll-1
300110045-2
 Approved For Release 2000/08/27 : CIA-RDP76-001 3R000300110045-2
Robert S. Allen - Paid Scott Report
Cu Still Pays Cuban Dependents
WASHINGTON - The Central Intelligence reported the CIA contemplates continuing the
Age" is paying from $}so to a month to dependents' payments "tmW the captives are
tutu CIA expenauures for rots purpose are $45 to i5 million. That's the estimate gives
000 a month.
The payments to the
wives and"other dependents
are based on the compensa-
tbn received by the refu-
gees as members of the in-
vstding forco. These range
from $I% a month for single
men to $225 for those with
dependents.
The dependents are being
paid in the form of checks
from a company with a
Oar.! Gables, Fla.. address.
? Investigators of the House Appropriations
Committee, which is quietly looking into the
- ce - financing of the ill-fated Cuban invasion, have
This concern Is a CIA "front," and
came from that agency.
pendents. and the setting up of the invaders' -4 .
training camp; recrtt1Wtg,' equipping and pay
ing them; buying grid charledng a smell fleet
the assaults: and the purchase of some 30'
World War Il combat planes.
Under questbning, Duties admitted the In-
vasion's accounts are still Incomplete. He could
not say when they would be In hand.
The Appropriations Committee imrestigators
also are still digging Into the affairs opt the
mysterious firm handling the dependents'
checks. Its files. and records have not yet been
made available.
In striking contrast to the $45 to $55 mil-
lion that CIA spent on the Cuban fiasco, the {
cost of the highly-suceesstul ?556 landing of
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 By ARIS'o)46F&[j %#aA@tt2000/08/27
New CIA Read Probes
Past Expenditures
Of A
enre
g
WASHINGTON - John McCone,
new head of the Central Intelli-
gence Agency, is preparing to
tighten the reins on the way his
super-secret agency spends its
money.
He is asking Cord Meyer Jr.,
who handles the CIA's unvouch-
ered funds, to make a full report
on the $400 million that he doled
out during the past 12 months for
covert operations and intelligence
gathering activities.
Returning from a firsthand sur-
vey of the agency's foreign opera-
tions earlier this month, McCone
decided on this move after dis-
covering that the CIA had financed
dozens of ' questionable confer.
ences, groups, and other under-
cover activities throughout the
world.
For instance, McCone was
shocked to learn in Europe that
the CIA promoted or financed
nearly every major international
socialist conference held on the
continent during the past 10 years.
He is now investigating to de-
termine whether these conferences
were arranged as intelligence
gathering missions or to promote
socialistic movements and groups
abroad, as some evidence now
indicates.
McCone is also looking into the
advisability of another question-
able CIA activity. This is the un-
publicized practice of giving large
fees to U.S. law firms and founda-
tions for in a k i n g intelligence
studies and furnishing the agency
'operational "advice," none of
which has been of visible help in
improving the CIA. In one case, a
New York law firm was paid
more than a million dullars in
"consultant fees" with no evidence
of positive results.
Mystery Man
and Nitze have worked as a team
in shaping and supporting the
policy of supplying U.S. military
and economic aid to Yugoslavia's
Communist Dictator Tito.
McCone is also lighting another
time bomb within the CIA.
He is making a firsthand sur-
vey of the agency's "estimates"
division, which is headed by Sher-
man Kent.
The new CIA director is looking
over these reports to determine
their accuracy and the impact that
these national intelligence esti-
mates have on U.S. foreign policy
-especially, U.S.-Soviet relations.
Already, the unexpected move
by McCone has touched off a
series of secret huddles between
CIA officials and members of the
State Department policy planning
staff. These officials, who work
together in drafting position pa-
pers, are concerned that they will
lose control over the "estimates"
on which their policy is being
based if McCone decides to shake-
up the division.
If this should happen, the stage
would be set for a complete re-
study of U.S. policies toward the
Soviet-Chinese Communist b l o c
and why these policies have failed
to stem the tide of international
Communism.
No Policy Change
Democratic congressional lead-
ers are being quietly assured by
the State Department that the U.S.
has no plans to recognize the
Soviet annexation of the Baltic
states. In a letter to all leaders
to dispel r u in o r s of a policy
change, Secretary of State Rusk
writes:
IA-RDP76-00183R000300110045-2
"The Department of State has
at no time issued a statement.
referring to any of the Bali
states as being traditionally a
part of the Soviet Union. The U.S.
government does not recognize
the Soviet annexation of Lithuania,
Latvia, and Estonia. We regard
these countries as having been
forcibly deprived of their national
independence. The diplomatic rep-
resentatives abroad of their for-
merly independent governments
continue to be recognized by our
government and a number of
others. The position of the Ken-
nedy administration in refusing to
accept the status quo of Soviet
domination over other countries
within the Soviet bloc as a per-
manent condition remains clear
and firm. This administration has
consistently recognized and up-
held the right of these peoples to
national independence, to govern.
ments of their own choosing, and
to the enjoyment of fundamental
human rights and freedoms."
Business ethics program being
drafted by the Commerce Depart
ment Advisory Committee will
start with a briad "statement of
principle," then advocate industry-
by-industry adoption of ethical
guide lines based upon this broad
statement. Department officials
want the ethics plan to be a pri-
vate effort, with the government
lending only ,"sponsorship."
Federal egort promoters are
talking up an idea-they call it the
"mother hen" approach-that may
be the key to More overseas sell-
ing by U.S. small business men.
The idea: A nanufacturer with
export experien m.e takes on the
job of handling overseas transac.
tions for a firm not established
as an exporter. 'The Commerce
Department is pressing the idea
as part of an intense effort to
entice more Ameiican companies
to sell their wares abroad.
Meyer, who handles these un-
vouchered funds, is one of the
real mystery men in government.
His name has never been listed
in a government directory since
.he joined the agency early in the
'50s. Only a handful of persons
know of Meyer or his position and
none of these will discuss it.
Before joining the CIA, Meyer
was national president of the Unit-
ed World Federalists and a vocal
advocate of world government. He
is a friend of Willis
deputy to AAPpr gAr Release 2000/08/27 CIA-RDP76-001838000300110045-2
tary Paul- Nitze. Meyer, Bundy,