DCI BRIEFING ON OPERATIONS UNDER E.O. 11905
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Document Number (FOIA) /ESDN (CREST):
CIA-RDP79M00983A001500090008-6
Release Decision:
RIPPUB
Original Classification:
S
Document Page Count:
20
Document Creation Date:
December 16, 2016
Document Release Date:
May 6, 2005
Sequence Number:
8
Case Number:
Publication Date:
November 1, 1976
Content Type:
MF
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DCI/IC- 76-1438
1 November 1976
MEMORANDUM FOR: Legislative Counsel
FROM USAF (Ret.)
pecla Assistant to the D/DCI/IC
SUBJECT DCI Briefing on Operations Under E.0, 11905
1. Mr, Bush has approved the attached paper for use in
his briefing of Senator Huddleston in response to the offer
which you made during the conference you, Jack Marsh and
had on 1 September with Senator Inouye and
or u estop,
2, The DCI's note to me asked that the briefing be
arranged, which I am passing to you for action.
3, While Mr, Bush did not indicate anything he wished
cut out, he did note that the briefing was a bit long. I
am reviewing the paper to shorten it--primarily by taking
out the material from E,O, 11905 which indicates the members
and functions of organizations such as the OAG, CFI, etc,
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Attachment;
as stated
v
Was the attached dropped by the SSCI, did they
decide they didn't want the briefing? ? ?
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OPERATIONS OF THE INTELLIGENCE COMMUNITY UNDER EXECUTIVE ORDER 11905
(Proposed as a DCI presentation to the Senate Select
Committee on Intelligence)
INTRODUCTION
My comments today on operations of the Intelligence Community
under Executive Order 11905 are provided as a follow-on to the
discussions which Senator Inouye and Senator Hud.dlcston had on
1 September with John 0. Marsh, Counsellor to the President; my
Deputy for the Intelligence Community, I and
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Mr. George Cary.
The briefing will deal with:
--The functioning of the management and oversight
structure which the Executive Order created;
--The DCI?s follow-on program, and
--The manner in which restrictions set forth in E.O. Ii"05
have a_cfected the operations of intelligence organizations..
NATIONAL SECURITY COUNCIL DIRECTION
The Executive Order charged the National Security Council with
providing guidance and direction to the development and formulation
of national intelligence activities.
In carrying out this responsibility,-the NSC will conduct semi-
annual reviews, geared to the new fiscal year to help ensure the
maximum impact on program planning, budget decisions and. management
policies.
The first review will be conducted, this fall.
Matters to be reviewed include:
--Intelligence policies
--The needs of users of intelligence
--The timeliness and quality of intelligence products, and
--The continued appropriateness of. special activities in
support of national foreign policy objectives.
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Three separate inputs are being prepared.
The first is a written report from the Committee on
Foreign Intelligence. This report will:
--Summarize CFI activities since its creation in
February, and
--Identify the major program and budget issues
thus far encountered and those anticipated within
the next six months.
The second report will be provided. by the Operations Advisory
Group.
The third element, being prepared by my Intellignece Community
Staff in consultation with the NSC Staff will assess:
--Requirements of the major users of intelligence
products, and
--The timeliness and quality of intelligence reporting.
An ad hoc group representing major organizations of the
Intelligence Community has been working on this report for the
past several. months.
--Over ors hundred important consumers of intelligence
have been interviewed;
--Based on these interviews and. ongoing analyses of
intelligence products by the IC Staff, an overall
assessment is being prepared..
I am in no position to prejudge what will. result from this
initial NSC review of intelligence activities, but we are anticipat-
ing guidance which will be of direct use in our efforts to improve
our responsiveness to user needs.
The need for better control of sensitive intelligence activities
was stressed in the recent investigations, and the newly established
OPERATIONS ADVISORY GROUP is intended to accomplish this.
As you are aware, the OAG includes as its members the
--Assistant to the President for National Security
Affairs;
--Secretary of State;
--Secretary of Defense;
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--Chairman of the Joint Chiefs of Staff, and
--The Director of Central Intelligence
--with the Attorney General and Director of OMB
as observers
The Operations Advisory Group has four functions:
--To consider and develop a. policy recommendation for
the President prior to his decision on each special
activity in support of national foreign policy
objectives;
--To conduct periodic reviews of programs previously
considered by the Operations Group;
--To give approval for specific sensitive intelligence
collection operations as designated by the Operations
Group, and
--To conduct periodic reviews of ongoing sensitive
intelligence-collection operations.
The OAG is the successor to the National Security Council 40
.Committee, and was created to review proposed covert actions and
sensitive reconnaiss-ince activities.
As you are aware from my actions in keeping your committee
advised as to special activities within the province of the OAG,
the Operations Group is performing its assigned functions.
You.also'are aware that we are engaged in covert actions only
.to a very limited degree.
-.-The situation is a far cry from'the 1950s when more
than half of the CIA budget was being devoted to covert
actions and related operations.
--In recent years this figure has dropped to less than
5 percent of the Agency budget and it is even less today.
I am convinced, however, it is important that our Government
maintain a capability to conduct covert actions when the. inter-
national situation calls for such.
N
In the Operations Advisory Group I consider we have an effective
mechanism for review and recommendations concerning such activities.
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INTELLIGENCE OVERSIGHT BOARD
In the interest of assuring that intelligence activities are
conducted within the law and with full regard to the Constitutional
rights of American citizens, the President created an INTELLIGENCE
OVERSIGHT BOARD composed of three prominent private citizens.
--Ambassador Robert D. Murphy, who had a distinguished
State Department career
--Mr. Leo Cherne, an economist, who also is Chairman
of the President's Foreign Intelligence Advisory
Board, and
--Mr. Stephen Ailes, a lawyer and: former Secretary of
the Army
Executive Order 11905 gives this Board responsibility to:
--Receive and consider reports by agency heads, Inspector
General. and General Counsels of the Intelligence Community
organizations concerning activities that raise
questions of legality or propriety;
--Review periodically the practices and procedures which
the IGs and General Counsels use to discover and report
on activities that might raise questions of legality
or propriety;
--Review with each member
the internal guidelines
ensure their adequacy;
of the Intelligence Community
which have been issued and
--Report at least quarterly to the President and to the
Attorney General on the Board's findings;
--Report in a timely manner to the President and to the
Attorney General any activities that raise serious
questions about legality, and
--Report to the President any activities that raise
serious questions about propriety.
I personally contacted. all of the department and agency heads
concerning the adequacy of their inspector general capabilities to
respond to the Oversight. Board. requirements, and was in every case
assured that such a capability existed.
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On April 19, by memorandum to all CIA employees, I called
upon them to cooperate fully with the Intelligence Oversight Board.
Director of Central Intelligence Directives and CIA Head-
quarters Regulations' were updated to reflect the restrictions
on intelligence activities set forth in Executive Order 11.905.
The organizations of the Intelligence Community submitted
their first quarterly reports to the Oversight Board between.
15 June and 15 July according to a schedule set by the Board.
Reports to the IOB by intelligence elements other than CIA,
are not made available to me, although we have been informally
advised of some activities reported by.other organi_za.tions.
The content of these reports and any follow-on actions are
matters between the Oversight Board. and the reporting organiza-
tion, pl.u.s--if serious illegalities are involved--the President
and the Attorney General.
At the very minimum the Board is focusing our attention on
the requirement that we must continuously pay heed. to the legality
and propriety of our intelligence activities.
COMMITTEE ON FOREIGN INTELLIGENCE
Of the new organizations established by E.O. 11905, the one
to which I have devoted the most personal time is the COMMITTEE
ON FOREIGN INTELLIGENCE.
--I chair this committee, and its other members are
Deputy Secretary of Defense Robert Ellsworth, and
William Hyland, who is Deputy Assistant to the
President for National Security Affairs.
The CFI has a number of key functions relating to the management
of our foreign intelligence effort.
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It is charged to:
Control budget preparation and resource allocation
for the National Foreign Intelligence Program;
--Designate the intelligence activities and organizations
which are to be included in this Program;
--Review and amend as appropriate the National Foreign
Intelligence Program budget before it is submitted
to OMB;
--Adopt rules governing the reprogramming of funds within
the NFIP budget;
--Establish policy priorities for the collection and
production of national intelligence;
--Establish policy for the management of the National
Foreign Intelligence Program;
--Provide guidance on the relationship between national
and tactical intelligence, and
Provide continuing guidance to the Intelligence Community
in order to ensure compliance with policy directions
of the National Security Council.
This is a large order, I can assure you, but the CFI has proved
to be an active organization.
--The Committee has met 16 times, and the workload it
has undertaken has required the commitment of a sizeable
part of my Intelligence Community Staff.
---The CFI also has established that the Intelligence
Research and Development Council serve as a permanent
subcommittee to the CFI.
--Malcolm Currie, Director of Defense Research
and Engineering is chairman of the IR&D Council.
Most of the CFI1s attention has been devoted thus far to its
responsibilities for budget preparation and resource allocation for
the FY 1978 budget.
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This has not been without some difficulty,
--Differing interpretations within the Community of
CFI responsibilities under E.O. 11905, in constrast
to statutes and regulations which govern, for example,
the Defense Department budget authority, have raised
questions regarding the extent of DCI and CFI authority.
Since 80% of NFIP costs reside in. Defense-managed
programs, differences within the CFI were unavoidable.
-Nonetheless, as Chairman, I have held to the view
that, with strong staff support provided by my
Deputy for the Intelligence Community, the CFI can
and will;
-play a decisive role in the development,
review, and approval of the NFIP and its
budget;
--meet the expectations of the President for
better management of intelligence resources
and activities; and
--a.t the same time, accommodate to existing
authorities governing resource and budget
control of Departmental Secretaries who are
participants in the national intelligence
program,
--To do less, would render to the CFI little more than
a "pro forma" role in intelligence resource management--
a situation I consider unacceptable to both the spirit
and intention of I: , 0. 11905.
--In our effort to make things work well, we have, for
example, devised and established a CFI programming
and budgeting cycle which preserves the integrity of
the Defense Department programming and budgeting syste-1.
During six meetings in July, the CPI met with senior managers
of the NFIP to review their individual program recommendations for
FY 78.
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--In past years, I might note, total NPIP review was
conducted over a six-to-eight-month period.
--Thirty-three program issues were identified for
CFI deliberations, and each was decided upon by
20 July for preparation of FY 78 budget submissions
--This month, the CFI will conduct its review of the
budget proposals of the individual program managers
looking toward submission of the NFIP budget to 0MB
in November.
The CFI also played a. central role in appealing the results
of final action by the House and Senate Appropriations Committees
for the FY 77 intelligence budget.
--This was the first instance ever of a unified
Intelligence Community response.
--Senator McClellan noted the precedent with approval.
During its July review of intelligence programs, the CFI
defined a range of additional- issues to be studied in detail
before Committee decisions were made for FY 78 and the near-term
future. Some of the CFI directed studies are now complete; the
remainder are in process. The conclusions a.,d recommendations
of these studies will bear significantly on CFI final budget
decisions and the future of the NFIP as it relates to:
--the impact of a fast-changing international environ-
ment and an increasingly complex set of challenges
to the United States;
--increased sophistication of technological development
by the U.S. and. its adversaries; and
--continuing pressures of economic inflation.
While I am not entirely satisfied that the CFI has, as yet,
gained. full command and control of its responsibilities, progress
is being made:
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to iron-out differences, develop and promulgate new
directives for resource management throughout the
Community, and to test new procedures;
--substantive and procedural issues have been identified
and progress made toward their solution; and
--the Committee is demonstrating well that a Community-
wide comprehensive budget review process can be made
to work.
I am optimistic that the CFI will continue to gain stature
and momentum-in providing effective guidance to resource managers
of the Community and produce meaningful results for the President
and the Congress.
ACTIVITIES OF THE DIRECTOR OF CENTRAL INTELLIGENCE
Next, I would like to say a. few words about my activities
under E.O. 11.905 in addition to those involved in:
--Chairing the Committee on Foreign Intelligence
--Serving on the Operations Advisory Group
Lest there be any ambiguity as to the relation between the
President and the Director of Central. Intelligence, Executive Order
11905 clearly states that the DCI is directly responsible both to
the President and to the NSC, and that the DCI shall "act as the
President's primary advisor on foreign intelligence."
I meet alone with the President at least once a week, and I
think it is important that any DCI have this direct relationship
to the President.
--The DCI can thus be assured that intelligence which
he considers must be called to the President's attention.
actually is.
--Within the Intelligence Community itself, knowledge
that the DCI has this kind of personal contact with
the President strengthens the DCI position as leader
of the Community.
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INTELLIGENCE COMMUNITY STAFF
Most of the responsibilities the Executive Order assigned to
me involve Community activities, so I have paid particular attention
to strengthening and restructuring my Intelligence Community Staff.
--My Deputy for the Intelligence Community is, as you
are aware, a. military officer on active duty, and
his grade level has been raised from three to four-
star rank.
--I am seeking legislation authorizing two
Deputy DCIs, since the National Security
Act of 1947 provides for only one, who is
my deputy for day-to-day management of the
CIA.
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--The restructured intelligence Community Staff has three
major offices.
--An Office of Program and Budget Development
that if5v~ucs ~;i ecE~sul~po t-to~llie~C17 iri
execution of its responsibility to control.
budget preparation and. resource allocation in
the Community.
--An Office of Policy and Planning which prepares
Community plnlil~ingguidance and icy documents and
coordinates preparation of my Annual Report, and
--An Office of. Performance Evaluation 'and
Improveent. Phis sing mec Ianism for
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assessing the effectiveness with which the
Community is functioning.
As a means of emphasizing separateness of the Community
Staff from the CIA, I am moving the staff to a location
which is only a half block from the Executive Office
Building in downtown Washington as soon as the building
is refurbished.
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Overall, I consider a strong and impartial Intelligence Community
Staff essential if I am to executute my Community responsibilities.
Among the most important charges to the DCI in Executive Order
11905 are that he:
--Act as the President's primary adviser on foreign
intelligence.
--Provide the President and other officials in the
Executive Branch with foreign intelligence, including
National Intelligence Estimates.
--Develop national intelligence requirements and.
priorities, and
--Supervise production and dissemination of national
intelligence.
The basic purpose of our entire intelligence effort is to
provide timely, accurate and. responsive intelligence to those who
need it--including the Congress.
Accordingly, I have devoted considerable attention to the
mechanisms by which we develop the intelligence judgments which
I must approve.
My basic advisory instrument is the National Foreign Intelligence
Board, which I established this spring assuccessorto the United ates
.Intelligence Board.
--The most senior officers of each element of the Intelligence
Community take an active part in the deliberations of
this Board.
--The Board is supported by thirteen DCI committees,
several of which are specifically charged with
substantive intelligence matters. These include:
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--Weapon and Space Systems Intelligence Committee
--Scientific and. Technical Intelligence Committee
--Joint Atomic Energy Intelligence Committee
--Economic Intelligence Committee
--Three other DCI committees are charged with development
of guidance for intelligence collection to support the
production effort.: '?'
--Committee on Imagery Requirements and
Exploitation
--SIGINT Committee
ffum.an Resources Committee
The actual production of national intelligence estimates and
other major estimative reports is under the auspices of my National
Intelligence Officers.
--There are ten NIOs, one for each of seven major
geographic areas 'of the world, and one each for
three key topical programs:
--Strategic forces
--Conventional forces
--Economics and energy
--Within his area of responsibility, each NIO is
responsible directly to me for maintaining liaison
with the principal users of intelligence and ensuring
that their needs are met.
--I charge the NIOs to ensure that:
--All resources of the Community are
tapped in the development of national
intelligence products, and
--All agencies have an opportunity to
present their views, and express their
dissents if they disagree with the
judgments reached.
In an effort to improve the quality of our intelligence analysis
and to explore new viewpoints, we are organizing a panel. of advisers
from outside the Intelligence Community to enable us to tap specialized,
expertise in other parts of the Government, in academia and in private
industry.
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--We also have under way an experimental project
in which outside groups of experts relooking at
the same evidence as is available to intelligence
analysts. Highly controversial topics have been
selected, and separate, or--if you will--competing
estimates are being developed.
--We are, in effect, testing whether new approaches
can improve the quality of our estimates.
In the area of national current intelligence production,
which includes our responses in crisis situations and provision
of warning of upcoming situations of key interest to our policy-
makers, the production elements involved arc rather diverse, and
operate flexibly.
--The day-to-day coordination of national current
intelligence production is handled for me by the
Office of Current Intelligence of the CIA, supported
by the CIA Operations Center.
--The Community Strategic Warning Staff, located in the
Pentagon, is oriented toward specific military warning
of attack against the United States or its overseas
forces.
--The National Operations and Intelligence Officers
Warning Net connects key operations and warning
centers by secure telephone to enable immediate
responses in crisis situations.
--Use of a National Intelligence Situation Task Force
enables rapid development of coordinated reports in
a crisis situation.
As you might expect, since I became DCI, I have devoted much
of my attention to the intelligence product and to the manner in
which it is prepared.
I have been very impressed, I can assure you, with the ability
of our analysts and estimators and with their objectivity.
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There are gaps in our information base and, considering the
kinds of problems which we must address, there always will re,
but we are constantly seeking to improve:
--The manner in which we identify and state requirements
for information;
--The application of priorities to our information
needs ;
--The effectiveness of our collection capabilities; and
--The quality of the analysis which goes into our
intelligence products.
The arrangements for col.lecti_on.of information and pro -::uction
of intelligence which now exist under Executive Order 1.1905 are,
in my view, quite satisfactory.
The Executive Order specifically provides that the DCI mall
"act as the principal spokesman to the Congress for the Intelligence
Community and facilitate the use of foreign intelligence products
by Congress."
Since becoming the DCI at the end of January, I have personally
appeared before various Congressional committees 41 separate times,
which I trust testifies to my spokesman role.
I also have put continuing emphasis on our readiness to provide
briefings and documents as required by the Congress in execution of
its responsibilities.
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DCI RELATIONSHIP TO CIA
Before ending this portion of my remarks, I would like to
comment briefly on two matters which I am sure will be part of
your charter deliberations.
The first of these is whether the Director of Central
Intelligence should be separated from the CIA,
I recognize the criticism has been made in the past that
the DCI's position as head of the Intelligence Community is
incompatible with his position as the operating head of the CIA.
--The charge is that this forces the DCI to be both
an impartial arbitrator and an advocate at the
same time.
On the basis of my own experience over the past eight months,
I do not consider this criticism is valid.
As you know, Executive Order 11.905 provides that, to the
extent consistent with my statutory responsibilities, I shall
delegate the day-to--day operation of the Central Intelligence
Agency to my Deputy Director.
I have clone this, and Mr. Knoche is fulfilling that role,
thereby giving me added time to devote to my Community responsibiliti.e:
On the other hand, I could not execute the responsibilities
assigned me for the production of national intelligence without
the base which the CIA provides, particularly in current intelli-
gence, in warning and in periods of crisis.
In my view, it is essential that the Director of Central
Intelligence also be the operating head of the Central Intelligence
Agency if he is to effectively carry out his assigned responsibilities.
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THE ADEQUACY OF DCI AUTHORITY
A second matter which I expect to be of concern to you in
your charter deliberations has to do with the proper role of
the Director of Central Intelligence and the definition of his
authorities and responsibilities.
I consider that Executive Order 11905 has gone a considerable
way toward the solution of these issues.
--The Executive Order makes clear those matters in
which the DCI's position and authority are paramount,
such as his responsibilities as the intelligence
advisor to the President, as intelligence spokesman
to the Congress and as the official responsible for
the production of national intelligence.
--In my view there is no question as to the
current adequacy of the DCI authority for
control of the production and dissemination
of intelligence of national-level interest.
--The Executive Order also makes it clear, in the
area of resource allocation, that U.S. intelligence
activities must be reviewed in their totality, but
that a,:tual allocation arr. angements are a function
of the primary role and mission of the assets under
consideration.
--This was explicitly covered in the provision
of the order that neither the DCI nor the
Committee on Foreign Intelligence shall have
responsibility for tactical intelligence.
With regard to the allocation, application and central control
of Intelligence Community resources, however, the DCI authority is
more figurative than fact.
--Although the DCI is the designated leader of the
Intelligence Community, his full authority over
and responsibility for allocation of CIA resources
does not extend to other U.S. foreign intelligence
agencies.
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-This poses problems to the DCI's leadership role
since, as you might expect, conflicting views can
arise within the Intelligence Community as to
decisions affecting the resources and programs of
individual. departments and agencies of the Community.
Executive Order 11905 deals with this problem by assigni.rfg
budget and. resource allocation responsibilities to the Committee
on Foreign Intelligence, which. the DCI chairs and. on which the
Defense Department is represented by the Deputy Secretary of
Defense.
--Obviously, there is a potential for difference in
approach on resource allocation matters between the
responsibilities assigned by Executive Order to the
Committee on Foreign Intelligence and those assigned
by statute to the departmental secretaries.
--.However, the CFI provides an organizational
structure in which any issues between the
DCI and. the Secretary of Defense, for instance,
can be resolved.
--The CFI is a mechanism for discussion and
adjustment on matters in which I consider
reasonable men can reach agreement.
--The present budget program cycle provides
an opportunity to assess how well the CFI
can perform its assigned responsibilities.
Overall, I consider that Executive Order 11905 represented
a major step forward in terms of clarifying the role and authorities
of the Director of Central Intelligence.
--It gives him an unambiguous position as regards
responsibility for the production of national
intelligence.
--Through his chairmanship of the Committee on
Foreign Intelligence the Order gives the DCI a
means of exercising leadership in resource matters
without intruding on the established authority of
department heads,
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--In the context of Community actions, the
DCI is looked to for leadership rather than
authority in resource management.
--The Executive Order provides the
In my view, the Executive Order proposes a checks-and-
balance environment which should prove advantageous in establish-
ing better command, control and development of a national intelli-
gence program over the longer term.
ACTIVITIES OF ORGANIZATIONS OF THE INTELLIGENCE COMMUNITY
As you are aware, Executive Order 11905 briefly sets forth
the responsibilities and duties of senior officials of each
organization of the Intelligence Community and the responsibilities
of the separate organizations.
The reorganization of intelligence elements of the Office of
the Secretary of Defense, on which the Committee has been briefed
by Mr. Ellsworth and his staff, was a deparumental initiative and
not something required by the Executive Order.
Since the overall activities of the various organizations of
the Community were not changed as a result of the Executive Order,
I see no need for? further comment.
Instead, I will turn to my final topic, which is the manner
in which restrictions set forth in E.O. 11905 have affected
operations of intelligence organizations.
IMPACT OF IZESTRICTIONS ON INTELLIGENCE ACTIVITIES
About one-fourth of the text of Executive Order 11905 is
devoted. to Section S, titled "Restrictions in Intelligence
Activities,"
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