(UNTITLED) [AUTHORITIES FOR DISPOSAL OF PROPERTY]

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00261R000100050049-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 9, 2016
• Document Release Date: August 29, 2000
• Sequence Number: 49
• Content Type: MISC

*OGC Has Reviewed*
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1. The question has arisen as to authorities under which the
Agency disposes of property.
a. Dealing first with personal property which is ownedhe
directly by the Agency and which is nominally governed by
Federal Property and Administrative Services Act of 1949, as
amended, our procedures are generally in accordance with that
Act except as to property which cannot be practicably disposed
ical
of through GSA channels. In those cases where itnis notdprac vial
to dispose of property through GSA, the Agency, acc
oudnpractacescasode474(17),
the exemption given to it under
would dispose of property through commercial
below.
Property which is surplus to the needs of the holding
component is made available first to other components within
the Agency, then to GSA unless disposition to GSA would impact
the pertions
the security or functions
If the property cannot
the best commercial terms.
Property held by proprietaries is disposed of in accordance
proprietary's
with the m with practice
Administra-
the terms the
e l
locality ty and and in accordance
tive Plan.
The Manual for the Administration of Government
tiProperty in
the Possession of Agency Contractors (page
procedure spells out the procedures followed by the Supply
Division and the Central Supply Depot in disposing of surplus
property.
Based on Agency procedures described above, the property
disposed of through GSA is handled in accordance with existing
authority. Disposal through other methods normally would
considerations and would
involve special security o8 r other
be handled under Section
conclusion, while we feel that property is being legally
disposed of within existing authority, it could be helpful to
provide more specific legislative authority for Agency
property transactions.
b. On the subject of real property, 40 USC 304a gives the
Administrator of GSA the power to dispose of, assign, or reassign
property reported excess by any Federal agency.
25X1A As pertains to real property is osed of by the Agency,
the Director of Logistics under
is delegated the o power txpeheauthorityphas beenafurrtherrdelegated
property y except where such
to certain subordinates.
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Excess real property that is obtained by or through
Government services is reported to GSA according to and
in conformity with FPMR 101-47.202-2, and is subsequently
handled through GSA.
2. With regard to the fact that the language of Section 3
of the CIA Act does not permit the Agency to exercise the authority
in amendments to the Armed Services Procurement Act, we concur that
chap *c necessary. It is noted that our own internal regulation
already states in part ". . . it will be accomplished in
gene onformitY with the procedures and standards by which
Federal procurement is conducted by the GSA or the DoD as evidenced
by the 'Federal Procurement Regulation' and the Armed Services
Procurement Regulation as they now exist or may be amended."
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The present language in the National Security Act and Central Intelligence
Agency Act could stand substantial improvements. As it is inevitable that
changes will be made to these Acts, the Executive Branch must seek the
initiative in these areas. Some of the key issues for legislative address are:
A. Restrictions on Domestic Activities
A primary legislative objective,- shared with the' Congress, is
the classification of what are legitimate activities for CIA in the United
States. The only language in the present statute is in section
1.02 (d) (3) of the 1947 Act: "The Agency shall have no police, subpoena,
law enforcement powers, or internal security functions." This
section has proven unsatisfactorily vague. The new language should
specify' what powers and functions are precluded to the Agency, and
hopefully will specify authorized activities in the United States. Previous
bills drafted by the Agency and the proposed Executive Order, should
be the starting point.
B. Clarification of the Director' s ReHaonsibili to Protect
Intelligence Sources and Methods
Critics of the Agency are sure to demand changes in the Director's
responsibility, as this responsibility has been cited as the basis for
certain Agency actions of questionable propriety. Some spokesmen
have argued that this language should be 'dropped as such a
responsibility is inherent in foreign intelligence duties. The
Rockefeller Commission has cited the need to clarify the extent of
the Director's authority in the United States, and has proposed
language as a substitute to the present statement: in section 102 (d) (3)
of the Act. The Agency concurred in this recommendation. The
Agency should seek clarification of the Director's responsibility,
but must insure that any new language: (1) does not limit the
Director's responsibility to foreign intelligence sources and methods;
(2) does not unduly restrict the Director's alternatives vis-a-vis Agency
employees, applicants, former employees, and those directly associated
with the Agency in other ways; (3) does not restrict overseas activities;
(4) is retained by the Director rather than shifted to the Agency (as
proposed by the Rockefeller Commission); and (5) remains an exemption
statute for Freedom of Information purposes. Again, the proposed
Executive Order could be the guide,
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In addition, one of our primary legislative goals should be
to win adoption of the Director's proposal to add criminal sanctions
for the unauthorized disclosure of intelligence sources and methods.
C. Covert Action
Section 662 of the Foreign Assistance Act restricts the Agency
from non-intelligence gathering activities unless the President finds
?that each such proposed operation is important to the national security,
and reports his findings to the appropriate committees of Congress.
The Agency must seek repeal of this section because: (1) the
existence of this provision in the Foreign Assistance Act has created
a situation whereby this authorization act is an annual vehicle for
offering covert action amendments, both general and specific amend-
ments aimed at activities in certain countries; (2) many commentators
have stated it is unwise to tie the President so directly to these covert
activities, and (3) too many committees (six) are receiving this informa
tion, thereby substantially increasing the possibility of leaks. Section
662 should be replaced with a general amendment to section 102 (ci) (5)
of the Act, which would require all activities undertaken pursuant to
that section to be reported to the oversight committee: j. D. Statutory Duties of the DCI and CIA
The Agency should seek to make clear what its present-day
charter is. The duties set forth for the Agency in subsections
102(d)(1) -- (5) in some cases no longer apply, while other funda-
mental responsibilities (e.g. collection of intelligence) are not
reflected in the Act.
E. Role of the Director
If it is concluded that the Director needs more authority
for the intelligence community or that the office should be somehow
reorganized (e.g. along the lines of the proposals suggested in the
Taylor report), then changes should be reflected in statute.
F. Ex press Author. i y to Administratively Adopt Certain
Provisions of Law Relating~to Other Agencies
Because the Agency is not su-Dject to an annual authorization,
we have not had a vehicle in which :o add changes in personnel
policy to our statute such as are added every year for the foreign
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service officers by the State Department Authorization Bill. The
Agency has taken the position that under the penumbra of sections
8(a)(1) and (2) of the CIA Act, the Director has the authority to
administratively adopt these provisions of law for CIA employees.
I-iowever, this theory has been recently challenged and the Agency should
therefore seek express authority on this point.
G. Procurement
There are at least two weaknesses in our present procurement
authorities. One is that there is no express authority to dispose of
property. GSA has recently attacked the sale of the equipment of an
Agency proprietary on this point. Second, the language of section 3
of the 1949 Act does not permit the Agency to exercise the authority
in amendments to the Armed Services Procurement Act. Altering the
language of section 3 would rectify this situation.
H. Conflict with the Securities and Exchange Commission
The ability of American corporations to assist the Agency by
providing cover for Agency officers and to provide other services,
without disclosure to the companies' stockholders, has recently been
challenged by the Securities and Exchange Commission. If the SEC
rules that these activities must be disclosed to stockholders (which
would foreclose the Agency from using these companies in any manner),
CIA should seek language in its statute making clear that cooperation
with CIA by American businesses does not come under the compliance
and inspection requirements of the SEC.
1. Conflict with Sundry Laws
A number of Agency activities such as alias documentation are
in technical violation of numerous Federal and state laws. The Agency
should seek congressional recognition of this fact, which can hopefully
be implied as congressional approval, perhaps in legislative history.
J. Housekee ink
The present statutes, particularly the CIA Act, are replete with
outdated reference.- such as reference to laws which have since been
repealed. These sl ould be eliminated,
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