WASHINGTON ECONOMY WAVE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R001500040001-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 121
• Document Creation Date: December 12, 2016
• Document Release Date: August 26, 2002
• Sequence Number: 1
• Content Type: NSPR

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1 year is "economy." In' , order to
impress Congress and,the American.
people, as"well ?as1take':one` of the
main issues 'away from the. Republi-
cans, President; Johnson,: has` ordered
everybody in the Federal' Govern-
ment to make every possible cut in
expenditures. No'one has been ex-
.
,
.
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.. 190
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ant, whosays, "It's all taken care of,
sir. We're; sending out to a Chinese
restaurant`for 600 meals. The Comp-
troller says we can rsave $650 without
V F~1d:1,-LJ I' ' 1?' nnliu a White ?I-jou a cook"
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your car away from you, Bob. Now `It comes in individual cartons,,
calm down. Why don't, you take a.. Mrs
.
Johnson fN*.
`the ? ssistanf a
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WHITE HOUSE AND BOB DIRECTIVES
TABLE OF CONTENTS ?
1. Memo dated November 30, 1963 to Heads of Departments and
Agencies signed by President Johnson re economy.
2. Memo dated December 7, 1963 to Mr. McCone from Director, BOB,
re report to President on cost reduction.
3. Memo dated December 11, 1963 to Heads of Departments and
Agencies re President's statement to Cabinet members on his
decision to tighten management and hold down employment in
the Federal Government, signed by Director, BOB.
4. Memo for the Record dated 16 December signed by DDCI re telephone
conversation between Mr. McCone and Director, BOB on CIA Budget.
5. Memo dated 24 December 1963 to Heads of Departments and
Agencies signed by President Johnson re "Control of Federal
Employment".
6. Memo dated 26 December 1963 to Heads of Departments and
Agencies transmitting President's memo on control of Federal
Employment.
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Washington
November 30, 1963
MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND AGENCIES
I have pledged that the Executive Branch will be administered with the
utmost thrift and frugality; that the Government will get a dollar's value
for a dollar spent; and that the Government will set an example of pru-
dence and economy.
To carry out this pledge, I intend:
To examine agency budget requests with the determination
to hold the 1965 Budget to the barest minimum consistent
with the efficient discharge of our domestic and foreign
responsibilities.
To give you my full support in your efforts to achieve
administrative or legislative changes which will eliminate
unnecessary procedures, curtail or drop programs of low
utility, institute consolidations or other organizational
economies, and effect savings in procurement.
To support salary scales for civil servants, military per-
sonnel, and policy officials which will enable you to retain
and recruit talented, energetic, and imaginative employees.
To accord increased recognition to those governmental units
and individuals that make notable advances in providing
efficient service at lower cost.
To assist me in carrying out my pledge, I ask you:
- To assume personal day-to-day responsibility for making
your agency a model of good management and economical
administration.
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To press ahead vigorously with your program for manpower
control and utilization which you developed in response to
President Kennedy's directive of October 11, 1962.
To hold agency employment at or below the personnel targets
established in response to President Kennedy's statement to
the Cabinet of September 23, 1963.
To make clear to your staff that each Government employee
is responsible, not only for doing his assigned job to the best
of his ability, but also for devising and proposing ways to
improve his performance.
To seek the advice of Committees of the Congress, and of
private organizations and individuals, in finding ways to do
the public business more economically.
To submit to me promptly a report of major cost reduction
actions taken during the past year, and a statement of the
steps which you propose to take in the next year to tighten
your operations and effect savings.
The Federal Government has reason to be proud of its many recent achieve-
ments in management improvement. But we cannot rest on past accomplish-
ments. There are as many savings to be made in the future as have ever
been made in the past. The citizen's faith in free government is strongly
influenced by the extent of his confidence that public servants are alert and
efficient in conserving the Nation's resources entrusted to their care. For
this reason, we must work hard to reduce the costs of Government, not
only for the sake of the sayings to be made, but also in the interest of
vindicating the people's confidence in the institutions of democracy.
signed Lyndon B. Johnson
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 On December 11 General Carter sent this to
Approve&ojr Memkl se t/08i$tP6ix- $ b67 01400040001-3
un erstan paper will be for my signature to
DCT who, then, will forward with 'brief
penal letter' to Pres ? ?
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 Approved For F~eVAW /O~12~):`C.`7A DFA?O~N 665 YOTO
BUREAU OF THE BUDGET
OFFICE. OF
THL UIRLCTOR
honorable John A. INscCone
Director of Central Intelligence
: ashington, D.
!:'ear Mr. Met one:
A number of inquiries have come to me concerning the appropriate
procedure for responding to the President's memorandum of
November 30, 1963, in which he asked each agency head for a report
on cost reductions achieved in calendar 1963 and planned for 1964.
I believe that the i-'resident expects a personal response from each
agency head, rather than an institutional type of submission. At the
same time, I think it would be desirable to maintain a certain degree
of consistency in the content and presentation of the material, so that
it car be analyzed meaningfully by the President and his staff.
Hence 1 thought you might find it useful if I were to suggest the
rzeneral points that might be covered, leaving the rest to your judgment.
I suggest that your report might well begin with a brief personal letter
from you to the 1-resident, giving your own perspective and judgment
as to (1) what has been accomplished during the past calendar year,
(2) what the potential is, as you see it, for solid improvements in the
coming year, and (3) what it will take in the way of administrative
decisions or legislation if the full potential for savings is to be achieved.
'-or the remainder of the report, I would suggest that you deal with the
following tc,,;ical :ategcries to the extent that they are applicable, and
add to t :err: w :ere they do not cover all of the significant types of
actions being taken in your agency. In each category, it would be well
to explain concisely what the problem is and the kind of action being
taken, together with the best estimates available concerning savings
already realized (in dollars or manpower or both), targets set for the
coming calendar year, and a description of projects planned. Where
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legislative relief or authorization is needed, this should be indicated.
,['l e categories I would suggest are these:
I) Reorganizations and consolidations
(?) Simplifications of systems and procedures
Conversions to high-speed data handling equipment
".'.aragement surveys
Improvements in forward planning
User charges
Employee incentives
Manpower economies, including productivity standards
Procurement and purchasing methods
Property management, including acquisition and disposal
The foregoing categories relate essentially to management practices.
The President's memorandum, in addition, speaks of eliminating or
curtailing programs of low utility. I believe that the President would
be particularly gratified to have your comments on this question- -either
as a part of tr:is report or as a separate communication.
You will note that the President has asked that your report be submitted
to him promptly. a believe that a reasonable construction of this request
would suggest that your report be sent to the President in December
or early January.
if I can be of assistance in any way, please let me know.
Sincerely,
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M/Record - 12 December - O/Exec Director
Orig. to DCI, copy to DDCI.
Copies to: DD/P, DD/I, DD/S, DD/S&T, OGC, IG and
O/Budget, PA & Manpower, with note, This
is for your information. The Budget Office
will be in touch with you as to the response
that will be made. "
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BUREAU OF THE BUDGET
WASHINGTON, D.C_ 20503
December 11, 1963
ME ORANDUVI TO HEADS OF DEPARTMENTS AND AGENCIES
PERSONAL AND URGENT
Enclosed is a copy of a statement which the President made this
afternoon to the Cabinet. The President's statement makes abundantly
clear his decision to tighten management and hold down employment in
the Federal Government.
Cabinet members were asked at the meeting to make a personal and
searching review of their 1965 budgets, and to find further reductions
in expenditures and personnel beyond those already made in the budget
review process.
The purpose of this memorandum is to direct the President's request
to all agency heads.
At the President's direction, I ask:
(1) That you undertake immediately a personal reexamination
of the appropriation, expenditure, and employment figures con-
tained in the most recent tentative allowance which you have
received from the Bureau of the Budget. (Bureau officials will
be in touch by telephone with those few agencies which have not
yet received tentative allowances.)
(2) That you identify those further reductions in appro-
priations, expenditures, and personnel (stated separately for
end-of-year employment in permanent and in other positions)
which can be achieved through tighter management, better personnel
utilization, postponement of program expansions, curtailment of
programs which are not of the highest urgency, and other steps
appropriate to a time of severe budgetary stringency.
(3) That you notify me in writing of the nature and
amount of these reductions by 6:00 p.m., Friday, December 13,
so that the President may proceed without delay in his personal
review of each agency's submission.
Kermit Gordon
Director
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IMMEDIATE RELEASE
Office of the White House Press Secretary
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
THE WHITE HOUSE
STATEMENT OF THE PRESIDENT TO
THE CABINET
In my memorandum of November 30, I asked each of you
"To press ahead vigorously with your program for
manpower control and utilization which you
developed in response to President Kennedy's
directive of October 11, 1962.
"To hold agency employment at or below the
personnel targets established in response to
President Kennedy's statement to the Cabinet
of September 23, 1963."
You and I know we can hold the line on employment without causing real
damage.
I am depending on your personally to deal with this problem.
Nine out of ten Government employees do a full day's work for a day's pay --
but I want that tenth man to measure up also.
We need to:
-- Cut out excessive paperwork because it breeds
overstaffing.
-- I Measure workloads carefully.
-- Strip down overly elaborate organizations.
In short, I want you to give as much attention to management as you do to
your programs.
For fiscal year 1965, the Budget Director must have your full support in
carrying out my directive to hold down Government employment. The 1965
Budget total for year-end civilian employrnctnt Tnutt be h&l `bi'k&J, the
levels in the 1964 and 1963 budgets. This can be done.
Your budgets should reflect economies from better management and higher
productivity resulting from improved methods, procedures, organization,
and employee incentive. A good manager can do all of this.
I intend to disapprove any budget request for more personnel except where
the facts leave rre no choice.
This means that I will grant increases only when they are absolutely necessary
to meet fixed commitments; to properly carry out new legislation, and to
do work of the highest national priority.
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Federal employment has, by your efforts, been held well below the growth
rate of our population and our economy.
Regular civilian employment grew only by 686 persons from October 31,
1962, to the same date in 1963.
If it had followed the trend of State and local government it would have
risen by 106, CCU.
But these facts do not justify a continued upcreep in Federal employment.
They do not justify us in having ten thousand, or one thousand, or even one
hundred more aployees than we need.
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 ?xecut+_va RegiBtsy 1
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16 December 1963
1. Mr. McCone telephoned me from his home at 1:35 to tell
me that he had just completed a telephone conversation with
Mr. Gordon, Director, Bureau of the Budget. Mr. McCone said
that he had informed Gordon that the Agency would accept the
compromise figure for the FY 1965 Budget, provided that we were
not obliged to accept the partitioning and segregation proposed.
The Director was referring specifically to the denial of FMSAC
and other changes proposed by Amory. The Director pointed out
that within this compromise budget figure we were going to live
on the personnel ceiling proposed by the Bureau of the Budget and
as accepted in Mr. McCone's letter of the 13th. Mr. Gordon
asked what our legal restrictions were on reprogramming within
the Budget, and Mr. McCone replied that there were none. Mr.
Gordon agreed that we would not have to accept Bureau of the Budget
partitioning and segregation but that if we did any really extensive
reprogramming, we would, of course, let him know. The Director
stated his confirmation.
2. Mr. McCone pointed out that this budget for '65 does not
allow for expansion of many of our planned operations and specifically
does not include communications requirements for the State Department
as expanded by the Orrick Committee. He said he would continue
whatever service he was presently performing but that was all. The
Director pointed out that when he had met with Gordon, Staats and
Bell previously that Gordon had denied the validity of actions taken
by the Orrick Committee, and that, based on this denial, Mr. McCone
had eliminated these requirements from his budget, both as to funds
and the increased personnel needed to implement it. The Director
pointed out that while he had not yet received his '64 authorization
from the Appropriations Subcommittee, it was indicated that approximately
for communications would be deleted from our '64 Budget,
and that he expected a further letter from the Hill in this regard.
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3. Gordon said he would have to talk to Staats and would call
the Director back. The Director told him to get in touch either with
me or Mr. Kirkpatrick since Mr. McCone would be out of town for
the rest of the week.
4. The Director asked me if this position was all right and I
said absolutely. I also pointed out that because of the communications
problem the Budget may well come back and say they will allow us
additional money and personnel to take care of that. Mr. McCone
said that this will be fine as far as he is concerned and asked me to
pick it up from there.
5. I told Mr. McCone that on the basis of this conversation,
we would proceed as originally planned for FMSAC, and Mr. McCone
said, "Yes, by all means."
STAT
Marshall S. Carter
Lieutenant General, USA
Deputy Director
-"-Orig - DDCI (Noted and ret'd by Ex Dir)
1 - DDCI Budget Book
1-ER
1 - Mr. John Clarke
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THE WHITE HOUSE
December 24, 1963
! 'IORA.NDU FOR 'T[l Hi::ADS OF DEFA:?ZME?N'TS AND AGENCIES
::>uab ject : Control of Federal i4nPloyment
The Budget which I will send to the Congress next month will not
only halt i;he growth in Federal employment, but will actually make
a small reduction f ra i this year's level.
even though nothing like this has happened in the last decade, I
urn still unconvinced that we are getting the maximum possible out-
put per employee. I believe we can do better.
The Budget Director will. shortly notify you of the year-end maximum
employment levels which result from my final budget decisions for
both fiscal years 064 and 1965.
Let me mace it clear that these end-of-year figures are ceilings,
not goals.
As soon as these figures reach you, I want you personally to re-
exurnine your employment situations and to establish new end-of-year
targets below these maximums. I want you to report these targets
to me promptly. I will review them personally.
.hen I approve new targets for your agency, you will put them into
effect and make strenuous efforts to achieve them through tighter
rriatinagement, redeployment of personnel, simplification of procedures,
and stripping work to casentials.
I will expect you to make quarterly reports to me, beginning
April 1, 1964, on what you have uccompl:i.shed under this effort.
F i.nally, once I have given my approval to your new targets, they
are not to be exceeded without my explicit approval.
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EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON 25, D.C.
OFFICE OF
THE DIRECTOR
December 26, 1963
M ORANDUV1 FOR HEADS OF DEPARTMENTS AND AGENCIES
The President has asked me to transmit to you the attached
directive concerning control of Federal employment. You will
note that the President asks for prompt and personal action on
your part, and that he plans to review each response personally.
The initial action required is an identification of new end-of-year
employment targets for FY 196+ and 1965 below those allowed your
agency by the President's decisions on the 1965 budget. If you
have not yet been notified of that allowance, you will be advised
immediately.
As guides to the preparation of your report to the President, I
would suggest the following:
1. That the new targets for large agencies be broken
down into subtargets for each of the major constituent
parts of the agency.
2. That the targets differentiate between permanent and
other employees.
3. That the new targets be achieved by methods which
produce meaningful Government economies, rather
than by devices of a merely statistical nature.
1. That this report be submitted to the President no
later than January 10, 1963.
The form and content of the quarterly progress reports also required
by the President will be the subject of a future memorandum.
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INTERNAL AGENCY DIRECTIVES
TABLE OF CONTENTS
1.
Excerpts from Minutes of the Morning Meetings regarding the
President's Memorandum on Government Economy.
dated 4 December 1963, subject: Cost Consciousness.
3.
Memorandum dated 4 December 1963 to General Carter from DCI
on President's memorandum on economy.
4.
Action Memo No. 319 dated 6 December 1963, subject:
Memorandum on Government Economy.
President's
5.
Action Memo No. 320 dated 6 December 1963, subject:
Strength: Entrance on Duty of New Employees.
On-Duty
6.
Action Memo No. 321 dated 6 December 1963, subject:
of Demands on Agency Support.
Reduction
7.
Action Memo No. 326 dated 12 December 1963, subject:
Year 1965 Budget Levels.
Fiscal
8.
Action Memo No. 327 dated 12 December 1963, subject:
to the Field on Economy Measures.
Messages
9.
Dispatch to All Chiefs of Stations and Bases dated 1=2 December 1963
from Chief, KUBARK re President's Memorandum on Government
Economy.
10.
Action Memo No. 328 dated 12 December 1963, subject:
of -Personnel Ceiling (To DD/I, Attn: NPIC)
Reduction
11.
Action Memo No. 329 dated 12 December 1963, subject:
of Personnel Ceiling (To DD/S)
Reduction
12.
Action Memo No. 331 dated 12 December 1963, subject:
Measures (to DD/P)
Economy
13.
Action Memo No. 332 dated 13 December 1963, subject: Economy
Measures (to DD/S&T)
14.
Action Memo No. 333 dated 13 December 1963, subject: Economy
Measures (to DD/I)
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INTERNAL AGENCY DIRECTIVES
TABLE OF CONTENTS (cont'd)
15. Action Memo No. 334 dated 13 December 1963, subject: Economy
Measures (to DD/S)
16.
25X1
17. Action Memo No. 335 dated 16 December 1963, subject: Referral
to the Executive Director-Comptroller of Certain Categories of
Requests for Support.
18. Action Memo No. 330 dated 18 December 1963, subject: Personnel
Ceilings (To DD/S)
19. Action Memo No. 338 dated 20 December 1963, subject: Manpower
Levels and Controls (To DD/P)
20. Action Memo No. 339 dated 20 December 1963, subject: On-Duty
Strength Controls (to D/Pers)
21. Action Memo No. 340 dated 20 December 1963, subject: Manpower
Levels and Controls (to DD/S)
22. Action Memo No. 341 dated 20 December 1963, subject: Manpower
Levels and Controls (to DD/I)
23. Action Memo No. 342 dated 20 December 1963, subject: Printing
(to DD/I)
24. Action Merno No. 343 dated 23 December 1963, Subject: Manpower
Levels and Controls (to DD/S&T)
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EXCERPTS FROM MINUTES OF THE MORNING MEETINGS
1. 3 December 1963: DCI spoke to the meeting of the utmost seriousness
which he attached to conducting the Agency's affairs with attention
to economy. He asked that a directive be issued that one of the
qualifications for people at the level of chiefs of station, their equivalent
and above, should be due attention to economy and that this element
should be reflected in their fitness reports. He referred specifically
to the question of communications which is to be the subject of a
separate meeting later today. He asked that all components restudy
their needs and requirements and suggested that the Fiscal Year 1964
level was a desirable goal but not necessarily the best we could do,
and that it was possible that we would have to move back to the
Fiscal Year 1963 budget levels in money and manpower. He mentioned
the President's personal concern with this problem, including the
outflow of gold. The DCI also asked John Bross to study the question
of duplication throughout the Community with particular reference to
NSA and DIA.
2. 4 December 1963: Bross noted that he planned to meet with Gilpatric
with regard to DCI directed Bross to attend the
USIB meeting in connection with the President's letter on economy.
3. 4 December 1963: DCI directed attention to the President's letter of
30 November on economy. He plans to hold an executive session of
USIB today with principals, John Bross, and all committee chairmen
on this subject.
4. There was a discussion of the Agency budget, the need for economy
and the need for guidance from the DCI before taking specific action.
(5 December 1963 meeting)
5. 6 December 1963: Executive Director discussed the current need for
economy.
6. 11 December 1963: Mr. Kirkpatrick mentioned that an early response
would be prepared to the Director of the Budget on good management and
economy. DCI directed that a thorough going study by the end of
December or the first of January was in order and should include
specific justifications for all personnel overseas, all personnel in
headquarters and Agency staffs, and a thorough going study of the
situation in NPIC and in Commo. The DCI reviewed again the need
for control to prevent expansion of the Agency in people and budget,
and cited Secretary of Defense's achievement in reducing the number
of civilian employees in the Department of Defense.
"rq
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EXCERPTS FROM MINUTES OF THE MORNING MEETINGS (cont'd)
7. DCI discussed the second message from the President about the
need for economy and directed the DDCI, the Executive Director,
and the deputies to study the personnel and money situation from the
point of view of several levels. (12 December 1963 meeting)
8. 12 December 1963: The DCI mentioned a letter which he plans to send
to Secretary McNamara about economy in the Intelligence Community.
This he wishes to discuss with Bross and DDCI.
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 X1)0/
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This Notice Expires 1 March 1964
I
4 December 1963
COST CONSCIOUSNESS
1. Agency regulations specify that all employees with supervisory
responsibilities must be rated on their ability to supervise. "Cost consciousness"
and effectiveness in the "use of personnel, space, equipment, and funds" are
among the managerial and supervisory responsibilities which are listed for
consideration in the preparation of Fitness Reports.
2. Effective immediately, evaluation of these factors is mandatory
for all employees who have responsibilities for managing Agency assets.
Each Fitness Report shall include an evaluation of the employee's effective-
ness in performing his duties with maximum economy or an explanation of
why such evaluation is not applicable.
25X1
25X1
DISTRIBUTION: AB
Marshall S. Carter
Lieutenant General, USA
Deputy Director of Central Intelligence
S-E-C-R-E-T
GROUP 1
Excluded from automatic
downgrading and
declassification
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 Approved For Release 2002/08/28 : CIA-RDP80B01676R0010040001-,
.xecutive ??egisrty
4 December 1963
MEMORANDUM FOR; General Carter
I wish to direct your particular attention to the attached
message received from the President. The views contained
therein are consistent with my Own statements at staff a erettngs
in recent days.
I request the President's message be given most serious
consideration. The deputy directors and other appropriate heads
of Agency components should be directed to convene their staffs
immediately to read and discuss this message from the President.
They will govern their plans and programming in accordance with
the provisions of the Presidents message. and submit In writing
as soon as possible thresh the qty Director of Central
Intelligence a report to n-A can gr aosed actions to meet the
President's desires.
The Agency's programs should be thoroughly reviewed at
least every 90 days, and periodic reports submitted to me through
you on actions taken to accomplish a continuing improvement in the
management of the Central Intelligence Agency and the resulting
4006oft-4.s or sates.
1I
TC
l - DCI Chrono
I - LOCI #5
,
Appr d Fq[R 1eas&204f/08/28 : ,CIAM
P4? _ - r
JOHN A. Mc CONE
Director
R001500040001-3
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s p Director for ;3s:touce "d `Z ecMi oL y
44a peztor G+ t4eeal
Gs ret1 Patel
OFFICE OF THE 1)IItECTOII
i ecaYtive jirvctor-G ptrailer
Depaitty Director for IntoLlizcnce
I
'Depttuy sitract:o; ft7x plant;
gaeputlr wractor for l-vart
SUBJECT ' . xeei t is ien orat Uw& on ctbve r 3 meatat ?coasxe y
i_ Yo *Gra j:l aattentio s to directed to t h* t + ct, rtes momoma d%u
L104, xx
ads of .tietaa.rtts".-etts and Agencies, dated Novear.he; J.
_~.~ ., ... the ratt.i 3.etat of the United tatOe; 'COPY ie attacitaetc:, Ir' tie b" nat" that he
Lute-xtive Dxa ach Wilt be a4 iii&!tere4 with 4t=,,oat t trW and irugal.ity amd wkil
not an agar." 1e of oc y. it 1a 3tr .t. that the i"reiiderxt'a + a - c t
ftivela most 40xi a, COULiUtL(u*. I.P?Y c#a taa illaa at Otis. aid that -O' cauva utr -
a ihod
Presideat'e start .e t. You Shomid also dtacuei With ya r e fts the
,wFtereby t h* Ages y Will falter con pty With botti thee *paci is regaaaeata an the
r . sr- t~z:aau .
i4 tout of this
.0
Z ratarther alt plaxae aix.r ~ ~ru aranexar wilt to in strict ac,cs rs cea with
Z
. ,
prbvlet tau of t VrreatieaI's x 0040 e, Yew will 84b>zhit 1xa w?rt$La IS Vic,
1--or to t Ieactaetive irect+ra ~ c r :;pt .i+aar the acti.cnm which YOU pr- 66 W
taste wlthtz Yeur area to Meet the ?reel tnt'e deetrea. het !'~ + tv* $ 5 ~-
4p + ter will a aser .. s for a.:r+a, with ~C :a U t &Uft rec : as on ,, *&e N
I
1.. Ft rtlu r, the Exetcetive ractor- ' eUoiler ie direct" to -abl'u
ar ei1vw with y at least uv?,ry ')0 day i the Agencys par04Ts4xa to ect a c0Z6-
ec x at or -.vtuga. be tayec .tUva kirset ar - pt t^o3 i or will s it pa ti
e c reports *a tbaso reviews to me.
SUSPENSE DATE: Is
or 1.963
~- - (CLASSIFICATION)
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 Approved For Release 2002/08/28 CIA-RDP80BO1676R001500040001-3
'. ~t2 , ..~ YATSLi,r th n +: A e tti~+Eiy 4?t~i13 f;:7rthcoli. ng r tiv*. uLtKi*r to
Till he l ..xj;)1 d k a t r priority "Dais botA a U: cmAtOtA, Arad
+71 i1L i?a z Y~Y.e ra1A CL2 JL
.6"-A y;'!~xi.{ ? '-0.ISE.'..Y.{:~'4a"S'ir~.~T.~wr a.s s'?%2':.3'GtI~+?"
M L:9i?JD
+ eta?~~e c31
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OFFICE OF THE DIRECTOR
or of t.: aarom"e k
rot3o i ct
loot a xcu~4"- etra a on i wy of o x a 4
aU; ve Rtxa ;a 1+)1 t, p atr,u 4 ot 41 can as taCIA
#'#AGdr-
34, .
vu-duzy a -tarot a or
eIFe +1S) a 1 or cz s t1 it o ih vita falso* t of
tomp*ownt above tb a 347 r ave m t 1' +3 I0,ir,I Without ir 't f
1 3 Vka o lows w4u ;ar4tcto4 only for *P403 3t t
as pr city 113-t. for mace o xla:ut. The A- ivecter -`er0 I 3 .I e
l'& as of tb t -~t t t t + 3t ar1 r a t
Z. - tb. +s:, wo will b*
i a t s cQ wt*, etlet d.O tof d t Qaa* tj, s o b to l ifl a
d -Vythe 711mr. 04t* of Me V,04 get.
(signed) Lyman B. Kirkpatrick
SUSPENSE DATE:
25X1 I
`'~/ (:srigina
- Addressee; I - ER;LV- ExecDir
(CLASSIFICATION
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 Executive nagistr :
76R001500040001-3
OFFICE OF THE DIRECTOR
TO
Action Memorandum No. A=321
Deputy Director /Intelligence
Deputy Director/Plane
Deputy Director/,Science & Technology
Deputy Director /Support
Inspector General
General Counsel
Reduction of Demands on Agency Support
1. In view of the Presidential instructions on conservatic n
of money and manpower, it is easeenttal as a first steep that the operating
components of the Agency reduce current demands on support cormponeents.
At the present time we do not have control rn*chantsr.'m* limiting the opeeratin;
components their requests on support components. It may be necessary,
we are currently studying this problem. to establish limits or quotas
for support.
2. The following are illustrative of the areas of support
demands which are currently costly in money and -manpower to the Agency
and in which economies can be effected. If economies are not effected in
thee. areas it may be necessary to cut back in the operating units In order
to carry the support load.
a. Re _ sts for Security Clearances. At the present
co of Security is conducting full field investigations and grant-
ing clearances on nearly twice, the number of applicants that enter on duty;
This to extremely costly and whereas It should be expected that each
there will be some applicants who will decline employment an the basis of
having made other arrangements during the period of their iwr.stigati
present high percentage is intolerable. For your Information the following
istics show the number of applicants approved, the number entering on
and the number of applicant cases cancelled after approval for the
Months of August, September and October 1963.
SUSPENSE DATE:
CO FI FINTIAL
6 Deco mber 1963
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September
August
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App-- pro ved
EOD's
Cancelled
b. Recruitment Program. An identical problem exists in
our recruitment program in which the number of potential applicants to be con-
sidered or approached is far out of proportion to the number that we actually
process and try to enter on duty. This must be cut back through greater
selectivity on the part of the operating components and it may be necessary here
to establish a quota for each operating component.
c. Communications. I
has resulted in increases in personnel strength in the Office of Communications,
the Cable Secretariat, and indirectly in other components throughout the organiza-
tion which are affected by the increased volume of paper work and action required.
A,gain there must be some method devised for limiting communicatioziss. Unless
we can voluntarily reduce cable traffic we may be forced to establish arbitrary
limits.
d. Training. Our training establish-n- ie
s severely straied
n;
in fact to the extent that the Medical Staff is seriously concerned about the health
cork load. We all recognize that training is an absolutely
i
l
essent
a
require
-
ment in order to continue the development of well qualified professionals and we
also believe that it is desirable to insure that all personnel requiring training
receive it. On the other hand, operating components must insure that personnel
assigned to training courses are those who will utilize their training and are the
best qualified people available.
e. Paper Work, One of the current invisible costs in the
Agency is the handling of the ever increasing volume of paper work. This
includes not only cables and electronic communications but memoranda, reports,
etc. The preparation of every one of theme costs both money and manpower
and an investment in computers, automatic retrieval systems or file systems.
Again there are no arbitrary regulatory mechanisms, and these may have to be
established unless we can limit the flow of paper.
25X1
25X1
B01
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x The Ageea y ma ntal is a tares and
at a pres teev.1 td re try a str*sgth of the
aS the strength of itr ps3otla e.ta isbe? eft. under preseeiz
eeseatttai that We cut the deexrast+ s s
Present M&apow*r.
3. The above to designed at a eetaeter, eat for your
eere ee ? ta3ag elsewhere the agency to order to aece pltsb our mission.
Any ustst once of sa eeeettous that the addressees can era!
arstefeity received,. but I think It to cI.aziy t ateed that U01ee8s w
steps to cut back re treerx. tats on these support elements . we win wee x;
.(signed). Lyman B. Kirkpatrick
Lyn B.
?*rclati . TIr.Ctar-C ptret eer
LBK:drm
Distribution:
Original - DD/S&T
5 - other addressees
Q- ER
1 - ExDir p
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 Approved For Release
CET
OFFICE OF THE DIRECTOR
fa` ii1 all AA,
A-326
~n Memorandum No.
Deputy Director/Intelligence
Deputy Director/Plans
SUBJECT :
d (2) that FY '65 allocations will not exceed FY 163 obligation
2. For your information the D13./S has already instituted such
an action within his offices and I will be examining directly with the DD/S&T
the consequences of cutbacks in his area. In making these studies I would
suggest that consideration be given to not only the priorities within your
directorate but also overall priorities as far as the Agency and the total
U. S. intelligence effort is concerned. I would also suggest that if there are
areas in which your components are engaged and in which other agencies
are also engaged, you forward suggestions as to whether you believe that
your activities should cease or those of other agencies. In making this
examination I would strongly recommend that all units bear in mind that in
examining manpower controls henceforth we will be looking not only at the
utilization of staff employees but also at the utilization of contract personnel
or individuals in any way compensated by the Agency through subsidiaries
or proprietaries.
3. It is requested that these studies be completed by not later
than 20 December. We will be contacting your office at that time to set up
meetings to review Agency requirements for economy.
SUSPENSE DATE:
_ LBK:drm
Distribution: O-DD/I 1-John Clarke
Aaaroved orrmlease~ 0 MLAM slj
GET
Fiscal Year 1965 Budget Levels
consequence of reduced levels of operation on the assumption
December 1963
A
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Would you have undertaken on a priority basis an examina-
t FY 165 allocations will not exceed those in the FY 164 Congressional
(signed) Lyman B. Kirkpatrick
Lyman B. Kirkpatrick
Executive Director-Comptroller
Excluded ngr flg a di
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 OFFICE OF THE DIRECTOR
II
25X1
Action Memorandum No. A-327
ent be cleared in advance with this office. Txa
Intelligence
Plans
ctorl Science & 'technology
actor/Support
Messages to the Field on ' onomy Measures
It I. requested that henceforth any cables or dispatches sent
field units concerning economy measures now being instituted
tent to not only to insure a coordinated effort but is nec.eas y
to keep the DD CI and myself Informed of what steps are b :g
(signed) Lyman B. Kirkpatrick
Lyman 8. Kirkpatrick
cutiv'e Dtrector.Cornptroller
LB K: drm
Distribution:
4 - Addressees 0DDCI
1 - D/Budget/PA/Manpower 1 - ER
SUSPENSE DATE: 1 - ExDir
CONFIDENTIAL
-cno~r I
Excluded tram automatic
downgradlog and
declassification__
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12 December
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 CLASSIFICATION
PROCESSING ACTION
DI
: I-RDP80B01676R0
E C R E T
S PA'T (
MARKED FOR INDEXING
TO
All Chiefs of Stations and Bases
X
NO INDEXING REQUIRED
INFO.
ONLY QUALIFIED DESK
CAN JUDGE INDEXING
FROM
Chief, KUBARK
MICROFILM
SUBJECT
President's Memorandum on Government Economy
ACTION REQUIRED ? REFERENCES
1. Attached is a Presidential message concerning economies in the
Government. Quoted below is a memorandum which I have addressed to
the chiefs of all of the major KUBARK components in Headquarters:
111. Your personal attention is directed to the text of the memo-
randum for the heads of Departments and Agencies, dated November 30, 1963,
from the President of the United States; copy is attached. In this he notes
that the Executive Branch will be administered with utmost thrift and frugality
and will set an example of economy. It is directed that the President's mes-
sage be given most serious, continuous, and compelling attention and that
you convene your staffs immediately to read, discuss, and receive the full
impact of the President's statement. You should also discuss with your
staffs the methods whereby the Agency will fully comply with both the specific
requests and the intent of this memorandum.
112. Further, all plans and programs will be in strict accordance
with the provisions of the President's message. You will submit in writing
by 15 December to the Executive Director-Comptroller the actions which
you propose to take within your area to meet the President's desires. The
Executive Director-Comptroller will assemble for me, with comments and
recommendations, these submissions.
113. Further, the Executive Director-Comptroller is directed to
thoroughly review with you at least every 90 days the Agency's programs
to effect a continuing improvement in the management of the Agency toward
the end of economies or savings. The Executive Director-Comptroller will
submit periodic reports on these reviews to me.
114. Actions under this directive, and forthcoming directives
under the same subject, will be handled on a top priority basis both as to
content and timing. "
CROSS REFERENCE TO
DISPATCH SYMBOL AND NUMBER
DATE
Q
12 December 1963
CLASSIFICATION
HQS FILE NUMBER
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CONTINUATION OF
DISPATCH
0
25X
2. I commend the above to your personal attention and direct that
you discuss them with your personnel at the earliest possible moment.
I consider it a personal responsibility of all supervisors to assist in this
effort.
Attachment
25
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 Approved For Release 2
OFFICE OF THE DIRECTOR
Action Memorandum No.
TO : Deputy Director (Intelligence)
ATTMTION: Director of National Photographic
Interpretation Center
on of Personnel Ceiling
1. 3 fective ediately the personnel ceiling for IC is reduced from
25X1 For the Binder of FT 1964 the recruitment and entry on..duty
,or new ;;~ oyesa v ill be progra d against this lower ceiling*
2. NPIC will submit` promptly to the Office of B.idget, Program Analysts
manpower, for my review, a report on the current xanpower mix at NPIC of
on.duty personnel, an aaaessment of the effect of operating at this new cellow
ing, and a new financial. plan for operating within the lower ceiling which
identifies related. dollar savings. It. is Iked to review the i sct on
NPIG programs and as necessary make adjustments through impending chm,-es in
other, lesser priority Agency programs.
(signed) Lyman B. I .irkpatric
LYMAN KlIMP.TRICC
Exetsu.tive 1?iroutor-Conirtrol'' ?
OBPA 4,ATh1C/RLS/ncl 12 December 1963
Distribution:
Orig. - Addressee
1 - Ex. Dir.
= DDCI
BIC ? i i~ r S V!,11 IV
SUSPENSE DATE:
SECRET
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 SECRET
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OFFICE OF THE DIRECTOR
Action Memorandum No.
Date 12 Deceber I6,
Director (8uppo
"' IWIONi Director of C unicetions
SUBJECT : Reduct Otn of Persor
I Celina
: ve i. ;nediate1:y, the Office of Camainicatione pere
ce;a.l : is reduced to the 30 i crv nber 11)6'k on-du'ty level. i e conetitu
ilir. reduction froz
2, The Director of Personnel is being advised that a limited a
now in the pipe line, to whin the Agency has made a fir- cc itt,
_ ...v be entered. on duty. This group includes approximately. L_jnew ei1ayee
destined for the Office of Com .araicationa. You viii want to work closely
with the Office of Personnel to determine that these EODs will be of the
open "mix" under the lower ceilb.ng. In any event, it is realized that
his new Input, the Office of Co unicatione personnel strength will
go over ceiling e.Lvxxxet immediately. I 91,a anticipating that attrition w-1.11
bring down this overage well before: the end of IY 19
Ca ricat ons viii enbrnit promptly to the Office of
F e i s and Manpower) for my review and approval.-, a nit
!thin the lower ceiling which identifies related doll
(signed) Lyman B. Kirkpatrick
a/BPAM/JMC/kfh (12 Dec 63 )
Distribution:
prig - Addressee
1 - Executive Director-Comptroller
Lmw B. 1 I A I
Executive Director Cc ptro11er
1 - DDCI SUSPENSE DATE:
I - Executive Registr3-
1 - O/BPAM
Excl!!de: f W i C:sisrnaii~
d: rn:"~ a A
Iu1VUl I~.u i~~~
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 Approved For Release 20
69--g" ~ffzx
OFFICE OF THE DIRECTOR
Action Memorandum No.
TO Deputy Director/plans
SUBJECT : ?conorny Measures
REFERENCE:
12 December
1.22 inC -Ageaney should
take in order to comply with the President's instructions, it ie my intent
to examine those A
en
g
cy
nt without any direct or immediate eeffeect o
n ova-rations or are areas in which other departments or agencies are engaged, In our first
preliminary review of the Agency's activities there are two components in
Your oraanla&#inin %-izu -u r z_ta --- - . . - -
v
whether their activities cannot in some way be made more economical.
a. The Special Operations Division, while still in a state
of growth, should be carefully re-examined to see whether all of its
activities are absolutely essential, should be carried on by the Oft., or
possibly can be reduced or curtailed as not necessary at this moment.
2. 1 Would appreciate your views ,,,.
-
h
w
at ste
z
by 15 January 1964. For your information, the same t pe of
y of
is ber
addr
d
g
esse
to the other Lirec# ra
SUSPENSE DATE:
LB K: drm
,,.)istribution: O& 1-Addressee
1-ExDir I DDCI
1-Budg/PA/M 1-ER
Approved For Release
be taken
ire a report
(signed) Lyman B. Kirkpatrick
Lyman B. Kirkpatrick
Executive Director -Comptroller
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 25X1
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OFFICE OF THE DIRECTOR
Deputy Director/Science & Technology
SUBJECT : Economy Measures _
Action Memorandum No. A-3f
Date 13 December 1963
A
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As a matter of priority would you pleaso have examined the
present and Contemplated Oise and strongtb of the Office of Special
Activities with a view to curtailing or reducing the organization in order to
economies both in manpower and mnoney. In doing this I would
careful attention be paid to the possibility that the OXCART
ever be used operationally. I would also suggest that we examine
oalistically whether our present size is justified by the extent of our
activities as related to those carried on by the NRO. Please advise mp
by 15 January of the actions you intend to take on the above.
(signed) Lyman B. Kirkpatrick
Lyman B. Kirkpatrick
Executive Director -Comptroer
LBK: drm
Distribution:
Original and 1 Addressee
01 - DDCI
1 - D/Budg/PA/M
1 - ER
1 - ExDir
SUSPENSE DATE:
SECRET
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HANDLE VIA
GROUP I
Excluded from automatic
downgrading and
a7e(e as e?aPD::10001-3
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 SECRET
Approved For Release 2 021081 vn BO 1,63VIT6 ROO1500040001- Executive Registry
OFFICE OF THE DIRECTOR
Action Memorandum No.
Date 13 ecerr ber 196.1
TO
SUBJECT :
Deputy Director/in
Economy Measures
I. In reviewing the over-all Agency structure and
t
i
al c
.
.~-s
in an effort to deta2,ninee areas where economics in. 'mass rer a v&.4
e
ch
e
d
w
a
i
ve
,. we are idenvuying particular units which we believe should
mined in some depth to ascertain whether they are still
erlo i
p
g
needed functions. or whether their activities are at a level commensurate
vith the cost. In this connection I am addressing memoranda to each of
the Directorates requesting that at this time they perform this review in
connection with specific offices or activities. in the DDII area would you
please institute immediate reviews along the following lines:
a. At the Present time OCI receives from BRA a volu
me
? reports mat ha. increased I I in the last three year
am suggesting that we might be able to effect
requirements or perhaps a small staff at NSA to ap oV men *1%"
""`
t
i
l
a
e
a
b. As I have mentioned to you, I believe the entire area
of registries and files in OCR is worthy of examination. With particular
reference to effecting economics at the source. I wish to call your attention
to the Documents i).visl in OCR, its present size and strength, and
suggest that a study be made to determine whether we really need all of the
SUSPENSE DATE:
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wnuur f
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 Approved For Release 2002/0 iRDP80B01676R001500040001-3
--thousands of documents now flowing into this Agency each day. If we c
this flow by 113 or 1/2 we could undoubtedly achieve savings in manpower:
the Documents Division of OCR.
Z. I would appreciate a report on those subjects by 15 January.
(signed) Lyman B. Tm_ent and YW levc:la f, the reminder at
rt ;on of JOT ce .) mss; I have rat
as possible w th rep"aeftat vas Of
ras u l ? d tra a ng in order to da rs{ 4 ne the wn im JOT r , :ir t s for
IFY 1 '04 4030- Wit' 1%5 and to Identify the matte ad ustment I n T/0 and dollar
O/BPAM/PHH/kfh (17 Dec
SUSPENSE DATE:
Crig and 1 - Addressee
1 - DDS
1 - DDCI /~
63)
(signed) Lyman B. Kirkpatrick
L7WM KUA :I
scut ve Direct or-Co ptr o3. r
1 - E ec. Reg.
1 - D/BPAM s r
~_ _ G i
Excluded fr frasn au v a is
1 - Exec. Dir.
Approved For Release 2002/08/28' RDNS0B01676R 01500WO
declassification
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 Approved For Release 2002/08/28 : CIA-RDP80BO1676R001500040001-3
Approved For Release 2002/08/28 : CIA-RDP80BO1676R001500040001-3
 SECRET
Approved For Release 200210813ftfiWfaWRO 7-6R001500040001
OFFICE OF THE DIRECTOR
Action Memorandum No. --'
Date 20 DEC 1963
with the President 'r, I trust :ors to the bets of
and enctes to reduce civili eWloyirent to the absolute
d to carry out casent1a1 Tvrc a s and activities, effective
1 ce1ll.rg of the ins Directorate is reduced
pout Director
w id allocated as follow
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budget s1emi pvurpose
5 ceilings will r:
SUSPENSE DATE:
SECRET
Approved For Release 2002/08/28 .AMPRI P80B01676
I downgracin; and
declassttlcatlon
 Approved For Release 2002/0840 1DP80B01676R001500040001-3
3 Henceforth, allocated cei i autI on