MEMORANDUM FOR: MR. WALTER N. ELDER FROM JOHN A. BROSS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000100110013-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 15, 2016
• Document Release Date: October 22, 2002
• Sequence Number: 13
• Publication Date: October 18, 1962
• Content Type: MEMO

Approved For Relealk?AO QIPt P6fk( 1676R000"110013 Exccudve Rc-gislry
EXECUTIVE MEMORANDUM
OFFICE OF THE DIRECTOR
DEPUTY DIRECTOR (PLANS)
DEPUTY DIRECTOR (INTELLIGENCE)
DEPUTY DIRECTOR (RESEARCH)
DEPUTY DIRECTOR (SUPPORT)
COMPTROLLER
INSPECTOR GENERAL
GENERAL COUNSEL
ASSISTANT DIRECTOR
FOR NATIONAL ESTIMATES
Distribution:
Addressees
1 - ER via DCI, DDCI 1 - ExDir w/Compt. memo
w/, emf%~ contains information for the addressees. Ad-
res es may give this memorandum additional circulation within
their components as required. All copies should be destroyed not
filed, upon completion of circulation. A master file will be kept in
the Executive Director's Office and will be available upon request.
CIA INTERNAL USE ONLY
Approved For Release 2002/10/30 : CIA-RDP80BOl676R000100110013-7
 Approved For Releaw 2002/10/30 : CIA-RDP80B0l676R006"0110013-7
1. Bob Amory passed on the annexed memorandum from
the Director, Bureau of the Budget, concerning a Cabinet meeting
held on October 18th. The meeting was concerned with measures
to reduce the 1964 budget. From the memorandum, it would appear
that instructions w~ ibe issue cutting every Agency below the
plan fjure estabh.s a last summer. In the case of the Agency,
this means below or no NRO activities of the Agency.
So far, there has been no formal approach to the Agency on this
subject.
2. The fact that the DCI was not invited to this C 'net
meeting was apparently an oversight for which the Director, Bureau
othe Budget is most apo ogetic.
STAT
JOHN A. BROSS
Comptroller
Approved For Release 2002/10/30 : CIA-RDP80B0l676R000100110013-7
 l to ,&A-",
UNITEAI 1rRT I gjgq 2/10/30: CIA-RDP80B0' PAqO *p~4Fresident,, -{^-p-tx
Memorandum
TO Livis'ion Chiefs
FROM : The Director(Signod) D. E. B?
SUBJECT. Cabinet Meeting on 1964 Budget
on 4-YI if
So far as we can tell, the Cabinet meeting this morning accomplisned the
purpose we intended--namely, to inform the Cabinet officers and agency
heads of the seriousness with which the President regards the budget
instructions he has given us for this fall's review period. The follow-
ing points were stressed.
That the President understands that his instructions require cuts
in programs to which the Administration has been committed and legislative
recommendations it has previously put forward.
That the President's instructions will esquire nutting, eve r eL,enc, ,
below the manning figures established_J,ast_s ua=r. (The illustrations
used were that the Agriculture budget might need to be cut $100 - $200
million below the Budget Bureau's planning figure, and the HEW budget might
need to be cut $200 - $400 million below the Budget Bureau's planning figure).
That we do not propose to lay down arbitrary constraints such as a
"no new starts" policy. Instead, we believe the objective of both the
Bureau and the agencies should be to apply sensible priorities in reducing
the budget figures. It was made plain that there would obviously be fewer
new starts, but some new starts might have high enough priority to be
retained in the.lower budget totals.
That the Bureau and the agencies will have to consider 1963 actions
which-might have a 1964 effect. (Illustrations used were the Food Stamp
Program and--in private conversation with Celebrezze--the NIH Program).
. That Cabinet officers and agency heads should beware of making
specific commitments to figures regarding legislation, programs, or projects,
in making public statements during the fall.
. That legislative proposals s ,ould all be reviewed and reconsidered.
(Illustrations used were legislation relating to recreational]snd purchases,
to urban mass transit, and to aid to education).
Finally and this was stressed by both the President , a?, y_ me,,_ that
particularly hard a increases n tie number of employees.
ura-filt
we sho
eco z ng a personae coats mi-gTii-iibt 3oom`large in d61rer_erms, the
degree to which the budget includes increases in numbers of employees will
plainly have a good deal to do with the extent to which is regarded by
Congressional and other observers as a tight budget.
Approved-For:Re1easq 2002/10/3Q.: CIA-RDP80B01676R006100110013-7'
 Approved F2elease 2002/10/30 : CIA-RDP80B01671;R000100110013-7
With respect to pr ocedure, we suggested that the budgets now being
proparea should be submitted to the Bureau without further dalay,
that we would review these budgets with the purpose of arriving at
suggestions for possible reductions. Simultaneously, we asked the
Cabinet officers and agency heads to consider, along with their
staffs, what reductions might be appropriate in the budgets they are
submitting.
No specific arrangement was suggested as to the time at which we would
be in touch with agency staffs and agency heads. I suggest that each
Division Chief establish his own time-table in this regard. Any of
you who now wish to talk with the top budget people in different agencies
should proceed to do so. Others of you may prefer to wait until you
have had a further chance to analyze budgets--or even until after the
Director's Review session.
Both Mr. Staats and I attended the Cabinet meeting and are available
for further clarification if any is desired.
Mr. Amory`''' Mr. Armstrong Mr. Staats
Mr. Broadbent Mr..Bowman Mr. Carey
Mr. Schwartz Mr. Hughes Mr. Hansen
I It-
Mro Veatch
Mr. Seidman
F Approved for Release?2062/10130,: CIA-RDP80?1..676R%0010QI1001~.=7,;
 Approved For Release 2002/10/30 : CIA-RDP80B01676R000100110013-7
I think this should be filed as the basic
papers f(Ar Exec Memorandum no. F,3
gave you another copy,
this one for that one.
suggest you substitute
Approved For Release 2002/10/30 : CIA-RDP80BOl676R000100110013-7
 Approved For Reese 2002/10/30: CIA-RDP80B01676R000100110013-7
2 U
1. Bob Amory passed on the annexed memorandum from
the Director, Bureau of the Budget, concerning a, Cabinet meeting
held on October 18th. The meeting was concerned with measures
to reduce the 1964 budget. From the memorandum, it would appear
that instructions will be issued cutting every Agency below the
planning figures established last summer. In the case of the Agency,
this means below for non-NRO activities of the Agency.
So far, there has been no formal approach to the Agency on this
subject.
2. The fact that the DCI was not invited to this Cabinet
meeting was apparently an oversight for which the Director, Bureau
of the Budget is most apologetic.
3. A copy of this has gone to the Director.
STAT
STAT
JOHN A. BROSS
Comptroller
Approved For Release 2002/10/30 : CIA-RDP80BOl676R000100110013-7
 -SENDER ILL CHECK CLASSIFIC "ON TOP AN
,pp ov >eK ,be ~MTMM, L
CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
1
I
DDCI
2
DCI~,tc,(, a
T~ $Y
^*
3
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
X
INFORMATION
SIGNATURE
Remarks :
FOLD HERE TO RETURN TO SENDER
FROM: NAME, ADDRESS AND PHONE NO.
FATE
Executive Director
23 Oct
UNCLASSIFIED CONFIDENTIAL
SECRET
FORM 10. 237 Use previous editions
U.S. GOVERNMENT PRINTING OFFICE: 1961 0-587282
Approved For Release 2002/10/30 : CIA-RDP80B01676R000100110013-7