LETTER TO DR. R. W. VAN DE VELDE FROM RICHARD HELMS
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Document Number (FOIA) /ESDN (CREST):
CIA-RDP84-00313R000300190008-1
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K
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13
Document Creation Date:
December 12, 2016
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Publication Date:
April 24, 1972
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CENTRAL INTELLIGENCE AGENCY
WASHINGTON, D.C. 20505
OFFICE OF THE DIRECTOR
24 April 1972
Dr. R. W. van de Velde
Faculty Secretary
Rockefeller Public Service Awards
Woodrow Wilson School
Princeton, New Jersey 08540
Dear Dr. van de Velde:
It is with pleasure and pride that I again nominate Mr.
Lawrence R. Houston, General Counsel of the Central Intelligence
Agency, for the 1972 Rockefeller Public Service Award in the field
of Professional Accomplishment and Leadership.
In my recommendation last year I included a detailed state-
ment of Mr. Houston's many contributions to the nation and to this
Agency over the years. I am sure you wilLreview that submission
and consequently I will not repeat it in extenso. At the same time,
I would like to highlight a few overall points:
a. I realize that Mr. Houston will be sixty years old
on January 4th, 1973, and consequently would be expected
to retire at about that time from this Agency. While he
may extend his service somewhat, I would particularly
like to stress that I do not believe this a basis for omitting
him from consideration for this important award. He was
recommended last year and the award would be a highly
appropriate recognition of his many major contributions
over the years. It will serve as an inspiration to younger
officials in the Agency and outside.
b. Mr. Houston's contribution to the resolution of the
difficulties surrounding the U-2 operation was covered in
the recommendation last year. Laudable as it was, how-
ever, it was in no sense the most prominent or lasting of
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his contributions. In the long term, "intelligence law"
and especially the legislative and regulatory prescripts
under which the Agency operates will bear his enduring
mark. He also has contributed in many ways, which
cannot be described in detail for security reasons, to
the construction of appropriate legal and corporate entities
to permit operations to be carried out by this Agency with-
out exposure to hostile eyes.
c. Mr. Houston has also served in a major way as the
"conscience" of the Agency, ensuring that the considerable
special authorities granted to the Agency are used only
within the legal and moral limits contemplated by the stat-
utes granting them. In this fashion he has provided inval-
uable counsel to me and to previous Directors, and displayed
the highest professional and leadership qualities.
A number of eminent citizens have indicated their support of this
recommendation and will be addressing you directly. I hope that the
Committee will be able to recognize by this award the major contribu-
tion Mr. Houston has made to the nation over the years.
STATINTL
Sincerely,
Richard Helms
Director
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1971 ROCKEFELLER PUBLIC SERVICE AWARDS
NOIVIINATION OF MR. LAWRENCE R. HOUSTON
Name, Title and Grade
Organizational Location
Lawrence R. Houston, General
Central Intelligence Agency
Washington, D. C. 20505
Counsel, EP V
Residence
STATOTHR
Education
1931-35 Harvard University,
B.A. History
1936-39 University of Virginia, LL.B.
1953 Advanced Management Program
Harvard University
1954 Human Resources Program
Length of Service
24 years
Marital Status
Married, two children
Date and Place of Birth
:
4 January 1913, St. Louis, Missouri
Nomination Field
Professional Accomplishment and Leadership
SUMMARY
Sverdlovsk, a Berlin bridge, and the committee rooms of Congress, all
these disparate places have a common factor in the calm, effective presence of
Lawrence R. Houston, General Counsel for CIA. That has been his career;
Larry Houston was our first and continues as our only General Counsel. Most
significantly, Mr. Houston was the legal architect of CIA.
Mr. Houston's exemplary service and unique contributions to our national
security began even before CIA became a functioning reality. His performance
with the Agency and with its predecessors will be engraved in the annals of CIA
as a superlative record of devotion, dedication and ability.
Prior to World War It, Mr. Houston was well established in a private legal
career. With the war he entered military service and was commissioned in the
Army JAG. He was assigned to OSS and served abroad as Theater Counsel,
rapidly assuming executive responsibilities. At war's end, he returned to OSS
Headquarters and was at once involved in the preparatory planning for a central-
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As Mr. Houston examined the basic concepts he also appraised new threats
to the national security then barely apparent. Convinced that a centralized
intelligence organization was essential as the first line of defense, he did not
return to his promising career -- he stayed to become the legal architect of the
Central Intelligence Agency.
Demonstrating the highest degree of professional skills and, even more
importantly, exercising almost prophetic foresight, Mr. Houston in the next
year created the legislative design for the Agency that was incorporated in the
National Security Act of 1947. His brilliant vision met the challenge of the un-
known -- no changes have been required or made in the statute that established
the mission of the Agency. An equally remarkable achievement was the creation
of the Central Intelligence Agency Act of 1949. Mr. Houston designed the legal
tools that would enable an intelligence organization to function effectively.
Within the framework of our democratic society this was no facile task, but again
an unprecedented job was done. Applying his skill, imagination and, again above
all, foresight, he formulated the unique authority required. The artisanship of
these legal instruments for a new Agency without precedent in American history
is so superior that here, again, no changes have been made.
Throughout his career, Mr. Houston has exercised a broad range of
responsibilities involving legislation. Normally, this included responding to
the requirements of Congress but the sensitive nature of our work inevitably
complicated compliance with these requests. Of even greater importance is
Mr. Houston's responsibility for reviewing pending legislation to ensure that
it would have no adverse impact upon the Agency's unique authorities. On many
occasions legislation drafted for government-wide application could have
seriously impaired the functioning of the Agency, and in consequence the national
security. Thus, it was Mr. Houston's task to demonstrate that the needs of the
Agency were unique, and to convince the framers of the legislation that Agency
authorities should be exempt. He displayed great skill in drafting substitute
provisions that safeguarded the Agency's interests and, in turn, the national
interest.
The legal executive behind the U-2 story and the Francis Gary Powers
saga again was Lawrence Houston. Beginning with the unique aircraft procure-
ment contract, he applied his legal skills and ingenuity to the program. The
contract itself was a prime factor in achieving the first U-2 flight six months
after contract signature. The incentive concepts underlying this contract have
since been widely adopted by the Department of Defense. Particularly notable
.1was the thwarting of the aviation industrial espionage network; the aviation in-
dustry learned of the U-2 only after it had been built, tested and become
operational. The U.2 program over Russia ended on I May 1960 when Powers
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was captured near Sverdlovsk. Behind the scenes Mr. Houston was fully engaged
in the unique aspects of international law which were involved. Alter Powers'
trial and imprisonment, Mr. Houston oversaw negotiations which brought about
the exchange of Powers for Rudolf Abel, a convicted Russian spy. Even while
awaiting word that the two men had been exchanged on a bridge in Berlin, Mr.
Houston was devising the means to resolve the many questions concerning the
crash of the U-2 and the conduct of Powers during his mission and trial. The
Agency urgently needed unambiguous answers, and the public and Congress were
clamoring for them. It was Mr. Houston who both conceived a board of inquiry
and served as its counsel. During this turbulent series of events, Mr. Houston's
legal skills and incisive counsel made exceptional contributions to the board's
findings and high national interest was served.
During recent years the Agency has become increasingly involved in the
judicial process. In every litigation the protection of our national security com-
plicates enormously the often complex legal issues, and the courts themselves
have defined a sharply limited area within which national security is paramount.
By so doing, the courts safeguard the constitutional rights of American citizens.
In every court case to which the Agency was party it has been Mr. Houston's
responsibility to present to the courts, in camera where necessary, the reasons
for asserting considerations of national security. These presentations have in-
volved not judges alone but the Department of Justice, U. S. attorneys, and
actions in State courts. In balancing the often conflicting requirements of
national security with the rights of citizens, Mr. Houston's performance has
been superlative.
Mr. Houston is both creator and principal practician of "intelligence law".
This new body of law has derived from the continuing flow of Agency activities,
in particular the conduct of clandestine operations. Here there were no anteced-
ents, no precedents attorneys could consult. Consequently, Mr. Houston was
called upon to create new legal concepts and instruments to resolve a congeries
of problems unique to the profession of intelligence and to the needs of our
national security. His solutions have become precedents in this growing and
highly specialized legal field, and his pre-eminence is recognized by senior
officials throughout government who frequently seek his advice and guidance.
Mr. Houston has been continuously involved in fiscal matters which, in
this Agency, are unique in government. Congress intended the Agency to exercise
complete freedom from the normal requirements of government expenditures, but
this freedom places a weighty responsibility on the Director of Central Intelligence.
1, Accordingly, all of the Directors have sought Mr. Houston's counsel on discretion-
ary expenditures. Indeed, he has played a leading role in developing implementing
mechanisms.
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One of many legal innovations created by Mr. Houston has withstood
testing by the courts on three occasions. This is the provision which authorizes
the Director to terminate any employee whenever deemed "necessary or advis-
able in the interests of the United States." This authority was conferred on the
Director by Congress in recognition of potential dangers to national security
were CIA required to follow normal procedures relating to the discharge of
government employees. Mr. Houston's notable contribution lies not alone in
his conception of this security instrument, but equally in his counselling on its
humane and judicious use.
Among the commendations given to Mr. Houston is the Agency's Intelligence
Medal of Merit, awarded for outstanding service in a particularly sensitive
matter. Over a period of three years he persevered in a series of intricate
negotiations in behalf of another government agency and succeeded in recouping
government funds in excess of $1, 000, 000.
As this Agency's first and only General Counsel, Mr. Houston has practiced
two professions simultaneously: intelligence and the law. Through the quality of
his performance in each, the Agency has gained immeasurably while the govern-
ment as a whole has been a beneficiary.
During more than two decades of service, Mr. Houston has compiled a
record of achievement so extraordinary that, joined with his devotion and
thorough dedication, he has become a key adviser to me as to all other Directors
of Central Intelligence. Unquestionably the effects of his panoramic contributions
to the Agency and to our country will endure. They will remain as witness to his
expertise, to his character, and to his superlative capacity in responding to the
challenges of our national security and the dramatic times in which we live.
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NOMINATION STATEMENT or MR. LAWRENCE R. HOUSTON
FOR THE ROCKEFELLER PUBLIC SERVICE AWARD IN THE FIELD
OF
PROFESSIONAL ACCOMPLISHMENT AND LEADERSHIP
After thorough preparation for the legal profession, Lawrence R. Houston
was admitted to the Bar and joined the New York firm of White and Case in 1939.
Within a few years, Mr. Houston entered military service. After Army Judge
Advocate General Officers' Candidate School, he was commissioned in July 1944
and assigned to the Office of General Counsel, Office of Strategic Services. Soon
Mr. Houston was transferred to MEDTO as Theater Counsel for the OSS Mission
where conspicuous performance won him assignment to the OSS Mission in Cairo.
There he served both as Theater Counsel and Deputy Chief. After the war, Mr.
Houston returned to OSS Headquarters at Washington, D. C., where he began
developing studies and plans relating to a permanent centralized intelligence
organization.
By late 1944, General William J. Donovan, head of OSS, had presented to
President Roosevelt concept papers designed to prevent the disaster of another
Pearl Harbor. The means proposed was a permanent peace-time central intel-
ligence organization reporting directly to the President.
Meanwhile, liquidation of OSS wartime activities was under way. The
Strategic Services Unit was established in the Wa'er Department to continue orderly
termination and to serve as holding mechanism for essential OSS personnel who
were to become the nucleus of the Central Intelligence Agency. Mr. Houston's
demonstrated professional skills and executive ability were recognized by his
appointment in February 1946 as General Counsel for SSU. At that time he was
deeply involved in the legislative aspects of the planned central intelligence
organization, and it was during this period that Mr. Houston had the opportunity
to probe and appraise the nature of potential threats to our national security.
Convinced that a centralized intelligence organization was essential to counter
threats already discernible, he put what were almost prophetic assumptions to
practical test. Instead of returning to his promising law practice in New York,
he stayed to become the legal architect of the Central Intelligence Agency.
So it is that many of Mr. Houston's major contributions to our national
security were made before CIA was created. For a year his proposals for
functions and duties were scrutinized at high-level interdepartmental conferences,
s and challenged in congressional committee hearings. His objective was without
precedent in our history: to build the statutory foundation for a permanent national
intelligence agency. These efforts culminated in the creation of CIA through a key
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provision in the National Security Act of 1947. That Mr. Houston's remarkable
vision more than met the challenge is clear ? after more than two decades the
mission and responsibility of the Agency under that early law remain unchanged.
Unquestionably this achievement is an enduring tribute both to his foresight and
his pioneering applications of legal skill.
Having established the legal framework of the Agency and its mission,
Mr. Houston next began to forge the special legal tools required to construct a
successful and permanent intelligence organization. Many unorthodox departures
were essential if an intelligence organization were to function effectively within
a democratic society; a portion of the Agency's activities must be conducted in
secret and the greatest precautions exercised to safeguard both raw and finished
intelligence. Above all, Agency sources and methods must be protected from
compromise. Painstakingly, Mr. Houston defined the many specialized legal
areas where unprecedented statutory enablernents would be required. These
included procurement, appropriations and expenditures, personnel, statistical
and other reporting requirements, and haven in the United States for selected
aliens. His studies became the blueprints for an assembly of legal instruments
which Congress enacted in 1949 as Pls 81-110. Again, the precision of Mr.
Houston's studies and the accuracy of his judgments are attested by the fact that
in the following 22 years no changes have been made in those unique authorities
so fundamental to the effective and secure functioning of the Central Intelligence
Agency.
Throughout most of his long service with the Agency, Mr. Houston has had
supervisory or direct responsibility for congressional matters. This responsi-
bility includes not only the extremely important "liaison" areas but, even more
significantly, specialized legislative aspects. His superb contributions to the
National Security Act of 1947 and PL 81-110 have already been discussed. His
next major legal landmark was the establishment of a new retirement system for
certain personnel in CIA. As the Agency began to mature a need was discerned
to retire certain groups engaged in duties unique to the Agency at an earlier age
than provided for under existing Civil Service Retirement laws. Here again Mr.
Houston conducted legal research in depth and applied to it his creative imagina-
tion. The results were approved by Congress as the "Central Intelligence Agency
Retirement Act of 1964 for Certain Employees". That innovation and persuasive-
ness are among Mr. Houston's many qualities is exemplified by this legislation
which authorized the only new major U. S. Government retirement system in the
last 42 years. Once more his professional foresight was validated by the test of
application: the Retirement Act has served and continues to serve the needs of
CIA and its employees.
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But beyond these remarkable achievements remains the continuing responsi-
bility of CIA's General Counsel to review all pending legislation and determine its
possible effect on Agency activities. In fulfilling this responsibility, as in many
others, Mr. Houston clearly has shown sustained superior performance and
meritorious enduring accomplishment.
On countless occasions Mr. Houston successfully demonstrated to congres-
sional committees the unintended impact on the Agency of proposed general
legislation. Not only did his reasoned presentations avoid prejudicial effects on
the Agency and in turn the national security but, drawing upon his comprehensive
experience, Mr. Houston was able to advocate substantial improvements which
benefitted not only the Agency but other departments of our government as well.
Specific examples of the latter would include assistance rendered to the Depart-
ment of Justice in connection with Title III of the Omnibus Crime Control and Safe
Streets Act of 1968. The congressional committees concerned requested the
Agency to negotiate directly with the Department of Justice and accepted the re-
sulting language which, for the first time, gave explicit statutory authorization
for electronic surveillance "to obtain foreign intelligence information deemed
essential to the security of the United States." Another such instance wee the
proposed amendment to the Federal Employees' Compensation Act Amendments
of 1966. Here Mr. Houston's thorough and detailed knowledge of the Federal
Employees' Compensation Act brought about major improvements in proposed
amendments which, throughout the entire government service, will permanently
ease the financial burdens of employees injured inethe performance of duty, or
the dependents of employees killed in the performance of duty.
Mr. Houston was the legal executive behind the U-2 saga and the story of
Francis Gary Powers. Six months after Mr. Houston negotiated the contract for
building the U-2 aircraft, the first U-2 was airborne. But this is not the sole
precedent-shattering aspect; the contract itself was a distinct departure from
normal contractual formulas in the aircraft industry. Its incentive provisions
served as a model for the Department of Defense in later contract negotiations.
While these accomplishments are certainly remarkable, a particularly noteworthy
aspect relates to the security of the program. ? The t.i-Z was built, tested and made
operational before the aircraft industry as a whole learned of its existence, despite
the industry's well-developed industrial espionage network. The display of
imagination and resourcefulness by Mr. Houston in guiding this program to a
secure and successful conclusion must rank as unique in our industrial history.
Although the U-2 program over Russia came to an end on I May 1960 when Gary
Powers was brought down and captured near Sverdlovsk, the legal aspects of
'Powers detention and subsequent trial raised new questions of international law
to which Mr. Houston quickly addressed himself. Behind the scenes Mr. Houston
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oversaw negotiations that brought about the exchange of Powers for Rudolf Abel,
the Russian spy who was then serving an espionage sentence in a Federal Peniten-
tiary. Even while the exchange was taking place on a Berlin bridge, Mr. Houston
was at work on the vital and unprecedented challenge of resolving the many
questions then surrounding Gary Powers' mission and his conduct during the trial
and while in prison. Not only did the Agency need unambiguous answers, the
American public and Congress were demanding them. Out of these disordered
circumstances Mr. Houston conceived the board of inquiry which he then served
as counsel. He recommended that a Federal Judge preside, and former Judge
E. Barrett Prettyman of the United States Circuit Court of Appeals for the District
of Columbia was named. The board announced to the world its findings that Powers
had "lived up to terms of his employment and Instructions.., and in his obligations
as an American." During subsequent congressional hearings Agency officials and
Mr. Powers were witnesses, with Mr. Houston present as their counsel. That so
much of benefit to our government Was preserved in a uniquely difficult situation is
due largely to Mr. Houston's clear insight, incisive skills and cogent counsel --
all of which merited the highest praise.
Increasingly over the years the Agency has become involved in court cases.
Invariably these situations present intricate legal problems further complicated
by security considerations. The Agency has been both defendant and witness, and
In other ways peripherally concerned. The mere involvement of CIA in any
judicial process creates a dilemma: on one hand the courts must protect and grant
to our citizens the full rights to which they are entitled under the constitution and
the law, while the Agency is charged by law with the responsibility of safeguarding
the interests of national security. Inevitably these obligations conflict in greater
or lesser degree. Here, the equitable balancing of critical interests is as delicate
as it is essential, but with profound discernment and judgment, tempered by his
background, experience and skills, Mr. Houston has analyzed complex legal issues
and appeared personally in court on numerous occasions. He has discussed national
security implications with judges in camera, and he has worked cooperatively with
the Department of Justice and U. S. attorneys throughout the country. These
activities are not limited to the Federal courts; they have included actions in State
courts and negotiation with district attorneys in many States. Mr. Houston's legal
acumen combined with his high competence as a professional intelligence officer
have enabled him to present his views so effectively as to establish a magnificent
record of protecting the interests of national security while safeguarding fully the
rights of individuals involved.
An early and major area of Mr. Houston's responsibility concerned expendi-
ture of government funds. By statute the Director is given unique authority to
expend funds free from normal government restraints and accounting requirements.
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This authority carries with it unique responsibility. It is a heavy trust. Utilizing
his professional skills, wisdom and profound integrity, Mr. Houston took a leading
role in developing the concepts, policies and procedures under which Agency funds
are expended. Concerning the propriety of Agency expenditures, every Director
of Central Intelligence has sought Mr. Houston's guidance and professional counsel
in order to maintain the critical balance between the needs of the Agency and the
established requirements of our government. In this area, as in so many others,
Mr. Houston has made significant contributions to the national interest.
With the establishment of CIA, a new field of law came into existence and
!nix. Houston has been the principal author and practician of what has come to be
known as "intelligence law". This new body' of law has derived from the continuing
flow of Agency activities, in particular the conduct of clandestine operations. Here
there were no antecedents, no lawbooks attorneys could consult. Consequently.
vir. Houston was called upon to pioneer new legal concepts and instruments to
resolve a congeries of problems unique to the profession of intelligence and to the
needs of our national security. Mr. Houston's solutions have become precedents
in this growing and highly specialized legal field, and his pre-eminence is
recognized by senior officials throughout the government who frequently seek his
advice and guidance.
One of the many legal implements designed by Mr. Houston is that provision
of law which authorizes the Director of Central Intelligence to terminate the em-
ployment of any officer of the Agency whenever deemed "necessary or advisable in
the interests of the United states." This authority may be invoked by the Director
"notwithstanding ... the provisions of any other law .... " On three occasions
this authority has been tested in the courts and the courts have uniformly upheld
it as a plenary power. Congress conferred this authority on the Director in
recognition of dangers to the national security that could arise were the Director
handicapped by normal laws relating to discharge of government employees. Mr.
ifouston's contribution lies not alone in having conceived this legal authority, but
in his counselling of all Directors of the Agency on its humane and judicious
application. Arbitrary exercise of this provision could quickly destroy the morale
of 'valued employees; however, the attrition rate of employees in CIA is by far the
lowest in our government. Unquestionably, Mr. Houston's judgment and uncommon
sense in this delicate area are significantly responsible for so remarkable a record.
Noteworthy among Mr. Houston's many commendations is the award to him
of the Intelligence Medal of .M,;\ rit. The episode involved the apparent loss to
another government agency of more than $1,000, 000. Because security considera-
tions precluded resort to the courts, Mr. Houston undertook over a period of three
years a series of the most intricate and sensitive negotiations, persevering until
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the debt to the government was entirely satisfied. Mr. Houston's initiatives and
his creative legal thinking were directly responsible for recovering this very
large debt.
After 24 years and six Directors of Central Intelligence, Mr. Houston
continues to be the first and only General Counsel of this Agency. His dedication
to public service has been complete. In him, deep devotion to duty has been the
companion of modesty, imagination and flexibility. His enormous contributions
to the Agency and to our country will endure as testimony of his unique capacity
to meet the high challenge of serving the national interest. Throughout his
career, Mr. Houstorx's every act has reflected the most laudable credit upon
himself and on his dual professions intelligence and the law.
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References: Mr. Lawrence R. Houston
Central Intelligence Agency
Persons well acquainted with Mr. Houston and to whom
inquiries may be addressed by the Committee on Selection:
John A. McCone
Brackley Shaw. Esq.
? Gordon Gray
Honorable Hugh L. Cu
.n
Jr.
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