APPEALS LETTERS FOR FY 2002 HPSCI MARKS

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 06240920
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 31
• Document Creation Date: March 9, 2023
• Document Release Date: September 25, 2020
• Case Number: F-2010-00549
• Publication Date: November 1, 2001

Air ,/.7A j ,Approved for R770/09/25 C0,40.70/ /Apr /7
TOP S1CRETi X1 'DPC, S751-4b)(1)
No.Cr-D n z77CV
NATIONAL SECURITY
COUNCIL
INFORMATION
NOTICE
The attached document contains classified National Security Council Information. It is
to be read and discussed only by persons authorized by law.
Your signature acknowledges you are such a person and you promise you will show or
discuss information contained in the document only with persons who are authorized
by law to have such access to this document.
Persons handling this document acknowledge he or she knows and understands the
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United States Government into any unauthorized disclosure of classified information
contained herein.
Access List
DATE NAME DATE NAME
i rk(C)
TOP SECRET
Jxi
//Z7//_/AV AV/
, Approved for Release: 2020/09/25 C06240920
TnP qFPRRTXl
Approved for Release: 2020/09/25 C06240920
(b)(1)
SUBJECT: (U//FOU0) Appeals Letters for FY 2002 HPSCI Marks
Distribution:
prig - Chairman Goss, HPSCI w/encls
Orig -
Ms.
Pelosi, HPSCI
w/encls
1 -
NSC w/encls
(b)(3)
1 -
Ms.
Suzanne White,
OMB w/encls
1
- DAC w/encls
c*%1$
ExffAlLtftraites_
1
- CFO w/encls
1
- DCFO w/encls
1
- D/Budget w/encls
1
- DD/Budget w/encls
1
- C/PA/Budget w/encls
1
- CFO/Legal w/encls
1
- D/OCA/EA w/encls
1
- OCA/LG w/encls
1
- RMO/CMS w/encls
(b)(3)
1
- Senior MS0 Referent
w/encls
1
- MS0 Referent w/encls
1
- DS&T Referent w/encls
1
- Senior DO Referent w/encls
1
- DO Referent w/encls
1
- DI/DCI Referent w/encls
1
- OCA ISC w/encls
1
- CFO ISC w/encls
1
- CFO Chrono w/encls
DCl/CFO/BUDGET
(CFO 01-1270)
Enclosures:
1.
2.
3-
4.
5.
6.
7-
8.
9.
10.
11.
12.
13.
(15 Oct 01)
(b)(3)
(b)(3)
(b)(1)
(b)(3)
TOP SECRET/
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(b)(1)
TOP SECRET/ X1
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Central Intelligence Agency
(b)(1)
Washington, D.C. 20505
1 November 2001
The Honorable Porter J. Goss
Chairman
Permanent Select Committee
on Intelligence
House of Representatives
Washington, D.C. 20515
Dear Mr. Chairman:
(U//FOU0) I want to thank you and the House
Permanent Select Committee on Intelligence for your staunch
support to the Agency during this, time of national crisis. I
read the FY 2002 authorization marks with great interest and
appreciate the Committee's perspective on the Central
Intelligence Agency's program, particularly as we continue
the war on terrorism. Although the tone of many of the
remarks in the report was, in my view, unnecessary and
counterproductive, I am confident we share the goal of
helping to defeat the terrorist threat. I look forward to
working with you and the Committee to meet this challenge.
(U//FOU0) As you prepare to conference on the FY 2002
Intelligence Authorization Act, I would like to endorse DCI
Tenet's views and provide my own thoughts on proposed
Congressional actions affecting this Agency, particularly
regarding our ability to eradicate terrorism on a global
basis. At this point, I want to highlight CIA's role in
executing Covert Action programs at the direction of the
President and National Security Council. These programs are
in the forefront of the war against terrorism and reducing
their funds undermines our ability to support the President
at this crucial point. I, therefore, urge you to restore our
requested funding levels.
b)(1)
(b)(1)
(b)(3)
TOP SECRET/
/X1 (b)(1)
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TOP SECRET/ )(1. (b)(1)
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The Honorable Porter J. Goss
Joint Actions:
�
�
HPSCI Actions:
�
�
(b)(1)
(b)(3)
(b)(1)
(b)(3)
(b)(1)
(b)(3)
2
TOP SECRET/
X1
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(b)(1)
TOP SECRET/ /X1
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The Honorable Porter J. Goss
(b)(1)
�
b)(1)
b)(3)
� (S) The proposed cut to the Office of (b)(3)
the Inspector General (OIG) is particularly (b)(1)
perplexing since it would eliminate all of its non-
personal services dollars. It would force OIG to
eliminate audits and inspections of all Agency field
stations; cut planned reviews of Agency covert
actions; virtually eliminate OIG's ability to
monitor activities of the Directorate of Operations;
and render OIG incapable of conducting
investigations of employee misconduct that require
access to people and documents outside of
Headquarters.
� (S) The proposed cut to the Office of (b)(1)
Congressional Affairs will force us to cut (b)(3)
approximately staff positions--seriously (b)(3)
restricting support we provide to Congress--as both (b)(1)
consumer and overseer of intelligence. We also
would have to reduce our level of service and
responsiveness to the National Security Council, the
Office of Management and Budget, and other Executive
Branch agencies on legislative requirements
and other Congressional matters involving the IC.
Thus, at a time when more communication is required,
we will have to reduce our capability to do so.
TOP SECRET/
xi (b)(1)
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TOP SECRET/ (b)(1)
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The Honorable Porter J. Goss
SSCI Actions:
� (C) I want to reinforce the DCI's concerns that the
Senate Select Committee on Intelligence's
recommended cuts to our Performance-Based
Compensation program would eliminate the funds we
are requesting to better recognize superior
performance and motivate our work force. Moreover,
this cut also eliminates funds we need to cover
awards and within-grade increases.
� (C) The proposed reduction to Agency (b)(1)
Management/Leadership would severely undercut a (b)(3)
range of responsibilities critical to the day-to-day
management and coordination of the Agency's
corporate concerns--especially during a time of
stepped up activities during the war on terrorism.
The proposed cut also will negate our efforts in the
� FY 2002 Congressional Budget Justification to
address chronic shortfalls in salaries and benefits
associated with these positions that drive the need
for reprogramming of funds during the fiscal year.
� (S) Just as we are embarking on an aggressive
campaign to recall experienced personnel, the
proposed cut to independent contractors
would complicate our ability to fully participate in
the war on terrorism. Independent contractors, many
with previous Agency experience, are critical to our
ability to sustain activities on other priority
issues as we focus resources on the terrorist
threat.
�
Conclusion:
(S) I would like to reiterate my appreciation for the
support the HPSCI has shown for CIA's response to the
11 September terrorist attack. This response, and our
continuing support to the war on terrorism, entail a
(b)(1)
(b)(3)
(b)(1)
(b)(3)
TOP SECRET/
4
X1 (b)(1)
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TOP SECRET/ /X1 (b)(1)
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The Honorable Porter J. Goss
dramatic shift in our focus and require a major augmentation
of resources that we must sustain in the future. We all
know that intelligence will be the first line of defense in
this war, and I look forward to working with you to
strengthen that line.
(U//FOU0) You will find attached detailed appeals of
key individual programs recommended for reduction in the
marks. I stand ready to provide any additional information
you might need to support your deliberations.
(U) An original of this letter is also being sent to
the Ranking Democratic Member of the House Permanent Select
Committee on Intelligence.
(U) Please do not hesitate to call me if I may be of
further assistance.
Sincerely,
Enclosures
A. B. Krongard
Executive Director
(b)(3)
(b)(6)
TOP SECRET/
tx1 (b)(1)
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Central Intelligence Agency
(b)(1)
Washington, D.C. 20505
1 November 2001
The Honorable Nancy Pelosi
Ranking Democratic Member
Permanent Select Committee
on Intelligence
House of Representatives
Washington, D.C. 20515
Dear Ms. Pelosi:
(U//FOU0) I want to thank you and the House
Permanent Select Committee on Intelligence for your staunch
support to the Agency during this time of national crisis. I
read the FY 2002 authorization marks with great interest and
appreciate the Committee's perspective on the Central
Intelligence Agency's program, particularly as we continue
the war on terrorism. Although the tone of many of the
remarks in the report was, in my view, unnecessary and
counterproductive, I am confident we share the goal of
helping to defeat the terrorist threat. I look forward to
working with you and the Committee to meet this challenge.
(U//FOU0) As you prepare to conference on the FY 2002
Intelligence Authorization Act, I would like to endorse DCI
Tenet's views and provide my own thoughts on proposed
Congressional actions affecting this Agency, particularly
regarding our ability to eradicate terrorism on a global
basis. At this point, I want to highlight CIA's role in
executing Covert Action programs at the direction of the
President and National Security Council. These programs are
in the forefront of the war against terrorism and reducing
their funds undermines our ability to support the President
at this crucial point. I, therefore, urge you to restore our
requested funding levels.
b 1 �
(b)(1)
(b)(3)
TOP SECRET/
/X1
Approved for Release: 2020/09/25 C06240920
(b)(1)
gPCPPM/ /Y1
Approved for Release: 2020/09/25 C06240920
(b)(1)
The Honorable Nancy Pelosi
Joint Actions:
�
�
HPSCI Actions:
�
�
b)(1)
b)(3)
(b)(1)
(b)(3)
(b)(1)
(b)(3)
2
TOP SECRET/
/X1
Approved for Release: 2020/09/25 C06240920
(b)(1)
TOP SECRET/ X1
Approved for Release: 2020/09/25 C06240920
(b)(1)
The Honorable Nancy Pelosi
�
b)(1)
b)(3)
� (S) The proposed cut to the Office of (b)(1)
the Inspector General (OIG) is particularly (b)(3)
perplexing since it would eliminate all of its non-
personal services dollars. It would force OIG to
eliminate audits and inspections of all Agency field
stations; cut planned reviews of Agency covert
actions; virtually eliminate OIG's ability to
monitor activities of the Directorate of Operations;
and render OIG incapable of conducting
investigations of employee misconduct that require
access to people and documents outside of
Headquarters.
� (S) The proposed cut to the Office of (b)(1)
Congressional Affairs will force us to cut (b)(3)
approximately staff positions--seriously (b)(3)
restricting support we provide to Congress--as both (b)(1)
consumer and overseer of intelligence. We also
would have to reduce our level of service and
responsiveness to the National Security Council, the
Office of Management and Budget, and other Executive
Branch agencies on legislative requirements
and other Congressional matters involving the IC.
Thus, at a time when more communication is required,
we will have to reduce our capability to do so.
TOP SECRET/
3
xi (b)(1)
Approved for Release: 2020/09/25 C06240920
TOP SECRET/ (b)(1)
Approved for Release: 2020/09/25 C06240920
The Honorable Nancy Pelosi
SSCI Actions:
� (C) I want to reinforce the DCI's concerns that the
Senate Select Committee on Intelligence's
recommended cuts to our Performance-Based
Compensation program would eliminate the funds we
are requesting to better recognize superior
performance and motivate our work force. Moreover,
this cut also eliminates funds we need to cover
awards and within-grade increases.
� (C) The proposed reduction to Agency (W(1 )
Management/Leadership would severely undercut a (b)(3)
range of responsibilities critical to the day-to-day
management and coordination of the Agency's
corporate concerns--especially during a time of
stepped up activities during the war on terrorism.
The proposed cut also will negate our efforts in the
FY 2002 Congressional Budget justification to
address chronic shortfalls in salaries and benefits
associated with these positions that drive the need
for reprogramming of funds during the fiscal year.
� (S) Just as we are embarking on an aggressive
campaign to recall experienced personnel, the
proposed cut to independent contractors
would complicate our ability to fully participate in
the war on terrorism. Independent contractors, many
with previous Agency experience, are critical to our
ability to sustain activities on other priority
issues as we focus resources on the terrorist
threat.
�
Conclusion:
(S) I would like to reiterate my appreciation for the
support the HPSCI has shown for CIA's response to the
11 September terrorist attack. This response, and our
continuing support to the war on terrorism, entail a
(b)(1)
(b)(3)
(b)(1)
(b)(3)
TOP SECRET/
4
X1
Approved for Release: 2020/09/25 C06240920
(b)(1)
TnP PJCR1mi (b)(1)
Approved for Release: 2020/09/25 C06240920
The Honorable Nancy Pelosi
dramatic shift in our focus and require a major augmentation
of resources that we must sustain in the future. We all
know that intelligence will be the first line of defense in
this war, and I look forward to working with you to
strengthen that line.
(U//FOU0) You will find attached detailed appeals of
key individual programs recommended for reduction in the
marks. I stand ready to provide any additional information
you might need to support your deliberations.
(U) The original of this letter is also being sent to
the Chairman of the House Permanent Select Committee on
Intelligence.
(U) Please do not hesitate to call me if I may be of
further assistance.
Sincerely,
Enclosures
A. B. Krongard
Executive Director
(b)(6)
(b)(3)
TOP SECRET/
5
/x1 (b)(1)
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TOP SECRET/ /X1 (b)(1)
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HPSCI APPEALS
1.. Agency Management, Agency Leadership Project, DCI Senior
Staff, Executive Secretariat
2. Office of the Inspector General
3. Office of Congressional Affairs
4. Independent Contractors
5. Performance Based Compensation
6. Office of Transnational Issues,
7.
8.
9.
10.
11.
12. Authorization of FY 2000 Appropriated Funds
13.
(b)(3)
(b)(1)
(b)(1)
(b)(3)
(b)(1)
(b)(3)
TOP SECRET/
/x1 (b)(1)
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CENTRAL INTELLIGENCE AGENCY PROGRAM
FY 2002 Authorization Actions
(Dollars in Millions)
AGENCY MANAGEMENT, AGENCY LEADERSHIP PROJECT, DCI SENIOR
STAFF, EXECUTIVE SECRETARIAT
PRESIDENT'S
REOUEST
FUNDS
POSITIONS
HPSCI SSCI
CHANGE CHANGE
JUSTIFICATION AND IMPACT
APPEAL
(b)(3)
(b)(1)
(S) The proposed reduction would severely (b)(3)
undercut a range of responsibilities now carried out by a (b)(1)
host of offices that fall under the "umbrella" of the DCI
area. The requested funds and positions support corporate
financial personnel in the Office of the Chief Financial
Officer, as well as officers in the Office of Military
Affairs who coordinate CIA support to all categories of US
military targeting and related activities. The funds also
support senior leadership, advisory, and administrative
personnel in the Offices of the Executive Director and the
Director of Central Intelligence; the staff affiliated with
both offices is critical to the day-to-day management and
coordination of the Agency's corporate concerns.
(S) The proposed cut would negate the Agency's attempt
in the FY 2002 Congressional Budget Justification to address
chronic shortfalls in salaries and benefits associated with
these positions that drive the need for the reprogramming of
funds during the fiscylear. The reduction could force the
elimination of nearly staff personnel working critical (b)(3)
infrastructure and legal compliance issues. Alternatively, (b)(1)
the cut could force deep cuts in already limited NPS funds
that cover travel by the DCI and DDCI; systems engineering and
close support to DCI area components; recapitalization and
maintenance of DCI area information technology equipment; and
fixed infrastructure costs including rent and telephones.
(b)(1)
(b)(3)
SECRET//20111015
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Approved for Release: 2020/09/25 C06240920
CENTRAL INTELLIGENCE AGENCY PROGRAM
FY 2002 Authorization Actions
(Dollars in Millions)
OFFICE OF THE INSPECTOR GENERAL
PRESIDENT'S
REQUEST
FUNDS
POSITIONS
HPSCI
CHANGE
SSCI
CHANGE
JUSTIFICATION AND IMPACT
APPEAL
(b)(3)
(b)(1)
(S) The proposed cut would eliminate all non- (b)(3)
personal services dollars from the Office of the Inspector General (b)(1)
(OIG), leaving the office only enough resources to pay most of its
people. The proposed reduction would force the elimination of all
travel outside of the Headquarters area; all training of auditors,
inspectors, and investigators required to meet professional
standards; the professional printing of key reports including the
Semiannual Report to the DCI and Congress required by statute; and
basic supplies, such as paper and toner, required to print audit,
inspection, and investigation reports. From a program
perspective, the proposed reduction would force OIG to:
� Eliminate audits and inspections of all Agency field
stations.
� Cut planned reviews of Agency covert actions.
� Virtually eliminate the ability to monitor activities
of the Directorate of Operations.
Render OIG incapable of conducting investigations of
employee misconduct requiring access to people and
documents outside of Headquarters.
(S) The cut would force OIG to eliminate all independent
contractor support for inspections, and eliminate participation
in all Intelligence Community conferences. Because
of OIG's NPS funds-- in OIG's request
in the FY 2002 CBJ--are programmed for fixed costs of rent and
telephones, the proposed reduction would render the office
incapable of meeting its Working Capital Fund obligations
without staff reductions to obtain funds.
(b)(1)
(b)(3)
SECRET//20111015
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o-mni=m//'1A111/11E
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CENTRAL INTELLIGENCE AGENCY PROGRAM
FY 2002 Authorization Actions
(Dollars in Millions)
OFFICE OF CONGRESSIONAL AFFAIRS
PRESIDENT'S HPSCI SSCI APPEAL
REQUEST CHANGE CHANGE
FUNDS
POSITIONS
JUSTIFICATION AND IMPACT
(b)(3)
(b)(1)
(S) The proposed cut would seriously restrict (b)(3)
the support the CIA provides to Congress and the Executive Branch (b)(1)
on Congressional matters. Because more than of OCA's (b)(3)
budget covers salaries and benefits for employees, reduction
would force us to cut approximately staff positions. In (b)(3)
turn, this would mean reduced service and responsiveness for (b)(1)
OCA's customers on a variety of fronts. As the DCI's and CIA's
liaison with Congress, OCA is responsible for keeping members
fully informed on CIA and Intelligence Community (IC) issues;
responding to Congressionally Directed Actions, taskings, and
queries; and overseeing and coordinating Congressional require-
ments and issues of interest within the IC. OCA plays an equally
important role as the DCI's liaison with the National Security
Council, the Office of Management and Budget, and other Executive
Branch agencies on legislative requirements and other
Congressional matters involving the IC.
(b)(1)
(b)(3)
SECRET//20111.015
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n17,n1-117,m/I'In1-11n1C
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CENTRAL INTELLIGENCE AGENCY PROGRAM
FUNDS
POSITIONS
PRESIDENT'S
REQUEST
FY 2002 AUTHORIZATION ACTIONS
(Dollars in Millions)
INDEPENDENT CONTRACTORS
HPSCI SSCI
CHANGE CHANGE
JUSTIFICATION AND IMPACT
APPEAL
(b)(1)
(b)(3)
(S) The proposed cut to the Agency's budget for (b)(3)
Independent Contractors (ICs) would have a significant negative (b)(1)
impact on support to clandestine operations, analytic studies,
training, and translation. During the past several years, the
Agency increasingly has relied on Independent Contractors to
help support and carry out operations, both in the field and
at Headquarters. Many of these individuals are retired Agency
officers who bring with them years of valuable experience both in
the field and at Headquarters; they know our mission and have a
minimal learning curve for responding to critical requirements.
(S) Cutting this valued workforce would severely handicap
our efforts to maintain, much less increase, our ops tempo.
For instance, Independent Contractors make up the majority
of trainers at and any cut in that area (b)(1)
would slow the pace of training and, ultimately, deployment (b)(3)
of core collectors to the field. The September 11 attack
increased our need for Independent Contractors to backfill
behind staff officers we are deploying against the terrorist
target. We believe it would be a mistake to cut such a vital
part of our workforce at this critical time.
(b)(1)
(b)(3)
SECRET//20111015
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CENTRAL INTELLIGENCE AGENCY PROGRAM
FY 2002 Authorization Actions
(Dollars in Millions)
PERFORMANCE-BASED COMPENSATION
PRESIDENT'S
REQUEST
FUNDS .
POSITIONS
HPSCI
CHANGE
SSCI
CHANGE
JUSTIFICATION AND IMPACT
APPEAL
(S) The proposed cut would eliminate more
than a Performance-based Compensation initiative. The amount
includes
(b)(1)
(b)(3)
needs to be restored, or we will be unable to
compensate employees under the guidelines of our current
compensation system. We also request the restoration of the
remaining to allow us to continue our migration
to a compensation system that rewards performance.
(S) Once the final plan is developed internally, the
Committees will be fully briefed. To date, our Human Resources
staff has conducted job comparability and compensation market
surveys and has benchmarked other pay for performance programs.
The next phase of the plan is to evaluate various alternatives
in a pay for performance system that best meets Agency needs.
Once this analysis is complete, our implementation plan will be
briefed to Congress. Without the augmentation to
existing personnel services resources, we will be unable to
initiate even pilot programs during FY 2002.
(b)(1)
(b)(3)
(b)(1)
(b)(3)
(b)(1)
(b)(3)
SECRET//20111005
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CENTRAL INTELLIGENCE AGENCY PROGRAM
FY 2002 Authorization Actions
( (Dollars in Millions)
OFFICE OF TRANSNATIONAL ISSUES
PRESIDENT'S
REQUEST
FUNDS
POSITIONS
HPSCI
CHANGE.
SSCI
CHANGE
JUSTIFICATION AND IMPACT
APPEAL
The proposed cut would drastically reduce
the --and the Intelligence Community's (IC's)--ability to
support requests from senior policymakers at the National
Security Council and Department of State formulating
policy and assessing complementary national security-
level implications.
(b)(1)
(b)(3)
(b)(3)
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(b)(3)
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CENTRAL INTELLIGENCE AGENCY PROGRAM
FY 2002 AUTHORIZATION ACTIONS
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(b)(1)
(b)(3)
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CENTRAL INTELLIGENCE AGENCY PROGRAM
FY 2002 AUTHORIZATION ACTIONS
(Dollars in Millions)
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CENTRAL INTELLIGENCE AGENCY PROGRAM
FY 2002 AUTHORIZATION ACTIONS
(Dollars in Millions)
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FY 2002 AUTHORIZATION ACTIONS
(Dollars in Millions)
(b)(1)
(b)(1)
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(Dollars in Millions)
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SECRET! /20111015
Approved for Release: 2020/09/25 C06240920
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Approved for Release: 2020/09/25 C06240920
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Approved for Release: 2020/09/25 C06240920
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CENTRAL INTELLIGENCE AGENCY PROGRAM
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Approved for Release: 2020/09/25 C06240920
T(IP
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Approved for Release: 2020/09/25 C06240920
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TOP SECRET/
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Approved for Release: 2020/09/25 C06240920