AGENCY NEWSLETTER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP68-00140R000100370001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 12, 2016
• Document Release Date: July 31, 2002
• Sequence Number: 1
• Publication Date: July 1, 1964
• Content Type: MISC

Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370901-0
AGENCY NEWSLETTER
Publicity about the Agency
We are well aware at Headquarters that you are all concerned about
some of the publicity the Agency has been getting. The allegations against
the Agency, often vague and imprecise, are difficult to rebut even if it were
permissible for us to do so. We cannot answer these books and articles;
our policy must be to roll with the punch. However, all employees should
be prepared to say--when the subject of publicity unfavorable to the Agency
arises--that the Agency is under very tight external and internal controls.
These controls make it impossible for the Agency to indulge in the type of
freewheeling of which we are accused; such independent action just cannot
occur as our Government is constituted. You can be assured that no one
who fully understands the way our Government works believes the charges
of irresponsible freewheeling. These men know the value of our services
and disregard such allegations, as we must do ourselves.
The Invisible Government, about which you have heard a great deal,
is not a serious book on. the workings of our Government. The authors
could have done such a book had they chosen to do so, but they elected to
create another sensational pot-boiler which leaves vague impressions that
there are sinister forces controlling our Government. There can be no
question that the disclosure in the book of the names of staffers and sensitive
organizations hurts the Agency. Conversely, there can be no question that
the book gives aid and comfort to the other side.
The authors probably got their information (and misinformation) by
scanning newspaper morgues for references to "CIA" and "intelligence, "
then listening to anybody who would talk. The authors claim to have
revealed only data that were in print or could be learned through overt
channels. So, although its authors may be guilty of indiscretion in combining
such information in a form our opposition will find useful, the real security
violations must be laid at the door of those who talked in the first place.
A point that must be considered in reacting to a book like The Invisible
Government is that we only provide free publicity, and hence greater
circulation, by showing undue concern. We must be confident that we are
doing the job expected of us, and this we are doing.
Approved For Release 2002/08/23 : CIA-RDP68-0014OR000100370001-0
 Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
SECRET
One constructive course we can take at this time, in the aftermath
of The Invisible Government, is to insure at all levels, and in all areas,
that we are applying the need-to-know principle.
The Pay Raise
The Federal Employees Salary Act of 1964 may be passed by the time
this letter reaches you. Strong backing by the President brought about a
very favorable vote in the House of Representatives and expeditious passage
by the Senate which had been holding hearings concurrently with the House
Committee. Resolution of amendments made by the Senate to the House
bill will require action by House and Senate conferees. It is expected that
the Conference Committee will meet at the conclusion of the Republican
Convention. Salary increases provided in this bill will be applied to our
personnel as they have in the past.
The President's view that enactment of pay legislation in this session
of Congress "reaches into the very essence of urgency if this Government
means to retain excellence and quality" underlies the strong support that
has been generated for the pay bill. In addition, the policy of comparability
which was set forth in the 1962 Act has provided the basic argument for
those supporting this legislation.
In the Federal Salary Reform Act of 1962 the Congress and the
Executive Branch committed themselves to the principle of maintaining
career pay at levels comparable with pay received in private enterprise.
The pay increase, which became effective in January of this year, provided
limited comparability extending only through grade GS-7 of the Classification
Act schedule and based upon the Bureau of Labor Statistics survey of 1961.
The present bill, H. R. 11049, has been endorsed by the Administration as
an effective move toward comparability in career pay for all levels and rates.
Perhaps even greater than the need for adjustment in career salaries,
from an over-all point of view, is the need for establishment of a rational-
ized salary structure in the top positions in the Executive Branch of the
Government and the concurrent establishment of sound interrelationships
among executive, legislative and judicial pay schedules. Federal top salary
rates have remained unchanged since 1956.
SECRET
Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
 Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
SECRET
The bill has four major parts. Title I guarantees a minimum
3 per cent salary increase for postal and other career Federal employees
in the lower levels and grades. The maximum dollar increase will be
$4, 500 in the highest grades and levels. Titles II, III and IV of the bill
provide increases in the statutory salary levels for 535 members of Congress
and the Resident Commissioner from Puerto Rico; 400 Cabinet and sub-
Cabinet officers; 486 Federal judges; the Commissioners of the Court of
Claims; 11 officials in the Legislative Branch; and 2 officials in the Judicial
Branch. Titles II and IV also include salary adjustments for Legislative and
Judicial employees respectively which are comparable to the increases pro-
vided by Title I for Classification Act employees.
Early Retirement Legislation
The Director and senior officials of the Agency continue to press for
further action on the Agency retirement bill and have been assured that the
bill will receive consideration by the Senate Armed Services Committee as
soon as the Committee can get to it. The debate on the Civil Rights Bill
caused delays in taking up other matters which are pending before Senate
committees. The long daily sessions in the Senate during the rights debate
left little time for Committee attention to other than the most pressing items
of legislation.
The President's Economy Drive
Almost immediately upon taking office, President Johnson started
direct action to impose strict standards of economy and reduce expenditures
in all agencies of the Government.
The Agency, even before the President's call for economy, was taking
constructive steps in this very direction. In November 1963 the DCI made
an organizational change which has had a significant impact on this Agency's
compliance with the President's economy directives. The Office of
Finance, with its complex responsibilities for financial accounting and
reporting, was established as a component of the Support Directorate. The
Office of Budget, Program Analysis and Manpower, with responsibilities
for budgetary control, program review and the validation of manpower
requirements, was established immediately under the Executive Director-
Comptroller within the Office of the Director of Central Intelligence.
John Clarke is its Director.
3
Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
 Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
SECRET
The Executive Director-Comptroller took several actions to comply
with the economy programs of the President and the DCI. These included a
tightened control over manpower levels for Offices and Divisions within the
Agency with appropriate measures to assure that these levels were respected.
Efforts were made to reduce components having excess personnel to authorized
strength levels through attrition and the imposition of firm limitations on
hiring new personnel. For the first time the Bureau of the Budget, in
response to the President's directive, placed a maximum numerical
limitation on our nonpermanent or non-staff categories of personnel. In turn
it was necessary to set employment levels for each Directorate for those
categories of employees over which the Directorates had previously had only
a financial control. Since last November the on-duty strength of the Agency
has dropped by 336 employees and is now well within the ceiling imposed by
the President and the Bureau of the Budget for FY 1964. Adjustments are
still necessary since these losses, which have occurred largely through
attrition, have taken place primarily among clerical personnel, many of
whom sooner or later will have to be replaced. Efforts are under way to
correct imbalances in the professional/clerical ratios as a result of these
losses. Through streamlining of operations and careful pruning of less
vital activities further reductions will be effected in Agency personnel
ceilings in FY 1965 and FY 1966.
Several other economy actions were initiated within CIA. These
included the following:
a. Clerical recruitment levels were re-examined and revised.
A reduction of about 50% of the number recruited during FY 1963 will save
approximately $500, 000 in recruitment, orientation and training costs. In
addition, a policy whereby clerical applicants are not brought on duty until
they receive full clearance should result in an additional savings of
approximately $200, 000.
b. All Directorates have taken action to curtail travel wherever
possible and to avoid first-class travel except where it is essential.
c. Throughout the Agency there has been a savings in telephone
service of about $75, 000 annually.
d. The application of more austere and stringent criteria to
printing requirements has resulted in the elimination of a need for 30
additional people and a $750, 000 increase in funds for printing expenses.
Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
 Approved For Release 2002/08/23 : CIA-RDP68-0014OR000100370001-0
e. Individual Directorates were enjoined to reduce overtime
costs with a reduction goal of about $1, 000, 000 in mind.
Although significant savings have been achieved, the economy drive
will continue. The Agency is required to submit a quarterly report to the
Bureau of the Budget setting forth Agency efforts to reduce manpower
levels; reports must also measure the degree of success achieved toward
the goal of maximum accomplishment of mission with minimum expenditure
of money and manpower.
25X1
Approved For Release 2002/08/23 : CIA-RDP68-0014OR000100370001-0
 Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
The President and the Bureau of the Budget are exerting severe
pressure on executive departments and agencies to reduce the inventory of
official Government vehicles, and this Agency is under an equally stringent
injunction to reduce the number of official vehicles to 25X1A
the absolute minimum consistent with clearly justifiable operational
necessity. The Organization realizes that the location of many of our living
quarters as well as the general unsuitability of public transportation in many
locations makes a personal car for family use highly desirable. However,
it is essential that we re-examine our vehicle assignment practices to ensure
that the controlling factor is operational necessity. We must retain the
mobility and responsiveness of operational personnel but this must be clearly
distinguishable from the personal requirement for transportation to and from
the place of employment and other personal and family conveniences.
Within these terms of reference, we are convinced that the number of
authorizing mileage reimbursement and granting transportation allowances
to individuals for the official use of their personal vehicles. Agency
regulations are being revised in several respects to make the use of personal
vehicles more attractive. Among the changes in process is a provision that
a foreign-made vehicle may be shipped at Government expense for an
employee who is authorized a transportation allowance or is authorized
mileage reimbursement for continuing official use of his personal vehicle
25X1A instead of assigning an official vehicle to him.
Another provision being seriously considered is the delegation to
Chiefs of Station and Base of authority to authorize transportation allowances
of up to $50 a month. In special circumstances transportation allowances of
more than $50 a month may be authorized by the Deputy Director for Support.
In addition to the changes which will be reflected in the regulations, the
Credit Union has agreed to grant loans to persons going overseas at a more
favorable interest rate than was previously possible. We realize that local
laws as well as the terms of agreements between host governments and our
own vary from place to place. Nevertheless, the principle is sound and we
believe we can make substantial reductions in the total Agency inventory of
vehicles without sacrificing operational effectiveness or creating personal
hardships.
Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
 Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
SECRET
25X1A
While stringent personnel ceilings have caused us to slow down our
recruitment activity considerably, we have reduced the recruitment
mechanism only slightly and we have been able to increase our emphasis on
obtaining the highest possible quality in the specialized areas where we
continue to have requirements for exceptionally qualified people. In addition,
recognizing that an organization of the complexity of the Agency cannot shut
off the pipeline of qualified young people if it is to continue to perform
effectively ten or twenty years from now, we have plans to expand the
Junior Officer Training Program in each of the next two fiscal years. Up
until now the Clandestine Services have been the primary subscribers to
the Junior Officer Training Program. Most of the new expansion will be
absorbed by other Directorates. The Director of Training is developing
some modifications in curricula to add flexibility to the program to permit
candidates for positions in functional areas other than the Clandestine
Services to have their training slanted more directly toward their future
assignments.
The third running of the Midcareer Course was completed on
28 May 1964 with increasing indications that it is a highly successful effort.
Student critiques have been uniformly complimentary and many of them
have been enthusiastic in their praise for the quality of the content
throughout the entire six weeks. The last two weeks of the third running were
highlighted by the appearance of Allen W. Dulles, Harlan Cleveland,
SECRET
Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
 Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
W. Averell Harriman and Congressman Melvin Price. The fourth running,
scheduled to begin in September, is now being programmed and many of
the career services are beginning to consider candidates. In the process,
an attempt is being made to place greater emphasis upon total planning for
midcareerists covering periods of up to five years, of which enrollment
in the six-weeks' "core course" is obviously only one small part. In
addition to scheduling the individual's enrollment in the core course,
career services are beginning to program rotational assignments and other
external training for all promising midcareerists.
Security Reindoctrination
A program of security reindoctrination has been under way at Head-
quarters for several months with obligatory attendance for all employees.
Within the next few weeks all employees now in the Washington area will
have attended and those outside Headquarters will attend as soon as they
can be reasonably scheduled after their return to Washington. The purpose
of the program is to remind our people of their security obligations and the
constant threat to the Organization by the opposition.
Program on the Responsibilities of Supervisors
A separate but related program of about six hours' duration has been
developed and offered to Agency supervisors. Critiques of the first
presentation have been used to refine the program and develop an orientation
program to be offered for all employees in grades GS-14 and above and all
employees in grades GS-13 and below who are responsible for completing
fitness reports for two or more subordinate employees. The program is
intended to remind supervisors of the total scope of their responsibility with
emphasis on personnel management and the particular responsibility of the
supervisor for personnel security of people under his supervision. When
the format of this program has been agreed upon it will also be made obligatory
for all persons in the categories mentioned.
8
SECRET
Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
 Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
Foreign Missile and Space Analysis Center
On 7 November 1963 Mr. McCone approved the establishment of a
Foreign Missile and Space Analysis Center (FMSAC). This organization
is under the jurisdiction of the Deputy Director for Science and Technology.
At the time of the creation of FMSAC, Mr. Carl Duckett was appointed its
Director. FMSAC will become the focal point for analysis of all data on
Soviet missile and space firings with particular attention to raw intelligence
gathered from all sources and reporting and dissemination of these studies
to the pertinent components of the intelligence community.
The Center is directed to use the best of our national capabilities,
both private and governmental, to explore the extensive collection activities
against these targets now in being under the various services. The Center
will work with the Guided Missile and Astronautics Intelligence Committee
(GMAIC) of the United States Intelligence Board (USIB) and will report its
results to the USIB through GMAIC. The Center will also work closely with
all collection agencies and is directed to develop judgments on the better
use of our intelligence resources in this area.
National Intelligence Programs Evaluation
The November Newsletter contained an item on the appointment of
Mr. John A. Bross as Deputy to the Director for National Intelligence
Programs Evaluation (NIPE). Since that time Mr. Bross has built up a
small, highly specialized staff which has concerned itself with a number of
major examinations of intelligence community problems. Two of the
studies are currently under way. One task force is making a study-in-
depth of the over-all U. S. intelligence effort
with particular reference to the adequacy of the intelligence to support the
needs of policy makers. It is hoped that this study may point the way to
certain changes in the intelligence effort in this area and that it may help
to highlight basic principles which may be equally applicable to other areas.
A second task force is concerned with the totality of the U. S. intelligence
effort to achieve early warning of an attack against the United States or its
allies. This task force is assisted by officers from CIA, NSA and the
Defense Intelligence Agency.
25X6
9
SECRET
Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
 Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
As you have been told in recent Agency notices, the Director has
approved the establishment of an Agency scholarship program called the
Educational Aid Fund. Being new, the Fund has limited assets so that it
will be impossible for the time being to assist all those who will want and
deserve help. The primary purpose of this Fund is to provide scholarship
aid for dependents of present and former career employees and career
agents of the Central Intelligence Agency who may be encouraged and aided
thereby to pursue programs of education in regionally accredited institutions
of higher learning in the United States. This Fund is governed by a board
of trustees appointed by the Director of Central Intelligence.
As an adjunct to the program, the Registrar Staff of the Office of
Training has compiled extensive information about fellowships, grants and
student loans. Also available in OTR are catalogs for most accredited
colleges and universities in the United States. It is recommended that
inquiries on these matters be directed initially to the Registrar and that a
counseling appointment be made if needed.
Key Assignments
H. Gates Lloyd, Assistant Deputy Director for Support, retired from
the Agency on 1 July 1964 after a long and distinguished career. Robert L.
Bannerman, Director of Security, succeeded him and Howard J. Osborn,
I I succeeded Mr. Bannerman. Effective at the
same time, became the Deputy Director of Security.
Marshall Carter
Lieutenant General, USA
Deputy Director
10
SECRET
Approved For Release 2002/08/23 : CIA-RDP68-00140R000100370001-0
25X1A
25X1A