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May    26,    1982 
MBIORANOUM  TO -'THE  DEPUTY  UNDER  SECRETARY  FOR  POLICY 
■   »   .  • 
I  find  the*  attached  inspection  report  on  JSA  disturbing 
in  the  cxtreine.   (Attachment  previously  provided.)- 
Wc  seem  to  have  created  our  oven  CIA,  but  like  Topsy, 
uncoordinated  and  uncontrolled. 
Unquestionably  ISA  contains  much  talent  and  probably  even 
more  dedication.  There  may  :nlso  be  a  r.ecd,  but  that  is  less 
clear.   But  wc  should  have  learned  the  lesson  of  the  70's 
unaccountable. 
Action  will  be  taken  to  terminate  all  ISA  operations 
within  30  days;  or  effect  transfer  thereof  to "other 
competent  organ i ;at ions .   Tf  it  is  desired' to  continue  ISA 
in  sonic  form,  the  following  will  be  submitted  for  my 
approval  not  later  than  15  June.' 
1  .  A  concept  pi  ;in  . 
2.  A    list    of    requirements.     .    rjC>' 
3.  A   corona nd    structure,     indicating    to   whom    it    is    accountant 
and    how. 
i^toC   connols    to  "be    cs  tabl  i  :;h».-d  ,    particularly    (nor 
5.  A   fiscal    management    am!    accountability    plan. 
6.  A   program    for   working    with    appropriate    committees    of 
Congress. 
7.  A    funding    plan,     fully    coordinated    with    the    Comptroller 
r      S-PIC   concurrence    of    the    DCI   anc»    the  General    Counsel 
tor  all   of    the   above. 
Classified  by   nepSccHef 
Review  on  26  May    1938  S^fs       '/  /'■'^fy'?// 
Frank   C.    Carlucci 
cc:      General    Counsel  w/o   attach 
Secretary   of    the   Army  \<fo  attach 
Chief   <>'  '      -iff   of    the    Army  w/o   attach 
j   /  :
(Page  1) 
THE  SECRETARY  OF  DEFENSE 
WASHINGTON  D.C.  20301 
MAY  26,  1982 
MEMORANDUM  TO  THE  DEPUTY  UNDER  SECRETARY  FOR  POLICY 
I  find  the  attached  inspection  report  on  ISA  disturbing 
in  the  extreme.   (Attachment  previously  provided.) 
We  seem  to  have  created  our  own  CIA,  but  like  Topsy, 
uncoordinated  and  uncontrolled. 
Unquestionably  ISA  contains  much  talent  and  probably  even 
more  dedication.  There  may  also  be  a  need,  but  that  is  less 
clear.   But  we  should  have  learned  the  lesson  of  the  70 's 
on  controls  over   [Excised]   Accountability 
is  the  essence  and  we  have  created  an  organization  that  is 
unaccountable . 
Action  will  be  taXen  to  terminate  all  ISA  operations 
within  30  days;  or  effect  transfer  thereof  to  other 
competent  organizations.   If  it  is  desired  to  continue  ISA 
in  some  form,  the  following  will  be  submitted  for  my 
approval  not  later  than  15  June. 
1.  A  concept  plan. 
2.  A  list  of  requirements. 
3.  A  command  structure,  indicating  to  whom  it  is  accountable 
and  how. 
4.  A  list  of  controls  to  be  established,  particularly  over 
[Excised] 
5.  A  fiscal  management  and  accountability  plan. 
6.  A  program  for  working  with  appropriate  committees  of 
Congress . 
7.  A  funding  plan,  fully  coordinated  with  the  Comptroller. 
8.  The  concurrence  of  the  DCI  and  the  General  Counsel 
for  all  of  the  above. 
Classified  by  DepSecDef  (signed) 
Review  on  26  May  1988  Frank  C.  Car luce i 
cc:   General  Counsel  w/o  attach 
Secretary  of  the  Army  w/o  attach 
Chief  of  Staff  of  the  Army  w/o  attach