• I • ' • • ' •

.7 -

! i I

• %.,..•

- ; .

• . ,i

...- ... ....

. • .

CONTNOLSYSTED

itn NATIONAL RECONNAISSANCE OFFICE •

WASWINGTON. D.c. .

17 AUG 1977

THEMOSTAFF

•

•

ti 1MMORANDOM FOR DR. NM

=EJECT: Executive Order Implementing Presidential Directive ISC-17

•

On S August, President Cartier issued Presidential Directive/

DSC-17, Subject: Reorganisation of the intelligence Community (TAB A).

This Directive provided very specific guidelines for structuring the

Intelligence Comm unity and directing the Director of Central Intelligence

and the Secretary of Defense to draft an Executive Order to implement

the Presidential Directive.

ince publication of the Presidential Directive, a working group

consisting of 'Deanne Siemer, OSD/Geaeral Counsel, and Admiral )Murphy

as DOD representatives and Mr. jobs Mash= and General John Morrison

representing the IC Staff, have been developing the Executive Order.

j

ft have been tasked by OSD/General Counsel to provide pimento on

10144

the OSD version'(tAi S) by close of business Wednesday, 17 August.

4).

Apparently, there is general consensus between the IC Staff and DOD on

Ili;

51. all sections but Section 3 (d) which deals with the duti and reopen- duties

AO sibilities of the Director of Central Intelligence and Section 3 (e),

National Intelligence Tasking Center (NITC). The difference in

perception of the role of the DCI is the fiscal management of the

National Foreign Intelligence Program is vividly underscored in reading

the IC Staff proposed draft of the Executive Order (see tabbed items at

TAD C). The perceptions of the role of the NiTC are also quite different.

The DOD draft is general, whereas the IC Staff is very specific with

respect to tasking authority. The IC Staff-IITC would impinge upon

functions currently performed by other activities, e.g., NSA.

The Staff has compared the IC Staff and DOD versions. The purpose

of reviewing the IC Staff paper was to gain an appreciation for their

position. Our comments on the right address the DOD paper and are

addressed to Mr. Sob Andrews, OSD/General Counsel.

In that our comment., identify basic management concerns, you may

wish to discuss them with Mt. McGiffert during your meeting with his

today. Is the event you feel this is appropriate, I have included a

summary of items of interest from the Executive Order for your use

MS D).

1M. ,

CONTROL NO 1"11:4111/RIP EAt sooftarl SIPV o.

snnnuvi WOO* 1116/11FPIPTIOMICAM OF COFIE.

Nov 11112 0101411110, aim Wm

COPY

•
• *Mb • •

•

irlECREI--

C ROL SI Yin&

•

•

It is our understanding that the working "Soap is ottomans to

reach an accommodation by close of business Thursday, 111 August.

•

Brigadier General

Director

Si.

AP

4 Attachment.

TAB A

TAB 3

TAB C

TAE D

Oke 0 Mer ,30t#.* Ileje lepers de moil

 ele?/•;;16,

Cl repiaceftgesti- 14€ A/Ro c key kr.

•

!'PI vta

S rg

•

1141141111 1MILT:11All OM 11 .1110100.110•11•0 aftejilmea~beete Me, Ur • • ft•1110•1nn MOW

CONTROL NO

COPY OP come

mar.c OF PA..f • ,

•
:• •

.41P-SECIET- CONT1101. SYS111

ITEMS or INTEREST

OM DRAFT EXECUTIVE ORDER ON

REORGANIZATION OP THE immaacsmcs COMMUNITY

Intelligence Community-- The NW is formally identified as part

of the intelligence Community. WO are described as `Offices

within the Department of Defense for the collection of

spedialized national foreign intelligence through reconnaissance

program." •

Intelligence Organizational Structure - The structure specified

by the Presidential Directive establishes the following structure to direct and guide national intelligence activities: .

National Security CoUncil (NSC)

Policy Review Committee (PRC) - The PRC is a subcommittee

of the NSC and is chaired by the DCI. The PRC sets requirements,

establishes priorities, conducts semiannual reviews of product

and performance.

•

Special CoordinatingCoisittee (SCC) - Chaired by the

Assistant to the President for N tional Security Affairs. This

group develops policy recommendations on special activities

(covert collection) . and approves sensitive collection activities.

Responsibilities of the Operations Advisory Group subsumed under

the SCC.

Director of Central Intelligence (DCX) - Most significant new responsibility is to have full and exclusive authority

for approval of the NFIS budget, however, departments or agencies

that submit national program budgets may appeal directly to the

President. The DCI also has full and exclusive authority for

reprogramming funds. The DOD version of the Executive Order

charges the DCI with establishing a vigorous program to downgrade

and declassify national foreign intelligence information.

Fiscal Management - The NRO is concerned about the

degree of involOement by the DCl/IC Staff in the day-to-day

management of the program by restricting the release of the

annual operating program. The GOLDEN RULE °He who controls the

gold rules.•

IC Staff approa lh in this draft is micro-management

•

and usurps both the Secretary of Defense and the DNRO's

management prerogative.

Security - Ther is a potential for confusion in

the section concerning the•DWs responsibilities with respect

to security. We ha prepar a modification which underscores haw

the DCI's direct security responsibility for the NRP.

comm.. NO

cam,

os cos, , '

actr 1 etc

.

%
1 n•

-Tr-mam •

.•

MANO t vsii

ROL srsre

n• •

e. National Intelligence Tasking Center (NITC) - The

Presidential Directive and both versions of the Executive

Order direct that representatives of programs in the NFIP be

assigned to the NITC. Presently, personnel from the Operations

Staff of the NRO.serves as advisors to the various NFIB subcommittees to provide technical expertise on operational capabilities. Representing the NRO to the NITC to assist in

obtaining maximum "customer satisfaction* by insuring the most

fficient use of our systems, furnishing impact statements,

and developing and recommending resource trade offs would be an

excellent function for our Operations Staff. This could result in

physical relocation of our Operations personnel.

f. National Foreign Intelligence Board (MS) - The seep

is established as an'advisory board to the DCI to include

providing advice on the NFIP budget. It is interesting to note

that the NRO does not appear as either a member or an obgerver

of the NFIB. This may be for reasons of security because the

DCI has indicated his desire for NRO participation in the NFU

forum.

ge The Secretary of Defense - The NRO continues to be

under the line management of the DOD. The Secretary of Defense

will direct, operate, and provide fiscal management for NSA, and

for the national, defense and military intelligence entities as

required. It is believed that the phrase "national....intelligence and reconnaissance entities..." describes the NRO. It is

interesting to note that the Department manager's authority to

hire and fire personnel as spebified in the Presidential

Directive is not included. The responsibilities of the NRO are

included at the bottom of page 30 of the DOD version.

Oversight - The Executive Order continues the existence of a

three-man Intelligence Oversight Board.

xecutive Order 11905 - This order supercedes the Z.O. 11905

Issued under the lord Administration.

OTE: The most significant excerpts from both the DOD and IC

Staff versions of the Executive Orders are attached.

el • jag•••118

&sr.& Nute III

••••••n ••••• • earn.... •••

CONTROL NO

coon, Of COPIE:

artg 7 na 7. . •

. • . b
•

•

••

ao;pifi: . 8% ••

."'"2.a...1416.01tn P'

ts,

NOR

•

Mast 0417 ObW at Stan -

Mau and .Opsraiiess

ow

•••

.• •••• •

It •••

•.

JSEeREF

••

: • •

DEPARTMENT OF THE AIR FORCE

IIICADIMMITIall UNITED ?WATS!' AIR MKS

•••••••••• se.

•

*•

WWI TO

MIN Oh Alki 15 AUG1977

MIMS% CONSTANT LINE Demonstration (U) (Our Ltr, 7 Jun 77)

•

y• Arita Wm A7,R0 JENUMSL 8i17/AL

•

(s) Demonstration of the AONNTANT LINK simulation -

originally scheduled for 18-22 July, has been rescheduled

for 13-14 September. Interested individuals may observe

the system in operation and be briefed on the results of

the simulation conducted 17-20 August.

(0) You and/or interested members of your staff are

invited to attend. • SpoCial instructions included in

referenced letter apply. Names af attendees should be

sent to Rabe Widdifield, AP/XONS, 79282, who viii

schedule attendance dates.

•

... Myatt by

ESEE'T ROMen" Mtg.

DIECLOSTV:17:41 FerfflOS

OF F.:fferais want% tint

SECF?Ei II IIICILTOT Melt

. . •••••

. • ,
CONTROLNO

COPY OP COP'

I.. •••• A • 0,07.

41111* OLSYS

ISVNATIONALRECONNAISSANCEOFFICE

• WASHINGTON. D.C.

WINCE Of THE DIRICTOR

matezmaxat POI THE saw ADVISER TO THE OSD GENERAL COUNSEL

SUBJECT: Executive Order Implementing Presidential Directive NSC-17

The NRO has reviewed the draft Executive Order and is primarily concerned with Section D, paragraph (iii). Our concern centers on the degree

to which the DCI, or the IC Staff will monitor the implementation of the

operating year's program. It would seem most proper for the DCI and his

staff to be completely involved in the development and formulation of the

NIIP budget through submission of the President's budget and its subsequent

justification to the Congress. However, once the Appropriation Bill has

been signed and funds are released for implementing the operating year's

program, the DNIO should be provided the resources commensurate with his

full authority for Ranging the implementation of the "Approved Program."

This would require that the DURO have direct authority for budget execution,

to include the re/ease of annual funds to his program managers, in order

to maintain the degree of flexibility required in the day-to-day menagesent of the highly complex development, acquisition and operational tasks

of the 102.

The above approach appears to be consistent with both paragraph 6

of the Presidential Direetive/NSC 17 which gives to department heads

responsibility to implement day-to-day direction, and with paragraph 3(f)(v)

which stipulates the Secretary of Defense shall "direct, operate and provide fiscal management for the NSA, and national, defense and military

intelligence and reconnaissance entities as required." An assumption is

that the word "national" in the previous sentence includes the WAP.

If, as suggested in some correspondence, the DCI, or in reality the

IC Staff, is directly involved in a piece -meal release of annual

operating funds, then there would be the ever-present problem of interfering with. the DORO's management prerogatives. The current procedure

whereby there is a single, annual release of all NSF funds should be

continued with the allocation of these funds. determined by the DNRO

consistent with his plans for implementing the approved program.

I appreciate the opportunity to comment. If you would like to

discuss these concerns, please don't hesitate to call.

Hans Mark

•

111111110

MON

eiOltaill. 1 di IIM.MilliN=IOW

surAmve woo tell IIIIIISMORI Call -1811,--SECRETCON yi OW, NI OICUNOW/ Or no of r
•

• •

OFFICE of THE DIRECTOR

iti-NATIONALRECONNAISSANCEOFFICE

WASHINGTON. D.C.

•

MEMORANDUM FOR THE spun ADVISER TO TEE OSD GENERAL COUNSEL

, •

: SUBJECT: Executive Order Implementing Presidential Directive NBC-l7

The END has reviewed the draft Executive Order and offers these

cum meets. • •

a. Section D, paraereph (xiii)A. Recon mend•tkis paregraph be

altered by amigo, to read: 'Protection by lewfu•lieens against disclosure by present or former employees of Federal/departments and agencies,

or persons, or employees of persons or organisations, presently or formerly

nder contract with them.'

RatioZle: This paragraph provides a responsibility for the

DCI only within CIA. Paragraph WO TO4O1TOS the DCI to establish comma security standards for animal fpieign intelligence activities.

But somewhere in between these two ltes specified and agreed to responsibilities for direct responsibility for security policy for the ARP.

The recommended change is intended to incorporate provisions for DCI

responsibility for programs like the NIP.

zb

b. Section D paragraph (xiv). Recommend the phrase at the

nd of this paragraph Ala accordance with relevant Executive Orders" be

deleted.

Rationale: The SCI's establishment of common security standards

for intelligence activities is not specified by Executive Orders but by

DC/Ds. It is not arr:Irate as written.

c. Ssctigi D. paraarapb (iii)C. This paragraph states that

"the Director of Central Intelligence may monitor National Foreign Intel.-

ligence Programingeneatation and carry out program audits and evaluation."

Comment: Although this phraseology is taken from the Presidential

directive, vs are concerned with the degree to which the DCI, or the IC Staff,•:

will monitor the implementation of the operating year's program. It would

seen most proper for the DCI and his staff to be completely involved in

the development and formulation of the NRIP budget. through submission of the

President's budget and its subsequent justification to the Comatose.

•

. •

. 0P—SECRET— c..T sys Garristanamanetarresr.

•

•

CONTROL NO

COPT OP CONE!

PAGE OP PAGE

•

F,
-11P-SECIE1- •

•

CONTROL SYSTEM

However, once the Appropriation 2111 has been signed and funds are

released for implementing the operating year's program', the IN20 should

be provided the resources coemensurate with his full authority for managing the implementation of the "Approlied Program." This would require

that the DNRO have direct authority for budget execution, to include the

release of =noel funds to his program =baser', in order to maintain the

degree of flexibility. required in the day-to-day management of the highly

complex development, acquisition and operatinall tasks of the NIP.

The above approach appears to be tent with both paragraph 6

of the Presidential Directive/NSC 17 gives to department heads

responsibility to implement day-to-day direction, and with paragraph 3(0(v).

which stipulates the Secretary of Defame shall "directi operate and provide fiscal management for the NSA„/and national, defense and military

intelligence and reconnaissance eptities as required." An assumption is

that the word "national" in the,,Orevious sentence includes the NRP.

If, as suggested in some/correspondence, the DCI, or in reality the

IC Staff, is directly involved in a piece-meal release of annual

operating funds, then there would be the ever-present problem of interfering with the DNRO's management prerogatives. The current procedure

whereby there is a single, annual release of all NIP funds should be

continued with the allocation of these funds determined by the DIRO

consistent with•his plans for implementing the approved program.

I appreciate the opportunity to comment. If you would like to

discuss these concerns, please don't hesitate to call.

Nans Mark

•

•

AN VoA

coPorow: ..voty

111P-IfeRET--

dew

ow oft ast.morta4.10. 41.

11•114...11 ONO • • wow • New 4" NA II

41.1•. .. • .0. *0 at •

CONTROL NO

COPY OP COPMS

PAGE OP IIPAnf C.

•