SENATE SELECT COMMITTEE ON INTELLIGENCE HEARING ON FY 1978 REPROGRAMMING AND FY 1979 BUDGET AMENDMENT CONCERNING THE REORGANIZATION OF THE INTELLIGENCE COMMUNITY STAFF

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81M00980R001900030062-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 19, 2016
• Document Release Date: December 19, 2006
• Sequence Number: 62
• Publication Date: May 24, 1978
• Content Type: MFR

Approved For Release 2006/12/13.: CGA DP81 M00980R001900030062-1
MEMORANDUM FOR THE RECORD
OLC X78-1971/1
24 May 1978
GUY
SUBJECT: Senate Select Committee on Intelligence Hearing on
FY 1978 Reprogramming and FY 1979 Budget Amendment
Concerning the Reorganization of the Intelligence
Community Staff
1. (U) On Wednesday, 24 May 1978, the Budget Authorization
Subcommittee of the Senate Select Committee on Intelligence (SSCI)
met to hear the Director on the matter of FY 1978 reprogramming
and FY 1979 budget amendment concerning the reorganization of the
Intelligence Community (IC) Staff. Security was provided by the
Committee. A transcript was taken of the hearing. Witnesses
were not sworn. The hearing started at 10:00 a.m. and concluded
at 11:15 p.m.1'
2. (U) Members present included:
William D. Hathaway (D., Maine), Chairman
25X1
Malcolm Wallop (R., Wyo.)
3. (U) Staff members present included: Dan Childs,
George Pickett, Hal Ford, David Bushong, and approximately six 25x1
others.
(U) The Director was the rinci al witness.
D/DCI/RM, and General D/DCI/CT, assisted him
and 'IMr. Steven Potts, Department of Defense, was called on to
answer questions. Additional attendees were as indicated on the 25X1
attached witness list.
5: ( S) The following items of interest were noted:
a. The Director presented his briefing which described
and explained the reorganization of the IC Staff and the Collection
Tasking Staff and the Resource Management Staff. During his
briefing he indicated that there was a need for a general and a
legislative counsel activity to handle Intelligence Community matters,
but that these personnel would be offshoots of the Office of
Legislative Counsel and the Office of General Counsel of CIA.
 Approved For Release 2006/12/19: CIA-RDP81 M00980R001900030062-1
b. Chairman Hathaway asked where the additional posi-
tions being added to the IC Staff were coming from and what
activities were being. reduced. The Director responded by saying
he was basically picking up a few positions from various locations
in the CIA. Mr. Potts responded for the Department of Defense
saying the precise areas from whence positions would be taken had
not yet been identified but that this would be done as'part of
the 1978 budget exercise. The Chairman said don't we need to
know that now, and again repeated his question. Mr. Potts
responded that he could not give a precise answer but would
supply something for the record.
c. Chairman Hathaway asked how the Community perfor-
mance would improve under this reorganization, and the Director
responded by describing improvements in the coordination of
collection tasking and in the carrying out of new budget
responsibilities. 25X1
d. chairman Hathaway asked the Director if he had
considered other alternative 'on pl Director
responded saying that he and and had
looked at a number of ways of reorganizing an had decided this
was the most appropriate. 25X1
e. Chairman Hathaway asked about the need for three
evaluation units, and the Director explained what the different
functions would be for each of the units in the National Foreign
Assessment Center, the Collection Tasking Staff, and the Resource
Management Staff. The Chairman asked if these units could not be
merged, and the Director responded that they could be, but it
would not result in a savings in personnel and might conceivably
be less efficient in the long run. The Chairman asked if these
units might be performing overlapping functions. The Director
indicated that there would be some overlap, but it would be
desirable. He also indicated that there would also be non-
Government people invited into the process from time to time to
help in the development of intelligence studies.
f. Chairman Hathaway asked how the National Intelligence
Tasking Center would interface with existing Community functions.
The Director responded saying that the NITC would be colocated
with the combined collection facility of'the Department of Defense,
and that this would provide for an interface between tactical and
national intelligence tasking.
Approved For Release 2006/12/19: CIA-RDP81 M00980R001900030062-1
 Approved For Release 2006/12/1.9 ;C.1'#`IDP81 M00980R001 900030062-1
g. Chairman Hathaway asked if there were any plans for
further expansion of the IC Staff beyond what was being requested.
The Director responded saying he did not plan any further expan-
sion, but that at this point he could not be absolutely certain
as to how many people would be needed and would have to wait and
see whether the numbers currently being requested were right.
h. Chairman Hathaway asked the Director to indicate
what the Committee might look to in evaluating this new staff
concept, and the Director responded saying that next year the
Committee should look to the progress the Collection Tasking Staff
had made in developing collection plans and the progress the
Resource Management Staff would make in presenting better budget
justifications.
i. Chairman Hathaway asked the Director to confirm that
this reor anization would not require any additional funds. 25x1
responded saying that the reorganization would not
require additional funds but that the Director would hope to have
some flexibility i ere the reprogramming changes 25x1
might take place, indicated that the original plan
might require some minor adjustment if circumstances indicated
more efficient uses of resources, n asked that an 25x1 , The impact statement be provided, and agreed to do so.
j. Senator Wallop asked the Director to assure that he
would monitor the future size and budget. of the new Community
organization. The Director responded that he would, that he
would cut overhead at CIA in order to increase operations, and
that he had no desire to have any unnecessary management. How-
ever, he said this reorganization plan was called for by the
charter legislation. It was needed if he was to have the mechanism
to coordinate the Community. Senator Wallop. asked how much control_
4I- -
ation would have over the component agencies.
reported that it would have control over reprogrammings
and such control ssary to implement DCI and Congressional
budget policy. indicated that detailed day-to-day 25x1
management control wou not rest with the IC Staff. Senator
Wallop asked how much new lyis staff would create for
the component agencies and responded that there woullx1
be no substantial additions wor oa at the management level.
However, there would be some additional financial breakouts required
in order to assist in the budget management process. Senator Wallop
asked if the compo had been consulte(f on this
reorganization and responded affirmatively. 25X1
 Approved For Release 2006/12/19,; hA R&81
V i.w :J r d.d
k. Senator Wallop and the Director then had a discussion
on the manner in which intelligence analysts would relate to both
the NITC and the collection tasking committees. The Director
explained that while the NITC would grow in its role, he had no
intention of prohibiting analysts from dealing directly with the
functional tasking committees. Chairman Hathaway at one point
asked if all analysts would be required to
go
future and the Director responded that they would probably NITC l in the
to do so. He indicated that he wished to maintain as b much not have
flexibility as possible in these matters. Senator Wallop then
asked if this plan was the result of a study the Director had made
and the Director responded that it was based on his experience 25x1
over the past year and a half.
1. Chairman Hathaway asked what the reorganization would
be doing to improve counterintelligence. The Director responded
that the Resource Management Staff would be looking at counter-
intelligence in its budget role. He explained that under the new.
Executive Order the Special Coordinating Committee of the NSC
was responsible for overall management of counterintelligence.
Chairman Hathaway asked about the role of-,the HITNITNT 'ttee in25x1
counterintelligence and both and replied
i
in thp ndicating that the HUMINT Committee would continue to have a role5x1
ment and guidance of counterintelligence assets.
Isaid that he had planned to have one. man assigned to
this function but was thinking that he might need a second person.
The Director then indicated IA- counterintelligence chief5xl
was about to retire and would be replacing him.
Chairman Hathaway asked what Mr. Brzezinskits role would be in
counterintelligence and the Director replied that he would be
responsible for managing the overall Government effort and would
not get down into daily operating details. At one point in the
conversation the Director indicated that the placement of manage-
ment responsibility for counterintelligence was a problem because
of the close affinity of counterintelligence to law enforcement.
and that the decision to give this role to the NSC was, in effect,
a compromise. 25x1
M. Chairman Hathaway asked whether there were any other
personnel involved in the Intelligence Committee Staff and the
Director respond there were[ people on non-reimbursible
details but that of them were a out to leave and would not
be replaced. The airman the Jere were any other 25x1
personal service contracts and responded with the
details. Chairman Hathaway then as e It it would not be better
t
h
o
ave a ceiling for non-reimbursible details and
responded affirmatively. The Chairman tote gave you
for present authority would that do and said yes.
0
 Approved For Release 2006/12/16:.CIDP81 M00980R001900030062-1
6. (U) Chairman Hathaway ended the meeting by saying
that he had no problem with the concept of the reprogramming.
Office o Legislative Counsel
Attachment:
Witness list as stated
Distribution:
Orig - OLC Subj
1 - D/DCI/RM
1 - D/DCI/CT
OLC/ELS/mg (5'. June 78)
1 - OLC
1 - Mr.
1 - Mr.
1 - Mr.
1 - Mr.
Approved For Release 2006/12/19: CIA-RDP81 ML00980R001900030062-.1
 Approved For Release 2006/12/19: CIA-RDP81 M00980R001900030062-1
.WITNESS LIST
Stansfield Turner
ACCOMPANIED BY:
Steven Potts
Director of Central Intelligence
Deputy to the DCI-for the - 25x1
Intelligence Community. (Designated
Deputy to the DCI for Resource
Management)
Special Assistant to the DCI
(Designated Deputy to the DCI
for Collection Tasking)
Chief, Support Staff, Intelligence
Community Staff 25x1
Budget and Fiscal Officer,
Intelligence Community Staff
(Desinated Associate Deputy-To-
C,
the DCI for Collection Tasking)
Special Assistant to
(Designated Director, ice o
Collection Evaluation)
Special Assistant to
Acting Legislative Counsel, Office
of the Director of Central Intelligence
Associate Legislative Counsel, Office
of the Director of Central Intelligence
Department of Defense Representative
Approved For Release 2006/12/19: CIA-RDP81 M00980R001900030062-1