INTELLIGENCE AUTHORIZATION ACT-FY 1989

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91B00390R000200190002-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 23
• Document Creation Date: December 27, 2016
• Document Release Date: April 29, 2013
• Sequence Number: 2
• Publication Date: June 10, 1988
• Content Type: FORM

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CONFIDENTIAL 11SE
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
Intelligence Authorization Act - FY 1989
FROM:
EXTENSION
.
NO.
OS 88-5588
C/PPS/OS
DATE
10 June 1988
TO: (Officer designation, room number, and
building)
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment.)
RECEIVED
FORWARDED
INITIALS
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Joyce,
I believe you will note
from tabs A, B and C that OS
action was completed earlier.
Any questions, let me know.
Office of DDA
7D2,
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F?"" 610 US
,..., EDITIONS
CONFIDENTIAL
* U.S. Government Printing Office: 111115-41114-11134/411158
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STAT
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Deputy Director for Administration
_____ Oks
?0
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100TH CONGRESS I I RErr. 100-591
2d Session HOUSE OF REPRESENTATIVES Part 1
INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR
1989
APRIL 29. 1988.?Ordered to be printed
Mr. STOKES, from the Permanent Select Committee on Intelligence,
submitted the following
REPORT
[To accompany H.R. 43873
The Permanent Select Committee on Intelligence, to whom was
referred the bill (H.R. 4387) to authorize appropriations for fiscal
year 1989 for the intelligence and intelligence-related activities of
the U.S. Government, for the Intelligence Community Staff, for the
Central Intelligence Agency Retirement and Disability .System, and
for other. purposes, having considered. the same, report ? favorably
thereon With an amendment and recommend that the bill do pass.:
The amendment is as ThlipWs:. ? ?.. . ? ? ? ?
On nage. 8, after line 6, insert the following:
EQUAL EMPLOYMENT OPPORTUNITY PLAN
?
. S'Ed. 403. Ninety days after enactment of this Act, the
? Director of . Central. Intelligence and: the Secretary Of ?De-
jense. shallatibinit to the .Permanent Select Committee on.
-Integigetickipr:thenoiiae pflRepreseritatiVeS.- and the Select, ? ,
:Committee
-.forth an ana1sis of each equal erapinYmea'initiecretiiiitY:?!
grotiP's'representiitiiin-in the Central Intelligence Agency'.: ? ?
and the National. Security. Agency respectively and propos- ..
ing a plan for rectifying- any underrepresentation of any -
such equal employment opportunity group by September
30, 1991.
(3) The Director of Central Intelligence and the Secre-
tary of Defense shall each submit interim reports on Feb-
ruary 1 of 198.9, 1990, and 1991 concerning the Central In-
telligence .Agency. and the National Security Agency re-
spectiyely detailing the .efforts made, and the progress re-
.alized b each such agency in achieving the objectives of
? ? - ?
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each such plan, including, but not limited to, the number
of applications from, and the hiring, promotion, and train-
ing of, members of equal employment opportunity group."
(c) For purposes of this section, the term "equal employ-
ment opportunity group" means?
(A) white women,
(B) black men,
(C) black women,
(D) Hispanic men,
(E) Hispanic women,
(F) Asian American and Pacific Islander men,
(G) Asian American and Pacific Islander women,
(H) Native American and Alaskan Native men, or
(I) Native American and Alaskan Native women.
PURPOSE
The bill Would:
(1) Authorize appropriations for fiscal year 1989 for (a) the
intelligence and intelligence-related activities of the U.S. Gov-
ernment, (b) the Intelligence Community Staff and (c) the Cen-
tral Intelligence Agency Retirement and Disability System;
(2) Authorize the personnel ceilings on September 30, 1989
for the intelligence and intelligence-related activities of the
U.S. Government and exempt the Defense Intelligence Agency
and the Defense Mapping Agency from Defense Agency man-
power reductions;
(3) Permit the Director of Central Intelligencejo authorize
personnel ceilings in fiscal year 1989 for any intelligence ele-
ments up to 2 percent above the authorized levels:
(4) Prohibit procurement of more than three GUARDRAIL
RC-12K aircraft and sensors until the submission to Congress
of a report on tactical airborne reconnaissance
(5) Establish restrictions on, and provide specific authoriza-
tions of appropriations and transfer authority to, the Federal
..Pure4U of Investigation, with respect to its foreign. couriterintel-
ligente4Ctiyities; ..;. ,
(6).- Establish restrictions On Support for military or paramili-
tary operations in Nicaragua;
(7) Provide authority to the Director of Central Intelligence
during fiscal year 1989 to grant monetary or other relief to
former employees of the Central Intelligence Agency whose ca-
reers were adversely affected as a result of allegations concern-
ing their loyalty;
(8) Establish a five-year demonstration project at the New
York Field Division of the Federal Bureau of Investigation to
ascertain the effects of certain lump sum and periodic pay-
ments on recruitment and retention of personnel and on field
operations of the New York Division;
(9) Clarify the Se&retary, of Defenie's authority- to use nonap-
proptiated funds for foreign cryptologie support; .
(10) Establish:$1.-ne*AsSistaptiSecretary of Defense for Intel-
ligeri6e; and ?
A
ti
The
nation
thorot
tee an
authoi
all thf
the bi
to, thE
gence
in acc
The
source
of the
partm(
Nation
and Ai
the Trg
of Inyt
(11) al(
telliget
The
tivities
acquisi
tars' fo
tary oy
the Se(
tense J.
:for op(
mand,
ligence
on Amn
Durii
thoriza
Ing a t(
each n
budget
questio:
The
for fisci
telligen
total .an
rect. Ti.
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d to, the number
(-lotion, and train-
portunity group."
cri "equal employ-
ander men,
ander women,
Native men, or
'dative women.
year 1989 for (a) the
vities of the U.S. Gov-
Staff and (c) the Cen-
Disability System;
n September 30, 1989
lated activities of the
se Intelligence Agency
Defense Agency man-
.
telligence to. authorize
)r? any intelligence elet
1Led lev.e1S; ? :
in three GUARDRAIL
submission to Congress
ssance.
,-ide specific authoriza-.
thority to, the Federal
Its foreign counterintel-
Dr military or paramili-
? '
of Central Intelligence
lary or other relief to
,fence Agency whose Ca-
of allegations concern-
on project at the New
-eau of Investigation to
sum and periodic pay-
personnel and on field
authority to use nonap-
.support; .
ary?of ?'Defense for Iritel7
?
3
(11) Make technical corrections to the Defense Intelligence
Agency's authority to withhold from public disclosure organiza-
tional and personnel information.
OVERALL PERSPECTIVE ON THE INTELLIGENCE BUDGET
COM/AMIE INTENT
The classified schedule of authorizations and the detailed expla-
nation found in the classified annex to this public report contain a
thorough discussion of all budget issues considered by the commit-
tee and are available to all Members of the House. The schedule of
authorizations lists the dollar amounts and personnel ceilings for
all the intelligence and intelligence-related programs authorized by
the bill. The schedule is directly incorporated into, and is integral
to, the bill itself. It is the intent of the committee that all intelli-
gence programs discussed in the annex to this report be conducted
in accordance with the guidance and limitations contained therein.
SCOPE OF COMMITTEE REVIEW
The National Foreign Intelligence Program budget consists of re-
sources of the following departments, agencies, and other elements
of the Government: (1) the Central Intelligence Agency; (2) The De-
partment 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 Department of
the 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 In-
telligence.
? The Department of Defense Tactical Intelligence and Related Ac-
tiVities?(TIARA) are a -.diverse array- of reconnaissance .and -target ?
acquisition programs which are a functional part of, the basic -Mai:
tary force structure and provide direct information support to
mili-
tary operations. TIARA. as defined by. the Joint Chiefs of Staff and
the Secretary of Defense, includes. those activities outside the De-
fense Intelligence program which respond to military commanders
for. operational- support information _as well as to national cqm-
niand,-control, and'intelligente requirements.--These military intel-
ligence activitieS also fall within the, juriSdic.tion. of the ComMittee....,
? On Ai:Med:Service's. , ' . ? '
? .During February. sand. March 1988, tlie. 15.rograni arid- liudget?-*Au.
thorization ?Subcommittee conducted a series of 11 hearing's involv-
ing a total: of more than 30 hours of. testimony with witnesses from
each major intelligence and intelligence-related program. These
budget hearings resulted in written responses to many additional
questions.
OVERALL COMMIT1LE FINDINGS AND REcommENnArioNs
The administration requested a small percentage of real growth
for fiscal year 1989 over the amount Congress appropriated for in-
-telligence in fiscal year 1988. The committee determined that the
total arnOunt requested - for fiscal 'ear 1989 was approximately cor-
rect ,:.The -COMMit*,4ecominends a .slightlIV lower level of .funding
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than that requested by the President. Some proposals have been
recommended for deferral or deletion, while a few have been in-
creased. The overall impact of the recommendation is a small re-
duction in the request. The committee believes that the recom-
mended authorization is a reasonable balance between needed ca-
pabilities and prudent cost.
It should be understood that the intelligence budget is largely a
subset of the defense budget. Almost all of the intelligence budget
is contained within the defense budget both for reasons of security
and because the great majority of intelligence activities are con-
ducted by elements of the Department of Defense. Thus, increases
and decreases for intelligence are largely changes within the de-
fense budget and are not direct changes to the federal budget as a
whole.
CONSIDERATION OF AMENDMENTS
An amendment was adopted during consideration of the bill
which would require the Central Intelligence Agency and the Na-
tional Security Agency to adopt plans to address underrepresenta-
tion of minority groups at each agency by 1991 and to make yearly
interim reports of the progress achieved in addressing such under-
representation.
SECTION-BY-SECTION ANALYSIS OF BILL AS REPORTED
TITLE I-INTELLIGENCE AND INTELLIGENCE-RELATED ACTIVITIES
Sections 101-103
Section 101(a) lists the departments. and agencies for whose intel-
ligence and intelligence-related.activities the bill authorizes appro-
priations for fiscal year 1989...
Section- 101(b)' provides that-three .of the gix - 'GUARDRAIL RC-
.12K aircraft and -senor suites. authorized to be 'appropriated by -the -
bill in fiscal year 1989 may not be procured until the Committee on
Armed Services and the Permanent Select Committee on Intelli-
gente. receive a report from the Department of the Army setting
forth in detail- the long-range plans and budgetary commitments to
? meet -future requirements for tactical airborne reconnoissance in
*support ? Of United States -Army-. corfis. -In particular., this report .-
...-,iihouldaddress-:Ilie.-1.-coiliribittiOn.:that::.remotely piloted .vellicles. Or
? :Other follow-or' reConnaissance.aSSeta-can -.rniike to tactical' airborne**
reconnaissance at the corps level. ,- . .,?- ? ? -
Section 101(c) pertains to the foreign counterintelligence activi-
ties- Of the Federal Bureau. Of Investigation. Paragraph (c)fl) pro-
vides that the funds authorized to be appropriated for the FBI's
foreign counterintelligence activities may be used only for such ac-
tivities and not for any other Bureau activities. Historically, the
Bureau, which assigns a high priority to its foreign counterintelli-
gence activities, has underspent. funds authorized for this purpose.
The committee wishes to ensure that foreign counterintelligence
activities receive the 'level of effort requested by the President and
authorized by Congress: ?
. -Paragraph' (c)(2) requires that ? an amount of funds specified in -
.the.-.Schedule!lof Authorizations for the foreign counterintelligence
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proposals have been
a few have been in-
dation is a small re-
ves that the recom-
between needed ca-
e budget is largely a
e intelligence budget
T reasons of security
e activities are con-
?nae. Thus, increases
inges within the de-
federal budget as a
N"TS
deration of the bill
Agency and the Na-
ess underrepresenta-
E and to make yearly
dressing such under-
AS REPORTED
EILATED ACTIVITIES
ncies for whose intel-
All authorizes appro-
x GUARDRAIL RC- ?
appropriated, by the ,
til. the Committee o?
'ommittee on . ?
of the Army setting
tary commitments to.
ie ?reccinnaissance in
.rticular, this report
y piloted vehicles or
e to?tactic.al .airborne ?
erinteltigenee
Paragraph (cX1). pro-
mated for the FBI's
sed only for such aC-
ies. Historically. the
)reigr, counterintelli-
zed for this purpose.
counterintelligence
yy the President and
fund specified in
counterin teliigence
5
activities of the FBI be obligated for the development and procure-
ment of needed counterintelligence technical equipment.
Paragraph (cX3) provides that $15,100,000 of the funds authorized
to be appropriated to the Defense Intelligence Agency in fiscal year
1989 shall be transferred to the FBI for its foreign counterintelli-
gence activities as requested in the President's fiscal year 1989
budget request.
Section 101(d) concerns authority provided by Section 803 of the
Intelligence Authorization Act for Fiscal Year 1986 (5 U.S.C. 9101).
Section 803 permits the Department of Defense, the Office of Per-
sonnel Management and the Central Intelligence_Agency_(and, by
later amendmenti.'the-Federal-Bureati,oVInvestigation) to obthn
r---state -and- local:Criininalaattoritr&ord InfOrMitiOn for use
rity checks. Section-803-requifEd-thes-e-FedeThla?Piicies to-enter
linto agreeinents to indemnify states or localities for claims against
them arising from the disclosure or use of the criminal history
record information obtained by means of this statute. The require-
ment for such indemnification agreements expires three years after
enactment of the statute. Section 803(b) of the 1986 Act, however,
required a report from the Department of Justice (in consultation
with the affected Federal agencies) concerning the effect of requir-
ing such indemnification agreements. That 'report, which was due
in December, 1987, has never been submitted by the Department.
Failure to provide this report has frustrated the intent of Congress.
which was to have a full year before expiration of the indemnifica-
tion requirement to review the report and consider whether the in-
rdefilfrification' requirement should continue, lap-k, or be modified.
---.Accordingly, Section 101(d) extends the expiration date for the
___ ?-
demnification requirement-AmtiPone year after the submission of
the report required by ...Section--803(b) -of the fiscal year 1986- Act.
1-'7-Section 102(a) makes clear that details of the committee's recom
. mendations with respect to the amounts authorized to be appropri-
?ated and applicable personnel ceilings in fiscal year 1989 for intelh?
gence and intelligence-related activities under title.I arecantained -
in a classified schedule of authorizations; 'The .schedule of atithori- ?
zationS. is incorporated-into the bil1?.by this section. The details-of ?
- the schedule are explained in the: classified annex to 'this report..
Section 102(b) provides that the numbers of non-headquarters ?
. personnel of the Defense Intelligence ?Agency (DIA) and theDe-
.,fense Mapping Agency' (DMA), shall not :be reduced,. nor counted ?
for purposes of;detetminifig,WW--Mia0Depirtinerit Of'Deferise'Pet-;.?
.,Sonnel..shOtild be reduced, ?in accOrdance with the provisions.? of
tion 601. of .the Department of Defense ReOrganiiation. Act . of 1986. ?
Section 601 requires the Secretary. of .Defense: to Make certain re-'
?
ductions in both the headquarters and non-headquarters personnel ?
of the Department of Defense based on the number of such person-
nel as of September 30, 1986. Section 102(b) would exempt DIA and
DMA only from the non-headquarters cuts while holding other de-
fense agencies and field activities harmless from an increased
share of personnel reductions required by Section 601. The commit-
tee achieved this result by. reducing the base number of non-head-
quarters personnel 'against which Section 60.1 reductions of non-
headquarters personnel Must betaken.
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The committee felt that Section 102(b) was necessary in light of
the increase in the number of requirements for intelligence and re-
lated products levied upon both DIA and DMA in recent years.
These increased demands have been either supported or created by
the Congress and have led to the authorization of additional per-
sonnel at both agencies. It was the committee's reasoning that its
support for more and better analysis and mapping products carried
with it an obligation to provide the personnel to perform these
tasks without regard to overall reductions in DoD manpower. The
committee did feel, however, that some reduction in headquarters
management was acceptable for both agencies.
The committee initially recommended an identical provision with
respect to fiscal year 1988, the first two fiscal years in which the
reductions in DoD manpower are required to be made. In confer-
ence, the committee agreed to nonbinding sense of Congress lan-
guage urging the Secretary of Defense not to make reductions at
DIA and DMA. The Secretary eventually did order such reductions,
although he has also requested repeal of the statutory requirement
to make reductions in DoD manpower. The committee does not ad-
dress this larger request but agrees that, with respect to Defense
agencies with intelligence and related missions, it would be incon-
sistent with the high priority placed by the committee and the ex-
ecutive branch on intelligence support to military forces to require
reductions in DIA and DMA at a time when the committee is rec-
ommending an increase in personnel, as it has over the past sever-
al years.
Section 103 permits the Director of Central Intelligence to au-
thorize the personnel strength of any intelligence element to
exceed the fiscal 'ear 1989 .authorized personnel levels by no more
than 2 percent if he determines that doing so is necessary for the
performance. of important intelligence funetions: The Director must
? notify the two intelligence committees promptly of:any exercise of
authority under the. section. .
The committee emphasizes that the authority conveyed by Sec-
tion..103 is not intended to permit the.wholesale raising of person-'
nel strength in each or any intelligence component. Rather, the
section provide the .Director of Central Intelligence with flexibility
to adjust -personnel:levels temporarily for. contingencies and for
.
overages caused ,,by .between ;of newernployees:-..?
:and attrition einPlOvees. The committee -does not expect
the Director of Central Intelligente to allow heads of intelligence
components to plan to exeeed personnel* levels set in the schedule -
of authorizations except for the satisfaction of clearly identified
hiring needs which are consistent with the authorization of person-
nel strengths in this bill. In no case is this authority to be used to
provide for positions denied by this bill.
Section 104
Section 104 provides that funds available to the Central Intelli-
gence Agency. the Department of Defense, or any other agency or
entity of the United States may be obligated and expended during.
fiscal year 1988.t4 provide funds; materiel or other assistance to
the Nicaraguan..fesistence.to.support triihtary or paramilitary oper-
atio.ns:in.NiCaragii4nnly as authorized pursuant to Section 101 and
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necessary in light of
or intelligence and re-
'MA in recent years.
ipported or created by
:ion of additional per-
*'s reasoning that its
ping products carried
Inel to perform these
1 DoD manpower. The
[ction in headquarters
5.
lentical provision with
al years in which the
Lo be made. In confer-
nse of Congress Ian-
make reductions at
order such reductions,
statutory requirement
:ommittee does not ad-
ith respect to Defense
ns, it would be incon-
ommittee and the ex-
itary forces to require
the committee is rec-
as over the past sever-
ral Intelligence to au-
telligence element to
nel levels by no more
so is necessary for the
.)ns. The Director must
ptly .of: an exercise of
rity conveyed by Sec.
sale raising of person-
mponent. Rather, the
ligence with flexibility
contingencies and for
iring of new, employees
imittee. does :not- expect
k'
heads of-intelligenCe.?:..
`els set. in the schedule
m of clearly identified
luthorization of person-
authority to be used to
to the Central
Inteili-
or any other agency or
d and expended during
or other assistance to
-v. or paramilitary oper-
uant to.Section 1-01 and
as specified in the Classified Schedule of Authorizations referred to
in Section 102, Section 502 of the National Security Act of 1947, or
any provision of law specifically providing such funds, materiel or
assistance, such as is contained in H.J. Res. 523 of the 100th Con-
gress, a joint resolution providing assistance and support for peace,
democracy and reconciliation in Central America (Public Law 100-
276).
Section 104 continues in force the provisions of Section 104 of the
Intelligence Authorization Act for Fiscal Year 1988 (Public Law
100-178), except that it applies to all agencies or entities of the
United States, not just those involved in intelligence activities, as
the Fiscal Year 1988 Act did. Its principal effect is to ensure that
only funds specifically authorized by the bill or those specifically
authorized by separate legislation approved by the House and
Senate may be provided to assist the military or paramilitary oper-
ations of the Nicaraguan resistance. Section 104, in effect, pre-
serves the position that any military or paramilitary assistance
provided to the Nicaraguan resistance must be openly requested
and approved by the Congress.
Section 104 would prohibit during fiscal year 1989, as does Sec-
tion 104 of the Fiscal Year 1988 Act during fiscal year 1988, the use
of funds from the CIA's Reserve for Contingencies for assistance to
the military or paramilitary operations of the Nicaraguan resist-
ance except to the extent approved by reprogramming or transfer
approval action submitted to the appropriate committees of the
Congress, which would include the intelligence and appropriations
committees of the House and Senate. Of course, funds from any
other accounts appropriated to the CIA, the Department of De-
fense, or any other agency or entity could not be transferred to
assist the military or paramilitary operations of the Nicaraguan re-
sistance without reprogramming?or transfer approval by the? same
committees.: ? -.,? . . ?
This resitif steins ...particular from the application of.Secticiri
502 of thelNational Security Act of 194/ which provides that. funds
may not be 'spent for an intelligence activity unless they have been
specifically authorized and, in the case of the Reserve, provides
that funds may be Provided for a particular intelligence activity if
the Director of Central Intelligence has given appropriate notice to
the intelligence committees of the House and Senate. As. noted
? -aboVe,,..funclautboriied:dUring fiscal year 1989. for .
:-.serve jor...Vontingenpiesjare.ifot available for 'atiPPort,,to-ithe
inili?
tary or paramilitarY:actiVities.Of the Nicaragilan.resittantie:,(F0ds.
requested for the Reserve would Ordinarily be available to ftind:any
intelligence activity, 'other than one for Which Congress had denied
funds. The committee has denied use of the Reserve in fiscal year
1989 to assist the military or paramilitary operations of the Nicara-
guan resistance.)
Further. since assistance to the military or paramilitary oper-
ations of the Nicaraguan resistance is a matter of significant Con-
gressional interest, any transfer of funds from other accounts for
this purpose would require a .reprogramming or transfer approval
action. Finally, Subsection 502(b, of the National Security Act of
1947 does not. permit the funding of intelligence activities for which
funds have been denied by Congress. Even if substantial changes in'.
: ?
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such proposed activities occur, the only avenue to secure reconsid-
eration of such denial is through a reprogramming or transfer ap-
proval submitted to the appropriate committees.
As under current law, the provision of intelligence information
and advice to the Nicaraguan resistance is authorized by Section
104. These activities may continue as provided for in accordance
with the joint explanatory statement of managers to accompany
the conference report on H.R. 2419 of the 99th Congress (H. Rept.
99-373, pages 14 through 17). No other support to the military or
paramilitary operations of the Nicaraguan resistance is authorized
by the bill.
The committee anticipates that, if both Houses approve legisla-
tion providing additional assistance to the Nicaraguan resistance,
regardless of whether or not such legislation is approved prior to or
subsequent to enactment of the Fiscal Year 1989 Intelligence Au-
thorization Act, the terms and conditions of such legislation will
control the nature and extent of U.S. assistance to the military or
paramilitary operations of the Nicaraguan resistance to the extent
they are inconsistent with Section 104. If there is no such legisla-
tion or if such legislation were silent on matters covered by Section
104, then the provisions and conditions of Section 104 would con-
trol on matters involving any assistance to the military or para-
military operations of the Nicaraguan resistance.
TITLE II-INTELLIGENCE COMMUNITY STAFF
Sections 201-203
Section 201 authorizes the appropriation of $23,745,000 for fiscal
year 1989 for the Intelligence Community Staff (IC Staff), which
provides the Director of Central Intelligence with staff assistance
to .carry out his intelligence community responsibilities. The IC
Staff supports the Director of .Central .Intelligence in the execution
of is 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.
Sections 202 and 203 provide certain administrative authorities
for the Intelligence Community Staff.
Section 202(a) authorizes 244 full-time personnel, for the staff.
:The Intelligence COMmtinity Staff. is. composed of a.:.peimaiierit,
. .
.care, .detailed CommimitY iiersonnel;:and-.cqntract .hireeS. The ptir-
Pose of section. -202(b) is to authorize this method of Staffing and to
require that detailed employees represent all appropriate elements
of the Government, including those engaged in intelligence-related
activities. Section 202kc) requires that personnel be detailed on a re-
imbursable basis except for temporary assignments. The Staffs au-
thorized size, in the opinion of the committee, is sufficient for the
duties which the Staff performs. This provision is intended to
insure that its ranks are not swelled by detailees. the personnel
costs for whom are not reimbursed to their parent agency.
Section 203- provides the Director of Central Intelligence with au-
thority to manage the activities and to pay the personnel of the In-
telligence Community Staff because the taff is not otherwise au-
thorized by 111W.: However it is the comndittee's intent that in the
. .
WM'
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we to secure reconsid-
mining or transfer ep-
ees.
itelligence information
authorized by Section
ided for in accordance
anagers to accompany
9th Congress (H. Rept.
port to the military or
esistance is authorized
louses approve legisla-
Nicaraguan resistance,
is approved prior to or
1989 Intelligence Au-
{ such legislation will
Ince to the military or
esistance to the extent
ere is no such legisla-
ters covered by Section
tion 104 would con-
the military or para-
ce.
ITY STAFF
{ $23,745,000 for fiscal
Staff. (IC Staff), which
e with staff assistance
ponsibilities. The. IC
Igence in the execution
I approve. the National
Ouate the performance
elop, issues, goals, and
mmunity.
linistrative authorities
ersonnel for the staff.
of a permanent.
tract hirees, The Pur- '
.thod of staffing 'and'tO'
1 appropriate elements
in intelligence-related
nel be detailed on a re-
aments. The Staffs au-
ae, is sufficient for the
vision is intended to
etailees. the personnel
arent agency.
Intelligence with au-
he personnel of the In-
ft is not otherwise au-
ee's intent that in the
9
case of detailed personnel, the Director's authority to discharge
personnel shall only extend to discharging detailed personnel from
service at the Intelligence Community Staff and not from Federal
employment or military service.
TITLE III?CENTRAL INTELLIGENCE AGENCY RETIREMENT AND
DISABILITY SYSTEM
Section 301
Section 301 authorizes appropriations for the Central Intelligence
Agency Retirement and Disability System (CIARDS) in the amount
of $144,500,0000 for fiscal year 1989. The Central Intelligence
Agency 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) The cost of annuities attributable to credit allowed for
military service;
(3) Normal cost benefits not met by employee and employer
contributions;
(4) The increase in unfunded liability resulting from liberal-
ized 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 per-
cent of high 3-year average salary for each year of service, not ex-
ceeding 35; (b) under stipulated conditions a participant may retire
with ?the consent of the Director, or at his direction be retired, at
age 50 with 20 years serVice, Or a participant .with 2.5 Years of ser-v-
ice may be retired by the Director regardless of age;. and (c) retire-
ment is mandatory 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: (al contributions, currently. at
. the rate.of 7:,percent, 'deducted from basic salaries of participants
designated by .theljirectoi;'.(b) matching Agency -contributions froni:
''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 em-
ployee and matching employer contributions for service of. Agency
employees prior to the date of their participation in CIARDS, and
contributions for service of integrated Agency employees included
in CIARDS following termination of integrated status; td, income
on investments in U.S. Government securities; and (e) beginning in
1977, direct appropriations consistent with the provisions of Public
Law 99-552.
0.0
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10
TITLE IV?GENERAL PROVISIONS
Section 401
Section 401 provides that the authorization of appropriations by
the bill shall not be deemed to constitute authority for the conduct
of any intelligence activity which is not otherwise authorized by
the Constitution or laws of the United States.
Section 402
Section 402 provides that appropriations authorized by the bill
for salary, pay, retirement, and other benefits for Federal employ-
ees may be increased by such additional or supplemental amounts
as may be necessary for increases in such compensation or benefits
authorized by law.
Section 403
Section 403 requires the Director of Central Intelligence and the
Secretary of Defense to submit 90 days after enactment a report
setting forth an analysis of the representation of each minority
group (termed equal employment opportunity in this section) at
CIA and NSA, respectively, and proposing a plan for each agency
that would address any underrepresentation of any such group by
September 30, 1991. Both the Director and the Secretary are re-
quired to provide interim reports on February 1, 1989, 1990, and
1991 for their respective agencies detailing the efforts they have
made, and the progress that has been realized by each agency in
achieving the objectives of each plan. These reports must address,
among other things, the number Of applications from minority
groups, and the hiring; the. promotion and the training of members
of such groups for each agency. Section 403(c) lists those Minority
groups who ualifi equal employment opportunft}, groups.
The committee s purpose in adopting this amendment was to
give added emphasis to minority programs at both CIA and NSA.
The committee regularly receives reports on such efforts and has
noted some improvements in recent years. However, improvements
in minority representation have occurred principally in the support
..field, while minority representation in professional fields lags
? behind. The .committee WAS instrumental in beginning minority re-
cruitment :programs for crttical skills personnel Referred to as .U/1,-
de.rgradiiate training programs '(1.7P).,: these . programs were :szle-
-Signed to assist CIA and NSA in .recruiting minorities for main--
stream professional positions. While these programs have been im-
plemented at both agencies. the committee also feels that much
more could be done and bases this in large part on the testimony of
the Director of Central Intelligence and the Director of the Nation-
al Security Agency in appearances before the committee this year.'
The committee wishes to emphasize that, in preparing the plans
called for by Section 403, both the Director of Central Intelligence
and the Director of the National Security Agency in appearances
before the committee this year.
The committee wishes to emphasize that, in preparing the plans
called for by Section 403, both 'the:Director Of Central Intelligence
and the Secretary .of -Defense- should .construe the terms "represen-
tatiOn7 and ik!underepre? ericoixipssn..not only the .
t)cr
?
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n of appropriations by
thority for the conduct
herwise authorized by
authorized by the bill
Lts for Federal employ-
supplemental amounts
nipensation or benefits
al Intelligence and the
er enactment a report
ition of each minority
Lity in this section) at
plan for each agency
of any such group by
the Secretary are re-
ary 1, 1989, 1990, and
the efforts they have
ized by each agency in
reports must address,
Lcations from minority
he training of members
3(c) lists those minority
loortunity groups.
,.is amendment . Was to
at both CIA and *NSA.
n such efforts and has
lowever, improvements
incipally in the support
Professional fields lags
beginning minority re-
nnel. Referred to as un-
:se programs Were de'-
ig Tor: main-
Irogranis have been itia-
also feels that 'muCh
part on the testimony of
Director of the Nation-
he committee this year.
in preparing the plans
- of Central Intelligence
Agency in appearances
. in preparing the plans
7' of Central Intelligence
.ue the terms -represen-
ompassing not only the
11
numbers of members of minority groups present in the total work
force of an agency but also the grade or payband distribution of mi-
nority group members in both professional and support areas, as
well as the projected career development of such groups.
The committee's purpose in requiring an EEO plan for each
agency is not to set inflexible goals or hiring quotas, but rather to
identify weaknesses in minority representation and participation,
strengthen existing programs to acquire better minority represen-
tation and focus new resources and higher priority attention across
the entire equal employment opportunity spectrum. The committee
does not intend that numerically insignificant minority representa-
tion nationwide should require significant EEO programmatic ef-
forts at either agency. However, the committee cautions that the
essence of a successful equal employment opportunity approach is
to predicate efforts at recruiting, hiring, promotion, and training of
minority group members on the principle that the diversity, experi-
ence and often unique skills they bring to any workforce are a posi-
tive benefit. Such benefits should be understood, emphasized, and
sought.
TITLE V -CENTRAL INTELLIGENCE AGENCY ADMINISTRATIVE PROVISIONS
Section 501
Section 501 would grant the Director of Central Intelligence the
authority during fiscal year 1989 to grant monetary or other relief,
including reinstatement and promotion, as the Director considers
appropriate, to former employees whose career with the Agency
had been adversely affected as a result of allegations concerning
their loyalty to the United States. This authority mirrors similar
authority provided in the Fiscal Year 1981 Intelligence Authoriza-
tion Act. It is intended to address the. peculiar, circumstances of at
least one, former employee whose forced retirement from the
Agency at a, time of heightened .concerns about loyalty to the
United States..ha_s?since been shown -to .have been unjustified. The
authority provided by. Section 501Tis not .reviewable in :any court or
other forum and is effective only. to .the extent that :appropriated
funds are. available for the purpose : of making payments to former
employees. Finally, any exercise of the: authority by the Director' of
Central Intelligence Must be the subject of prior notification to the
intelligence committeeof the. House and Senate.
? trrLtVIFBI OOUITERThflZUJGEICE iktyrifoRtrits
? ?
Section 01. ? ?
. .
Section 601 would establish .a five-year denionstration project in
the FBI's New York.Field Division in order to ascertain the effects
on recruitment and retention of personnel and on field operations.
including counterintelligence operations, of lump sum and periodic
payments to certain FBI personnel at that office. Such payments
are intended to offset the high cost of living in the New York met-
ropolitan area. Section 601- requires that the demonstration project
be conducted- by the FBI in conjunction ?with the Office of Person-
nel Management and include the provision of lump-sum payments
to personnel -Resigned to the New York Field Division from another
yr% -
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12
geographic area who agree to serve no less than a three-year tour
in the New York office, as well as periodic payment to New York
Office employees who are subject to a mobility requirement, i.e. es-
sentially special agents and some specialized support personnel.
Section 601 is a joint recommendation by the Office of Personnel
Management and the Federal Bureau of Investigation contained
within their "Report on Recruitment, Retention and Operational
Problems Facing the New York Office of the Federal Bureau of In-
vestigation Caused by the High Cost of Living, and a Plan for Rem-
edies," which was submitted to Congress pursuant to Section 502 of
the Intelligence Authorization Act for Fiscal Year 1988. Congress
had earlier proposed a demonstration project for the New York
Field Division of the FBI but, at the Administration's request, de-
ferred this suggestion until the submission of the joint report.
The Intelligence Committees have been advised for some time by
the FBI that due to the high costs of living in the New York area.
the FBI has a difficult time recruiting agents for such assignments,
which impose a considerable financial burden on agents and their
famLlies wider the current pay structure. Agents who are assigned
to the New York office routinely attempt to leave at the earliest
opportunity.
From the standpoint of the effectiveness of the FBI's Foreign
Counterintelligence Program, the New York Field Division is criti-
cally important. To have employees assigned to this division
against their wishes, at a considerable financial sacrifice, and to
have them take the first opportunity to leave for the same reason,
inevitably undermines the effectiveness of the New York office in
terms of its counterintelligence responsibilities.
What distinguishes the circumstances of FBI employees in the
New York area is that many FBI employees are transferred in and
out of the New York area as a routine matter. The great majority
are not recruited in New York and undergo significant hardship in
terms of housing. commuting and overall living expenses by trans-
ferring into the Ne* York metropolitan area. Most other. Federal
employees in the New York area are not required as a condition of
employment to?move to the New. York area because they were al-
ready living in the area when they joined the Federal service Fur-
ther. the FBI. especially in its counterintelligence activities, pos-
sesses- personnel requirements . which differ from other ?Federal
? .:agencies and which impose burdens in excess : of those .imposed by -
Other Federal 'en:Troy:Merit:in the.NeW.York area.
The committee agreed to the Administration's request for a dem-
onstration project at the New York FBI office based on the descrip-
tion of Section 601 provided in the above-referenced report and.
specifically. the following excerpt from the report's recommenda-
tion section:
As envisioned by both agencies. a two-part allowance
would be paid to employees transferred to New York
under the mandatory transfer program. A lump sum
would be paid at the time the employee is actually trans-
ferred to New York. upon the employee's written agree-
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Ian a three-year tour
ayment to New York
requirement, i.e. es-
upport personnel.
Le Office of Personnel
vestigation contained
Lion and Operational
"'ederal Bureau of In-
and a Plan for Rem-
'ant to Section 502 of
Year 1988. Congress
for the New York
tration's request, de-
he joint report
'used for some time by
the New York area,
for such assignments,
on agents and their
nts who are assigned
leave at the earliest
of the FBI's Foreign
'ield Division is criti-
Aed to this division
icial sacrifice, and to
for the same reason,
e New York office in
'BI employees in the
re transferred in and
r. The great majority
gnificant hardship in
ig expenses by trans-
. Most other -Federal
ired as a condition of
*cause they were al-
Federal service. Fur-
gence activities, pos-
from ..other ?Federal
of thoSe-ixtipOsed.
. . by.
-ea...
i's request for a 'dem;
based On the descrip-
ferenced report and.
?eport's recommenda-
o-part allowance
3 to New York
A lump sum
s actually trans-
:, written agree-
13
ment to a specified term of service in New York.' For all
employees in New York subject to a mobility requirement,
an additional allowance would be paid, on a biweekly basis
through the payroll system. (The amounts of these allow-
ances would have to be determined.) These allowances
would not become part of the employee's basic pay and
would cease when the employee is reassigned out of new
York.
The funds available to pay for the demonstration project must
come from funds appropriated to the FBI that are available for
that purpose, or funds reprogrammed for the demonstration
project. The committee expects to be kept fully informed of actual
rates for the allowances and lump-sum payments to be made under
the program and any other compensatory elements of the program.
TITLE VD?DEPARTMENT OF DEFENSE INTELLIGENCE PROVISIONS
Section 701
Section 701 would revise Section 421 of Title 10, United States
Code, to clarify the purposes for which both appropriated and non-
appropriated funds may be used in the context of arangements
with foreign countries for cryptologic support. Generally, appropri-
ated funds may be used only as requested or otherwise provided by
Congress. Nonappropriated funds may not be used for a purpose for
which Congress has previously denied funds and may not be used
to acquire items or services which the United States could have
purchased with the use of appropriated funds. This latter limita-
tion is not intended to prevent the sharing of costs of cooperative
arrangements. It is aimed principally at preventing the augmenta-
tion of appropriations available to the Department of Defense for
these purposes by soliciting or otherwise arranging gifts of other
than nominal or de minimis amounts of equipment or services
from other foreign governments. All uses of all funds expended
pursuant to new Section 421 must be reported to the intelligence
committees of the House and Senate pursuant to regulations or un-
derstandings.reached betWeen the intelligence committees and the
Department of Defense. The .committee is in the course of expand-
ing and revising these understandings and procedures
Section 70.2. :
. . . ?
. . . . .
.? Section , 702 would .Create .a ..new: Assistant- Secretary of Defense,
for Intelligence:(ASDn'Whose 'responsibilities' would ? include the
overall supervision of all intelligence and intelligence-related ac-
tivities Of the Department of Defense. This .new Assistant Secretary
would replace the currently specified -Assistant Secretary of De-
fense for Command, 'Control, Communications and Intelligence
(ASD(C 3 I)) and would be assigned the intelligence responsibilities
of the current ASD(C 3 II as well as those currently assigned to the
Deputy Under Secretary of Defense for Policy. Specifically, the
committee believes all intelligence functions and responsibilities,
including oversight, policy formulation. planning, programming.
' The terns of the service. contract could be waived or arnendec: uper a manarcrnent-directea?
transfer out of New' York
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19
and budgeting, and those functions and responsibilities traditional-
ly grouped together with intelligence activities, such as foreign
counterintelligence and security programs and support to covert
action, should be consolidated under the ASD(U. It is also the in-
tention of the committee to streamline policymaking on intelli-
gence and intelligence-related matters within the Department by
providing that the new Assistant Secretary would report directly to
the Secretary of Defense. However, the committee wishes to em-
phasize that creation of this new Assistant Secretary position
would not affect the responsibilities of the Under Secretary of De-
fense for Acquisition to coordinate the acquisition of tactical intelli-
gence and related systems.
For more than ten years, the committee has attempted to
strengthen the management of intelligence and related activities
within the Department of Defense. Intelligence is widely recognized
as a unique area within DoD, not only because of its special securi-
ty constraints and extensive cross service and inter-agency implica-
tions but because intelligence plays such a decisive role in support-
ing military operations and in the defense policy, planning and
weapon acquisition processes. Despite this recognition, however,
the Department decentralized management of intelligence matters
in 1978. Subsequently, the committee has repeatedly been present-
ed with evidence of ineffective staff support up to the Secretary,
staff supervision and guidance downward to the Defense compo-
nents, and inadequate representation of Defense interests in the in-
telligence community. Even basic mechanisms for ensuring that
timely and accurate intelligence is made available to support mili-
tary- operations and decision making appear to be lacking. -
From 1978 to 1984, the committee repeatedly expressed concern
about the widespread division of responsibilities for intelligence
matters within the Office: of the Secretary of Defense. Although
some ?iniprcivement? was noted With the establishment of an
ASD(C 3 I) in late 1984, responsibilities for DoD intelligence mat-
ters remained fragmented.. Further, in its examination of DoD in-
telligence management since 1984, the committee has observed
ample evidence that Combining the Management of C 3 and Intelli-
gence functions generally has not worked to the benefit of either
function and to the...extent that there has been success. it was ..,
.tributable-to the .personality and background of the individual ap-
:
pointed* as the: A813(C*2: ?
The committee's continued Concern regarding the need to.
strengthen Management of Doaintelligence was reinforced by. the .
reports required to be submitted by the Goldwater-Nichols DoD
Re-
organization Act of 1986 which were received late last year. In two
reports published by the Office of the Secretary of Defense staff
and in the report of the Chairman of the Joint Chiefs of Staff, rec-
ommendations were advanced concerning the separation of C 3 and
Intelligence and establishing an Assistant Secretary of Defense for
Intelligence to centrally coordinate and focus on U.S. intelligence
issues
From the committee's perspective, the need for this new position
is best exemplified,', by the difficulties the committee has eperi-
enced in'the.past.:;ikideniifYing whic,h defense official to look to in
seeking undeistanding?pf the intelligence needs of the Department,
. .
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onsibilities traditional-
Aties, such as foreign
and support to covert
3D(1). It is also the in-
ilicymaking on intelli-
in the Department by
you'd report directly to
nmittee wishes to em-
int Secretary position
inder Secretary of De-
sition of tactical intelli-
tee has attempted to
and related activities
)ce is widely recognized
,t.se of its special securi-
d inter-agency implica-
iecisive role in support-
policy, planning and
recognition, however,
of intelligence matters
peatedly been present-
/ up to the Secretary,
to the Defense compo-
mse interests in the in-
sms for ensuring that
ailable to support mili-
to be lacking.
edly expressed concern
pilities for intelligence
of Defense. Although
establishment of an
DoD intelligence mat-
?xamination of DoD in-
mmittee has observed
ment of C3 and Intelli-
o the benefit of either
.een success. it was at:.
d of the. individual -ap-
garding : the .1:lead.- 't0
- was lieinfoicedeby the: ,
water-Nichols DoD Re-
d late last year. In two
hetary of Defense staff
lint Chiefs of Staff. rec-
e separation of C3 and
lecretary of Defense for
us on U.S. intelligence
d for this new position
committee has experi-
se official to look to in
ed.s of .the Department,
15
as well as the reasons for various apparent intelligence shortfalls
in suporting DoD operations. The committee notes that it is par-
ticularly convinced of the need to bring within the cognizance of
the defense official responsible for foreign intelligence matters the
responsibility for counterintelligence activities that tie so directly
and critically into other Defense intelligence activities.
In an effort to minimize the impact of the creation of this new,
consolidated intelligence portfolio within the Department of De-
fense, Section 702 creates an additional underdesignated Assistant
Secretary of Defense so as to permit the Secretary to designate, if
he wishes, a new Assistant Secretary to retain the portfolio of Com-
mand, Control, and Communications held today by the assistant
Secretary of Defense for Command, Control, Communications and
Intelligence.
Section 703
Section 703 makes technical revisions to, and redesignates, Sec-
tion 1607 of Title 10, United States Code, which permits the De-
fense Intelligence Agency to withhold from disclosure information
about its personnel and organization, in order to conform it more
closely to the format of Title 10. No substantive revision of DIA's
current authority is intended.
ADDITIONAL 'MUM
Last year in the Classified Annex to the Intelligence Authoriza-
tion Bill, the committee commented on the proposal to provide a
signals intelligence (SIGINT) capability to National Guard units.
The committee noted that a dispute between the National Security
Agency and the Army concerning the control of the assets had not
been resolved. The committee questioned the need for such a capa-
bility based on Army Active and Reserve component capabilities
and the -known equipment shortfalls in the units. The committee
requested that the Assistant Secretary of Defense for Command,
Control, Communciations and Intelligence inform the committee on
the resolution of the differences between the 'Army and the NSA,
and if the Army was to proceed with a SIGINT capability for the
National Guard, the committee would expect detailed justification
. in future budget requests for the program as well as the develop-
ment and implementation of procedures to control the collection
and exploitationi- Of: SIOIls.IT: -To ...date, the issue 114s-. yet. to berre-
. . .
? solved. ? *
? ? .. ? -
The committee believes-that serious legal and *constitutional
questions may be posed by National Guard SIGINT operations and
that the Secretary of Defense should carefully review these ques-
tions in resolving the issue. Until such time that the issue is re-
solved, the committee cannot recommend authorization of tactical
SIGINT assets for the National Guard and no authorization i for Na-
tional Guard SIGINT operations is contained in H.R. 4387.
Section 505 of the Intelligence Authorization Act for Fiscal Year
1987 directed the Secretary of Defense to establish an undergradu-
ate training.prograin (UTP) at the National Security Agency. Sec-
tion 506 of the. Act directed. the Director 'of Central Intelligence to
set up a UTP ? at. the I.Cerip-al jr4..elligerice _Agency consistent with
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the provisions of Section 505. The committee's intent in creating
UTP's was to assist CIA and NSA in attracting new minority em-
ployees and to facilitate the recruitment of students possessing aca-
demic skills in certain disciplines critical to intelligence functions,
i.e. mathematics, engineering, computer science and foreign lan-
guages.
The committee hoped that through the UTP's CIA and NSA I
would be able to gain early access to a pool of talented potential
employees whose skills are so necessary for the success of future
missions of the two agencies.
In authorizing the UTP's, the committee expected that the pro-
grams would be consistent with each other. Specifically, the com-
mittee stated in its report accompanying the Fiscal Year 1987 In-
telligence Authorization Act that the programs should provide sala-
ries and certain expenses incident to employee assignments includ-
ing, but not limited to matriculation fees, tuition, library and labo-
ratory fees and the purchase or rental of books, materials and sup-
plies.
The committee did' not list payment of' roomand board to UTP
participants, a feature incorporated by CIA. Such payments create
a broad discrepancy in the two programs. The committee has ex-
pected such expenses would be a responsibility of the individual.
The committee also notes a disparity in the formula used by CIA
and NSA to calculate a student's obligation to the individual
agency upon completion of his or her undergraduate studies. It was
and remains the committee's intent that for each year or partial
year of education provided by NSA and CIA, the *student would be
obligated to serve in the employing agency for one and a half
years. For a traditional four-year undergraduate program, assum-
ing the school year is nine months,. the committee would expect a
student's obligation to Compute to 54 months of required service.
The committee 'views CIA's practice of subtracting months of
summer employment from the total number of months .spent in
school to be an inappropriate interpretation. S.
The committee views these differences with concern and urges
CLI to reconcile the differences in its program with NSA so as to .
achieye uniformity in the administration of ?both individual UTP .s.
The...committee recogiiiies: arid applauds, ihe. efforts of.both agen-
cies: in recruiting students for the -.UTP-S:ih. Such a short :time
frame. However, it isthe belief of the 'committee that. not enough
effort is being put into recruiting students in high- schools. . The
result of concentrating UTP efforts at colleges is that many quali-
fied high school candidates who for financial reasons do not apply
for admission to colleges are excluded from any possible consider-
ation. These are the very students the UTP's were designed to at-
tract.
The committee urges new efforts at focusing UTP's on high
school candidates
COMMITTEE POSITION
. . .
On April -14; .-1988, the Permanent Select Committee on intelli-
gence ,* a---quoriiii;;being present, approved the bill and ?by uriani-
Inouk.Voice vote ordered it favorably reported
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's intent in creating
ing new minority em-
udents possessing ace-
intelligence functions.
ence and foreign lan-
INP's CIA and NSA
1 of talented potential
the success of future
expected that the pro-
Specifically, the com-
e Fiscal Year 1987 In-
pa should provide sala-
riassignments includ-
*tion, library and labo-
ls, materials and sup-
om and board to UTP
Such payments create
e committee has ex-
y of the individual.
e formula used by CIA
ion to the individual
aduate studies. It was
^ each year or partial
, the student would be
y for one and a half
uate program, assum-
mittee would expect a
hs of required service.
ubtracting months of
r of months spent in
-th -concern and urges
am With NSA so as to
both individual UTP's.
le efforts of both agen-
in such a short time
nittee. that not enough
in: high schoql.S.The-1.?
es is that many
?li-
1.' reasons d riot ? aPply
'any possible conSider- ?
's were designed to at-
-using UTP's on high -
Committee on Intelli-
:he bill and by unani-
17
OVERSIGHT FINDINGS
With respect to clause 2.(IX3KA) of Rule XI of the House of Repre-
sentatives, the committee has held extensive hearings regarding
the nature and conduct of the intelligence and intelligence-related
activities of the U.S. Government in considering this legislation
This review is outlined under the section of this report describing
the scope of the committee review. A wide range of recommenda-
tions regarding intelligence programs and their management has
been included within the classified annex of this report.
FISCAL YEAR COST PROJECTIONS
With respect to clause 2(1)(3XB) of Rule XI of the House of Repre-
sentatives 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(aX1) of Rule XIII of the Rules of the House of Representatives to
ascertain the outlays which will occur in fiscal year 1988 and the 5
years following if these amounts are appropriated. These estimates
are contained in the classified annex and are in accordance with
those of the executive branch.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
With respect to clause 2(IX3XC) of Rule XI of the House of Repre-
sentatives, the committee has received no report from the Congres-
sional Budget Office.
RECOMMENDATIONS OF THE COMMITTEE ON GOVERNMENT OPERATIONS
With respect to clause 2(1X3XD) of Rule XI of the House of Repre-
sentatives, the committee has not received a report from the Com-
mittee on Government Operations pertaining to the subject of this
bill.
INFLATION IMPACT STATEMENT
- Pursuant to clause 20 x.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 infia-
, ? tionary impact of the present' legislation, .further, the. bill. does ..not
? pirivide,..SpOifie,j)tidget ? authority. but rather authorizations
. .'propriation Hence, any mftationari imp4tt *mild.: depend on the
Arbounta'actnalb? ?appropriated and the strain 'that. short Supplies of
Material's, production capacity or 'Other economic .resources would
place on industrial capacity.
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,
H.R. 4387, as reported, 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 change is proposed is shown in
roman):
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18
TITLE 10 UNITED STATES CODE
Subtitle A?General Military Law
?
PART I?ORGANIZATION AND GENERAL
MILITARY POWERS
?
?
CHAPTER 4?OFF10E OF THE SECRETARY OF DEFENSE
? ? ? ?
? 136. Assistant Secretaries of Defense
(a) There are [eleven] twelve Assistant Secretaries of Defense,
appointed from civilian life by the President, by and with the
advice and consent of the Senate.
(b)(1) The Assistant Secretaries shall perform such duties and ex-
ercise such powers as the Secretary of Defense may prescribe.
(2) One of the Assistant Secretaries shall be the Assistant Secre-
tary of Defense for Reserve Affairs. He shall have as his principal
duty the overall supervision of reserve component affairs of the De-
partment of Defense.
[(3) One of the Assistant Secretaries shall be the Assistant Sec-
retary of Defense for Command, Control. Communications. and In-
telligence. He shall have as his principal duty the overall supervi-
sion of command, control, communications, and intelligence affairs
of the Department of Defense.]
(3) One of the Assistant Secretaries shall be the Assistant Secre-
tar)' of Defense for Intelligence. He shall have as his principal re-
sponsibility the overall supervision of intelligence and intelligence-
related activities (including intelligence oversight. counterintelli-
gence.? covert action, preparation of threat assessments, and intelligence: support for net assessments) of the. Department of. Defense.
Such responsibility includes authority for coordination of all *policY.-
planning budgetary, and management Matters within 'the Depart:
ment respecting such aetivities. ?The Assistant Secretary shall report
directly, without intervening revieW or approval, to the Secretary
and D'eputy. Secretary of Defense.
CHAPTER 21?DEPARTMENT OF DEFENSE INTELL1dENCE
MATTERS
Sec
421. [Funds transfers for foreign cryptologic support ] Funds for Foreign Crvtf:lo
0: Support.
422 Counterintelligence.officia) reception and representation expenses
? 423. Authority to use proceeds frott.Y.,courinteiligence.operations of the rnilitar
: 44..Dziclos.ure:OfiirXdrtizeition,41..P.iid informittiort.. exemption - for Defense.
? - - ?
,k.'2 ? . .
,#g
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S CODE
y Law
?
GENERAL
,31" OF DEFENSE
cretaries of Defense,
it, by and with the
such duties and ex-
may prescribe.
the Assistant Secre-
have as his principal
lent affairs of the De-
be the Assistant Sec-
imunications, and In-
v the overall supervi-
'_nd intelligence affairs
the Assistant Secre-
ye as his principal re-
.,ence and intelligence-
t, counterintelli-
essments. and intelli-
epartment of Defense.
rdination of all policzY,,
'rs ? within. the Deport,
Secretary shall report
oval, to the Secretary
:SE INTELLIGENCE
Funds for Fc-gr. Cr7,ptolo-
lor. expense,
E' operation, of the militarv
ext-mption. for: Dcfensi
19
[? 421. Funds transfers for foreign cryptologic support
[The Secretary of Defense may use funds available to the De-
partment of Defense for intelligence and communications purposes
to pay for the expenses of arrangements with foreign countries for
cryptologic support.]
? 421. Funds for foreign cryptologic support
(a) The Secretary of Defense may use appropriated funds available
to the Department of Defense for intelligence and communications
purposes to pay for the expenses of arrangements with foreign coun-
tries for cryptologic support.
(hi The Secretary of Defense may use funds other than appropri-
ated funds to pay for the expenses of arrangements with foreign
countries for cryptologic support without regard for the provisions of
law relating to the expenditure of United States Government funds,
except that?
(.1) no such funds may be expended, in whole or in part, by or
for the benefit of the Department of the Defense for a purpose
for which Congress had previously denied funds, and
(21 the authority provided by this subsection may not be used
to acquire items or services of value for the United States that
could otherwise be obtained by the use of appropriated funds.
(c) Any funds expended under the authority of this section shall
be reported to the Select Committee on Intelligence of the Senate
and the Permanent Select Committee on Intelligence of the House
pursuant to the provisions of title V of the National Security Act of
1947. as amended.
?
[?1607. Exemption from disclosing organizational and personal
data
[Notwithstanding the provisions of any other law, and except as
provided herein and as required by section 552 or section 552a of
title 5, United States Code, the Defense Intelligence Agency shall
not be required to disclose the organization or any function of the
Defense Intelligence. Agency .or the names, official titles: occupa-
tional series, grades;.salariesor numbers of personnel employed by
Such Agency. Thi S 'Section shall not apply to information provided
the Congress.] .? .
?
?124. Disclosure of organizational and personnel information: ex-
emption for Defense Intelligence Agency
(a} Except cs required by the President or as procided in subsec-
tion lb& the Secretary of Defense may not be required to disclose in-
formation with respect to?
(1) the organization or any function of the Defense Intelli-
gence Agency,- or
(2) the number of persons employed by or assigned or detailed
to such Agency or the name. official title. occupational series,
grade. or .cilar.v Of any such person.
Ibi This.section does not appl_Y---
. (I i withyrespect to the. provision of information- to Congress; or
. . ?? ? . ?
?
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20
(2) with respect to information required to be disclosed by sec-
tion 552 or 552a of title 5.
SECTION 5315 OF TTTLE 5, UNITED STATES CODE
? 5315. Positions at level IV
Level IV of the Executive Schedule applies to the following posi-
tions. for which the annual rate of basic pay shall be the rate de-
termined with respect to such level under chapter 11 of title 2, as
adjusted by section 5318 of this title:
Deputy Administrator of General Services.
Associate Administrator of the National Aeronautics and
Space Administration.
Assistant Administrators, Agency for International Develop-
ment (6).
Regional Assistant Administrators, Agency for International
Development (4).
Under Secretary of the Air Force.
Under Secretary of the Army.
Under Secretary of the Navy.
Assistant Secretaries of Agriculture (7).
Assistant Secretaries of Commerce (11).
Assistant Secretaries of Defense [(11)]a21.
Assistant Secretaries of the Air Force (3).
Assistant Secretaries of the Army (5).
Assistant Secretaries of the Navy (4).
Assistant Secretaries of Health and Human Services (4).
Assistant Secretaries of the Interior
Assistant Attorneys General (10).
Assistant Secretaries of Labor (10), one of whom shall be the
Assistant Secretary of Labor for Veterans Employment and
Training.
Assistant Secretaries of State (15).
Assistant Secretaries of the Treasury (7).
Members, United States International Trade Commission (5;
Assistant Secretaries of Education (6).
General Counsel.:-Oepartment of Education.
Inspector General, Department of Education.
Director of Civil Defense, Department of the Army.
0
?
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