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DEPARTMENT OF THE AIR FORCE

WASHINGTON

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OFF= or ?WC UNOCR SCCRILTARY

February 12, 1965

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HANOLS VI 0 e "% NI HOt

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MZIORANDIZ FOR MR. VANCE

Cy,

The attached letter to you from Mr. McCone is characteristically misleading..

The first two sentences of the letter set into o?position

citation from the NRO Agreement referring to inclusion by

the CIA of NRO funds in its budget presentation, and substantiatf

of the NRO budget by the DNRO. In fact, by the NRO Agreement•,

these actions are not in opposition. The following is the full

text of the applicable provision, which establishes as a

responsibility of the DNRO the

"Preparation of budget requests for all NRO programs,

and presentation and substantiation of such budget

requests to the Secretary of Defense and the Director

of Central Intelligence, the Bureau of the Budget and

Congressional Committees. :CIA will include in its

budget presentation to the Bureau of the Budget and

Congressional Committees the funds for those NRP tasks

which are assigned to CIA and which are to be financed

from NRO resources:"

The first paragraph of the letter also states "Last year

there was a general discussion of reconnaissance and other

sensitive programs with Senator Russell, in which Mr. Hitch

and others representing the Defense Department and I and ma.mbers

___,,zo of the CIA staff participated." Both Dr. Brown and Dr. Hitch,

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who participated in such a discussion with Senator Russell, are

firm thatlir.McCone was not present. Mr. Kirkpatrick and two

other representatives of the =were present but they did not •

discuss the NRO budget. Your secretary took the note; and the

transcript is available. 4=4

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Mr. McCone says, "I saw this budget for the first time

only recently." On 5 January 1965, in response to a written

request from K:. Clarke of the CIA Comptroller's office citing

Xr McCone's desire zo see it, a copy of the budget was sent

toMr. Clarke.

Mr. McCone states, "the budget, as submitted to me, reflec

lack of understanding concerning the proper allocation of

responsibilities, as between the CIA and the Defense Department

for individual projects." In fact, the budget as submitted to

Mr. McCone does not address the assignment of responsibilities

for projects. Attached is a copy of the format sent to Mt. MC

As to Mr. McCone's proposal for a joint presentation to tt

Congress: it seems to me that the DoD, as Executive Agent for

the NAP, has the responsibility to present and to substantiate

the budget as necessary; this is provided for in the NRO Agree=

Last year, Dr. Brown and Dr. Hitch carried the burden for me,

with my agreement. Dr. Brown felt that if I did not appear, t

depth and detail of the questioning might be limited and easie2

to control. I would like to participate this year, not to the

exclusion of Dr. Brown and Dr. Hitch. CIA participation shouli

be as needed, based on the types of questions expected. There

should be no question that the presentation is by the DoD.

Incidentally, the inquiries by Genera • which

Mr. McCone refers were made because we nee . A,L backgr

of knowledge of the many Congressman who may be questioning

Air Force witnesses ; for the first time, about SR-71, YP7A2,44,„,

J-58, and Program 417. The CIA has not responded to Calla*

inquiries; as yet they have not given us up-to-date informatic

about the clearance status of members of Congress.

Attached for your consideration is a ••osed reply to

Mt. McCone. This has been coore • • • 41, 1 •ini.

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Attachments

Letter from Mr. McCone

uro_posed

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 Letter to Mr. McCone

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THE DEPUTY SECRETARY OF REFINSE

WASNINOTOK D.C. 1.201

Honorable John A. kicCeas

Director of Central hatelligeace

Washington. D. C.

Dear John:

Your letter of February 5, 1962 refers to the Congressional

hearings for the NRO budget in FT 1964. Modifications to the procedar* followed last year are, of course. possible. As you kaow.

last year Charlie Hitch sad Harold Brows presented the budget to

Congressional committees sad Dr. hicktillas did net participate in

the presentation. Since the presentation and substantiation of this

budget is the responsibility of the executive agent, we had planned

to follow the same procedure this year. 'We planned to ask Brown

and Hitch to do the presenting and the supporting again and to keep

the DNRO in the background to reduce the number of detailed

questions that could be asked. Del

The modification of last year's procedure to include members

of the CIA is these discussions may well be useful. Presence of

members of your organisation could be helpful is responding to any

questions which may arise relative to the financial maaagement.

accounting and contracting for that portion of the NRP feeds which

are being administered by the CIA. Oa the other has& we should

be careful lest* by modifyiss oar procedure. rto encourage protweeted hearings is the area of appropriations. As you correctly

stated, separate generalised discussioas were held with yea.

Senator Russell.. and elements of the Department of Defense; it

might well be that continuities at this procedure would be better.

We should separately esandne the clearance situation for such

projects as the SR-71. Y1-17.A. J-SS engine and 417 weather

I believe that these items will be subdected to a careful enanadnation

by broader elements of the committee than heretofore. For this

reason, information regarding clearances of members of these committees is essential for DOD witnesses to properly plan their answers

.Please let us have such information as soon as is convenient.

H.LADLE ir;

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It seems to nas that your suggestion of addles CIA perennial

to the DOD presentation of the NRP to the Congress se as to emphasine the joint character of the program is a healthy *ea. I would

sanest that together with information regarding clearance of the

stements of Congress. you will let as know who will represent CIA

when Mr. latch and Dr. Brews will be called by the Appropriation

Committees. k may well be that, if this new procedure is employed*

we will also ask Dr. Mclatlan to be present; your opinion on this

whole issue will be greatly appreciated.

Nacerely,

CY

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