MCCONE REPLIED HE HAD ASKED HIS DEPUTY AND THE COMPTROLLER TO UNDERTAKE A SEARCHING REVIEW OF ALL AGENCY'S PROGRAMS

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 06935552
• Release Decision: RIFPUB
• Original Classification: U
• Document Page Count: 2
• Document Creation Date: July 11, 2023
• Document Release Date: September 9, 2022
• Case Number: F-2015-01188

Approved for Release: 2022/07/20 C06935552
McCone replied he had asked his deputy and the comptroller to
undertake a searching review of all the Agency's programs with' a. view' '
to eliminating marginal or outdated activities. He said that more than
15 yeais of experience Lathe government had convinced hint a .
continuing pruning process was required. As for thi next year's
budget, the DC1 thought it would escalate some, noting that ti.!e. Agency .
, .�
had to perform tasks* levied, on it by the Special Group, for example..
,
Bell Said that the Bureau Was especially concerned about dollar
. �� , -�-.
spending and asked that the Agency analyze its 'programs in hard
Currency areas such as NATO and Japan which involved direct.dollar �
costs (procurements and subsidies to local organizations) and Indirect
costs (resulting from the presence of staff personnel who spent -*
. .
money in the area). Mccone agreed to have such an analysis under-.
�
*ken, but he 'pointed out that certain activities which. involved ,
dollar drains.- such as the Defector Reception Center in West Ceimany. �
could be carried out in the United States, lxit at a much greater cost. :.
Furthermore, moving activities back to the United States would
increase the headquarters component and would involve policy and
_
legal problem.
Approved for Release: 2022/07/20 C06935552
Approved for Release: 2022/07/20 C06935552
Bell recognized the problems, and said that what the Bureau '
wanted was an assurance that a decision to continue activities in
hard-currency areas had been taken after a serious consideration of
A
the dollar impact had been made. Amory noted that we might �
consider financing in whole or in partiby all or one of our NATO
allies. :-
�
. �
The discussion then turned to the possibility of tke Department
of Defense recognizing tiutt one of the greatest potential source of
savings lay in the realm- of military intelligence activities:- Bell
�
, . �
�
asked if the Dui were in a position to review specific military projects
from the point of vie* of costs as well as effectiveness. The DCI
�.
observed that, with respect to his relations with the military services
and NSA, he would have to proceed slowly.. He. said that he expected
-
to create a new staff through which he would exercise his responsibilities
�
as coordinator of the.intelligence community. He noted that he had
-
been instrumental in selecting the new Director of�NSA, General Blake.
He said that the military .services would continue to sit atit members
of USIB for at least six Months. In the meantime, the Secretary of
�
Defense was reviewing carefully any proposals to increase the
military intelligence establishment pending the consolidation of
Intelligence activities in DIA. Amory stressed the Bureau's hope
- 277
Approved for Release: 2022/07/20 C06935552