STATEMENT BY THE PRESIDENT TO THE CABINET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000100130016-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: August 14, 2003
• Sequence Number: 16
• Publication Date: September 15, 1965
• Content Type: STATEMENT

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STATEMENT BY THE PRESIDENT
TO THE CABINET
Last Monday I announced the results of cost reduction actions taken in
the 18-month period from January 1964 through June 1965. The civilian
agencies effected savings of more than $1.1 billion. . Added to the results
achieved in the Department of Defense, this record shows what can be done
when a willing effort is made. Impressive as these results are, they are
only a beginning of what we. can and must achieve in the year ahead.
On March 25, I requested each agency to establish an organized program
for cost reduction, to prepare and submit formal cost reduction targets for
fiscal 1966, and to make progress reports to me.
I have now received these reports from each of you. By trimming back
or dropping marginal or out-of-date programs and by more efficient operating
procedures, the civilian agencies have established a further savings goal of
$1. 5 billion this fiscal year.
You have identified savings in the next 12 months substantially higher
than in the prior 18 months. This represents real progress.
But the fact that we are making progress doesn't mean that our efforts
can be eased.
I have said before, and I shall continue to repeat, that the willingness of
Congress and the American people to support the legislation we have requested
stems, in part, from their recognition and trust that this Administration will
carry out Federal programs at the minimum possible cost.
I have instructed the Budget Director, in reviewing your 1967 budget
requests with me, to present me with a list of possible savings through
-- greater efficiency in operation
--.elimination or reduction of obsolete programs , and
-- substitution of private for public credit
totaling at least $3 billion.
I want to outline for you some of the specific areas in which I believe you
ought to concentrate your attention:
1. A relentless review of marginal or lower priority programs.
The task forces on budgetary savings which you earlier established, at
my request, must continue their efforts during the preparation of your 1967
budget requests. With their help you must extend and enlarge upon the savings
already identified in your cost reduction reports.
In the longer run, the planning-programming-budgeting system which the
Budget Director outlined to you at the last Cabinet meeting provides a good basis
for a continuing search for lower priority programs. Where legislation is
required to drop or reduce these programs, we will seek such legislation. The
national interest must be our test of whether a program is continued.
Z. A renewed effort to hold down Federal employment.
In the next year there will be increasing upward pressure on Federal
employment. We must redouble our efforts to economize on personnel costs.
tin 6 200010 130 16 2 1965.
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Don't fill a single vacancy until you are sure it is absolutely necessary.
Agressively seek out labor-saving techniques -- and don't be hesitant in
introducing them. I personally watch each agency's employment figures,
and how well you are living within the ceilings we have established. I expect
you to give this matter your personal attention.
3. A renewed program to reduce travel costs.
At my request, the Budget Bureau issued, on August 23, a directive
suggesting 9 specific areas where travel costs might be reduced. I want
you to get out this directive and read it again. We must be sure that every
trip is necessary.
4. We can all make do with a little bit less if we try.
The moratorium on the purchase of file cabinets has hurt no one. We can
find other areas where we can postpone or reduce our purchases.
Shortly after assuming the Office of President, I announced that cost
reduction would be a major role of my Administration. I have reiterated
this objective several times; I expect to reiterate it in the future. It will
take persistent efforts by all of us to accomplish our objective of weeding
out the old programs that need to make way for new and more urgent ones --
to find ways of doing things cheaper and better. It must be the goal of every
Federal official and employee. The objective will be.accomplished as the
product of hundreds of actions. We have demonstrated that it can be done
and we must try much harder to do much more.
Approved For Release 2003/09/02 : CIA-RDP80B01676R000100130016-2
 Approved For Release 2003/09/02 : CIA-RDP80B01676R000100130016-2 _ _-'.;ya
CENTRAL INTELLIGENCE AGENCY
EXECUTIVE MEMORANDUM
OFFICE OF THE DIRECTOR
DATE
15 September1965
TO:
ROOM NO.
Director (Plans)
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uty Director (Intelligence)
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Director (Support)
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Ins
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General Counsel
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D/ 33 PAM 6E-08
O/ExDir:rr:15 Sept 65
Distribution:
1 - each adse
,.3'-- ER via Reading Board
1 - LKW (ExecMerno File)
This memorandum contains information for the addressees. Ad-
dressees 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.
Approved For Release 2003/09/02 : CIA-RDP80BO1676R00010
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