MEMO TO MARK W. CLARK FROM ALLEN W. DULLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00269R000100110012-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 31
• Document Creation Date: December 19, 2016
• Document Release Date: December 1, 2006
• Sequence Number: 12
• Publication Date: December 8, 1954
• Content Type: MF

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CENTRAL INTELLIGENCE AGENCY
8 December 1954
MII~SORARI?UM FOR: General Mark W. Clark
You have asked for specific proposals for legislation
or other actions for your Task Force to consider. The
following subjects merit your consideration. A brief
discussion of each is enclosed.
I. Legislation Required by .the Central Intelli-
gence Agency.
II. A Congressional Committee for the Central
Intelligence Agency.
III. Justification for a Ney~7A H?adquarters
Building.
Enclosures:
I, II and III.
~~IFIDENTIA~.
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I. LEGISLATION REQUIRED BY THE CENTRAL INTELLIGENCE AGENCY
In seeking to develop the Career Service of the Central
Intelligence Agency, a detailed study was made of existing laws
in the field of personnel administration to determine their
applicability to CIA, and to ascertain what additional legis-
lation should be sought by CIA in order to strengthen its
Career Service. The basic requirements in this field, and
the supporting data which prompts the recommendations for
specific legislation, are set forth in the staff study of the
Legislative Task Force which is forwarded herewith. Our
subsequent study of these recommendations for proposed legis-
lation for CIA. indicated that it would be highly desirable to
secure the following legislation:
a. Additional medical and hospitalization benefits to be
provided to CIA employees and their dependents when stationed
overseas.
b. Liberalized civil service retirement benefits providing
accelerated retirement credits which will permit retire-
ment at an earlier age than under the Civil Service Retirement
Act for CIA employees with overseas service to their credit.
Precedent exists for accelerated retirement in investigative
positions and would tend to support a credit of 12 years for
each year of overseas service and an additional credit of a
2 year for each year of such service at sn unhealthful post.
However, current government thinking in this field is that
such an acceleration will bring about retirement of an
employee at an age where he still would have good productive
years available for the Government. Therefore, it is
believed that current governmental proposals will recommend
an increase of retirement annuity percentages from 1~ to
2~,for employees on hazardous service or with stated periods
of overseas service but will not accelerate the age of
retirement. CIA feels that the benefits of a Career Service
should include certain benefits for overseas or hazardous
service and, therefore, is prepared to recommend legislation
advocatiag either an accelerated retirement age or an
increased annuity percentage for its employees.
c. Current accumulations of statutory annual leave are not
sufficient to provide adequate home leave between tours of
duty overseas and still permit adequate annual leave to
employees during their tours abroad. It is our considered
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judgement that CIA employees should receive the same
statutory leave benefits as are now applied to members
of the Foreign Service; namely, the authority to
accumulate one week of home leave for each four months
of duty outside~of the United States. Legislation
will be required in this connection.
d. Legislation is required to authorize CIA to defray
at least a part of the additional expense to employees
for the cost of primary and secondary education for the
children of employees stationed overseas. This will
serve to defray the high cost of educating children
overseas as opposed to the normal public school cost
in the United States.
It should be noted that the legislative requirement for
exemption for CIA from the provisions of the Performance Rating
Act of 1950 has already been met by inclusion of the exemption
as Section 601 (a) of P. L. 763 of the 83rd Congress.
It should be noted that Missing Persons legislation, which
provides for the continuation of payments to dependents of those
missing in action, is currently in. force, but only because the
expiration date of the present Act has been extended on a year-
to-year basis by succeeding sessions of the Congress. The
Department of Defense is charged with the preparation of
permanent Missing Persons legislation, and the Congress has
alsoindicated a desire to receive such legislation. The
necessity for such legislation far CIA employees is readily
apparent, and if it were not to be proposed on a government-
wide basis, it would be necessary for CIA to seek its own
authority in this field. A11 steps should be taken, however,
to resolve the long standing disagreements between the Depart-
ment of Defense and the Bureau of the Budget on this legis-
lation so that it may be passed in the current Congress. In
connection with the four mayor items for Career Service
legislation noted above, (medical benefits for dependents,
liberalized retirement benefits, statutory home leave benefits,
and educational allowances for dependents overseas), it should
be noted that the Government in each instance is considering
government-wide action. If a review of the draft legislation
on these government-wide proposals indicates that they will
support the necessities of the CIA Career Service, then separate
CIA legislation on these items will not be necessary. However,
if a fina~.determination is reached not to propose these items
on a government-wide basis, then CIA should be prepared to seek
its own legislation in this field. In any event, CIA is not in
a position to seek independent legislative action now since the
Bureau of the Budget would undoubtedly request the CIA to with-
hold its proposals pending clarification of the over-all
Government program.
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In addition to the above, it is suggested that there should
be a reallocation of the positions of the Director and Deputy
Director of Central Intelligence in the official governmental
structure as established by the Executive Pay Act of 1949
(P. L. 359 - 81st Congress). This should change the position
of Director of Central Intelligence to a position equivalent to
that of the Deputy Secretary of Defense and the Chairman of the
Atomic Energy Commission, and raise the position of the Deputy
Director of Central Intelligence from that of GS-18 to a position
e quivalent to an Under Secretary of a Government Department.
In addition, authority similar to that granted is the Atomic
Energy Act of 1954 which authorizes the establishment of not
exceeding ten divisions, each to be headed by a Director ,should
be gives for the six principal assistants to the Director. These
six statutory positions would be allocated to the positions
presently designated as Deputy Director for Plans, Deputy Director
for Intelligence, Deputy Director for Administration, Special
Assistant for Plans and Coordination, Inspector General, and
General Counsel. It should be noted in the case of the General
Counsel that many agencies have the position of the principal
legal officer established by statute with appropriated compen-
sation in excess of the General Schedule. This has been continued
by recent atatuatory actions placing the position of General
Counsel of the Departments of Defense and Commerce, and the
Legal Advisor of the Department of State at the Assistant
Secretary level. It is felt that this statutory reallocation
of Central Intelligence Agency positions will serve to place
them at a level commensurate with their responsibilities.
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III. JUSTIFICATION FOR A NEW CIA HEADQUARTERS BUILDING
1. Anew CIA headquarters building in which office space would
be provided for the entire Agency would result in improved security,
increased efficiency, and greater economy.
Security.
a. Office space for the Agency is now located in thirty-
three separate, dispersed buildings, twenty-nine of
which are temporary, converted-type structures.
b. There is a substantial security risk in the transfer of
many highly sensitive papers between these various,
widely dispersed offices on a continuing basis.
c. No reasonable expense or effort would secure these tem-
porary structures sufficiently to insure against force-
able entry by unauthorized persons nor is it possible
to maintain a satisfactory standard of fire prevention
in these structures in which some of the most sensi-
tive and vital clandestine documents in or available to
this t3overnment are housed. It would be virtually im-
possible to replace these documents and to attempt to
do eo would necessitate undertaking a program involy-
ing years of operations and an expenditure of money in
the millions of dollars.
Efficiency:
a. For security reasons, perhaps as much as fifty per cent
of the Agency's business cannot be conducted over the
telephone but must be conducted in personal conferences.
For example: Considering time is transit, a minimum of
one hour is necessary for an individual located in the
Potomac park area to conduct one-half hour's business
with an individual located in the Administration
Building.
b. During F1sca1 Year 195+ six Agency shuttle busses and
twenty passenger vehicles transported more than 500,000
passengers in the conduct of Agency busines8. An esti-
mated ninety-five per cent of the time lost in transit
would be saved if the entire Agency were quartered in
one building.
c. Timeliness in intelligence is of paramount importance.
Meaningful reports can, in many instances, only be made
after consulting central files and library facilities
which it is impossible to make easily accessible to in-
telligence analysts in our present dispersed situation.
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1 ~~.s~ ~ ~.~~
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d. The design and deteriorating condition of presently
assigned temporary buildings are prejudicial to good
management, efficiency, morale, and working conditions
in general.
Economy:
a. Tangible monetary annual savings as estimated below could
be expected from the consolidation of headquarters
activities in one building. It is also emphasized that
either the additional savings or additional productivity
to be expected from such consolidation are not included
in these estimates.
Item
Guard Service
Reception Staff
Shuttle Service
Couriers & Messengers
Telephone Mileage
Building Services
Officers
Maintenance &
Alterations
Loss of Time
TWX Service
TOTALS
Est.Cost in Est. Bavings
Present Cost One Building in One Bldg.
2. Considerations inherent in the situation outlined above have
long indicated the high desirability of providing headquarters space
for the Central Intelligence Agency in one permanent building. This
matter is now acute because of recent Congressional approval for the
construction of a new highway bridge across the Potomac River which
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would result in the removal of several of the temporary structures
to which CIA is sow assigned. In addition, there are concerted efforts
to cause the removal of the remaining temporary buildings assigned to
this Agency in the west Potomac Park area. It is our understanding
that the Secretary of the Interior has in fact been charged with the
removal of these temporary structures at the earliest possible date.
Inasmuch as the General Services Administration has indicated that
there is no other space available for assignment to this Agency
new construction appears to be absolutely essential.
3. Permanent enabling legislation has been granted by the Congress
for the construction of a new CIA headquarters building in the amount
of Funds, however, have not been appropriated for this
purpose. Conferences with the General Services Administration and the
Bureau of the Budget indicate that such new construction could be under-
taken either through .the use of appropriated funds or a lease-purchase
arrangement.
4. It is essential that the Director be immediately available to
the President an h a unity Council. There are also an
estimated CIA's senior staff who must be in
close daily contact with personnel of other agencies, particularly
the Departments of State and Defense, and who must also be immediately
available to the Director as well as to those components of the Agency
under their supervision and upon which they are dependent for support.
The necessity for such close and expeditious coordination within the
Central Intelligence Agency and the Intelligence Community dictates
that the entire Agency be at one location not more than a few miles
distant from the White House.
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J
uestion
~v~.~~ ~{l~~
CENTRAL TAiTELLIGENCE AGENCY
anion - ~f20/~~
Should the position of Director and Deputy Director of
Central Inte113.gence be reallocated in the official governmental
structure as established by the Executive Pay Act of 19.9 (P. L.
3~9 - 81st Cong.}?
Stud
1. The respective Committees of the Hours and Senate on Post
Office and Civil Service for two years studied the qu?stion of s.de~?
quate pay rates for heads and assistant heads of departments. and
agencies of the government. Conferences were held, and the sub3ect
was debated on the floor of each House. Finally, in October 19}9,
the Conference Report on H.R. 1689 was agreed to, by both bodies, as
representing their best judgment in the matter, and on Qctober l~,
1919, it was approved and became Public Law 35~ - 81st Congress.
2. A heated discussion waa held on the floor of the Senate as
to the relative values of the services of the Director, Federal Bureau
of Investigation and the Director, Central Intelligence; the former
being acknowledged of bureau level and the latter as head of an inde-
pendent agency. In the final action (Sec. !~}, however, they were
rated on the same plane 016,000} along withs
Assistant Comptroller General of the United States
Assistant Director, Bureau of Budget
Deputy Adm~niatrator, Veterans Administration
Federal Mediation and Conciliation Director
Chairman, Civil Service Commission
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Chairman of the Board of Directors, Bxport-Import Bank
Chairman of the Board of Directors, Reconstruction
' Finance Corporatian
Chairman, U. S. Maritime Commission
Members, Council of Economic Advisers
Members, Board of Governors, Fed?ral Reserve Bank
Members, Board of Directors, F?deral Deposit
Insurance Corporation r `
3. The Deputy Director, Central Intelligence (Sec. 6(a} was
rated (].~., 000) with:
the Housing Expediter
the Director, Bureau of Federal Supply
the Director, Selective Service
Members, Diaplaeed Persona Commission
Members, Indian Claims Commission
Members, War Claims Commission
Members, Philippine War Damage Commission
Associate Federal Mediation and Conciliation Director
Director, Bureau of Prisons
Commissioner, United States Court of Claims
and many others
~.. This same Act (Sec. 1} rates the head of each executive
department and the Secretary of Defense equal7.y (~22~500}, the Deputy
Secretary of Defense separately 020,000), and the secretaries of the
three armed services ?qually with each other (i~l$,000}.
~. Each Under Secretary of an executive department, the Deputy
Postmaster General, the Assistant to the Attorney General, Solicitor
General, Comptroller General and others (Sec. 3} are placed on the same
1?ve1 with each other (~17~500},
6. F,ach Assistant Secretary of an executive department {including
the Deputy Under Secretary of State}, each Assistant Attorney General,
Assistant Solicitor General, and others are rated on the same level with
each other 015,000},
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7. Reorganization Plan No. 3 of 1953 rates the Director
of the Office of Defense Mobilization with the heads of executive
departments (22,500), and his Deputy along with the secretaries
of executive departments (~17~500~. Reorganization Flan No. b of
19,3 provides for six additional Assistant Secretaries of Defens?
and a General Counsel, each of whom "shall receive eorapensation at
the rate prescribed by law for assist ant secretaries of executive
d?partmenta'! (15,000}.
8. The Atomic ~ergy Act of 1951 (P. L. 703, 83rd Cong.)
(Sec. 22(a) rates the members of the Commtssion# other than the t
Chairman, in the X18,000 class, and the Chairman in the X20,000
class, the latter being comparable in that respect to the IInder
S?cretary of Defense.
9. The fact that the Director, Central Tntelli.gence is head
of an independent agency tends to ~uatify a reallocation of his
position and that of his Deputy. Agencies differ j.n size, structure
~~ 4: kL./ ~.v y. t ~".
and responsibility, and it do?s nat necessarily follow that because
h
one is head of a particular agency he must be ranked exactly equal
with heads of other agencies or on a plane with positions in the
executive departments.
10. The Director, Central Intelligence, within hir organization,
administers the Centre]. Intelligence Agency which collects, evaluates
and disseminates intelligence. Hy law, he is also required to reach
ou-~ from his agency to (1) advis? the National Security Council concern-
ing matters of intelligence relating. to the national security; (2)
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recommend to N5C for the coordination of such intelligence activities
of the governmental departments and agencies as relate to the national
security; and (3) perform such other duties as NSC assigns.
11. These duties, on the one hand, place the Director, Central
Tritelligence in a position comparable to that of the heads of other
intelligence offices or bureaus; and, on the other, make him an advisor,
similar to the Council of Economic Advisor. A study of Sob descriptions
and responsibilities found in Appendix B to House Report No. X35, dated
May 9, 19t~9 (to accompany H.R. 1689 - now F. L. 359 - 81st Congress),
does not appear to warrant a reallocation of the position of Director
or Deputy Director of Central. Intelligence in the official governmental
structure. In any event, his responsibilities would not appear to exceed
those of the Secretaries of the Armed Services, and they appear to be
Well placed by Congress at this time, between Under Secretaries and
Assistant Secretaries of Departments.- When CTA has proven its value
to N5C will be time enough to make reallocations,
12. Additional study of this problem should be made from the
standpoint of (1} responsibility for administration and management
based on personnel, production, efficiency and costs of operation; and
{2) value of position to NSC and the President.
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E3nion - 1/21/5
CIIJTRAL INTELLIGENCE AGENCY
uQstion
Is there a present need for six statutory positions in CIA
subordinate to the Director and Deputy Director and to be headed by
additional Deputy Directors?
Study
1. The suggestion has been made that six positions be authorized
for CIA by statute and allocated to six positions now designateds
a. Deputy Director for Plan$
b. Deputy Director for Intelligence
c. Deputy Director for Adminf.stration
d. Special Assistant for Plans and Coordination
e. Inspector Genera].
f. General Counsel
2. From i91~T to 1953, CIA was operated by a Director. In 1953, a
Deputy Director was provided by statute. In 1955, the above idea is
conceived. Where will it end?
3. Tt is suggested that these statutory additions be patterned after
the Atomic Ea~.ergy Act of 1954. This Act did add several divisions, to
bring the tot al divisions within the Atomic Energy Commission to eleven,
and also provided for a General Counsel and an Inspection Division (under
a Director). House Report No. X181 (7/12/54) submitted by Han. Sterling
Cole of the Joint Committee on Atomic Energy (to accompany H.R. 9757) at
page 13, explains that the 'General Counsel. is recognized as meriting
statutory recognition, especially in view of the many new complex legal
problems entering the program with the many new licensing and regulatory
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provisions in the Bill;' and that an Inspection Division has been
established to gather