RESUME OF MACY TRIP TO FAR EAST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A002500390009-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 9, 2016
• Document Release Date: June 7, 2001
• Sequence Number: 9
• Publication Date: March 10, 1958
• Content Type: MFR

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MEMORANDUM FOR THE RECORD:
SUBJECT: Resume of Macy Trip to Far East
25X1A9a gave Colonel 25X1A9a
1. On Friday afternoon (7 March 1958) Messrs.
White a general resume of their recent trip to the Far Eastern Stations with Mr.
Robert Macy, Bureau of the Budget. Present at the meeting also were General 25X1A9a
and Messrs. - Saunders, 25X1A9a
GENERAL
25X1A9a Mr. _ indicated that in his and Mr.-opinion the trip generally was
successful and, that while Mr. Macy found certain things that he was not in agree-
ment with, they felt some of his preconceived notions concerning our activities had
been changed -- in our favor. Mr. Macy did not confine his inspection and review
to CIA but also looked at other Government activities. This, according to Mr.
_ was to our advantage in that as it turned out we were pretty much in line
with other Agencies insofar as plush living conditions, number of automobiles, and
allowances, etc. were concerned. Mr. - said that he was quite sure that Mr.
Macy would pre are his report before coming over to discuss his trip with the
Director. Mr.aw also indicated that Mr. Macy's report would be in two parts;
namely, administration and operations. He further indicated that the administrative
part of the report was to be sent to all Agencies and that the draft of this report
would be cleared first with CIA for security considerations only. The operational
report would be submitted in draft for factual review and security implications.
Apparently, neither of the drafts will be submitted for general comments or con-
currence.
ADMINISTRATION
25X1A9a in general Messrs. felt that we were in good shape and made
a fairly good impression on Mr. Macy. As previously mentioned, this gave us an
opportunity to see ourselves compared with other Agencies, and the results seem
to indicate that we are not out of line. Listed below are several items covered
specifically by Messrs
a. Housing. Mr. Macy did not appear critical of Station Chiefs' houses
and voiced no objection to the method in which we obtained houses for our
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people. He indicated that perhaps our procedure has not been administered
too wisely insofar as some of our medium and lower grade personnel are
concerned. Mr. Macy, however, concedes that the allowance structure is
not good and that something should be done Government-wide to solve the
housing problem. He thought perhaps Public Law 480 (foreign currency
accumulations) might be used as a partial solution. Mr. Macy felt that
25X1A6a our housing on was plush -- not only our housing -- but all of
2WA6a
b. Representation Allowances. Mr. Macy indicated he had not studied
this problem sufficiently to come to any firm conclusion. He feels some of-
ficials do not have enough representation allowance while perhaps others are
a little on the high side. He was somewhat critical of the "residence allot-
ment" provision in ours. Other Agencies (except ICA) do not have this
provision.
d.-Hardship Allowance. Mr. Macy does not feel the hardship
allowance is justified on~Wnd may well recommend that it be eliminated.
This, of course, is not aimed at us but applies to the Government generally.
A
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e. Average Salaries and Average Ages. We compared favorably
with other Agencies insofar as average salary and average age was con-
cerned.
f. Schools. This is a rather broad problem and probably will not be
covered in any great detail in his report. One minor point is that in_ 25X1A6a
Mr. Macy feels that the system 25X1 C4a
we pay in
should be u orm. 25X1C
EIM
OPERATIONS
Mrsexplained Mr. Macy's reasoning behind his desire to review opera-
tions which, simply stated, is that he wanted to be able to assure Congress that
some external evaluation of operations was made. At each Station Mr. Macy told
the Station Chief that he was interested in seeing that Congress did not get involved
in the substance of our work and felt that the best way to avoid this was for the
Bureau of the Budget to get involved in it. Mr. Macy referred to the Atomic Energy
Commission and Congressional controls over it.
At all Stations Mr. Macy was given thorough briefings on operations and in
=was taken step by step through a successful project which was in operation
and an unsuccessful project which had been terminated. Mr. Macy evidently felt
that it took too much time to determine wh ether or not a project was or was not
successful and indicated quite a lot of interest in working out some system of pre-
evaluation of projects. Messrs. both indicated that as the trip
progressed and Mr. Macy saw more and more of operations, his attitude on
evaluation changed considerably and that some of his. preconceived concepts did
not hold up. He still feels however, that the operators are doing their own
evaluation and that some form of independent evaluation is needed.
Some specific items covered are listed below.
a. Communications. At the beginning of the trip Mr. Macy was pretty
firm in his belief that we should have one communications system for all
overseas Agencies. As he went along and was briefed on some of our
clandestine operations it appeared that he recognized the need for CIA to
have its own communications system. He evidenced some concern over the
amount of equipment we kept on hand for agent-type operations when at the
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2. At the conclusion of the meeting, Mr. raised a question witH 25X1A9a
Colonel White on the advisability of he and Mr submitting a report prior 25X1A9a
to the receipt of Mr. Macy's report. Mr. ~elt that. Mr. Macy might query 25X1A9a
him as to whether he had prepared a report and would perhaps, ask to see a copy
of it. Colonel White said he thought they should go ahead and prepare a report
since it would be helpful to the Director in preparing him for his meeting with
Mr. Macy.
Executive Assistant to the
Deputy Director (Support)
EA-DD/S:CEB: ecb (10 March 58)
Distribution:
Orig - Colonel White
1- Mr.
1- Mr.
1-Mr.
3-DDS Files.
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