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-RDP81M00980R001900030074-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 19, 2016
• Document Release Date: December 19, 2006
• Sequence Number: 74
• Publication Date: May 24, 1978
• Content Type: MFR

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24* May 1978
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
It> 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
Malcolm Wallop (R. , Wyo.)
2
3. (U) Staff members present included: Dan Childs,
George Pickett, Hal Ford, David Bushong, and approximately six
others.
(U) The Director was the rinci al witness.
D/DCI/Rig;, and General D/ cl/ur,, assisted 1111(1
and ,r. Steven Potts, Department ot e ense, as called on to
answer questions. Additional attendees were as indicated on the 25x1
attached witness list.
25x1
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.
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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- 25x1
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 ion 'rector Thp responded saying that he and and had
looked at a number of ways o g an a decided this
was the most appropriate.
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.
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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 Y, a;P ization would not require any additional funds. 25X1
I I responded saying that the reorganization would not
require a itional funds but that the Director would hope to have
some flexibility i ere the reprogramming changes
might take place. indicated that the original plan 25X1
might require some minor a justment if circumstances indicated
more efficient uses of resources. n asked that an
impact statement be provided, an agreed to do so. 25X1
.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 contTpA
this or '7ation would have over the component agencies.
reported that it would have control over reprogrammings
and such control as was necessary 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 worl this lyis staff would create for
the component agencies and responded that there woulalxi
be no substantial additions 1~or: 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 compoDent aaenripq had been consulteSon this
reorganization and responded affirmatively. 25x1
 I-\ppI uvCU rui r-C LUUo1 1 LI 1 V . 1,1t\-Mxuro i MUUVour i Z7uuu0vu /'+-o 4J
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 to the NITC in the
future and the Director responded that they would probably not have
to do so. He indicated that he wished to maintain as much
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
over the past year and a half. 25X1
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 25X1
was responsible for overall management of counterintelligence.-
Chairman Hathaway asked about the T' 'ttee in
counterintelligence and both I land I Ireplied
indicating that the HUA\IINT Committee would continue to have a jgje
the a ent and guidance of counterintelligence assets.
F in
aid 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 that the CIA ' counterintelligence chief
was about to retire and would be replacing him. 25X1
Chairman Hathaway asked 1 a r. rzezinskif s 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
25X1
M. Chairman Hathaway asked whether there were any other
personnel involved in the Intelligence Committee Staff and the
Director respondt there were people on non-reimbursable
details but that I I of them were a out to leave and would not
be replaced. The Chairman the ql-pa if ere were any other 25X1
personal service contracts and Iresponded with the
details. Chairman Hathaway then asKe it it would, r
to have a ceiling for non-reimbursible details andi
responded affirmatively. The Chairman we gave YOU E:
for present authority would that do and said yes.
25X1
25X1
25X1
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6. (U) Chairman Hathaway ended the meeting by saying
that he had no problem with the concept of the reprogramming.
Office of Legislative Counsel
Attachment:
Witness list as stated
Distribution:
Orig -.OLC Subj
I - D/DCI/RM?i
1 - D/DCI/CT
1 - Mr.
1 - Mr.
I - Mr.
1 - OL Chrono
OLC/ELS/mg (5,,June 78)
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ACCOMPANIED BY:
Steven Potts
Director of Central Intelligence
Deputy to the DCI for Resource
Management)
Intelligence Community. (Designated
Deputy to the DCI-for the -
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
Special Assistant to
(Designated Associate Deputy 15
the DCI for Collection Tasking)
(Designated Director, Office of
Collection Evaluation)
Special Assistant to
of the Director of Central Intelligence
Acting Legislative Counsel, Office
Associate Legislative Counsel, Office
of the Director of Central Intelligence
Department of Defense Representative
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