LETTER TO JAMES C. MILLER, III FROM WILLIAM J. CASEY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01390R000901130025-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 27, 2016
• Document Release Date: January 8, 2013
• Sequence Number: 25
• Publication Date: October 7, 1986
• Content Type: LETTER

ILLEGIB
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Cat al Arncy
VashinponDC20505
The Honorable James C. Miller, III
Director
Office of Management and Budget
Washington, D.C. 20503
Dear Mr. Miller:
OCA fitte
RECPT #
7 October 1986
OCA 86-3380
This is in response to your request for the views of the Director of
Central Intelligence on enrolled bill H.R. 4759, the Intelligence
Authorization Act of Fiscal Year 1987. I recommend Presidential approval of
this legislation.
The provisions of this legislation which authorize appropriations of funds
for the conduct of intelligence and intelligence-related activities represent
the joint efforts of the House and Senate Intelligence and Armed Services
Committees, and the departments and agencies of the Intelligence Cbmmunity to
assure proper funding for such activities. While the funding contained in the
authorization bill is significantly less than requested, members of the
Intelligence Community will do everything possible to meet the complex and
diverse challenges that we face within the funding constraints imposed by
Congress.
We were pleased to see included in the bill many of the legislative
initiatives contained in the draft Administration intelligence authorization
bill previously sent to Congress. These are: Section 401 (FBI Access to
State and Local Criminal Records for Security Purposes); Section 403
(Extension of DOD Authority to Use Proceeds from Counterintelligence
Operations); Section 404 (FBI Access to Financial Records of Agents of Foreign
Powers); Section 501 (DIA Civilian Medical Evacuation Benefits); Section 502
((ne-Year Extension of DIA Termination Authority); and Section 601 (Defense
Mapping Agency Exchange Agreements). We, of course, support these provisions.
Several congressionally-initiated items that we support are also included
in the bill. Specifically, we support Section 302 (Benefits for Certain
Former Spouses of CIA Employees); Section 303 (Health Benefits for Certain
Former Spouses of CIA Employees); Section 401 (Counterintelligence Official
Reception and Representation Expenses); Section 503 (Acceptance of DCI Awards
by Military Intelligence Personnel); Section 504 (Management of Civilian
Intelligence Personnel of the Military Departments); Section 505 (NSA
Acquisition of Critical Skills); Section 506 (CIA Acquisition of Critical
Skills); and Section 603 (Covert Agent Disclosure Federal Pension
Forfeiture).
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STAT
STAT
Title VII of the Intelligence Authorization bill contains provisions to
restrict the presence of the Soviet Union and other nations whose intelligence
activities within the United States are contrary to our national interest.
The Agency defers to the Department of State and the Department of Justice on
these provisions.
The bill also contains several provisions which we cannot affirmatively
support, but which are not objectionable. Specifically, Section 106 of the
bill restricting support for military and paramilitary operations in Nicaragua
is not needed to restrict the use of the Contingency for Reserve OT
reprcgrammings to finance the contras, since we have already pledged not to
use money obtained from these sources without obtaining the approval of the
appropriate congressional committees. However, the provision is not
objectionable because it would allow the expenditure of the $100 million
approved by the House and Senate for aid to the contras.
Also included in the bill are two provisions which the Agency finds
objectionable but which, in our view, should not prevent Presidential approval
of the bill. Section 507 of the bill requires the Director and the Secretary
of Defense to jointly issue a one-time unclassified report describing the
civilian personnel systems for officers and employees of the CIA, NSA, DIA and
civilian intelligence personnel of the military departments. I objected to
this provision in a letter to the Conferees on the Intelligence Authorization
bill because the report would be made available to two Committees (Senate
Governmental Affairs and abuse Post Office and Civil Service) that do not
exercise oversight responsibilities for the Intelligence Community. Although
the bill as finally approved states that the report is to be made available to
"the Congress", I understand that we may have to make the report available to
the two above-mentioned Committees. Therefore, this provision is still
objectionable.
Section 602 of the bill requiring congressional notification of a transfer
of defense articles and services in excess of $1 million is also
objectionable. This provision would make permanent what was originally
enacted as part of the Fiscal Year 1986 Intelligence Authorization Bill to
cover just Fiscal Year 1986. In a letter to the Conferees on the bill, I
stated that the provision is unnecessary and inappropriate. Instead, I
strongly believe that details regarding the scope of notification to the
oversight committees should be governed by agreements between the committees
and the Agency which afford the necessary flexibility not found in
legislation. I had hoped to negotiate with the HPSCI an agreement governing
notification on covert action activities conducted pursuant to approved covert
action programs. Such an agreement currently exists with the SSCI, and a
similar agreement with the HPSCI would have made Section 602 of the bill
unnecessary. Because negotiations on an agreement with the HPSCI have been
under way for well over two years with final resolution yet to be reached,
HPSCI insisted on the enactment of this provision. However, we have been
informed that HPSCI would consider repealing the provision if an agreement
were later reached with the Agency.
2
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Despite my reservations concerning Sections 507 and 602 of the bill, I
believe that on the whole this legislation represents a positive step forward
toward improving our foreign intelligence and counterintelligence
capabilities. I thus recommend approval of this legislation and have enclosed
a short signing statement for the President's use.
Sincere y,
Willia4ip. Casey
Director of Cie re Intelligence
Enclosure
Distribution:
Original - Addressee
1 - EXecutive Registry
1 - DCI
1 - DDCI
1 - EXDIR
1 - 0/COmptroller
1 - D/OCA
1 - EXO/OCA
1 - DDL/OCA
1 - OCA Registry (Reference
1 -[1:11Signer
OCA/Legislation Subject File Intell/Auth/FY87
1 - DD/Senate Affairs/OCA
1 - DD/House Affairs/OCA
1 - LD/OCA
Action #86-3328)
OCA/Legi (7 October 1986)
3
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THE WHITE HOUSE
Office of the Press Secretary
FOR IMMEDIATE RELEASE
Statement by the President
I am pleased to sign into law H.R. 4759, the "Intelligence
Authorization Act for Fiscal Year 1987." This Act represents
another significant step forward in our effort to improve our
foreign intelligence and counterintelligence capabilities. It is
essential that we authorize sufficient appropriations and provide
adequate authorities to enable our intelligence agencies to
undertake effectively their vital mission. In this era of budget
cuts, the Congress found it necessary to reduce the amount of money
I requested for our nation's foreign intelligence program. Despite
these reductions, I am pleased that Congress did not impose further
cuts that would have seriously jeopardized the Intelligence
Community's ability to deal with the increasingly complex and
diverse challenges facing it.
I am particularly pleased with the provisions contained in
Title IV of the bill which enhance the FBI and Department of
Defense counterintelligence authorities. The new authorities will
enable us to detect and apprehend those who would betray our
country for personal gain and improve the security of the country
against hostile intelligence threats.
I am disappointed that this year's bill amends the National
Security Act of 1947 to require congressional notification of a
transfer of defense articles and services in excess of $1 million.
I strongly believe that details regarding the scope of notification
to the oversight committees should be governed by agreements
between the intelligence committees and the Intelligence Community.
Such agreements afford the necessary flexibility not found in
legislation. I hope that this provision can be repealed once an
appropriate agreement is reached with the intelligence committees.
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OCA 86-3323
OFFICE OF CONGRESSIONAL AFFAIRS
Routing Slip
ACTION
INFO
1. D/OCA
K
2. DD/Legislation
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3. DD/Senate Affairs
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4. Ch/Senate Affairs
5. DD/House Affairs
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6. Ch/House Affairs
7. Admin Officer
8. Executive Officer
X
9. FOIA Officer
10 Constituent Inquiries
? Officer
X
1111
12.
SUSPENSE
Action Officer
Date
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0 d4
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
October 3, 1986
SPECIAL
LEGISLATIVE REFERRAL MEMORANDUM
TO: Legislative Liaison Officer -
Office of Personnel Management (Woodruff 632-5524) 22
Department of Justice (Perkins 633-2113) 17
Department of Defense (Windus 697-1305) 06
(Central Intelligence Agency
Department of Education (Durako 732-2670) 07
Department of State (Howdershell 647-4463) 25
National Security Council
SUBJECT: Conference report on H. R. 4759, Intelligence Authorization
(See the October 1, 1986, Record pages H8869 through 8878
for text of the bill and report)
NOTE: We need your enrolled bill letters of recommendation for the
President by COB, Tuesday, October 7th).
The Office of Management and Budget requests the views of your
agency on the above subject before advising on its relationship
to the program of the President, in accordance with OMB Circular
A-19.
A response to this request for your views is needed no later than
COB, TUESDAY, OCTOBER 7, 1986.
Questions should be referred to SUE THAU/ANNETTE ROONEY
(395-7300), the legislative analyst in this office.
Enclosures
cc: H. Schreiber
F. Kalder
M. Margeson
R. Moran
F. Seidl
RONALD K. PETERSON FOR
Assistant Director for
Legislative Reference
?
SPECIAL
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