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• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000200140055-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 15, 2016
• Document Release Date: June 26, 2003
• Sequence Number: 55
• Publication Date: July 2, 1962
• Content Type: MFR

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2 July 1962
MEMORANDUM FOR THE RECORD
There was a meeting at 1000 on Friday, 29 June, in the
Executive Office Building attended by the following:
From the Bureau of the Budget - Messrs. Bell, Staats,
Amory, and Pettibone
From CIA
Mr. McCune, General
Carter, John Bross,
and Walter Elder
11;X3,14Z
Mr. Bell stated that in looking ahead to the 1964 budget, the
Government was faced with increased defense spending, especially
in the missile program. The President made it clear that no
department or program was sacred. Mr. Bell stated that he
understood that in accordance with General Carter's letter
CIA had stated its intentions of remaining within the 1963 budget
level of spending. Mr. McCone made the point that he had been
involved in Government budgets on and off for some 15 years, and
that he was a strong supporter of the idea of eliminating marginal
programs in order to make room for now onus. He regarded the
Bureau of the Budget as facing a real challenge in a changing situation
and that it was necessary to maintain a close check on all Federal
spending because of its impact on our economy.
Mr. Bell expressed the President's concern about our balance
of payments problem, stating that the President now requires the
Department of Defense and AID to submit to the President
personally those items which had an impact on the balance of
payments. The Bureau of the Budget is preparing a projection
based on both total dollar and exported dollar spending. Mr.
Bell asked if CIA had ever analyzed its budget from the point of view
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of its impact on the balance' Payments. Mr. McCone agreed
that the Agency should undertake such an analysis. looking
specifically at overseas procurements, salaries for foreign
nationals. salaries for US nationals and transportation costs.
General Carter pointed out that the removal of functions and
persons from overseas areas back to headquarters would
complicate the staffing problem at headquarters about which
the Bureau of the Budget was also concerned.
Action: CIA Comptroller will perform said analysis of the
CIA budget.
In response to a question by Mr. Bell about BOB projection
of budget estimates, the DCI made the point that the DDCI and
the Comptroller were pursuing a continuing review to
marginal operations off the bottom so that top priority projects
would receive the proper attention and the Agency would try to
maintain its present limits of spending. Mr. Bross made the
point that much of our budget is determined by outside forces
such as projects approved by the Special Group sad the t
effort over which CIA is not the master, and by the overhead
reconnaissance program. In short, we are obliged to provide
expensive services to outside customers. Mr. McCone stated
that the present figure of I Iwas an objective. Ha STAT
guessed that it would probably increase and that the medium
range figure as projected by BOB was probably more
realistic for future planning. Mr. McCone expressed his
concern about the growth-of DIA. citing a report that NSA
had told Dr. Killian that the S~gint effort was planning to STAT
expand from its present level
persons in the immediate future. Mr. McCone agreed that
personally. with appropriate staff help. would move in on this
problem. He indicated that there was a new climate, citing the
appointment of General Samford as Chairman of the Sigint
Committee, and of General Blake as the new Director of NSA.
Mr. McCone made the point that the Secretary of Defense
and Mr. Gilpat* were making a strong effort to maintain DIA
at its present force level at the expense of reducing individual
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service agencies. Mr. Amory expressed concern about duplication
among ILIA and the individual services and Mr. McCone stated that
USIA representation would probably remain as it is for another six
months. noting that General Carroll presently has a paper before
the JCS which would authorise him as the production authority for
DOD. There was some discussion of the pace with which the DCI
ought to assert his authority to exercise leadership and effective
guidance in the intelligence community. It was agreed Chet the
DCI would attend a joint meeting with the Secretary of Defense and
the BOB on this overall question.
There was a discussion of the problem of fiwLncinz the Joint
projects with ? ecific reference to OXCART[
STAT
Action: DCI to discuss with Secreary McNamara the problems
of long-term budget planning for the intelligence community.
There was a general discussion of the photographic interpretation
problem and Mr. Amory stated that there was a move afoot to
establish a separate DIA PIG. Mr. Bell asked for general
observations on joint funding and joint facilities. DCI pointed
out that this should be examined on a case-by-case basis and in
the case of OXCART, it should proceed along its present lines
largely because of the security problems involved. Mr. Bell
pointed out that in the 1964 b et, CIA would face the problem
of sustaining operational casts STAT
STAT There was some discussion STAT
the OXCART program.
]BOB raised a question of the NR? which was described as a
"two-headed monster.'" Mr. McCone observed that the NRQ would
work satisfactorily so long as the present personalities were in
place, but he stated that the center of gravity on satellite
reconnaissance was gradually shifting to the DOD. He stated
his opinion that NRO and NSA must be established with direct
lines to the Secretary of Defense on the grounds that reconnaissance
and Sigint were both wider and deeper than any DIA. authority or
responsibility.
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Mr. Amory asked if we could project a "reasonable"
reconnaissance program. The DCI said that we were engaged
in weighing requirements and needs against risks and that the
present pace seemed to be about right.
The BOB raised again he question of the Sigint Committee
and the role which the DCI shteuld play in this problem. The
DCI cited General Blake's authority and experience and
reminded BOB about the establishment of General Samford.
DCI pointed out that the DOD is the executive agent for Sigint
and noted that he was not satisfied with the DOD management of
considerable capab ty has been given ue weight.
STAT
Budget raised the question of clandestine activities by the service
agencies. Mr. McCone thought that present ground rules for
coordination were adequate and that the services should build a
clandestine capability. Mr. Amory said it was not a question of
control, but a question of ability and he cited ACRAPAC as an example
which had produced no reports considered worth using in CIA
publications.
NSA.
The Bureau of We
BOB raised the question of duplication of mapping services. It
was agreed that this was not a DCI responsibility.
On the question of watch offices and indications center a, the
DCI and DDCI offered clarification of the role of NIC as a staff
of the'Wktch Committee as contrasted with normal alerting functions
and the role of the DIA indications center.
Action. CIA to send Mr. Amory papers on NIC?CIIC relations.
There was some discussion of the DOD work on a national
command and control system involving Defense Communications
Agency (DCA), Stanford Research Institute, and the Baker Panel.
Action: Elder to check with to ensure that our
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STAT
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STAT
On the question of reserves, the DCI stated that the use of the
reserve fund was clearly understood to be for emergencies and for
unforeseen needs.
BOB raised the question of the activities of Radio Free Europe
and the Radio Liberty. The 16CI observed that there was a basic
policy desire which needed to be resolved by the President after
which we could got down to the question of the level of the effort.
Actions DCI wants report on the progress of the NPIC building.
Kirkpatrick will handle.
Action: DCI wants a cost figure on a satellite launch. John Bross
will handle.
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