Document date: 00/00/0000

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File #:

662-40-116464

Serial Scope:

22 thr 33

Heleased under the John F. Kennedy Assassination Records Colectior

act of 1992 /44 SC 2107 Motel. Case#L 68262 Date: 09-22-2022

Doeld: 32989

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## Page 2

OPTIONAL FORM NO. 10

MAY 1962 EDITION

GSA IPME (41 CEN) 101-11.8

UNITED STATES GOVERNMENT

Memorandum

TO

•Mr. J. B.

Adams

- Mr. Mintz - Encs. (2).

-

Mr. Wannall - Encs.

(2)

- Mr. Gregar - Encs. (2).

DATE: 8/15/75

I - Mr. Hotis - Encs. (2):

I: - Mr. Daly - Encs.

(2)

Assoc. Dir.

Dep. AD A

Dop. ADVIs

Asst. D

Admin

Comp. Sys1..

Ext. Affairs =

Filos & Com. -

Gen. Inv. -

Ident.

FROM

:Legal Counsel

"bot

Laboratory -

Legal Coup:

(Plan. & Eyál. —

Spec. Inv. -

Training -

Telophone Rm. -

Director Sec'y -

Attached is a letter from Michael E. Shaheen, JI.,

Special Counsel for Intelligence Coordination, to John A.

Mintz, Assistant Director, Legal Division, dated August 13,

1975, enclosing a request from the. House Select Committee for

legally

a briefing for House Select Committee Staff Members by Assistant •

Director W. Raymond Wannall of the Intelligence Division.

There

is no topic specified for the briefing and it is assumed it will

be a general briefing

¡ concerning Intelligence Division operations.

A briefing has been arranged for. House Select Committee Staff

Member's Richard Vermeire and Timothy Oliphant for 10 a.m.,

8/18/75, by Mr. Wannall.

Steven Blackhurst, Deputy Special Counsel for Intel-

ligence Coordination, was

advised that a briefing had been

scheduled for Monday

morning at 10 a.m. It was

pointed out

to. Mr. Blackhurst that neither the Department memorandum nor

the Committee letter specified the topic and it was our in-

tention to discuss

just generally the functions of the

Intelligence Division and its operations. He was also advised

that it was not our intention to get into any details concerning

surreptitious entries and/or mail openings or highly sensitive

material. Blackhurst agreed that these topics should not be

discussed at this particular briefing.. He noted that the De-

partment. had by letter requested the opportunity to sit. down

with representatives of captioned Committee and discuss methods

of handling their requests for information from the FBI and other

Justice Department..component

esponse to this requestry 1i4

To date they. have not received

2-11:0118

RECOMMENDATION:

REC-56

Action.

Information.

S AUG 25 1975

Enclosures (2) (ENCLOSURE

1,11

pin

• PVD: ladHD

(7.)

DUNSEL

62-11604404

+ 406329420 93 4S sain Band Tears on he Pert Savings Man "

---

## Page 3

..

OFFICE OF THE DEPUTY ATTORNEY GENERAL

WASHINGTON, D.C. 20530

AUG 1 3 1975

TO: John Mintz, Assistant Director

Legal Counsel Division

Federal Bureau of Investigation

FROM:

Mehtal E. seen, Intelligence

Coordination

SUBJECT: 'House Select Cormittee Request for Briefing

Please arrange for compliance with this request and advise me of

the date scheduled for same.

'ENCLOSURE

62-116464-33

IZ AUG 25 1975

NW 68262 Docld:32989707 Page 3

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## Page 4

AUG 1 3 1975

TO: John Mintz, Assistant Director

Legal Counsel Division

Federal Bureau of Investigation

FROM: Michael E. Shaheen, Jr.

Special Counsel for Intelligence

Coordination

SUBJECI: House Select Conmittee Request for Briefing

Attached is a request from the House Select Committee dated

August 11, 1975, and received August 12, for a briefing by Ray

Wannall for Committee staff members, Messrs. Oliphant and Vermeire.

Please arrange for compliance with this request and advise me of

the date schéduled for same.

/: NW 68262 Docld:32989707 Page 4

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## Page 5

OTIS G, PIKE, N. Y., CHAIRMAN

ROBERT MCCLORY,

DAVID C. TREEN, LA.

TOMALO V. DELLUMS, CALIP.

JAMES P. JOHNSON, COLE.

MORGRIF. MURPHY, ILL

ROBERT V. KASTEN, JR., WIS.

LES ASPIN, WIS.

DALE MILFORD, TEX.

PHILIP H. HAYES, IND.

WILLIAM LEHMAN, FLA

SELEPHONE: (202) 225-5755

Select Committee on Intelligence

U.5 House of Representatínes

washington, A.E.

20515

August 11, 1975

Mr.. Michael E. Shaheen, Jr.

Special Counsel for Intelligence Coordination

U.S.

Department of Justice

-washington, D. C.

20530

Dear Mr. Shaheen :

This is to request a briefing, at your earliest

convenience, between Messrs.

Oliphant and Vermeire of our

staff and W. Raymond Wannall, Assistant Director in charge

of the Intelligence Division of the Federal Bureau of

Investigation.

Your coperation in this malici is very much appreciayed.

Sincerely,

A. Lead Til

Searle Fiel

Staff Director

1213112

RECETVED

AUG 12 1975

116

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# 862-116-464-33

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## Page 6

OFFICE OF THE DEPUTY ATTORNEY GENERAL.

WASHINGTON, D.C. 20530

AUG 1 9 1975

TO:

John A. Mintz, Assistant Director

Legal Counsel Division

Federal Bureau of Investigation

FROM:

Michael E.

Decial Couse, Intelligence

Coordination

Attached is a letter dated August 19, 1975, "from the House

Select Cormittee requesting various materials from the Department.

Please arrange for compliance with the requests numbered 1-4 which

relate to the Bureau.

*I have been advised orally by Searle Field,

Staff Director for the House Select Committee, that the request

contained in number one (1) can be complied with initially by

providing access for Messirs. Vermeire and Oliphant of the House

Select Comittee staff to the materials provided to the Senate

Select Cormittee.

CC:

paulie

Treat as arifice 6211640432

AUG 25 1975

33200338059

62-116464

5-P

R ANG 2091935

Docld:32989707 Page 6

---

## Page 7

OTIS G. PIKE, N. %., CHAIRMAN

ROPELT N. GIAIMO, CONN.

ROBERT MOSLORY, ILL

SAMES V. STANTON, OHIO

SAVID C. T5I/IE38, LA

ONALD V. DELLUTS, CALII

JAMES P. JOHNSON, COLO.

ORGAN F. MURPHY: IL

ROBERT W. KASTEN, JR., NIS.

ALE MISFÖRO, TEX

PHILIP H. HAYES, IND.

SPILLIAM LEHMAN, FLIN

SEAL TE, COUR HECTOR

TELEPHONE: (202) 225-9751

Select Committze on Intelligence

H.S. House of Representatines

Clashington, 2.E.

20515

21I

RECENED

AUG 18.015

August 19, 1975

Hon. Edward H. Levi

Attorney General of the U.s.

Department of Justice

Washington, D.C. 20530

Dear Mr. Levi:

The House Select Committee on Intelligence. re-request the follow.

ing information:

1.

Request of July 22, 1975, for all documents ana

materials provided to the Senate Select Committee

to Study Governmental Operations with respect to

Intelligence Activities.

2.

Request. of tuly 22, 1975, for any General

Counsel's opinions of the authoríties, mandatés

or charters of the F.B.I. D.E.A. and any other

Intelligence ironoy within the Jubice repastront.

3. Request on July 29, 1975, for: the most current

and complete organizational chart of the F.B.I.

including names, titles and job descriptions; the

most current and complete telephone/office directory

of SOG personnel; information regarding Central

File of F.B.I. informants, including but not limited

to, (a) procedures for classification, i.e.,

by type of informant, subject matter, etc., (b)

how payments are approved and made to informants,

(c) total dollar listing of payments, (a) number of

payments, (e) number of informants with breakout; of

multiple payments to a single informant, (f) infor-

mation pertaining to whether past payment internal

to informants, (g) all data pertaining to the

the informant program, (h)

all data (including but not limited to manuals and

memoranda) pertaining to procedures for the récruit-

ment and maintenance of informants; all data pertain-

ing to confidential funds and the payment procedures

relating thereto; all data pertaiming to reward

monies and the payment procedures relating thereto;

NW 68262 Docld:32989707 Page 7

+ 62-114-4404322

---

## Page 8

•Hon Edward H. Levi

Page 2

August 19, 1975

information regarding the DEA Evidence Purchase

Fund, including but not limited to: (a) procedures

for approving and making purchases, (b) total dollar

listing of purchases, (c) number of purchases with

breakout of multiple purchases from a single source

(a) information pertaining to whether past purchase

internal reviews are máde concerning purchases of

evidence (e) all data pertaining to the cost-effectiveness

of the evidence purchase program, (f) all data in-

cluding but not limited to manuals and memoranda,

pertaining to procedures for purchases and maintenance

of evidence.

4. Request of July 30, 1975 for that Messrs. Vermeire

and Oliphant be given access to all F.B.I.

information already provided to the GAO pursuant to

the investigation for the House Judiciary Committee.

5.

Request of August 13, 1975, for proposed F.B.I.

guidelines drafted by the Department of Justice

Guidelines Committee headed by Deputy Assistant

Attorney General Mary G. Lawton.

Thank you for your cooperation in this matter.

Sincerely,

Staff Director

i

_ NW 68262 Docld:32989707 Page 8

---

## Page 9

OFFICE OF THE DEPUTY ATTORNEY GENERAL

WASHINGTON, D.C. 20530

AUG 1 9 1975

8/19

TO:

John A. Mintz, Assistant Director

Legal Counsel Division

Federal Bureau of Investigation

FROM:

Michael E. Shaheen, Jr.

Special Counsel for Intelligence

Coordination

-75

SUBJECT: House Select Committee Request

Attached is a letter dated August 19, 1975, from the

House Select Cormittee requesting information concerning

in response to this request.

cc: Paul Daly

EX 104 REC-56

Treat as dregiss

_U.21446/31

02 AUG 25 1975

TENGEOSURE

162-116464

5-P

& 4 106 29, 975, a 9

---

## Page 10

Cassi

OTTS G. PIXE, N. J. CHAIRMAN

•STOBERT N GIA!C, CONN.

OSERT MECLORY, ILI

JAMES E, STUTTOIT, OHIO

VID C. TREEN, L

• ROMALO V. DE, LUME, C'ZIP.

JAMES P. JOHNSON, COLO.

-MORGAN F. MURPHY, IIL..

ROBERT VY. KASTEN, JR., WIS.

ES ASPIN, WIS.

LALE MILFORD, TEX

PHILIP H. HAYES, IND.

WW.LEHMAN.FLA

A SON ONE, CON DIRECTOR

TELEPHONE: (202) 225-9751.

Select Committee on Intelligence

M.E. House of Representatites

Cashington, I.E. 20515

August 19, 1975

Hon. Edward H. Levi

Attorney General of the U.s.*

Department of Justice

Washington, D.C. 20530

Dear Mr. Levi:

The Housé Select Committee on Intelligence

requests the following information:

1.

All names, addresses (if known)

and dates of pavments to all F.R.I;

== Justise Departmont informers

from January 1, 1970 to June 30,

1975.

2. All federal internal revenue or

state and local tax records or forms

filed by the F.B.I. or Justice De-

partment with respect to informer

payments from January. 1, 1970 to June

30, 1975.

Sincerely,

A. Searle Field

Staff Director

• AUG 19 1375

161181114

NW 68262 Docld:32989707

Page 10

62-116464-

ENCLOSURA

3/

---

## Page 11

OFFICE OF THE DEPUTY ATTORNEY GENERAL

WASHINGTON, D.C. 20530

AUG 1 9 1975

TO:

John A. Mintz, Assistant Director

Legal Counsel Division

Federal Bureau of Investigation

FROM:

Michael E. Shaheen, Jr.

Special Counsel for Intelligence

Coordination

SUBJECT: House Select Committee Request:

Attached. is a letter from the House Select Cormittee

dated August 19, 1975, requesting materials relating to

wiretaps and electronic surveillance. Please arrange for

compliance with the requests contained in Items 1 and 2 of

the referenced letter. Compliance with the requests i

Items 3 and 4 should be deferred pending further discussions

as to the proper method of response in these areas.

cc: Paul Daly

REC-56

EX 104

42-116444-30

If Treat as argueal

1TS AUG 25 1975

602-116464

LENCZOSURE

5°

LECTINSEL

AUG 2 8 1975

Docld:32989707 Page 11

---

## Page 12

COTIS G, PIKE, M. X., CHARMW.

AROBERT HiC

MASSO SEARCH, OHIO

¡ODERT MCCLORY, ILL

DAVID C. TREEN, LA

¡MONALO V. DELLUMS, CALIF.

AMES ?, JOHNSON, COLL

"-MORGAN F. MURPHY, ILL.

OSERT VI. KASTEN, JR,, WIS

ILES ASPIN, WIS.

→ DULE MILFORD, TEX.

PHILIPH. HAYES, IND.

MILIN LIMMA FIA

A, SEARLE FIELD, STAFF DIREGTOI

LARON B. DONNER, COUNSE

TELEPHONE: (202) 225-9751

•Select Committee on Intelligence

C.5. Inuse oi Representatives

Washington, D.C. 20515

August 19, 1975

'Hon. Edward H. Levi

Attorney General of the u.s.

Department of Justice

Washington, D.C. 20530

Dear Mr. Levi:

The House Select Committee on Intelligence requests

the following information:

'1. A list of all wiretaps of electronic

surveillance by state or local authorities

that have been investigated by the F.B.I.

IIom januarv 1, ¡giú to june 3U: 15ì9.

2. Any documents or other material realted

to any investigation by the Inspection

Division with respect to failure of the

F.B.I. to investigate state or local

wiretap or electronic surveillance.

3. A list of all national security wire-

taps or electronic surveillance from

January 1, 1970 to June 30, 1975

accompanied by all documents provided the

Attorney General to support the installation

or such wiretaps or electronic surveillance.

4.

A list of all internal security wire-

taps or electronic surveillance from

January 1, 1970 to June 30, 1975

accompanied by all documents provided the.

Attorney General to support the installation

or such wiretaps of electronic surveillance.

Sincerely

A Seal The

A. Searle Fiela

Staff Director

Now 58262 told 3248902 per CENSURE

141/151

RECEIVED

AUG 19 1J?5

---

## Page 13

THE DIRECTOR OF CENTRAL INTELLIGENCE

IBS.

WASHINGTON, D. C. 20505

Intelligence Community Staff

MAG

DCI/IC 75-2615

14 August 1975-

MEMORANDUM FOR: Members of the USIB Ad Hoc Coordinating

GrOup

SUBJECT

"Security Glearances

Attached is a-listing of staff personnel of the House Select

Committee on Intelligence who have been briefed for compart-

mented information.

:.":

. :".

Nick E Thoms.

Jack E. Thomas

Major General, USAE (Ret.)

Chief, Coordination Staff, ICS

Attachment

EX 104

Treat as siegin 640 - 2

9 AUG 21 1975

ENGLOSURE

Induy manes

list

on atiachio,

NW 6 AY 625:17,59707 Page 13

62-1164/6451

---

## Page 14

• NAME

andrade, Carolyn

Boos,. John I.

f. Carroll, Roger

Donnor, Aaron

Field, A. Searle

glint, Jonathan

/Hess, Jacqueline

/ Kirschstein, Fred

Mattox, Charles

*olphant, James B.

/Roeder, Edward

Rushford, Greg.

chafer, Michele

14 Aug 75

Staff Members of the House Select Committee on Intelligence who have been briefed on Compartmented

Information are listed below:

DATE BRIEFED

(SI, TK 2. B)

8-11-75

already briefed

8-11-75

8-11-75

8-1-75

7-29-75

7-29-75

7-29-75

8-11-75

7-29-75.

7-29-75

7-29-75

8-11-75

DATE OF BIRTH

4-20-46.

+182718080 405

1210-6-14

$ 8-11-51

• 56-20-51

: 82-28-47

1 12-11-38.--

: 69-1-48

169-12-44

SOCIAL SECURITY NO.

372-46-0008

JFK Act 5 (9) (2) (D)

230-48-5696

442-46-1435

147-32-2375

JFK Act 5 (g) (2) (D)

NW 68262 'Docld:32989707 Page 14

---

## Page 15

NAME

/Sheketoff, Emily

Starek, Roscoe

Vermiere, Richard

-Whieldon, Jeffrey

Yamamoto, Cheryl

VZeune, Sandra

DATE BRIEFED

(S1, TK & B)

7-29-75

'7-29-75

7÷29-75

7-29-75

8-11÷75

8-11-75

302/066114

NW 68262 Docld:32989707 Page 15

• co-y?0.

iat

".....

..

14 Aug 75

DATE OF BIRTH

SOCIAL SECURITY NO

4-6-50

: B 11-17-47

13.8-15-44

133-18-43

JFK Act 5

(g) (2) (D)

147-34-4083

026-32-4085

---

## Page 16

OPTIONAL FORM NO, 10

MAT 1967 1011184

OSA IRMA (A1 CIR) 101-11.8

•UNITED STATES GOVEKNMENT

Memorandum

Assoc. Dir.

Inv.

TO

Mx. J. B. Adams

DATE: 8/13/75

Ass1. Dirty

Admin.

Comp. Syse..

Ex1. Allairs --

Files & Com. -

Gon. Inv. _

Iden!..

FRoM

Legal Counsely

SUBJECT STATUS OF RESPONSES TO CONGRESSIONAL

COMMITTEE REQUESTS

Naustudy

75

The purpose of the memorandum is to set forth in

sunmary form the requests we have received from various Com-

mittees in Congress and the status of our replies.

_aborolady

Legal Cat. i

Plan. 8 Eval. -

Spec. Inv. —

Training -

Telophone Rm. -

Director Soc'y.,

Senate Select Committee on

Intelligence Activities (Church's Committee)

Date of Request

Nature of Request

I Letter, 5/27/75

Request for information

concerning alleged abuses.

Request pertaining to

COINTELPRO.

Status

Response delivered)

Letter, 6/30/75,

received by

Bureau, 7/8/75

Letter, 7/3/75

Response delivexed

Letter, 7/8/75

Letter, 7/14/75

Request documents pertain-

Response deliveredg

ing to COINTELPRO be furnish-

ed to the Committee in Com-

mittee space.

Communication to all em-

ployees concerning Senate

Response delivered.

Select Committee inquiries.

Request concerning two highly Response delivered,

sensitive Bureau programs in

the foreign intelligence

field.

Letter, 7/14/75

64-116464

Responsar delivered

Request concerning

COINTELPRO documents.

1 - Mx. Wannall

(Attn :

Mr.

Cregar)

1 - Mrs. Metcalf

1.

• - Mx. Mintz

- Mr. Hotis

1 - Mr. Daly

IOT RECORDEI

46 AUG 21 1975 2A

INITIALS

LAD: lad!"

CONTINUED -

OVeR

Ade 2 8 1975

INITIALS ON ORIGINAL

NW 68262 Docid:32989707 Page 46. Saungs Bouds Regularly on the Payrol Savings Plan

CEIVE

---

## Page 17

Legal Counsel to Mr. Adams

RE :

STATUS OF RESPONSES TO CONGRESSIONAL

COMMITTEE REQUESTS

Date of Request

Letter, 7/14/75

Nature of Request

Material pertaining to

Martin Luther King.

Letter,: 7/14/75

laterial pertaining to

Status

Awaiting Depart-

mental decision.

Response delivered.

Cu Klux Klan

Letter, 7/24/75

List of Agents in New York

Response delivered.

City area who had surname

"Kehoe."

Letter, 7/28/75

Superseding request for FBI

Response delivered.

naterials for delivery and/

or access of Committee.

Letter, 8/5/75

Request for FBI materials

Response being

with respect to surreptitious prepared.

entries.

Letter, 8/7/75

Request for briefing re-

garding mail openings.

Letter, 8/8/75

Request for materials

• relating to mail

Response being

prepared.

Response being

prepared.

surveillance.

Committee on the Judiciary

Subcommittee on Constitutional Right's (Tunney's Committee)

Date of Request

Nature Of Request

Letter, 7/18/75

Material concerning Flag-

ging procedures in Identi-

Status

Response delivered

to Department:

fication and NCIC Systems.

Letter, 7/25/75

Request concerns limited

message-switching im-

Response being

prepared.

plementation plan.

CONTINUED - OVER

• -2

INW 68262 Docld:32989707 Page 17.

---

## Page 18

Legal Counsel to Mr. Adams

RE:

STATUS OF RESPONSES IO CONCRESSIONAI

COMMITTEE REQUESTS

Subconmitteé on Postal Facilities, Mail, and

abor Managemen

louse Post Office and Civil Service Committee (wilson's Committee

Date of Request

Letter, 8/6/75

Nature of Request

Request pertaining to

mail openings.

Status

Response prepared

and approved by

Department. Not yet

delivered.

House Select Committee (Pike's Committee)

Date of Request

Nature Of Reguest

Status

Letter, 7/22/75

All documents and materials

Awaiting Departmental

provided to the Senate Select decision regarding

Committee to Study Govern-

material furnished

mental Operations and request Senate Select

for all materials related to Committee.

budgetary authority.

Letter, 7/28/75

Inquiry to encompass all

aspects of the FBI budget

Partial response

prepared.

as it relates to gathering,

use and dissemination of

intelligence.

Letter, 7/30/75

Various materials related

to the Spring Planning Call

Response prepared

and delivered.

and for briefings with

different Bureau officials.

Hearings

Date of Request

Nature of Request

Status

Request to arrange testimony Date of testimony

before Subcommittee on Postal has not been

Facilities, Mail, and Labor

established.

Management

of the Post Office

and Civil Service Committee

• concerning mail covers and mail

openings.

RECOMMENDATION:

For information.

•=3

XBB

NW 68262 Docld:32989707 Page 18

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## Page 19

tr.

OPTIONAL FORM NO, 10

MAY 1982 EDITION

GSA FPMR 141 CFRO 101-11.6

UNITED STATES GOVERNMENT

Memorandum

TO

: Mr. J.

‹B

Adams

DATE: 7-23-75

& FROM : Legal Counse

SUBJECT:

HOUSTUDY 75

on 1-22-75, Chairman Otis G. Pike, New York,

convened the House Select Committee on Intelligence under

House Resolution 591.

Chairman Pike announced at the outset, Com-

mittee hearings will be conducted in accordance with

the Standing Rules of the House of Representatives and

that he is

'slow to invoke closed or executive meetings."

It is his intention that initial Committee hearings will

be devoted to testimony by officials of the General

Accounting Office and Bureau of the Budget. He intends

to examine and pursue:

(1) The volume of executive branch

expenditures in foreign and domestic

intelligence operations.

(2) A determination of the identity

of those persons who control' these

expenditures and thereafter call

them as

witnesses and

,EX-106.

62-11.6464-

(3)

Determine.at what level agency

decisions are made regarding intel-

ligence expenditures.

= 1375

Chairman Frank Church (Idaho) of the Senate Select

Committee on 7-21-75. During this meeting Chairman

Pike agreed the. House Committee will not consider

investigation in areas already covered in depth by

1-Mx. Walsh

1-Mx. Wannall

1-Mr. Hotis

1-Mr.

Bowers

1-Mr. Cregar

1-Mx. Daly

1-Mx. Moore

1-Mr. Miller

1-Mr. Mintz

1-Mr. Taylor

RIT : 18PQ0

(12)

CONTINUED - OVER

RTT

Far, liz

SIA - 51975

NW 68262 Docid:32989707 Page 15, Savings Bonds Regularly on the Payroll Savings Plan

o. 1.

Assoc. Die.

Dop. AQ/

DopLA

Asse. Dis

Admin. L

Comp. pyst. =

Ext. Affairs —

Filos & Com. -

Gon. Inv..

Idens. _

Inspoction -

Intell. -

Loborator MY

Lagal Coun

Plan. & Evgl

Spec. Inv.

Training-

Tolophono Rm. =

Director Soc'y -

FONG COUNSEL

PIT

---

## Page 20

Memorandum from Legal Counsel to Mr. Adams •

Re: HOUSTUDY 75

House Committee will first explore the fiscal aspects

of executive branch intelligence expenditures, the

accountability, command and control of these expendi-

tures.

Chairman Pike intends to convene hearings

lauring the first two weeks of the August 1975 recess.

Representative Robert MCClory (Illinois),

Committee ranking minority member, noted he also in-

tends to investigate individual agency mandates, the

extent of coordination between agencies and whether

maximum efficiency and value are obtained for tax

dollars. expended by these agencies.

At the conclusion of the meeting Chairman

• Pike announced the resignation of Representative Dor

Edwards (California) and his replacement by Repre-

sentative William Lehman (Florida) as a member of

the Committee.

RECOMMENDATION :

For information

NAN

- 2 -

68262 Docld: 32989707 Page 20-

13.00

gon.

---

## Page 21

OPTIONAL FORM NO, 10

GSA FPHR (41 CFR) 101-11.8

UNITED STATES GO

ERNMENT

Memorandum

TO

: Mr.

J.,

B. Adams

1

1

1

- Mr.

Mintz.

- MI.

Adams

- Mr. Wannall

1 - Mr. Cregar

DATE: 7/31/75

1 - Mr. Hotis

1 - Mr. Daly

:Legal Counsel

SUBJECT; HOUSTUDY

parti

Assoc. Dir. -

Dep. AD Adm

Dop. AD Ir

s51d Dire:

Comp. Syst. —

Ext. Affales -

Filos & Com. -

Gon. Inv. -

Ident..

halive fil

Phone Frol.

Spoc. Inv. -

Training =

Telophone Rm. =

Diractor Soc'y -

By memorandum dated 7/30/75, you were advised of the

initial request from the House Select Committee and of the façt

a briefing concerning

general budgetary matters was being ar-

ranged for Committee Staff Members Richard Vermeire and

James. B. F. Oliphant:

At 4 p.m. on 7/29/75, Messrs. Oliphant and Vermeire

were given a briefing relating to the

by Assistant Director Eugene W. Walsh.

resenent.

Bureau's budget cycle

They were informed of

the step-by-step process the Bureau uses in submitting budget

requests to the Department and ultimately from the Department

to the. Office of Management and Budget and the Congress.

Numerous questions were asked relating to the procedural views

on the Bureau requests, the types of material used to justify

budgetary requests and, in general, the format of our budget

presentations to the Department and the Office of Management

and Budget.

These questions were answered to the Staff Members

satisfaction.

A discussion was. had concerning the FY77 Spring

Planning Call.

This document sets forth the guidelines the

Department:set for the format of our budgetary requests.

Mr. Walsh also discussed

generally our response to that

request entitled the "FY Spring Planning Call--Fiscal

Spring."

They indicated an interest in obtaining copies of

the aforementioned documents.

It was. explained that in the

existing procedures set forth by the Department of Justice

such material could only be made available pursuant to a

request by the Committee and after obtaining Departmental

authority. They stated they were. under severe time. con-

straints to obtain budgetary information, for the Committee.

Vermeire indicated that Elmer Staats, the head of GAO, would

be testifying on 1/3I/75before the Committee concerning the

GAO audit of the FBl to be followed by Bureau testimony on

August 7 or August 8 concern

budgetary materials ™ AHey12 1975

62-116464

EX-I06

CONTINUED - OVER

• PVD: lad

đot

NW 68%82Pocld:32989707-

My 82 Savings Bonds Regularly on the Payroll Savings Plan

---

## Page 22

Legal Counsel to Mr. Adams

RE : HOUSTUDY

stated a letter had been sent requesting this testimony by the

in a position of not having the data available for testimony in

this area.

They appreciated our position in this matter.

During the briefing they were also advised that three

FY. 1965-1974" had been prepared for the GAO and Mr. Walsh ex-

plained generally the background to the preparation of these

schedules.

The Committee staft members requested that they be

given a copy of this schedule.

They were informed that subject

to the approval of the Attorney General these schedules would be

made available for their review. They were asked whether they

could limit their budgetary request for the past ten years_as

oliphant and Vermeire indicated that this was acceptable with

fifteen years as set forth in their request of 7/22/75.

them; however, they would have to obtain the approval of Chair-

man Pike.

Mr. Walsh-asked, and Vermeire and Oliphant agreed, that

he would be able to review the transcription of notes which

Committee Staff Members took during this briefing to insure

accuracy.

Vermeire and Oliphant were advised by SA Daly who was

present during the briefing that they had not received security.

clearances. because

of a procedural problem and that in view of

that their access to classified material could not at this time

granted (the background concerning this problem as set forth

in memorandum dated 7/30/75).

RECOMMENDATION:

Action.

For information.

pris

pus

2

NW 68262 Docld:32989707 Page 22

---

## Page 23

OPTIONAL FORM NO, 10

MAY 1962 EDITION

GSA FPAR 141 CER 101-11.8

UNITED STATES GOVERNMENT

Memorandum

: Mr. Adams

DATE: 7-11-75

FROM

: Legal Counse

SUBJECT: HOUSTUDY 75

In a memorandum to Mr. Mintz. dated July 10,

1975, K. William O'Connor, Special Counsel for Intel-

ligence Coordination, United States Department of

Justice, asked us to arrange for a briefing for the

professional staff of the House Select Committee.

Mr. O'Connor attached a copy of a letter

dated July 7, 1975, from the Chairman of the Select

committee to the. Attorney General requesting the

briefing and a copy of a letter dated July 10, 1975,

from Mr. O'Connor to the Chairman, in which he (0'Connor)

stated a briefing will be held.

By memorandum dated July. LU, 1y1s, you were

advised the House Rules Committee, on July 10, 1975

passed

a resolution which, if passed by the House, would

. do two things: (I) abolish the present Select Committee

and (2) establish a new Select Committee with the same

duties and purpose as the original Committee. House

action on the resolution is anticipated on July 14 or

July 16, 1975. If the House abolishes the present

Select Committee and establishes a new one, the current'

professional staff members may or may not be employed by

the new Committee.

RECOMMENDATION:

62-116 464-2668

Arrangements for the requested briefing await

House action on the lloyge Select Conmittee.

'Assoc. Dir. -

Dop. AD Adm. =

Dap. AD Inv. #

Asst. Dir.:

Admin. -

Comp. Syst. —

ift. Affairs -

Ilos & Com. -

Gon.Inv.c

Ident. —

Inspection.

ntell.

Laborator Al

Training -

Tolophone Rm. -

Director Soc'y -

1-Mr. Wannall

1-Mr. Cregar

1-Mr. Mintz

1-Mr.. Hotis

1÷Mr. Miller

SUL 311913

6 2 6 1975 ,

---

## Page 24

OFFICE OF THE DEPUTY ATTORNEY GENERAL

WASHINGTON, D.C. 20530

July 10, 1975

KWOC

TO:

John A. Mintz, Assistant Director

Legal Counsel Division

Federal Bureau of Investigation

FROM:

K. William O'Connor

Special Counsel for Intelligence

Coordination

SUBJECT: Attached Request From House Select Comittee

on Intelligence

Please arrange for an appropriate briefing to be given,

as promptly as reasonable. Please advise me whether the

briefing must be restricted to cleared personnel, and of the

level of clearance required if that is the case.

ST -103

Sae unemas Loged Connsal te

REC-42 and 7/29/75

Holy tra

shall does met wout briefing

shahoon

Rett 26

5 JUL 31 1975

Z ENCLOSURE

8.2 AUG 2 6 1975

NW 68262 Docld:32989707 Page 24

---

## Page 25

JUL 1 U 1975

Fonorable Lucien N. Nedzi, Chairman

Select Committee on Intelligence

U. 3. house of Representatives

Wachington, D. C.

20515

Dear Mr. Chairman:

Pursuant to your letter of July 7, 1975, to the Attorney

Sincerely,

K. WILLIAM O'CONNOI

pecial Counsel for Intelligence Coordination

bec: /John Mintz

NW 68262 Docld:32989707 Page 25

26

---

## Page 26

LUCIEN N. NEDZI

TATE LISTINCT, MICHIGAN

CHAIRMAN

SELECT COMMITTEE

ON INTELLIGENCE

#C 3352

COMMITTEE ON ARMED

SERVICES

COMMITTEE ON

HOUSE ADMINISTRATION

Congress of the Emited States:

House of Representatives

•Clashington, D.C. 20513L 9 || 48 Ali°75

DEPT.OF JUSTICE

MAIL ROOM.

OROR

:

July 7, 1975

REGEIVEC

The Honorable Edward H. Levi

Attorney General

U. S. Department of Justice

Washington, D. C. 20530

Dear Mr. Levi:

JUL 1 0 1073

O.LA.

On behalf of the House Select Committee on

and pursuant to our mandate in the House

on the overall organizational structure and functions

of the federal Bureau of Investigation, as well as the

role of the Bureau in the intelligence community and the

various systems for intelligence-gathering.

Our task force responsible for the Department

of Justice is available for such a meeting at the Depart-

ments convenience.

Thank you very much for assistance in this

matter.

sincerely,

firm the

Lucien N. Nedzi

Chairman

LN: saz

RECENED

JUL 10 375

KWOL

i10

PARTIENT OF JUSTICE

21

91.975

OFFICE OF LEGISLATE AFFAIRS

62-1164647

26 EDERAL BJ. OF WE

ENCLOSURE

NW 68262 Docld:32989707 Page 26

---

## Page 27

HAY 1962 EDMON

GSA IPMR (41 CFN) 101-11.8

-UNITED STATES G

ERNMENT

Memorandum

TO

: Mr. Adams

ATE: 7-21-75

FROM.

: Legal Counsel

SUBJECT: HOUSTUDY 75

qui

On July 18, 1975, Inspector Bowers and

Special Agent Miller met briefly with Representative

Pike (New York), who is the Chairman of the

House Select Committee on Intelligence.

Special Agent Miller told Mr. Pike of the

Bureau's desire to cooperate with the Select Committee

and asked the Chairman to feel free to call him when-

ever he could be of assistance.

Mr. Pike stated he appreciated Mr. Bowers and

Mr. Miller visiting him.

He also said former Chairman

Lucien N. Nedzi showed him a

letter from Director

Kelley expressing the Bureau's cooperation, and he is

appreciative of that offer of cooperation.

He asked that the results of FBI background

investigations of the Committee staff be delivered

to him personally. In his absence, they may be placed

in a sealed envelope and left with

his assistant,

Paul Vanture.

budget for intelligence operations, including the

money spent on intelligence operations, how the budget

writing®

to the Attorney General

crosure - seM

7-29-75

'5

JUL 31 1975.

L-MI. CLeveLan

1-Mx. Mintz

1-Mr. Steel

1-Mr. Hotis

1-Mx.

Moore

1-Mr. Daly

1-Mr. Wannall

1-Mr. Miller

1-Mx. Cregar 7.

I-Mr. Malmfeldt

JDM: 1gP. "I/

* (11)

SISEP 05 07;

Buy U.S. Savings Bonds Regularly on the Payroll Savings Plan

NW 68262soEosld:32989707 Page 27

Assoe. Dir.

Asst. Dii

Admit

CompaiSyse. =

Ext. Affairs _

Filos & Com. =

Gen. Inv. =

Idont. -

Inspection

atoll.

Inv.

Training

Tolophone Rm. -

Director Soc'y -

---

## Page 28

Memorandum to Mr. Adams from Legal Counsel

Re:

HOUSTUDY 75

Chairman Pike voluntered there will be no

Il changes in the Committee staff.

The Members of the Committee are:

Otis G.

Rike (New York) - Chairman

Les Aspin (Wisconsin)

Dale Milford (Texas)

Philip H

Hayes (Indiana)

Robert N./ Giaimo (Conneticut)

Don Edwards (California)

James V. Stanton

(Ohio).

Ronald V.. Dellums

(California)

Morgan F. Murphy (Illinois)

James. P. Johnson (Colorado)

Robert McClory (Illinois)

David C. Treen (Louisiana)-

Robert W.wKasten, Jr. (Wisconsin,

do congrat the sect meet a area offering

appropriate, it being noted that a similar letter

dated March

5, 1975, was sent to former Chairman

vedzi and Mr. Pike mentioned Mr. Nedzi had shown

him that letter.

RECOMMENDATION:

External Affairs prepare a letter over the

Director's signature to Mr. Pike extending sed eat attached

and assuring him of our cooperation.

pin

Pen

- 2 -

| NW 68262 Docld:32989707 Page 28

---

## Page 29

Rose

OPTIONAL FORM NO. 10

, MAY 1962 EDITION

GSA FPAUR (41 CFR) 101-11.6

UNITED STATES GOVERNMENT

Memorandum

• MI. ;J.: B.: Adams

FROM

: Legal Counse

I - Mr. Mintz'- Encs.

(3)

• 1 - Mr. Adams - Encs. (3)

1. - Mr.

Walsh - Encs.

(3)

1 - Mr. Wannall - Encs: (3)

DATE: • 8/7/75

• I - Mr. Cregar - Encs: (3)

• 1: - Mr. Groover - Encs. (3)

• 1' - Mx. Hoti's- Encs:

• (3) \

I: - Mx. Daly - Encs: (3)

Doi

De

Ext. Affairs -

Filos & Com. =

Gen. Inv. -

Ident. -

SUBJE

HOUSTUDY - 75

Laboratory

Legal Coun

Pran. & Eval. -

Spoc. Inv. =

Training -

Telophone Rm. -

• At approximately 10:30 ;a.m. on 8/5/75, Michael E.

Shaheen, Jr., Special Counsel for Intelligence Coordination,

advised Inspector. Hotis that he had been contacted bỳ. A. Searle

Field; General Counsel to the. House Select Committee

on Intel-y

ligence; regarding requests made by. the Committee in letters

to the Department dated July 22, July 28, and July. 30; 1975 QK

(copies

attached) . : Field said that if a reply was not

Kips

received by. the

morning of August 6, 1975, the Chairman in-

tended to issue subpoenas.

Mr. Hotis told Mr. Shaheen that it would be impossible

to. comply with 'all the requests. on such 'short notice.. The letter'

of July; 22, for example,

asks; for all documents. 'and materials pro-

vided to the Senate Select Committee

on Intelligence. Activities by.

the Bureau.' It 'also requests all documents. and materials related

to budgetary authority. procedures; all budget information for the

past :15 years and all General Counsel's opinions or authorities

mandates or charters of the. Bureau.

It was also pointed out that many of these materials

are classified and that no procedures have been established with

the. House Committee for the receipt and storage of such information.

Shaheen said that we should attempt to. comply with as many of

these requests as is possible in the time allotted, but no documents

or information of a classified or sensitive nature

to the Committee or its: Staff at this time. He said the Committee

is primarily interested in budgetary materials and would like to

have them in advance of hearings on

Pommerening, Assistant. Attorney General for Administration, will

represent the Department at these hearings and has asked that

Assistant Director Walsh be present to answe

questions relating

to the Bureau's. budget:

REC- 102

111641y

AUG 19 1975

Enclosures

3 ENCLOSURG

JBH: lad'ion

:(10)

CONTINUED - OVER

416 1 9 1975

NW 68262 Docld:32989707

Bage 2 Savings Bonds Regularly on the Payroll Savings Plan

---

## Page 30

Legal Counsel to Mr. Adams

RE: HOUSTUDY

Shaheen also said that he is presently. drafting a letter

to Chairman Pike concerning the request in the July 22 letter for

all. documents furnished the Senate Select Committee. He said that

the Department is considering several alternative replies, one of

which is to suggest that Chairman Pike attempt to obtain these

I mater als found he senten ete copi tel that the mean

In the meantime, he

Later that afternoon, Mr. Hotis and Section Chiefs

Clyde Groover and Bill Cregar met with 'Shaheen and Steven

Blackhurst; Deputy Special Counsel for Intelligence Coordination,

in an effort to determine the Department's position on these

requests

Shaheen said he felt that the letter of July 22,

setting forth a

the Senate Select Committee,

letter and does not require

a response.

Mr.. Blackhurst said

Field asked that we

give prompt attention to Items C, D, E, E

(3 and 4); and & in

the July 28 letter. Field requested that

he be given access to this information prior to the hearings on

Thursday, August: 7:

It was pointed out that some of the infor-

mation,

such as intormant payments. and the cost effectiveness of

the informant program, is impossible to retrieve. Shaheen said

that we should make a

good-faith effort to comply and it it was

not possible to do so, we should discuss the matter with the Com-

mittee Staff.. He also said that if the Staff Members

go. beyond

mere access and ask for delivery of such materials to the Commit-

tee, these requests must be submitted in writing by the Chairman.

With regard to the letter of July. 30, Shaheen said the

General had instructed that

'the materials re-

quested in the

'first paragraph be furnished to the 'Committee as

soon as possible. These included: (1) the Spring Planning Call

submitted to the FBI by. the Department of Justice; (2). the Spring

• Planning Call response sent by the FBI to the Department; and (3)

the ten-year. budget charts indicating resource allocations.

The letter also requested a briefing by Mr. Groover on

budgetary matters.

Shaheen said that if Staff Members inquire

about any particularly sensitive matters they should be told to

It is possible that such in-

formation may. be made available to the Committee at a later time

in Executive Session, upon approval. by the Department.

Mr. Shaheen also said that we should attempt to furnish

all budgetary information already provided to GAO pursuant to

its investigation for the House Judiciary Committee, but it is

not necessary to meet the August 6. deadline:

CONTINUED - OVER

• - 2 -

NW 68262 Docld:32989707 Page 30

---

## Page 31

Legal Counsel to Mr. Adams

RE : . HOUSTUDY

Members for the House 'Select Committee. . The Department has also

approved delivery of copies of the manpower resource allocatioi

harts for fiscal

years 1965 through 74 and these will be delivered

to the Committee Staff on 8/4175.

RECOMMENDATION:

i done

For information.

!

• - 3: -

NW 68262 Docld:32989707 Page 31

---

## Page 32

1SEAN3

JuL 23 11 23 1: '75

DEPT.OPCUSTICS

NAIL RAGE!

Longress of the Omitch States

Douse pe Repecientatives

Einstingion, D.C. 20515.

July 22, 1975

WISHINGTON, 0J.C, 26519

AREA COOr: 202

TELCHHONE: 225-3820

MRG. JETTY ORR

OFFICE MALAGETI

DISTEICT OFFICE:

100. WIST MAIN STREET

RIVERICAO, NEW YORK 11501

TELEPHO: 15: 727-7332

NW 68262 Docld:32989707 Page 32

The Honorable Edward Il. Levi

Attorney General of the United States

U.S. Department of justice

Washington, D. 6. 20530

Dear Hir. Levi:

As Chairman of the House Select Committee on Intelli

gence, I an hereby requesting that the Cormittee be furnished

with copies of all documents and materials provided to the

Senate Seleci Committee to Study

y Governmental. Operations with

Respect to Intelligence Activities by the Federal Bureau of

Investigation, the Drug Enforcement Administration and any

other intelligence agency, within the Justice Department.

I pould like to male a priority roqucat for all decemento

all buaget information

s opinions of the authorities, mancates, or charters

of the Federal Bureau of Investigation, the Drug Enforcement

Adrinistration and.any other intelligence ascucy withir the

Justica

Department.

Until such time

as the matorials can ba

delivered to the Committee, I request that arrangements de

made fox the Committce staff to review them at the respective

department's.

Your cooperation in this matter is very nuch appreciated.

Sincerely,

909 R

Otis G.

Pike OFFCE OF LEGISLATIVE AFFAS

Chairman

JUL 25 1319

BEPARTMENT OF JUSTICA

ENCLOSURE,

62-116464

10

JUL. 22 1975

0.R.5.1.

OFFICE OF GOSLATRE ACS iT:

DEPUTY LYDERES COMERE

---

## Page 33

COMMITTEE:

WAYS AND MEANS

ongress of the Janited S

Mouse of Kepresentative

Clashington, I.E. 20515

July 28, 1975

Tramrutor..too.

FiREA CODE 202

TELEPIONI: 225-3825

MAS. DEITY ORR

SIFICE MANAGES

DISTRICT UPFICE:

209 WEST MAIN STREIT

RIVERHEAD, NEW YORK

41901

TELIPHOlS, 727-2332

Mr. K. William O'Connor

Special Counsel for Intelligence Coordination

U.S. Department of Justice

'Washington, D. C. • 20530

Dear Mr. O'Connor:

As Chief Counsel to the House Select Committee on Intelli-

jence l am hereby requesting, as soon as possible, a briefing

between Messis. Oliphant and

Vermeire of our staff

and Mr.

Eugene W. Walsh of the Federal Bureau of Investigation's

Administrative Division.

Our field of inquiry will encompass

all aspects of

the FBI budget as it relates to gathering,

use

and dissemination of intelligence.

We invite Mi. Walsh to

bring

; to the briefing any subordinates who have direct know-

lenge of the areas into which me are inquiring.

In order to facilitate our investigation we request that

Messis. Oliphant and Vermeire be given immediate access to the

following materials:

A. The most current and complete organizational chart

'. of the FßI including names, titles and job descriptions.

B.

The most current and complete telephone/office directory

‹ of SOG personnel.

C. Listing by accounting categories of actual expenditures

for fiscal years 1974, 1975 and 1976 to date:

D. Manual on accounting procedures and account codes!

E. Chart of accounts.

F: Information regarding Central File of FBI Informants,

including but not limited to:

A 13L 151

1. Procedure for classification, i.e., by type of

REERVE D

informant, subject matter, etc.

JUL 23: 1975

2.

How payments are approved and made to informants.

TOY

NW 68262 Docld:32989707 Page 33

621164641

ENCLOSURE.

---

## Page 34

Mr. K. Willian

July 28, 1975

Page

O'Connor

7-9.5

3.. Total doliar listing of payments.

4. Number of payments.

5. Number of informants with breakout of multiple

payments, to a single informant. it

6. Information pertaining to whether post payment

internal reviews are made concerning payments to informants.

ente nong

(It so, include internal audit findings.)

7.

All data pertaining to the cost effectiveness

of the informant program.

8.. All data (including but not limited to manuals and

memoranda) pertaining to procedures for the recruitment

and maintenance of informants.

G. Names of all personnel involved in budget preparation.

H. All data pertaining to confidential funds and the

payment procedures relating thereto.

I. All data pertaining to reward monies and the payment.

procedures relating thereto.

J. All payments, and breakdowns thereof, made to persons

outside the FBI with 'respect to intelligence and counterintelli-

gence activities.

Thank you for your consideration.

Sincerely;

A sad the

A.

searle Flelc

Staff Director and Chief Counsel

NW 60262 Docld:32989707 Page 34

---

## Page 35

cor56.8e668.80.90.2:8411893A18

Ват1 61910.50894

419:8, osirica

DAVI! C. TRLEN, I.A.

ПOШL0+ 0-11U41. G14F-

190X0A1: 8. 11200945% 19L-

225 1580818.8915.

DALL PASJ'ONE, TEX.

P911LIS31,H18LS. 1110.

6816210491599049. ExA

TELITIE: (204) 427-9851

Erect Committee on Intelligence.

C4.E. House of epresentatines

Washington, JoE. 20515

July 30, 1975.

Mr:. K. Willian O'Connor

Spècial Counsel for Intelligence Coordination

U.S. Department of Justice

Washingion, D. C.

20530

Dear Mr. O'Cornor:

This is to formally request various materials which

Mx. Eugene W. Walsh of the Federal Bureau of Investigation,

on July 29, 1975, agreed to turn over to this Committee, to-

wit: 1)

the Spring Planning Call submitted to the FBI by

the Department of Justice; 2) the

spring Lanning Cat response

sent by the iBI to the Department of Justice; and 3, the

cen veai duaret charts indicating resource allocations trerared

by Dale W. Anderson fos the GAO.

Furthermore, We request briefings, as soon as possible,

between Messrs:

Verneire and Oliphant of our stati and resors.

R. G. Hunsinges (Deputy Assistant Directoi, Adninistrative

Division), I. C. Groover (Budget and Accounting

Section Chies),

D. W. Anderson (Budget Fornulation and Presentation Unit)

J. J. Clynick (Budget and Accounting Section), and

I. I. Knowles

(Special Detail Unit), all of the Federal. Bureau of Investi-

gation.

We further recuest that lassrs. Vermeire and Oliphant be

given access to all

fil budretary information already provided

to the Gho pursuant

to its investigation for the louse Judiclary

Committee.

He further requent a briefing between Messrs. Vermeire and

liphant and Glou:.

Pommesening, Assistant Attorney Ceneral for

soninistration.

Thaut you for your cooperation.

Julie?

Richien

104

1402/s

Sincerely,

NW 68262 Döcld:32989707 Page 35

Sit in

Mei:

Seafe

Miraclor and Chico tur!

ENOROS 62-116464-24

---

## Page 36

OPTIONAL FỘRM NES 10

5010-106

AX TUES IOITION

SALGEN

REG. NO. 27

UNITED STATES GOVERNMENT

Memorandum

Assoc. Dir.

Dep. AD Adm. =

MR.

JENKINS

DATE: 8/5/75

Comp. Syst. =

Ext. Affairs -

Files & Com. -

Gen. Inv. -

INS Ident.

FROM

.W.

WALSH

Laboratory -

SUBJECT:.

HOUSTUDY 75

Plan. & Eval. -

Spoc. Inv. -

Training -

Legal Coun..

Telephone Rm. _

Attached are the following communications from theirector soy -

House Select Committee setting forth requests for information

interviews, or testimony which have been forwarded by the

Director and Chief Counsel, to Mr. K. William O'Connor, which

sets torth a two page listing of material requested.

dated 7/29/75 from Chairman Otis G. Pike to Attorney General

i!'

documents and setting forth a list of Bureau representatives

the committee

staff would like to interview.

Inasmuch as testimony before the House Select Committee

will begin as early as Thursday, 8/7/75, we feel it is essential

that the material which has been requested be prepared immediately.

With regard to the items requested in the committee

• letter

dated 7/28/75, it is recommended that the divisions

as indicated

hereafter be responsible for preparing responses.

Administrative

Intelligence

Inspection

A, B, C, D, E,

F (1), F(2): F(4)

F (6)

F (3) , G,

F (5), F(7), F(8)

H, J

sepalfate

Response to each question should be submitted on a

sheet to facilitate consolidation into a single

package.

wednesday x-101

Responses should be submitted to my office by 9:00

a.m.,

8/6/75. REC26 62-11646%

regard to the requests set

forth in the committee

letter dated 7/30/75,

the material is available in the Admin-

istrative Division and can be furnished te, the committee, staff

at it Department approves.

Enclosures

EE AUG 15 1975

1 - Mr. Bassett

1 - Mr.

Mintz

1 - Mr. Wannall

5-IM

OVER....

---

## Page 37

E.W. WALSH TO MR. JENKINS MEMO

RE: HOUSTUDY

RECOMMENDATION:

That the Administrative, Intelligence and Inspection

ivisions prepare material as

set forth herein which has been

equested by the House Select Committee on Intelligence

- 2-

NW 68262 Docld:32989707 Page 37

---

## Page 38

СОННІПІВ:

WAYS AND PLANS

House si Zepresentatibea

Clashlugton, i.E. 20515

ant. tills

08816809..8

DISTIN 101115:

11301

TELERISONS: 857-2532

July 29, 1975

Hon. Edward H. Levi

Attorney General of the U.S.

Department of Justice

Washington, D.C. 20530

Dear Mr. Levi:

The House Select Committee on Intelligence re-

quests: that you or appropriate officials of the

Justice Department testifi before the Conmitice

on Thursday, August 7, 1975, at 10:00 A..I.

The Conmittee will meet in open session and

We are requesting thai you testify as to justio?

Department buggot policies and procedures, as vell.

• the proposed and approvca budgets themselves:

with respect to any intelligence activities of

the Department.

If there are any additional questions, plcase

feel free to contact me or our Staff. Director,

Searle Field.

Cordially;

OGP/ca

otis

Chairman

Pikc

RECAN D

• JUL. BE BIS

NW 68262-Doeld:32989707 Page 385/

TENCLOSURE

62-116464

---

## Page 39

AUG 1 1975

-TO:

John Mintz, Assistant Director

Legal Counsel Division

Federal. Bureau of Investigation

FROM:

Richael E. Shaheen, Jr.

Special Counsel for

Intelligence Coordination

SUBJECI:

House Select Conmittee Request for

Access to Various Materials

•Attached is a request fron the House Select Cormittee dated

Juy 20, 1915, for access to various materials. Please arrange for

compliance with this request and advise me as to the length of time

likely to be required for response. I understand that the requested

briefing by fir. Walsh has already been provided.

ce:

Paul. Daly

_ NW 68262 Dold:32989707 Page 39

ENCLOSURE

6021164i0y-.

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## Page 40

• OTIS G.PIKE

" "FIRST ZINCT, NEV YORK

COMMITTE:

WAYS AND MEANS

Congress of the Cited States

House of Zepresentatives

@clashlugton, B.E. 20515

July 28, 1975

2428 PRAYDURN HOUSI: OFFICE BUILDINO

WASHINGTON, D.C. 20315

AREA CODE 202

TELEPHONE: 275-3825

'MRS. BETTY ORR

OFFICEMNLAGER

DISTRICT OFFICE:

209 WEST MAIN STREET

RIVERHEAD, NEW YORX 11901

TELEPHONI: 727-2332

Mr. K. William O'Connor

Special Counsel for Intelligence Coordination

U.S. Department of Justice

'Washington, D. G.

20530

Dear Mr. O'Connor:

:. As Chief Counsel to the House Select Committee on Intelli-

gence I am hereby requesting, as soon as possible, a briefing

between Messrs. Oliphant and

Vermeire of our staff and

Mr.

Eugene W. Walsh of the Federal Bureau of Investigation's

Administrative Division.

Our field of inquiry will encompass

fall aspects of the FBI budget as it relates to gathering, use

and dissemination of intelligence.

We invite Mr. Walsh

bring to the briefing any subordinates who have direct know-

ledge of the areas into which we are inquiring.

In order to facilitate our investigation we request that

MessIs. Oliphant and Vermeire be given immediate access

to the

following materials;

.

A.

The most current and complete organizational chart

of the FBI including names, titles and job descriptions:

B. The most current and complete telephone/office directory

of SOG personnel.

C. Listing by accounting categories of actual expenditures

tox fiscal years 1974, 1975 and 1976 to date.

• D. Manual on accounting procedures and account codes.

E. Chart of accounts.

F:

Information regarding. Central File of FBI. Informants,

including but not limited to:

1. Procedure for classification, i.e., by type of

RECENED

JUL 23 1975

informant, subject matter, etc.

2. How payments are approved and made to informants.

ENCOUNS 621164664-500

68262 Docide

7989707 Page 40

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## Page 41

«?,

;,

Mr.. K. William

July 28, 1975

Page 2

onnor.

3:

Total dollar listing of payments.

4. Number of payments.

5. Number of informants with breakout of multiple

payments to a single informant.

6. Information pertaining to whether post payment

' internal reviews are made concerning payments to informants.

(IE so, include internal audit findings.)

7. All data pertaining to the cost effectiveness

of the informant program.

8. All data (including but not limited to manuals and

memoranda) pertaining to procedures for the recruitment

and maintenance of informants.

G. Names of all personnel involved in budget preparation.

H. All data pertaining to confidential funds and the

payment procedures relating thereto.

I. All data pertaining to reward monies and the payment

procedures relating thereto.

J. All payments, and breakdowns thereof, made to persons

outside the FBI with 'respect to intelligence and counterintelli-

gence activities:

Thank you for your consideration.

Sincerely,

A.

A Land ta

Searle Fielo

Staff Director and Chief Counsel

NW 68262 Docld:32989707 Page 41

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## Page 42

August 1, 1975

TO:

John A. Mintz, Assistant Director

Legal Counsel Divisian

FROM:

SUBJECT:

Michael E. Shaneen, Jr.

Special Counsal for Intelligence

Coordination

House Select Cormittee Pequest for Materials

and Briefings

Attached is a request fron the louse Salect Conmittee for

various materials and for briefings with different Bureau officials.

Please arrane for compliance with this request and advise ine as to

the length of time likely to be required for response.

cc: YPaul Daly

-NW-68262-Docld:32989707-Page 42:

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## Page 43

1041Н. Ш.т.114110.811..94.

s19N5.9V.60100560:1.1911.08

N011115N, 121.096.61017.

ВЕ165918 Г. 9º0,19818. 11L.

DALE MIRIANG, TIX."

• ДАП111, НЕУК", 11D.

MH-1201 TITALS. FLA.

rosarts meatrit, lea

RUNO C, 7:6698,1.4.

11120.8. SUHM:01.COND.

A. SEATLE 05ЕП, БУДІВ НИТОЙ

PPHONI Do. +13:8181 890803-1619°6

TELEFILE: (202) 8218-9758

Select Comurittee on Intelligence

C.E. Mouse et Shepresicatalines

Washington, iNc. 20515

July 30, 1975

Mr. K. Willian O'Connor

Special Counsel for intelligence Coordination

U.S. Debatment of Justice

Washington, D. C. 20530

Dear Mr. D'Connor:

This is to formally request various materials which

Mr. Hugene R.

walsh of the Federal Bureau of Investigation, •

on July 29,

1975, agreed to turn over to this Conmittee, to-

wit: 1)

the Spring Planning Call subnitted to the FBI by

the Departmant of justice; 2) the Saring Elonning Call response

sent by the 73i to the Départront of Justice; and 3) the

cen vear buicet charts indicating resource allocations prepares

by Dale iT: linderson fos the GAo.

Furthermore, we request prietings,

as soon as possible,

betwcen Kirsis. Vermoire and Olinhant of our stafy and assis:

R. G.

Hunsinger (Deputy Assistant Director, Aministrative

Division), I. C. Groover (Budget and Accountin; Section Chicê),

D. Andoreon (Budget Formulation and Presentation Unit nories

Clynick. (Budget

and iccounting Saction), and T. I.

(Special Detail Unit), all of the federal. buregu of Investi-

gation.

We further reniest thai liessis. Vermoire and Oliphant be

given access to all Fil budretary infomacion clrcady provided

to the GiO pursuant to its investigation for the liouse Judiciary.

Commition.

He turcher conuest a bricfing battern Messes. Vernoire and

Oliuhant and Glen Mi.

Come ching,

Assistant Attornay General for

hoministration.

Thath jou for your cooperation.

Sincerely,

- NW 68262-Docid 32989707 Fäge 43

1d1:

Stall Director dud Chies Cuedi

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## Page 44

OPTIONAL MORMINO.."

3010-106

MAY 1962 EDITION

GSA GEN. REG. NO. 27

UNITED.STATES GOVERNMENT

Memorandum

: Mr.

FROM

:C. D.

CON

Neudorfer

JAIS

SUBJECT: HOUSTUDY > 25

DATE: 8/7/75

Assoc. Dir. -

Dep. AD Adm. =

Dop. AD Inv. -

Comp. Syst. —

Ext. Affairs =

Files & Com. -

Gen. Inv. -

Ident. -

pectior

Laborator Yar

Plan. & Eval..

Spoc. Inv. -

Training -

Legal Coun..

Telephone Rm. -

Director Soc'y —

Reference is made to memorandum Walsh to Mr. Jenkins

dated 8/5/75, and my memorandum to you dated 8/6/75 concerning

captioned matter.

As you know, the Computer Systems Division has been requested

to furnish responses to questions raised by the House select committee in

categories F(4), # and J. On 876/75 our response to category F (4) was.

submitted to the Administrative Division. The purpose of this memorandum

is to furnish material and information for responding to categories H and

Category H involves the House Select Committee's request for

all data pertaining to Confidential Funds and the payment procedures relating

thereto. Following a discussion with representatives of the Committee, the

Administrative Division has advised that in response to this category only

material relating to procedures for developing and paying informants is to.

be furnished. Sections 107, 108, and 130 of the Manual of Instructions cover:

the Bureau's procedure for developing and paying informants. Sections 107

and 130 have been furnished to the Administrative Division by the

Intelligence Division. Copies of Section 108 relating to criminal informants

are enclo

are enclosed with this memorandum for forwarding to the Administrative

and procedures pertaining to the Confidential Fund be the same as that

recently furnished to the Department of Justice. In view of this, there are

Enclosures

ENGLOSURE REG 1762 - 11646491

AQG 14

1975%

DEC:nja

' EX-106

(7)

1 - Mr.

Wannall (Attn: Mr. Cregar) dirt)

1 - Mr. Gallagher

5

1 = Mr. Cleveland

1 - Mr. Walsh (Attn: Mr. Groover)!

1 - Mr. Decker (with copy of enclosures) (detackef

OVER. •

1686A b8N91979707 Page 44

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## Page 45

Memorandum Neudorfer to Decker

RE: HOUSTUDY

enclosed copies of this material for use in responding to the Committee.

It is felt that the three sections of the Manual of Instructions plus the

material that we furnished to the Department will suffice as a response

to the Committee on the Bureau's policies and procedures for developing

and paying informants.

With reference to category J, which covers the Committee's

request for information on all payments and breakdown thereof made to

persons outside the FBLwith respect to intelligence and counterintelligence

activities, the Computer Systems Division will not be able to respond

because such information is not available from the payment records that

we maintain. The payment documentation does not indicate whether a

particular payment to a person was for intelligence-and/or counterintelligence-

type activities. Any possible payment of this type made by our Field Divisions

would be included in the monthly report entitled, "Confidential Fund and

Informant Report" under the category of Miscellaneous Expenditures. It is

also possible that payments of this type could have been made by FBIHQ. In

order to accurately respond to this request, all miscellaneous expenditure

payments made by the Field Divisions as well as payments made by FBIHQ

covering the designated period of time would have to be manually searched

and compared with background material relating to the authority for such

payments. Since the Computer Systems Division does not have the

responsibility for authorizing confidential payments, this analysis therefore

would have to be made by the appropriate Investigative Division and the

Intelligence Division. If it becomes necessary to go to this extent in

responding to this category, the Voucher Unit of the Data Processing Section

would conduct the survey to locate all possible payment records that might be

involved and made such records available to the appropriate Division for

analysis purposes.

RECOMMENDATION:

That this memorandum with enclosures be forwarded to the

Administrative Division for their use in responding to the House Select

Committee.

-2-

NW 68262 Docld:32989707 Page 45

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## Page 46

SECCION

1.08.

CRIMINAL INFORMANTS

1084 - D

DEFINITION

An indiridual who furnishes valuable information within our criminal

investigative jurisdiction or concerning other criminal matters of

interest to the Burezu

" Ba

ILLUSTRATICN

This type informant includes members of the underworld, those who closely

associate with criminals or have intimate knowledge of

criminal activities.

Typical examples

are madams, prostitutes, pimps, fences,

con men,

hijackers, robbers, burglars, hoodlums, gangsters, and those

individuals who associate vith or have knowiedge of such persons.

C.

OBSERVATION

The listing of an individual as an approved Bureau informant is dependent

upon whether he or she can regularly furnish valuable criminal information.

In most instances an individual will be approved who has:

rurnished worth while intormation in tho or more Bureau cases

Furnished worth-while information

in one Burezu case

average informationirelating to criminal intelligence investigations ]

Furnished worth-while information in at least one Bureau case and in

one other state or local case which is

acted upon by the responsible

authorities so as to obtain corroboration of the informant's report

Furnished worth-while information in at least one Bureau case and in

one other Federal case which is acted upon by the interested federal

agency, so as to obtain corroboration of the informant's report

DO DEVELOPMENT OF CRIMINAL INFORMANTS

One of the most important responsibilities of an Agent is the identi

fication of prospective criminal informants and the development of pros-

pective informants to the point where they will regularly contribute

information to the Bureau.

Criminal informants are used to:

Solve cases

¿ iuuare ingivires and mibnesses

Co Report cases we would not otherwise receive

a. Report plans to commit offenses

3.

Advise of general criminal activities

Informants are developed from those rho volunteer to be of assistance;

from subjects in cases investigated; from persons interviewed during

investigations; and from selected prospects who are clearly in a posi-

tion to obtain worth-while information.

Thear development frequently

requires patient, protracted effort to

find a basis for persuading

them to cooperate in furnishing information.

4.

Care must be exercised in attempting to persuade individuals to act as

informants to avoid

any allegations

of undue influence.

who is in custody and who offers to furnish information generally does

so in the hope that he will receive some consideration in return.

Bureau Agents cannot promise any immunity os any reduction in sertence

to a criminal who furnishes information and they must not put themselves

in a position where they might subsequently be accused of having done so.

5,

Once an individual has started to cooperate and furnishes information

of value, his continuea

cooperation can frequently be assured through

for services rendered and information furnished.

There should

be no reluctance in recommending substantial payments to

informants who

supply substantial assistance, if such payments are necessary to obtain

the assistance.

6.

Another important factor in the initial problem of getting a potential

informant started is the appreciation for fair and impartial treatment

sometimes generated during the handling of a case.

Agents must be alert

to recognize such feelings on the part of subjects and to capitalize on

a subject indicate in any manner that he is appreciative,

and should he be qualified to

act as a real informant by virtue of his

background and associates, then affirmative action should be taken to re-

contact him at frequent intervals fully to explore his potentialities.

NW 68262 Docld:32989707 Page 46

62116464-29

1. 25-63 ENCLOSURE.

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—- - —-

271- 10001

iw 68262 Docld:3299707 Page 47

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## Page 48

108D

SECTION 108.

CRIMINAL INFORMANES

70

8.

9.

In the initial suages

developing an informant, baceground daza

corcerning him should be

Once 211

this information has

one a detered to state belongue

to be used in persuading the prospect to act as ai incorment will

depend upon the peculiar

circunstances involred in tie incividual case

and upor the resourceruless of the Agent endeavoring to develop the

prospect.

Face field oifice must have criminal informants who do furnist infor

mation concerning all types of offenses within the Bureau's investi-

gative jurisdiction.

informants must be available to

furnish infornation concerning general criminal acuirities.

Eack field

office's informant coverage must be regularly plantea and aajusted to

the changing volume of ozenses occurriug in classifications, suck as:

2o

Theft from interstate shipment

Interstate transportation of stolen motor vehicles

Co

d.

White

Slave Traffic Act

Interstate transportation of stolen property

Bank rotbery

1.

Interstate

transportation of obscene matter

go

Interstate transportation of lottery tickets

ho

Gamb11ng

}.

Gang activities

jo

Folitics in crime

The following list suggests other sources from which names of potential

informants may be secured.

bo

Reports on general criminal activities

Major criminal cases

..

Applications for restoration of civil rights (closed cases)

do

Modus operaadi file of local police departments

e.

Victims in White Slave Traffic Act cases

Professional bondsnen

go

h.

i.

Bartenders in low-class neighborkoods

Salesmen catering to prostizutes

k.

1.

Complainants who contaci Bureau offices under certain circumstances

Operators of roadside taverns

Madams

Informants

Retired police officers, but care should be exercised in seeking their

assistance

6-13-72

NW 68262 Docld:32989707 Page 48

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## Page 49

SECTION 108. CRIMINAL INFORMANTS

108D

10.

After an informant has

been developed, and unless. some

reason to the

contrary

to be obtained if

they are not

on file in the Identification Division.

If the intormant refuses, the

issue is not to be forced.

The intormant's fingerprints, obtained

solely for this purpose, are to be removed from the criminal files when

the use of the informant is discontinued. A flash notice is to be placed

by the field in the files of the Identification Division by submission of

form FD-165, using informant's true name for each informant who has

fingerprints on file. In order to eliminate the possibility of jeopardizing

indicated in blank ballot box on

the security of Bureau informant f0-16 word "Informant" should not be

It should be noted the informant

file number serves as an indication to the Identification Division of

type of flash notice desired.

(Do not use form FD-9 to request an identification record on informant;

FD-I65 is to be used for this purpose.) The informant's FBI Identification

• Record number

should be included in the secure teletype designating a

number informant.

Informant's fingerprints,

when obtained,

be forwarded as enclosure to FD-165 using applicant-type lingerprint card,

This card should be properly executed

showing subject's complete

description,

including date and place of birth. Appropriate field office

should be shown

as contributor, field case file

in number space,

and "inquiry" in space for "company and address" on face of card.

flash should be removed when the informant is discontinued by submission

of FD-165.

When subjects in Bureau cases are

sentenced to the penitentiary,

ation should be given to the possibility that these subjects may be used

as criminal informants upon their discharge.

If there are any possibilities

of eventually developing one or more subjects as potential informants upon

their release, forward a letter to the Bureau requesting that a stop

notice be placed with the Bureau of Prisons

so that the appropriate office

will be advised of the subject's release.

The procedures

to be followed

in racestine that such a ston notice be placed

set out in Section

take to om not on him use innie at mane can then 50°

12. Requests of informant to help defend others

If requested to assist in preparation of defense in criminal-type

cases or handle assignment where such information is readily

available, informant should tactfully decline.

bo Such requests should be reported immediately to contacting Agent

and made a matter of record.

c. If informant cannot avoid becoming involved, instruct him not to

report any information pertaining to defense plans or strategy.

do Promptly report any such incident to Bureau.

If an informant is present in conversation between an attorney

•and individual under criminal indictment, he should immediately

leave.

If he is unable to do so and inadvertently learns of defense

plans or strategy, he is not to report the substance of any such

conversation to the FBI.

Additionally, the informant is not to

engage in or report the

substance of a

conversation with a criminal

defendant dealing with the offense for which the defendant is under

indictment.

f.

Each handling Agent must orally advise the informant of the

reduce it to writing and record it in the informant's fide. above,.

2a

6-13-75

-NW 68262_Docld:32989707 Page 49

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## Page 50

SECTION 108. CRIMINAL INFORMANTS

108D-E

[ [13. ] Parolees

As a condition of

parole, wich would include a conditional release,

an inmate is required by U.S. Board of Parole to agree in writing that

he

as all "informer" or special agent for any law enforcement

agency.

This condition applies to all releasees under the jurisdiction

of the

U. S. Board of Parole.

While this procedure would not preclude

accepting information from these persons, payments for information.

should

not be made

Once the period

parole has expired, these individuals may be considered for development.

E. PROCEDURE IN LISTING POTENTIAL CRIMINAL INFORMANTS AND CRIMINAL INFORMANTS

Before opening a 137 file on an irdividual to be. considered for

development as a potential criminal informant, the following elements

must be present:

The indiviaual under consideration must have been contacted at least

evaluate his potential.

The indiviaual must have an arrest record or criminal associates or

• be engagea in employment or activities (past or present) which make

criminal information logically available to him.

When a prospective informant is identified:

a. Consolidate field office references in a file.

Obtain all readily available background data.

FD-356 must be used in

any routine check pertaining to informants making sure all references,

such as symbol number, which would tend to identify individual as an

informant are deleted.

Obtain current FBI identification record by FD-165 which will also

be used to place a flash

notice against his fingerprints

a. Request summary of additional information in Bureau files but not

available in field office.

Specifically state reason for belief

Bureau files contain additional information.

When a potential informant has furnished worthwhile information in

accordance with the provisions of section C above, a symbol number should

be assignod. Diriot u jitwie toietype of not more thin tirü full pages in

linear paragraph form to the Bureau containing:

Informant's name and all aliases

Deleted

Residence address

Description

Deleied

go

ho

i.

Deleted

Employment

Past activities

FBI Identification Record number with date obtained

ko Criminal associates

1. Brief resume of information furnished in the past, inciding:

(1) Title and character of each case (Field office file number should

be shown on field office copy.)

Date information furnished

(3) Estimate of the value of information

A statement as to whether informant has shown any indication of emo-

tional instability, unreliability, or of furnishing false information

If the Bureau has previously furnished a summary of

data in Bureau files,

set forth the date and caption of the Bureau letter furnishing such infor-

mation.

4. The Bureau will advise the field office if the informant is not approved.

In the absence of such advice, the individual reconmended for listing as

5.

a criminal informant is to be considered an approved informant.

Once an informant has been listed and approved by the Bureau, such inform-

ant will continue to be listed for a reasonable period. This continued

listing will depend upon:

NW 68262 Docld:32989707 Page 50

3

6-13-75

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## Page 51

1085

SECITAL 108. CRIMINAL INFORMANTS

Complete jastification in subsequent[annuallletters of his

collit to turnish

of thet type occur

information

of a particular type should

offenses

Bridence that the irformant is being regularly contacted

After the Burezu is adrised of the

symbol number for an informant, do not

set forth the name of the informant in the heading birt merely the

In all communications

after the initial

secure teletype, the

Bareau zad

field office file nunbers for the infornant must be set forth.

In communications between offices,

the same procedare is to be followed.

MAINTAINING FILES ON CRIMINAL INTORMANTS

Indiviaual files are to be maintained on all active and potential

informants and are to de carried

as pending active.

Assignment and

tickler cards are to be prepared, but do not shon true name of intormant

or potertial informant. The name

of the informant is not to appear

on the assignent and tickler cards.

The files are to be included in

• the tabulatioas and calculations of delinquencies in the monthly

admiristratire report.

The handling of the subject of each of these

files is üe be assigned to an Agent who will

be personally responsible

Ior regular contacts.

Il information which coulá be testimony is received from a symool

informant or a PCI,

it should be put in FD-302 in exactly the same

as information received from any other

and address (without symbol number or PCI designation) shoula be set out.

lne original ro-goz is to be filed in the intormants aile;

a copy with

he identity of the informant properly concealed shall be placed in the

pertinent case file.

number should not be placed on the

original or any oi

the copies of the FD-302.

FD-209 shall be used as a

cover sheet for the original FD-302 and copy and shall be stapled to the

Ine original FD-209 shall be serialized in the incorant file

and the copy os

the FD-209 serialized in the case file.

original FD-302 nor any copies of the FD-302 shall be serializea.

faIloreno choula be stampse on topel or the 20-209 and coat:

mation hereir obtained contidentially; informari's name is not to be

disclosed in report or otherwise unless it has

been decided definitely

that he is to be, a witness in a trial or hearing."

Until it has been

decided that the

informant is to be a witness, information furnished by

him should be sent to the Bureau and to other

offices in the cover pages

of a report.

I furnished to the USA, it

shall be forwarded br letter.

It the incormation received cannot be testimony, it is to be out in

nemoranion Born; where cone of the informatior corcerns 23I curisdictior,

it may be put in one remorandum.

Do not predicate

an irvestigative re-

port, in any case in which prosecution can be expected, on information

attributed to an inzormant nose identity should noù be revealed.

it will be clearly recognized as the initial report in an investigation,

language similar to the following should be.used in the first report:

"This investigation has been instituted for the purpose of determining

" follored by a statement of the objectives of the investigation,

as "a quantity of antibiotics had been stolen from the medical

laboratory at Sort George +G.

Meade, Maryland."

Reports or memoranda concerning contacts with the informant shall not

be placed in the informant's file unless and until assignments are made

to run down any significant information.

All substantial allegations

received iron informants must be followed to a definite conclusion.

Reports or memoranda showing the development of an informant or contacts

with an incormant should be posted on the assignment cards in the same

manner as postings are made in any other type of case.

FD-209 may be used in recording contacts with approved

and potential

criminal informants. It may be used to extent deemed justified by sAc.

Form may be filled out in longhand for brief reports and reports of

negative contacis; lengthy reports should be typed and

a second sheet

used i] necessary.

Forms or memoranda prepared should show purpose

contact and cases discussed identified by file number; however, title

must be shown on form or memorandum it positive information furnished.

Contacts with informants are to be recorded in this fashion even ii no

NW 68262 Docld:32989707 Page 51

4

10-13-72

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## Page 52

6.

7.

8.

SECTION 108. CRIMINAL INFORMANTS

108F - G

information is developea.

During each contact, informant's activities

since previous contact

should be carefully reviewed and

contacting

Agent should make certain informant has furnished in writing or verbally

all infcrmation and data nich he has obtained since last contact.

Requests that an agent contact a criminal informant may ba made in

any

manner deemed

practicable by the sac.

Memoranda

prepared for the request-

ing Agent showing negative contacts with criminal informants are not

to be filed.

Such memoranda of a purely negative nature are to be

routed to the requesting Agent so that he may record in the case file the

contact wịth the

which

the memorandum showing

negative contact is to

Memoranda showing positive con-

tacts with informants are to be filed.

Ide files of the informants must

always show

that cortact was nade with the informant regardless of whether

the contact was

of positive or negative nature.

If desired, subfiles

may be opened in conjunction with the informants

files to permit filing information received from informants and avoid

cluttering the file, when the flow of information is suificiently volumi-

"nous.

pending and closed

symbol number informant files are to be maintained

lock and key under

the personal

[

informant and

potential criminal

informant files.

nature of a table of contents or

as an index to snow where in the file

parricular data

can be found.

This form is to de kept as the too docu-

ment in the pertinent informant file and is not to be serialized.

G. CRIMINAL INFORMANT INDEX

1.

- crimanal informant index (on form FD-348) shall be maintained in eac

fiela office containing a list of informants by names and a separate list

ry symbol minters.

The Danca câ joluntial viminal incurmacis ruo have

been personally

such

and favorably

contacted in an attempt to develop them as

shall be included in the indices.

2.

Name cards

Criminal informant and potential criminal informant name cards shall

contain:

Full name

4

5

6

and telephone number.

Implement address, position, and telepiore rumber

Office zile number

Symbol number

Type of information

b. Deleted

Name cards shall be subdivided by state, towns or counties,

type of

information furnished when desirable,

and then alphabetically.

** *

NW 68262 Docld:32989707 Page 52

:

4-13-73

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SECTION

108.

CRIMINAL INFORMANTS

103G.

3o Symbol cards

20

Criminal informant symbol cards shall contain:

symbol number

The full me come bial crated aretically by symbol

and then numerically.

Symbols consisting of fictitious names shall be filed alphabetically

behind the numerical symbol index section.

This portion of the

index shall be maintained in a specially designated drawer or index

box in the same location as the name carás.

Agents should not hare to handle the simocl cards when searching

through name cards looking for

informants who can furnish a

particular type ci information.

4.

When a criminal informant is discontinued,

destroyed.

the symbel card shall be

The name card which contains

the descriptive data outlined

shall be stamped "discontinued"

or "canceled" and

transferred

the symbel index.

When a potential criminal informant fails to develop

within a reasonable time, all cards relating to that potential informant

shall be destroyed except the name card, which shall be placed in the

source of

information

5.

Numbers assigned to your informants

of numbers used for

informants.

6.

Cace a number is assigned, it must :

subsequently reassigned to

any other informant, source,

on confidential technique, regardless of

type or designation.

informant is once discontinued and later

reactivated, the original number should be used again for him.

7.

The criminal informant index

shall be maintained in the office

the supervision of the SAC, ASAC, or the criminal supervisor,

discretion of the SAC.

8.

Index names of criminal informants in the general field office index in

same manner as any other name.

If the informant is.

contaci io restricie,

the index cara in the general lield office index

spouid not contain the informant's field office file number but merely

the words "See SAC."

9.

The Bureau must be

advised whenerer a criminal informant is added or

1.0.

11.

12.

13.

The prefix of a symbol number is made up of the appropriate field office

abbreviation followed by the appropriate assigned number.

The suffix of the symbol number will consisi of the letter "C" ta

designate criminal informant;

"ECI" to designate a parential

criminal informant who has been assignel a symbol number;

the legend

"C-IE" to designate a top echelon criminal informant; and the letters

"PC" to designate a potential top echelon criminal informant.

Although an individual, confidential technique, or

source may

remain the same; however, the suifix

is to be changed to the appropriate

letter or letters indicating this change (NY 000-c to NYI000-Ilor to

NY 000-C-TE)•

If there is a change in the current employment or actarity which

enables informant

obtain information,

the change should be submitted

by secure

teletype.

А той!

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108H

н.

SECTION 108. CRIMINAL INFORMANTS

[

PROGRESS LETTERS

1.

Monthly

• letter (original only, no abstract) must be mailed to the Bureau by

the fastest special delivery mail

available by the third

business day

following the end of the month for which prepared.

3..

Set up as follows:

Use form

FD-374 as the first page of the letter.

There are 13

items to be completed on this form, all of which must be answered

either through the insertion of the appropriate figure, or by the

b.

use of the word "none" if no accomplishments were recorded.

Administrative accomplishments

Under

item 2 list the symbol numbers of informants added and under

item 3 list the symbol numters of informants deleted.

Do not list

or count any informants added or deleted after the 25th of the

month for which prepared.

These informants should be listed and

counted in the next monthly progress letter submitted.

c .

Statistical accomplishments

Every statistical accomplishment which can be credited to criminal

informants or potential

criminal informants must be reported in

the first monthly progress letter submitted after the accomplishment.

took place. Set out as, follows:

Opposite items 6-10 list the total number of subjects in each

category who were

arrested or located as a result of information

furnished by criminal informants, or potential criminal informants,

the month.

7 is included in the total of item 6.

8 is not included in the totals of either items 6 or 7.

Opposite items 11-13 list the total dollar value of stolen property

recovered or property confiscated as a result of information

furnished by criminal informants, or potential criminal informants,

during the month.

rhe statuethoe ruge-tod da dling B, I0, 12, änú 13 cle che

plishments of other

law enforcement

agencies as a result of our

referral to them of

information furnished by an informant, or

potential informant.

d.

Documentation of statistics

Attach to form FD-374 (use

as many pages as necessary) a schedule,

headed by the name of the

submitting office and the date, to show

sources of the statistics compiled on the form.

This schedule

will have three categories; namely,

"Bureau Maiters," "Local Matters,"

and "Other Federal Matters."

each category will be listed in

three columns the criminal

informant symbol number or potential

inal informant symbol number, the title and character of the

case, and

nature of the statistic being credited to the informant (such as

"subject arrested" or "fugitive

apprehended" or "subject located" or

"$700 stolen watches recovered").

Il, as in the case

of local, state,

or other federal violations, there is no case title, this information

may be omitted; however,

the description of the statistic should

include enough information to identify the type of violation (such as

"John Green arrested

for local burglary" or

"$475 stolen hams recovered

from local burglary").

or more

statistics result from

formant on one case,

list the statistics separately opposite the in-

formant (such as "subject arrested on narcotics charge.

$700 narco-

tics recovered").

e.. [Deleted]

new my

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SECTION 108.

CRIMINAL INFORMAN?S

108E

2.. Lannual

An annuall letter

should be submitted concerning criminal irformant

• coverage in each

office's territory.

(Jais letier should be

submitsed

six months after the completion of the annual inspection of jour office. l

Except for those informants who hare been the subject of a sagment

request letter or a letter designating the criminal informant

withan the past 90 days,

an individual communication for each

Informant shall be submitted in duplicaie on letterheed stationery,

be dated, and

show the place where made.

These communications

must contain:

(2)

Symbol number

Bufile number for informant

Deleted

Statement showing reason why 30-da; contact not made if missea

[since the completion

of your office's annual inspection. I

Outcome of cases not completed when [repori of annual inspection

of field office vas submitted. ]

succinct summary (identified, by case title, charaoter, and date)

of information furnished or assistance rendered since

[inspection of your officeland an estimate of its value.

(8) Deleted

Note:

The above data are not required for regularly paid iniormanus;

communications pertaining to them should simply indicate they are

3.

being paid.

All communications shall be submitted to the Bureau by cover letter

which should show the symbol numbers of informants in the territory

covered by headquarters city and by each resident agency.

Schedule captioned "Potential Criminal Informants" shall list in

alphabétical order each potential crimiral informant who has been

under development one year or longer ari shall include for each

out anne easte for aeront ri statement outfining

efforts to develop

potential crimiral iriormant and information

furnished to date (include case title, characier, and date informa-

tion furnished), and specific comments as to reasons for further

efforts to develop.

7

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[

I.

SECTION 108. CRIMINAL INFORMAIES

108 - I

c. (These annual reposts

should be furnished the Bureau

six months

alter the completion of the last annual inspection of your office. l

BURBAU POLIGE

1.

A11

investigatire activity must be made a matter ci recora in the field

office files with all sources

of information being completely identified.

Sources include all confidential informants - criminal, extrenist,

security.

agents must not have and use informants known onlj to the indiviaual

_gents personally.

2.

Criminal informanis musi be advised that they are not Bureau employees.

It must be recognized that meny

informants are also criminals

considerable care must be exercised in decling with them so they ill

not become anare of and have the opportunity to obstruct the Bureau's work.

3.

Arrangements must be worked out so that at least ono Agents are in a posi

to contact each criminal informant.

For a short time after an incorm-

ant is first dereloped, it may sometimes be necessary to have one Agent make

all contacis.

Horever,

a program must be established and actually siarted

within six months after the informant is developed to establish a working

so that a second Agent can contact

such an informant.

situation arises in wich this cannot be done, the Bureau must be informed.

4.

Consideration should be given to the assignment of specific projects to

good aniorments, particularly those who have had little current opporiunity

do furnish information because of a temporary lull in criminal activity

in the area in which the informant is utilized.

5.

4ll informants ana potential informants should be contacted as often

as necessary, but aù least one personal contact should be made every

thirty days, unless there

is some substantial reason for not doing so.

6.

Information from informants of interest to another Government agency must

be furnished to that agency.

When information is passed on to local or

other investigative agencies, or acted upon by the Bureau, the identity

of the informant must be fully protected.

7.

When it appears that a criminal informant

or potential criminal inform-

ant shows indications of emotional instability... unrellability:

furnished lalse incormation,

the Bureau immediately and furnish

information as to any instance in which such informant has appeared

a mritness in behalf of the Government in a Bureau case and any instances

in which he has furnished information which was disseminated to any other

8.

Constant care must be exercised to avoid any disclosure to anyone which

might permit identification oi a criminal informant or even cast

suspicion

-==-=

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108I - J

SECTION 108. CRIMINAL INFORMAUIS

9.

10.

11.

12.

13.

L14.

on a criminal informant.

The danger to be recognized

and guarded against

is

that routine, everyday contacts with crimiral informants will result

in a relaxing of

our vigilance to protect intermants.

It must almays

be remembered that one slip or one missta-emert may cause a criminal inform-

ant to be killed.

Where prosecution is contemplated in a matter in which information has

been received from an informant

and the USA can give no assurance of his

ability to protect the informant's identity, to further

taken until the Bureau can be advised and the case can be discussed mith

the Department.

Informants should furnish information to -he sureau exclusively.

It under

unusual circunstances they find it necessary to furrish incormation

representatives of

some other agency or organization, be certain that they

will first advise the Bureau of their intention to do so.

Informants shoula confine themselves to maiters within the Bureau's primary

investigative jurisdiction so lar as lt is possible to do

not become involved in procuring evidence regarding violations not within

the Bureau's primary investigative jurisdiction.

Debrief all informants

and sources on at least a monthly basis regarding their knowledge of

narcotics

Criminal informants should be cultivated on Government reservations when

the investigative problems warrant this action but do not develop inform-

ants among active duty military personnel.

The office supervising an informant must furnish to any other office

using him a summary of

information as to the informant, such as de-

scriptive data, mode of travel, criminal background, an up-to-date

identification

record, and any other information pertinent to the

assignment.

All pending informant files are to be reviewed personally by appro-

priate supervisory personnel on a regular periodic basis not to exceed

filesyf. This review must include the informant's file and its sub-

J.

PAID CRIMINAL INFORMANTS

1. Investigative employees must not approach, directly or indirectly, repre

sentatives of companies, private industries,

or insurance companies and

request assistance regarding payments oi money,

or products of such

companies to informants. Gifts should not be given to criminal

informants.

2.

SAE may approve advances to an individual for expenses in obtaining infor

mation, ¡or the performance of services, er for information on a

up to $400.

Several payments on advances may be made under

general authority

until the sum of such paiments or advances aggregates

Thereafter, Bureau authority must be obtained before further pay-

ments or advances may be made.

The first conmunication to the Bureau

requesting payments to PCI under SAC zuchority must

contain description

and FBI Identification Record number (i1 available of the individual.

is necessary to request

a new $400 SAC authorization at the. same

time as. the secure teletype designating the informant as an approved

nunber informant is being

submitted, include all data in one

secure teletype.

When requesting authority to expend an additional sum aggregating $400 on

authority of Sal, submit original and one copy of letter.

It authority

granted, correspondence will be prepared and

transmitted to the fiela.

must include statement and inforcation required by paragraphs 3

and 4 (latter covering preceding authorization) of this section.

request not approved, correspondence will be prepared and transmitted to

8

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3.

4.

[

5.

6.

7.

8.

SECTION 108. CRIMINAL INFORMANTS

108J

Any communication

to the Bureau recommending payment authorization to a

criminal informant or potential criminal informant should include a state-

ment as to whether there has been any indication on the part of the inform-

ant of emotional instability, unreliability, or of furnishing false

information.

When requesting authority for additional payments or advances, advice should

be furnished concerning:

2.

The symbol number of the CI or PCI

The amount of each payment or advance made

c .

The title and character of the case or cases involted

d. Details of information furnished or to be obtained

e.

The value of the information or sentices

When it is recommended

regular payments be made to an informant,

the recommendation should propose a maximum amount to be paid to the

informant per.day, week,

or month.

diem basis,

"whenever

If the amount to be paid is on a

used" basis,

the maximum to be dis-

• bursed to the informant per month

should be set.

Recommenaation for continued payments to an informant who has been paia

on a regular basis should set forth:

Specific details of information received since submission of last

progress letter.

Set forta in a succinct manner.

Title and character of case in which pertinent

Evaluation of the worth of the information and amount paid in each

Letters recommending renewal of authority to continue regular payments

must be submitted promptly and at least two weeks prior to the expiration

of the currently authorized period.

Submit an original and one copy of

the letter requesting continued pay-

ments to criminal informants.

If payments as requested are approved or

denied, the field will be advised by separate communication.

In addition,

the initial payment authorization

for an informant will

in the form

of regular correspondence.

Payment letters must be explicit.

paragraph of your letter

should read as nearly as possible as follows:

"I recommend that authority be granted to continue (in(raount)

months on a c.o.d.

basis or for expenses to be incurred or services rendered

seeking information at our specific request.

This authorization

is to be effective

(date) and letters of progress will

submitted (date set forth in original authorization letter show-

ing letters to be submitted

monthly,

weekly,

etc.) and my letter

of (two weeks before

expiration of

authorization) will contain

my recommendation concerning further payments."

Blue

slips (FD-37) reclaiming payments to regularly paid informants

need

only refer to

the letter

authorizing such payments.

in item two

reclaiming payments to individuals under

the general authority set forth

this subsection must

clearly and accurately explain the

circumstances and outline the information obtained so that the Bureau

will be able intelligently to pass

upon such blue slips.

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1.08J

9.

10.

11.

12.

13.

SECTION 108. CRIMINAL INFORMANTS

If at any time regular

payments are being made to an informant, it appears

that the information being received or sertices being performed are not

commensurate with the amount being disbursed,

the payments should be

adjusted or discontinued immediately.

It must be recognized that a good

informant can often obtain pertinent information in a matter of hours

or days which would require

much more time, ii it could be obtained at all,

by an Agent conducting investigation.

Payments should be gauged by the

following:

How much is it necessary to pay the informant to obtain the needed

information?

b.

How much would have to be paid to another informant to obtain the

same information?

0 .

How much salary would be paid to an Agent during the time it mould

take him to obtain the same information?

Paid informants should not

be paid for infornation they furnish to any

other individual or agency.

Informants must also be instructed to report paiments they receive as a

part of their income when making income

tax returns.

See section (107L)

for additional instructions on income tas returns applicable to informants.

Receipts

2 .

Receipts jor payments to informants and sources should be obtained in

every instance were possible to do so.

II a

receipt cannot be

obtained for a particular payment, complete circumstances should be

set forth on the blue slip at the time reimbursement is claimed.

Receipts should be self-sufficient so that,

if it is necessary to

introduce receipts in evidence during course ol a trial, receipts

will not relate to other documents or files.

b.

These receipts should clearly show:

ONE

Date of payment

Period for which made (when informant paid on a period basis)

Iotal of payment broken down into separate amounts for services

(4)

or expenses where these items are pertinent

Name of Agent making payment

(5)

Jignalure uf person receiving the money

c.

à.

Receipts

are not to be witnessed by another Agent.

Il necessary to make corrections on the receipts,

such corrections

must be initialed by the informant and not by the Agent.

e.

When

transmitting receipts and itemized statements of expenses to the

Bureau, they should be stapled directly to the blue slip, leaving a

margin of at least one inch to one and one-hall inches at the top to

avoid contact with the Acco fastener punch.

The staples should be

placed in such a manner

That the date or aber data appearing on the

receipt will not be mutilated and all information on

the receipt can

be easily read without detaching it fron the blue slip.

Care must

be taken

to insure that receipts

are of such a nature that they clearly

the payment

of money and do not refer to any other documentary

material contained in Bureau files.

tipulation re payments made to witnesse

ee sectionllozilfo.

instructions regarding preparation of tabulations of

payments made to prospective witnesses.

= me to outta.

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K.

Is.

[

1

SECITAN 108. CRIMINAL INFORMANTS

108K - L.

DEPARIMONI POLICY AND OPINION

The Department has issued instructions to tell all USAs that informants of

the Burezu

shall not be interriewed or subpoenaed without prior consent of the

Department.

Any detiation from this policy should de immediately brought to

the Bureau's attention.

On 7-10-52 the Department furnished an opinion regarding the question whether

an informant could be prosecuted for technically riolating the law while

attempting to obtaiz evidence regarding a Federal violation. The Depariment

"..Il the intent throughout was

to assist the goverrment agents in

the enforcement of the law,

and not to riolate or to cover-up fer

the lan,

bellered a case for prosecution could ve made

against such an informer...."

"The procedures to be followed by informers working under the supervision

of your agents in the aid of enforcing

statutes coming within your jurisdic-

ion largely rests upon your sound discretion....It is not believed that ai

normer would be othernise immune irom prosecution for actions which woul

subject a Federal enforcement officer to prosecution."

TOP ECHELON CRIMINAL INFORMANT PROGRAM

The too echelon criminal informant programis aimed specifically at developing

informants ino can provide a continuous flow of quality criminal

gence information regarding

the leaders of organized criminal activity

throughout the nation.

It is directed at developing informánts in the

following categories:

Informants who are

Nostra (SCN)

Informants who can furnish significant information

regarding other

organized criminal groups

Informants at the top level of organized gambling activity who can

provide information

that will enable the Bureau to effectively

the anti-gambling statutes

Infoimoius irao can produce accurate and authentic data regarding the

extent of graft and

corruotion in each sector of the

Informants iho can furnish information which will enable the Bureau

to prosecute the hoodlum hierarchy

2.

The development of informants who can provide information of this caliber

is mandatory to insure the Bureau meets its commitments.

3.

This program calls for the selection of targets for development.

selection should be based upon a combination of a particular booalums

qualifications by virtue o

his position in the organized hoodlum element

and upon circumstances indicating his possible susceptibility

• to development.

Io insure maximum security for an indiviâual under development, he should

be assigned a symbol

number immediately upon being designated for attention.

The symbol number for these individuals should be followed by the suffix

PC to insure that they will be distinguished from regular criminal

informant.

The Bureau should be promptly advised whenever an indiviaual

or deleted irom your program.

4.

When requesting authority to add a target, include sulficient data in

a [UACB]communication to indicatelthatlthe individual is a logical

choice for inclusion in your program. (For purposes of security,

initial communication should always

be transmitted by secure teletype and

shouldlinclude such data regarding the proposed target as a complete

description, la summary of hisjarrest record, and information indicating

thatlhe hasjaccess to significant information(concerning top level

racket figures.

Insure that the program is not diluted by requesting

authority to ada targets who should more appropriately be considered PCIs.

5.

A penetrative investigation of each individual

selected as a target

should be conducted prior to any approach of the individual.

completion of the penetrative investigation, request the Bureau to approve

The letter reguesting such authority should

set forth the approach to be utilized in the intertiew.

A full exploi-

tation must be made of any circumstances which place a

target in a

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12081-39039

SECTION

108. CRIMINAL INFORMANIS

position whereby he will

In making a determination a

thoroughly explere.

6.

The requirement of obtaining Bureau authority to conduct interriews is

restricted to informant development interviews and does not preclude

interviews conducted

in connection with

other investigations.

7.

Advise the Bureau at a mirimum of every 90 days of progress in attempting

to develop each target desigrated for attention.

Include positive inforna-

tion in summary form and also set forth your contemplated plan to effect

In subsequent communications point out the

result of action taken and in the event your contemplated plan was

productive or feasible, adrise of your alternate plar.

Also include the

specific number of times the top echelon source was contacted by the

alternate Agent as well as the Agent to whom the case is assigned

forth'data regarding corroboration of the source's information.

8.

A letter should be directed to the Bureau when an individual under

development furnishes sufficient information to qualily him as a top

This letter snould follow the same format used to

designate regular criminal informants, and the suifix ci the

symbol number

should be changed to C-IE in accordance with subsection G, item 12, of

this section.

9.

Every effort

must be made to insure the potential of each top

informant is fully utilized to the Bureau's advantage.

Be particularly

alert to the possibility of utilizing information from member-informants

in LCN to further penetrate ioN.

10.

Justification letters are to be

submitted regarding top echelon inform-

ants, except those on a regularly paid status, on a triannual basis.

Offices Albany through Newark should forward these letters by February 1,

June I, and October 1. Offices New York through Washington Field should

these letters March 1, July 1,

and November I.

Prepare these

letters in the same manner as annual

letters for regular criminal inform-

ants.

11.

Following the initial teletype communication, care should be exercised to

male certain that subsenuent

communications to either the Bureau or other

field offices containing information which may jeopardize the informant's

identity are sent by secure teletype.

12.

As in the payment of criminal informants, SAC may approve advances to top

echelon informants or targets under development for expenses In obtaining

information, for the performance of services, or for information on a

.C.O. Do basis up to $400 initially.

Several payments or advances may be

nade under this same authority until the sum of

such payments or advances

aggregates $400. [All future requests for reneval of SAC authority to

pay top echelon

informants and targets within the Top Echelon Criminal

Informant Program should be submitted to the Bureau on a "UACB within

seven calendar days" basis.

requested in increments of

$600. additional authorizations should be

13. For other regulations concerning the handling of top echelon criminal

informants

and targets, be guided by instructions set out above for

regular criminal informants.

M.

PARTICIPATION OF AGENTS

On March 31 of each year furnish the Bureau a list of Agents in the office

no have been assigned to criminal investigative matters 50 percent or

nore of the time during the previous year excepting Agents assigned

primarily to accounting investigations) and have not developed an informant

or have not effectively operated

they previously developed.

Agent's performance and furnish

as an attachment to the list explanatzons

all listed Agents, along with recommendations for administrative

N. CLASSIFICATION - 137

12

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POLICY

INFORMANT AND INFORMANT PAYMENTS

62-116-464-22

ENGLOSURE

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271- 10001

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PAYVENTS TO CONEIDENTIAL INFORMANTS - The Bureau has received inquiries

regarding the amount a Special Agent in Charge nay approve paying an informant.

mithout prior Bureau authority.

You are

advised you may approve payment of an amount up to 950 to an

informant in a specific instance for information

submitted.

The blue slips

subnitted for claiming these payments must clearly and adequately explain the

circumstances and sumarize the information obtained so the Bureau will be in

a position to intelligently pass such slips for payment, receipts to be attached

wherever possible.

This does not change the present instructions that prior Bureau author-

ity must be octained before paying an informant on a regular basis at a rate

exceeding $10 per month, but applies only to specific instances in wich it is

expedient or necessary to expend money to obtain information concerning matters

or persons under investigation which information is not otherwise obtainable.

This oê course does not apply to expenditures for entertainment. You will be

held responsible to insure the Bureau receives full value for all the money

expended by you and such matters must receive your personal attention and ap-

proval.

•.

:

Very truly yours,

John Edgar Hoover.

Director

-

Enclosures for (C) and (D)

7-31-45

SAC LETTER NO. 71

Series 1945

Jas:

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-

(C) CONFIDENTIAL INFORNANTS - Full coverage of all our investigative activities

must be maintained and the use of paid confidenvial informants

is necessary.

With-

out a constant and careful check of the production of these paid informants, it is

possible that full value will not be received for the services rendered.

You are instructed, therefore, to personally review all reports submitted

by paid confidential informants either National Deîense or General Investigative

to be certain that they are providing information commensurate with the amount of

money being paid to them.

If it is determined after a personal check of each paid

confidential informant that the Bureau is not receiving an adequate return, pay-

ments should be immediately discontinued and the Bureau advised. Likewise, if

you feel that any informant's compensation snould be adjusted based upon a de-

crease of his activity, a summary should be furnished to the Bureau together with

your racommondations concorning a chango in payment to him.

After you have completed this check of all paid confidential informants..:

you should continue to affora this matter your personal attention to insure the

Bureau at all times receiving a full return for any money paid to informants.

-1-21-47

SAC LETTER NO. 5

Series 1947

• caw. ..

-..•

-...:....-.

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IN REPLY, FLEASE REFER TO

'FILE NO.

MERLO FOR MR.. HOOVER

TOLSON

CLEGG

CONNELLEY

GLAVIN

HARBO

LADD

NICHOLS

ROSEN

TRACY

BAUNGARDNER

BAUGHMAN

Mnited Stars Orpartment of Justice

PERSONAL ATTINTION

Federal Burran ot Inurstigation

Bashington 25, Đ. C.

SAC LETTER NO. 161

SERIES 1948

Decenber 29, 1948

L CALEARAN

CALLAN

CARLSON

CARTIYRIGHT

CONRAD

•DOMINING

EDWARDS, H. I.

EGAN

• FEENEY

FLETCHER, H. B..

GURNEA

HARGETT

HINCE

JONES, M. A.

KEAY

LAUGHLIN

LEONARD

LONG

McCABE, E. J.

McCABE, N. R.

McGUIRE

MCINTIRE

MOBLEY

MOHR

NANNA

NAUGHTEN

NEASE

PARSONS

PENNINGTON

RENNEBERCER

ROGERS

SIZOO

ТАМИ, Q.

WATKART

WALL

WHITSON

AND SUPERVISORS

(A) PAYMENIS IO CONFIDENIIAL INFORMANTS - At the present time, uvor the

authority of the Special Agent in Charge, an individual who furnishes Information

of valuè may be paid up to $50 at any one time.

This is considered a COD payment

as arterentiaced icon a paymerit io au inuividuai wao 1s on taù confidcruel. rayzull.

On a regular basis an individual mey be vaid up to 510 per ronth vithout prior

Bureau authority, These methods of payment are now altered as follows:

•1. A single payment may be made on a COD basis up to $50 as in the past.

2c. If the same person 1s paid a second time, regardless of the anount

or method, a letter should be directed to the Bureau advising tre

- amount of the second payment, what was, paid to the indivlaual before,

the purpose of both payments, background information 1f not already

available to the Bureau and your opinion and recommendation as to :

whether the Individual should be considered a regularly paid Informari

due to his ability to continue furnishing information of value.

3. No additional payments ray be made to an Individual after he is peid

a second tIme without Bureau authority as 1t 1s bellered thai aiter a

second payment, this troe of individual should be considered in the

category of a continuins informant. Authority must, therefore, be

obtained to ray anyone regardless of arount on a regular basis, end

to determine a regular basis you should consider anyone who is paid

moro than twice.

NA 68262 Docld:32989707 Page 66.

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(B) INFOPMANTS -- The lollowing procedure relative to cash payments to Bureau

Informants should be foiloved by you in the future.

1. You are authorized to pay a sum up to $i00.00 for Information

given to the Bureau on a C.O.D. basis.

At the present thre. you

are authorized to pay up

to $50.00 without Bureau authority for.

such information.

2.

You are authorized with reference to expense toney in proper

cases to advance to an informent, who necessarily incurs experses

In seeking out inforuation for the bureau to pay en amount lo to

$100.00 for euch expenses to be incurred for the purpose of seeking

out information.

The Bureau should be pronotly Informed conceming any rayrent tade in

accordence with the above instructions. You should report the name of tha

infourent, tha enount of payment, the identity of the cese invalred, detaila or

information received from the informant and the value of the information.

This

Instruction does not abrogate any previous instructions with reference to the

pajment oi regularly paid informanto.

All Special Agents handling confidential informents in your office

shoula be adriaod of the foregoing inetructions.

• 3-14-50

SAC LEITER NO. 19

Series 1950

NW 68262 Docld:32989707 Page 67

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Ba. CONTIDENTIAL IECEASTES - FAYENT

caroll It ant

setters door ence do it

Henceforth, in specific instances in which it in necessary and expedient

to expend money to obtain Information concerning matters or person: undel investi

gation, 'nich is not otherise obtainable, or to advance expense roney to enable

an inforiant in obtain such information, the SAc may approve payments of enounts

up to $100 and totalling noù nore than $100 to an informant on a COD basis,

regaraloss of the number of payments.

This applies only to pursona ton are not balao pard regulenly as

conficontial informants.

Prior Bureau authority must be obtained in order to rake any edditionel

paymenü to an informant who has 'oceived*

payments totalling $100.

7-25-50

SAC LETTER ITO. 48

-9=

• Series 1950

NW 68262 Docld:32989707 Page 68

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(D) CONPIDENEINL INFORUANES (SECURITY AND CRIMINAL)

- Reference is

made to SAC Letter 168, dated July 18, 1952, Item B.

In view of the bureau's critical condition insofar as

Its operating appcopriations are concerned, the payments to in

formants set forth in the above SAC letter

are being changed.

Hereafter payments to informants may be made upon the authorization

9/19/52

SAC LETTER NO. 93

-2÷

Series 1952

..

of the Special Agent in Charge up to the point where such payments

aggregate sico without prior authority from the Bureau.

You should carefully administer this program in order

to insure thei all payments are sufficiently justified and in the

evant payments in

the amount of more than $100 to an informant arc

necessary, prior Bureau authorization should be obtained.

,".!

NW 68262 Doc|d:32989707 Page 69

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(F)

SECURITY INFORMANTS - As an economy measure, the Bureau will •

no longer puerare correspondence to the field granting authority to

continue raments to security incornants when the payments as re-

quested by une field ano approved.

Elective immediately, the dubli

cale copy of your recommendation lor authority to continue paymenus

will be stamped "Approved" at the Bureau, initialed with the auto-

graphic initials of the Director and returned to you.

this will serve

as authority to continue parents at the requested rate.

whenever

youl recommendation is not approved, correspondence will be prepared

and transmitsed to you, so indicating.

In addition, the initial

payment authorization for an informant will be in the form of rezulai

correspondence.

In order that this system may function orozerly it is

essential

thai payment letters be explicit and thet ambiguity be

avoided.

Therefore, the last paragrapn of your letter should read

as nearly as possible as follows:

"I therefore recommend that authority be granted to

above in

tomant up to a

(ancine ne_(wonth, teel:) gor

(month, week)

for expenses actually incurred

for a perioà of

months, effective

i (date),"

Il payments are to be made on a C.O.D. basis, this fact

should be indicated.

In order to insure prompt and ellicient hanaline or this

type or correspondence, you should be. certain

that

sufficient in-

so the Bureau upon which to base a decision

as io the justifiabillur or the parments and other details must ba

correct, such as amount, of previous payments, the effective date of

future payments, etc.

There is, of course, to be no laxity shown in the super-

vision of security

info-mants and nayments made to informants,

it w1ll be your personal responsivility to see thai the Burean is

receiving an adequate return for compensation paid to each and every

Informant.

In preparing blue slips raflecting payments to security

informants in the future, you snould show as

the date of authority

the date oi your letter to the Bureau requesting said payments,

provided approval has been received.

10-28-52

SAC LUTTER NO. 115

• 4.=

Series 1952

NW 68262 Docld:32989707 Page 70

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183

CRIMINAL INFORMANTS. - PAYMENTS MADE ON SAC AUTHORITY - Section

108 - 5, Manual of Instructions, and Part I, Section 26, b,7, of ühe

Handbook provide for payments to criminai informants on

the auchonley

of the SAC in the amount of $100.

These provisions are being changed

to provide ior payments to criminal intormants under the authority

of the SAC up to $200.

÷7/7/53

SAC LOTTER NO. 53-47

NW 68262 Docld:32989707 Page 71

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(M) SECURITY INFORMANTS - CRIMINAL INFORMANTS - CONFIDENTIAL

SOURCES - GIFTS - Instances have come to the Bureau's attention In

which gifts of bottles of whiskey had been made by Special Agents

to confidential informants as a means of payment for services rena

ered.

Thereafter, reimbursement has been claimed by voucher drawn

on the field office confidential fund.

The Bureau considers this

practice to be undesirable and it should be discontinued.

Hereafter,

Gifts of alcoholic beverages to confidential informants and sources,

both security ana criminal are pronibited.

very truly yours,

John Edgar Hoover

Director •

Attachments for (F) & (K)

-

1/26/54

SAC LETTER NO. 54-5

10

NW 68262. Dockd: Docld:32989707 Page 72

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(D)

"SECURITY INFORMANTS - CRIMINAL INFORMANTS - PAYMENTS -- A s1t=

uation recently arose whereby an informant complained that he signed

receipts for money which he did not receive from the contacting

Agent.

It developed, that the Agent was in the habit of obtaining

a receipt for a specific Bureau-authorized amount, but if in the

opinion of. the Agent the informant did not deserve the full amount,

only a part of the authorized sum would be furnished to the Informant

The Agent would then deposit

to his own personal account the sum which he had not given to the

informant with the idea in mind of later furnishing to the informant

from his personal account an appropriate sum when he felt the

Informant deserved the additional money. As a result, confusion •

arose as to whether the informant received the fully authorized sum.

This type of operation, of course, results in falsification

of records and. Is highly improper..

The handling of Government funds

is a serious responsibility and all employees should exercise good

judgment at all times.

Whenever anyone in the Bureau's service 1s

charged with the duty of handling Government money, the rules and

regulations in connection therewith must be strictly followed. If

a receipt is obtained from an informant, or anyone else, the

sceipient must be paid in full in accordance with the receipt.

I want each Special Agent in Charge to review carefully

the methods presently in operation in his Division concerning the

handling of the confidential fund, particularly as it relates to

informants, and make certain that disbursements and receipts are

being handled in the proper fashion.

You are reminded that the proper maintenance and handling

of the confidential lund is your personal responsibility and it is

Imperative that the sureau's regulations be followed explicitly.

John Edgar Hoover

Director

2/2/54

SAC LETTER NO. 54-7

NW 68262 Docld:32989707 Page 73

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(D)

CONFIDENTIAL EXPENDITURES - The Bureau wishes to re-emphasize

the importance of SACs making certain that the Bureau receives ap-.

copriate value for every dollar expended in the informant program

•ur in any other type of confidential expenditure. This program

cannot be treated lightly by sAls.

It is your personal responsi

bility to examine carefully and critically each expenditure and

have adequate justification for any approval or recommendation made

by you.

For your information, field inspectors will bring with

them a representative number of blue slips executed by you and will

trace these expenditures through appropriate files in order to

artermine that value has been received for expenditures..

Any

questionable items will result in interviews with employees and

may, If the expenditure is not proper, result in the Government

-requiring reimbursement from the appropriate SAC or Agent.

you should re-examine provisions in the Bureau's SAC

Leiters and Manuals concerning the handling of confidential ex

penditures and be guided accordingly. Nothing in this communi-

cation changes any Manual, provision.

6-29-54

SAC LETTER NO.

54=33.

NW 68262 Docld:32989707 Page 74

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(AB) SECURITY INFORMANTS - PAYMENTS - Henceforth, the Bureau will

not authorize continued payments to security informants and con

fidential sources furnishing information in security cases for

periods longer than three months.

authorized continuca payments to certain of these individuals for

periods as long as six months; nowever, chis will no longer be the

case and 1t will be necessary to justify continued payments to

• security informants and to obtain additional authority Ior such-

7/13/54

SAC LETTER NO. 54-36.

- 33 =

payments wherever desired at least every three months.

The above will not change any authorizations presently

in effect even though they may be for a six-month period.

When

submitting justification for continued payment for any of your

security informants, however, you should limit the pay period to

three months.

It is pointed out that requests for authority to con-

tinue payments to informants should be submitted to the Bureau

at least two weeks prior to the expiration of the current pay

period in order to prevent any lapse of pay authority. Immediately

upon recelpt of this letter, you should review the files on your

security informants in order to assure that the necessary

action will be taken so that these letters are submitted at the

appropriate time.

I have repeatedly emphasized the necessity for careful

examination of any and all payments from the confidential fund.

Your attention is directed

In this regard to SAC Letter 54-33.

Payments to iniormants are made only on the personal recommendation

of the Special Agent in Charge and must in every instance be

commensurate with the information being received from the informant.

to make payments to security informants and confidential sources.

.. ^..

-..

NW 68262 Docld:32989707 Page 75

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.=.

(B) SECURITY• AND CRIMINAL INFORMANTS = RECEIPIS FOR PAYMENTS --

Recently Bureau learned a former Special Agent improperly arranged

for a third person to affix an informant's name to a receipt cover

ing payment cue informant.

Allegation made amount que was not paid

by the former Agent who claims amount was subsequently Given to the

informant.

In order to eliminate unjust claims that Special Agents

are improperly handling financial transactions with informants.

receipts musi be signea by

the payee whenever possible.

Exceptions

should be fully explained.

ünder no circumstances should anyone

sign a receipe for the payee.

12/11756

=

SAC LETTER. NO. 56-64

-•.

NW 68262 Docld:32989707 Page 76

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(J.) SECURITY INFORMANTS - CRIMINAL INFORMANTS - RECEIPTS FOR PAY-

MENTS TO INFORMANTS AND SOURCES - In connection with the payment of

Informants, and sources

either on the SAC's authority or on prior

Bureau approval, receipts are to be obtained in every instance where

it is possible to do so.

Receipts obtained for the payments of money should be of

such a nature that they will be seir-surficient so thai. if it

becomes necessary to introduce the receints in evidence durine the

course of a rial, the receipts will not relate to ocher documenüs

or Tales.

Receipts obtained in the future should clearly show the

date on which payment was made, the period lor which made when

informant is paid on a period basis, the total amount paid broken

down into separate amounts for services or expenses where these

Items are pestinent, the name of the Agent making the

payment and

the signatune of the person receiving the money. It is reiterated

that informants who rereive money for services rendered must clearly

understand that such money must be listed as income for ter purposes.

In transmitting the receipts to the Bureau, they should

not be stapled to any other documents but should be enclosed in an

envelope with the envelope stapled

to the supporting blue slip. and

voucher. Extreme care must be taken that the receipts are of

such

a nature that they clearly reflect the payment of money and do not

refer to any other documentary material contained in the Bureau files.

When an itemized statement of expenses 1s furnished by an

Informant, It should not be attached to any other document but

should be forwarded to the Bureau in the same envelope with the

receipt.

Very truly yours,

John Edgar Hoover

Director

Attachments for Letters (E) and (G)

3/5/57

SAC LETTER NO. 57-14

-7

• NW 68262 Docld:32989707 Page 77

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5/21/57

SAC LETTER NO. 57-31

superrisian

(0) CRIMINAI INFORMANTS - SECURITY INFORMANTS - SOURCES - PAYMENT

SE CORTEX

OF FINES • Bureau personnel shall not pay lines, court costs, 'or

provide money or collateral for any informani, potential informanus.

or other person being contacted-in connection with official business

who 1s charged with a violetion of law. Any expenditures of this

nature will not be reimbursed from Government lunds.

NW 68262-Đoeld:92989707-Page-78-

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Supervision -

(N) SECURITY INEORMANTS AND SOURCES - RECEIPT OF UNEMPLOYMENT'

BENEFITS - Instances have arisen in the past whereby security

informants have temporarily lost their jobs with private.

Industry due to strikes, economic conditions or similar cir-.:

cumstances. As a result they become eligible for unemployment:

compensation.

Where unemployment regulations require

listing

of all sources of income as a prerequisite for obtaining un-

employment compensation and security Informants who at the

time are being paid by the Bureau for services rendered fail

to comply, the situation is potentially embarrassing. The

Bureau cannot be placed in the position of condoning

a.v10-

ration of the state law on the part of any informant or source.

In order to resolve these situations as they occur, It 28

is. 14.

•felt the lield should take the following action:

(1)

A designated Special Agent after acquainting him-

self with unemployment compensation laws should effect

appropriate liaison with responsible state official at

134-00-

TOT RECORDED

iT DiAR %A1959

353°

6 MAR 3

1959

NW 68262 Docld:32989707 Page 79

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PAYMENTS ON SAC AUTHORITY

In specific instances in which it is necessary and ex-

pedient to expend

money to obtain information concerning maiters

or persons under investigation which is not otherwise obtainable

or to advance expense money to enable an individual to obtain such

information, sAC may now approve such payments to a single individual

of amounts up to $200 and totaling not more than $200 on a c.o.d.

basis regardless of the number of payments.

This applies only to

individuals who are not being regularly paid for services or expenses

on Bureau authorization, An individual who is paid on SAC authoriüy

should not be described in correspondence as an informant or source

who is being paid on a "regular basis" or on

"Bureau authorization."

NW 68262 Docld:32989707 Page 80

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(B) SECURITY INFORMANTS - RACIAL INFORMANTS - CRIMINAL

INFORMANTS - CONTROLS EXERCISED OVER PAYMENTS TO BUREAU

INFORMANTS - You are reminded of the need to closely follow matters

involving payments to informants to insure that the Bureau is getting full

value for money expended and that the record shows complete justification

for all payments made.

Requests for authority to pay informants must be supported.

by a summary of the information previously furnished in sufficient detail

to allow an intelligent analysis at the Bureau. The communication should

also show anticipated future coverage informant will provide and an

appraisal of the informant's value. You should also outline the nature of

the expenses incurred by the informant for which payment is being

requested. Payments for services must be made on a strictly c.o.d.

basis, and parments for expenses can only cover expenses actually -

incurred by the informant in obtaining infermation for the Bureau.

The present Bureau system regarding the authorization

of payments to informants affords close supervisory control in the field

and in the Sidi ul Gurermelt. i expeci supervisory and investigative

personnel to fully comply with Bureau regulations in these matters.

file.

NW 68262 Docld:32989707 Page 81

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10.207

112-2..

Tristat

(H) RACIAL INFORMANTS - RACIAL MATTERS -- Recently there

were held at the Seat of Government specialized conferences concerning fu:

militant black nationalist investigations and racial informant matters.

These conferences were attended by representatives from key field

offices handling the major portion of the Bureau's work in this field.

Alrea

Life:

The conferees were unanimous in their observation that

money is the primary motivating force in developing racial informants.

In view of this, they recommended that each Special Agent in Charge be

given authority to expend up to $400 in the development of racial

informants instead of the $200 the majority of Special Agents in Charge

• may now expend on their own authority.

I concur with this recommendation of the conferees and

effective March 15, 1968, the Special Agents in Charge of all field

divisions are authorized to expend the sum of $400 in the development

of racial informants. In this connection, you are reminded that money

expended for informant development must be on a c.o.d. basis and full

value must be received in proportion to the amount of money expended.

Appropriate Manual change will be forthcoming.

3/12/68

SAC LETTER 68-16

Director

=7.

•

NW 68262 Docld:32989707 Page 82

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(D) SECURITY INFORMANTS AND SOURCES - PAYMENTS -- As you

are aware, all security informants and sources receiving compensation

from the Bureau are paid on the basis of the value of information

furnished, services rendered and incurred expenses. Recently, it has

been noted that some informants and sources have been paid consistently

the same amount each month with no variation in payments during

periods when the informants or sources were less productive, which

leads to the illogical implication that information furnished or expenses

incurred or both seldom, if ever, vary. • This practice must be

discontinued. Your informants and sources must understand they are

independent contractors remunerated on a C.O. D. basis, and they must

never be led to believe they are recipients of a fixed salary..

This matter will continue to receive careful consideration

at the Seat of Government and you will be held accountable to insure

that payments are for value received and no fixed patterns continue to

develop. These instructions should be called to the attention of all

Special Agents in your office handling security informants and

sources.

6-11-68

SAC LETTER 68-34

NW 68262 Docld:32989707 Page 83

- 2

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(B) SECURITY INFORMANTS - SUBMISSION OF JUSTIFICATION

LETTERS-- Effective immediately justification letters for security

informants should be submitted each six months instead of each four

months as was previously required. Current authorized payments for

four months should be considered extended lo six months from the

effective date. Under item four, requiring a "summary of information

furnished and/or services rendered during pertinent period, " you

should henceforth include a brief statement as to what coverage or

information furnished is available only from that source. In the event

there is none, a specific statement to that effect should be set out..

As I have previously emphasized, it is the responsibility

of each Special Agent in Charge to insure all expenditures for information

are on a c.o.d. basis commensurate with the value of the information.

Excessive coverage of routine matters resulting in unvarranted

expenditures for the same information must not be approved. Good

judgment must be exercised and, where possible and warranted, efforts

of established informants must be directed into areas where increased

coverage is needed, such as the New left and other radical subversive

groups. You must not be complacent with mere numbers but take

positive steps to insure your coverage of subversive groups is suf-

ticiently flexible to adequately meet the Bureau's responsibilities in this

constantly changing field.

Appropriate manual changes will follow.

Very truly yours,

John Edgar Hoover

Director

8/20/68

SAC LETTER 68-47

2

-NW 68262- Docld:32989707 Page 84

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(F) RACIAL INFORMANTS - SUBMISSION OF JUSTIFICATION

LETTERS - You were recently advised that justification letters for

• security informants should be submitted every six months instead of

every four months. Effective immediately justification letters for

. racial informants should be submitted every six.months as in the case

of security informants. Currently authorized payments for four months

or less will continue in eifect until the expiration date thereof.

Although the period during which letters are to be submitted

has been extended as a streamlining measure, your responsibility to

maintain a tight control of payments and to make certain that informants

will make suitable progress is in no way minimized.

...

пенить

9/10/68

SAC LETTER 68-52

inster.

NW 68262 Docld:32989707 Page 85

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(B) TOP ECHELON CRIMINAL INFORMANT PROGRAM - CRIMINAL

INFORMANT PROGRAM -- Section 108 J, 2, of the Manual of

Instructions provider that payments on a C.O.D. basis to informants

in the criminal fied may be made to the point where such payments

aggregate $200. This authority is hereby increased to $400.

Keep in mind this instruction in no way lessens your

responsibility to insure money expended for criminal informant

development is on a C.O.D. basis and that full value is received for

all funds disbursed. You should thoroughly scrutinize every request

to pay criminal sources and make certain all payments are completely

justified.

Your expenditures to informants will continue to be the

subject of careful examination by the Bureau and will be reviewed at

the time your office is inspected. Appropriate manual changes forth-

coming.

2/25/69

SAC LETTER 69-14

NW 68262 Docld:32989707 Page 86

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## Page 87

LAK

Then 1: 21-1166676

BeLoach 3-26-6942342 sel

(B) CRIMINAL INFORMANT PROGRAM -- It is incumbent upon each

SaC to insure that all letters to the Bureau requesting authorily to

make payments to criminal informants clearly reilect the value of

information or service received that will fully justify any payments..

Recently, the Bureau has noted too many instances where the

value of informant's information has not been adequately set forth

causing additional correspondence. between the Bureau and the field.

• You must closely examine all future requests emanating from

your office to insure that adequate justification is provided the Bureau

in each and every instance.

4/1/69

SAC LETTER 69-21

'- 2-

NW 68262 Docld:32989707 Page 87.

388854144

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(B) SECUPITY INFORMIANTS -- Section 107 N, 2, of the Manual of

Instructions authorizes an SAC to make payments up to $200 to security

informants on a c.o.d. basis. Effective immediately, this authority is

increased to $400 in order to be uniform with the amounts availabie in

criminal and racial informant cases.

You are reminded that this increased authority in no way

lessens your responsibility to insure that payments are on a c.o. d.

basis and full value is received.

Appropriate manual and handbook changes are forthcoming.

Very truly yours,

John Edgar Hoover

Director

4/29/69

SAC LETTER 69-26

NW 68262 Docld:32989707 Page 88

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## Page 89

::

(B)' AUTOMOTIVE EQUIPMENI USEL IN SURVEILLANCES - YOU drE

reminded of the necessity that automotive equipment used in surveillances

be sufficiently varied as to minimize the danger that persons under

surveillances will recognize it as "policemen's equipment. " A limited

amount of special surveillance equipment is located in the various offices.

Efforts will be made in the future to augment this equipment. Until

...procurement of sufficiently varied automotive equipment can be chiained.

you are authorized lo make appropriate use of rental cauloment where

necessars: however. it is your responsibility to see that such rental

equipment is compietcir justified. Whenever such use will be extensive

and the cost is estimated to exceed $100. brior Bureau authority must be

obtained and may be obtained on an expedite basis. You are reminded oi

the importance of maintaining special surveillance vehicles and equipment

in a secure manner to insure none of our surveillances are in any way

jeopardized. Existing regulations require that all radio-equipped

surveillance trucks be provided separate garage and storage treatment.

The desirability of maintaining other surveillance automotive equipment

separately from our normal equipment should be carefully evaluated.

Where circumstances dictate, such equipment should be provided the

same separate lacilities as is now required of radio-equipped surveillance

trucks. Appropriate manual changes concerning the rental of surveillance

equipment will be forthcoming.

Areditors Instinks

• (Security page attached)

7-11-72

MEMORANDUM 11-72

NW 68262 Docld:32989707 Page 89

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## Page 90

2/74/73

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806 17 168 8

J00:22"°

-NW 68262-Đocld:32989707-Page 90

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## Page 91

Moted is Allony

te:

MCCEACY TO C0220И2 1г200 Лраг0д8іS

Tho magnas of do chope-otton chrages 3s 10%

to leasen

accontalality for sposopriate action in accli

those areas, but to abadt the doescion arccoss to tig

who shonad be in the asse

LOSAtiOn tO Date ca

tie facts

at hand. . Cho

Meadomators and

the respons

bandüy son acrioning and audacing the practicso in these

Nanual chongos forlor.

10'23:

To above suggestion vas containd inia memorandua

of Assarind Direcios Cleveland

iota. felt captsoned

"Ougenisod Crimo Program" dates

€/13/32, 222 WaS

lic. Cany in his memorsadus dated 8/3/12.

marany, appeored

changes

being paupared.

NW 68262-Docld:32989707-Page 91-:

?.

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## Page 92

Please note Jeons J. and 2. This

Confidential Souce has received do prior mayents.

These wgmeits.cover expenses incurred und arc

charged arainst the authority granted by Buairlal

of 8/11/12.

Can we charge these payments against

the 18/14/2 airiel?.

Yes

Can expenses incurred by an informant thile

obtaining inforsation be charged against the

8/11/72 airte??

Ycs .

No

Can payments for services rendered by ar!

informant be charged against. tie 8/11/72 airtel?

Yes

BD

* ;

NW 68262_ Docld:32989707 Page 92

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## Page 93

pili

Pissess

(C) SECURITY AND EXTREMIST INFORMANTS - PAYMENTS UNDER

SAC AUTHORITY -- Effective immediately all newly developed security

and extremist informants are to be paid under SAC authority for the

first six months. If additional funds under SAC authority are necessary

during this period, such request must be accompanied by a complete

• detailed justification of past expenditures. Should circumstances

require it such as the rapid development of an extremely productive

- informant the above instructions will not preclude a request for Bureau-

approved regular payments prior to the expiration of six months provided

-it is fully justified.

:

Manual and Handbook changes follow.

I. Patrick Gray, Il

Acting Director

• 8/29/72:

MEMORANDUM 18-72

=3=

NW 68262 Docld:32989707 Page 93

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## Page 94

Danie

of engile

(B) INFORMANTS AND SOURCES - PAYMENTS -- As you are aware

informants and sources receiving compensation from the Bureau are

reimbursed on the basis of the value of the information reported,

services performed and expenses incurred. An increasing tendency

has been observed in field submissions to request special payments or

justify regular payments for informants or sources seemingly based

- on personal needs ci the informant as distinct from the value of infor-

mation furnished and legitimate and related expenses incurred. The

personal needs of an informant, such as repair of a vehicle, illness

or other pressing necessity for funds, do not meet the basic criteria

of information furnished or related expenses. Informants should not

be iniluenced to believe we.will pay for such personal needs. The

basic concept that the informant is selling information of value on a

c.o.d. basis, much as an independent contractor, and is not an

employee must be adhered to and understood by contacting Agents and

the informants.

This does not, however, preclude use of imagination and in-

iúräuoi when a sourca of considerable potential value needs financial

inducement to engage in gathering of information under conditions which

will take time to reach fruition and may involve considerable risk and

hardship. In such instances you should fully develop the facts and

present them to FBIHQ for approval prior to making any commitment.

This matter will continue to receive careful attention at FBIHQ

and you will be held accountable.

to insure that payments are for value

received. These instructions should be called to the attention of all

Special Agents in your office handling informants and sources..

• 10/10/72

MEMORAND UM 25-72

- 2

• .

- NW/-68262-Đocld:32989707-Page 94

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## Page 95

5015706

OPTIONAL POtA NO, 10

H.Y 19S9 EDIO

Сл сен. XRG. N0. 2?

UNITED STATES

ERNMENT®

Memorandum

1s. Felt -

Mi. Baker==

M:. Callahan -

Hi. Cleveland

Mr. Conrad

B4s. Colbardi -

TO

: * Mr. Felt

DATE: June 7: 1973

Mr. Jenkins

hir. Marshall .

Nir. Milles, E.S..

FROM

.: N. P. Callanan

Kow

bir. Soyars -

Hi. Thompso: =

X'r. Falters

Tele. Room

Sr. Baise

SUBJECT: CONFIDENTIAL EXPENDITURES

Mr. Bair?s

hi, Bonets

Me. Herington -

Mir. Conzis -

For the past several months, informational and file

Jr. Sintz

Mr. Eardiey .

copies of memoranda authorizing payments to individual informants

Jes. H0gn

and sources have been routed to the Administrative Division for information.

order to exercise adequate control of the overall expenditures of the Bureau, i

is necessary that the Administrative Division have an opportunity to review

confidential expenditures before final approval. This would include new

authorizations of payments to informants or sources; authorizations to increas

payments to regularly paid informants or sources; lump'sum or bonus paymer:

• to informants or sources; and any other unusual or special confidential

expenditures.

During the first nine months of fiscal year 1973, confidential

expenditures incrosaed a total ef $286, 475, or 2.3%, when compared to the en

. period in fiscal year 1972. Like all other expenditures, confidential espenditt

must be closely followed and controlled.

Since the Computer Systems Division is responsible for the recorr

keeping of confidential expenditures, copies of all authorizations for such

expenditures should continue to be sent to that Division but informational copi

of authorization memoranda for the Administrative Division are not necessary

RECOMMENDATION:

That proposed confidential expenditures for new payments to

informants or sources; increased payments to regularly paid informants or

sources; lump sum or bonus payments to informants or sources and any other

unusual or special payments be routed through the Administrative Division for

review before final approval..

1 - Mr. Cleveland

1 - Mr. Gebhardt

1 - Mr.

Marshall

1 - Mi.

E. S. Miller

ID- Mr. Soyars

1 - Mr. Walters

1 - Mr. Jackson

LCG:LaY

NW 68262 Docld: 32989707/Page 95

IP

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## Page 96

7/3/74

Tai SAC, Albany

FOE: DIROCIOT, EDI

SACRIACS OF BAC AURNORITY

TO TAT TOT EUBLOR 12220N2S

FRUX 3400 TO S600

Tor

xar10i3,

follaains tho orcanditure ca the initial esC

authoritys

aaould be suondiiad in incrorents ex 6303

InciDad of 5630.

Tain dog not thier the ¿nadiaà 5000 SAC

enthority do cans to scalon Shittant Goa Borrot And

apOlioS Only to thoSo inisabiG boing dovolozod undor tho

Top Echelon Crinizes IDioIanE PrOUTE.

It rosadas incussent upos each fAC to IuJ1y

justify all exporatures tado to tap ccieloa inionants or

CE5G0ZO

NW 68262 Docld:32989707 Page 96

ani

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## Page 97

POLICY

CONFIDENTIAL FUND ACCOUNTING PROCEDURES

• AND

HANDLING OF BLUE SLIPS AND VOUCHERS

107mza =

NW 68262 Docld:32989707 Page 97

62-446464-22

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## Page 98

271- 10001

: NW 68262 Docld:32989707. Page 98

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## Page 99

barch 23,

1940

LENCRANDULE FOR

PERSONAL AND CCUFIDENTIAL

Dear Sir:

In connection with expenditures of a confidential nature

for mich reimbursement is claimed by blue slip, youaro advised that

•such experditures must be liniteà strictly to investigative cases

of major importance imerein monies may be said to confidential

informants or for confidential purposes, reimbursement for which

could not be claired by regular personal service voucher without

jeopardizing the successiul comuletion of the investigation.

lou are,

therefore, advised that it will not be neces-

sary to continue

the retention of copies of confidential blue

slips in the rarious field division files.

The present field

blue slip files should be foriarded io the Washington head-

quarters of the jureau under personal and confidential cover.

Very truly yours,

John Edgar Hoover

Director

.

NW 68262 Docld:32989707 Page 99

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## Page 100

August 20, 1941

SAC

Dear Sir:

It has been noted in connection with confidential

disburserents being made by special agents for which rein-

bursement is claired by blue slip that in many instances the

receip is executed in the name

of an agent or person other

than the agent claiming reirbarsement.

It is desired that inenever possible the receipt

be rade in the name of the agent iho pays the bill and inho

will claim reincursement. It is understocà that in all

instances this will noù se practical, for instance, if Agent

Smith rakes arrangements for the rental of an apartrent for

surveillance purposes and he is laver transferred from this

assignrent the bill ordinarily will be continued in his name and

paid by another agent.

In instances such as this the agent

who rays the bill should certify on the receipt that he per-

sonally paid same and that he is claiming reimburserent there-

the receipt is made out in the aame of an alias

being used by the agent this saci should be explained in the

blue slip.

In those instances where payment is made to an

intorant for services rendered over a definite period the

date of the beginning ard ending of the period shouta be

indicated on the blue slip.

This ratter should be brought to the attention of

all special agents under your supervision and the blue slips

sibmitted snould be carefully checked by you to see that they

conforn irith the above instructions.

Close attention to this

matter inll coviate the necessity for returning expense accounts

for correction.

Very truly yours,

John Edgar Hoover

Director

NW 68262 Docld:32989707 Page 100

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## Page 101

JOHN EDGAR HOOVER

DIRECTOR

Frucral Burrau at Inurstigation

United Stairs Arpartment of Justice

Washington, B. C.

June 12, 1943

PERSONAL AND CONFIDENTI:

•

NO. 249

SERIES 1943

SAC ALBANY

ATLANTA

BALTIMORE

BIRNINCRAW

BOSTON

BUFFALO

BUTTE

CHARLOTTE

CHICAGO

CINCIRNATI

CLEVELAND

DALLAS

DENVER

DES KOINES

DETROIT

EL. PASO

GRAND RAPIDS

HONOLULU

HOUSTON

HUNTINGTON

INDIAMAFOLIS

JACKSON

JUNEAU

KANSAS CITY

RiOXVILLE

LITTLE ROCK

LOS ANGELES

LOUISVILLE

WEMPHIS

PROVIDEYCE

RICHMOND

MILWAUKEE

ST. LOUIS

NEWARK

ST. PAUL

NEW HAVEN

SALT LAKE CITY

NEM ORLEANS

SAN ANTONIO

NEW YORK

SAN DIECO

NORFOLK

SAN FRANCISCO

ORLAROMA CITY . SAN JUAN

OMAHA

SAVANNAH

PHILADZEPHIA

SEATTLE

PHOENIX

SIOUX FALLS

PITTSBURGH

SPRINGFIELD

PORTLAND

WASHINGTON, D. C.

QUANTICO

The Bureau has noted an increasing trend on the part of Special

Agento in Charge of auproving confidericial expenditures which may at some

time be subject to question.

The Sureau refers particularly to those ei-

penditures nade by Special Agent personnel in the field service for enter-

tainment of confidential infordants.

It has been necessary for the. Bureau in the past to refuse to re-

imburse certain Agonts for expenditures made when it appeared that the ex-

penditures rade were out of line in so far as necessity for the securing..

of the

information was concerned. The Bureau has further noted a tendency

growing up in the field for Special Agents in Charge to approve conridential

expenditures for 10$ and l5$ and other very minor amounts which probably

should be subjest io further scrutiny by the Special Agent in Charge.

The Bureau must not at any time routinely consider confidential

expenditüres but sust insist that each Special Agent in Charge parscnally

review and approve such expenditures as are made by employees under his

It is understood that with the type of internal security

work presently ting performed by a great many Special Agents, certain

necessary. expenditures must le made in connection with physical surveil-

lances and like matters; horever, it shouid be understood that & Special

Agent, in so far as food and entertainment are concerned, is under certain

RUDEFENSexpense at the present time,

even though he is not assigned to conridential

survaillances and when any charge is mada for reimbursement for experdiulire.:

BUymade by him in connection with the successiul handling of a surveillance

usure mauver, only thet portion of the charge which would be over and above his

moros regular living expenses should be submittea.

expenditures as follows:

For your incormation, the super must certito so all considere

NW 68262 Docld:32989707 Page 101

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## Page 102

-2

"The confidantial inforaation ites as above was paid in the

interest of the Governient service and that no other amount

has been paid lafore for the sage purpose, the amount repre-

senting expenditures incurred in naking secret investigations

of alleged plots anà conspiracies against the United States

Governent, and that the detailed information has been sub-

mitted and is now and will be held in the confidential files

of the Federal Bureau of Investigation and will be open to

inspection for any purpose by the representative of the Corp-

troller General at any time he say desire."

The Bureau will continue its present policy of returning to any

Agent without reimcursesent any confidential expenditure which does not ap-

pear to be fully and thoroughly justified. The Bureau must, of course, in-

gist on

each Special Agent in Charge naking it his personal responsibility:

without delezation to other sucordinate employees the review of confidential

expenditures:

to definitely ascartain that the expenditure has been proger

and that the expenditure of the funds in question has been of material bene-

fit and advantage to the Governnent.

Very truly yours,

:

John Edgar Hoover

Director

-

NW 68262 Docld:32989707• Page 102

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## Page 103

IN REPLY, PLEASE REFER TO

FILENO.

Federal Durcau of Inuestigation

Minited States Arparintent of Sustice

Alashingtan 25, D. C.

July 8, 1945

KeY!

PERSONAL AND CONFIDENTIA

NO. 280

SERIES 1945

SAC

ALBANY

DES KOINES

MEMPHIS

RICHMOND

MACHORAGE

MEAMI

ST. LOUIS.

ATLANTA

35 2A50

MILWAUKEE

ST. PAUL

BALTIVORE • GRAND RAPIDS

REMARK

SALT LAXE CITY

BIEN. INGHAM

FORCEULU

NEX HAVEN

SAN ANTONIO

BOSTON

HOUSTON

NEW ORLEANS

SAN DIEGO

BUFFALO

HUNTINGTON

HEY YORK

SAN FRANCISCO

BUTTE

INDIAMAPOLIS

NORFOLK

SAN JUAN

CHAPLOTTE

JACASON

OKLAHOMA CITY

SAVANNAHI

:

CHICAGO

KANSAS CITY

OMARA

SEATTLE

CINCINNATI

KNCKVILLE

PHILADELPHIA

SIOUX FALLS

CLEVELAND

LITTLE ROCK

FROENIX.

SPREHGSIELD

DALLAS

LOS ANGELES

DENVER

LOUISVILLE

PITTSBURCH

SYRACUSE

ECATLANE

WASSENGROL, D. C.

PROVIDENCE

QUANTICO

The Bureau is particularly desirous at the present time

.of again bringing to your attention the absolute necessity for the

continued careful handling of expenditures from the confidential

lund and the subaission of monthly reports in connection therewith.

You are aware, of course, that under existing Bureau regu-

lations it is absolutely essential

that an appropriate statement be

submitted at the end of each month reflecting the condition of the

confidential furd in each field office, including therein lus status

with respect to the casn balance on hand, plus disbursements which

have been made during the current accounting period.

Many of the field offices have in the past failed to sub-.

mit such sonthly statements promptly, as a consequence of which it

is becoming increasingly difficult to properly audit the Bureau's

records in connection therewith or to otherwise maintain an accurate

record upon the basis of which the accountability of each Special

Agent

in Charge may be definitely determined.

In this connection, a review of blue slip items received at

the Bureau over a period of time reflects an increasing number of pay-

ments in the nature of so-called "advances" to confidential inform-

ants.

The same is true of "deposits" with electric light companies

and other utilities, which deposits usually range in amounts from S10

to 920. At the time the monthly statement is subnitted by the field

office involved, such

statements invariably fail to indicato that the

experditures in question were "advances" or "deposits," the amounts

of which are to be subsequently refunded and returned. In other in-

stances-they are improperly recorded in such a manner as to preclude

NW 68262 Docld:32989707 Page 103

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## Page 104

=2-

an accurate accounting on the part of the Sureau

respect thereto.

For your guidance in the preparation o future monthly

reports concerning confidential fund expenditures, there is being

enclosed herewith a sample form which outlines briefly and succinctly

the menner in mhich discursements, zavances, refunds; or purchases

are to be listed. All subsequent monthly statements prepared by

your office should be submittea strictly in accordance therewith.

It is further noted that in a great number of cases

Special Agents have not been submitting receipts to justify the

odicals subscribed to by the year have been observed with no re-

ceipts therefor having been secured. It is believed that such

items, wherever practicable, should be

paid for by the issuance of :

a money order and the money order receipt attached.

In addition, the failure to obtain receipts has. been par-

ticularly prevalenü in respect to payments made for services ren-

dared by confidential informants, for expenses incident to the rental

of rooms, and the obtaining of keys, locks, et cetera, and other

items of

a related nature where a receipt could, reasonably be secured.

Although the bureau is necessarily avare of the fact that

receipts cannot be secured in each and every instance, due to exi-

gencies peculiar to certain types of investigative activities,

nevertheless, it must insist that such receipts be obtained for

confidential expenditures wnerever it is possible and otherwise

practicable to do so. Hereaîter, confidential items will be sus-

pended from the accounts in question unless the expenditures in-

volved are properly supported by the necessary receipts.

Likewise, the Bureau has noted with considerable concern

increased purchases in the form of furniture, beading, clothing, and .

related items utilized in the conduct of various plants and other

confidential investigative activities. This is of particular sig-

nificance in that such items are being paid for through the submis

sion of blue slips, and the non-expendable items are not being taken

up properly on the field office inventories.

Accordingly, it is

desired that you formard to the Bureau in the near fature a detailed

report indicating the type and quantity of such equipment purchased

and presently in use in order that same may be properly inventoried

on the sureau's records.

Such an inventory should, of course, be

maintained simultaneously by each of the respective field offices

having control, custody, or possession of such equipment. With

reference to future purchases of this kind, the field offices will

be held strictly accountable for the submission to the Bureau of

appropriate nor-expendable receiving slips.

such slips should indi

cate thai the iten vas purchased through the submission of blue

slips.

The Bureau will maintain a check on blue slips submitted

and suspensions frow the vouchars will be made in those instances

where-field offices-rail-to-submit non-expendable receiving slips.-

NW 68262 Docld:32989707 Page 104

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## Page 105

Accordingly,

desired, that the non-expend

receiving slips.

• covering purch

es

of furniture, bedding, and

her equipment by

blue slips, be attached to the voucher when it is subaitted for

payment.

It is desired that you give the matters outlined herein

your immediate personal autention and supervision: It is expected

that

in the future there will be

strict compliance with the fore-

going instructions in order that the correction of these delinquen-

cies may be logically concluded with a minimum of delay.

• Very truly yours,

3.

дова

John Edgar Hoover

Director

Enclosure

: 3

- HM/ 68262 Docld:32989707 Page 105

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## Page 106

• APRIL 30, 1943

Total amount to be accounted for

Balance on hand April 1, 1943

$2,500.00

$1,200.00

DETAILS

Check No.

].

Dated

Description

3

5

6

4-1-45 Salary to confidential informant_

froz larch 25 to March 31, 1945, incl.

4-12-45 Expenses for confidential informant_

for month of March

4-13-45 Payment of rent, 1596 Broadway, April Ist

to 30th, inc1., File #100-3555

4-23-45 Expense check received from Bureau

deposited

4-24-43 Payment New York Telephone Company bill

dated 3-21-43, address 17% Lexington

Avenue

4-26-43 Aâvance to confidential informant N-25.

This anount to be returned to Bureau

4-27-45 Pefund by the New York Telephone

Company, 1776 Lexington Avenue

4-28-45 Payment to the Hub Furniture Company for

furniture for use in confidential plant

at 1776 Lexington Avenue. Detailed receipt,

attached

1,300.00

5.83

45.00

38.20

60.00

16.55

250.00

155.00

4-30-43 Payment of rental of funiture for one

month, 2845 Lexington Avenue, File #65-99

50.00

$2,505.83

$ 614.75

Balance on hand April 30, 1943

1,891.08

$2,505.83

In other words, the check number of each disbursement should be listea

together with the cave and a brief explanation of what the expenditure was for and

the amount and the reconciliation of the balance at the beginning of the month and

All expenditures, advances, refunds or purchases of any

kind should be listed in detail briefly, as shown above.

NWW. 68262 Docld:32989707 Page 106

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## Page 107

=-

(0) BLUE SLIPS. -- In the future all Blue Slips reclaining amounts for confiden-

tial expenditures which have been previously authorised by the Bureau must set

forth the date of the bureau letter under wnich such authority was granted.

-...

! .'

3-29-44

BEREAU BULLETIN 30. 21

Series 1944

NW 68262 Docld:32989707 Page 107

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## Page 108

PaRVICTORY

377

Echeral Bureau of Investica

Anita States Bruartmeni at Justice

Mashington 25, D. C.

January 12, 1945

• *.

INREPLY, PLEASE REFER TO

FILENO..

NO. 11

SERIES 1945

MB40 FOR KR. H0012R

TOLSON

TACH, E. A.

CLEGG

COFFEY

CONNELLEY

CLAVIN

LADD

HICHOLS

BOSEN

TRACY

ACERS

ALDEN

BAUGICAN

CALBAN

•CARLSON

CARSON

CARTURICHT

CORRAD

CUNNENGHAM

DOWNING

EGAN

FITCH

GURNEA

HAREO

PÁRSONS

HENDON

PENNIRCTON

HIRCE

DRAENALT

JONES

RENNEBERGER

LAUGHLIN, R. H, SOCEES

LCHG

SCEL32KE3

MARTIN

SERICKLAND

TAsk, Q.

WELCH

MOAR

NULFORD

NAUGSTEN

REASE

RE: CONFIDENTIAL FUND

The Sureau at this time mishes to again invite your sitention to tine

absoluto necessity of maintaining in proper acccunting order the confiaontial

fund racoras of your Division.

The Special Agent in Charge shoula continue

to carefülly supervise the handling of this fund and the recoros pertaining

• thereto so that an audit can be readily made and receipts and alecursements

accounted for. Each Special Agent in Charge should abide by the following

procedure:

1. Maintain the checkbook on a current, acourate basis; so that

it will always reflect the current balance in the fund..

2. The bank statements and cancelled checks shoulú de retained

and appropriately filed in a

• confidential caministrative file

(66 classification,.

5. Copies of blue slips shall not be maintained in the field.

The monthly report, properly prepared, will serve as an adequate.

record of the transactions in the funa.

4. The monthly bank statement should be reconciled with

the account record in the checkbook.

NW 68262 Docld:32989707 Page 108

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## Page 109

• 5. Receip

and disoursements porteining

to

be, cleared through the fund bank account.

• Very truly yours,

the fund are

John Edgar Hoover

Director

NW 68262 Docld:32989707 Page 109

2 -

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## Page 110

2-20-45

SAC LETTER NO.

22

Series 1945

(F) CONFIDENTIAL EXPENDITURES -- With reference to confidential experditures,

as you have been advised in the past, it is aosolutely essential that such ex-

penditures be held to an absolute minimum.

The Bureau will not approve any

confidential expenditure made by any Special Agent of the Bureau unless such

an expenditure was made for the

purpose of securing information relating to

matters under the investigative jurisdiction of the Bureau, it not being pos-

sible to secure such information in any other manner.

In making such expenditures, all Special Agents must bear in mind

that repayment san be rade only in the event the certification can lu inião vicu

• the payment for such confidential information was made in the interest of the

Government Service, and that the amount paid represented expenditures incurred

in making corfidential investigations of alleged plots or conspiracies against

the United States Government or for the purpose of securing confidential in-

formation pertaining to violations of the federal Statutes which could not

otherwise have been secured. The infornation contained on the confidential

item sucmitted by the Agent in question should be such that it will be readily

ascertainable at the Bureau that such expenditure was essential and necessary:

• an xx=.

-.=

NW 68262 Docld:32989707 Page 110

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## Page 111

•SONAL ASCENTION

SAC LETTEF (no mimber)

February 17, 1948

RE: CO ETEENTIAL FUID

It is desired thet effective irmediately arrangerents be mede with

the benks handlirg your corridertial fund whereby the Assistent Speciei

Agert in Charge con write checks sgainst the fund in the benk.

It is selt that this as necessary in order that sacuia tre special

Agent in Charge be anay from the headquarters city, no delay will be

experierced in maling payments from the conficential fund.

Very truly yours,

John Eager Hoover

Director

NW 68262 Docld:32989707 Page 111

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## Page 112

IN REPLY, PLEASE REFER TO

•FILE NO.

BENO FOR MR. HOOVER

TOLSON

CLAGG

CONNELLEY

GLAVIN

HARBO

LADD

NICHOLS

ROSEN

TRACY

BAUMGARDNER

BOSWELL

United States Department of Justice

Feusral Burrau of Inurstigation

Washington 2ã, I. C.

• March 23, 1949

CALLAHAN

CALLAN

CARLSON

CARTWRIGHT

CONRAD

DOWNING

EDWARDS, H. I.

EGAN

FEENEY

FLETCHER, H. B.

GURNEA

HINCE

JONES, M. A.

KEAY

LAUGHLIN

LEONARD

LONG

McCABE, E. J.

McCAE, H. H.

McGUIRE

MCINTIRE

• MOBLEY

MOHR

NANNA

NAUCHTEN

NEASE

PARSONS

PENNINGTON

RENNEBERGER

ROGERS

SIZ00

TAMM, Q. :

WAIKART

FALL

WHITSON

AND SUPERVISORS

KE:

FROM CONFIDERIAL, BURD

It has been noted that various officials and supervisors are granting.

authority to the fiela offices to make expenditures iron the field office

confidential fund. When Bureau authority has been granted for an experditure

of this nature, ine field office is required to give such auchorization on the

confidential item subnitted to reclaim the expenditure.

Numerous vouchers are being received by the Bureau wherein a reclaim is.

made for authorized expendijures. In checking the voucher against the file main-

tained in the Administrative Division, it is noted that in many instances there

will be no recora of the expenditure having been euthorized. •

In the future when authorization is granted for expenditures of this

nature, the Administrative Division must be auvised.

Is the field office is

granted authority by letter, a copy of the letter must be rade for the Chief Clerk's

Office, Room 5517.

If authority is granted telephonically, it will be necessary

that the official or supervisor granting the authority notify the Administrative

Division by remorandim, giving the name of the verson to whom payment is authorized

and the rielà office involvea.

The above instructions are to be placed into effect immediately in order

to preclude the delay which is now being experierced in determining nether the

expenditures claimed by the various offices "ere properly authorized.

Very truly yours,

•a" John Edger Hoover...

Director

• NW 68262 Docld:32989707 Page 112

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## Page 113

DATED APRiL 4, 1950

PERSONAL ATTENTION

STRICTLY CONTIDERiTIAT.

SAC LETTER NO. 23

Series 1950

(A) INFORVANIS - CONFIDENTIAL FUND -- A conthly statement is presently prepared

by you for the bureau reflecting a sumary of the receipts and disbursements fron

the confidential fund in your office.

It 1s desired that in the future the following Information conceming

live Informents be added at the end of the monthly Statement of Receipts and Dis-

burserents iron the confidential fund in your office: (1) Total raymenta:to

cribinal informents during ronth; (2) Total paycents to national defense infortante

during sonth; (3) I,tal payments to atonic energy inforrants during month; (4)

Total payments to all types oi inforants during month.

In the event you do not heve a confidential fund in your office the

requested Information shoula be fumished to the Bureau by separate communication,

ceptions, as above, no later then the toth of the fallowing roath.

"...

NW 68262 Docld:32989707 Page 113

we.......

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March 27, 1951

PERSONAL MID COME TORTILL

NO NUBER

SAC LETTER

RE:

ACTIVITIES OF THIS

CONFICENIIAL FUND

The Bureau is destrous at the present time of bringing to your attention

the absolute necessity for the careful handling of expenditures from the Con-

fidential Furd and the submiesion oi tonthly roports is conniculun sheriridi.

You are aware that under existing Bureau regulations it is absolutely

essential that an aypropriate staterent be submitied at the end of each month

reflecting the condition of the Confidential Funà in each field office, Including

therein its status with respect to the cash balance on hand, plus disbursements

which have been made during the current accounting period.

Many of the field offices have in the past failed to submit such

montany stateronts promptly, as a consequence of which it is becoming increasingly

difficult to properly audit the Bureau's recoras in connection therewith. As

set out in SAC Letter No. 23, dateà April 4, 1950, ell Confidential Furd reports

should be received at the Bureau no later than the 20th of the following month.

•For your guidence in the preparation of future monthly reports concern-

1ng Confidential rund exceraitures. there is enclosed a sample fom which outlines

briefly the proper mothod of preparind the report. In addition, there is enclosed

a sanple form which outlines the method which should be used to summarize tre

• payments to informanta and corfidential sources. In this regard your attention

15 directed to Section (A), SAC Letter No. 23, dated April 4, 1950, which 1s

rerised in that the Atonic Energy informants should be deleted from the report.

The surmary srould now reflect payments to Criminal and National Defense

Confidential Sources.

No NasabeR - 1951

\ NW 68262 Docld:32989707 Page 114 •

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-

It has beel

bted that in a great number of

'stances Special Agents

have not been sumitting receipts to justify the expenditures for which re-

Imbursements are being claired through blue slips. Tire Bureau 1s awere of the

fact that receipts cannot be secwed in each and every instance, due to

exigencies peculiar to certain tipes of activities, nevertheless, receipts

should be obtained wherever

possible.

In connection with the preperation of the blue slips it has been

noted that some are being precared too much in detail. In those instances where

the pament is redo to an authorized reguler said informant, the followins

Incornation is sufficient to support the clein:

I, Amount of payrent

2.

Nare and symbol number of Informant

Cass

Date of authorization letter or teletype

5. Period of payment

A sample foru reflecting the proper method for preparing a blue sliv

is attached.

The Bureau has also noted in many instances that Agents, when re-

claiming suspended blue slips, are reflecting in the voucher that the item was

suspended fron a previous voucher. It is rointed out that no reference should

be made to the previous roacher nor should the igent state that the item was

suspended unless he forwards the original Stetement of Difference with he

Toucher.

Your attention is directed to the fact that the Bureau has only a

limited amount of funds available to operate the Confidential Funds of the

feld artIstons, therelore, you should take every eliort to operate on your

present fund.

It is cointed

out that a nore frequent submission of Confidential

Fund vouchers will held to maintair a higter balance in the fund.

In the future when an office desires to establish a Confidential

Fund, It will be necessary that the office furnish the Bureau full anù 'complet

justification.

It is desired that you give the matters outlined herein your

immediate personal attention and

supervision.

Very truly yours,

John Edgar Eoover

Director

Attachments

3-27-51

NO. HUNDER

SAC LETIER

* NW 68262 Docld:32989707 Page 115

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## Page 116

APRIL 30, 1950

Total amount to be accounted for

Balance on hand April I, 1950

$2,500.00

$1, 200.00

DETAILS

Check No.

1

?

3

5

:

6

Dated

Description

4-1-50

Salary to confidential informant

fron March 25 to larch 31, 1943, incl.

4-12-50 Expenses for confidential informant_

for month of March

4-13-50. Faynent of rent, 1596 Broadway, April Ist

to 30th, inel.,. File #100-3535

4-23-50-Expense check received from Bureau

deposited

4-21-50 Parront New Yor Telephone Company bill

dated 3-21-45, address 1776 Lexington

Avenue

1,300.00

• 4-26-50 Advance to confidential informant N-29.

This one be returned to sure at to funde

4-27-50 Refund by the New York Telephone

Company, 1776 Lexington Avenue

4-28-50 Payment to the Hub Furniture. Company for

furniture for use in confidential plant

at 1776 Lexington Avenue.

Detailed receipt,

attached

5.83

4-30-50 Payment of rental of funiture for one

month, 2845 Lexington Avenue,

File #65-99

• 45.00.

38.20

60.00

16.55

250.00

155.00

?

50.00

$2,505.83

$ 614.75

Balance on hand April 30, 1950

1,891.08

$2,505.80

In other words, the check number of each disbursement should be listed

together with the date and a brief explanation of what the expenditure was for and

the amount and the coconciliation of the

balance at the beginning of the month and

at the ena of the month. All expenditures, advances, refunds or purchases of any

kind should be listed in detail briefly, as shown above.

* NW 68262 Docld:32989707 Page 116

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## Page 117

SUMARY OF PAYMENTS TO INFORMANTS

AND CONFIDENTIAL SOURCES

Confidential Informants:

Criminal

National Defense..e

100.00

25:00

Total Payments to Informants

Confidential Sources:

Criminal ......co

National Defense

$

0 ..

500.00

-10.00

Total Payments to Sources

Grand Total

$ 175.00

$ 510.00

685.00

•

a.=-

NW 68262 Docld:32989707 Page 117

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## Page 118

FD-37

ANATION OF CHARGE FOR INFORM

ON

I hereby certify that the sum of s

(Name of Office) (Date)

Placo end dato of thia certificato

• ITEM NO._

1

(Amount of Payment)

was actually

and. necessarily paid by me on

(Date o] Faiment)

Dete

(Name of Informant)

(Symbol Number)

- 195, 10

for the pur.

•pose of securing, information.

needed for official use in connection with the case of

(Name of Case)

and that the payment was made under the circumstances and for the purposes

ex-

plained belori.

BUREAU AUTHORITY:

(SHOW DATE ME AUPHORIZATION)

PERIOD OF PAZONT:

RECEIPT ATTACHED:

Approved:

• Signed

Title

Approved.

Director

Special Agent in Charge

__ Assistant Director...

NW 68262 Docld:32989707 Page 118

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(A) CONFIDENTIAL FUND -- It has been noted in che instance that a

clerical employee has been delegated authority to sign checks for

withdrawals from the Confidential Fund.

You are advised that under no circumstances should this

authority be vested in anyone other than the Special Ageni in Charge

or Assistant Special Agent in Charge.

F0/17/51

...

- ..

SAC Letter No. 104

Series 1951

NW 68262 Docld:32989707 Page 119

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## Page 120

:

PERSONAL AND CONFIDRISLAL

UNITED STATES DEPARTMEN

"ER

SAC LETTER 53-C

OF JUSTICE

FEDERAL BUREAU OF INVESTIGATION

In Reply, Please Refer 10

File No.

February. 25, 1953

• WASHINGTON 25. D.C.

MEMO FOR MR. HOOVER

CALLAHAN

JONES, M. A.

SCATTERDAY

TOLSON

CALLAN

KEAY

SIZOO

LADD

CLAITON

LAUGHLIN

STANLEY

NICHOLS

CLEVELAND

LEONARD

STEIN

BELMONT

CONRAD

MALLEY

STRONG

CLEGG

CROSBY

MASON, E. D.

TAM, Q.

CONNELLEY

DELO ACH

McGUIRE

TROTTER

GLAVIN

DONELAN, C. A.

MOHR

VAN PELT

HARBO

DOWNING

NEWBY, R. A.

VECHERY

ROSEN

EASES

PARSONS

WAIKART

TRACY

EDWARDS, E. I.

PENNINGTON

WHERRY

BAUNGARDER.

GEARTI, G.

PRICE

WICK

BOWLES

HENNRICH

• RENNEBERGER

WILLIAMS

BRANIGAN

HOOD

ROGERS

WINTERRCWD

BROWN, B. C. • HOLLOMAN

RUMANS, I. H, AND SUPERVISORS

RE: CONFIDENTIAL EXPENDITURES

In reviewing the confidential blue slip vouchers that are

being fomarded to the Bustaù for rimbarcment, it is nuieu lau

considerable increases in such expenditures are

being made in ühe

divisional service at the present time.

It 1s entirely undersüand

able wny such increases are reflected in the vouchers in question

since every possible effort is being made by the fiela to increase

its informant coverage.

The bureau wishes to point out to you, however, that it is

your personal responsibility to see

• that such expenditures are totally

justified in every instance where made.

You should insure jourself

that the Bureau is receiving full value for the funds expended by it.

It is felt thai, if this matter is givén your continuous carerul ard

personal attention, no expendisures

will be made which can in any

way be criticized by any persons at

any future date.

Very truly yours,

John Edgar Hoover

Director

NW 68262 Docld:32989707 Page 120

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## Page 121

(C.) CONFIDENTIAL FUND VOUCHERS It has been noted in a number of

instances that the receipts which support the Blue slips submitted

by the

Special Agent in Change reflect the name of a Special Agent

as the person making the payment.

Effective Immediately, you are instructed that in any in-

stance where the receipt reflects payment made by a Special Agent,

the Special Agent should also execute a receipt reflecting that he

received the money from the Special Agent in Charge for the purpose

of payment to the informant and both receipts should be attached to

the Blue Slip.

This In no way alters previous instructions to the effect

that payments made by the Special Agent from his personal funds

must be vouchered by him as a confidential luem on his Icgilar ex

pense voucher.

8/4/53

SAC LETTER NO. 53-53

...

NW 68262-Docld:32989707-Page-121-

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(E) CONFIDENTIAL FUND VOUCHERS - FBI FORM BOÖK -- Reference 1s

made to SAC Letter 53-53(C), dated August 4, 1953.

The attached

form, FD-221, has been approved lor use by Special Agents aù the time

For money is received by them from an SAC for payment to an informant.

Bosk tols

9/1/53

SAC LETTER NO. 53-62

- ..

NW.68262 Docld:32989707 Page 122

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## Page 123

7. Conficential Vouchers

(a) It has been noted that a number of vouchers

containing blue slips have been received at the

sureau interingles with owner mail.

You are instruct-

ed that under no circumstances should confidential

vouchers be intermingled wiin ocher mail.

be addressed to

"*. R. Glavin, Assistant

They should

Director,

Federal Bureau of Investigation, Washington 25, D. C.s

Aztention:

voucher Unit,

and transmitted via

registered mail with a return receipt requested.

very truly yours,

John Edgar Hoover

Director

10/12/53

BUREAU BULLETIN NO. 53-25

5

NW 68262 Docld:32989707 Page 123

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## Page 124

FILLI

DATE

Received from Spocial Agent in Charge, FBI,.

dollars, and

), which money was actually pald by ma on

centss

to

for informaiion concerning the case entitle&

'Signed:

SnAsirl Agent

(E) CONFIDENTIAL FUND VOUCHERS - FBI FORM BCOK -- Reference Is

made to SAC Lester 53-53(C), dated August 4, 1953. The attached

form, FD-221, has been approved for use by Special Agents at the time

money is received by them from an SAC for payment to an informant.

----.

Each field office should order an appropriate supply of

FD-221, A copy of the form should be added to the FBI form Book.

i----a------

NW 68262 Docld:32989707 Page 124

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## Page 125

(D) ACCOUNTING PROCEDURÉS - CONFIDENTIAL FUND - You are advised

that the Bureau is contemplating establishing a uniform accounting

procedure to be followed by all offices maintaining a Confidential

Fund. In order that a thorough stuay may be made in this connection,

It is requestea that you furnish to the Bureau, no later than

February 23, 1954, a detailed outline of the present accounting

proceure loitowed by your office in connection with the maintenance

of the Confidential Fund.

This outline should cover all. phases oi

the operation of

the fund, including the following:

1. Accounting procedure used in connection with the

checking account and any records maintained in connection therewith.

2. Procedure followed in requesting the money from the

fund for a payment to an iniormano.

3. Any documents retained in your office as receipts of

payment and recoras of payment.

4. Procedure followed in preparing monthly report and

Confidential Fund vouchers.

In addition to the above, you are requested to furnish

any suggestions for improvement of

the present procedure followed

by your office in connection with the Confidential Fund.

2/8/54

SAC LETTER NO. 54-8

5

NW 68262 Docld:32989707 Page 125

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## Page 126

UN

In Reply, Please Refer t0

File No.

PERSONAL AND CONFIDENTIAL

NO NURSEE

SAC

LETT

ED STATES DEPARTMENT

0 F

FEDERAL BUREAU OF INVESTIGATION

June 9, 1954

MASIIINGTON 25, D.C.

RE: CONFIDENTIAL FUND

ACCCUNTING PROCEDURES -

FBI FORM BOOK

After reviewing the reports of the accounting procedures

presently being followed bj the various field divisions which were

forwarded to the Bureau in response to SAC Letter 54-8, Paragraph D,

and from

a review of the suggestions submitted along with these

reports, it has been determined that a uniform procedure for handing

the operations of the Confidential Funas maintained by the various

field divisions should be established.

Effective July 1, 1954, the following accounting

procedures shall be placed

into

effect for each office maintaining

a Confidential Fund:

1. A ledger page similar to Exhibit Number One shall be

used to reflect any transactions that would affect the amount of

the fund authorized for the field division. Transactions that

wuild affect this fund are:

a. Temporary or permanent increases in the fund.

'b. Refunds of all or part of payments made to an

Informant for which the office has been reimbursed by

the Bureau.

Refunds to the Bureau of temporary increases

and refunds received from the informants in cases

similar to "b" above.

This ledger page should also reflect a rupning. balance

of the total amount to be accounted for by the field division.

This is the amount that should be reflected on the monthly report

of expenditures from the Confidential Fund as the total amount to

be accounted for.

2. i

A cash receipts and disbursements page shall be

lutilized to reflect all cash transactions which affect the total

fund. This ledger shall be in accordance with the attached sample

(Exhibit Number Two), which reflects examples of various transactions

which will affect the Fund.

This ledger should be retained Indefi-

nitely and should be used as the basis for the preparation of the

NW 68262 Docld:32989707 Page 126

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## Page 127

:..

monthly report. All columns should be ruled off at the end of the

calendar month

and the cash balance brought forward. Column Number

one should reflect all cash receipts and disbursements.

The debit

side of Column Number Two (2a) should reflect all expenditures from

the Fund except any refunds made to the Bureau. All payments made

to criminal Informants and sources should be reflected in the

column captioned "Criminal;" all payments to security inicrmants

or sources should be reflected in the column captioned "Security;"

and all payments

of the miscellaneous nature not covered by either

of the afore-mentioned categories, such as payments to telephone

reflected

credit side of Column Number Two (2b) should reflect all refunds

from payments previously made regardless of whether the previous

payment.was of a criminal, security or miscellaneous nature.

• Column Number Three should reflect all transactions with the bureau;

checks in payment of vouchers and temporary or permanent increases

should be reflected in the "Receipts" column; whereas any

refund from an informant, source or of a miscellaneous nature which •

must be returned to the Bureau because the payment has already

been vouchered, should be reflected in the "Refunds" column.

Like-

wise, any temporary increase returned to the Bureau

should

be

recorded here. (Note entries, Exhibit Number Two.)

In view of the foregoing,. you will note that for every

entry in the cash Disbursements column, there should be a corre-

sponding entry in one of the debit columns, l.e., in either the

Criminal, Security or Miscellaneous columns, or in the Refunds to

Bureau column.

Likewise, for every entry in the Casn Receipts

column, there

should be a

corresponding entry in one of the credit

columns, A.e., In either the Refunds of Payments column or in the

Receipts.from

Bureau column.

_ It is to be further noted that the totals of column

Number 2a will be of assistance in the preparation of the "Sum-

mary of payments to Informants" Ill connection with the monthly

report. The amount of cash on hand can always be determined by

subtracting the total of the crealt side of Column one from the

total of the debit side of this column.

•3. An individual ledger page should be set up for each

paid informant and for each paid confidential sources.

This section

of the ledger should be divided into hree parts; namely, Criminal,

security and Miscellaneous.

The Criminal section of the ledger should contain a

separate page for each paid criminal Informant and each paid

criminal confidential source.

The Security section should reflect

6/9/54

NO NUMBER

- 2 .

SAC LOTTER 54-G

NW 68262 Docld:32989707 Page 127

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## Page 128

a separate page for each paid security Informant and each paid

confidential source. Under the Miscellaneous section, pages

should be set up for rental of space for plants or surveillances,

regular monthly telephone bills that are paid from the Confidential

Fund and any other such payments that would be made on a regular

basis. Occasional payments, such as payments to taverns, restau-

rants, rental of safe deposit boxes, etc., may be included on a

single page as the expenditures come up.

A sample of an informant

page is attached (Exhibit Number Three). It 1s to be noted that

this page reflects the following Information:

a .

the date of authorization

b.

the authorization

c.

a.

period covered by payment

date of payment.

e. amount of payment

In connection with the date of authorization, you are

instructed that this date should be the date of the Bureau's letter

to the field division in cases where authorization is made by

Bureau letter and the date of the incoming letter when authorization

Is made by stamping "approved"

received from the field division requesting authority.

Before making any disbursements from the Confidential

Fund to an informant, the authorization should be checked to be

sure that there 1s noù a duplicate payment being made and

that the

period covered by the payment is in agreement with the existing

authorization. These authorizations should be posted in the

ledger at the

time they are received from the Bureau.

In connection

with SAc authorized payments, a notation to the effect that payment

is. being made under authority of the SAc will be sufficient.

After July 1, 1954, the present serial in the informant's

file (FD-228) reflecting payments made to the informant up to that

• date should be maintained in the exhibit envelope.

on July 1, 1954;

form FD-228 should be removed from your form-book and your supply

destroyed.

4.

After a careful review of the many suggestions received

In response to SAC Letter Number 54-8, a form (FD-235) for request-

Ing funds from the Confidential Fund has been designed, a copy of

which is attached. You may print a supply of this form for use in.

your office.

•FD-235 1s to replace any similar form that may have

been approved for your office.

4 copy of FD-235 1s to be placed in

the FBI Form Book.

This form should be prepared in duplicate by

the Agent requesting

• the funds, and after approval by the Agent

supervisor, the form should be forwarded to the SAC for his approval

6/9/54

NO NUMBER

SAC LETTER

• NO: 54-G

-3 -

NW 68262 Docld:32989707 Page 128

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## Page 129

•..

before any disbursement is made from the Confidential Fund.

After

approval of the form by the SAC and

after the employee hanaling

the disbursements frcm the fund has carefully verified that the

payment is in accorcance with existing authority,

one copy of

• the

• form should be forwarded to the informant's file and the second

copy retained in an accounts receivable file which should be

divided Into two sections; namely, an unvouchered file ari a

vouchered file. These forms can be used by the employee responsible

for disbursements from

the fund as the basis for preparing

blue

slips for submission io the Bureau. Of course, these blue slips

should not be prepared until such time as the receipt from

the

informant is obtained from the Agent making the payment, and in

those cases where necessary, that FD-221 has been executed by the

Agent making the payment.

At the time the voucher is prepared, those

forms pertaining to the voucher that is being submitted should be

attached to the tickler copy of that voucher after it has been

prepared

and retained in the accounts receivable file until reim

bursement is made, by the Bureau..

At the time reimbursement is

received, the voucher should be

removed together with the attach-

ments and

a notation made on the voucher of the date reimbursement

was received from the Bureau.

The Request for Funds forms attached

to the voucher may then be destroyed.

In the event an item has

been suspended from the voucher and returned to the field office,

it would be necessary to remove the Request for Funds form from

she voucher on which the blue slip was requested and returned to

the unvouchered ille until such time as it 1s resubmitted or 1t 1s

•determined It will not be resubmitted.

5. Monthly Report.

AS yOU

are aware, the monthly report

of expenditures from the Confidential Fund is presently prepared

and submitted to the Bureay by the twentieth of the month following

the period auring which the expenditures were made.

These reports

should continue to be submitted at this time; however, changes in

the present form for this report have been suggested and after a

review of the various suggestions received, it is felt that the

reports should be prepared in accordance with the attached example

(Exhibit Number Five).

The monthly report submitted to the Bureau

should be prepared under the direct supervision of the Special

Agent in Charge, Assistant Special Agent in Charge or a regularly

designated Field Supervisor.

The jund should be audited once each

53.x months, on June 30 and December 31.

This audit shall be

versonally perforned by a Special Agent Accountant. The report of

this audit shall be forwarded to the Bureau by the twentieth day of

july and the trentleth day of January.

In those instances where

the Confidential Fund is audited by an Inspector from the Training

and Inspection Division during a, regular Inspection, the next

regular six months' audit shall be omitted by the Special Agent

Accountant of the Fleld DiVISion.

6/9/54

NO NUMBER

-4-

SAC LETTER, NO. 54-G

NW 68262 Docld:32989707 Page 129

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## Page 130

With regard to the summary. of expenditures

section of

the Confidential Report, it is desired

to illustrate the following

points:

a. All transactions during the calendar

month should be shown.

b.

All items should be listed in order by

date and by check number.

C.

The explanation should reflect the

name

and symbol number of the informant as

well as the period covered by the payment and

In case of miscellaneous expenditures, a brief

statement to describe the expenditure.

d. Any transaction that affects the

total amount of the fund. to be accounted for

must be fully explained in a cover memoran-

.aum. An example of such a transaction would

be a refund received from an informant for

payment which had already been reimbursed by

the Bureau.

Any such refund, if not already

forwarded to the Bureau, should be transmitted

with the report.

In connection with the summary of payments to informants:

you are advised that all miscellaneous payments must be listed

separately from payments made to informants or sources of Informa-

tion.

This breakdown should include such payments as post office

box rental, telephone service, rental of space for plants, bank

charges, restaurants or taverns on surveillances, meals for

prisoners, etc.

In otner woras, all payments not made to informants

or to sources for information furnished for services rendered or

expenses incurred by them

should be included under miscellaneous

expenditures.

6. Preparation of Blue Slips. As was pointed out here-

tofore, the blue slip should be prepared from the Request for Funds

form with the exception that the date of actual payment to: the

informant should be shown on the blue slip. This date should be

obtained either from the Agent making the payment or the receipt

obtained from the informant.

A blue slip should be prepared at

such time as all receipts necessary to support the item have been

received from the Agent making the payment.

All blue slips should be as brief as possible, but

should contain sufficient information to allow the Bureau to make

proper review of the expenditures. Samples are attached

reflecting payments made to informants under Eureau authority

6/9/54

•5 .

NO NUMBER

SAC LETTER NO, 54-0

_MW.68262-Docld:32989707. Page 130...

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## Page 131

(Exhibit Number Six), SAC authority (Exhibit Number Seven), and

miscellaneous expenditures (Exhibit Number Eight). These samples

are general but should be used as a guide for preparing all blue

slips.

the following, be kept in mind in connection with the preparation

of blue slips:

&. One blue slip should be used for each

payment.

It is nou desired so nave numercus

payments' listed on a single blue slip in view

of

the possibility of error which would result

in the necessity. of suspending the entire blue

slip; whereas 1f

only one payment were listed

on the blue slip, lt would

be possible to re-

turn only the one item and the remaining 1tems

could be processed for payment.•:

b. The authority must be clearly reflected

on the blue slip.

when authority is based on

the letter Irom the Bureau, actual date of the

Bureau letter shall be used as the date or the

Then the field orfice, by letter,

requests authorization and receives notice that

authorization has been granted in the form of a

copy of the field office letter returned by the

Bureau with the Bureau approval stamped thereon,

the date ol the authorization in this instance

shall be the actual date of the rield office let-

ter to the Bureau requesting the authorization.

c .

The actual period of time covered by the

payment to the informant must be reflected in the

body or the blue slip. Fon example, see

"Period"

_reflected in body of

Exhibit Number

SiX.

• It 1s

also essential that the period covered be carefully

compared with the Bureau authorization to prevent

exceeding the Bureau authorization, both by time

and amount. Receipüs should be obtained whenever

In instances where they are not obtained

either because of the refusal of the informant to

execute one or when it 1s not advisable to obtain

one, the appropriate notation should be reflected

on the blue slip.

d. FD-221 which 1s a receipt signed by the

Agent reflecting receipt of money from the SAC is

only to be used when the receipt signed by the

informant reflects that payment was made by the Agent.

6/9/54

NO NUMBER

SAC LETTER NO.. 54-G

NW 68262 Docld:32989707 Page 131

---

## Page 132

e.

In all instances where the receipt. signed

by the Informant reflects payment was made to him

by the Special Agent in Charge, reimbursement must

be claimed on a voucher of the Special Agent in

Charge. If the receipt reflects payment was madé

to the informant by the Assistant Special Agent in

Charge, then reimbursement must be claimed on a

voucher of the assistant Special Agent in Charge.

In instances where the receipt reflects that payment

was made to the informant by someone other than the

Special Agent in Charge or Assistant Special Agent

blue slip may be submitted for payment on the

or the Assistant Special Agent in Charge.

When

the receipt reflects that payment was made by a

person other than the one claiming reimbursement,

Form FD-221 must be executed and attached to the

• blue slip.

It is advisable to have the 1nform-

ant's receipts' executed in the name of the

employee actually making payment or in blank in

order that the Special Agent in Charge or the •

Assistant Special Agent in Charge may claim

reimbursement.

.t. The Blue silp should not reflect, the

number of the check issued and no reference

should be made on the blue slip to the inform-

ant's field file number.

§. All blue slips submitted on the monthly

expense vouchers of special Agents must bear the

approval of the Special Agent in Charge; however,

the Special Agent in Charge may delegate authority

to the Assistant Special Agent in Charge or an

approved iield office supervisor to sign his name

as approving official followed by the initials of

the Assistant Special Agent in Charge or the

supervisor.

h. Receipts obtained by personnel which

reflect payments to informants and sources should

reflect the ACTUAL DATE payment 1s made to the

informant or source.

The receipt should in no

instance reflect any other date.

The Receipt

should also show the EXACT ANCUNT paid to the

informant or source, 'and every Special Agent sub-

mitting receipts should thoroughly understand

this procedure.

6/9/54

NO NUMBER •

SAC LETTER NO. 54-G

• 7-

NW 68262 Docld:32989707 Page 132

---

## Page 133

1. All vouchers containing blue slips must

be forwarded to the Bureau. addressed to Assistant

Director, Administrative Division, Attention:

Voucher Unit. They must be sent via registered

mail, return receipt

requested and cannot be

intermingled with other mail. Confidential Fund

monthly reports should also be submitted in this

manner to the Bureau.

7. Miscellaneous.

It is desired to bring the following

miscellaneous. Items to your

attention:

a .

When submitting blue slips covering

payments to informants from another field

division, the informant should be identified

on the blue slip by indicating his name, symbol

number and field division.

b.. The words Confidential rund should never

be mentioned on a blue slip. When claiming for

bank charges, the blue slip should reflect pay-

ment to an official of the banlt by name for serv-

ices rendered.

c.

Payments under the authorization of the

SAc are limited to 3200.00 to criminal informants

and sources; and to $100.00 to security Informants

and sources.

This maximum is considered as all

payments made to an individual regardless of the

length of time between payments.

Once an inform-

ant has been paid under Bureau authority, pay-

ments cannot be made under the authority of the

SAC even in Instances where the informant has been

_aiscontinued as a regularly paid

informant.

a. The ledger page that is used in Exhibits

One, Two and Three 1s size 9'1/4 X 11 7/8 Inches;

for Exhibits Number Che and Three, four-column

paper is used, and eight-column paper for Exhibit

Number Two.

The type of binder that should be

used for this paper is described as follows:

Trussell Sectional Post Binder; Stock #E4007; sheet

size, 9 1/4 X 11 7/8 Inches; post diameter, 5/16

Inches; center to center, 7 1/8 inches. This

ledger paper and binder should be purchased locally

from the Imprest

Fund, and in those instances where

the offices do not have an Imprest Fund, by emergency

purchase.

6/9/54

NO NUMBER

SAC LETTER NO. 54-G

-8-

NW 68262 Docld;32989707 Page 133

---

## Page 134

e.

The retention period for the attached

exhibits shall be as follows: Exhibit Number One

to be retained as long as the office maintains a

Confidential Fund and five years thereafter; Exhibit

Number Two to be retained for a period of five

years; Exhibit Number Three to be retained as long

as. the informant 1s active and to be destroyed

five

years after the date informant is discontinued;

Exhibit Number Four to be maintained in the inform-

receipt of reimbursement from the Bureau; the origi-

nal or Exhibit Number Five is to be maintained at

the Bureau Indefinitely and the copy to be retained

in the Field Office for a period of three years; no

copies of Exhibits Number Six, Seven and Eight

are

to be retained in the Field Office, the or1g1-

nal to be retained at the Bureau for a period of

five years and microfilmed, after which originals

will be destroyed and the microfilm retained

Indefinitely.

In the event an informant is transferred

from one Field Office to another, the ledger page

should be transmitted to the new Field office.

The foreguing Instructions have been set forth for ine

handling of the Confidential Fund in your office.

These instruc-

tions have been prepared

for all field divisions

and no deviations

wall be permitted without prior bureau auchority.

This letter

shoula be carefully reviewed by those responsible for handling

the operations of

the fund in your office.

very truly yours,

John Edgar Hoover

Director

Attachments

6/9/54

NO NUMBER®

SAC LETTER NO. 54-G

9

NW 68262 Docld:32989707 Page 134

---

## Page 135

DATE

195%

Gai

"Man

•Current aucharized amessert

15: Tamperay increase reside rome Bureau

June 29 Refund of pauprent to O. Gorse, P.CI, Jaw

DEBIrS

1.00

500

ERNIES

-

"Вмесан

29 Return to Burcau refuside froni I. Jares, PCI,

• Cle d° 17

20.

220

5

8

7

13

:8

18

NW 68262 Docld:32989707 Page 135

-

ACCOUNTED FOR.

1

1500

1520

1500

8

...

10

12

13

14

15

33

34

20

---

## Page 136

1

2

3

5

7

9

10

11

12

13

14

75

16

17

18

19

20

21

22

23

24

25

26

27

28

DATE

1954

Jurese 1

9

10

15

15

-20

.2,5

25

27

EXPLANATION

CK

Balance Farwrar.d

Su E, Gabre Forza, WF 121-8, 5/1-31/541 11

Вакс Ts.. Co, Ler, ty., Tray

12

Bank service change far tray!

Sal. J. Sonich, PGI, 6l1-15/58

Iguanit exps, che fromo Bureau

13

De quasit expe che from Burean.

Many rent, officilurn Glorie 665-972-287

caligat waucherend- fund rat afferial

dal, J. strate, (U5-12-5,410-15/5416

sares/57 sensi sere

macchered - fund increanas!

Reti nuts Bureau of fores refund

NW 68262 Qocld:32989707 Page 136

20 -

-020..-=.

150'-

2t0-

20

525

-N.9..=

.MISC

RETUNDS Or

PAYMINTS

BURDAN

REFUNDS...RPCFIPT.S

--.

95-

475

125

100

-

22

155-

da.-

14795-

_PAVMILIS

CRIMINAL, SICURITY

95-

100'-

475

20.=

1501-

:

240-

mon to en

195

72 -

1155-

222

$.5..

53

75-

20 -

95

20-

20

3

5

6

7

8

9

10

11

12

13

- -

14

15

16 :

17

18

19

20

21

22.

23

24

25

26

27

28°

---

## Page 137

7. 2 arranGer reine DePiC 10-68788-3

DATE OR

AUTH

.1954

Man

151

AUTHORIZATIONS

Auth to pay I90.00 your porch plus expenses

to 500 per mored for i moshe effective ti

PERIOD GOUPEND

PAYLDNT

FROM

70

DATE

93.00

5.00

60:1-542

AMOUNT

90/

95

-

8

8

10

10

18

14

16

10

17

18

10

...20

-.

13

13

Faris

•a..

22

23

21

. 25

20

.27

28

15'

16

17

18

10

20

21

22

23

24

28

28

27

NW 68262 |Docld:32989707 Page 137

---

## Page 138

FD-235

STMONTO PERM NO, CA

Office Memorandum

_TO

:

FROM

SUBJECT:

===-

SAC

SA

Request for Funds for

Payment to Informant.

The sun of §

• UNITED STATES GOVERNMENT

• DATE:

Is requested to be paid by

me On

195, to

(Informant's name and symbol)

for the purpose of securing information needed for oificial

use in connection with the case of

The reason for the payment is as follows:

Authority (Date) -

Period Covered by Payment

Authorization Checked

Check Number

Receipts Received

Voucher Prepared

Item

Approved:

SAC

- NW 68262 Docld:32989707 Page 138

---

## Page 139

Office Mer@randim : UNITECO

TATES GOVERNMENT

TO

Director, FBI

DAZIs JUly 10, 1954

FRO35 :

SáC,

SUBJECI:

Konthly Report of Expenditures

Confidential Funo

Period Covered - June, 1954

Bank Balance per Check Book 5/31/54

Deposits:

6/10/54 Expense Check

6/15/54

6/20/54

6/25/24 Refund from PCI, James Smith

6/29/54 Refund IrOm WF-121~C

$ 20.00

150.00

240.00

75.00

- 20.00

Total Fands Avallable

•Pitharaxals: Per attached itemization

Sank Balance per Check Book 6/30/54

Outstandins. Parents and Youchers:

Trogid Voucher (Period June 20-25, 1954) $200.00

Faysent nöt vouchered

(Period June 29-30, 1954)

720.00

50.00

Total Fund to

be Accounted for

20.00

505.00

$525.00

495.00

30.00

970.00

$1000.00

Attechment

NW 68262 Docld:32989707 Page 139

2221091

"(EXHIBIT NUMBER FIVE)

.. ........

---

## Page 140

SUMMARY. OF EXPEND!

Date

Check No.

6/1/54

11

SPES:

Deposit

6/5/54

6/9/54

6/10/54

6/15/54

6/15/54

6/20/54:

6/20/54

6/25-54

6/25/54

6/29/54

6/29/54

6/29/54

12

1.44

-

15

16

17

Description

Salary & Expense for John

Jones, WF-121-0, 5/1/54

Bell tel. Co.,

_Lexington,

Bill dated 5/31/54

Bank Service Charge for

• May

Deposit Expense Check

from Bureau

$ 20.00

Deposit check rec'd from

Bureau

Services & Expense, John

Doe, PSI, 6/1-15/54

Deposit check rec'd from

Bureau

150.00

240.00

Rent office furniture for

plant, File 65-99, May rent

Refund from James Smith,

Pel. Payment made: 6/15/54

by Ch. #13; not set vou-

chered; fund

not affected

SaLary,

J. Doaks, WT-12-S,

{от 6/1-15/54

75.00

Refund from John Jones,

WF-121-C, of payment made

/20/54.

Ck. #8. Iton vor.

shered 5/28/54: fund wi11

be increased.

Return to Bureau of above

refund from John Jones

Totals

20.00

$505.00

Sunmary of paynents to Informants on attached page.

Withdraxa

$ 95:00

6.75

1.25

100.00

72.00

45.00

155.00

- 20.00

$495.00

NW 68262 Docld:32989707 Page 140

---

## Page 141

..

SUMMARY OF PAYMENTS

TO INFORMANTS AND SOURCES

Criminal:

Informants

Sources

Total

$ 95.00

-100.00

$295.00

-Security:

Informants.

Sources

Total

Total Payments to Informants

Miscallaneous:

$155.00

-72.00

227.00

Payments other than

Informants or sources

$ 53.00

Grand Iotal.

- NW 68262 Docld:32989707 Page 141

$422.00

53.20

$$75.00

---

## Page 142

EXPLANATION OF CHARGE FOR

ORMATION

Detzoits Hicke 5/20/54

Place and daio of this certificato

ITEM NO.

I hereby certify that the sum of $

and necessarily paid by me on.

Dick Bichards

00.00

May 15, 1954

(DE-00-C)

- was actually

-, 195, to

Dalo

for the purpose of securing information needed for official use in connection with the case of

Charles Samuel Zoff - Fugitive URAP

88-1342

and that the payment was made under the circumstances and for the purposes explained below.

AUTHORITY: DElet 3/21/54 (aRDIOVed by Bureau 3/29/54)

PERIOD: 4/1-30/54

RECEIPT ATTACHED: YES

Services $00.00

Expenses

10.00

Iotal

$00:00

• Approved:

Director

Signed

Titie -

Approved

(EXITBIT NUMBER SIX)

Special Agent in Charge

Assistant Director

• NW 68262 Docld:32989707 Page 142

---

## Page 143

FD-3?

EXPLANATION OF CHARGE FOR INFORMATION

Hashingter, D,C., 5/20/5$

Placo and dalo of this certilicate

ITEM NO.

2

I hereby certify that the sum of $ -

000.00

was actually

and necessarily paid by me on.

May 15, 1954

, 195, to

Dato

John Doe (WF-000-c)

for the purpose of securing information needed for official use in connection with the case of

RICHARD ROE, JR. - Southwest Bank of Eastburg: Maryland

Bank Robbery, 4/21/54

and that the payment was made under the circumstances and for the purposes explained below.

Doe provided information of value as to the subiest's

present whereabouts and astivittes.

Payment was authorized by the SAC

Receivt not obtained as it vas deemed inadvisable to obtain

one in view of the circumstances under which payment was

made.

=.

Approved:

Director

*NW 68262 Docld:32989707 Page 143

Signed

Title

-"Approved -

Special Agent in Charge

(EXHIBIT NOMBER SEVEN) Assistant Director

---

## Page 144

FD.37

EXPLANATION OF CHARGE FOR INFORMATION

Kansas CItT, 20c, 5/19/54

Placo and dato of this certificate

ITEM NO.

3

I hereby certify that the sum of $ -

and necessarily paid by me on

000.00

was actually

5/13/77

., 195, to

Dato

Ered's Place

for the purpose of securing information needed for official use in connection with the case of

GEORGE GREEN, WaS. Fuze ID 22222; Unsubs:

Security Bank ei

Greensburg, Greensbure, lan, 4/17/54-PR-B

and that the payment was made under the circumstances and for the purposes explained below.

Necessarv expenses incurred in the maintaining surveillanas

Is this tavern in an attempt to obtain information regarding

the subiect whe resertedly freuented the lace. None et the

amount claimed was expanded for the personal henefit of the

participating Agent.

Authorized by the SAC

Due to the nature of the surveillance, recent was not

obtained.

Approved:

Director

* NW 68262 Docld:32989707 Page 144

Signed

Title.

Approved...

(EXHIBT NUMBER EIGHE)

Special Agent in Charge

Assistant Director

---

## Page 145

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INVESTIGATION

Ir. Repli, Please Refer 10

File No.

June 30, 1954

FASHINGTON 25, D.C.

MEMORANDUM FOR ALL BUREAU OFFICIALS AND SUPERVISORS

(A) CONFIDENTIAL EXPENDITURES -- I want to draw to your attention

the absolute importance of making certain that any confidential

expenditure authorized by the Bureau complies with existing Manual

that the Bureau receives appropriate value for

every dollar expended. Although it is the personal responsibility

of each Special Agent in Charge to make certain that full value

is received in the field, it is equally the responsibility of seat

of Government employees to be judicious in authorizing expenditures

to be made and to practice proper economy.

For your Iniormation, Inspectors will; in each field

office inspection, review in the neighborhood of one hundred blue

slips to determine the propriety of each expenalture and "1ll trace

through the files information received and results obtained,

following the expensiture and, if necessary, follow it through

with appropriate employee interviews with

the understanding that

in the event an expenditure is encountered which is not proper

the employees involved will reimburse the Government.

very truly yours,

John Edgar Hoover

Director

NW 68262 Docld:32989707 Page 145

---

## Page 146

In Reply, Please Refer 10

File No.

ILED STATES DEPARTWENT

PERSONAL AND CONELUERLLAN

NO NUMBE

SAC LETTER 54-I

JuSTICE

FEDERAL BUREAU OF INVESTICATION

JuLy 8, 1954

FASHILNGTON 25, D.C.

RE:

CONFIDENTIAL FUND -

ACCOUNTING PROCEDURES

Reference is made to No Number SAC Letter 54-G which

set out accounting procedures to be followed in the operation of

the Confidential Fund.

The Bureau is now in receipt of a suggestion which 1t

Is felt will eliminate some duplication of work in connection

with the establishment. of these accounting procedures.

The sug-

gestion was based upon the necessity of an employee's determining

whether payments to informants on SAC authority are in excess

of the $200.00 amount for criminal informants and the $100.00

amount for security informants.

It was suggested that the In-

formants' files be checked and the amount paid prior to July 1,

1954, be entered on the informants' individual ledger pages.

This

would apply onlj to payments made under SAC authority.

It is felt that this suggestion will save considerable

time and work in the field: and you are accordingly instructed

to put it in effect with the establishment of the new accounting

procedure.

Very truly. yours,

John Edgar Hoover

Director.

_JC4e8-54-5

===.

NW 68262 Docld:32989707 Page 146

---

## Page 147

(I) FBI FORM BOOK - CONPIDENTIAL EXPENDITURES -- ND-235 forms should

be deleted fiomyour form Buok and ID-221 should ce replaced with

the revised FD-221 form. Also, FD-221a should be included.

FD-221 has been revised to be used together with FD-2212

which was prepared to replace Form FD-235:.

These forms

may be in-

seried together in a typewriier, eliminating the necessity of pre-

paring two separate forms. There has been no change mude with

gard to the use of FD-221.

The lower half of FD-22la is similar to

FD-235 and may be completed with ink. The date of actual payment to

Informants on both FD-221 and 22la may be inserted in ink.

FD-221

w1l1. accompany the blue slip.

FD-22la will be retained until the

formation on the lower half of the form is completed. The form will

SAC LETTER NO. 54-67•

11/30/54

ther be placed in the appropriate file; in case of payment's to in-

formants, the

informani file, and in case of miscellaneous payments,

the case file.

In addition to the above, it is desired to bring the follow-

Ing: Items to your attention:

1. There has been a noticeable lack of receipts to support

blue slips.

Receipts should be obtained in every possible instance.

2. Fallure to properly explain lack of receipts has been

noticed in numerous

instances.

If the informant refuses to execure

the receipt, a statement to that effect should be included on the cius

slip.

Where 1t is not deemed advisable to obtain receipts for secur-

Ity reasons, this should be fully explained on the blue silp. This

does not apply to blue slips reclaiming bank. charges.

3. All blue slips must show to whon the, payment was actu

•ally made and the city where the payment was actually made.

4. The receipt signed by the informant should reflect

thie

name of the person actually making payment. Any departure from this

should be fully explained on the blue slip.

5.. In the future where a symbol number has been assigned

ta the informant, only the symbol number should be reflected on tre

FD-221 und FD-22la forms; however, the name of the informont shall ce

reflected on the blue slip.

The new forms will be printed and placed in stock at the

Bureau. As spon as they are available, a suprly. well le sent to

each Field Division.

NW 68262 Döcld:32989707 Page 147*

---

## Page 148

(B) INSPECTIONS - DELINQUENCIES FOUND DURING -- In line with the

Bureau's desire to assist you in improving operations of your office,

there are being listed below foi your guidance certain delinquencies

noted frequently during recent inspections.

Should jou find similar

delinquencies in your office, you should take prompt action to correct

them.

-

15•|| Checks against Confidential Fund being drawn to "Cash"

rather

thân

• to individual agents.

16.

Agents obtaining and subnitting receipts in blank for

payments

made from Confidential Fund.

17.

18=

Inclusion in blue slips date cleck is issued to agent

instead of date payment 1s made to informant.

"Incomplete expianation in blue slips of expenditures from

lthe Confidential

Fund.

12/14/54

SAC LETTER

NO. 54-70

-=--

• NW 68262 Docld:32989707 Page 148

---

## Page 149

In Reply, Please Refer 10

File lio.

PERSONAL AND CONFIDENTIAL

SAC LETTER NO: 55-28

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INVESTIGATION

April 8, 1955

MASHINGTON, 25, D.C..

RE:

CONFIDENTIAL EXPENDITURES

GIFTS TO OFFICE CONTACTS, SOURCES

AND INFORMENTS

Gifts to office contacts and sources shall

not be re-

claimed

as blue slip items.

Gifts should not be given to informants

since

such actions might be misconstrued and the relationship

• between agents and informants

shall be maintained on a business-

like basis.

Expenditures for gifts to informants will not be ap-

proved as blue slip items.

Very truly yours,

John Edgar Hoover

Director

policy.

-NW 68262-Docld:32989707 Page 149

---

## Page 150

8/30/55

SAC LETTER NO. 55-56

(3)

CONFIDENTIAL FUND • Paragraph 5 of No Number SAC Letter 54-G,

dated June 9, 1954, requires a

semiannual audit of the confidential

fund maintained in

each office,. Effective immediately this audit

report need not be precared.

In lieu of this report, you are instruct.

ed to have an agent, other than the SAC or ASAC and preferably ar

accountant, certify each monthly report prepared by your office be~

ginning with the report covering activities of the cunfidential rund i

IGe August, 1955.

NW 68262 Docld:32989707 Page 150

---

## Page 151

' ¿D STATES DÉPARTMENT d

PERSONAL

AND CONFIDENTIAL

NO NIMB:

SHO LETIER

55-7

JUJIICE

FEDERAL BUREAU OF INVESTIGATION

Let's

In Reply, Please Rojer s0

File No.

September 16, 1955

FASHINGTON 25, D.

RE: CONFIDENTIAL VOUCHERS -

TRANSMISSION OF TO BUREAU

No Number SAC Letter 54-G dated. 6/9/54 instructed that

all vouchers containing bive slips must be sent to the Bureau

addressed to

"Assistant Director, Aâministrative DIvision, At-

tention Voucher Unit," and. must be registered with return receipt

requested.

such vouchers were not to be mingled with

other mail

being transmitted to the Bureau.

It is desired that "Federal

Bureau of Investigation" be added to the address on the inner

envelope containing the blue slips, in order that the address

may be complete in the event this

from

envelope should become separated

the outer envelope in which it is being transmitted to the

Bureau.

You are again reminded that confidential blue slips are

not to be transmitted to the Bureau in an envelope containing

any other

mail.

There must be no exceptions.

Very truly yours,

John Edgar Hoover

Director.

NW 68262 Docld:32989707 Page 151 •

---

## Page 152

PERSON

NO NUMBER SAC LETTER 58-B

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INTESTIGATION

January 9, 1958

MASHINGION 25, D. C

• ITs Reply, Ploass Rejes 10

File Na.

RE: FIELD CONFIDENTIAL FUND RECORDS

• Effective January 1, 1958, cancelled checks, bank

statements, check stubs, and bank passbooks pertaining to

field division confidential funds shall be retained for a

period of one year and destroyed on a monthly basis after

they have

become one year old.

Very truly yours,

John Edgar Hoover

Director

--.:

NW 68262 Docld:32989707 Page 152

---

## Page 153

BLUE SLIPS

In the preparation of future blue slips, the

following Instructions should be adhered

to:

The blue

the individual being *lIpa should show the correct name of

Any difference between this and

the name used by the Informant in signing a receipt for

payment must be explained

or the blue slip.

When a name

other than the individual's full correct name is used in

Initial development as an informant, his full correct name

should be used on the blue slip as soon as it is known,

together with references to the previous names used in

contacts and payments by your office.

The above procedure 1s necessary to enahie the

Bureau to properly conirus payments and to make sure that

all payments to one individual are consolidated.

It has

been noted in some instances

that blue slips are submitted

showing the full name and on subsequent payments they are

submitted showing the individual's middle namè as & last

name. This 1s especially true in connection with Spanish

names. This practice leads to the possibility of carrying

& separate account of peyments under each name.

Take sure that the necessary employees of your

office are aware of this and the

need for

consistency.

In addition, where an informant or individual

Inown to have been formerly contacted by another division

Is bald by your divigion, the blue slly claiming reimburse-

ment should refer to the fact that he is formerly from the

other division.

* to the sace

. Bureau's accounts of payments are properly credited for

payments inade.

The Bureau has noted that in many instances the

field 1s not following instructions concerning the forward-

Dig of vouchers containing confidential Items (blue slips)

to the Bureau. The Manual of Rules and Regulations, Part II,

8/12/58

SAC LETTER NO. 58-47

~5.-.

NW 68262 Đocld:32989707 Page 153

---

## Page 154

Section T, Subsection A, Item 2d, (2), provides that all

vouchers containing confidential blue slips must be sent

by Registered ra1l, Return Receipt Requested, the Inner

envelope addressed to the Asgistant Director, Administrative

Divi810n, Federal Bureau of Investigation, Attention Voucher

Unit. Honthly reporis of confidential expenditures must be

handled in the

same manner.

marked

personal and confidential. You should bring this

matter to the attention of all employees responsible lor

handling the malling of these Items.

MONTHLY REPORTS OF CONFIDENTIAL EXPENDITURES

In examining the above-captioned reports, the

Bureau has noted that the field 1s not being conne tast

In the way the expenditures are summarized

page.

some reports inclae payments made to Puls or rsis

with those to

"Sources.

Payments to PCIs or PSIs should

be included with "Informants" and not with "Sources."

those payments made to Confidential Sources, Panel Sources,

and Sources of Information should be included under

"Sources" in he summary. hake sure that une persons

responsible for the preparation and revier of the report

are aware of the above....

NW 68262 Docld:32989707 Page 154

---

## Page 155

JNAL ATTENTION

C LETTER NO. 59-69

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL DUREAU OF INFESTIGATION

November 17, 1959

TASHINGTON 25. D. C

Ins Reply, Please Refer s0

Filo No.

(A) VOUCHERS - FORMS - REVISED DORM 55-57 - FBI FORM BOOK --

Form FD-37, which is used to claim reimbursement for expenses

of a confidential nature, has bean revised to conform to the

Bureau's present needs.

Three copies of the revised form are

enclosed, and one copy should be placed in your FBI. Form Book.

The revised form should be ordered immediately from the sureau,.

and your old stock destroyed upon receipt of the new supply.

The revised form FD-37 is basically the same. How-

ever, with respect to the raference to FD-221, you are advised

that in those instances when you personally meke payments, or

when an employee uses his

to make paynents, the

reference to form 7D-221 should be marked out. Other items

on the revised forir are seli-explanatosy, and compiste information

for each must be furnished in accordance, with current regulations.

***=**=

..=.

_MVV 68262 Docld:32989707 Page 155

---

## Page 156

Routing Slip

0-7 (Rew. 9-5-69)

TO: SIC,

] Albiny

Albuquerane

Alexiadria

Anchorige

Allanti

Ballimore

Binninghani

Boston

Bufinlo

Bulle

Charlotte

Chicingo

Columbia

Dallas

Denver

Detroit

El Paso

3 Honolulu

(Copies to c'lices Checked)

Ilnuston

Indininolis

Norfolk

I Oklahoma City

Jacksonville

Kansas City

Knoxtille

Las Vekas

Little Rock

Los Angeles

Louisville

Memphis

Sinmi

Ji waukee

Minneapolis

Mobile.

Newark

New Haven

ew Orican:

ion York Cit

Philadolphia

Phnenix

Pittsburgh

Portland

Richmond

Sacramento

St. Louis

Salt Likc City

Sin Antonio

San Diego

San Friucisco

San Juan

Savannah

Scattle

Springfield

6/16/70

IJ Trunga

TO LEGAT:

B3em

Bonn

E Henne Aires

→ Hong Kong

Tardion

Madrid

i Mexico, D.F.

"Date -

RE: FORM FD-37

EXPLANATION OF CHARGE FOR INFORMATION,

"BLUE SLIP"

FBI FORM BOOK

ww.n

Retention

For appropriale

L For information B optional

C& action

surep, by

The ended forger in patin e contine

If used in a future report,

- Enclosed are corrected pages from report of SA

dated

Remarks:

Enclosed is a supply of Form FD-37,

"Explanation of Charge for Information,

(Blue Slip)," which, has been revised. Place

copy in the FBI Form Book.

Destroy unused

on enclosed supply.

except for Office of Legal Attache, Ottawa, are

for information

and the EBI form Book.

Done We ment Desk .

Training Division

Eine.

Bufile

Urfile

• NW 68262 Docld:32989707 Page 156

---

## Page 157

FD-37 (Rer. 5-20-i0)

BLUE SLIP

Date:

• "Place:

I certify thatS.

ITEM NO.

was paid (per attached Form FD-221)

amount

1o.

on

entitled

- in connection with an official investigation

doic

and that payment was made as explained below.

Authority: -

Period Covered:

Receipt Attached:

Yes

Services: s

Expenses: $

Total: $

Details:

No

Have payments been made by other Offices? • Yes D No

If Yes, list Offices under details.

Federal Income Tax Withheld S-

Approved:

.L

Disapproved: 7

Assistant Director

Administrative Division

NW 68262 Docld:32989707 Page 157

Signed

Title

Approved

Spocial Agent in Charge

---

## Page 158

Routing Slip

07105. 9560)

TO: SAC,

l allans

(Copies to Olfices Checked)

1 Alexandria

Anchorage

Atlanta

Baltimore

Binningham

JDD0

B305lon

Buftilo

Butte

Charlotte

Chicago

Cincinnati

Cleroland

Columbia

Dallas

000L

Denver

• El Paso

→ Honolulu

flosston

Jackson

heck mville

Kansas Cily

Kimble:

Loiss Vegas

1 Little Rock

Los Angeles

Louisville

Memphis

Miami

Mil wnukee

Minneapolis

Mobile

lessark

or Hasen

jew Orleans

5 Yes Work City

Tainpa

Washington Field

@ Quartico

TO LEGAT:

1 Born

Bonn

i turnos Aires

Mexico, D.F.

) Tokyo

Date -

Norfolk

Oklahoma City

Oinaha

Philadelphia

Phoenix

Pittsburgh

Portland

Richmond

Sacramento

St. Louis

Salt Lake City

San Antonio

San Dicgo

San Francisco

San Juan

Savannah

Seattle

Springfield

8/19/70

RE:

FORM FD-22Ia

"REQUEST FOR FUNDS FOR PASTIENT TO INFORKANT"

FBI FORM BOOK

Retention

For appropriate

Cis for information = optional

T artion

- The enclosed is for your inforation. If used in a future mport

_ conceal all sources, 2 paraphrase contents.

→ Enclosed are corrected pages from report of SA.

dated

Remorks:

Enclosed are three copies of Form FD-221a,

"Request for Funds for Payment to

Informant,"

which has been revised.

Place one 01

• the three

copies in the FBI Form Book.

Request a suppiy of the revised form for

your office bearing in mind it should not exceed

your anticipated needs for a 3-month period.

Upon receipt of the copies, destroy all other

Maid coniss of ID zaha not bearing the revlsion:

date 01 7-15-70%

wuy

line.

Bufile

Urfile

Jors Harasement Dests

Training Division

B91K

NW 68262 Docid:32989707 Page 158

---

## Page 159

FD-221a (Rov, 7-15-70)

CITY

DATE -

Request of Special Agent in Charge, FBI, -

__ dollars, and

-), which money is to be paid by me on -

,

Is .

to

for information concerning the case entitled

:

Services: $

Expenses $

Federal Income Tax Withheld s

:

Signed:

Have payments been made by other Offices? Clo

Authority (date).

Period Covered by Payment

• Authorization Checked

.. ..

Check Number®

Receipts Received

Voucher Prepared

Date of Actual Payment

By whom

Informant's File Yo.

= ne

Approved.

SAC

NW 68262 Docld:32989707 Page 159

Special Agent

= Yes (List Offices below.)

_ Item -

cents,

---

## Page 160

(D) UTILIZATION OF FORM FD-221a - INFORMANT MATTERS --

Analysis has been made of forms used in connection with informants

(racial, criminal, security) and it has been decided that in order to

give tighter security to these forms, form FD-221a be changed as

follows.

In the future in filling out the above form you will utilize

"the informant's symbol designation rather than his true name. No

change is being made in present procedures for handling Forms FD-37,

FD-221 and informant receipts.

The matter concerning security for

all informant forms is being given continuing analysis for the purpose

of instituting methods which will afford these matters top security:

Very truly yours,

John Edgar Hoover

Director

-

6-15-71

SAC LETTER 71-25

4

NW 68262 Docld:32989707 Page 160

---

## Page 161

8/3/71

CODE

SECURE TELLTY PE

NITEL

TO ALL SPECIAL AGENTS IN CHARGE

FROM DIRECTOR FBI

MONTULY REPORT OF EXPENDITURES - CONFIDENTIAL FUND

REBUTEL JUIS TWO NIS IN CAPTICNED MAITER.

INSTRUCTIONS CONTAINED IY SAC LETTER SEVEN ONE TIO NINE

DATED JUNE TWO MINE LAST IN CAPTIONED MATTER ARE HEREBY

CANCELED. BEGNANO WITILJULY LAPORTS TRANSHUT BY REGISTERED

MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO ASSISTANT

DIRECTOR, AD'ILNISTRATIVE DIVISION, FEDERAL SUREAU OF

INVESTICATION, WASDINGTON, D. C. TWO ZERO FIVE THREE SIVE,

ATTENTION VOUCHER UNIT. DO NOT INTER INGLE WITH OTHER LAIL.

PREPARE REPORT IN ACCORDANCE WITS INSTRUCTIONS IN ESISTENCE

PRIOR TO REFERENCED SAC LETTER WITH FOLLOWING EXCEPTIONS:

TICLE CE REPORT SACULE CONSIST ONLY OF CODE WORD "BLUE,"

FOLLOWED BY OFFICE ABBREVIATION AND DATE COVERED. WORDS SUCH

AS "SURVEILLANCE," "INVESTIGATION," "CONFIDENTIAL," "INFORMANT,:

"SOURCE," "CRIMINAL," 'SECURITY," "RACIAL," ETC., ARE NOT TO BE

MERnIs

(6)

m 31r. Ponder

• Nir. Row

EASED ON MEMO ROW TO-CALLAHAN, 7/30/71,

MERnis.

NW 68262 Docld:32989707 Page 161

---

## Page 162

SECURE TELETYPE TO ALL SPECIAL AGENTS IT CHARGE

RE: MONTELY REPORT OF EXPENDITURES • CONFIDENTIAL FUND

USED ANYWHERE IN LETONI, CERTIFICATION AT END OF COVER

MEMORANDUM IS TO READ "TIS IS TO CERTIFY TEST ALL ITEMS IN TIES

REPORT HAVE EEEN COMPLETELY AUDITED AND ARE CORRECI." UNDER

"DESCRIPTION' IN DETAILED LISTING, ONLY SYNEOL HUBER OF

INFORMANI, DATE COVERED, AND EREADOWN FOR SERVICES AND

EXPENSES ARE TO BE SHOWN. NEVER SHOW NAME OF INFOR JANI,

AUDRESSES, FILE NUMBERS, TITLES OF CASES, ETC. WORDS "SERVICES"

AND'EXPENSES" SHOULD BE ABBREVIATED "S' AND "E." WHERE

PAYMENTS ARE MADE TO PERSONS OR PLACES NOT BAYING SYMBOL

NUMBER USE LAST NAMIE OF PERSON OR LEGIELE ABEREVIATION OT

COMPANY. WHERE DISCICSURE OF NAVIE OR ASBREVIATION NIGET

BREACH SECURITY, USE CODE WORD TO IDENTIFY PAYEE AND ADVISE

BUREAU BY SECURE TELETYPE CODE WORD TRANSLATION. LAST PAGE

ENTITLED "SUNDARY OF PAYMENTS IO INTORMANTS AND SOURCES"

SHOULD BE MERELY LABELED 'SUIMARY." FOLLOWING DESIGNATIONS

SHOULD BE USED FOR FORDS APPEARING THEREON: "1" FOR CRIMINAL;

"2"' FOR SECURITY; "3" FOR RACIAL; "&" FOR INFORMANTS; AND "B' FOR

SOURCES. WHEN SEWING MISCELLANEOUS PAYMENTS ON LAST PAGE USE

DESCRIPTIVE WORD "JUSCELLANECUS' ONLE. FA"IPLE OF SUMIARY PACE

AS IT SECULD APPEAR FOLLOWS:

NW 68262 Docld:32989707 Page 162

---

## Page 163

SECURS TELETYPE TO ALL SPECIAL ACENTS IN CHARGE

RE: MONTHLY LEPORT CE EXPENDITURES - CONFIDENTIAL FUND

B

SUMMART

$100.00

cans crea

TOTAL •

$800.00

2

B

$100.00

10.00

TOTAL

$180.00

A.

B

$300.00

TOTAL

TOTAL OF 1, 22 AND 3

MISCELLANEOUS

GRAND TOTAL

$300.00

$510.00

$390.00

$900.00

• 3

NW 68262 Docld:32989707 Page 163

---

## Page 164

0/16/12

cattal.

-Do: SAC, 120027

20136227 20 192076 28373 3477322344

208 073323368170 673333036

Is croco Arcinces clois di is oscencial do tir

sarontagatios;

CÁC: 415

2114023210 60 C3126 1P 10

02.3699

6220211 curce met ba lights actochave sud coscar lu tes

¿evictics 620nn97.

(a) 10n00l 0i mculliance pleads and scare

ecuayneat ou c.ng02027 24526.

lscensury exporattersa by Agends working

in in unconceros of covore mayacate.

(e). Ronsol cô goroint anionotife colicier

5342:16..657'1

Apponenadeed and the coco de co mojo!

(c)

Other loand recogenty to tie conduci ca au

insatication not midlable theongà noses?

apply di acquisition claraolo.

1. Evil coconuting muot to amindadadd dor 3aca

epondacha cal at thore that covinochone to 102190600

2239 5270 MC007т 16 C022646 31666 C601.36

23000g220€0

d • 122 8201003

San Tood Pick ?

unre

INW 68262 Docld:32989707 Page 164

---

## Page 165

hackel to 421023

1:08

: 18}

tor daristontiro Cascasions

I0 Baapore Cô the abororditoà cinnseo da au

?0 trAch

retinit

Ho 2220027463 60602 306101 62

ts curde 2220

42015253

patrona to tie ric

torld bo in cho uoso 2cvaadc2es0s

pesttion to make

at hond.

Roccianetars

and inocking tie parcticod in thoce

carsad changer foliou.

20037 to apore suegation vas contrino in a ronoranden

Disecica Chevatent T012. Foli captioned

"Organiced Caica

Progme" datod C/ao/t2, snd. was

appsoved by

sony in his decorandon dated 3/:72.

lianus chnagos

being propaned.

NW.68262 Docld:32989707 Page 165

.?.

---

## Page 166

.:'

Dac-10242

1SS24

32am22r0 120: 010270

1.22t."

Garde

Piloter Cin d00.

mordinern de noceed.

artist Cocht adt 60003

20301863D8wR

1/34/786

Paris

1CA Lodie 1/2/74

Cain tra

CanArden

inklinasi

F.i.

• 2.-

-.i..

1002 209 906366.

F61t81

...:"

...

216.

12.:.

calcue police ende Porte cocted dere ca

2079.20777

NW 68262 Docld:32989707 Page 166

---

## Page 167

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minrtodd

2.iC

.."

914 1012

11c.od8

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.

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w:tate". S/1"

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NW 68262 Docld:32989707 Page 167

---

## Page 168

.VO

1

=

LAUTH

:=---112..

Bunirtel

18/14/72

PAYEE

PERICD

COVERED

DATE

PAID

AMOUNE

PAID

TOTAL

PANNENTS

13

1%

-...

.....

21

NW:68262 Docld 32989707 Page 168

---

## Page 169

(EXHIBIT * 2)

BLUE SLIP

Date:

1-2-74

Place: -

(

t0_

ол

I certify that S.

Bob Roe Rent-a Car

1-2-74

entitler

doic

JOHN DOE;

BR-B

75.00

onount

ITEM NO.

1

was paid (per attached Form FD-221)

_ in connection with an official investigation

(AI 00-0000)

and that payment was made as explained below.

• Authority: -_3AC

(Buaircal 8/14/72)

Period Sovered: 1-2-74

Receipt Altached:

Yes

No

Have payments been made by other Offices? Do Yes a No

If Yes, list Offices under details.

Federal Income Tax Withheld S.

Services:

Expenses: $ 75.00

Total: $ 25.00

Details: liental of truck necessary

for a special surveillance in

captioned matter. Reculer fieid automotive squirment would not

suffice in this operation.

Approved:

Disapproved:

Assistan! Director

Administialive Division

NW 68262 Docld:32989707 Page 169

Signed.

/ s/

• Tille SAG UI ASAG

Approved

Special Agent in Cherge

---