AUTHORIZING APPROPRIATIONS FOR FISCAL YEARS 1988 AND 1989 FOR INTELLIGENCE ACTIVITIES OF THE UNITED STATES GOVERNMENT, THE INTELLIGENCE COMMUNITY STAFF, THE CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM (CIARDS), AND FOR OTHE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89B00224R000200450003-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 22, 2016
• Document Release Date: September 9, 2011
• Sequence Number: 3
• Publication Date: June 8, 1987
• Content Type: MEMO

STAT
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100TH CONGRESS REPORT
1st Session } SENATE { 100-59
AUTHORIZING APPROPRIATIONS FOR FISCAL YEARS 1988 AND 1989 FOR
INTELLIGENCE ACTIVITIES OF THE UNITED STATES GOVERNMENT, THE
THE CENTRAL INTELLIGENCE
INTELLIGENCE COMMUNITY STAFF
,
~,,
ti AGENCY RETIREMENT AND DISABILITY SYSTEM (CIARDS), AND FOR
? =I~ OTHER PURPOSES
Max 20 (legislative day, Mar 13), 1987.-Ordered to be printed
Mr. BoREN, from the Select Committee on Intelligence,
submitted the following
REPORT
[To accompany S. 1243]
The Select Committee on Intelligence, having considered the
original bill (S. 1243) authorizing appropriations for fiscal years
1988 and 1989 for intelligence activities of the U.S. Government,
the Intelligence Community Staff, the Central Intelligence Agency
Retirement and Disability System, and for other purposes, reports
favorably thereon without amendment and recommends that the
bill do pass.
This bill would:
. (1) Authorize appropriations for fiscal years 1988 and 1989
for (a) intelligence activities of the United States, (b) the Intel-
ligence Community Staff, and (c) the CIA Retirement and Dis-
ability System;
(2) Authorize the personnel ceilings as of September 30, 1988
and September 30, 1989 for (a) the Central Intelligence Agency,
(b) the Intelligence Community Staff, and (c) the other intelli-
gence activities of the U.S. Government;
(3) Authorize the Director of Central Intelligence to make
certain personnel ceiling adjustments when necessary to the
performance of important intelligence functions;
(4) Make several legislative changes designed to enhance in-
telligence and counterintelligence capabilities and to promote
the more effective and efficient conduct of intelligence and
counterintelligence.
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OVERALL SUMMARY OF COMMITTEE ACTION
(In millions of dollars]
Fiscal year Fiscal year Committee Fiuat r Comrmttee
I98T 1988 repuest r~0m~~" 1989 ~1 r~nn~~
Lion ~
Intel activities .....................................................................................
........................................................................ .
..........................
staff ............................................................................ 21.9 24.3 21.9 25.1 21.9
CIARDS ............................................................................. 125.8 134.1 134.1 144.5 144.5
THE CLASSIFIED SUPPLEMENT TO THE COMMITTEE REPORT
The classified nature of U.S. intelligence activities prevents the
Committee from disclosing the details of its budgetary recommen-
dations in this Report.
The Committee has prepared a classified supplement to the
Report, which describes the full scope and intent of its action. The
Committee intends that the classified supplement, although not
available to the public, will have the full force of a Senate Report,
and that the Intelligence Community will fully comply with the
limitations, guidelines, directions, and recommendations contained
therein.
The classified supplement to the Committee Report is available
for review and by any Member of the Senate, subject to the provi-
sions of Senate Resolution 400 of the 94th Congress.
SCOPE OF COMMITTEE REVIEW
The Committee conducted a detailed review of the Intelligence
Community's budget request for Fiscal Years 1988 and 1989. This
was the fist year in which the Committee has required and acted
upon a budget request covering more than one fiscal year. The
Committee's review included:
Idearings involving some 30 hours of testimony from the princi-
pal program managers for U.S. Intelligence, including: The Acting
Director of Central Intelligence, the Director and .Deputy Director
Intelligence Community Staff, the Director National Security
Agency, the Director Defense Intelligence Agency, .the Executive
Director of the Central, Intelligence Agency, and senior officials of
the Military Departments.
A hearing involving some 3 hours of testimony from the Assist-
ant Secretary of Defense for Command, Control, Communications,
and Intelligence relative to Tactical Intelligence and Related Ac-
tivities programs of the Department of Defense.
A hearing involving some 3 hours of testimony from the Director
of the Arms Control and Disarmament Agency and the Undersecre-
tary of Defense for Policy covering the Intelligence Community's
arms control monitoring capabilities.
Detailed examination of over 3,000 pages of budget justification
material provided by national and tactical intelligence program
managers and all major government security activities.
Review of writ7ten answers from various officials to several hun-
dred questions for the record.
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Numerous briefings and interviews with officials on major topics
of interest.
The Committee continued to review intelligence programs based
on the DCI's National Intelligence Strategy prepared in 1986 and
updated in 1987. This Strategy projects the challenges and require-
ments that will face U.S. intelligence over the next decade, identi-
fies the intelligence programs and activities necessary to meet
those challenges, and sets forth a plan for the acquisition of needed
capabilities taking into account the tight fiscal environment faced
by all government activities.
COMMITTEE FINDINGS AND RECOMMENDATIONS
In previous years the Committee has reported its judgment that
intelligence activities must be assigned a very high priority in over-
all national security investment. The Committee has also stated its
concern over the debilitating effect budget constraints could have
on the ability of the United States to field an effective intelligence
capability in the future. These judgments have not changed;
indeed, the situation has worsened.
U.S. intelligence has incurred significantly increased costs as' a
result of the tragic loss of the Space Shuttle Challenger and two
successive failures of TITAN 34D launch vehicles. These unavoid-
able costs are absorbing scarce resources that otherwise could have
financed needed investment in new intelligence capabilities.
The Committee has carefully reviewed intelligence capabilities
against the broad range of requirements faced by the United States
for detailed, timely, and accurate intelligence support. The Com-
mittee is confident that the recommendations it has made for the
Fiscal Years 1988 and 1989 intelligence authorization, as contained
in the classified supplement to this report, will deliver the type of
intelligence systelri needed by the Nation as it approaches the 21st
Century.
Congressional oversight of intelligence activities
The Committee recognizes that during the past year, as a result
of the Iran-Contra affair, serious questions have been raised with
respect to the effectiveness of the Congressional oversight process,
particularly as it relates to oversight of covert actions. The Com-
mittee itself carried out a preliminary investigation of this matter,
culminating in the issuance of a report on January 29, 1987, titled:
"Preliminary Inquirty into the Sale of Arms to Iran and Possible
Diversion of Funds to the Nicaraguan Resistance." The Senate
voted to create a special select committee to carry out a more de-
tailed examination of the affair and submit a report to tha Senate
by October 30, 1987.
In view of this continuing investigation, the Committee deferred
taking any action in this area within the context of the Intelli-
gence Authorization bill for Fiscal Years 1988 and 1989. The Chair-
man has expressed his intention to conduct a broad review of Con-
gressional oversight of intelligence activities at the conclusion of
the new select committee's work, at which time the Committee will
recommend to the Senate such changes to the statutory oversight
requirements as it-considers appropriate.
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Notwithstanding this anticipated review of Congressional over-
sight, the Committee believes immediate action should be pursued
to provide the Committee with its own independent audit capabil-
ity of certain elements of the Intelligence Community. Currently,
the budget staff of the Committee is not of sufficient size or requi-
site background to permit more than a few such reviews each year.
The Committee notes that the House of Representatives routine-
ly subjects selected CIA and other Intelligence Community activi-
ties to detailed audits by the Surveys and Investigations staff of the
Committee on Appropriations. The work of the Appropriations
Committee in this regard has been of great benefit to the Intelli-
gence Committees. The Senate does not have a comparable staff
with the requisite security clearances dedicated to the conduct of
such audits or investigations.
The Committee believes the time has come to consider strength-
ening its auditing capabilities to permit detailed in-depth independ-
ent review of a number of selected intelligence programs. The Com-
mittee plans to consider alternatives in this regard and make ap-
propriate recommendations to the Committee on Rules and Admin-
istration in the near future.
Security matters pertaining to the Senate
The Committee notes that notwithstanding its recommendation
to the Senate in the last Congress that an Office of Senate Security
be established-a recommendation that was concurred in by the
Committees on Rules and Administration, and Government Af-
fairs-no such office has yet been established. The Committee con-
tinues to be concerned for the administration of security within the
Senate as a whole, and fears that unless uniform, stringent con-
trols are adopted and enforced, it is only a matter of time before a
serious compromise of classified information occurs. The Commit-
tee strongly reiterates its concern and its recommendation that an
Office of Senate Security be established to ensure the appropriate
handling of classified information provided by the Executive
branch and to monitor Senate staff security clearances.
In a matter related to the Committee on Armed Services, the
classified annex to the conference report on the FY 1987 Depart-
ment of Defense Appropriation Act directed the Executive branch
to provide TEMPEST-shielded computer equipment to the Congres-
sional Committees which review the National Foreign Intelligence
Program and the DOD Tactical Intelligence and Intelligence-Relat-
ed Program budgets. The Act reserved $200,000 for DIA for this
purpose, over half of which remains available for obligation.
The report specified that TEMPEST-shielded equipment be pro-
vided to the Intelligence and Appropriations Committees, but omit-
ted the Armed Services Committees who also have responsibility
for portions of the budgets mentioned above. The Committee ac-
cordingly recommends that the same computer support provided
the Intelligence and Appropriations Committees should also be pro-
vided the Armed Services Committees out of the funds which have
been appropriated but remain unobligated.
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SECTION-BY-SECTION ANALYSIS
Title I-Intelligence activities
Section 101 lists the departments, agencies, and other elements
of the United States Government for whose intelligence activities
the Act authorizes appropriations for Fiscal Years 1988 and 1989.
Section 102 makes clear that details of the amounts authorized
to be appropriated for intelligence and intelligence-related activi-
ties and personnel ceilings covered under this title for Fiscal Years
1988 and 1989 are contained in a classified Schedule of Authoriza-
tions. The Schedule of Authorizations is incorporated into the Act
by this section.
Section 103 authorizes the Director of Central Intelligence in
Fiscal Years 1988 and 1989 to expand the personnel ceilings appli-
cable to the components of the Intelligence Community under Sec-
tions 102 and 202 by an amount not to exceed 2 percent of the total
of the ceilings applicable under these sections. The Director may
exercise this authority only when necessary to the performance of
important intelligence functions or to the maintenance of a stable
personnel force, and any exercise of this authority must be report-
ed to the two Intelligence Committees of the Congress.
Title II-Intelligence community staff
Section 201 authorizes appropriations in the amount of
$21,900,000 for the staffing and administration of the Intelligence
Community Staff for Fiscal Year 1988 and $21,900,000 for Fiscal
Year 1989. This staff supports the DCI in the execution of his re-
sponsibilities to develop, review, and approve the National Foreign
Intelligence program budget, to evaluate the performance of for-
eign intelligence activities, and to develop issues, goals and other
required guidelines for the Intelligence Community.
'' time staff for the Intelligence Community Staff as of September 30,
1988 and September 30, 1989; and provides that such staff may be
either permanent employees or personnel detailed from other ele-
? ments~ of the Intelligence Community.
Section 202(b) directs that the personnel employed by the Intelli-
gence Community Staff be selected to provide appropriate repre-
sentation from various elements of the Intelligence Community.
Section 202(c) requires that personnel be detailed on a reimbursa-
a ~ ble basis except for temporary situations of less than a year. In the
opinion of the Committee, the authorized size of the Intelligence
a ~ Community Staff is sufficient for the performance of its duties.
This provision is intended to insure that its ranks are not swelled
by detailees, the personnel costs for whom are not reimbursed to
their present agency.
Section 203 provides that the Director of Central Intelligence
shall manage the activities and personnel of the Intelligence Com-
munity Staff in accordance with the same statutory authorities
under which the Central Intelligence Agency is managed. However,
it is the Committee's intent that in the case of detailed personnel,
the DCI's authority to discharge personnel shall only extend to dis-
charging detailed personnel from service at the Intelligence Com-
munity Staff and not from Federal employment or military service.
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Intelligence community staff
1987 program ........................................................................................................... $2~1 9
1988 reque:;t ........................................................................................................... 29.3
Committee recommended change ........................................................................ -2.9
Committee recommendation ............................................................................
1988 request ..................... .... 21.9
............................................................ ........ 25.1
Committee recommended change .......................................................................
Committee recommendation ......................................... -3.2
....................................... 21.9
Title II-Central Intelligence Agency retirement and disability
system
Section 301 authorizes appropriations for the Central Intelligence
Agency Retirement and Disability System (CIARDS) in the amount
of $134,700,000 for Fiscal Year 1988 and $144,500,000 for Fiscal
Year 1989. The Central Intelligence Agency Retirement Act of 1964
for Certain Employees (Public Law 88-643) authorized the estab-
lishment 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 benefits structure of CIARDS is essentially the same as for
the Civil Service Retirement System, with several special provi-
sions. These special CIARDS provisions are: (a) annuities based
upon a straight 2 percent of high 3-year average salary for each
year of service, not exceeding 35; (b) under stipulated conditions a
participant may retire at age 50 with 20 years of service, or a par-
ticipant with 25 years of service may be retired by the Director re-
gardless of age; and (c) retirement is mandatory at age 65 for per-
sonnel 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, which is maintained through; (a) contributions, cur-
rently at the rate of 7 percent, deducted from basic salaries of par-
ticipants; (b) matching Agency (employer) contributions from the
appropriation from which salaries are paid, based on the actual
rate of contributions received from participants; (c) transfers from
the Civil Service Retirement and Disability Fund representing 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; (d) income
on investments in U.S. Government securities; and (e) beginning in
1977 direct appropriations consistent with the provisions of Public
Law 94-552.
Central Intelligence Agency retirement and disability system
Fiscal year:
1987 program ................
...........................................................................................
1988
Mittion<
$125
8
request ...........................................................................................................
Com
itt
.
134
7
m
ee recommended change .......................................................................
C
itt
.
0
.
omm
ee recommendation ................................................................................
1988
134
7
request ..........................................................................................................
Co
itt
.
144
5
mm
ee recommended change ...............................~.........................................
Co
itt
o
.
p
mm
ee rec
mmendation ................................................................................
144.5
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?~tle IV-Enhanced counterintelligence and security capabilities
Section 401 requires the Attorney General to report annually to
the two Intelligence Committees any cases where Soviet nationals
have been admitted to the United States over the objections of the
Director of the Federal Bureau of Investigation, for employment
by, or assignment to, a diplomatic establishment or international
organization in the United States.
Under section 813 of the Foreign Relations Authorization Act for
Fiscal Years 1986 and 1987, Congress adopted a policy which pro-
vided that the number of nationals of the Soviet Union who were
admitted to the United States to serve as diplomatic or consular
personnel should be substantially equivalent to the number of U.S.
personnel serving in similar posts in the Soviet Union, unless the
President determines that the admission of additional Soviet na-
tionals would be in the best interests of the United States. This
provision also required a report from the Secretary of State setting
forth how these limitations would be maintained.
The Administration submitted the required report to the Con-
gress, which proposed comparable ceilings of 320 personnel in the
U.S. and in the Soviet Union, respectively. The Administration also
announced in March, 1986, that it would require the Soviet Union
to draw down the size of its staff at its mission to the United Na-
tions from 275 persons to 170, to be accomplished by April, 1988.
This timetable was considerably accelerated by the Daniloff affair
which occurred in October, 1986, which led to the expulsion of 80
Soviet officials from the United States. Most of these officials were
chosen to leave the U.S. based upon the FBI's intelligence-gather-
ing activities here.
The Committee applauds these actions of the Administration
which it considers fully consistent with the intent of the Foreign
Relations Authorization Act, cited above, and with the recommen-
dations of the Committee made in its 1986 report "Meeting the Es-
pionage Challenge."
The Committee is nonetheless concerned that these gains not be
nullified by permitting the Soviet Union to replace its diplomatic
and consular personnel, admitted under the approved ceilings, with
known or suspected intelligence officers. Under section 1182(a)(27)
of title 8, United States Code, the U.S. may exclude any aliens
"who the consular officer or the Attorney General knows or has
reason to believe seek to enter the United States solely, principally,
or incidentally to engage in activities which would be prejudicial to
the public interest, or endanger the welfare, safety, or security of
the United States". The Committee believes this provision provides
sufficient authority for the United States to deny admittance to
known or suspected intelligence officers of the Soviet Union.
The purpose of section 401 is to provide both Intelligence Com-
mittees with information on cases where the FBI has objected to
the admission of Soviet nationals to the United States based upon
its assessment of such persons as known or suspected intelligence
officers, and yet such persons have been admitted for other more
compelling reasons.
Section 402 authorizes the Director of the Federal Bureau of In-
vestigation to pay from appropriated funds such additional compen-
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sation as he considers necessary and appropriate to defray unusual-
ly high living expenses of FBI employees assigned to the New York
Field Division.
The Committee has been advised for some time by the FBI that
due to the high costs of living in the New York area, which exceed
any other area of the country, the FBI has a difficult time recruit-
ing agents for such assignments, which impose a considerable fi-
nancial burden on agents and their families under the current pay
structure. Agents who are assigned 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.
The Committee believes that the Director should have authority
to pay, if he chooses to do so, additional compensation to this cate-
gory of employees to deal with this situation. Obviously, the intent
is to equalize the financial burden of living in the New York area
with that of other areas of the country. It is not to provide employ-
ees of the New York Office with compensation which, in reality, ex-
ceeds that of other FBI employees.
Title V-DOD intelligence personnel improvements
Section 501 would add a new Section 1606 to Chapter 83 of Title
10, U.S.C., to allow the annual uniform appropriation authorization
for civilian employees working for Defense Attache Offices who are
required to wear uniforms to be increased to a maximum of $400
per year, an amount comparable to that paid by the Department of
State for similar employees working at United States Embassies.
Currently, the maximum amount that can be expended under 5
U.S.C. 5901 is $125 per year. The statutory authority for the De-
partment of State to pay uniform allowances (see 22 U.S.C. 2669(e))
sets no maximum amount and the uniform allowance is controlled
by regulations of the Department of State. The current amount au-
thorized by Department of State regulations is $360 annually (see 6
Foreign Affairs Manual 241.5).
The Defense Attache Offices currently employ foreign nationals
as chauffeurs and uniforms are required to be worn. Similar posi-
tions at diplomatic posts for the Department of State afford foreign
national employees a uniform allowance benefit which far exceeds
the limits imposed on the Defense Attache Offices by Title 5. The
State Department has the flexibility to increase the amount of the
annual uniform allowance as required while Defense Attache Of-
fices, have been bound by the statutory $125 limit since 1966. This
has become an increasing problem over the course of 20 years, par-
ticularly in times such as these when there is a substantial devalu-
ation in the dollar.
Section 502 extends for the next two fiscal years the termination
authority of the Secretary of Defense with respect to the employ-
ment of any civilian officer or employee of the Defense Intelligence
Agency. Subsection 501(a) of the Intelligence Authorization Act of
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Fiscal Year 1985, Public Law 98-618, authorized the Secretary of
Defense to exercise the termination authority described above
whenever such an action was considered by him to be in the best
interests of the United States and he determined that the termina-
tion procedures otherwise authorized by law could not be "invoked
in a manner consistent with the national security". This authority
was extended by paragraph 1604(e)(1,1 of Chapter 83 of Title 10,
United States Code, for Fiscal Years 1985 and 1986. The regula-
tions which were written to implement this authority were not fi-
nalized with the Department of Defense, however, until mid-1986.
Section 502 of the Intelligence Authorization Act for Fiscal Year
1987, Public Law 99-569, granted aone-year extension of this au-
thority through Fiscal Year 1987.
The Committee notes that this authority has not been exercised
since it was originally provided. Nevertheless, it recognizes that sit-
uations might yet arise where such authority would be desirable. It
therefore extends this authority for the next two fiscal years.
Section 503 would amend Section 912(a) of the Internal Revenue
Code of 1954 to grant tax treatment of allowances currently provid-
ed to certain Department of Defense personnel under Section
9(b)(1) of the National Security Agency Act of 1959 and Section
1605 of Title 10, United States Code comparable with that provided
to Foreign Service employees for similar allowances.
The Intelligence Authorization Act of 1982 (Public Law 97-89)
amended the National Security Agency Act of 1959 to allow the Di-
rector, National Security Agency, to provide allowances and bene-
fits to certain civilian employees of the Department of Defense
which were comparable to those provided to the State Depart-
ment's Foreign Service and to employees of the Central Intelli-
gence Agency. During the implementation of this statute, it was
discovered that comparability of the allowances could not be
achieved unless the tax exemption provided for Foreign Service
and Central Intelligence Agency employees under Section 912(1) (A)
and (B) of the Internal Revenue Code was also available for civil-
ians employed and assigned to the National Security Agency.
The Intelligence Authorization Act for Fiscal Year 1984 (Public
Law 98-215) amended title 10, U.S.C., to provide certain allowances
and benefits to personnel assigned to Defense Attache Offices and
Defense Intelligence Agency Liaison Offices overseas comparable to
those provided by the Secretary of State to officers and employees
of the Foreign Service under Chapter 9 of Title 1 of the Foreign
Service Act of 1980 and the provisions of 5 U.S.C. ? 5924(4). Al-
though Section 1605 was designed to establish equivalence between
DAO/DIALO civilians and Foreign Service personnel with respect
to many allowances and benefits, the actual value of the allow-
ances and benefits to DAO and DIALO personnel is less than the
value of the benefits to Foreign Service personnel, since the bene-
fits granted under the Foreign Service Act and Title 5 are tax free
by virtue of Section 912 of the Internal Revenue Code, while those
granted under Section 1605 are not exempt from taxation.
The current inequity in taxation has been compounded by Sub-
section 1232(b) of the Tax Reform Act of 1986 (Public Law 99-514).
This subsection provides that civilian employees of the Department
of Defense stationed in Panama may exclude from gross income al-
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lowances which are comparable to the allowances excludable under
Section 912(a) of the Internal Revenue Code by employees of the
Department of State stationed in Panama. Thus, it appears that
any Defense Intelligence Agency or National Security Agency per-
sonnel stationed in Panama will, in future taxable years, be able to
exclude from their gross income Foreign Service-equivalent allow-
ances and benefits granted to them.
As a result of the provisions discussed above, there is now a situ-
ation where the tax laws treat identical allowances and benefits of
NSA and DIA civilian personnel stationed overseas differently
from those of Foreign Service personnel. Moreover, under the Tax
Reform Act of 1986, the tax laws now treat identical allowances
and benefits differently for NSA and DIA civilian personnel sta-
tioned overseas. The addition of the proposed Paragraphs (E) and
(F) to Section 912(1) of the Internal Revenue Code of 1954 will pro-
vide equal tax treatment for identical allowances and benefits re-
ceived by NSA, DIA and Foreign Service civilian personnel sta-
tioned around the world.
Section 504 would extend the authority of the Secretary of De-
fense to terminate civilian employees of intelligence elements
within the military departments, comparable to the authority
granted under section 502 with regard to civilian employees of
DIA. Section 504 of the Fiscal Year 1987 Intelligence Authorization
Act had provided such authority limited to Fiscal Year 1987. The
Committee proposes to extend this authority for the next two fiscal
years, pursuant to the same rationale cited for section 502, above.
Section 505 would add a new section 1607 to Chapter 83 of Title
10, United States Code, to exempt the Defense Intelligence Agency
from any requirement to disclose information on its organization,
functions, or personnel. It would authorize DIA to establish a
system similar to that already afforded by statute to CIA and NSA.
The purpose of the section is to reduce the potential for compro-
mise of sensitive information through general administrative re-
porting systems. There are numerous and detailed Executive
branch personnel reporting requirements to which CIA and NSA
are not required to respond. DIA, lacking similar statutory author-
ity, is required to respond. However, the information requested is
for the purposes of compiling and publishing various unclassified
personnel reports. The personnel data required to be submitted by
DIA is classified and the Executive branch personnel who would re-
ceive the classified data are not cleared to handle it. Furthermore,
the computer systems into which the personnel data from through-
out the government are compiled are not set up to handle classified
information. This has placed DIA in the difficult position of being
technically required to submit personnel data which is classified
but which the receiving Executive branch offices cannot securely
handle or use. The proposed statutory exemption would resolve this
situation and preclude similar situations in the future.
The second sentence of the proposed provision makes clear that
this authority in no manner affects the responsibility of DIA to
report information to the Congress, including its responsibilities
under section 501 of the National Security Act of 194 7 (50 U.S.C.
413) to make certain types of reports to the two Congressional In-
telligence Committees.
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The Committee also notes that this authority would be discre-
tionary, not mandatory. To the extent that organizational data con-
cerning DIA can be disclosed either to the public or in satisfaction
of Executive branch administrative requirements without jeopard-
izing sensitive functions of that agency, the Committee believes it
should do so. It intends that this authority be limited to those situ-
ations where it is needed to protect sensitive activities.
Section 506 amends Section 16 of the National Security Agency
Act, enacted in the Intelligence Authorization Act for fiscal year
1987. That section authorizes the establishment of an undergradu-
ate training program to facilitate recruitment of individuals for
NSA, particularly minority high school students, needed to develop
skills critical to the NSA mission. Section 506 amends that provi-
sion to allow the Secretary of Defense to offer advanced training in
critical skills such as mathematics, engineering, computer science
and foreign languages to sought-after college recruits and valued
employees.
The success of the NSA mission depends upon the Agency's abili-
ty to recruit and retain the most talented available mathemati-
cians, computer scientists, engineers, and linguists. The Agency's
ability to recruit and retain these critical skilled individuals has
been severely challenged and diminished in recent years because of
the increase in the demand for these important skills in the pri-
vate industrial community. This is due in part to special incentives
that industry can offer to graduating college and university seniors
but which the Agency is prohibited by law from offering to its re-
cruits. Among those special incentives is sponsorship for advanced
degrees. Section 506 would significantly aid the Agency in compet-
ing for the finest graduating talent available by permitting the
Agency to match the offers of private firms to sponsor qualified in-
dividuals for advanced degrees.
Title VI-General provisions
Section 601 provides that the authorization of appropriations by
this Act 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 602 provides advance authorization for such additional
appropriations as may be necessary for increases in Federal em-
ployee compensation and benefits which are authorized by current
or subsequently enacted law during Fiscal Years 1988 and 1989.
Section 602 obviates the necessity for separate authorizations for
such matters during the fiscal year.
COMMITTEE ACTION
On April 29, 1987, the Select Committee on Intelligence, ap-
proved the bill as amended and ordered it favorably reported.
EVALUATION OF REGULATORY IMPACT
In accordance with Paragraph 11(b) of Rule XXVI of the Stand-
ing Rules of the Senate, the Committee finds no regulatory impact
will be incurred in implementing the provisions of this legislation.
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CHANGES IN EXISTING LAW
In the opinion of the Committee, it is necessary to dispense with
the requirements of Section 12 of Rule XXVI of the Standing Rules
of the Senate in order to expedite the business of the Senate.
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