INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1982

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89M00610R000100010018-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 17
• Document Creation Date: December 20, 2016
• Document Release Date: March 2, 2007
• Sequence Number: 18
• Publication Date: May 19, 1981
• Content Type: REGULATION

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i~ fltr0~9 Caw;
? 97TH CONGRESS HOUSE OF REPRESENTATIVES J RErr. 97-
1st Session 101 Part 1
/~iQSGL
INTELLIGENCE AUTHORIZATION ACT
FOR FISCAL YEAR 1982
Mr. BOLAND, from the Permanent Select Committee on Intelligence,
submitted the following
REPORT
?
The Permanent Select Committee on Intelligence, to whom was re-
ferred the bill (H.R. 3454) to authorize appropriations for fiscal year
1982 for the intelligence and intelligence-related activities of the
United States Government, for the Intelligence Community Staff,
and for the Central Intelligence Agency Retirement and Disability
System, to authorize supplemental appropriations for fiscal year 1981
for the intelligence and intelligence-related activities of the United
States Government, and for other purposes, having considered the
same, report favorably thereon and recommend that the bill do pass.
This bill would :
(1) Authorize appropriations for fiscal year 1982 for (a) intelli-
gence and intelligence-related activities of the U.S. Government, (b)
the Intelligence Community Staff, and (c) the Central Intelligence
Agency Retirement and Disability System;
(2) Authorize the personnel ceilings on September 3, 1982 for (a)
intelligence and intelligence-related activities, and (b) the Intelli-
gence Community Staff ;
(3) Authorize supplemental appropriations for fiscal year 1981
for intelligence and intelligence-related activities -of the' U.S.
Government
(4) Provide authority to the Director of Central Intelligence to pay
members of advisory committees at a rate not to exceed the daily
equivalent of the rate of pav in effect for grade GS-18;
(5) Provide authority to the Director of Central Intelligence and
the Director of the National Security Agency to pay benefits and
allowances to certain intelligence personnel comparable to those pro-
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vided to the Foreign Service or where necessary to meet the require-0
ments of officially authorized travel. personnel "and physical security
activities, operational activities and cover-related activities. and to pay
travel expenses of intelligence personnel in order to reflect intelligence
requirements not taken into account in the formulation of government-
wide travel procedures;
(6) Provide authority to the Director of the National Security
Agency to offer language training and incentives to crvptologic
employees and to establish a crvptologic linguist reserve program;
(7) Provide authority to the Director of the National Security
Agency to make grants for crvptolonic research ;
(8) Provides that funds snecifcally annropriated to frovernment
agencies for the purchase by the National Security Agency of crypto-
logic equipment will be available for three fiscal years.
OVERALL SUMMARY OF COMMITTEE ACTION
[in millions of dollars]
Fiscal year Committee
Fiscal year 1982 budget Committee recommended
1981 request recommends change
Intelligence activities----------------------------------------------------------------------------------------
Intelligence community staff-- ----------------------- 18.3 15.4 13.6 -1.8
CIARDS------------------------------------------- 55.3 84.6 84.6 --------------
OVERALL PERSPECTIVE ON THE INTELLIGENCE BUDGET
Convnvittee intent
The committee has considered several times the question of public
disclosure of various intelligence budget figures and has concluded
that disclosure is not in the public interest. By itself, a single intelli-
gence budget total would probably not harm intelligence activities or
capabilities. Such a number, however, would he meaningless in a
vacuum. It is unclear what number would be used : the total National
Foreign Intelligence Program? Tactical Intelligence and Related
Activities? Authorization? Appropriation?" In any case, the descrip
tion which would be necessary to make the budget figure comnrehensi-
ble would itself be highly sensitive. It is in this context that the
committee fears that budget disclosure can be harmful and inconsistent
with the primary purpose of secrecy in intelligence matters.
Intelligence activities and capabilities are inherently fragile. Unlike
weapons systems. which can be countered only by the develonment of
even more sophisticated systems developed over a long neriod, intelli-
gence systems are subiect to immediate compromise. Often they can
be countered or frustrated rapidly simply on the basis of knowledge.
of their existence. Thug budget disclosure might well mean more to
this country's adversaries than to any of its citizens. Further, this
information could then be used to frustrate United States intelligence
missions.
The committee, recognizes that the best ar' ument in favor of budget
disclosure is public accountability. Because it feels strongly, however.
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? that the public does not wish congressional oversight to frustrate
legitimate intelligence activities, but rather to guarante their proper
course, the committee continues to believe that disclosure of any intelli-
gence budget information is not in the public interest. The committee
has and will continue to make a consistent effort to conduct its over-
sight and legislative proceedings in public in order to provide the
public with the assurance that intelligence activities are receiving
appropriate congressional scrutiny.
The classified Schedule of Authorizations and the detailed explana-
tion found in the annex to this public report contain a thorough dis-
cussion of all budget issues considered by the committee and are
available to all Members of the House. The Schedule of Authoriza-
tions lists the amounts of dollars and personnel ceilings for all the
intelligence and intelligence-related programs authorized by the bill.
These are directly incorporated into, and are integral to, the bill itself.
It is the intent of the committee that all intelligence programs discussed
in the annex to this report be conducted in accordance with the guid-
ance and limitations contained therein.
Scope of committee review
The National Foreign Intelligence Program budget consists of
resources of the following departments, agencies and other elements
of the Government: (1) the Central Intelligence Agency; (2) the
Department of Defense; (3) the Defense Intelligence Agency; (4)
the National Security Agency; (5) the Departments of the Army,
Navy and Air Force; (6) the Department of State; (7) the Depart-
ment of Treasury; (8) the Department of Energy; (9) the Federal
Bureau of Investigation; (10) the Drug Enforcement Administration;
and (11) the Intelligence Community Staff of the Director of Central
Intelligence. The Denartment of Defense Tactical Intelligence and
Related Activties (TIARA) are a diverse array of reconnaissance,
surveillance and target acquisition programs which are a functional
part of the. basic force structure and provide direct information sup-
port to military operations. TIARA, as defined by the Joint Chiefs
of Staff and Denartment of Defense, include those activities outside
the defense intelligence program which respond to operational com-
mand tasking for time sensitive information as well as to national
command, control and intelligence requirements. These military intel-
ligence activities also fall within the jurisdiction of the Committee on
Armed Services. Pursuant to their shared iuri~zdiction. both commit-
tees have agreed to the amounts authorized for TIARA programs.
Beginning in mid-February 1981, the Program and Budget Author-
i.zation Subcommittee conducted a series of hearings which ran through
March. The budget hearings involved a total of more than 40 hours
of testimony with witnesses from each maior intelligence and
intelligence-related program. These budget hearings resulted in addi-
tional written responses to several hundred questions.
OVERALL COMMITTEE FINDINGS AND RECOMMENDATIONS
The administration requested a substantial increase for fiscal year
1982 over the amount Congress appropriated for intelligence in fiscal
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year 1981. In part the increase resulted from inflation, in part from
the need to procure new types of equipment to provide better intel-
ligence support to combat unts, in part to improve or upgrade existing
intelligence systems and in part to initiate new systems. The committee
is convinced that U.S. intelligence agencies are performing a vital
service for the national securty. However, the committee also finds
certain shortcomings in the management and conduct of certain of the
nation's intelligence activities. Recommendations for making improve-
ments in these areas are contained in the classified annex to this report
and the committee will be pursuing these and other related issues fur-
ther during the coming months. In general, the committee supports the
level of effort requested by the President in his budget.
The committee was not convinced, however, that the total amount
requested for fiscal year 1982 was fully warranted. Therefore, the
committee has recommended deferral of certain proposals and the
deletion of others, while a few items were increased. The overall im-
pact of the recommendation is a reduction in the request. In the com-
mittee's view the recommended authorization for the intelligence and
intelligence-related activities in this bill represents a reasonable bal-
ance between needed capabilities and prudent cost.
TITLE I-INTELLIGENCE AND INTELLIGENCE-RELATED ACTIVITIES
Section 101 lists the departments and agencies for whose intelligence
and intelligence-related activities the bill authorizes appropriations
for fiscal year 1981.
Section 102 makes clear that, with the exception of section 105, de-
tails of the committee's recommendations with respect to the amounts
to be appropriated for intelligence and intelligence-related activities
and personnel ceilings covered under this title for fiscal year 1982 are
contained in a classified Schedule of Authorizations to the bill and the
classified annex to this report. The Schedule of Authorizations is
incorporated into H.R. 3454 by this section.
Section 103 provides that each individual ceiling (i.e., line item)
established specifically in the Schedule of Authorizations will be a
limitation on obligation and expenditure and not simply a recommen-
dation and ceiling for appropriations. The section requires that funds
obtained from any source, whether direct appropriations, transfer,
reprograming, etc., not be obligated in excess of the Schedule except
by notification. The section is not intended to alter existing arrange-
ments with the Administration worked out over many years by the
Committees on Armed Services and Annronriations regarding noti-
fication for prior approval, dollar thresholds by appropriation cate-
gory. etc. These arrangements have been adhered to by the Admin-
istration and the. Permanent Select Committee on Intelligence for
intelligence matters and will continue to be. The purpose of section 103
is to allow for reprograming and transfer actions which exceed one
or more individual authorization ceilings without creating the need
for supplemental authorization but, at the same time, assuring that
such actions are made with the involvement and approval of the over-
sight and appropriations committees.
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Section 104 makes clear that, with the exception of specific legisla-
tive authorities in title II and V, the committee only intends to au-
thorize appropriations for fiscal year 1982. H.R. 3454 does not other-
wise authorize intelligence and intelligence-related activties. Author-
ity for any such activities must be derived from other legal or
constitutional sources.
Section 105 authorizes appropriations of $11,900,000 for the counter-
terrorism program of the Federal Bureau of Investigation.
?
TITLE II-INTELLIGENCE COMMUNITY STAFF (ICS)
Autlwrization request
Sections 201 and 202 authorize appropriations, personnel end
strength, and certain administrative authorities for the Intelligence
Community Staff (ICS), which provides the Director of Central In-
telligence (DCI) with staff assistance to carry out his intelligence
community responsibilities. The staff supports the DCI in the execu-
tion of his responsibilities to develop, review and approve the national
foreign intelligence program budget, to evaluate the performance of
foreign intelligence activities, and to develop issues, goals and other
required guidance for the intelligence community. The Intelligence
Community Staff is composed of a permanent cadre, detailed com-
munitv personnel and contract hirees. The fiscal year 1982 request for
the IC Staff was $15.4 million and 245 positions.
Committee recommendation
In section 201, the committee recommends an appropriation in the
amount of 1413.6 million for the intelligence community staff in fiscal
year 1982. This is a reduction of $1.8 million from the fiscal year 1982
budget request.
In section 202(a). the committee recommends a personnel strength
not exceeding 220 full-time employees as of September 30, 1981. This
is 25 positions less than the number which the administration has
requested.
Fiscal year Recommended
1982 request action
Authori-
zation
External research contracts----------------------------------------
3.1
-0.8
2.3
Reorganization----------------------------------------------------
9.9
-1.0
8.9
Remaining ICS funding---------------------------------------------
2.4
--------------
2.4
Total ICS funding-------------------------------------------
15.4
-1.8
13.6
TotsiICS manpower-----------------------------------------
(245)
(-25)
(220)
Committee recommended changes
The committee's actions with respect to the Intelligence Community
Staff fall in two categories, External Research and Analysis Contracts
and ICS Reorganization.
External Research and, Analysis C, ontracts, -$0.8 M
The Intelligence Community Staff External Research and Analysis
Projects request for $3.1 million has increased over the past three
years. In view of the ICS' large permanent cadre of senior personnel,
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the Committee questioned the increasing resources (65% over the fiscal
year 1981 appropriated amount) for contractor assistance. The ma-
jority of these external assistance contracts will either directly or in-
directly provide additional analytical manpower. The Committee was
not persuaded that such a growth in external contracts was justified
and recommends a $0.8 million reduction to the fiscal year 1982 request.
Reorganization (- 25 manpower spaces), - $1.0 M
With the promulgation of Executive. Order 12036 in the spring of
1978, the Intelligence Community Staff (ICS) was established to
provide management support to the Director of Central Intelligence
(DCI). It was comprised at the time of the "Resource Management
Staff" and the "Collection Tasking Staff" and a total of 245 full time
positions was approved by the Congress.
In early March 1981 the DCI directed a reorganization and consoli-
dation of the ICS activities. This reorganization is currently under-
way. In response to a question regarding the resource impact of the re-
organization, the ICS stated "that any potential savings developed
through consolidation are expected to be offset by additional func-
tions."
The committee believes that savings will accrue from the consolida-
tion. Moreover, the ICS' "on board" strength has not exceeded 225 for
the past four years.
The committee recommends a reduction of 25 positions and $1.0
million in funding.
The Intelligence Community Staff is now made up of personnel who
are permanent employees of the Staff and others who are detailed
for several years from various intelligence elements. The purpose of
section 202(b) is to authorize this staff approach and to require that
detailed employees represent all appropriate elements of the Govern-
ment, including those engaged in intelligence-related activities, whose
representation on the Intelligence Community Staff has been inade-
quate in the past.
Section 202 (c) requires that personnel be detailed on a reimbursable
basis except for temporary situations. The Staff's authorized size, in
the opinion of the committee, is sufficient for the duties which the
Staff performs. This provision is intended to ensure that its ranks are
not swelled by nonreimbursable detailees.
Section 203 provides the Director of Central Intelligence with au-
thority to manage the activities and to pay the personnel of the Intel-
ligence Community Staff because the Staff is not otherwise authorized
in law. However, it is the committee's intent that in the case of de-
tailed personnel, the DCI's authority to discharge personnel shall only
extend to discharging detailed personnel from service at the Intelli-
gence Community Staff and not from federal employment or military
service.
TITLE ITT-CENTRAL INTELLIGENCE AGENCY RETIREMENT AND
DISABILITY SYSTEM
Millions
Central Intelligence Agency request----------------------------------- $84.6
Committee recommended change--------------------------------------- -----
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Authorization request
Section 301 authorizes appropriations in the amount of $84,600.000
during fiscal year 1982. The CIA Retirement Act of 1964 for Certain
Employees (Public Law. 88-643) authorized the establishment of
CIARDS for a limited number of Agency employees and authorized
the establishment. and maintenance of a -fund from which benefits
would be paid to qualified beneficiaries.
The requested CIARDS funds will finance :
(1) Interest on the unfunded liability;
(2) Cost of annuities attributable to credit allowed for military
service ;
(3) Normal cost of benefits not met by employee and employer
contributions;
(4) The increase is unfunded liability resulting from liberalized
benefits and Federal pay raises.
The benefits structure of CIARDS is essentially the same as for the
Civil Service Retirement System with only minor exceptions. These
exceptions are: (a) annuities are based upon a straight 2 percent of
high 3-year average salary for each year of service, not exceeding 35;
(b) under stipulated conditions a participant may retire with the con-
sent of the Director, or at his direction be retired at age 50 with 20
years of service, or a participant with 25 years of service may be re-
tired by the Director regardless of age; and (c) retirement is manda-
tory at. age 65 for personnel receiving compensation at the rate of
GS-18 or above, and at age 60 for personnel receiving compensation at
a rate less than GS-18, except that the Director may, in the public
interest, extend service up to 5 years.
Annuities to beneficiaries are provided exclusively from the
? CIARDS Fund maintained through: (a) contributions, currently at
the rate of 7 percent, deducted from basic salaries of participants
designated by the Director; (b) matching Agency (employer) contri-
butions from the appropriation from which salaries are paid, based
on the actual rate of contributions received from participants; (c)
transfers from the Civil Service Retirement and Disability Fund
representing employee and matching employer contributions for serv-
ice of Agency employees prior to the date of their participation in the
System, and contributions for service of integrated Agency employees
included in the System following termination of integrated status;
(d) income on investments in U.S. Government securities; and (e)
beginning with 1977, direct appropriations consistent with the pro-
visions of Public Law 94-552 (enacted October 17, 1976).
Committee recommendation
The committee recommends appropriation of $84,600,000 which is
the full amount requested for the CIA Retirement and Disability
Fund for fiscal year 1982.
Committee recommendation
Details of the committee's recommendations with respect to the
amounts to supplement fiscal year 1981 authorizations under this title
are contained in the classified Schedule of Authorizations to accom-
pany H.R. 3454 and the classified annex to this report.
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Section 501 (a) amends the provision of the National Security Act
of 1947 (Sec. 303 (a)) limiting to $50 the daily compensation paid
members of advisory committees appointed by the National Security
Council or the Director of Central Intelligence to establish a new
compensation ceiling at the rate of the daily equivalent of the pay of
a GS-18 government employee.
Section 501 (b) makes technical corrections to reflect the renumber-
ing of those sections of Title 18, U.S. Code cited in Section 303(b) of
the National Security Act of 1947.
Section 502 (a) amends the Central Intelligence Agency Act of 1949
to permit the' Director of Central Intelligence to pay benefits and
allowances. to CIA officers, employees, detailees and assignees com-
parable to those paid members of the Foreign Service. The effect of
this provision is to permit the Director to provide similar allowances
and benefits to CIA personnel abroad as those given to Foreign
Service officers and to subsequently modify those provisions consistent
with changes to the Foreign Service Act any other statute granting
benefits and allowances to the Foreign Service.
The subsection also permits the Director to pay other allowances
and benefits to CIA personnel in conection with certain specific aspects
of authorized intelligence activities-i.e., travel, personnel and physi-
cal. security, operations and cover. However, this relatively broad
grant of authority may be used only where the need for the allowances
or benefits arises from special aspects of one or more of the enumerated
intelligence activities. The benefit in question must be related directly
to one of these intelligence activities and must be required to perform
effectively that intelligence activity. The committee does not intend
that the special requirements of intelligence activities required by the ?
provision be so unique to those activities that no other government
employees can have been similarly affected, but conversely, the Direc-
tor's authority cannot be used to provide payments under this provi-
sion when the benefit is such that it meets a problem faced by signifi-
cant numbers of government employees outside intelligence work. The
committee will scrutinize this aspect of the provision to insure that
any imbalance of benefits that may develop among government per-
sonnel is the direct result of intelligence needs and does not stem
from similarly experienced problems among other groups of govern-
ment personnel.
The provision also makes clear that, when benefits related to the re-
location of CIA personnel are provided for moves within the United
States or moves which, in whole or in part. are treated as moves within
the United States, reimbursement of such moves may not exceed rates
established by statute for all government employees.
Lastly, the subsection permits the Director to establish travel regu-
lations for CIA officers, employees, detailees and assignees which
would permit payment of travel expenses inconsistent with govern-
mentwide travel procedures where the Director found that an excep-
tion to those general procedures was important to the performance
of intelligence functions. Thus, for instance, if the use of government
travel vouchers identifying the users as CIA personnel would be incon-
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sistent with the cover of a CIA officer or the conduct of an intelligence
mission, the Director could use this authority to provide appropriate
travel arrangements that do not have this effect. The committee at-
taches great importance to the finding that must be made by the
Director, because, as with all the provisions of this subsection, its con-
cern is to avoid authorizing special benefits for certain government
personnel for which there is not an important intelligence rationale.
All these new provisions of the subsection are subject to the condi-
tions that members of the Armed Services assigned to duty with the
CIA may not receive benefits under this subsection and those provided
to military personnel under Title 37, T7nited States Code. Absent this
reservation, members of the Armed Services could well receive two
kinds of travel benefits that could aggregate to more than those avail-
able to any other government employees. The committee wishes to
avoid this result and has provided that the Director and the Secretary
of Defense shall adopt joint regulations to receive this end. These
regulations should make a judicious choice between benefits so as to
provide the recipients with those benefits which best parallel those
received by other government employees-especially CIA personnel-
working under similar circumstances. This may result in some differ-
ences in benefits available in different geographic locations, but the
committee expects that these will be minimal.
In addition, all the authorities provided by the subsection must be
implemented by regulations. These regulations must be provided to
the committee and to its Senate counterpart for a reasonable period
prior to their going into force. A reasonable period in this context
would be 30 days except in those circumstances where the committees
and the Agency agree that a shorter period is appropriate in light of
the circumstances. Regulations are called for in order that such bene-
fits and allowances as are authorized by regulation be scrutinized to
determine the ways in which the broad authority recommended by the
committee will be employed.
Subsection 502(b) amends the National Security Agency Act of
1959 to permit the Director of the National Security Agency to adopt,
where appropriate, for a selected group of civilian and military cryp-
tologic personnel serving in circumstances similar to those in which
CTA personnel serve, the same benefits and allowances authorized for
CIA personnel under the provisions of subsection 502(a). Identical
limitations on the provision of dual benefits to military personnel and
a requirement for implementing, regulations also apply.
Section 503 amends the National Security Agency Act of 1959 to
provide the Director of the National Security Agency with authorities
to pay for and otherwise support language and language-related
training to NSA employees, and to do so in non-government institu-
tions when suitable training courses or instruction is unavailable
through government lang>ame training centers: to support non-
government programs furnishing such instruction when necessary
programs are not available at government language training centers;
and to hire or contract for necessary instructors or other language
experts as nPPCled. The Director is also authorized to offer incentives
to civilian NSA employees to maintain language skills not required
for their present employment or to acquire new languages.
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The Director can also offer similar incentives, as well as appropriate
training and related benefits and allowances, to retired NSA employees
or to other qualified individuals in order to establish a cryptologic
linguist reserve. The reserve is intended to provided a skill bank of
qualified linguists for use by NSA in circumstances where their talents
may be required on short notice. Section 503 specifically provides, how-
ever, that the Secretary of Defense must satisfy himself that the estab-
lishment of this reserve will not impair the effectiveness of those
cryptologic military reserve units which so ably serve a significant
portion of the Nation's cryptologic needs.
Lastly, the Director is authorized to provide language training to
family members of. a certain class of NSA employees who perform
representational duties overseas. This provision, which the committee
expects will be sparingly used because of the small numbers of such
employees, is directly related to the representational duties these
employees perform and parallels a similar provision of the Foreign
Service Act of 1980. Training provided pursuant to this authority
should be provided at government language centers unless appropriate
courses or instruction are unavailable or impractical due to schedule
or distance or unless the family member is already abroad.
In providing training or benefits and allowances related to that
training to employees or to members of the cryptologic linguist re-
serve, the Director may require agreements from recipients to remain
available for service for appropriate times or to recover sums paid to
recipients where the agreements are broken. These authorities are to
parallel those provided by the Training Act (5 U.S.C. 4108), but the
Director is otherwise empowered to waive such other provisions of
the Act when he finds it important to the performance of cryptologic
functions.
The authorities provided by Section 503, like those in Section 502,
must be implemented by regulations provided to the intelligence com-
mittees prior to their going into force. Further, appropriations neces-
sary to carry out the provisions of Section 503 must be represented
(consistent with existing security procedures) in a line item in the
relevant appropriation act. The cost of those language training pro-
grams funded through the authority of Section 503 will be a matter
of interest to the committee, particularly as the incentive programs
and the cryptologic linguist reserve are fully developed.
Section 504 amends the National Security Agency Act to permit the
Director of the National Security Agency to make, under applicable
law, grants to private individuals and institutions for cryptologic
research. These grants are to be offered to fund unclassified research
of interest to NSA, although they may make provision for circum-
stances in which classifiable information is developed by the grantee.
They are not to be offered to supplant or otherwise discourage basic
research grants available from the National Science Foundation. The
provision further requires that expenditures for the grant program be
represented by a specific line item in the relevant appropriation act
and in a manner consistent with existing security procedures.
Section 505 amends the National Security Agency Act of 1959 to
provide that, when funds specifically appropriated to be transferred
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? by any department or agency outside of the Department of Defense to
NSA for the purpose of purchasing cryptologic equipment and related
materials or services, these funds shall remain available for three fiscal
years for this purpose. NSA is the central source of procurement with-
in the government for such materials and under present circumstances
must often delay purchase orders beyond the availability of funds
provided to non-Defense agencies in order to make economical pro-
curements of such equipment. The committee believes that if appro-
priated funds are clearly represented for such purpose that it serves
the public interest-and the public purse-to provide flexibility to
make economical purchases.
Section 506 provides authority for adjustments to federal employee
compensation and benefits increases during fiscal year 1982 which are
authorized by current or subsequently enacted law. It obviates the
necessity for a separate authorization for such increases during the
fiscal year.
Section 507 establishes the effective date of all the provisions of Title
V as October 1, 1981.
COMMITTEE POSITION
On May 7, 1981, the Permanent Select Committe on Intelligence, a
quorum being present, approved the bill with no change and ordered
it favorably reported by a vote of 9 yea, 0 nay.
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OVERSIGHT FINDINGS
With respect to clause 2 (1) (3) (A) of rule XI of the House of
Representatives, the committee has held extensive hearings regarding
the nature and conduct of the intelligence and intelligence-related
activities of the U.S. Government in preparing this legislation. This
review is outlined under the scope of the committee review section of
the report. A wide range of recommendations regarding intelligence
programs and their management has been included within the classi-
fied annex of this report.
FISCAL YEAR COST PROJECTIONS
With respect to clause 2(1) (3) (B) of rule XI of the House of
Representatives and section 308(a) of the Congressional Budget Act
of 1974, this legislation does not provide new budget authority or tax
expenditures. The committee has attempted pursuant to clause 7 (a) (1)
of rule XIII of the Rules of the House of Representatives to ascertain
the outlays which will occur in fiscal year 1982 and the 5 years follow-
ing if these amounts are appropriated. These estimates, which agree
with those made by the Intelligence Community Staff, are contained
in the classified annex. The committee's estimates are in accordance
with those of the executive branch.
With respect to clause 2 (1) (3) (C) of rule XI of the House of
Representatives, the committee has received no report from the Con-
gressional Budget Office.
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RECOMMENDATIONS OF THE COMMITTEE ON GOVERNMENT OPERATIONS
With respect to clause 2(1) (3) (D) of rule XI of the House of
Representatives, the committee has not received a report from the
Committee on Government Operations pertaining to the subject of
this bill.
INFLATION IMPACT STATEMENT
Pursuant to clause 2(1) (4) of rule XI of the House of Representa-
tives, the committee has attempted to determine the inflationary impact
of the bill.
The committee finds no adequate method to identify the inflationary
impact of the present legislation. Further, the bill does not provide
specific budget authority but rather authorizations for appropriation.
Hence, any inflationary impact would depend on the amounts actually
appropriated. Despite these limitations, the committee believes that the
legislation would not be inflationary in that the programs authorized
do not require materials, production capacity or other economic
resources which are in short supply.
CHANGES IN EXISTING LAW MADE BY THE BILL, As REPORTED
In compliance with clause 3 of rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill, as re-
ported, are shown as follows (existing law proposed to be omitted is
enclosed in black brackets, new matter is printed in italic, existing law
in which no changes is proposed is shown in roman) :
SECTION 303 OF THE NATIONAL SECURITY ACT'
OF 1947
SEC. 303. (a) The Director of the Office of Defense Mobilization,
the Director of Central Intelligence, and the National Security Coun-
cil, acting through its Executive Secretary, are authorized to appoint
such advisory committees and to employ, consistent with other pro-
visions of this Act; such part-time advisory personnel as they may
deem necessary in carrying out their respective functions and the func-
tions of agencies under their control. Persons holding other offices or
positions under the United States for which they receive compensation,
while serving as members of such committees, shall receive no addi-
tional compensation for such service. Other members of such com-
mittees and other part-time advisory personnel so employed may
serve without compensation or may receive compensation [at a rate
not to exceed $50 for each day of service] at a daily rate not to exceed
the daily equivalent of the rate of pay in effect for grade GS-18 of
the General Schedule established by section 533 of title 5, United
States Code, as determined by the appointing authority.
(b) Service of an individual as a member of any such advisory
committee, or in any other part-time capacity for a department or
agency hereunder, shall not be considered as service bringing such
individual within the provisions of section [281, 283, or 284 of Title
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18] 203, 205, or 207 of title 18, United States Code, unless the act of
such individual, which by such section is made unlawful when per-
formed by an individual referred to in such section, is with respect to
any particular matter which directly involves a department or agency
which such person is advising or in which such department or agency
is directly interested.
SECTION 4 OF THE CENTRAL INTELLIGENCE AGENCY
ACT OF 1949
TRAVEL, ALLOWANCES, AND RELATED EXPENSES
SEC. 4. (a) Under such regulations as the Director may prescribe,
the Agency, with respect to its officers and employees assigned to duty
stations outside the several States of the United States of America,
excluding Alaska and Hawaii, but including the District of Columbia,
shall-
(b) (1) The Director may pay to o fcers and employees of the
Agency, and to persons detailed or assigned to the Agency from other
agencies of the Government or from the Armed Forces, allowances and
benefits comparable to the allowances and benefits authorized to be paid
to members of the Foreign Service under chapter 9 of title I of the
Foreign Service Act of 1980 (22 U.S.C. 4081 et seq.) or any other pro-
vision of law.
(2) The Director may pay allowances and benefits related to offi-
cially authorized travel, personnel and physical security activities,
operational activities, and cover-related activities (whether or not such
allowances and benefits are otherwise authorized under this section or
? any other provision of law) when payment of such allowances and
benefits is necessary to meet the special requirements of work related
to such activities. Payment of allowances and benefits under this para-
graph shall be in accordance with regulations prescribed by the Direc-
tor. Rates for allowances and benefits under this paragraph may not
be set at rates in excess of those authorized by section 5724 and 5724a
of title 5, United States Code, when reimbursement is provided for re-
location attributable, in whole or in part, to relocation within the
United States.
(3) Notwithstanding any other provision of this section or any other
provision of law relating to the officially authorized travel of Govern-
ment employees, the Director, in order to reflect Agency requirements
not taken into account in the formulation of Government-wide travel
procedures, may by regulation authorize the travel of officers and em-
ployees of the Agency, and of persons detailed or assigned to the
Agency from other agencies of the Government or from the Armed
Forces who are engaged in the performance of intelligence functions,
and may provide .for payment for such travel,*in cases in which, in the
opinion of the Director, such travel is important to the performance of
intelligence functions.
(4) Members of the Armed Forces may not receive benefits under
both this section and title 37, United States Code, for the same purpose.
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The Director and Secretary of Defense shall prescribe joint regula-
tions to carry out the preceding sentence.
(5) Regulations issued pursuant to this subsection (and any changes
to such regulations) shall be submitted to the Permanent Select Com-
mittee on Intelligence of the House of Representatives and the Select
Committee on Intelligence of the Senate before such regulations (or
such changes) take effect.
NATIONAL SECURITY AGENCY ACT OF 1959
SEC. 9. (a)
(b) The Director of the National Security Agency, on behalf of the
Secretary of Defense, may provide to certain civilian and military
personnel of the Department of Defense who are assigned to special
cryptologic activities outside the United States and who are desig-
nated by the Secretary of Defense for the purposes of this subsection-
[(1) allowances and benefits comparable to those provided by
the Secretary of State to officers and employees of the Foreign
Service under paragraphs (1), (2), (7), (9), (10), and (11) of
section 911, and under sections 912, 914, 933, 941, 942, and 945, of
the Foreign Service Act of 1946 (22 U.S.C. 1136 (1), (2), (7),
(9), (10), (11), 1137, 1138a, 1148, 1156, 1157, 1160) ; and]
(1) allowances and benefits-
(A) comparable to those provided by the Secretary of
State to members of the Foreign Service under chapter 9 of
title I of the Foreign Service Act of 1980 (22 U.S.C. 4081
et seq.) or any other provision of law; and
(B) in the case of selected personnel serving in circum-
stances similar to those in which personnel of the Central
Intelligence Agency serve, comparable to those provided by
the Director of Central Intelligence to personnel of the
Central Intelligence Agency; and
* * * * * *
(d) Members of the Armed Forces may not receive benefits under
both subsection (b) (1) and title 37, United States Code, for the same
purpose. The Secretary of Defense shall prescribe such regulations
as may be necessary to carry out this subsection.
(e) Regulations issued pursuant to subsection (b) (1) (and any
changes to such regulations) shall be submitted to the Permanent
Select Committee on Intelligence of the House of Representatives and
the Select Committee on Intelligence of the Senate before such reg-
ulations (or such changes) take effect.
SEC. 10. (a) The Director of the National Security Aaency shall
arrange for, and shall prescribe regulations concerning; language and
language-related training programs for military and civilian cryp-
tologie personnel. In establish.ina programs under this section for
language and language-related trainina. the Dirertor-
(1) may provide for the training and instruction to be fur-
nished, including functional and geographic area specializations;
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(2) may arrange for training and instruction through other
Government agencies and, in any case in which appropriate
training or instruction is unavailable through Government facili-
ties, through nongovernmental facilities that furnish training
and instruction useful in the fields of language and foreign affairs;
(3) may support programs that furnish necessary language
and language-rela
p ted skills, including, in any case in which ap-
proriate prog rams are unavailable at Government fac ilities, sup-
port through contracts, grants, or cooperation with nongovern-
mental educational institutions; and
(4) may obtain by appointment or contract the services of
individuals to serve as language instructors, linguists, or special
language project personnel.
(b) (1) In order to maintain necessary capability in foreign lan-
guage skills and related abilities needed by the National Security
Agency, the Director, without regard to subchapter IV of chapter 55
of title 5, United States Code, may provide special monetary or other
incentives to encourage civilian cryptologic personnel of the Agency
to acquire or retain proficiency in foreign languages or special related
abilities needed by the Agency.
(2) In order to provide linguistic training and support for civilian
cryptologic personnel, the Director-
(A) may pay all or part of the tuition and other expenses
related to the training of personnel who are assigned or detailed
for language and language-related training, orientation, or in-
struction; and
(B) may pay benefits and allowances in accordance with chap-
ters 57 and 59 of title 5, United States Code, to such personnel
? who are assigned to training at sites away from their designated
duty station.
(c) (1) To the extent not inconsistent, in the opinion of the Secretary
of Defense, with the operation of military cryptologic reserve units
and in order to maintain necessary capability in foreign language
skills and related abilities needed by the National Security Agency,
the Director may establish a cryptologic linguist reserve. The crypto-
logic linguist reserve may consist of former or retired civilian or mili-
tary cryptologic personnel of the National Security Agency and of
other qualified individuals, as determined by the Director of the
Agency. Each member of the cryptologic linguist reserve shall agree
that, during any period of emergency (as determined by the Director),
the member shall return to active civilian status with the National
Security Agency and shall perform such linguistic or linguistic-
related duties as the Director may assign.
(2) In order to attract individuals to become members of the crypto
logic linguist reserve, the Director, without regard to subchapter IV
of chapter 55 of title 5, United States Code, may provide special
monetary incentives to individuals eligible to become members of the
reserve who agree. to become members of the cryptologic linguist re-
serve and to acauire or retain proficiency in foreign languages or spe-
cial related abilities.
(3) In order to provide training and support for members of the
cryptologic linguist reserve, the Director-
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(A) may pay all or part of the tuition and other expenses re-
lated ?
to the training of individuals in the cryptologic linguist
reserve who are assigned or detailed for language and language-
related training, orientation, or instruction; and
(B) may pay benefits and allowances in accordance with chap-
ters 57 and 50 of title 5, United States Code, to individuals in the
cryptologic linguist reserve who are assigned to training at sites
away from their homes or regular places of business.
(d) (1) The Director, before providing training under this section
to any individual, may obtain an agreement with that individual that-
(A) in the case of current emvloyees, pertains to continuation
of service of the employee, and repayment of the expenses of
such training for failure to fulfill the agreement, consistent with
the provisions of section 4108 of title.5, United States Code; and
(B) in the case of individuals accepted for membership in the
cryptologic linguist reserve, pertains to return to service when
requested, and repayment of the expenses of such training for
failure to full fill the agreement, consistent with the provisions of
section 4108 of title 5, United States Code.
(2) The Director, under regulations prescribed under this section,
may waive, in whole or in part, a right of recovery under an agree-
ment made under this subsection if it is shown that the recovery would
be against eauity and good conscience or against the public interest.
(e) (1) Subject to paragraph (2), the Director may provide to
family members of military and civilian cryptologie personnel as-
signed overseas to representational duties, in anticipation of the as-
signment of such personnel abroad or while abroad, appropriate
orientation and language training.
(2) Language training under paragraph (1) may not be provided
to any individual through payment of the expenses of tuition or other ?
cost of instruction at a non government educational institution unless
appropriate instruction is not available at a Government facility in
the United States or, if such individual is already abroad, unless such
instruction is directly related to the assignment abroad.
(f) The Director may waive the applicability of any provision of
chapter 41 of title 5. United States Code, to any provision of this sec-
tion if he finds that such waiver is important to the performance of
cryptologic functions.
(g) The authority of the Director to enter into contracts or to make
grants under this section is effective for any fiscal year only to the ex-
tent specifically provided in appropriation Acts.
(h) Regulations issued pursuant to this section (and any changes to
such regulations) shall be submitted to the Permanent Select Commit-
tee on Intelligence of the House of Representatives and the Select
Committee on Intelligence of the Senate before such regulations (or
such changes) take effect.
[SEC. 10.3 (i) The Director of the National Security Agency, on
behalf of the Secretary of Defense, may, without regard to section 4109
(a) (2) (B) of title 5,'United States Code, pay travel, transportation,
storage, and subsistence expenses under chapter 57 of such title to
civilian and military personnel of the Department of Defense who are
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assigned to duty outside the United States for a period of one year or
longer which involves cryptologic training, language training, or re-
lated disciplines.
SEC. 12. (a) The Director of the National Security Agency may
make grants to private individuals and institutions for the conduct of
cryptologic research. An application for a grant under this section
may not be approved unless the Director determines that the award of
the grant would be clearly consistent with the national security.
(b) The grant program established by subsection (a) shall be con-
ducted in accordance with the Federal Grant and Cooperative Agree-
ment Act of 1977 (41 U.S.C. 501 et seq.) to the extent that such Act is
consistent with and in accordance with section 6 of this Act.
(c) The authority of the Director to make grants under this section
is effective for any fiscal year only to the extent specifically provided
in appropriation Acts.
SEc. 13. Funds appropriated to any entity of the Federal Govern-
ment other than an element of the Department of Defense that have
been specifically appropriated for the purchase of cryptologic equip-
ment, materials, or services with respect to which the National Secu-
rity Agency has been designated as the central source of procurement
for the Government shall remain available for a period of three fiscal
years.
O
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