DIARY NOTES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00764R000500060019-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 15, 2016
• Document Release Date: December 3, 2003
• Sequence Number: 19
• Publication Date: December 20, 1957
• Content Type: REPORT

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DIARY NOTES
25X1
PD /S
25X1
20 December 1957
4. The Director conducted a meeting in his office to discuss Dick Bissell's 15
November 1957 paper on "The Stimulation of Innovation." I got the distinct impression
from the way he ran the meeting that he had already made up his mind to do this re-
gardless of what anyone present might have said. However, it was quite clear that
Frank Wisner and Dick Helms had serious reservations about how the administration
of the Technical Services Staff would go under such a setup, and it seemed to me that
Dick at least would have preferred to make a clean split between those parts of TSS
devoted to research and development and those devoted to the day-to-day support to
clandestine operations. It was generally agreed that such a split might be possible but
that I I of be undertaken at this time. Frank and Dick undertook to talk to
about the whole matter and reserved final comment until this had been
done. (In this connection, the Director seemed to think tha had slowed
down quite a bit and probably should retire in about a year.) 25X
1 AI
Insofar as the DD/S area was concerned I advised the Director that while I
thought this would work I was interested in three points:
`a w
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a. First, the paper seemed to emphasize that the SA/PD would
have real authority to act within his acknowledged field without much
coordination. I said that I thought coordination was going to be abso-
lutely essential since the organizational arrangement was so untidy
and the proposed authority which would be fixed in the SA/PD was so
broad. Dick Bissell agreed that he may have overemphasized this
point.
an individual such as
b. Second, with regard to the organization I advised the group
that I thought it was very messy but that I felt it could work with Bis-
sell. I emphasized, however, that I was not sure it could work with
c. Third, and most important, I spoke to paragraph 5.f. of the
25X1 A 1 A paper having to do with direct contracting by TSS. I said that at the
mo in the Office of Lo 's-
25X1A1A tics,
25X1 A 1 A I emphasized that I -
lieved we should utilize the central contracting authority in the Office
of Logistics in all cases unless the sensitivity of a project demanded,
that we do otherwise, (I excepted Project MKULTRA through which
TSS has authority to spend up to ten per cent of its R&D budget out-
side of the normal contracting procedures.) I then stated that I
thought that when it was necessary to use other than the central con-
tracting facilities the burden of proof should be upon the SA/PD and
that in such instances he should consult with DD/S before making
these exceptions. The Director agreed with this concept. Dick Bis-
sell emphasized the importance of closeness between the user of
equipment and its developer and the feedback of information from the
developer during the research phases. This was accepted by every-
one but I emphasized that I thought the central contracting people
could service him in the same way that his own contractors could. I
pointed out that his own contractors had been supplied by the central
contracting people and that I saw no grounds for alleging incompe-
tence; in fact, if the central contracting people couldn't service him
equally as well then there was something wrong with our own organi-
zation. In any case, it was my clear understanding that the Director
agreed completely with my proposal.
The meeting ended with the understanding that Frank Wisner and Dick Helms
would have further discussions with their own people, after which they would get to-
gether with Dick Bissell and draft a clear-cut statement of Dick's functions for publica-
tion, The Director had stated initially that he wanted to put this into effect on 1 January,
but at Frank Wisner's request agreed to postpone the date.
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EXCERPT FROM "DIARY NOTES" DDS (L. K. WHITE) 20 November 1957
Secret
2. Dick Bissell buzzed me concerning AQUATONE procurement on behalf of the
Dppartment of the Air Force. The Director is concerned that this procurement is not
subject to audit by the General Accounting Office - which would be the case were it
done by the Air Force - and x wants to make sure that the Bureau of the Budget is
fully informed; however, he has agreed that we should not pursue the subject of GAO
audit further at this time. After checking with Ed Saunders I informed Dick that
we had advised the Bureau of the first transfer of funds from the Air Force amounting
to about $21, 000, 000 but that we had not apprised them of the second transfer in
approximately the same amount. However, the Bureau has recently asked that we
submit an apportionment request for funds transferred from other governmental
agencies. This will go forward shortly and reflect the entire transfer from the
Air Force. If they desire a further briefing at that time, Dick will be glad to give it
to them. I also told Dick that when General Foster and I saw the Director on Monday
I would make sure that he understood that General Foster audited all of the AQUATONE
funds, including those transferred from other governmental agencies.
SE Ulf T
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low
DIARY NOTES
25X1
DDS
1. At the Deputies' Meeting:
28 October 1957
a. There was considerable discussion concerning my Memorandum for
the Record regarding my conversation with Bob Macy, Bureau of the Budget, last
Thursday. The Director indicated that he thought the way in which the Depart-
ment of State people were treated in many instances was a disgrace and said
that he had no intention of treating our people in like manner. I stated that I did
not think anyone questioned the necessity for a few of our people having superior
quarters, etc., but thought that the question was a legitimate one when this prac-
tice was carried across the board. I pointed out to the group that it was a fact
25X1 C4A
rather than pay quarters allowances. Frank Wisner took exception to my state-
ment but I insisted that statistics would show that we did this for secretarial and
clerical people at all grades, as well as for our senior operational people who
had to entertain, etc., and strongly urged that we not deny we did it but, rather,
attempt to defend our position.
b. Messrs. Wisner and Roosevelt were also quite upset at the questions
which the Bureau had raised and there was considerable discussion as to what
right it had to ask them and what ability it had to evaluate our substantive pro-
grams. I pointed out that while we might question the Bureau's ability to evalu-
ate our substantive programs it did have the responsibility for evaluating our
budget needs for the President and that unless the President excepted all or a
part of our budget from the Bureau's scrutiny I did not believe we could question
its right to approach its job in whatever way it saw fit. Mr. Dulles and General
Cabell both supported this point of view.
c. Frank Wisner also expressed his unhappiness at the turnover of
Bureau of the Budget Examiners. I said that to the best of my knowledge Lyman
Hamilton, Erb Lewis, and Harry Wilhelm were the only three people in the past
four years or so who had become familiar with our budget and who had moved
or were about to move elsewhere. Mr. Dulles and General Cabell did not seem
to think that this was excessive and General Cabell indicated that he, personally,
did not think we should fight with the Bureau about its prerogative to ask what-
ever questions it desired.
SECS ',T
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EXCERPT FROM "DIARY NOTES" DDS (L. K. WHITE) 23 October 1957
Secret 25X1A9A
A A~_ 25X1A9A
and told him to look carefully into the deactiva ion of the + - ]units and make sure
that from a support point of view we were not losing a facility which could not be re-
placed and for which we might be blamed at some later date. 25X1A8
EXCERPT FROM "DIARY NOTES" DDS (L. K. WH TE) 25 October 1957
Secret 25X1A9A 25X1 A8A
4. reported that he had been in consultation with the PP Staff con-
cerning the deactivation of the II units and that my fears were well founded in-
asmuch as the matter had not been staffed out properly nor completely tied down. He
said that he thought it would be soon, however, and that he had advised Tom Karamess nes
that it should be followed closely since it was a PP Staff and not a DD/S responsibility.
EXCERPT FROM "DIARY NOTES" DDS (L. K. WHITE) 25 October 1957
Secret 25X1A9A
1. Met with concerning the FE
Division's propos a on Program. Inasmuch as I still seem to be
quite far from the DD/P position on this subject, I requested =to obtain permissi25X1 9A
from the Deputy Director (Plans) to send the FE Division's proposed Program to
General Cabell with the request that it form the basis for a general discussion as to
what the Agency policy should be,
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EXCERPT FROM " DIARY NOTES" DDS (L. K. WHITE 17 October 1957
Secret
8. I met with Dick Bissell, Larry Houston and Gates Lloyd to discuss
with Bissell his suggestion that in taking over responsibility for TSS, he also
take over authority now vested in the Office of Logistics for executing their
contracts. I told Dick that I believe in a centralized support organization
and that I wholeheartedly agreed in the way that AQUATONE had been run, but I
did not believe this was a precedent upon which we should transfer the whole
of the TSS contracting business to him. I then asked him to state his reasons
for feeling that this would be a good idea. He said that first of all, he felt
that the Agency would have a better relationship with contractors if he did not
have to deal through another service component, and, secondly, that he was
satisfied from his experience with AQUATONE that he could move much faster than
he could in the Office of Logistics. He went on with some other reasons, all of
which are merely personal and involve humna relations. I said that while I
subscribed to everything they had done in AQUATONE, I did not believe that this
administrative organization should be perpetuated and expanded, that I firmly
believe that transferring contracting functions to him for TSS would be an
unnecessary duplication of effort, and that I thought he should consider putting
the contracting personnel he has obtained from the Office of Logistics back in
that Office where they could service him in the same way they service other
people. Dick said that he did not have in mind transferring the entire function
but that maybe only a part of it. I reminded him that through Project MKULTRA,
TSS already has authority to obligate up to 10%a of their total research and
development project without going through the Office of Logistics and I hoped
that this would be adequate to meet his needs. Larry Houston was very helpful
and said that he did not know of any justification for transferring this to
Bissell. I told Dick that if he could give specific reasons other than generalities
as to why the thing would not work as it Is now set up, I would be glad to discuss
them with him, either now or later. After a half-hour discussion, it was agreed
that we would leave the set-up as it is for the moment. Bissell made it clear that if
he decided to go ahead as it is and he did not get excellent service, he would be
very sensitive about the situation. I told him I had no objection to this and I
was perfectly prepared to meet this situation if it arose. I am not sure, but I
think that he will probably not make an a issue of this. However, in the Office of
Logistics, they will have to be very careful indeed to make sure that he gets good
service. I have spoken to about this and I do not believe there will
be any difficulty.
25X1A9A
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EXCERPT FROM "DIARY NOTES" DDS (L. K. WHITE)
SECRET
3 April 1957
25X1A8A
Colonels Groves and Erb were up to tell me about a meeting which the
latter ha.d. attended. with Messrs. Bissell and, Wright concerning the proposed
merger of the with Project AQUATONE. I told, them that
I knew about this possibility and. was all in favor of it. I also told. them
2 5X1A8A that Dick had, discussed with me his desire to look into the relocation of the
taken immediately.
but that as I understood it no action would, be
EXCERPT FROM "DIARY NOTES" DDS (L. K. WHITE)
SECRET
25X1 C4C
19 April 1957
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