ASK U.S. DETAIL ALL CIA FUNDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01601R000100160001-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 140
• Document Creation Date: December 12, 2016
• Document Release Date: November 30, 2000
• Sequence Number: 1
• Publication Date: December 19, 1972
• Content Type: NSPR

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DES LSOTi1ES, IOCIA
TRIUN
-- 113 , 7 81,
DEC 1913-&
'Ask U.S.
All
-w
CI
BY Tlmmas B. Ross
but for the purpose of over-
turning a ruling by a U.S. ap-
peals court in Pennsylvania
that a lower court should give
Richardson a hearing.
The government's petition de-
Glared: "The decision below, if
allowed to stand, is almost cer-
C 1972 Chicago Sun-Times tain to spawn a significant in-
WASIIINGTON, D.C. - The (crease in suits by taxpayers!
Supreme Court has been asked challenging a wide variety of
go ernment programs and a'
to compel the government to
significant number of congres-
disclose disclose how much money is'sional statutes."
being spent by the Central In-
telligence Agency (CIA).
William Richardson. an ac-
' countant for the public defend-
er's office in Greensburg, Pa.,
appealed to the court Monday
to enforce the constitutional re
quirement that "a regular
statement. and account of the
receipts and expenditures of all
public money shall be published
from time to time."
Specifically, Lich a r d s o n
asked the court to declare un-
constitutional the law that
permits CIA )Honey to be hid-
den in the budgets of other
government agencies and ex-
peaded without public ac-
The government argued that
Congress had a right to exempt
the CIA from the constitutional
requirement on total disclosure.
It is estimated that the CIA
spends more than $1 billion al
year and that the other in-,
telligence branches, all under,
control of the CIA director,
spend $4 billion. Most of the
money is hidden in the Defense
Department budget, principally
under expenditures for large
weapons systems.
Richardson, who is not a
lawyer, argued th fit` t17e court
should hear the fi~ase because
the CIA practice distorts public
Understanding of the entire fed-
eral budget.
Not only are the CIA funds
kept secret, lie said, but "fal-
sifying data must he in-
serted" in the budgets of ;ill
other agencies that act as
conduits for the CIA's money.
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~t ~$ki c~ s ie M id
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CHICAGO, ILL,.
SUN-TIMES
M - 536,108
S - 709,123
O L C .19 1972.
Suit-Times Burviw
WASHINGTON - The Su-
preme Court was asked Mon-
day to compel the government
to disclose how much money is
being spent by the Central In-
telligence Agency.
William B. t ichardsctt, an
accountant for the public de-
lender's office in C;recnshurg,
Pa., appetnled to the court to
enforce the constitutional re-
quirement that 'it regular
Statement and Accoc:r.i of the
Receipts and Expenditures of
all public Money shad be pub-
lished from time to time."
Specifically, Richardson
n led the court to declare u111-
constitutional the Inw chat per-
mits CIA money to be hidden
in the budgets of other govern-
ment agencies and expended
without public accountability.
It is estimated that tho CIA
spends more than 51 billion a
year attd that the other
in- ill, under
control of the C1A director,
;.i7 nd another $ t billion. Most
of the mc.'ney is hidden in the
1i)efense Department budget,
principally under expenditures
for large vrcatwns s_ ,tents.
P-.ich,crd':un, who is riot a
tJrl.tued that the court
should lwar the case Because
the CIA practice distorts pub-
lie understanding of the entire
federal budget. Not only are
tLe CIA funds kept, secret, he
said, but "falsifying data must
be inserted" in the budgets of
all other agencies that act as
conduits for the CIA's money.
The government has also
asked that the case be heard
but for the purpose of over-
turning a ruling by a t:-S. Ap-
peals Court in Pennsylvania
that a lower court should give
Richardson it hearing.
The governtuetn's petition
declared: 1'1h,2 decision below,
if allowed to stand, is almost
certain to spasm it significant
increase In suits by taxpayers
challenging a wide tariety of
government programs and a
significant number of cungres-
sional statutes."
The government argued that
Congress had a right to ex-
empt the CIA from I'1e con-
stitutional requirement on to-
tal disclosure.
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 KNtJX"V~~rt 2W O1 L: CIA-RD
JOURNAL
14 - 66,978
DEC 12 137a
By Paul `.)Cott
WASHINGTON - The Ameri-
can intelligence community is
preparing for one of the most
sweeping realignments since the
Central Intelligence AE!ency was
established in the late 1940s.
It could also become one of
the most controversial.
In ordering the shakeup,
President N i x o n 's principal.
objectives are to tighten White
House control over the govern-
ment's vast intelligence commu-
nity and to make it more respon-
sive to changes taking place in
U.S. relations with Moscow and
Peking.
White I-louse aides say the
President hopes to accomplish
these objectives in several
ways. First, the President plans
to replace Richard Helms as
director of the Central Intelli-
gence Agency with his "own
man." This is expected to he
James R. Schlesinger, presently
Chairman of the Atomic Energy
Commission, and a nlcnlber of
the inner White house circle.
Second, the President plans to
drastically cut the budgets of all
intelligence agencies by an esti-
mated 5500 million. This would
mean big cutbacks in personnel
and operational funds for the
Central Intelligence Agency, the
Defense intelligence Agency,
the National Security Agency,
and the intelligence functions of
the State Department and mili-
tary services.
Significantly, the proposed
half billion collar reduction is
the same figure recommended
in a study made by a panel
headed by Schlesinger, when he
was Assistant Director of the
Bureau of Budget. When the
Schlesinger recon,nlendatien
was first circulated by the
White House, CIA Director
Helms and Defense Secretary
Melvin Laird joined forces to
successfully oppose it.
With both Helms and Laird
now leaving government, the
President has once again dusted
off the Schlesinger recommen-
dation and now wants the for-
mer Virginia University Eco-
nomic Professor to see if he
can't implement it.
The President would litre to
see Schlesinger test out some of
the ideas he put in vmers pre-
pared while director of strategic
studies at the Rand Cor noration,
a government financed "lhin%
tank" at Santa Monica, Calif.
These papers dealt, exclusive-
ly with how systems analyses
could be used to improve politi-
cal, military and intelligence de-
cision making, and cost cutting
in these fields. While at the
Rand Corporation, Schlesinger
also prepared a study on the
cost of nuclear weapons prolif-
eration which caught the Presi-
dent's eye.
In discussing the need for an
intelligence shakeup with aides,
the President indicated that he
was replacing CIA Director
Helms because the latter was
not aggressive enough to make
the changes he believes are nec-
essary in the intelligence corn-
munity. Helms, a career CIA
employe, was a holdover from
the Johnson Administration.
The President's view is that
the government's intelligence
roles and missions must . be
g radual!v changed to meet the
new relationship:; which exist
between the U.S. and Russia
and Communist China.
As contracts and negotiations
produce new agreement with
these communist pn',,,"ers, the
President is convinced that
much of the intelligence now
gathered the hatd way and at
expense may become
reat
available rorough mutual ex-
cl:cn_ e of infor;nation.
This proposed intelligence ex-
change is an into^ral part of the,
risky "partnership for peace"
strategy which hr. Henry Kis-
singer, the Plesklen.t's national
securi!v adviser, has succeeded
in getting President Nixon to
ado!;!.
Veteran intelligence officers
see the re!irrnnle?nt as a move by
tiie Prc'id. nt and Kissinger to
t'iake the inie!IE'wrco Cenhill!,rli-
tv more res on;ice to their ef-
forts to to-(:an policy to
build a new w o. Id order.
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 29 Oct 1972
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Q. Is the Central Intelligence Agency worth to this
country what it costs?-6.S., Los Angeles, Calif.
A. That is difficult to tell, since practically no man
knows what the CIA costs the U.S. taxpayer annually.
Its budget is so inextricably mingled with defense
appropriations that the truth of the agency's expendi-
tures is virtually beyond the determination of Con-
gress. Sen. John Stennis (D., Miss.), head of the
Armed Services Committee, and a few other Senators
are supposed to keep a watchful eye on the CIA, but
Stennis has long been regarded as a cooperative cap-
tive of the intelligence and defense communities.
STATINTL
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 DAILY WORLD
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Le,
slating daicteon
p
The House Ways and Means Committee's 20-5 vote
giving President Nixon the power to hack the Federal
budget has been described by Rep. James Burke (D-
Mass). a member of the committee. as "heading toward
a dictatorship."
The facts - support Burke's warning. The bill gives
Nixon the unlimited right to cut or eliminate any item in
the budget. It is the most sweeping such authority ever
granted to any President.
It. was a servile surrender to Nixon. in the exact lang-
uage which the Administration demanded. It gives Presi-
dent Nixon the right. in effect. to decide the Federal
budget unilaterally, in dictatorial fashion,
The Ways and Means Committee's action is an illegal
abdication of the powers granted to it and to Congress by
the Constitution.
. The committee voted for four years of totalitarian
rule over the budget of the United States. The Committee
members who voted for the measure are trying to cover up
their action by claiming that the President will not cut
Social Security. or veterans benefits. or aid to the states
and localities. But the Committee deliberately refused to
exempt these or any other specific welfare items from the
President's axe. The victims can be named now: the poor.
the Black people and other nationally oppressed minori-
ties. the working people. That's whom the Committee re-
fused to protect.
One area of the budget is certain to be spared by Nix-
on - the expenditures for war. war preparations and re-
pression. the appropriations for the Pentagon. the F13I. and
the CIA.'
The action of the Ways and Means Committee con-
firms that there is. as the Communist. Party election plat-
form says. a "grave danger of a military-racist-fascia
type of state. under. which the survival of even limited
capitalist democracy is threatened."
The action of the House Ways and Means?Committee
should he condemned by the people. by the trade unions.
especially. for the working people will be hit first and hard-
est by Presidential dictatorship over the budget.
Every House member should be called on now to press
for the Ways and Means Committee to rescind'its action
and. that failing. to kill the totalitarian measure on the
House floor.
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 STATINTL
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DEP T 19'12
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A virtual news blackout has been
declared by the nation's press concerning
the major legal challenges that have been
launched against the Central Intelligence
Agency.
\ P t i L.`
oi;s?~ F 4 F~1;^~r .rx=?~~ {~ r:se f~` ~ `^,,,, fink
c2~'J
Earlier this year on,July 20, an import-
ant decision in the U.S. Third Circuit
Court of Appeals guaranteed that the CIA
would be brought to court on a challenge
that had been in process since 1 968.
America'ss greatest newspaper "of record"
the New York Times, ignored the story,
as did the Washington Evening Star and
most other papers. The Washington' Post
carried the story as a small itch on page
tell.
It was confirmed that editors were well
aware of the story and its importance.
A call to one of Washington's two. dail-
ies produced this comment from a leading
reporter: "You can call it a 'press con-
spiracy' if you like, but we're not going to
print it and I'm sure no one else is either:
The August 10 filing of a suit in Wash-
ington against CIA Director Richard helms
and other government officials was a mat-
ter of court record and easily accessible to
the news media. In addition, a news re-
lease containing essential facts about the'-
story was hand delivered to the Washing-
ton Post, the Evening Star, the Associated
Press and United Press International.
A week later, not one line concerning
it had appeared anywhere in 'the country.
~'t }[[[[[[93 ~'~ `F/ 11.,'~ r/ `tea`, ,Cn a
4
*Special to the Virginia
The Washington suit followed closely
a trail blazing decision on July 20 of this The spy agency receives somewhere
year by the U.S. Third Circuit Court of between four and twenty billion dollars
Appeals in Philadelphia. In that decision each year in public funds (how much is?a
a majdrity of the court held that there closely guarded secret) that are carefully
was a serious legal question concerning hidden throughout the appropriations
the constitutionality of the CIA act of figures for the entire federal government.
1949 which established a secret procedure
America's "invisible government,'! the for financing the agency-
Central Intelligence (CIA), owes its exist-
ence to a piece of legislation that is uncon- A VIRTUALLY IGNORI/D CLAUSE state and nation-by nation breakdown of
CIA expenditures, as well as separating
This is the likely import of'recent ac-
tions in Federal Courts in Washington and
Philadelphia.
Both court cases are based on a virtually the money into, categories by functions
ignored clause of the United Stites Con- CIA Director Richard Ilelns art if
stitution sl5ecifically requiring that "a Ri
of the
Secretar
on
rd
h
y
,
s
c
a
regular Statement and Account of the of health
Education and Wclfit"r'
,
Receipt and Expenditures of all public brought into the local suit.
In a suit filed August 10; in the?U.S. time." The CIA act of 1949 just as expli-
.District Court for the District of Colum- citly states "...Sums made available to
bia, thre eA ysr n~r,~oto~l aodr *ail,n he iio ~ 9'-R - 1 di b~160001-6
secrecy of e A s fun I regard to the provisions o overnment
 ? HE,.,VOICE
Approved For F~elf@aT~@I~1001/07Jkj:~P 1Fg1601 R0001
I
i7 7 E?'d ~ ? F'9
P' er
L_N INS j?'~ ,
"`r.fpp
r'
A virtual news blackout has
15een declared by the nation's
press conccr,ning the major legal
challenges that have been
l.'aunche.d against the Central In-
Telligence Agency.
The August 10 filing of a
suit in Washington against CIA
_.. 1 tit . . ) i ii2
`, r 1
L
i
greatest newspaper "of record",
the New York Times, ignored the
story, as did the Washington
Evening Star and most other
papers. The Washington Post
carried the story as a small.
item on page ten.
J C i Ed t
The Washington Post,.Thc
Evening Star, the news ser-
Ivices and-the local radio
stations have seen fit to
( J Director Richard Helms and other suppress one of'the major news
government officials was a stories of the?year--the legal
.matter of,court record and eas- challenges to the nerve cen-
ily accessible to the news ter of American imperialism,
media. In -addition, a news re-. the.Central Intelligence
lease containing essential facts Agency.
about, the story was hand deli- For this reason THE VOICE
vered'to the Washington Post, felt obligated to fill the,
the Evening Star, the Associated void by bringing out the
Press and United Press Inter- first "special edition" irI
national. its young life.
A week later, not one 'line
concerning it had appeared any-
where in the country.
It was. confirmed by THE VOICE
that editors were-well aware of
the story and its importance. The National Security'Act
A call to one of Washington's which created the CIA states
two dailies by a source access-. that it shall not have "police,
i.ble to THE VOICE produced this subpoena, law-enforcing powers
comment from a leading reporter: or internal security functions."
"You can call it' a 'press con- The CIA has been operating in
spiracy' if you like,. but we're violation of this law for at
b
d
e
not going to print it and I'm
sure no one else is either."
Earlier this 'year on July 20,.
an important decision in.the
U.S. Third Circuit Court of
Appeals guaranteed that the CIA'
would be brought to court on a
challenge that had been in pro-
cess,since 1968. America's
Yet iri 1964. in a court case
involving 'two Estonia3i emigres
the CIA presented to the court
a secret document authorizing
it to engage in certain domestic
activities.
This authorization was in the
form of an executive order which
seems to be in direct_viola-
tion of the, act creating the
CIA.
As.a matter of fact the do-
mestic operations of the CIA..' .
were so large by 1964 that it
set up a Domestic Operations
Division with headquarters at
1750 Pennsylvania Ave., about
a block and a half from the
White House.
Major breaks in CIA'secrecy
.in." 1966 and 1967 resulted in
disclosures that the CIA was
very heavily involved in financ-
ing all types of programs at
such major universities as
Michigan State and the Massa-
chusetts Institute of Tcchnol-.
ogy.
In addition, it was revealed.
that the CI-A'had subsidized '
many domestic organizations in-
cluding the major American
student organization, The Na-
tional Student Association. CIA
money also found its way into
at least twenty foundations,
as well as Radio Free Europe, a
large publishing house, and
various other organizations.
Have the CIA's domestic
operations ceased?,, A simple
inspection Of telephone books
discloses that today the CIA has
offices. in, at least twenty
American cities.
001=6 COntinuod,
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-
pro
ars an
least fifteen y
ably longer.
,In-ear.ly 1966 Richard
Helms,. the Director of the CIA',
in testi:mony to the Senate
Foreign Relations Committee
stated flatly that the-CIA does
not operate in the United
'
States.
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BOSTON; MASS.
HERALD TRAVELER &
RECORD-AMERICAN
D & S'- C:CRC. N-A
George Minot
d
-.~. < < sem.,
to find out What is going on Jong after everybody ese.
b W31 Y economists and othcrs who watch how the pc o-
ple' in Washington spend money don't advocate that a
good way to save two or three hillinn a dear would be
to abolish the Central Jntellirence Agency (CF 1) th?'
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PHILADFLPHIA, PA.
INQUIRER
M - 463,503
S - 867,810
l11JL221977
Ruling Asked
On Secrecy in
` PA Sending
'.Fie 3rd U. S. Circuit Court
of Appeals here has ordered
that a three-judge court be set
.up to decide the constitution-
ality of a law that exempts
.the Central Intelligence
Agency from revealing its ex-
penditures.
In a 4-3 decision, the ap-
peals court told the U.S. Dis-
trict Court in Erie to empanel
the special court.
The ruling Thursday was
made on a request filed by
William B. Richardson, 52, of
Greensburg, Westmoreland
Coufity. Ile charged the gov-
ernment's failure to disclose
'CIA expenditures violates the
Constitutional requirement for
an accounting of all govern-
ment financial dealings.
Richardson appealed to the
circuit court after a district
court judge in Erie rejected
his plea.
In the appeals court deci-
sion written by Judge Max
Rosen, the court said a citizen
i the right to know how his
tax money is being spent.
The CIA Act of 1949 ex-
empts the agency from "the
.provisions of law and regula-
? tions relating to the expendi-
>tures of government funds."
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 VfAsaiiiiG'iQ N PQ.ST
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Court to Act
On Secret .
CIA Costs
PHILADELPHIA, July 21
I(AP)-The Third U.S. Circuit
Court of Appeals has ordered
a three-judge court set up to
decide the constitutionality of
a law exempting the Central
Intelligence Agency from' re-
vealing its expenditures.
In a 4-to-3 decision, the ap-
peals court told the U.S. Dis-
trict Court in Erie, Pa., to em-
panel the special court.
The' ruling Thursday was
made on a request filed by
William B. Richardson, 52, of
Greensburg. He charged the
government's failure to dis-
. close CIA expenditures, vio-
lates the constitutional require-
ment for an accounting of all
government financial dealings.
Richardson appealed to the
Circuit Court after a District
Court judge in Erie rejected
his plea.
In the afipeals court deci-
sion written by Judge Max
Rosen, the court said a citizen'
has the right to know how his..
tax money is being spent. I
The CIA Act. of 1949 ex-
.-empts the agency from "the
provisions of law and regula-
tions relating to the expendi-
tures of government funds."
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 Approved For Release 2001/07120 G LR[Tfa O-01601 R0001
4.i
T
1y Cotrrieney R. Sholdon
Staff correspondent of
The Christian Science Monitor
Vi'n si:lm g?e:s
The grand Canton abyss between Presi-
dent Nixon's style of comraunteati :g with the
? A merican public and that prcraised by Sen.
George McGovern widens visibly.
How much a>nd how soon should the man on
the street know of the inner workings of the
White House?
The differences on pubic information pol-
icy are, in part, the normal ores between an
Incumbent president and a probing, aggres-
sive opponent.
But the Nixon record on contacts with the
public has b: en sidely debated here for
several years and Mr. McGovern would like
to make it into a central is sue -- one that
flavors the entire campai,,rn. McGovern aides
confirm tliis.
Senator McGovern charges "secrecy and
deception in hi ;h places" and says "the doors
of government will be opened" in a 21,1cGov-
err, administrai:ion.
` x eeutive 1,31'ivi ego
Under a McGovern administration would
be a review and modification of the doctrine
of executive rn?ivilege which 1?,sr. Nixon i~zid
previous n,r.?:rdnist: a fogs have invoked to
prevent White Horse stnfff members from
testifying before cc : : ezsional committees.
Only when testimony was asked on "high-
est national cec.il?ity" matters would it be
refused, 11r. McGovern says. liven it roan in
the position of Henry A. Kisshig,ar, the
President's advi er on .national security
matters, would be expected to testify on come
questions.
There would not be, it is pledged, attempts
of prior restraint of the n.ow s_ap ors as there
was by the Nixon a?dn.inistr ati.on in the case
of the Pentagon papters publication.
Nixon-administration officials have heard
what-Mr. McGovern has had to say about
White House secrecy vyit`i studied equa-
nimity. They regard much of it as impractic-
al and likely to be reversed in the unlikeli-?
hood he takes over the White House.
Presidential style
They are comfortable with Mr. Nixon's
style of conlerrin, lengthily with his advisers
and then making periodic surprise an-
nounccments on television, or at forums
where no questions are permitted. They
i O\ "Z{ T C
emphuelse how widely he reads,.The constant
flow of visitors to the White House, -nd Mr.
Nixon's world travels.
Recent decisions by the U.S. Supreme
Court - since :t''.'cr. Nixon has named four
cor!:;ervatives to the bench - are dcr..gerous
restriet'_ons cn government news sources and
on individual rights, according to the Demo-
crats.
Mr. McGovern is atterr.rt''.ng to give his
proposals for an "ope 1 door" at the Oahe
House credtbrli.ty by pe:r'n:ittlrg freewheel-
ing information c ts'pea'i ir. ' by his campaign
aides. ?Newvs_rcn were aiiowd into a pre-
cair>mpalgn ,?_cGovern' :,tr,.tery s( salon at
1 Hanoi Beach.
Mr. McGovern endured the wrri i t of the
far-left fringe of the antlwar groups in a
Miami Beach hotel lobby to C, on,,.'r rate hills
willingness toanswer questions from all quay'
tors.
ope"i-Cloor i` ^i n
He said earlier 110 would have invited those
who demonstrated for place in Vial em
during the Nixon administration into the
white House rather than ringing t1he white
House wlt7 a bumper to bumper blockade of
busses.
Mr. McGovern began to un f the (d:~ Still rhili.ry intelligence _ 2e 9 ft:'!)!c.iCS ago ~';ltd.
and official channels, with newspapers and mog :clues group like the SOS, H2 Black I'antti+'rs, ilf;"t with civil
pro';Idi"g most of the rer:^.3.ir!il;;i'.' imrost in' genora 1, in thx CIA begaii to vioilJor
i'117G T IN'G RESTLESSLY, the aspiring wr'te S llll _'
and partially amended his de-r omanticize;t -h,:re3_ti `
"Maybe 10 per cent of all the people engaged L.
~f Apionnge :'fork are hack alley Spias. But of these 19 out
29 are faking it under the cover of diplomacy. They try
to acquire local agents in the country where they 're
working.'.' ' . . .
To the diSilieisionment of spy-novel afiiclonados every-
where, however, Marchetti emphasized that there are
very, very few agents living overseas without cove!', and
that their contribution is of marginal value. 'It's kind of
like fishing --- you throw them out and sooner Cr lifter
you get a Stri73." .
No clue to the s .taker's o>vn unease emerged as he
discussed . hits idea for the Look, "I '.','as just sitting around
talking :,ith another agent. We were saying; that things in
the agency were so se!'e:ied up that it wouldn't he
surprising to find that .a '/
i?ussian v;a: ru!Taiii-r ~ ? ;'d. is
Want it as a joke, of course, bitt tha "s :there ' the book
ba an.
T
Wfi'17 71."'u rut ?;i ; F~T_T? `? 01 "
~ a 1 i.e Rope Dancez,
Marchetti tern mated a long, distinguished career with the
CIA. He was assistant to the director of the entire agency
when he resigned, and ' prospects for the future were
good. So vihy did he quit?
"I'd lost a great deal of faith in the agency find its
policies, If I couldn't believe in it, I couldn't serve it," he
said sounding more like a Campus politician . than a
hardbitten "spy. In truth, Marchetti left for a variety of
reasons, Some of them intriguing for the insights they
each other viitt? triggers on mortars, cannons, and rockets.
;Ve don't need it," he said, looping his tie.
,l}g'
Eli ITIS V~.~ "'-' it' ' ,,.
, the same kind of thinking that led to
the arms btcildup is reflected in the structure cf the
rncdernClA"It's too big, td;o costly, with too much military
influence." Marchetti says the quality of the agency's
roduct -?-? good data, -- has been diluted accordingly.
P -
wltat they Should do -,bola it.
Dt'a.i'ing oil y'et another cigarette, Marchetti explained
that such intern al dlsor der s are properly the cc,
the FBI or the army, not the CIA, z ev'erth
vociferous minority of-the age-' the '
~~:
ti, calls them -- began to say, "1tye're the should do the work."
THIS TIA JOtNALE could lead to trouble at kern
as it already has in numerous small countries p:
pockmarked by CIA interferece. ;,,!arc ;etti Gish:
trendline, and resigned,'
Gathering papers together to go meet his put
local. representative, he mentioned that was
that - he no longer is associated with an 'wait instri
in the conduct ei the Vietnam wai'. feels cone
free as he talks with his 17-year-old son, almost of
'fight the war, and a hearty disbe'ie';er in it.
His -clean conscience has beer, temper;-;1 by
budgetary regrets, ha,, ever. ::I had to tell my son
he ivantec!. to go on to college, he'd r . to r :, .
way I did, by working his way ti' ou'g'h." i`,?arehet-
regrets khat he . has to be careful in acquiescing
wife's requests for new living room furniture. -
The proble'rn is that in le yin's the CIA, and a hi;
within t, ? INIar chetti was e.{ercirina an uncommon its
at least uncommon in 'Ii-y'?nr-olds with a wif?
three children. He OR a v13,CC0-a-yea job, wit
promise of Substantially more soon, For we -v-ago:
knovins of a writer's life.
Marchetti is morally at peace with himself, i hi
White ,7tZ7 White hariAl ol~ Q1T?f2~Fea~ta?;Q@1/R R P 6-0116 1.R 110Q460t101R6)`'.'le contract. And
government is spending ' far in excess of what it should for Rat??? lIe-is a spy ',vithout his next assigtrnhent.
.Approved For Release 20-01?O/W dialikDP80-01601 R00010016
defense. He labels the AG billion pouted into defense
each. Year. an te S.35- billion fnr n ;. nc Yi~nnr of i~ 9,n rnnn4lrnri
 Approved For Release 2001/07/27 : CIA-RDP80-01601R000100
ST. LOUIS, MO-
POST-DISPATCH
326,376
g - 541, 86E
A further indication of the tendency of the
Nixon Administration to' keep vital information
-from Congress is suggested by the recent White
House announcement of a reorganization of the
government's intelligence ojierations. The re-
Organization p?an would, among other things,
v give Richard 1-lelms, director of the Central In-
telligence Agency, the authority to co-ordinate
his own budget with those of intelligence
agencies in the State and Defense departments.
But more significantly, from the standpoint of
Congress, it would vest responsibility for mak-
ing the so-called "net assessment" of in-
telligence data in a unit working under Dr.
Henry K i s s i n g e r as head of the National
Security Council staff. -
Senators Symington and Fulbright are prop-
erly conce. ned that this overhaul may mean
that -intelligence-operations will be even further
beyond the reach of Congress than they already
are. Despite repeated attempts in the Senate
to enact bills requiring the CIA to make reports
V
to Senate and Ilouve Corn),committees
and to rom nel the CIA. at least to reveal its
gross bun et. Cenol.'uss has so far not acted.
With Dr. Kissinger having final r~esi onsibil-
Senator Fuibright for good reason sees "a
further erosion of congressional control over
the intelligence community." On the basis of a
claim of executive privilege, Dr. Kissinger has
avoided testifying before congressional com-
mittees.
Whip conceding that the changes could be
constructive, Senator Symington wants to hold
hearings on the reorganization in order to ask
questions about what it means as to the assign-
ment given by Congress to the CIA. Obviously,
Congress should be kept informed -about in-
telligence activities, not only because Congress
is expected to appropriate money for them but
also because, in legislating in response to
presidential requests, the legislators should
have access to the same data on which the
executive is relying for making its judgments.
Recent disparate analyses by the CIA and
the Defense Department as to the nature and
strength of Soviet capabilities lead to the
suspicion that the White House would like to
produce an intelligence estimate over which
it has firmer control. and which Congress would
have to accept. Such a development would
harmer Congress in vial irg.hidepenclent legis-
lative judgments and in serving as a check upon
the excessive power of the executive.
ity for nuking the intelligence assessment on
which the President pr e:surnably Will act,
Approved For Release 2001/07/27 : CIA-RIDP80-01601 R000100160001-6
 pEJILADVLPH4IgprgM 1 For,Release 2001/07/27: CIA-RD?j6, 4' 1R0001'00
BULLETIN
634,371
1 8 -- 7 01, 7 43
cS,!l7TrA H 111t`~tfi9
I~9 II. BIN'l,EN ing, Richardson's case is be-; While ,"no one wants to de
PETIat ge;
`Iieved to be the first challen
ehe Central Intelligence
t
s
y
":;pf The Bcalcan-staff in the courts of Washington's; Agency," argued Richardson,
,
secret spending by Anlcri policy of secrecy. it was wrong for the govern
cg's chief spy network, the Richardson, who has a law, meat to engage in ' subter-
Central -Intelligence Agency, degree from the University of fuge" through use - of a
to undergoing a quiet court Tennessee, is an investigator spurious document."
test bete.. for the Westmoreland County . In its brief to the court of
The complainant is a west public Defenders' office. Ile,, a p p c a I s , the government
ern Pennsylvania taxpayer ,was, formerly an insurance noted that Congress had 'limit-
Ywho filed suit after vainly try- claims examiner. ed disclosure of CIA financing
ing' to get information about In May 1967, he wrote the "in the interests of national
Government Printing Office securit national defense and
the CIA through regular than asking fo doc unents pub- foreign , olic It said Rich-
1-Iis: case is now before fished in Compliance with the p y.~
h
. __ F,. . ardson's quarrel was with
t
e o
f
his
-
-?'
--- - - -
The taxpayer, l~'ittiant n. - -
Richardson, 52, of Greens- account of thereceipts and issue narrowed down to a re
all
uest that the court direct the
he
d G
burg, Westmoreland County f m ojc\, shall s
treasury secretary to report'
charges that the overnment'- front'time to time." the aggregate sum trans-
failure to disclose CIA spend- The reports he subsequently.
mq violates the ferred to the CIA and the
ing a received carried no listing for
, constitutional total amount expended by
accou n for a regular the CIA. When Richardson in- that agency."
,.accounti ting of of all government quired about this omission, he. There need not be dis-
receipts and expenditures. was informed' th
CIA at the Trea
g is concealed closure of information about
sspendindepartments: The sury Department had "no the CIA's organization, per-
in' o
other information available sonnet or activities, he said.
government has never said -
"So viewed," said Spritzer, {
how much money the agency with respect to the agency =there is no basis for the gov
gets or how the money is mentioned" in your latter."
11 spent. The agent y is thought Richardson ernment's apprehension that
Rwrote back that 'an order of the court would
I to employ about 15,000 civil- to comply with the Con- require revelation of `mate-
ions and to spend about $500 s t i t lit i o n the governments rials of decision that probably
`million a year. should terminate immediately '-could not be made public.' " .
Richardson is asking that a Its "present methods of re
.three-judge federal court be porting." Case Cost $2,000
convened to. hear his case. 1)3t ails Not Available Richardson ? in a telephone
This plea urt s udge rejected by a S.S. Sokol, commissioner of 4 interview, said the ,court case
district court judge in Erie accounts for the secretary of has already cost him close to.
last year. He said the issues $2,000.
-I've been bucking the es-
raised were political in nature the treasury subsequently in-.
andi? hence not capable of formed Richardson: "All the' tably bet for a Ion, time,"
being decided by a court, receipts and expenditures of he said. "I'm a believer in
Richardson then appealed to the government are published civil rights and adherence to the circuit court. He is not a in the secretary's reports; the Constitution."
iwayer and has no lawyer however, by statute, the de- A former government otter-
tails of receipts and ex t
representing hint. foHowever,
und his nditures for the above agen
the circuit court found his pe 2 ney in the case, Assistant At.
case interesting enou;li. to ap- Cy (CIAO are not available." torney General Willi, D.
point a University of Pennsyl The statute Sokol referred , Ruckelshaus, is now adnlinD
vania law professor to file a to was the CIA Act of 1949 ex- ; trator of the U.S. Environ-
-?Itin'g the aaenev from "the , rno,,t.,l nrr,tprt in., Agnnev
--
reg
an
ov 1.01 1.
::7
o- ,~_~___. -..
'provisions of lc, ~v
Professor Files Brief tlations relating to the ex-
In his brief filed last month, ! p,e n d i t -u r e of . government .
the professor, Ralph S. Sprit- funds."
zer joined Richardson in ask- Richardson then filed suit
, log the circuit court judges to on grounds that the govern-
direct, the district court to; ment's reports were ' fraudu ?
cofivene the court of three lent." He asked that Sokol
judges. The circuit court has and Treasury Secretary David ,
heard oral agrument- in the,. M. Kennedy be enjoined from -
case. Its decision is expected' publishing . the annual state- ,
before the end of this year. ?merit of receipts, expenditures
Although individual cqn- and balances of the U.S. Gov-
gr-essmen have sought to ernment until it,complies with l
force 'disclosure of CIA spend- the constitutional mandate.'
Approved For Release 2001/07/27 CIA-RDP80-01601 R00b1001600'01-6
 Approved For Release 2001ir'iYPY c 1XjfiDP80-01601 R00. 100160001-6
V (~~~~ ,~,+ !l a-o~,
Tribune-Review Staff -Writer
Greensburg man has won a major
battle in his attempt to force the federal
government to divulge the s mount Of tax
money spent annually by. the super-secret
.Central Intelligence Agency (CIA).
Whether William B. Richardson wins
the war, however, still rests finally with
the U.S. District Court, the Third Cii?cuic
Court of Appeals and, perhaps, the U.S.
Supreme. Court. ,
Richardson sued the f e d e r a l
government, Secretary of the Treasury
John Connally and Commissioner of
Accounts S. S. Sokol for violating the U.S.
Constitution by publishing what he calls a
fabricated report covering all govern-
mental spending. It's a fabrication,
Richardson says, because it includes
CIA money "hidden" throughout account-
ings for most government service and
agencies, making all accounts fabrica-
tions.
Major Milestone -
Richardson's case, although rejected
once by, the federal. district court for
`technical deficiencies, reached a major
milestone in the last few days when an
independent third party appointed by the
district court submitted a b r i e f
upporling Ricardson's position and
recommended that a three-judge panel be
convened to hear the case.
'While the brief of the "amicus curiae"
(friend of the court) does ii o t
automatically suggest a decision one way
or another by the federal court, it lends
considerable and perhaps surprising
support to Richardson's whole argument.
The "amicus curiae" is Atty. Ralph S.
Spritzer of Philadelphia, a professor of
law at the University of Pennsylvania
and, ironically, a former member of the
U.S. Solicitor General's office which is
presently defending the government in
Richardson's suit.
Richardson said he was both astonished
and pleased that Spritzer's brief supports
his position. Iie's also a lit t I e
embarrassed because he o p p o s e d
Spritzer's appointment originally as
"amicus curiae" on the grounds that
Spritzer previously worked for the
federal government and could hardly be
regarded as a disinterested party.
The U. S. Solicitor General's office in
C., doesn't view. said the 'question Richardson is raising is
Washington, D.
Sprifzer's intervention into the case
lightly either. A spokesman for that
office said A0j9rt dtP6r 1t 5'@
reputation carries considerable weight
a?/r Tt #`i - f
and, no doubt, the government will be
submitting a supplemental - brief to
answer Spritzer's argument.
Kef`F-uses Comment
The CIA itself (which curiously
answers its telephone by repeating the
number dialed, rather than -Good
morning, this is the' CIA') refused all
comment on the case, except to say that
it knows of the existence of the case and
that "We are restrained by,.the Congress
and the President from commenting or
speculating on matters like these." What
was sought was some indication of the
impact of Richardson's court petitions if
they were, in fact, granted by the federal
courts.
Among other things, the granting of
Richardson's potitioi, would +w ipe out a
Congressional disclaimer of secrecy for
the CIA insofar as total public spending
goes and force tho U. S. Treasury to list
a total amount of tax money spent on
behalf of CI:`. o r ra".io s, as well as make
accurate all.otlter accountings which now
"hid;" the CIA ainaunts.
Any such ruling would represent the
first crack in the bubble of absolute
secrecy that has surrounded the CIA
since Its inception.
Spritzer, in his brief to the court,
supporting Richardson, said in part:
"The government argues that all
monies are being accounted for since. all
receipts and expenditure- are shown
under some descriptive head (in the U. S.
Treasury report.)
"It is - hardly an accounting in any
meaningful sense, however, ? if the
expenditures of the CIA are shown as
welfare p a; in e it t s or aid to
underdeveloped countries -- any more.
than it would be a satisfactory account-
ing if a taxpayer were to file a tax re-
turn showing items of income as capital
gain and expenditures for personal
pleasure as contributions to charity.
"Only an - accurate and identifiable
head of appropriation--one hearing the
name and thus disclosing at a minimum
the general purpose for which funds are
being employed--can satisfy t It e
Constitutional obligation to account for
the `Receipts and Expenditures of all
public money .. l
Before reaching that c o I" c 1 u s i'o n
Spritzer previously in his 32-page brief
not political, that he has legal .jurisdic-
stantial" Constitutional question which
is worthy of review by a three-judge
panel.
`Simple' Issue /Spritzer, in upholding Richardson's
legal standing to question the lack of
accounting as a violation of the
Constitution, said, in substance, that
Richardson is not challenging a
Presidential discretion, or governmental
policy in terms of war or peace. Rather;
he said, he is simply saying that the
Constitution mandates an accounting,
regardless of policy, war or peace. He
put it this way while arguing against
some interpretation of Flast versus
Cohen, a-1933 case in which It was held
that taxpayers had standing in the
federal courts only when challenging
expenditures made for "the general
welfare." Spritzer said:
"Surely, it could not be contended that
the tens of billions of dollars spent for
defense purposes, are `incidental' and
that the taxpayer therefore has no
interest that they be spent in accordance
with the demands of the Constitution.
Whether a taxpayer has status to litigate
with the President the limits of the'
latter's power as Commander-in-Chief to
conduct military operations without a
Congressional declaration of war is
another question."
For Richardson, a staff investigator for
the Westmoreland County ? P u b I I c
Defender's Office, the court test on the
CIA funding has been a long haul,
involving hundreds of hours of ,e(1i0nis
research. Suffice to say, he's happy at
this point to have Spritzer at his tilde as
the case moves tip the long arm of the
federal court system.
Lion as a taxpayer and a citizen of the
20
gre '1O~r nipb1)O0100160001-6
sneak and that the issue raises a "sub-
 Approved For Release 2001/07/27 YCRdkU-01?6'NThA0016
Mr. Iiellns's d?.uti s here till he
assumed by his c'.eputy, LVa-,,` l
11
'file Penta gon sl;ends $3-Ilit-
lion. yearly m1 intelligence if all;
its activities are counted, said
onee Sou t ce.
-`fins Is SO per cent of cv-
t;rything tilt; United States
ponds for ilitelligelice," he
sai. ''iie I'residentJlia.stl't giv
en Reins control of the D.O D.
IlAC11geince bltdget, but at least
lit call now see it and advise
oil it before it's presented as a
tti.it
?_.--`.- -------- j 1`IiitI03Ya Se'C:t'.i i .y Council wItll
the
i
f t
i
n
i
a
m o
a
n it de iIy
Nixon
IIJ1XOI1 O Cler f'litl 8.l hr .b r "pI'oduc+:" gan]ercd by the 31..-1
lil`i ~~lt G11Cc (.??' 13Oi if'i tioll'S' vast ov s as in[elli- e e
net~rorh closer to the li.eJ.s of
the "Collsunlers". h1'esicieilt
z Nixon and his top t.,fff.
1iLSmil G 1 hi 1.1 .ley `c',i ct. Oyu it fit'; 1:]Q
told. i SO ,t.Ii '.3 ?_.l1.~~.iIC;~. y~1 i e, e C , I 'c? ?'.CU.Ei : ,
,~ ~ .: cllJ1,~., ~::i.ll at !'(?l23c?'
in 1'ri'talil and. ebrond and Clie v"hicl1 in Close cmu(ii'iltiCien.1 the U.S. C0nLI'c:'1
Clltelilgeiicc A5 OBcy?
At one Hine, in fact, the CIA `5%110 .tile ";onlCOIV " was 11 S Pil',iC1i 1S IiP Say'it tli head of tll?
depend d upon British Intelii ;ei' co 11ver be :71 C1C tei']lliire(l, but it r'1 }I 1' ports In the t t.torney r en
for inost of its work coun'cted CC:IIJ Only have ben Sccrceo11c in oral, but file 1' LI is not part of the
math fC'rnier British Col'"nies lire top cirClc: of BOW ill;"1 Intc'_ii- NpUce I)epai'hreat or even of the
C;h1ch had become it e i?II(iCnt, i `=i?Ce, which Still Way is a pron- U.S. government, YT_ . h L;Be3 Loh
such its Iraq, Jordan and Egypt in Snt vc of CSt; i."Gcc I'i ,'ti I Twks wks 4000"W''-' '. , i cyNts.
the huddle L ist, and Africa-n.. co.!n- vyho tend to be fa n0cal anti- it 1. u, ti Sc_e et herv-
tries like Z r r~ Communists as 'roil. From It"7_4 fee, is "I3ritaill's "spy" agency Zambia and
"Psychological -warfare" and down to the present, there have engaged in activities outside Brit-
propaganda, . which to i;rgish been a steady stream of such aril itself.. 111m, ;,Cad cf ALL 6 is I-(,-
brought ton high- peak of efficien- fakes and forgeries from British aril ;'?e to the-Foi?eigi) Secretary
J cy under such-c: ports as Richard ntteili once, nearly all of tl_em (presently, Sir Alec Dou has
CrossITlaIi, `head of the Psychoio- st engtncnu g the hand of the far Home), the equivalent of the U.S. ?
gical Warfare Executive (P', E) right in BriUsh politics. Secretary of State. (`i'i1CI'e is a'
in World War lI and later chief This sitliaticn has never b?::cn S tt,t3 Dept. intelli of:ce service,
editor of the New Statesinnmi inag- cleat'-i:(I 1-ccaus3 the; structure the Bureau of Intelligence and 1l e-
azine, has, long been recognized ?,11%1 mC`tloeirg Of I tis"h intelli- search, flit M.I. 6 is a Conlina-
asa British specialty. ger:cefia is Ire ;fed as a sacred pro- tion of this with the fin-clions Of
So it is no acci(lent that the sserve, not to be mentioned in We CIA)' M.I: G functions under
Li'1t1S11 and, )r'.itisll Organizations public. 'i ii?~ a,iel'at c 13i itisn su'::- the Salle laird of Secrecy ns P,i.I. J.
in the "Cold Ir'1lae' period are )Oct Ad not learn any thing about Co-ordination of intelligence
generally spotlighted as being be ALL 5, tite Et itish c iuivalent of vior"-, ludi g the r:'orl: of the
hind a whole serfe of faked ''So- the herd until a train of scandals comparatively o; en ~:ilitary In-
viet mci11Olrs," niystei'iots -11u_ brought some facts about It Out teillgenc:e Service,'isldons by the
morn about the USSR and Soviet into the o en in the lf?GOs. Joint Intelligence Committee at
personalities, alarmist reports hl.l. 5, technically, the British the British Foreign Office. It may
about "menacing Soviet troop Security Service, is rcup asible seers e :trl;ordinary that the' For-
movernents," and even faked "So- for all domestic security and eign Office, Britain's "State Do-
viet lioohle.ts" such as one issued COi"-ter OS: 1o la;C'.; its Director- p lrtrncnt," should be the chief
recently containing violent at- Gee?erel reports to the flame See- intelligence center in Britain's
tucks .on Islam distnibut d !n rctery (who in other countries government. But it is not so sun
Ceylon, Pakistan and Egypt. vrould he called the Interior rain- p,'ising when the extent of To
The most notorious fakery can aster'). The cut ious thing about fo!'iI r British Empire is con-
ned on by British intelhgencenvas ELI. 5 Is that in re Silty it is re- Siderod; and It should he I'on'] in-
the "Zirloviev letter" of 1924, sllonsii)le to no one-, is not part of bored that British colonies were
which cost the Labor Party that the British go'iern;rtent at all, and assigned to M.I. 5, the "FBI"
year's elections, brought the T w is not mentioned in any British service, because they ?viere con-
ies back to power; and disru'pfed law or regulation. Srdercd ''domestic'' and not ''for-
attclnpts to ratify the n v ly- :.Thc iroplica`ions of this set-up eiga."
negotiated Anglo-Soviet treaty. are astounding: there can be no The total amount of funds avail-
I'lIe letter' was supposed to have Parliammhary ''watchdog" com- able to Sir Alec and his collse ales
come from Grigory Zinoviev, then' i11ittc0 over 1:1.1. 5, because TALI. 5 in intelligence is not large; in-
head of the Corniilunist Interne- does not legally exist; it is ---- in formed estimates Place it at
tional,'arid urged a campaign of every sense of the tw oud --- beyond atmind $50 million a year, corn-
terrorisin and sabotage in Britain the law. As I,grd Denning pit it in pared to $4 billioa for the CIA,
working with the ''frhE ndly'' Labor iris official 1M3 Feport an the Pro- But British intelligence chiefs,
Party. Later it yeas shown that tt hullo scandal: '.' fhe Security fiery- being outside the law, can spend
letter was a forgery, written by e ice (II.I. 5) in this ceuni.ry is not it on allythind.th y phase, includ-
White Russian emigre in I3erlhi, established by Stltute plop is it ing forged evidence of "cs-
and that foul' Separate divisions Of rccogrimzcd by Common La -I. piol'age," ' - c
British i ltelligericc had actually Even the Official Secrets Acts do
identified it as a fpi-gel'y. not ack nol','IC. (ige its e::iStence."
gcnce passed it'( i~o r 6H eLeo ?et 1 Q I~? j ~ 1 AyR 80-016018000100160001-6
genuine, 'aiid Mn damage was 5 is not part of the Home Office;
done. -
 STATINTL
l3ALT 11,1011 E Ap
SUN
7,?1 .- 164,62
I F- 1 #3 c3 , 8 71
ra
AP. f( i ~t
Floating. Around i
Other foreign policy Ilroposals l
are floating around Congress
and could eventually find a!
We AV Me foreigo afcl bill.
They include legislation to, re?
strict the President's war-nick-
big powers
to require publica
,
toile reason that the armed Seiw-
({ I r
1 -0`1 strong antr liar national policy, Lion of'the ~fal CIA bud:;et, to~
s (z j ices Committees wiclcl settle in-
/ it 1 . inchuling a nine month ceadlinc ; ban the CIA from engaging filf
;f}ucnce' with the I esf l on is
for total U.S. wildmWal from, m} f fi
miler ily operations to
v
let' must appro
e it
s Pjs II " i f t ,i Indochina. ~budf~e( anuuall CIA intelligence data available1
a- . I k i J i,< They held tip tnc draft t !Il Ile coillm e is wn 1~1- " 4to Congress and to place a cef}-,
Send 101`s My To Use Dili' Inlzlly lost the fight in file face inautornalic funds cutoff if the directly related to foreign aid,
r , of fni:cnsive pressure put on by enecutivc branch refuses Nat Senate clots not usually balk';
For
Policy /',lIil1UIi)f,I (5 the adnlinisti cti in,