DEAR MR. CHAIRMAN:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01240A000100140019-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: July 24, 2000
• Sequence Number: 19
• Publication Date: May 16, 1961
• Content Type: LETTER

Approved For Release 2001/09/04 : CIA-R080-01240A000100140019-7
COMPTROLLER GENERAL OF THE UNITED STATES
WASHINGTON 25
NAY1 6 196:1
Honorable Peul J. Kilday, Chairman
Special Subcceasittee, Central 3nGelliiierce Agency
Committee on Aid. Services
House of Representativeo
Dear Mr. Chairman:
The General Acoounting Difiee hoe noes * review o.. celectedectivi-
ties of the Central Intelligenoe Ageney (CIA) for the purpose of deter-
mining whether the scope of tho autti.t Ube General AmArating Office
could. be expanded sufficien-tay to make xeseonably comprehensive evalun-
tion3 of CIA activities that would be Oalpful to the Conieves.
Ibis raw-icy vas mede purseew. 4z, -4,a* iexerest ind-..olAted by the
Special Subccardttee at an executiie hearing in Nay 1959. Following
several meetinge between reereeentltveo of the general Accounting Office
and. CIA, the Director of Central intelligence and the COmptroller Osonerei
in October 1959 hoiden exclance of correspondence concerning the audit and
concerning restrictions on rtathj reviews in the area of sensitive
security operations. Various steps wan tuken by CIA to place the General
Accounting Office in a posIt4kn to Walk c comprehensive audit of the overt
activities of CIA. It is our view, however, that Under existing security
restrictions on our audit of CIA activities, we do not Lave aufficient
access to make comprehensive ;T:ev.lt.ve (41a continuing taris that wild be
productive of evaluations neipral to the Coe*.
We limited,our reviev f4 eelected overt activit3.e4 as acceaw to
covert (confidential) activities of CIA is denied us. We have had. nc,
access abateoever to the Plaaa Comment, and ve cannot effectively reviev
and evaluate the activities or the Supeort Component bevause the confi-
dential and overt activities ty)! tain compooent ere intearated to such ati
extent that ve cannot make reaaondo4 :omprobensive auCts. We neve been
given sufficient access to mtke reaaonably compreheneivl review of the
overt activities of the Intelligence Component, but PlAgh review, in our
opinion, vIll not be productive ot signifloant evaIuations become ve
not feasibly evaluate the extest to which needed over information in
available for collection or determine the need for the intelligence in-
formation selected for coactior,. and vac in the production of intelligence
reports. About Vj percent en: tilt aconaki expendituret el' the Intelligence
Component relates to payr--.4.1. e. c-thez' contractual payments for personnl
aervices rendered in solectinc,ci. the basis of persena1 lodgment under
broad. guidelines established by the intelligence commurity the specifi,.
information to he collected, colmted, end in the production of
intelli3Once reporto.PetfrfOrit
Plev-iou; u! tii.ctiblini by CIA be"
os..g r?iletk
0,1 1.15 At ?c?-b12z1lAiri 4 *tam
zy" it :.611, iltlettaMioa ef flak
1-,Romirt
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noth:n1or &rtifolst
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Approved For Release 2001/09/04: CIA-RDP80-01240A000100140019-7
Ile.3ed on our w tLiewe it (1) CIA is Xnanciug certain
Library of Core et tem etece eubstantially transcend. Cl' in-
terest end resoenrib 1 ty Tor provilirg a centralized reference service
as a service of conn coneern to the intelligenre comeunity and (2)
administrative controls over CIA's covert field orgenisetione
25X1A abould be stemegtheaed. In addi-
tion, vi have qeestioned, the arrangements under -which CIA ie financing
certain activities at the Department of State.
Two projects at the Library of Congrelie, Index of
Russian Accessions and the rest tereeean Accession indec, are
being financed through the operating bidets of the OffLca of Central
Reference. The budget of this office includes to finance
these projects in fiscal year 1961. The projects produee publications
which are primarily distributed to plaW.lo and private research organiza-
tions and libraries in the Uneted Stete antimony foreign nations, in-
cluding some In the U.S.S.R. Rad its sutellites. These projects, in our
opinion, substantially transcend CIA's interest andresponsibility for
providing a central refereneo facility as a service of *oilman concern to
the intelligence community.
We have been advined by CIA that tased on a review of the need? at
the intelligence comeneeity? it has beet determined that the present pUb-
lished form of these indexes is not eisential for intelligence purposes,
but, there are portions of the research work that goes into the prepara-
tion of the indexes that CIA would wept to continue, and the matter is
under active consideration to determine vhat portion of the related
costa should continue to be finencel be CIA.
Certain administrative procedures eertieent to ClA'm control over
the activities of its coven; field orgenization,
25X1A eeeeld he serenethened. We have been ad-
vised by CIA that changes are ee be ende ehlch will stretgthen these
eontrols.
'NTO P
Survey and. Biographic
the operating budgets 0
of Basic Intelligence,The
to einance these projects in 1
t or Etate onel Intelligence
aee being fieedbyCIA through
- of Central Re ranee and the Office
the to of feces include
In April 1961, we vela advised by CIA
that the Department of State end 04 have been considerin3 the possible
transfer of these Department of State activities te CIA. CIA presently
has under consideration othee eatteee raised by us on thee financing
arrangements, an vs will feenishevei vitt a supplementare letter when
decision has been reached theetee.
An as MUCh as we eannotl, tet one ceieion, effectively accoaplish any
worthwhile audit objectives on a contineene heels, we pla&). to discontinue
our audit of CIA activitese.
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Approved For Release 200
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We aro prepared to discuss them matters lottb you sbould
desire.
A copy of thig tette:: _83 Ix: todsy t tbe I.trctor if Central
Intelligence .
Approved For Release 2001/041i
Sinaermly
L.;tgretil 3vsert
Comptroller General
of thst limited States
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