DCI'S ANNUAL REPORT TO CONGRESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85B00552R001100060008-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 24
• Document Creation Date: December 21, 2016
• Document Release Date: August 6, 2008
• Sequence Number: 8
• Publication Date: November 17, 1982
• Content Type: MEMO

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DDA 82-2729/1
MEMORANDUM FOR: Director of Communications
Director of Data Processing
Director of Finance
Director of Information Services
Director of Logistics
Director of Medical Services
Director of Security
Director of Training and Education
Special Support Assistant to the DDA
Career Management Officer, DDA
Equal Employment Opportunity Officer, DDA
Chief, Safety Staff, DDA
Management Staff, DDA
FROM: Harry E. Fitzwater
Deputy Director for Administration
SUBJECT: DCI's Annual Report to Congress
1. As in past years, we have been asked to contribute to the DCI's
Annual Report to Congress. Beyond the specific requirement for this report,
I consider our submission to be an excellent opportunity to provide senior
Agency management with our perceptions of our performance, problems, and
resource needs. You may recall that major portions of our report were
incorporated in the DCI's 19Gl report.
2. It is requested that each of you submit your contribution
to us by COB 8 December so that we can incorporate these submissions in a
directorate-wide response. As with last year's report, your contribution
should cover the following points: component overview, performance highlights,
relations with consumers/customers, future research and development plans, and
present/projected resource needs. The period to be covered by your report is
the 1982 calendar year.
3. Forwarded herewith for your guidance is a copy of the directorate
report submitted in 1981 along with the DCI's memo to NFIB Program Managers
and a copy of the remarks he made to our employees on 21 October.
4. If you have any questions or require additional inforiiiation, please
contact Executive Officer, DDA,
F~a r~ E. FX L-t a t e r
0
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Directorate of Administration
Annual Report to Congress Submission
DDA 1981 Overview
In spite of austere resources, the Directorate continued to provide timely
administrative support, in most areas, to Agency componen.s. Serious personnel
shortages in several key areas, particularly communications, persisted
throughout much of the year. The need for recapitalization in the areas of
communications, logistics, training, and security continued to be most evident
during 1981, which reinforces the budgetary initiatives undertaken in these
areas. The pressures for expanded support were felt throughott the year. The
increasing security threat to our people and facilities overseas presented resented a
rash of problems. Growing demands for automated data processing s'-pport continued.
Enhanced training in a variety of skills was very much in demand, especially in
the areas of language, operational, and analytical training. Critical space
requirements consumed much time and effort on the part of Directorate personnel-
And continued pressures to meet the requirements of the Privacy Act and FSIA
absorbed substantial resources.
1. PERFORMANCE HIGHLIGHTS IN 1981
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General
During the past year we have worked closely with t .e Departn.ent of State
in the implementation of benefits and allowances ste+:m.ing from the Foreign
Service Act of 1980. Child visitation travel, employee o??tion for separate
maintenance allowances, and danger oav are a flew of the many Foreign Service Act
hanofitc which were implemented.
tor uxzi,li;
to solve problems for 4gency personne . , nave,
allowance to provide for residential security improvements overseas, revised our
overseas medical program to liberalize benefits paid, etc_
During 1981 the Office of the Infort; atior Handling Systems Architect was
established as a staff function in the Directorate of Administration- The Office
has been staffed, a charter approved, and planning/implementing functions are
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un.ier %?lay. Anong these functions were the initiation of several projects
defining the existing architecture of information handling systems in the Agency,
the establishment of a milestone management review system applicable to all
information handling concerns in the Agency, and the beginning stages of the
Agency's first strategic plan for information handling systems (to be completed
in one year).
Communi cations
Data Processing
A major part of the effort and attention of the Office of' Data Processing
(ODP) has been focused on improving the productivity of the ODP user community.
During 1981 productivity measurements indicated that OAP systems did indeed
achieve this goal. In addition, a variety of new computer systems and services
were implemented during the year. While support for ongoing programs continued,
ODP was heavily involved in the development of SAFE, the upgrading of CAMS, TADS,
etc. Because of budgetary constraints on the acquisition of terminals, user
requirements could not he fully met. Also, a backlog of user requirements for
applications software development was not net because of a shortage of
applications prograrrners. This shortage in applications programmers is the
result of an eight-year freeze on increasing their numbers in ODP and the fact
that those on board are heavily involved in maintaining an expanding portfolio
of developed applications systems. Relief will be realized in this area if ODP
is successful in gaining the new positions requested in the FY-1983 program.
Logistics
During the past year, the Office of Logistics continued to provide the
full range of logistical services responsive to Agencywide requirements. Such
services included printing and photography, centralized procurement, transporta-
tion, mail and courier support, and general housekeeping activities. While
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the General Serivces Administration (GSA) is directly responsible for the 1?tteer,
it has historically not been responsive to the Agency's needs in this area.
During 1981, however, consummating years of negotiations, GSA has delegated
several of its authorities to the Agency in terms of leasing space and the
operation, maintenance, and construction
In conjunction with the Directorate of Operations, the Office of Lo istics
has inrraacad lnypntnrles of strategic reserve stocks maintained at the
Other signiti can accomp.i ss meats
ast year include the comp etion of the architectural design and
during the
p
engineering phase of the planned expansion the preliminary
work completed by the Building Planning Staff with rear to a proposed new
building on the Headquarters compound; and the improved responsiveness and
efficiency in printing and photography by the acquisition of automated equip-
ment.
Security
Personnel security and integrity of both staff employees and industrial
contractor personnel received continued strong emphasis during 1981. The
Probationary Employee Screening Program and the Five-Year Reinvestigation/
Repolygraph Program continued to pay dividends in terms of ensuring a healthy
security posture. During the past year over ndustrial contractor personnel
were subjects of background investigations; over polygraph interviews were
conducted .-.ith contractor employees; and security au i ..s were conducted at=
industrial and government sites where sersitive- compartmented information is
maintained. Standard Agency security practice includes periodic audio counter-
measures ACM inspections at our facilities.
The increasing complexities and challenges in the intelligence security
field are shared by other members of the intelligence Community. Security of
installations abroad, computer security concerns, and personnel security
processing problems are, for the most part; shared by the intelligence agencies.
The office of Security is very much involved in a host of Com iuni ty-wide efforts,
including program and the implementation of the Comni'_tnity-wide
Col:puter-assisted Compartmentation Control System (4C) The increasing demands
regarding security cannot be met with the limited reso'.:rces available unless
interagency cooperation becomes part of our daily routine.
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Training
During 1981 the demand for and participation in training, programs
reached new highs. There were[::] different courses of instruction offered
in external training. The past year has witnessed the beol nning of what we
believe will become strong; mature programs in two particular areas: the
growth and development of analysis training and the professional development
program. The dramatic increase in operational and paramilitary training has
placed extremely heavy demands on the staff and facilities of the Office of
Training and Education (OTF). The steady influx of career trainees, most of
whom are D00-hound, will continue to place additional burdens on OTE's resources. as
etc. The decline in the P.gency's
language skills has also had a substantial' effect on training resources. We
are now providing language instruction to more students than ever before. The
aircraft has been extremely heavy. In order to keep pace with the increasing
training requirements; we must upgrade our present facilities, provide for an
increase in classroom space, and increase the number of instructors-
Support Services
A significant effort was expended by the Office of Medical Services (O1S)
in Project SAFEHAVEN. This program, which provides for extensive first-aid
self-help equipment and training to assist employees in handling medical
emergencies abroad when professional medical assistance is not available, repre-
sents the combined efforts of O4S,
OMS' Center for Counterterrorism and
rises Response continued
the medical services provided to Agency employees. During 1981, psychological
and psychiatric programs have been fully exploited in the area of testing and
assessment as well as in pioneer efforts involving psychobiographic studies of
disaffected employees- The support provided by our Regional Medical Officers
located abroad both in terms of operations and the well-being of our employees
continued to be most effective.
The most
persistent problem area continues to be the updating ot our autoinarea financial
systems, which are suffering from the lack of programmers. This is particularly
critical in the payroll arena where our antiquated, automated payroll system is
not providing timely, efficient responses to our needs.
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The Office of Information Services (OIS) played an instrumental role
in developing and coordinating the Agency revisions to Executive Order 12065_
During 1981 this Office also initiated the processing of over 3,000 new cases
under the Freedom of Inforiationand .Privacy Acts and the mandatory classifica-
tion review requests. In addition, we strengthened our information handling
program by incorporating most of the Agency's information and handling positions
into a separate career subgroup. Through this action we can provide a cadre
of employees specializing in information handling matters with professional
development and more varied career opportunities.
II. RELATIO'N'S WITH CC;1SUMERS
The bulk of our customers are within the Agency. The principal area of
service to other government agencies is in the communications field. Relations
with our customers in this area are excellent; the support provided by the
Office of Communications has been timely, responsive, and efficient.
III. FUTURE RESEARCH A`iD DEVELOPMENT PLANS
The Administration Directorate is pursuing a research and development
program utilizing state-of-the-art technologies to enhance physical security
capabilities and information processing systems. The program includes data
communications security and addresses detection and prevention of system
penetration, data base encryption, and compartmentation of computer accessible
information. Research activities will also address the problem of protection of
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abreast of advances in TEMPEST or other technologies to protect Agency infor-
mation systems. The program provides for the development of new communications
technologies such as: "smarter" HF, satellite and mixed-media communications
terminals, as well as the use of graded fibre optics for high bandwidth
communications. In text processing we are seeking software designs to
efficiently process digitally stored textual information. In data base
management we continue to seek new and easier access, retrieval, and processing
of stored information; graphics and alphanumeric displays; and computer-aided
instruction. This program addresses the prevention of unauthorized copying of
sensitive documents. And finally, our program continues efforts to improve
polygraph utili accuracy, detection and neutralizing
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IV. PRESENT AND PROJECTED RESOURCE NEEDS
The Office of Co;Imunications has drafted a comprehensive plan to
modernize our communications Worldwide. Modernization is essential to enhance
the collection and timely dissemination of,intelligence and to accommodate the
use of automatic information handling systems in the field. Modernization is
also vital if vie are to ensure the continuity of cornunications under various
contingency conditions.
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The need for recapitalization has been alluded to several times in this
presentation. Capital improvements are required to ensure that our present
facilities and utilities remain reliable and responsive to our operations.
Additional resources will be required in order to continue with our plan to
centralize Agency activities on the Headquarters compound, which ultimately
will eliminate the present inefficiency and security risks inherent in the
present decentralized configuration.
Because of limited resources over the recent past, the Agency has not
been able to make maximum use of data processing technology- Many of the
Agency's present data systems, are only partially automated and many systems are
approaching obsolescence. An injection of both funds and personnel is sorely
needed in this area.
If we are to keep pace with the challenges that confront us in all of the
support areas,we must be able to take on board personnel to replace the number
of experienced Directorate personnel who have left the Agency over the past five
years. We simply cannot afford to wait until the requirements for support from
the expansion of the Agency's collection and production activities are upon us.
Given the limited lead time currently available to us, we frequently find our-
selves in a reactionary mode, taking resources from one essential activity to
support another. We are making a concentrated effort to work with the other
directorates to determine their support requirements as far in advance as
possible. Assuming that the Directorate of Administration's FY-1983 program
gets through the approval process intact, an appropriate level of resources,
especially funding for recapitalization, will be available to support the
Agency's rebuilding efforts.
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DCI/ICS 82-4284
5 November 1982
MEMORANDUM FOR: National Foreign Intelligence Program Managers
SUBJECT: Preparation of the DCI's Annual Report to the Congress
1. It is time again to prepare the Annual Report to the Congress. I
believe that last year's report which began with a DCI overview of the
Community followed by separate reports from CIA, DIA, NSA, INR, and the FBI
was comprehensive and informative, and, therefore, quite successful. This
approach permitted us to address cooperatively and individually the progress
we made toward meeting the needs of national policymakers and departmental
intelligence consumers, and will be maintained this year.
2. You will note from the attached Terms of Reference that I intend to
emphasize the theme of restoring balance to the NFIP as we rebuild. I am
focusing on three areas of interest identified by the President--HUMINT,
analysis, and counterintelligence--with particular attention to efforts in
1982 to achieve balance in our intelligence capabilities. I also plan to
address the support provided to policymakers of both a crisis and long-term
nature. Finally, I again intend to devote some attention to a look to the
future; this year I would like to address the challenges facing the Community
in recruiting, retaining, and training the highly skilled personnel we will
require in the coming years.
3. As in previous years, I invite you to take this opportunity to
address the Congress personally in your own report. We are required to
provide a review of US intelligence activities as well as the intelligence
activities of foreign countries directed against the US or its interests. I
would urge you, however, to devote some time to addressing those three key
issues of HUMINT analysis, as well as counterintelligence, where
appropriate.
WARNING NOTICE
INTELLIGENCE SOURCES
OR METHODS INVOLVED
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4. The preparation of the report is again being managed by the Office of
Planning of the Int Please submit the name of your
action officer to who also is prepared to meet
with you to discuss the report and will provide any assistance you might
Attachment:
Terms of Reference
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i truM~i ur i{tt tKtF .t
DCI ANNUAL. REPORT TO THE CONGRESS
The Office of Planning of the Intelligence Community Staff will
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manage
the preparation of the DCI's Annual Report to the Congress. Congress has
reacted favorably in the past three years to the format and content of the
Annual Report, i.e., a DCI Overview and separate reports each from the CIA,
DIA, NSA, INR, and the FBI. The theme of the 1981 Report was rebuilding which
seemed appropriate for the first report by the DCI and several-'.agency
directors. This year, the theme will be that of restoring balance to the
overall US Intelligence capability as we rebuild, and will focus on efforts to
bring HUMINT into balance with the other INTS, analysis into-balance with
collection, and counterintelligence activities to protect intelligence into
b
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a
ance with the total NFIP effort to generate intelligence Format
The Annual Report will contain seven sections: a DCI Corrununity Overview;
a report from the DDCI on CIA activities; and a report each from the directors
of DIA, the FBI, NSA, and INR. There will be a set of issues that the DCI
will address independent of what individual agency directors may choose to
discuss. There also will be a set of issues that the DCI will address in the
aggregate, and request that the individual agency directors discuss in greater
detail and from their individual perspectives. Finally, agency directors are
encouraged to address events and issues of particular significance to them.
The length of last year's agency reports ranged from six to ten pa es in final
-published format; this range should be adhered to again this year.
The DCI's Overview
The theme of the DCI's overview this year will be that of balance; it
will tie US intelligence developments and world events in 1982 together with
last year's theme of rebuilding to provide a report on the progress made in
restoring balance to the NFIP. As has become tradition, the overview will
begin with a discussion of intelligence support to policy formulation. This
will be followed by a discussion of three programmatic areas identified by the
President as requiring emphasis in the rebuilding process: HUMINT; analysis;
and counterintelligence. Finally, there will 'be a section entitled "1983 and
Beyond" after last year's final section. .The look ahead this year will focus
on the Intelligence Communit 's need to compete successfully for the skilled
manpower it requires..
Introduction - The introduction will be used to restate the theme for the
1981 Annual Report, and discuss in broad.terms the progress made during 1982;
it will be prepared by the Office of Planning/ICS. Organizational changes
will be addressed, as well as Planning activities and budgetary initiatives in
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procedural and operational performance based on improvements to the HIE
process initiated in 1931; and a review of significant world events of both
by .the NIC as it was last year. It will be divided into two parts: the
crisis and long-term concern in 1982.
HUMINT - The Office of HUMINT Collection/IC Staff will take the lead in
discussing the progress made in rebuilding the Cormunity's HUMINT
capabilities, and redressing the imbalance that had grown between it and the
other INTS. The discussion will be broad in scope, leaving more detailed
statements for the respective agency directors. - The emphasis will be on trend
analysis rather than specific programs.
The other INTS, PHOTINT and SIGINT, will be addressed in a.subsection to
be prepared jointly by OICE, OSC, and OA&E of the IC Staff.. The message to be
conveyed is that by 1985 the Community will begin to benefit from a number of
new starts that are in the pipeline. This section also will include a
discussion of the difficult tradeoffs involved in the survivability issue.
Analysis - This section will be prepared by the DDI and will address the
Community's analytical strengths and weaknesses with respect to such factors
as manpower, skills, productivity, and tasking. The overriding theme will be
that of redressing the imbalance between collection and analysis, questions of
quality of analysis, and consumer relations. Several major events of 1982
will be contrasted with the 1985 Capabilities Study for an assessment of
collection strengths and weaknesses. Specific agency programs and initiatives
will be left for agency directors to discuss in their respective reports.
Counterintelligence - This topic is the only one that is specifically
requested by Congress. This section will be written by the Community
Counterintelligence Staff/IC Staff, as it has been in the past years, in close
coordination with the FBI. Its emphasis will be on Community efforts to
promote coordinated activities and generate greater resources to address the
IC and CM issue as described in the NSSD-2 Study. The Technology Transfer
Intelligence Committee/ICS will be asked to discuss the counterintelligence
1983 and Beyond - As a final variation on the balance theme, the Office
of Planning will address manpower as a resource whose particular needs will be
given special attention in the coming year to anticipate the consequences of
demographic trends. The task of recruiting, retaining, and training.the -
highly skilled personnel the Cornunity will require over the next decade will
become increasingly difficult, and imaginative, and farsighted responses will
be necessary if the Community is to compete successfully with the private
sector. Societal changes will influence present work force attitudes, and
will determine future relationships with work in general. The Cor=unity will
review the manpower issue'in the coming year to determine the need for and
qualifications of our future specialists and general i sts/managers, and what
steps need to be taken to encourage leadership to emerge from these two
implications of the technology transfer issue during the year.
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Overviews
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If the past is any guide to what can be expected in the individual agency
reports, virtually all--CIA, DIA, NSA, and MR--will discuss their responses
to world events. The other area where the response can be predicted is that
of counterintelligence, where the CIA, DIA, and FBI traditionally have elected
to-address the subject. HUMINT and Analysis are being discussed in greater
detail this year than before; CIA and DIA are urged to address HUMINT
separately; CIA, DIA, NSA, and INR are requested to address the quality of
analysis issue in their separate contexts. All are invited to address
manpower, but that is an o tion as. are any other issues they may wish to
address separately.
Timing
Outlines for each section of the Overview are due by 15 November 1982
with the specific contribution to the DCI's Overview due by 15 December
1982. Individual agency reports are due by 1 January 1983. The Overview will
be ready for the DCI's review by 1 January,- and the entire report will be sent
to the printers by 15 Janauary 1983, and published by. 31 January 1983. In
-6
e
order to expedite the editing and printing process contributions are to
submitted on NBI System 3000 discs where possible.
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REMARKS OF WILLIAM J. CASEY
DIRECTOR OF CENTRAL INTELLIGENCE
to
CIA EMPLOYEES
CIA Auditorium
21 October 1982
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Good afternoon. I'm glad to be here this afternoon with all of you.
As we move into a new fiscal year I thought I'd like to tell you where we are,
how we're functioning and where we're headed as I see it.
I've just returned from two weeks visiting of our stations --
In all, I've visited
stations since I've been in this
job. In each case I've been powerfully impressed by our operations, our
support and our technical people. In each country, almost always with our
station chief and the DDO division chief, I've had good talks of an hour or
more with the King or the President or the Prime Minister and have had good
working sessions with the chief of the local liaison intelligence service and
his staff. In all, these travels have taken about 6% of my working time here.
It isn't restful to hit
countries in two working weeks plus three weekends,
but I find these visits extraordinarily valuable. They make me proud of the
people we have out there. They help refine and prioritize their objectives,
develop additional support they need, and permit us to better evaluate and-use
their product back here. Talks on the scene always create a better grasp of
reality in assessing intelligence and developing cooperation. More active
collaboration with liaison services is generating a network of capabilities
which can deal more effectively with threats that cut across national boundaries
like international terrorism, the theft of technology, active measures, subversion
and support for insurgencies.
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Talking to our colleagues during my trips overseas and around the country,
I have found morale to be good. I think this can be attributed to an increased
interest and value placed on intelligence, a renewed sense of mission, an
improved public opinion, greater support at grass roots levels, and strong
support from both the Executive and Legislative branches of government.
Overseas service has become more attractive with overseas pay a permanent
thing, a stronger dollar, adoption of items contained in the Foreign Service
Act, our efforts to improve personal and physical security overseas, and better
training of our people prior to overseas assignments.
This Headquarters is an exciting place to be today because the national
security apparatus, and economic policymakers as well, are placing a high
value on good intelligence, on good analysis and on the versatility and can-do
spirit that characterizes this organization. We can all take satisfaction
in the knowledge that we are meeting the needs of the policymakers and that
they are reciprocating by funding improvements for us in the face of tight
fiscal pressure.
I see as my basic job to determine what it is that we need to know and
understand, to see that the existing collection and analytical capabilities
are focused on those subjects, and to develop any additional capabilities
necessary to deal more fully with existing intelligence needs and with others
likely to emerge.
To determine what it is we need to know is the starting point. This
requires a close working relationship with the decisionmaking apparatus. For
most of the last decade the formal mechanism for that has been an annually
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prepared and agreed list of key intelligence topics produced in an inter-agency
process under the auspices of the National Security Council. That exercise
had become rather static and sterile and we have supplemented it with a review
every three months to evaluate the actual intelligence production related to
those key topics and to define the additional collection and analysis still
needed on those topics.
Probably more important in determining our intelligence needs are informal
exchanges with decisionmakers. Every day, a CIA briefer reviews the President's
Daily Brief and significant last minute reports with the Vice President, the
Secretary of State, the Secretary of Defense, and the President's National
Security Advisor. At about 11 a.m., the briefers come in to review with me
the reactions and interests expressed in the briefing. We discuss the next
day's brief and additional collection, analyses or estimates that may be
indicated. That daily playback is supplemented by meetings of the National
Security Council and the National Security Planning Group, which the President
almost always chairs, and by weekly meetings which I and John McMahon have
with Secretary Shultz, Secretary Weinberger and Judge Clark.
This whole vast process of collection and analysis culminates in the
program of national estimates. It is the scope,.the adequacy, the pertinence,
and the timeliness of those estimates in relation to the threats we face and
the needs of decisionmakers that ultimately determine how well we are doing
our job. You've heard Admiral Inman describe how the 50% drawdown in funding
and the 40% drawdown in personnel during the seventies required the concentration
of dwindling resources on the most devastating threats and led to the neglect
of many other areas of concern.
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This showed up most vividly in the national estimates which dwindled
from an annual average of 51 in the late 60s, down to 33 in the early 70s
and all the way down to an annual average of 12 in the 6 years from 1975 through
1980. During 1981 we did 38 national estimates and we will do 60 or more
during 1982.
The real value of this sharply increased number of estimates turns on
their timeliness, relevance and quality. As to timeliness, we haven't matched
the starting pace of General Bedell Smith. When he was sworn in as DCI, he
was told that President Truman was leaving the next day to confer with General
MacArthur at Wake Island and wanted to take with him national estimates on
seven subjects. He called the members of the then counterpart of the National
Foreign Intelligence Board to his Pentagon office at 4 p.m. and told them to
bring along their papers and experts and be prepared to spend the night.
He parceled out the subjects to each of seven principals with appropriate
advisors and announced that he would expect an estimate to be on his desk
early the next morning. When President Truman flew off to Wake Islard that
afternoon, he had the seven estimates to ponder on the plane. Perhaps things
were simpler and more clear cut in those days. We haven't found it necessary
to match that pace but we have turned out significant and urgent estimates in
a few days and one very complex and critical estimate in a week.
As to relevance, when the President and the NSC addressed Libyan sanctions,
technology transfer, Soviet trade and credit, the Siberian pipeline and Western
alternatives to Soviet gas, Lebanon, the next phases in the Iran-Iraq war, the
Mexican financial crisis, the Law of the Sea, the President's Palestinian
initiative, Poland, Kampuchea, the Horn of Africa, US strategic force improvements,
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arms sales to Taiwan and most other subjects, national estimates were on the
table. We've had a lot of catching up to do. We have completed or have in
progress estimates on important and pressing issues which have not been done
in years, sometimes in a decade. New ground has been broken with first-time
estimates on the economic stakes in the Law of the Sea, on the dependence of
the Soviet military build-up on Western technology and trade, on regional
aspects of Libyan, Cuban and Soviet-backed insurgencies in Central America,
in the Horn of Africa and in southern Africa, on potential instability and
regional tensions affecting strategically significant countries, on the high
technology arms market, on the European peace movement and on INF arms
negotiations in relation to the deployment of US and Soviet missiles in Europe.
Most of you know that we have instituted a new fast track system that
can produce estimates on issues coming up for policy decision very quickly.
Perhaps more important, we have taken steps to assure standards of integrity
and objectivity, accuracy and independence, as well as relevance and timeliness
to the national estimate process. The chiefs of the various components of the
Intelligence Community -- DIf,, NSA, State's INR, Army, Navy, Air Force, Marine
Corps, Treasury, FBI, Energy -- sit on the National Foreign Intelligence Board
and function as a Board of Estimates. Each chief at the table is charged with
seeing that the information and the judgments coming out of his organization
are reflected in the estimate. I'm responsible for the estimate but I charge
myself to see that all significant and substantiated judgments in the Community
are reflected so that in policy formulation and decisionmaking the full range
of intelligence judgments in the Community is on the table. I believe this
process has done a great deal to develop a new spirit of constructive collaboration
among the components of the Intelligence Community.
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The strengthening and extension of our capabilities is being encouraged
and strongly supported. We have a completed comprehensive review of the
intelligence challenges we see for the rest of the decade, the adequacy of our
current collection and analytical capabilities to meet them and what it will
take to overcome the inadequacies. We have recently completed a similar review
of hostile intelligence threats, our present ability to counter them and the
additional countermeasure capabilities needed.
Although we are sometimes severely pressed as the new missions assigned
us require carrying increasing activities and rebuilding at the same time, we
are still managing to do the job. This has required many of you to put in
longer hours, many have given up leave and undertaken extensive TDYs. We will
remedy this as we rebuild. Right now the load is lightened by several hundred
retirees working with us on contract.
As we move into Fiscal '83, our budget has increased by more than 25
percent. The actual real growth in light of inflation will be over half of
that. We ended FY '82 with=personnel above our '82 ceiling--this was
approved by OMB and Congress which demonstrates their support for the Agency's
programs. We have just completed OMB hearings for our '84 budget and are
encouraged with expected further growth in Agency programs.
We have started over these two years on a substantial increase in
the number of human intelligence collectors overseas and the expansion of their
activities into new areas. We've made a good start on sizeable increases in
the number of intelligence analyst Vacross the full range of intelligence
problems iith particular emphasis on those areas of sharply increasing demand --
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-- Third World, nuclear proliferation, international terrorism, and global
resources. We are instituting a long-term program to upgrade the skills and
experience levels of our intelligence analysts through overseas assignments
and continuing education. These efforts are being supported by improvements
in automated data systems to provide support to analysts and in building and
maintaining expanded and improved data bases.
Initial efforts in the development of the SAFE system were disappointing
but we believe we have turned the corner. I have redirected this program to
provide an initial capability to screen, sift and store reports for at least
___]analysts starting in March '83.
A major upgrading of our technical collection instruments and of
our ability to process and interpret the data they collect will be showing
results this year and be completed in 1986.
We are investing significant funds in our Office of Communications to
upgrade our domestic and foreign communications netw)rks. Our training staff
and facilities, as we rebuild, are expanding and require additional resources.
As we expand, new challenges will be faced by our Offices of Medical Services,
Security, and Personnel. They performed yeoman work during the last fiscal
year as we processed and entered on duty over 50 percent more personnel than
in the prior fiscal year.
Thus, you see, there are new and immense challenges for every element and
every individual in this Agency.
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In this rebuilding process, we've gone public in our recruiting. I was
hesitant but I now believe it to be a very good thing. We get a quarter of
a million letters and telephone inquiries a year. It's an open and widely
known fact that there is a broad spectrum of opportunities for honorable,
satisfying and rewarding careers in the CIA. That by itself is a good thing.
The quarter of a million inquiries boil down in round numbers to 20,000
interviews, 10,000 applications,
people cleared and accepted as suitable,
and ~ new recruits a year. So, we're bringing on the new people we need
while maintaining a high standard of selectivity. When they come in we intend
to test their ability to meet high standards of performance early on and impose
responsibility as rapidly as possible.
One of the things we must work toward is moving our people back into
Headquarters. Today we are housed in over 30 locations in the metropolitan
area. This is an inefficient and costly way of doing business and requires
duplication of extremely scarce resources. I have authorized leasing 150,000
square feet on the Route 123 corridor to reduce current crowding and to provide
for our '83 increase in staff. Beyond that, we are planning for a new building
here on this campus. We have obtained approval by the National Capital Planning
Commission, the Fairfax Supervisors, and have the concurrence of local interest
groups. We appear to have Congressional support and we have selected an
architectural and engineering firm to design the new building during this year.
I am seeking funds in the '84 budget for construction of the new building.
How are we gearing ourselves to carry forward a long-term rebuilding and
at the same time handle the new pressures we face right now -- destabilization
and external support of insurgency and subversion in friendly countries,
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spreading terrorism, instability threatening disruption in strategically
situated countries, technology transfer imposing heavier defense burdens on
us, intensified espionage and active measures by the KGB and its partners.
We've created new centers -- a Technology Transfer Center, a Center on Insurgency
and Instability, co-located DI and DO units on terrorism and counterintelligence.
We are strengthening the support we get from our intelligence liaison with
friendly countries by briefing and training their officers and providing technical
capabilities to generate greater assistance from them in counterintelligence,
anti-terrorism, and intelligence support of counterinsurgency.
One of my prime objectives has been to get better mutual support among
the components of the Intelligence Community and between the Directorates
and the offices of the CIA. The Defense Intelligence Agency and INR at State
are carrying as much as one-third of the drafting of the expanded estimates
program. Monthly warning meetings did not yield a close enough watch and
they are now supplemented by a watch meeting every Thursday in which the
chief of our Intelligence Directorate meets with the chiefs of DIA, State/INR,
and NSA to provide the President with a weekly watch report on Friday morning.
One of my special interests of late has been to energize analysts to actively
and regularly specify information gaps their analytical work points up. We
need this to assure that our extensive technical and human collection abilities
are driven primarily by the intelligence needs of analysts and decisionmakers
rather than by our collection capabilities. We need more analyst tasking of
the clandestine service and more contributions from field stations to analytical
products. DDI use of DDO reporting is up 300 percent and DDO reports are up
10 percent over last year. In every crisis we've had and every hot spot from
Namibia to Poland, from the Falklands to Central America and Lebanon, the
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Operational Directorate and its stations, the Intelligence Directorate and the
Science and Technology Directorate have been intimately involved in a mutually
supportive way, and the DDA has supported all of them. Throughout the Agency,
high quality performance from each and every segment is critical to the performance
which the government and the national interest requires from intelligence and
this is a challenge to every person here. Security, for example, which is so
essential to meeting our responsibility, depends not only on the vigilance of
the security office but also on the attention and discipline of each one of us.
Just because we have large needs and have thus far enjoyed generous support,
we need to prune wasteful, uneconomic or unproductive activity. I have tasked
our managers, in accordance with Administration directives, to search areas
where we may reduce waste and perform our jobs more efficiently and economically.
Significant savings have been realized by use of Government Travel Requests
whenever feasible. Automation has significantly reduced overtime costs and
improved efficiency and production in some areas. Through investments in
capital equipment, we have been able to both increase efficiency and improve
our responsiveness in a variety of ways -- as an example we have increased
our computing power three times in the last four years. I would encourage
each of you to make use of the Suggestion Awards. Program to help us further
improve the cost effectiveness of operating our Agency.
In analysis we cannot tolerate reluctance to entertain alternative inter-
pretations or controversial views, defensiveness against outside criticism
or failure to lean forward and be specific about future trends, intentions and
alternative scenarios. In all our activities we cannot accept mediocre
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performance, lack of realism or failure to apply rigorous standards of review
and quality control. We are not prepared to apply scarce talent and resources
to projects of marginal value or interest to the policy community and this has
led to a certain amount of pruning and focusing of our research, development
and operational activities.
We are looking for outside input, challenge and criticism of our work.
Some 65 conferences and seminars bringing in experts from academia, think
tanks and business are scheduled for the fourth quarter of 1982. Our outside
contract research is broadening in scope. Work in the weapons area dropped
from 80 percent in 1980 to 57 percent in 1981 to make room for more outside
political, economic and strategic research.
In conclusion, let me say again that I appreciate what all of you have
done to get as far as we have. I know you will meet the additional challenges
ahead as I've tried to outline today and recognize new ones as they emerge.
Plow I'll be glad to try to answer your questions and comment on any
additional subjects you'd like to suggest.
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