ACTION MEMORANDUM A-436, DATED 23 JANUARY 1965,SUBJECT: FY 1966 BUDGET DEVELOPMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000200040007-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: June 17, 2002
• Sequence Number: 7
• Publication Date: February 3, 1965
• Content Type: MF

ase
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MEMORANDUM PORs The Direc
ZO
SUBJECT: Action Me
SUbjects
of Cent. Intelligence
endue AA36 dated 23 January
TT 1,56 Budget Developments
1. The referent memorandum tontains implications Whiah? taken
together with a series of other action memoranda and proposed Regu-
lations, give us in the ClanSeltine Services reason for concern.
The CS Division Chiefs in a Alva which I did not attend have
well be that I an reading
volunteered an identical opinion. It
mere into this latest memorandum it is intended to comer, but
1 believe thwt, it is in the best resof the AVOW and the
Clandestine Servioes fair ne to 3ke a*re that we have a elear
undere of the direction in which the controls alreedr
poeed, and thO$? hinted at in the referent memorandum, are fareing a
2. Th accumulative effect of these meesures would appear to
signal the advent of bureancretio controls Whieh are incemsistent
with and inimioal to the nature and mission of the Clandestine Ser-
vices. There is no sr/Adana, in the referent mesioruvium, or has my
other informatics come to my- attention, that an effective effort has
been made by the Agency to convince the Bureau of the INdget of this
fact. Co the other hand, the Bureau is cited time and again as the
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authority. I do not question the need for controls, but I do
Violation the nature of restraints whioh constitute barriers to per-
formance and Which result in a centrilisetien running counter to
our rationale of management, given the diversity of ends and means
of our Agency components. Surely the Bureau of the Budget, and if
necessary the President, eon be convinced that it is undesirable to
impose controls which thwart the very purpose of our existence.
3. At one time, the Financial Policy and Budget Committee
functioned as a useful device fir achieving eommunication and under.,
standing both of the Agonies problems as these were imposed from
without by nob agencies as the Bureau of the Budget* and of the
problems of the Agonies components in their efforts to adjust to
controls and requirements. It has ceased to be useful im this sense.
It has become largely a *newer channel for eommunicating decisions
and directives to the component services of the Agency. At its most
recent meeting en 25 January 3_965, for example, announcement was
made that referent Action Memorandum, content of which had not been
discussed with as nor with any of my colleagues previous:17, had
been signed and was on its wag to the various components. Following
this ennounaement, there was a recitation In general form of the
content of the memorandum. Copies were not distributed at the meeting
hence it was not feasible for mg representative to raise questices
concerning it.
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4. Althoegh I do not wish unduly to stress the failure to
achieve Joint resolution of the problems facing us, t believe it
Lies at the heart of an increasingly difficult personnel situation
for the Clandestine Serviees. As you may be aware, through a con-
scientious *Hest on the pert of all ceepenents of the Clandestine
Services and with no significant outeide assistance we are
achieving successfully the redwood coiling for this fiemayear.
Through a parallel effort, we have Identified a umber of personnel
*team, consider marginal and whom we would like to separate from
the Clandestine Services. Courses of action proposed in previoue
*Mien memdranda have proved totally inadmplete for our requirements
in this respeot. Our remomendations for alternstive courses of
action have been disapproved.
5. Control procedures now imam& a threatened reduction in
the mothers of our supergrade positions, the reduction in hiririg
(largely to a redwood level, of clerical replacements and 40f0 )J
the slow-down of promotion* through new review procedures atilimmicY
level for their *essential* nature, the inability of the ebssisetdne
Servioes to transfer their personnel to the other eareer services
while other career services recruit from the outside, and the ies
position of *average grede* and ?average salary* requiremeoSes Soik
gardless of the individual merits of these measures, they do in fact
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place us an the thresho of a situation which will result in an
absence of flexibility on my part to administer the personnel of
the Clandestine Service*. As you well know, people are our prin
cipa1 true asset, and their effective management and employment
are my prime concern.
6. We are oonfronted with the important question of estab-
lishing effective machinery in our Agency structure to permit the
Deputy Director, to deal effectively with the determination and
administration of control measures, relating to their budget, man-
power, and prOgriliadng?
Ri Helms
Deputy Director for Plane
Attachment -4- .44436
cc: DDCI
lx.Dir.
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