DCI MEETING WITH SPECIAL GROUP OF HOUSE APPROPRIATIONS COMMITTEE ON THE 'BLACK' BUDGET - 27 APRIL 1966

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72R00410R000200060001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 20, 2016
• Document Release Date: October 23, 2006
• Sequence Number: 1
• Publication Date: April 28, 1966
• Content Type: MF

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loClitORANDUM FOR TEE RECORD
0-
BOCCT:
DCI Meeting with Special Group of House Appropriations
Conunittee on the "Black" Budget - 27 April 1966
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28 April 1966
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1. The Director, accompanied by John Clarke and John S. Warner,
was present at a meeting of a special group of House Appropriations
Committee to discuss the "black" budget. Present from the Committee
were:
George H. Mahon
Frank T. Bow
Glenard Lipscomb
Staff man present:
Robert Michaels
Present from Defense:
Altotander Flax, Assistant Secretary of the Air Force (Research
and Development)
Robert N. Anthony, Assistant Secretary of Defense
John S. Foster, Jr., Director of Defense Research and Engineering
The meeting lasted for approximately an hour. There was no transcript.
OGC Has Reviewed
NRO review(s) completed.
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Z. The' principal purpose was to discuss the "black" budget.
Mr. Mahon asked why there should be a "black" budget. Mr. Flax
indicated there were many political consideration. involved in not
officially acknowledging overhead photography. He stated that w.
assumed the Russians are aware of this. Hi referred to the long-
standing NSC policy of not discouraging the idea of satellite
photography. by the U. S. but that there should be no official acknowl-
edgment. Mr. Flax stated there had boon recent consideration of
removing special security controls and it had been determined that
at the normal secret level there are too any leaks and the effective
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The Director
pointed out that official acknowledgment would give the Soviets an
effective propaganda weapon and would force them to react.
3. In response to a quotation, the Director indicated that as a
rough estimate the Soviet satellite photography is about 75% of the
U. S. capability and pointed out that their reconnaissance does assist
them with their targeting. Mr. Flax also added that satellites are
vulnerable to being knocked down without nuclear weapons and official
acknowledgment might push the Soviets into attempting this.
4. Mr. Mahon asked why could not the funds for the boosters
and launch facilities be in the "white' budget. Ms. Flax stated the
boosters are different than any others being used and would stand out
in * "white" budget. The Director also mentioned the CIA budget and
the value we would gain if we had a precise figure on the Soviet budget.
5. Mr. Anthony ran down the various line items of the "black"
budget in accordance with the attached paper speaking only generally
to the major items. 11 was pointed out that the "black" budget consist.
only of CIA. budget and the NRO program which Mr. Flax reminded
Mr. Mahon was by definition, overflight of denied areas.
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6. Mr: Mahon asked the question of whether the U-2 production
line should be reopened. Mr. Flax stated that this had been considered
for the 1967 budget but it had been decided not to do so and it had been
agreed to upgrade the SAC U-Zs to meet CIA standards 25X1D
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7. Mr. Foster made an observation that he would like to see
more R&D funds both by CIA and the Air Force in support of intelligence
activities, implying there had been a reduction for 1967. He pointed out
that it is difficult to find appropriate people and talent for this R&D.
Further there are strong pressures to make systems operational as
soon as possible. Mr. Lipscomb then inquired as to why the Advanced
R&D funds were lass this year than last year, and did not really get a
fully responsive answer. Mr. Mahon asked. with the divided control
of NRO. if this did not cause problems in selecting new systems and
starting new R&D. Mr. Flax stated that this did not cause any real
problems any more than competing systems within any one department.
The Director stated, that as one of the partners in control of NAO, the
divided control as such did not cause problems, that there are harmonious
working relationships on this. He did state that on occasion there are
hard decisions to be made but these same decisions as to systems and
R&D would have to be made within one department where there are
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competing systems.
9. Mr. Mahon asked if the "black" budget got a clover scrutiny
than the "white" budget. Mr. Anthony stated that because it is reviewed
by much higher level people, he believed it got more careful scrutiny.
The DCI then discussed the detailed scrutiny of the Agency budget by
the Bureau of the Budget.
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10. The meeting closed and it was not clear whether Mr.
Mahon would want additional justification on the NRO side.
Att.
Copy 1 OGC/LC
Copy Z - DDCI w/o att
Copy 3 ? Ex Dir/Compt - w/o ad
Copy 4 - DIAILT w/o ad
Copy 5 - WPM, w/o Mt
OGC / LC:
Legislative Counsel
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