Document date: 00/00/0000

## Page 1

File #:

62-40-116464

Serial Scope:

291-

331. 2rdNR 331-340

Released under the John F. Kennedy

Assassination Records Collection Act of

1992 (44 USC 2107 Note). Case#:NW

58486 Date: 11-30-2022

NW 68486 Docid:32989711

Page 1

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## Page 2

Memorandum

SaC 'D

SER

REC

To

The DirectowS f

Date 9/15/89

rome :

impaniona area minte

Subject :

PROPOSED MEETING WITH CONGRESSMAN JOHN ROWLAND (R-CT)

MEMBER HOUSE PERMANENT SELECT COMMITTEE ON INTELLIGENCE

(HPSCI)

House

PURPOSE: To advise of a tentatively scheduled meeting with

Congressman ROWLAND and to seek the DIRECTOR's approval for the

meeting.

DETAILS: On 8/10/89, Congressman ROWLAND, who was appointed to

HPSCI in January, 1989, visited the New York Office to learn more of

the FBI's effort in counterintelligence, counterterrorism, and drug

enforcement. During that visit, legislative initiatives

discussed.

There was not, however, sufficient time to discuss

counterintelligence legislative proposals.

Congressman ROWLAND thus

asked the Congressional Affairs Office (CAO) representative if a

follow-up meeting could be scheduled to discuss the FBI's counter-

intelligence legislative needs in September, 1989.

A briefing has tentatively been scheduled for 9/20/89 at

11 a.m. in

Room H405 - Capitol.

1. That SSAS MONTE C. STRAIT and JOHN S.

brief Congressman ROWLAND on 9/20/89 at 11 a.m

APPROVED:

Adm. Servs.

wss

* Director

Ident.

Off. of Lia.

_ & intl. Afts.

Exec. AD-Adm.

Intell.-

Rec. Mgmt.

Exec. AD-Inv._

_ Laboratory -

___ Tech. Servs..

ExeC. AD-LES -

- Legal Coun. .

- Training

That the Intelligence Division (INTD) designate a

representative from Special Staff to accompany CAO to the briefing.

APPROVED:

1

1

1

1

1 - Mr. Geer

- Mr. Baker

- Mr. Gallagher

- Mr. Klein

- Mr. Legeti

• Mr. Collinqwooc

- Mr. Rissler

- Mr. Strait

- Mr. Hooks

#: mme (12)

think

1.€

Adm. Servs.

- Off. of Cong.

Off. of Lia.

sals

WISH

Director

Exec. AD-Admit

Rec. Mgmt.

Laboratory

Tech. Servs.

Strast

Exec. AD-Inv._

Exec. AD-LES

— Legal Coun.

Training

lee 62-116-769-340

Garly

ROOM

7240

HOOKS,

T1-245

Exoc AD Adm. —

Exoc AD Inv

Exoc AD LES

Ass4. Dir.:

Adm. Servs.

Crime Inv.

ident. -

Insp.

Intell. -

Lab.

Legal Coun.

ff. Cong. &

Roc. Mgnt. -

Toch. Servs..

Training -

Telephone Rm.

Director's Sec'y -

* CID mill desigate a ropresentative.

Mit 68486 Dockd: 32989719 Page?

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## Page 3

Memorandum to the Director from the Congressional Affairs Office

RE:

PROPOSED MEETING WITH CONGRESSMAN JOHN ROWLAND (R-CT)

MEMBER HOUSE PERMANENT SELECT COMMITTEE ON INTELLIGENCE

(HPSCI)

3. That the DIRECTOR approve the meeting with Congressman

ROWLAND.

APPROVED:

• Inspection

Exec AD-Adm. Y

Exec. AD-Inv.-

Exec. AD-LES

& Intl. Affs. /L

Tech. Servs.

matter.

That SSA JOHN

S. HOOKS, JI.,

CAO, coordinate this

APPROVED:

Director

Exec. AD-LES

Adm. Servs.

— Legal Coun.

2

NW 68486

Docld:32989711 Page 3

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## Page 4

TO

FROM

SUBJECT:

UNITED STATES GOVERNMENT

-Memorandum

Mc. W. O. Cregar luot

SECRET

Mr, JemMmSturgis

REPORT ON

ALLEGATIONS APPEARING IN

OCTOBER 14

15, 1979, EDITIONS OF

THE (CHICACO SUN-TIMES NEWSPAPER.

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INVESTIGATION

DATE: 1/4/80

Exoc AD Adm.

Exoc AD Inv.

Exoc AD LES

Asst. Dir.:

: Adm. Servs..

: Crim. Iny..

Ident._

Intell.

• Laboratory:

.. Legal Coun.

Plan. & lnsp..

- Rec. Mgns. -

Tech. Servs. -

- Training -

_Public Affs. Off. -

Telephone Rm. -

[Directors Sacy -

to not

PURPOSE:

To respond to request of House Select Committee

on Intelligence request for further review of captioned

double agent case through preparation of a report which

analyzes value of information passed by the double agent

as compared with the value derived fröm the passage.

(S)

RECOMMENDATION:

That Intelligence Division, CI-2 Section, prepare

requested study for submission to Congressional Liaison,

Legal Counsel Division, for delivery to House Committee

prior to 1/23/80. (U)

APPROVED:

Director

Exec. AD-Inv.

Exec. AD-Adm._

Exec. AD-LES

Adm, Serv.

Crim.

Ident.

Intell.

DE-47

Legal Cour.

Plan. & Insp.

Rec. Mgnt.

Tech. Servs.,

Training

Public Affs. Off...

339.

1

1

1

- Mr. J. A. Mintz (Attn: Moschella)

- MT.

- MI.

- Mx.

Mr.

W.

0. Cregar

R.

T. Castonguay

R. O. L'Allier

J. M. Sturgis

MS : tmi

CONTINUED - OVER-

(6. 1980

SECRET

Classified and Extended by

25

Reason for Extension FCIM,

II, 1-2.4.2 (2, 3)

Date of Review.

ROUTE

for Declassification January 4, 2000

PI

FNWV.68486 Docld:32989711 Page 4

18:330

FBI/ DOJ

---

## Page 5

SECRET

Memorandum from Mic. J. M. Sturgis

to Mr. W. O. Cregar

Re: Report on Allegations Appearing in

October 14 - 15, 1979, Editions of

The Chicago Sun-Times Newspaper

DETAILS:

On 1/3/80, SAs Emil Moschella, Legal Counsel

on Intelligence, at his request, regarding the recent FBI

submission to the Committee of a review on analysis of the

case captioned "Report on Allegations Appearing in the

October 14, 15, 1979, Editions of the Chicago 'Sun-Times'

Newspaper; Review of Pending Federal Bureau of Investigation

(FBI) Double Agent Operations, October 1, 1977, to the

President." It is noted that

the Committee had taken

testimony on the matter of this double agent on October 16,

1979, and the Committee made several requests for information

in the area. (S)

Mr. Lattemer advised that it was the opinion of

one of the members that a piece of requested information

had not been directly addressed in our response and he

therefore made a request for the specific item. Mr. Lattemer

said that the item appears on pages 34 - 35 of the hearing

transcript and that the requested analysis should compare all

of the items passed by the double agent over the term of his

operation with the information received by the FBI from the

double agent so that one may be weighed against the other

in a kind of "cost/benefit ratio." (S)

Mr. Lattemer requested that the analysis be in his

hands prior to the first Committee meeting which is scheduled

for 1/23/80. (C)

SECRET

- 2 -

NW 68486 Docld:32989711 Page 5

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## Page 6

4-528

62-11464-338

CHANGED TO

62-117768-5241

MAR 1L 1909

BIT

Nw 68486 Dockd: 32989711 Paged

FBI/DOJ

---

## Page 7

4-528

62-16464-337

CHANGED TO

62511 7121-2514

JAN 22 1979

NBH IBDG

NW 68486 Docld:32989711 Page 7

---

## Page 8

ro

UNITED STATES GOVE

WENT

Memorandum

The Director

FROM : Legal Counse

UNITED STATES DEP

FEDERAL BURBAL I

ENT OF JUSTI

VESTIGATION

DATE:

10/24/79

Exoc AD Adm..

Exec AD Inv.

ExOC AD LES

Asst. Dir.:

Adm. Servs...-

Crim. Inv.

Ident. -

SUBJECT:

JURISDICTION OF: THE

MOUSE JUDICIARY COMMITTEE AND. THE

CHOUSE SELECT COMMITTEE ON INTELLIGENCE

PURPOSE:

The purpose of this memorandum is to advise you

of the jurisdiction of the captioned Committees relative

to the FBI.

DETAILS:

In connection with Assistant Director William O

Cregar's briefing of the Subcommittee on Civil and Constitutiona_

Rights, House Judiciary Committee, you raised a question as

to the need for such a briefing.

In part, the need is based

pon the jurisdiction of the Judiciary Committee of which

the Subcommittee on Civil and Constitutional Rights is a

part.

Rule x, Rules of the House of Representatives (R.H.R.),

96th

Congres's

jurisdiction of standing

committees (portions applicable to

the House Judiciary Committee attached).

According to

Rule X, cl 1, R.H.R., 96th Congress (1978),

"There shall be in the House the following

standing committees, each of which shall have

the jurisdiction and related functions assignec

to it by this clause and' clauses 2, 3, and 4;

and all bills, resolutions, and other matters

relating to subjects within the jurisdiction of

any standing committee as listed in this clause

shall (in accordance with and subject to clause

5) be referred to such committees, as follows:"

• Enclosures

62-116464

1 - Mr. Hotis

45 522

1 - Mr. Steel

1

2

- Mr. Cregar

32 N9 75 3379-3

- Mr. Moschella

1 - Mr.

Bassett

TAB: cah,

(7)

CONTINUED - OVER

- 96529-

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

FBI/DOJ

60 N0: 15 19/8

NW 68486 Docld:32989711 Page 8

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## Page 9

Memorandum from Legal Counsel to the Director

Re:

JURISDICTION OF THE

HOUSE JUDICIARY COMMITTEE AND THE

HOUSE SELECT COMMITTEE ON INTELLIGENCE

The specific areas of jurisdiction of the House Judiciary

Committee applicable to this matter are set forth as follows

at Rule X, cl 1(m), R.H.R., 96th Congress (1978) as

follows:

•

"(3)

Bankruptcy, mutiny, espionage and

counterfeiting."

"(4) Civil liberties."•

"(7) Immigration and naturalization."

"(19) Communist and other subversive activities

affecting the internal security of the

United States.

Rule X, c1 2(b) (1), R.H.R., 96th Congress (1978)

mandates generally the oversight responsibilities

for standing.

committees.

Among these responsibilities is the responsibility

for monitoring Federal agençies and entities within the

committee's jurisdiction to insure that laws and programs

are being implemented and carried out in accordance with

the intent of Congress.

Rule XLVIII, R.H.R., 96th Congress (1978), (attached)

establishes the Permanent Select Committee on Intelligence

and sets forth the Committee's responsibilities.

XLVIII, cl 2(a) and 2(a) (2), R.H.R., 96th Congress (19/8)

sets forth the Committee's interest

in matters relating to

the Bureau as follows:.

"2. (a) There shall be.referred to the select com-

nittee all proposed Legislation, messages, peti-

tions,

memorials, and other matters relating to

the following:

(2) Intelligence and intelligence-related

activites of all other departments and agen-

cles of the Government, including, but not

related activities of the Defense Intelligence

Agency, the National Security Agency, and

other agencies of the Department of Defense;

the Department of State; the Department

ot Justice; and the Department of the

Treasury."

•:-2-

CONTINUED - OVER

NW 68486 Docld:32989711 Page 9

---

## Page 10

Memorandum from

Re:

gal Counsel to the Direc

JURISDICTION OF THE

HOUSE JUDICIARY COMMITTEE AND THE

HOUSE SELECT COMMITTEE ON INTELLIGENCE

'Congress" (1978) states

Rule XLVIII, c1 2(c) and 2(d), R.H.R:, 96th

as follows that that rule does not

limit the authority of other committees to review intelligence

matters within their jurisdiction:

"(c) Nothing in this rule shall be construed as

prohibiting or otherwise restricting the authority

of any other committee.to study and review any

intelligence or intelligence-related activity to

the extent that such activity directly affects a

matter otherwise within, the jurisdiction of such

committee.

(d) Nothing in the rule shall be construed as

ammending

or otherwise changing the au-

thority of any standing

committee of the House

to öbtain full and prompt'access to the product

of the irtelligence and intelligence-related activi-

ties of any department or agency of the Govern-:

ment relevant to a matter otherwise within the

jurisdiction of

such committee."

RECOMMENDATIONS.

None, for information only.

"i';

....

C...

1'."

1: '

L.:

3

NW 68486 Docld:32989711 Page 10

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## Page 11

6-22

A no to "l

ice?

FD-36 (Rev. 8-26-82)

TRANSMIT VIA:

• Teletype

Facsimile

FBI

PRECEDENCE:

• Immediate

Priority.

Routine

PITAINED IN

ON SUB UNIT BOR

AIRIEL

CONFIDENTIAL

CLASSIFICATION:

• TOP SECRET

SECRET

CONFIDENTIAL

UNCLAS E F TO

UNCLAS

Date _6/10/83

TO:

DIRECTOR, FBI ATTN:

CHIEF, LIAISON UNIT. INTD

FROM:

LEGAT, TOKYO (80-6)

30622008

‹VISIT OF MEMBERS OF /JAPANESE DIET TO WASHINGTON, D.C.,

MAY 1983,HOUSE SELECI COMMITTEE ON INTETLIGENCE

FIM: JAPAN

THIS ENTIRE AIRTEL IS CLASSIFIED CONFIDENTIAL

EXCEPT WHERE OTHERWISE NOTED:

(Ụ-)

ReTortel, 6/9/83, captioned as above,

Inclosed for rBino are three (3) copies of the

Following newspapers which have arutcles on the above-captioned

mattere

May

190

May 19.

May

May,

1983

i Sankey newspaper

1983 Mainicht Evening News:

1983

Tokyo Evening Newsit

4a83 seki Nippo News.

1983 Yom ur newspaper?

1983 Asanite newspapes

REQUESA! OFCE BEHO

ros requested that tanstation unity taboratory Disto

pronetly

transtate enclosed articles and furash. translathon. to

Assistant Director, INTD.

COME IĐEAN

classified bys

Declassify

8820

OADR

NOT INCOSDEN

45. 300 7 153

tHe (ones 4o) arvard

translation

unit

Tokyo

INDEX EDG

(4)

Approveds

68486 Docld 32989711 Page 1F

Transmitted

(Number)

Per.

SOVE

(Time):

ORIGINAL FILED IN

---

## Page 12

62-11640

NW 68486 Docid:32989711 Page 12

---

## Page 13

4-720 (7-11-77)

Top Secret Control Number

Originator of Material

Letter

LHM

Report

Teletype

Airtel

Memo

Other enc:

Captioned:

H.C. 78-1472.

Welliam

O. Creger

(FBI field division, FBIHQ or outside agency)

Date of Mail 6/22/78

'Narese Study

This serial is under the control of the Top Secret Control Officer located

in the Document Classification Office.

Authority - 62-116065

File number

62-116464-336

PERMANENT SERIAL CHARGE-OUT

FBI/DOS

Ni 68486 Dold: 32989711 Page 13

---

## Page 14

TO

FROM

SUBJECT:

OPTIONAL FORM NO, 10

MAY 1852 EDITION

= GSA FEMA (41 CARR) 101-11.8

UNITED STATES GOVERNMENT

Memorandum

: DIRECTOR, FBI (62-116464) •

AEGAT, MANTIA (62-25) (RUC)

FBI SEAL FOR HEARING ROOM

OF HOUSE SELECT COMMITTEE

ON INTELLIGENCE (HSCI)

LIAISON MATTER

sis your a

DATE:

5/31/78

ReMANlet, 4/20/78.

Requested seal was forwarded attention Intelligence

Division, CI-3 Section on 5/26/78.

-=

3 poureau

(1-Foreign Liaison Unit)

1 - Manila

GFE:jmp

(4)

EX-125

REC-65

60.114424. 335

8L6L 9 Nn Oz

poster

3+/F

BNWRECORDED COPY FED + 66-5508-

NW 6

5j 1 JUM M 81978

4 Docld:32989711 Page$4Savings Bonds Regularly on the Payroll Savings Plan

---

## Page 15

May 10, 1978

MEMORANDUM TO MESSRS. ADAMS

MC DERMOTT

Prior to the closed session meeting of the House

Intelligence Cormittee at 3:30 p.m. this afternoon I advised

the Attorney General that, as a result of the recent

inspection of the lew York Office, ve had discovered that

sometiretap records were not kept in accordance with regula-

cion's with the result that the indices may have been in-

complete at the time that affidavits were submitted on the

question of thecher various individuals had or had not been

overheard during such taps.

I told him that our tentative

assessment was that ve would find very few additional names

but that it would take considerable effort to nail it down.

This prompted the Attorney General to tell me that

he understood Mx. LaPrade had testified or been interviewed

on the Hill regarding his foreign counterintelligence concerns

and at that tine described a procedure which worried him.

stated that in making caps on Telex lines the company (RCA)

would not cooperate and it was theretore necessary for the

Special Agent to run tests on various lines until he found

that in making a te as therefore

the Telex.

Judge Bell drew the inference that the Agents

necessarily had to overhear conversations or messages on other

this may not be the case.

ting ay not the case. process uld ascerstan exactly a that

the practice is and what the rob REc we

Please keep me advisition the indices problen.

1194510-334

E3 MAY 81 1973

Assoc. Dir.

Dep. AD Adm.

Dep. AD Inv..

Asst. Dir::

Adm. Servs.

Crim: Inv..

Ident.

WHW: aga

Intell.

Laborafory

Legal Coun.

Plan. & Insp.

Rec. Mgnt.

Tech. Servs.

Training

ublic Affs. Off. -

Mlephone Rm..

di.y

"rector's Sed y

MARO NO

1978

NW 68400 Docld:32989711 Page 15

Milliam H. Webster

Director

SENT FROM D. O.

TIMD

DATE

BY

S/198

FBI/DOJ

---

## Page 16

FROM

SUBJECT:

OPTIONAL FORM NO, 10

1 MAY IN EDITION

PRESA FPMM (11 CT) 101-11.8

UNITED STATES GOVERNMENT

Memorandum

: DIRECTOR, FBI (62-116464)

LEGAT, MANILA (62-25) (P)

FBI SEAL FOR HEARING ROOM

OF HOUSE SELECT COMMITTEE

ON INTELLIGENCE (HSCI)

LIAISON MATTER

DATE:

4/20/78

ReBulet, 2/6/78.

Requested seal has been carved and is being painted.

Legat expects delivery within the week and will forward promptly.

i li

3 ureau

(1-Foreign Liaison Unit)

1 - Manila

GFE:jmp

(4)

REC- 13

62-116444-3335

S2128

EZ MAY 2 1978

ff8.

7A MAY 2 3 1978

Decid:3298971 B49 JeGgSavings Bonds Regularly on the Payroll Savings Plan

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## Page 17

1 - Mr. J. S. Leo (Liaison

1 - Mr. R. J. Gray, Jr.

2/6/78

• LEGAT, Manila

Director, FBI (62-116464)

FBI SEAL FOR HEARING ROOM

OF HOUSE SELECT COMMITTEE

ON INTELLIGENCE (HSCI);

LIAISON MATTER

The HSCI exercises oversight over the FBI and other

members of the Intelligence Community (IC). Its hearing room is

decorated with the seals of the other members of the IC. All are

15 inches in diameter. Available FBI seals are either 9 inches or

21 inches in diameter. In order to furnish a 15-inch wooden FBI

seal to the FISCI, you are requested to determine whether a carved

seal can be procured in the Philippines for $50 or less. If so,

arrange to have one seal carved. You may loan the 21-inch seal in

your office to the woodcarvers temporarily for this purpose.

If you are able to obtain the desired seal, forward it to

the Intelligence Division, Attention CI-3 Section.

(5)

NOTE:

Procurement of seal authorized by T. W. Leavitt to

Assoc. Dir. -

Asst. Dir.:

Adm. Serv. -

Crim. Inv.

Fin. & Pers.

Ident.

Intell.

Laboratory

Legal Coun.

Plan. & Insp.

Rec. Mgnt. -

Spec. Inv.

Tech. Servs.

Training -

Public Affs. Off._

Telephone Rm.

Director's Sequ

E848

FEB 7 1978

FBI

62-116444-332

20г.:

3178

ALGROOM

11 Page 17

TELETYPE UNIT D

FBI/DOJ

---

## Page 18

TO

STIONAL FORM NO. 10

AÀ FPMR 141 '

* 101-11.5

ENITED STATES GOVERNMENT

:Mr. T. W. Leavitt

Memorand um

FROM :R. J. Gray, Jr.

SUBJECT: APPEARANCES BEFORE SENATE

AND HOUSE SELECT COMMITTEES

ON INTELLIGENCE

DATE: 1/6/78

C• teter soi

Sullivar

Fin. & Pors.

ident.

Intall. Iwe

Laboratory

Legal Coun. -

Plan. & Insp. -

Rec Mgnt.

Spec. Inv.

Troch, Serviz

Training-

Public Affs. Off..

Telophone Rm. -

Director's Sec'y-

PURPOSE:

atonatuly

To recommend priority attention be given to preparation of

video tapes which are to support presentations before Senate and House

Select Committees on Intelligence during January ard February, 1978.

DETAILS:

During early February, 1978, an appearance by either

Deputy Associate Director James B. Adams or Assistant Director

T. W. Leavitt is planned before the Senate Select Committee on Intelligence;

in addition, the House Select Committee on Intelligence will be similarly

briefed in the near future. In order to dramatize graphically the constant

threat to national security posed by Hostile Intelligence Services, a video-

tape presentation of approximately 20 minutes is felt to be most desirable,

Senate staff members have specifically requested such a film as one of

the most effective ways to dramatize our problems for the Senators.

at the present time, the instructional Technological Services

Staff, Training Division, have advised the Intelligence Division (INTD)

they have a number of important projects; but, in view of the short dead~

lines for the preparation of a suitable presentation, INTD believes that

this project should be given priority status.

RECOMMENDATION:

62-116464-

NOT RECORDED

167, FEB 2 1978

That the Instructional Technoiogical Services

Training

Division, provide priority sei viceto to projecto u

RJG:ifc

Eliarier-

No dr kit

Day. do 1

Pun

Lite.

FEB 08/978 yE.S. Savings Bonds Reginaly on the Paroll Savings Plan

3010•110

NW 68486 Docld:32989711

Page 18

Trainis

FBI/DOJ

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## Page 19

TO

*, OPTIONAL FORM NO, 10

JULY 1973 EDITION

GSA FPMR (41 CFR) 101-11,6

UNITED STATES GOVERNMENT

Memorandum

Mr. J. B. Adam's

FROM :I. W. Leavitt Mil

SUBJECT: FBI SEAL FOR HEARING ROOM

OF HOUSE SELECT COMMITTEE

ON INTELLIGENCE (HSCI)

PURPOSE:

- Mr.

- Mr: 1: B: Adar

B.

Adams

- Mr. J

• McDermott

- MAth: - 4731/0

Kelleher, Jr.

I = Mr: R: F. drey, tr.

Assoc. Dir. -

Dep. AD Adm. -

Dep. AD Inv. _

Asst. Dir.:

Adm. Sorv..

Crim. Inv.

Fin. & Por

Ident. T

Intell.

Laboratory

Logal Coun.

Plan. & Insp. -

Rec. Mgnt. -

Spec. Inv. -

Toch. Servs.-

Training -

Public Affs. Off._

Telephone Rm. -

Director's Sec'y-

To confirm Director's authorization to prepare hand-painted

FBl seal suitable for mounting on wall of the hearing room (H-405) of

the HSCI.

DETAILS:

During testimony before the HSCI on 1/19/78, the Committee

Chairman, Rep. Edward P. Boland, requested that I arrange for an FBI

seal to be placed on the wall together with the seals of the other five

members of the Intelligence Community which are already there.

The seals of the other agencies are all 15' in diameter.

Available FBI seals are either 9" (all gold) or 21" (full color) in diameter.

The Director orally authorized the hand painting of a 9" seal to be mounted

on a 15" wooden base appropriately finished. The Special Projects Section,

Laboratory Division, has observed seals now in the hearing room and can

prepare a suitable FBI seal and base.

To obtain a 15' seal presenting an appearance more comparable •

to the other seals through regular channels would be prohibitively expensive.

Making a mold, alone, would cost about $1, 000. However, a hand-carved

15" seal can be made in the Philippines through Legat, Manila. The cost

would probably run less than $50. The time to obtain would run 60-90 days

and it is, therefore, not a viable alternative to installing, initially, the

g" seal on 15"' base but offers a better long-range solution to the HSCI

Chairman's request.

REC-54 Til 178

TWL/RJG;ifc &

P(7)

611954-33/

CONTINUED - OVER 20 FEB © 1073

FEB 27

1978

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

5010-110

NW 68486 -Doeld.5298

FBI/DOJ

Ray

---

## Page 20

Memorandum to Mr. J. B: Adams

Re: FBI Seal for Hearing Room of

House Select Committee on Intelligence (HSCI)

RECOMMENDATIONS:

(1) That Special Projects Section mount a hand-painted

g' FBI seal on a 15" wooden base.

APPROVEDI

Cii? !:

Diresta.

Asses di

Fuses tito tale

(2) That Legat, Manila, be instructed to have a 15" seal

carved and painted if it can be done for no more than $50.

APPROVED:

Acm, Serve

Criza, lin's

Director-

3ssgtr thien

on Aà 222 MCD The

Laboratory-

Lagal Coul

Flan, & 1175.

F20 3825844

8 80 195 a

Fate sit Often

Pus

-2 -

NW 68486 Docld:32989711 Page 20

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## Page 21

4-528

MAR 2 1 1989

ABIT

NW 68486 Docld:32989711 Page 21

62-116464-330

CHANGED TO

+2-117768-2043

FBI/DOJ

---

## Page 22

Oftie of the Attorney General

Washington, A. 0. 20530

Co

MEMORANDUM

To: Clarence M. Kelley

Director

Federal Bureau of Investigation

From: Griffin B. Bell

Attorney General

Subject: Background Investigations for House Permanent

Select Committee on Intelligence

Chairman of the

I have sigped a Memorandum, of Understanding with the

House Permanent Select Committee on

Intelligence providing for the

conduct of background

Investigations of Committee staff members whose duties

require that they have access to classified information.

The Memorandum was also signed by the Chairman of the

Committee on August 2, 1977.

I hereby authorize you to

conduct the appropriate background investigations in

accordance with the terms of the Memorandum of Understanding.

REC-1

Griffin B. Bell

Attorney General

ENCLOSINY®

62-116-444-329

AUG 23 1977

79 SEP 0919774

NW 68486 Docld:32989711 Page 22

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NW 68486 Docld:32989711 Page 23

ENCLOSURE

#:: 116454-329

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## Page 24

INTRODUCTION TO MEMORANDUM OF UNDERSTANDING

In order that the Attorney General may fulfill the

official responsibilities imposed upon the Department of

Justice by Executive Order 11652 to insure that persons

to whom the Department of Justice furnishes information

classified in the interest of national security have been

determined to be trustworthy, and in order to assure that

the staff of the House Permanent Select Committee on

Intelligence may have access to material of the Department

of Justice necessary to assist the Committee in carrying

out its responsibilities under House Resolution 658 of

the 95th Congress, the Attorney General and the Chairman

of the Committee have entered. into the following agree-

ment concerning background investigations of proposed

Committee staff, pursuant to 28 U.S.C. 533(3), to obtain

the information

necessary for the Committee to make the

trustworthiness determination required to clear staff

members for access to information of the Department of

Justice classified in the interest of national security.

86-Joeld e20397M-pag

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## Page 25

MEMORANDUM OF UNDERSTANDING

FEDERAL BUREAU OF INVESTIGATION BACKGROUND INVESTIGATIONS

FOR THE HOUSE PERMANENT SELECT COMMITTEE ON INTELLIGENCE (HPSCI)

The Federal Bureau of Investigation (FBI) will conduct

background investigations

at the request of the Chairman

of HPSCI •of

applicants, employees or any persons engaged

by

contract or otherwise to perform services for the HPSCI.

These investigations shall only be conducted pursuant to

the agreement between the Attorney General and the HP.SCI to

ascertain facts and information relevant to the applicant's

or employee's suitability for employment and to their

trustworthiness for clearance for access to information

classified under the provisions of Executive Order 11652

and where necessary for clearance for access to compart-

mented information in accordance with the standards set

forth in Director of Central

Intelligence Directive 1/14.

Requests for investigations by the FBI shall be made

in writing from the Committee Chairman

to the Director of the FBI enclosing a completed Standard

Form 86 (Security Investigation Data for Sensitive Position)

which provides

the necessary background data and a set of

the individual's fingerprints for a check of FBI Identification

Records.

To enable the FBI to comply with Section (e) (3) •

of the Federal Privacy Act of 1974 and in keeping with the

spirit of this Act, the request shall be accompanied by

a statement signed

by the subject of the investigation

acknowledging that he or she has consented to the

investigation with the

knowledge that facts or information

gathered shall be retained consistent with the FBI Records

Retention Plan.

HPSCI is to secure signed releases from the person under

investigation authorizing the FBI to review educational,

credit, and employment records. If a person furnishes

information disclosing a medical problem or if such

information is developed through investigation, the FBI

will advise the HPSCI. The HPSCI will advise whether

further investigation is desired and will either furnish

capson i the neck.

to the FBI a release to review necessary medical records

and interview the physician or advise if it desires the

FBI to contact the persons under investigation for the

appropriate medical releases.

HAW 68486 Docld:32989711 Page 25

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## Page 26

MEMORANDUM OF UNDERSTANDING

Page 2

Subject to the Federal Privacy Act of 1974, persons

interviewed during

these investigations may be assured that

to the extent permitted by law information identifying

such

persons will be kept confidential.

The FBI will

furnish summary memoranda and supporting

materials containing the results of its investigation to

the Committee Chairman or his designated representative

and retain a record of the person to whom such information

is furnished.

The Committee Chairman will insure that

access to these summary memoranda and supporting materials

is restricted to persons directly involved in making a

determination as to the person's suitability for employment

by the HPSCI and trustworthiness

for access to classified

information. The HPSCI shall maintain records of the

identities of persons receiving access to the aforementioned

materials and

such records shall be furnished to the FBI

upon request.

The HPSCI shall not reproduce or disseminate

any of the aforementioned materials without the express

consent of the FBI unless otherwise provided for in this

agreement.

The Chairman will insure that summary memoranda and

supporting materials and any copies will be destroyed within

ninety (90) days of their receipt unless written notice

has been given to the Director that an additional period

of time, not exceeding ninety (90) days, is needed to

complete

a decision relating to employment or clearance.

The Chairman will notify the Director of the FBI when

these materials have been destroyed pursuant to this

paragraph.

Under no circumstances should the HPSCI allow the

person who is the subject of an investigation direct access

summary memorandum and supporting material.

necessary to discuss the contents of the summary memorandum

and supporting material with the applicant or employee the

HPSCI will insure that the confidentiality of the sources

contained therein is protected. Any request by the

individual for access

to the memorandum will be referred

to the FBI for processing in accordance with the Privacy

Act of 1974.

NW 68486 Docld:32989711 Page 26

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## Page 27

MEMORANDUM OF UNDERSTANDING

Page 3

Information obtained during a background investigation

will be retained at FBI Headquarters and FBI field offices

in accordance with the FBI Records Retention Plan. The

Director of the FBI will insure that access to investigatory

files, compiled pursuant to this agreement, is limited

to FBI personnel who require it for the conduct of their

official responsibilities.

The FBI will inform the Chairman or his designated

representative of any adverse information developed during

the

original background investigation. The FBI will also

provide the Chairman or his designated representative with

any adverse information and

supporting materials which sub-

sequently come to the. attention of the EBl that question

the suitability or trustworthiness of any employee or any

person engaged by contract or otherwise to perform services

for the HPSCI. Upon such notification and upon request by the

HPSCI, the HPSCI shall have access to the summary memoranda

and suppoting materials from the original background inves-

tigation.

Information obtained during background investigations

conducted pursuant to this agreement will not be dissemi-

nated outside the FBI except when necessary to..fulfill

obligations imposed by law, FBI regulation or presidential

directive or executive order.

When a request is received

from a Federal agency for background information concerning

a current employee or contractor of the HPSCI, if the

individual concerned has given written consent authorizing

the HPSCI to be notified, the FBI will notify the HPSCI

of the request for background information, except where

the request concerns the individual's employment applica-

tion to the agency requesting the background information.

Notification by the FBI to the HPSCI will not extend

to a

criminal or national security investigation until it is

determined that notification would not impede or compromise

the investigation.

When

a tentative decision is made to employ an'

individual, the Chairman or his designated representative

shall furnish a copy of the aforementioned summary memoranda

and supporting materials to the Director of Central

Intelligence (DCI). The DCI will insure that the summary

memoranda and supporting materials furnished to the DCI

pursuant to this agreement will be returned to the HPSCI

within ninety (90) days of its receipt.

Page.

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## Page 28

*MEMORANDUM OF UNDERSTANDING

...1.

Page 4

No person employed by the Committee shall be given

access to any classified information or material until

appropriate procedures for granting clearance for access

to classified information have been established and

clearance granted.

The HPSCI will provide the FBI and the

DCI with a list of persons cleared for access to classified

information and HPSCI will advise the FBI and DCI when an

individual granted a clearance terminates employment with

the HPSCI.

rippin 3. Bice

GRIFFIN B. BELL

Attorney General

Dated: Guy. 12, 1907

WARD

Chairman

Dated: Anguit 2, 1977

86 Doc de 2989711 Page 28,

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## Page 29

TO

OPTY NAS FOINE. 10

GSA FPMR

POR TON

CFRI 101-11.6

UNITED STATES GOVERNMENT

Memorandum

: The Associate Dis

ector

Assoc. Dir. -

• Dep. AD Adm. -

Dep. AD Inv. _

Asst. Dir.:

Adm. Serv.—

Crim. Inv. -

Fin. & Pors. _

Ident..

DATE: 8/16/77

ron: Lesal counsel.

SUBJECT: HOUSE PERMANENT SELECT

COMMITTEE ON INTELLTGENCE

PURPOSE:

To advise Attorney General has signed agreement

with Chairman of captioned Committee concerning FBI's

conducting of background investigations for conmittee staff

members..

DETAILS:

Attached is a copy of a memorandum from the Attorney

General to the Director and a memorandum of understanding

signed by the Attorney General and Chairman Edward P. Boland

of captioned Committee.

The memorandum from the Attorney

General authorizes the

• FBI to conduct background investigations

of staff members of captioned Committee in accordance with

the memorandum of understanding.

We have at this time received

*request to conduct a background investigation for Michael

O'Neil, who will be Counsel for the Committee, as well as

anjoral request which will be confirmed in writing along with

other necessary papers to conduct investigation for Thomas K.

Latimer.

Mr. Latimer will be Staff Director for captioned

Committee.

1-27

:!

RECOMMENDATION:

For information.

ST 104

Enclosure

REC, 62-1.6904.328

1 - Mr. Adams - Enclosure

1

- Mr. Leavitt - Enclosure

1

- MI.

Moore - Enclosure

- Mr.

Mintz. - Enclosure

1

- Mr.

Monahan - Enclosure

1

- Mr.

Hurst - Enclosure

2

- Mr •

Daly - Enclosure

APPROVED:

Adi. Serve

Grim. Inve

Director.

Assoc. Dir. JOTO

Fin, & Pars.

Legal dow

Plane & lie

Hes Mgmie

Suas. 19V2

inters hair

Dop. AD Inv

a Laboratory

Training.

(9):

Spec. Inv.

Tech. Servs. -

Training —

Public Affs. Off.-

Tolephone Rm. —

Director's Sec'y -

11-00

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

5010-110

NW 68458 0601407989711 Page 29

FBI/DOJ

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## Page 30

4-528

116404-227

CHANCEN TO

62-117768-X

MAR 2 1 1989

ABIF

22L

FBI/ DOJ

NW 68486 Docld:32989711 Page 30

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## Page 31

Mr. T. W. Leavitt

R. J. Gray, Jr.

SENSTUDY 75; HOUSTUDY

Leavitt

1 - Mr. H. N. Bassett

(Attn: R. L. O1sen)

1 - Mr. A. J. Decker

6/9/77

1

Attn.

1 - Mr. R.

J. Gray

1 - Мг.

S. J. Miller

PURPOSE AND DETAILS:

This is to advise that both captioned files, all

enclosures, ticklers, request folders, and other supporting

material, formerly naintained in Room 3859, have beon moved

Room 8988, J. Edgar Hoover Building, and placed in the custody

of SA John C. Lawn.

' All Intelligence Division personnel and property have

boen withdrawn from

Room 3859.

RECONMENDATION:

captioned files and supporting material bo nain-

tained in Roon 8988 and that appropriate Records Management

Division personnol bo advised of this relocation.

11 - 02-116404 (HOUSTUDY)

1 - 6Z 110575 (SENSTUDY 75)

SJM: ded

(9)

THICKNAR

10. 144%--

NOT RECORDaI

167 JUN 17 1977

1 OZ N 2307 go 31

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## Page 32

1 - Mr. A. J. Decker

(Attn: #.

Lo Bailey/

Lo " Brady)

6/30/76

1 - Mr. T. I. Leavitt

2 - Mr. S. F. Phillips

Mr. T. H. Leavitt

S. F. Phillips

SENSTUDY 75

Bufile: 62-116395

HOUSTUDY

Bufile: 62-116464

This informative memorandum to advise of start of

"wrap-up" project in connection with files, tickler folders,

special indices and other material relating to captioned

matters.

1:

With the end of the mandates of the Senate and House

the

work relating to the two Cormittees

has, with the exception of a few loose ends, come to an end.

two remaining clerks in the SENSTUDY 75 Project along with the

vriter, are now primarily engaged in a "wrap-up

project

consisting mainly of the following:

(1) complete

preparation on a continuing basis and which will provide for ready

ins bestal

a special indices which has been in

identitication of all documents rurnished to the Select

Committees:

(2) after consultation with Messrs. l. L. Bailey and

L. W. Brady and key clerical personnel of the Records Management

Divisiont we have launched a step-by-step effort which vill

provide

(A) integration into the files themselves of

copies of voluminous documents which were delivered and/or given

access

to the Cormittees.

These documents for the most part have

heretofore been maintained with our tickler folders.

(P) appropriate filing of I2 folders containing

voluminous public source information such as newspaper clippings,

wice service excerpts and magazine clippings.

(A separate

memorandum is being prepared on this matter.)

SFP :lek

12-11s

(6)

CONTINUED - OVER

NOT RECORDED

48 JUL 15 1976

FILED

ORIGINAL

84 JAN 5 1978°

NW 68486 Docld:32989711 Page 32

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## Page 33

Memorandum to Mr. T. W. Leavitt

Re:

SENSTUDY 75

Bufile:

62-116395

HOUSTUDY

Bufile:

62-116464

(C) identify all documents delivered and/or

ed a no a cel co the Cond pose to cone to notations

(D) indices matters--integration of special

SENSTUDY 75 indices into Bureau's General Indices;

permanent"

retention of special indices.

(Separate memorandum to provide

for necessary approval of procedures to be worked out, to be

submitted.)

(E) "permanent" retention of tickler folders.

ACTION:

None. For information and record purposes.

= 2-

NW 68486 Docld:32989711 Page 33

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## Page 34

OFTIONAL FORA NO."

MAY 1962 EDITION

GSA FPMR (41 CFR) 1%

UNITED STATUS

GOVERNMENT

Memorandum

TO

: The Associate Dirt

FROM : Legal Counself fin

SUBJECT:

HOUSE RESOLUTION 82

95TH CONGRESS, FIRST SESSION

DATE: 1/17/77

3651

Assoc. Dir.-

Dep. AD Adm. -

Dep. AD Inv.-

Asst. Dir.:

Adm. Sorv..

Ext. Affairs

Fin. & Pors.

Gon. Inv.-

Idont.

Inspection -

Intoll. -

Laboratory

Legal Coy

Plan. & 6

Rec. Mgnl

Spec. Inv.

Training

Telophone Rm..

Director Sec'y

The purpose of this memorandum is to advise that

Congressman Charles E. Bennett (Florida) submitted House Resolution 82

(copy attached) on 1/4/77.

DETAILS:

House

On 1/4/77, Congressman Charles E. Bennett (Florida) submitted

House Resolution 82, the purpose being to establish a new select committee

of the House to be known as the Select Committee on Intelligence, to oversee

and make studies of intelligence activities and programs of the United States

Government. This Resolution is similar in nature to Senate Resolution 400,

94th Congress, Second Session, which created the Senate Select Committee

on Intelligence. If created by the House, this Committee would obtain o

annual reports from the Director of the CIA, the Secretary of State, Secre-

tary of Defense, and the Director of the FBI concerning intelligence activities.

This Committee would also submit to the Committee on the Budget views

and estimates regarding matters within the jurisdiction of this Select Committee.

This Select Committee would also require the head of each

department and agency of the United States to keep the Select Committee

fully and currently informed with respect to intelligence activities, including

any significant anticipated activity, provided that it did not constitute a

condition precedent to tho implementation of any such anticipated a gence

Enolosure) _ ENOLOSURET-105/

REC 5062-116464

JAN 28 1977

I - Mr. Adams (enc.)

1 - Mr. Gallagher (enc.)

1 - Mr. Mintz (enc.)

3 - Mr. Daly (enc.)

1 - Mr. Coulson (enc.)

DOC:jsr (9)

CONTINUED - OVER

NW

2.2

Hocld:

Baye Yof. Savings Bonds Regularly on the Payroll Savings Plan

FBI/DOJ

---

## Page 35

Legal Counsel to the Associate Director Memo

RE: HOUSE RESOLUTION 82

95TH CONGRESS, FIRST SESSION

Page 9, line 1, of this Resolution provides " that the head of

any department or agency of the United States involved in any intelligence

activities should furnish any information or document in the possession,

custody, or control of the department or agency, or person paid by such

department or agency whenever requested by the select committee with

respect to any matter within such committee's jurisdiction." It should be

noted that Senate Resolution 400, 94th Congress, Second Session, was

silent regarding this type of access. This Select Committee would also

look into the desirability of establishing a standing committee of the House

on Intelligence Activities, the desirability of establishing a joint committee

of the Senate and the House of Representatives on intelligence activities, or

of establishing procedures under which separate committee on intelligence

activities of the two Houses of Congress would receive joint briefings by

the intelligence agencies and coordinate their policies with respect to

safeguarding of sensitive intelligence information.

This Resolution was referred to the Committee on Rules for

consideration.

RECOMMENDATION:

That the Office of Congressional Affairs, Legal Counsel Division,

will follow the deliberations concerning the creation of the House Select

Committee on Intelligence.

APPROVED:

Diractor.

Dep. AD lamen

Adm. Serv..

Ext. Affairs...

Ident...

Intell. VE

Plan. & Insp

S. &T. SorV.....

Sp3G. INV.........._

Training..

-2-

NW 68486 Docld:32989711 Page 35

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NW. 68486 Docld:32989711 Page 36'

62-116-464-326

ENCLOSURE.

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## Page 37

8.

1 there has been a significant breach of confidentiality or un-

2 authorized disclosure by a Member, officer, or employee of

3 the House, it shall report its findings to the House and recom-

4 mend appropriate action such as censure, removal from com-

mittee membership, or expulsion from the House, in the case

6 of a Member, or removal from affice or employment or pun-

7. ishment for contempt, in the case of an officer or employee.

8': SEc. 8. The select committee is authorized to permit any

9 personal representative of the President, designated by the

10 President to serve as a liaison to such committee, to attend

11 any closed meeting of such committee.

12

SEC. 9. All records, files, documents, and other mate-

13: rials in the possession, custody, or control of the House Se-

14 lect Committee on Intelligence established during the

15

Ninety-fourth Congress, under appropriate conditions estab-

If lished by it, shall be transferred to the select committee.

17.

Sao. 10: (2). It is the sense of the House that the head

18 of each department and agency of the United States should

19 keep the select committee fully and currently informed with

20 respect to intelligence

activities, including any significant

2I anticipated activities, which are the responsibility of or en-

22: gaged in by sich department or agency: Provided, That this

28 does not constitute a condition precedent to the implementa-

24 tion of any such anticipated intelligence activity.

NW 68486 Docld:32989711 Page 37

9.

1

(b) It is the sense of the House that the head of any

2 department or agency of the United States involved in any

3 intelligence activities should furnish any information or docu-

4 ment in the possession, custody, or control of the department

5 or agency, or person paid by such department or agency,

o whenever requested by the select committee with respect

I to any matter within such committee's jurisdiction.

8

(c) It is the sense of the House that each department

9 and agency of the United States should report immediately

I0 upon discovery to the select committee any and all intelli-

I1 gence activities which constitute violations of the constitu-

12 tional rights of any person, violations of law, or violations

13 of Executive orders, Presidential directives, or departmental

14 or agency rules or regulations; each department and agency

15 should further report to such committee what actions have

16 been taken or are expected to be taken by the departments

17 or agencies with respect to such violations.

18

SDO. 11. Subject to the rules of the House, no funds

19 shall be appropriated for any fiscal year beginning after

20 September 30, 1977, with the exception

of a continuing

21 bill or resolution, or amendment thereto, or conference re-

22 port thereon, to, or for use of, any department or agency of

23 the United States to carry out any of the following activi-

24 ties, unless such funds shall have been previously authorized

---

## Page 38

10

I by a bill or joint resolution passed by the House during the

same or preceding fiscal year to carry out such activity for

3

such fiscal year:

(1) The activities of the Central Intelligence Agency

5

6

and the Director of Central Intelligence.

(2i) The activities of the Défense Intelligence Agency.

7

(3) The activities of the National Security Agency.

8

(4)

The intelligence

activities of

other agencies and

9 subdivisions of the Department of Defense.

10

(5) The intelligence activities of the Department of

11

State.

12

(6) The intelligence activities of the Federal Bureau of

13

Investigation, including all activities of the Intelligence

14

Division.

15

SEc: 12. (a) The select committee shall make a study

16 with respect to the following matters, taking into considera-

17

tion with respect to each such matter, all relevant aspects

18 of the effectiveness of planning, gathering, use, security, and

•jo dissemination of intelligence:

20

(1)

the quality of the analytical capabilities of

United States foreign intelligence agencies and means for

22

integrating

more closely analytical intelligence and

policy formulation;

24

25

(2) the extent and nature of the authority of the

departments and agencies of the executive branch to

MMY 64806 Donatepsil Hage 30

Director of Central Intelligence, be commensurate with the

sensitivity of the classified information to which such em-,

3 ployee or person will be given access by such committee.

4

Sec. 6. The select cominittee shall formulate and carry

5 out such rules and procedures as it deems necessary to pre-

o vent the disclosure, without the consent of the person or

y persons concerned, of information in the possession of such

8 committee which unduly infringes upon the privacy or which

9 violates the constitutional rights of such person or persons.

10 Nothing herein shall be construed to prevent such committee

11 from publicly disclosing any such information in any case

12 in which such committee determines the national interest in

13 the disclosure of such information clearly outweighs any in-

14 fringement on the privacy of any person or persons.

15

SEc. 7. (a) It shall be the duty of the Committee on

16 Standards of Official Conduct to investigate any unauthorized

it disclosure of intelligence information by a Member, officer,

18 or employee of the House and to report to the House con-

19 cerning any allegation which it finds to be substantiated.

20

(b) Upon the request of any person who is subject to

21 any such investigation, the Committee on Standards of Off-

22 cial Conduct shall release to such individual at the conclusion

23 of its investigation a summaiy of its investigation together

with its findings. If, at the conclusion of its investigation, the

25

Committee on Standards of Official Conduct determines that

---

## Page 39

. "

6

I and the Committee on Rules of the House, to use on a

2 reimbursable basis the services of personnel of any such

3 department or agency.

4

(b) The chairman of the select committee or any mem-

ber thereof may administer oaths to witnesses.

6

(c) Subpenas authorized by the select committee may

y be issued over the signature of the chairman, the vice chair-

8 man, or any member of the select committee designated by

9 the chairman, and may be served by any person designated

10 by the chairman or any member signing the subpena.

11

SEC. 5. No employee of the select committee or any

12 person engaged by contract or otherwise to perform services

for or at the request of such committee shall be given access

I4 to any classified information by such committee unless such

15 employee or person has (1) agreed in writing and under

16 oath to be bound by the rules of the House (including the

17 jurisdiction of the Committee on Standards of Official Con-

18 duct and of such committee as to the security of such infor-

19 mation during and after the period of his employment or

20 contractual agreement with such committee; and (2) re-

21 ceived an appropriate security clearance as deteimined by.

22 such committee in consultation with the Director of Central

23

Intelligence. The type of security clearance to be required in

24 the case of any such employee or person shall, within the

25

determination of such committee in consultation with the

11

engage in intelligence activities and the desirability of

developing charters for each intelligence agency

3

department;

(3) the organization of intelligence activities in the

executive branch to maximize the effectiveness of the

6

7

conduct, oversight, and accountability of intelligence

activities; to reduce duplication or overlap; and to im-

8' prove the morale of the personnel of the foreign intelli-

gence agencies;

10

11

12

13

14

15

17

18

20

21

22

23

24

25

(4) the conduct of covert and clandestine activities

and the procedures by which Congress is informed of

, such activities;

...

(5) the desirability of changing any law, House

rule or procedure, or any Executive order, rule, or regu-

lation to improve the protection of intelligence secrets

16 and provide for disclosure of information for which there

is no compelling reason for secrecy;

(6) the desirability of establishing a standing com-

19 mittée of the House on intelligence activities;

(7) the desirability of establishing a joint commit:

tee of the Senate and the House of Representatives on'

intelligence activities in lieu of having separate com-

mittees in each House of Congress, or of establishing

procedures under which separate committees on intelli-

gence activities of the two Houses of Congress would,

NW 68486 Docld:32989711 Page 39

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## Page 40

1

2

3

6

12

receive joint briefings from the intelligence agencies and

coordinate their policies with respect to the safeguarding

of sensitive intelligence information;

(8) the authorization of funds for the intelligence

activities of the Government and whether disclosure of

any of the amounts of such funds is in the public interest;

and

8

(9) the development of a uniform set of definitions

for terms to be used in policies or guidelines which may

10

be adopted by the executive or legislative branches to

11

govern, clarify, and strengthen the operation of intel-

12

ligence activities.

13

(b) The select committee shall report the results of the

14:

study provided for by this section to the House, together

15. with any recommendations for legislative or other actions it

16 deems appropriate, no later than July 1, 1978, and from

17 time to time thereafter as it deems appropriate.

18

SEc. 13. (a) As used in this resolution, the term "intel-

19

ligence activities" includes (1) the collection, analysis,

20 production, dissemination, or use of information which relates

21

to any foreign country, or any goverment, political group,

party, military force, movement, or other association in such

23

foreign country, and which relates to the defense, foreign

24 policy, national security, or related policies of the United

States, and other activity which is in support of such activi-

5

1 herein shall be construed as requiring the public disclosure

2 in such reports of the names of individuals engaged in

3 intelligence activities for the United States or the divulging

# of intelligence methods employed or the sources of informa-

5 tion on which such reports are based or the amounts of funds

6 authorized to be appropriated for intelligence activities.

(c) On or before March 15 of each year, the select

8 committee shall submit to the Committee on the Budget of

9 the House the views and estimates described in section 301

10 (c) of the Congressional Budget Act of 1974 regarding

11 matters within the jurisdiction of the select committee.

12

SEc. 4. (2) For the purposes of this resolution, the select

13 committee is authorized in its discretion (1) to make investi-

14 gations into any matter within its jurisdiction, (2) to make

15 expenditures from the contingent fund of the House, (3) to

16 employ personnel, (4) to hold hearings, (5) to sit and act

17 at any time or place during the sessions, recesses; and ad-

18 journed periods of the House, (6) to require, by subpena

19 or otherwise, the attendance of witnesses and the production

20 of correspondence, books, papers, and documents, (7) to

21 take depositions and other testimony, (8) to procure the

22 service of individual consultants or organizations thereof, in

23 accordance with the provisions of section 202 (i) of the Leg-

24 islative Reorganization Act of 1946, and (9) with the prior

25 consent of the Government department of agency concerned

---

## Page 41

I man in the absence of the chairman. Neither the chairman

2 nor the vice chairman of the select committee shall at the

3 same time serve as chairman or ranking minority member

# of any other committee referred to in clause 1 of rule & of

5 the Rules of the House.

6

SEc. 3. (a) The select committee, for the purposes of

7

accountability to the House, shall make regular and periodic

8 reports to the House on the nature and extent of the intel-

9 ligence activities of the various departments and agencies

10 of the United States. Such committee shall promptly call to

11 the attention of the House or to any other appropriate com-

12 mittee or committees of the House any matters requiring the

13

attention of the House or such other committee or commit-

14

tees. In making such reports, the select committee shall not

15 make any unauthorized disclosure of information which has

16 been classified.

17

(b) The select committee shall obtain an annual report

18 from the Director of the Central Intelligence Agency, the

Secretary of Defense, the Secretary of State, and the Director

20 of the Federal Bureau of Investigation. Such reports shall

21 review the intelligence activities of the agency or depart

22 ment concerned and the intelligence activities of foreign

23 countries directed at the United States or its interest. An

unclassified version of each report may be made available to

25 the public at the discretion of the select committee. Nothing

NW 68486 Docld:32989711 Page 41°

131

1 ties; (2) activities taken to counter similar activities directed

2 against the United States; (3) covert or clandestine activi-

3 ties affecting the relations of the United States with any

4 foreign government, political group, party, military force,

5 movement or other association; (4) the collection, analysis,

6 production, dissemination, or use of information about activi-

¿ ties of persons within the United States, its territories and

8 possessions, or nationals of the United States abroad whose

9 political and related activities pose, or may be considered

10 by any department, agency, bureau, office, division, instru-

11 mentality, or employee of the United States to pose, a threat

12 to the internal security, of the United States

and covert or

13 clandestine activities directed

against such persons.

Such

14 term does not include tactical foreign military intelligence

15 serving no national policymaking function.

16

(b) As used in this resolution, the term "department

17 or agency" includes any organization, committee, council,

18 establishment, or office within the Federal Government.

19

(c) For purposes of this resolution, reference to any

20 department, agency, bureaul, or subdivision shall include a

21 reference to any successor department, agency, bureau, or

22 subdivision to the extent that such successor engages in

23 intelligence activities now conducted by the department,

24 agency, bureau, or subdivision referred to in this resolution.

25

SEc. 14. Expenses of the select committee under this

---

## Page 42

14

I resolution shall be paid from the contingent fund of the

2 House upon vouchers approved by the chairman of the select

committee, except that vouchers shall not be required for

4 the disbursement of salaries of employees paid at an annual

5 rate.

6

Seo. 15. Nothing in this resolution shall be construed

7

as constituting acquiescence by the House in any practice,

§ or in the conduct of any activity, not otherwise authorized

g by law.

ANN 06846806 DoonHotsoell Whores 404

3

1 House. Four of the members appointed under cause (E)

2 of paragraph (1) shall be appointed by the Speaker of the

3: House upon the recommendation of the majority leader of

4 the House and three shall be appointed by the Speaker of

5 the House upon the recommendation of the minority leader

6 of the House.

(3) The majority leader of the House and the minority

8. leader of the House shall be ex officio members of the select

o committee but shall have no vote in the committee and

10 shall not be counted for purposes of determining a quorum.

11

(b) No Member may serve on the select committee

12 for more than eight years of continuous service,

exclusive

13 of service by any Member on such committee during the

14. Ninety-fifth Congress. To the greatest extent practicable,

15 one-third of the Members of the House appointed to the

16 select committee at the beginning of the Ninety-seventh

17. Congress and each Congress

thereafter shall be Members

18 of the House who did not serve on such committee during

19 the preceding Congress.

20'

(c) At the beginning of each Congress, the Members

21 of the House who are members of the majority party of the

22' House shall elect a chairman for the select committee; and

23 the Members of the House who are from the minority party of

24 the House shall elect a vice chairman for such committee.

25 'The vice chairman shall act in the place and stead of the chair-

---

## Page 43

• ..

2

and vital interests of the Nation. It is further the purpose of

2

this resolution to provide vigilant legislative oversight over

3 the intelligence activities of the United States to assure that

4 such activities are in conformity with the Constitution and

5 laws of the United States.

6

SEC. 2. (a) (1) There is hereby established a select

7

committee to be known as the Select Committee on Intelli-

8

gence (hereinafter in this resolution referred to as the "select

9 committee"). The select committee shall be composed of

10 fifteen members appointed as follows:

11

(A) two members from the Committee

on

12

Appropriations;

13

(B) two members from the Committee on Armed

14

• Services;

(C) two members from the Committee on Inter-

16

national Relations;

(D) two members from the Committee on the

18

Judiciary; and

(E) seven members to be appointed from the

20

House at large.

21

(2) Members appointed from each committee named in

22 clauses (A) through (D) of paragraph (1) shall be evenly

23. divided between the two major political parties and shall be

24 appointed by the Speaker of the House upon the recom-

25

mendations of the majority and minority leaders of the

NW 68486 Docld:32989711 Page 43

---

## Page 44

JANUARY 4, 1977

Referred to the Committee on Rules

gEE: 397911-27

By Mr. BeNNerT

To establish a Select Committee on Intelligence

in the House of Representatives, and for

other purposes.

RESOLUTION

OnE CRISS H. RES. 82

95TH CONGRESS

IST SEssion

H. Res. 82

IN THE HOUSE OF REPRESENTATIVES

JANUART 4, 1977

Mr. Benner submitted the following resolution; which was referred to the

Committee on Rules

RESOLUTION

1

Resolved, That it is the purpose of this resolution to

2

establish a new select committee of the House, to be known

as the Select Committee on Intelligence, to ovérsee and make

4 continuing studies of the intelligence activitiés and programs

5 of the United States Government, and to submit to the House

6 appropriate proposals for legislation and report to the House

i concerning such intelligence activities and programs. In car-

rying out this purpose, the Select Committee on Intelligence

shall make every effort to assure that the appropriate depart-

10 ménts and agencies of the United States provide informed

Il and timely intelligence necessary for the executive and legis-

12 lative branches to make sound decisions affecting the security

---

## Page 45

"'OPTIONAL FORM NO, 10

MAY 1962 EDITION

GSA FPMR (41 CFR) 101-11.6

UNITED STATES GO

ERNMENT

• Memorandum

JiTo

: Mr. T

1 - T. W. Leavitt

1 - A.

J. Decker

1 - S. F. Phillips

DATE: 11/17/76

FROM

: Mr.

6.

r. phillipe

SUBJECT:

HOUSTUDY

Houstudy is the code word assigned to the

control file containing communications pertaining to

requests made by the House Select Committee on Intelligence

Activities.

recommended that, for purposes of sensitivity and urgency in

handling, the Bureau file relating to the captioned matter be

maintained in the work area of personnel assigned to the

Houstudy Project; presently room 3859. It is noted that the

above arrangement must be reevaluated and recommendations

submitted on a semiannual basis.

The approval was thus

updated by memoranda dated 12/4/75 and 6/1/76.

file as indicated is ion to maternal teste

to personnel assigned to the Project and to others having

frequent need for review of the file. Therefore, it is

recommended that the above arrangment be continued for an

the dever

additional 6-month period or until such time as the need no

longer exists.

slandled dy sipe

76

12-10-

File Room

RECOMMENDATION

This memorandum should be forwarded to the Records

Management Division for action requested above.

62-116464

APPROVED;

SEP: kg K>

Adas, Serv..

Ext. Affairs.

(4)

Pirector.---

11*3149

Legal Coun

Plan, & Insp.

Pep. AD InVanessan

Guir

Ident..

SpEC. Irveness.

Training.

ST 109

REC-37

62

84

1

INOV 19 19/0

3 1976

1. NOV 22 1976

NW 68486-Docld:32989711

Bage 5. Savings Bonds Regularly on the Payroll Savings Plan

Assoc. Dir. _

Dep. AD Adm.-

Dep. AD Inv. _

Asst. Dir.:

Adm. Sorv..

Ext. Affairs

Fin. & Pers.

Gen. Inv..

Ident.

Inspection

5217

325

---

## Page 46

FROM

SUBJECT:

OPTIONAL FORM NO, 10

MAY 7962 EDITION

GSA FPAIR (41 CFR) 101-11.6

UNITED STATES GOVERNMENT

Memorandum

: Mr.

T.

Leavitt

: s.

F.

phillips

1 - Mr. J. B. Adams

2 - M5. J.

A. Mintz

(Attn:

P. V. Daly)

1 - Mr. D.

w. Moore, JI.

DATE:

7/26/76

1 - Mr. I. W. Leavitt

(Attn: W. 0. Cregar)

1 - Mr. S.

S. Mignosa

(Attn:

R.

L. McLanahan)

1. - Mr. V.

H. Weimar

1 - MI.

• S. E. Phillips

Assoc. Dir. .

Dep. AD Atin, -

Dep. AD Inv. "

Asst. Dir.:

Admin.

Comp. Syst.

Ext. Affairs

Filos & Com.

Gen. inv. -

Ident.

HOUS TUDY

Laboratory

Legal Coun.

Plon. & Eval.

Spec. Inv. -

Training.

Telephone Rm.

Director Secy -

PURPOSE:

To advise of CIA request for permission to mention

during Congressional hearing FBI inquiry of Pike Committee

Report leak to newsman Daniel Schort; and our response to CIA

that we prefer they do not volunteer such information.

DETAILS: House Committee on Standards of Official Conduct

Ethics Committee) has been' conducting public hearings to

determine source of leak which resulted in Daniel Schort, CBS

news commentatox, providing "The Village Voice," New York City

tabloid, information from House Intelligence Committee (Pike

Committee)

Report.

On 7/21/76, Steve Hunt, CIA, telephonically

advised S. F. Phillips, HOUSTUDY Project, that Seymour Bolten of

CIA Review Staff and Mitchell Rogovin, formerly Special Counsel

To Dicector, Central Intelligence, are to testify week 0a

7/25/76 at public hearings of Ethics Committee.

From questions already asked of other witnesses, it.

is anticipated Bolten and Rogovin will be asked if CIA investi-

gated the leak

to Schorr. They intend to reply that CIA did

not as it is not provided for in its charter; but would like

to

add a statement to the effect that the FBI has conducted such

investigation.

Hunt sought Bureau approval for this. On 7/23/76,

Bolten telephoned Phillips and expanded request by stating that

the question which may be put to him or to Rogovin, may be of a

general nature, such as

• "Did anyone in the Executive Branch

UNRECORDED COPY FILEN t

Bolten desired to be able to respond to the effect that the FBI

has conduoted inVistioption in this matter.

62-116464

REC-4062-116464-3241

1 - 65-75958

(Disclosure and Publication of Allegedly

Classified Information by

Voice," on or about 2/117%|46G Y178ge

SFP: dao doc

(10)

#911368

OY NO 1"

CONTINUED - OVER

3/15/00 SP2AUM KP.

8

AUG 1 T 1976

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

N. GRARAORDId 32989711, Page 46

---

## Page 47

Memorandum to Mr. T. W. Leavitt

Re:

HOUSTUDY

Pursuant to Department letter 2/13/76, "Disclosure

and Publication of Allegedly Classified Information by 'The

Village Voice," on or about 2/11/76," we have been conducting

a preliminary inquiry in this matter along lines specified by

the Department. After conferring with Messrs. J. B. Adams and

J. A. Mintz, it was decided that CIA be told that we would

prefer that mention of FBI not be volunteered by Bolten or

However, if questioned specifically as to any FBI

investigation or if asked such general questions as indicated

above, we would have no objection to the following reply:

is our

understanding that the FBI, at the instructions of the

Department of Justice, initiated

a preliminary inquiry into

this matter in February, 1976."

The foregoing was telephonically passed by Phillips

-

to Hunt, in Bolten's absence, on 7/23/76.

The desired reply in

quotes immediately above was read to Hunt who reread it back

for accuracy•

He expressed agreement with the handling of the

matter in this manner and expressed appreciation for our

cooperation.

ACTION:

None. For information.

APPROVED:

Assoc. Dir....

Asst. Dir.:

Adm. Servant

Ext. Affalrs..

Fin. & Pers.

Gen. Inv..

no that it

Laboratory...,

Legal Coun...

Plan. & Eval.

Rec. Mgmt..

Spec. Inv...

-2-

NW 68486 Docld:32989711 Page 47

---

## Page 48

OPTIONAL FORM NO, 10

5010-106

MAY TYOZ EDITION

GSA GEN. REG. NO, 27

UNITED STATES GOVERNMENT

Memorandum

1 - Mr. A. J. Decker

Assoc. Dir.

(Attn:

Dep. AD Adm. -

Dep. AD inv. _

Asst. Dir.:

Admin. -

Comp. Syst. -

TO

DATE: 6/30/76

Ext. Affairs

Files & Com. -

Gen. Inv. -

FROM : S. E. Phillip

= = No. T. W. Leavitt

Ident. —

- Mr.

F. Phillips

Inspection -

Intell. —

Laboratory

10

Plan. & Eval. -

SUBJECT:.

HOUSTUDY

Spec. Inv..

Training

Legal Coun.

Telephone Rime

This memorandum provides for filing of voluminousior Soc'y

newspaper and wire service clippings relating to

• the House

Select Committee on Intelligence Activities (HSC.

Since the inception of the HOUSTUDY Project, we have

accumulated 3 thick folders containing newspaper and Wire serViCe

cLippings plus some additional material such as magazine articles

and other public source data.

e dato pancer tal suntaine are

Material maintained in tickler

With the end of the!

and

permanent retention of this material.

This matter was discussed by writer with Messrs

W. L. Bailey and L. W. Brady of the Records Management Division

on 6/29/76 and it was agreed that the most practical manner of

handling would be to file this material as

a bulky enclosure

behind file and that no indexing would be necessary. Further,

that the original of this memorandum be filed in the main

HOUSTUDY file, 62-116464, and a copy be filed in Sub A

to 62-116464 which should be opened as a repository of it alone.

The presence of a copy of instant memorandum in the Sub A will

serve as a permanent flag advising where the material is actually

3

ACTION:

Upon approval, Records Management Division will handle

In accordance with procedures outlined above.

The material is

currently maintained in Room 3859 and may be obtained there from

the writer.

untained in Roon outlined

ENCLOSINE

APPROVED:

Assoc. Dir.....

Dep. AD Adm...

Dep. AD Inv.....

REC-115

02

Ext. Affairs...

Laboratory

Fin. & Pers.

Legal Coun..

116464-323

Ger. Inv..

Plan. & Eval.

Ident..

Rec. Mgmt..

Inspection.

Spec. Inv..

3 JUL 15 1976

Intell. Turb

- Train...

62-116464

1 - 62-116464-Sub A

SFP :lek |eK

(6)

"ENCLOSURE IN BULKY ROON"

3859

6 , SEP 28 1976

NW 68486 Docld:32989711 Page 48

---

## Page 49

FROM

SUBJECT

OPTIONAL FORM NO. 10

5010-106

MAY 1962 EDITION

GSA GEN. REG. NO, 27

UNITED STATES GOVERNMENT

Memorandum

T. W. Leavitt

: S.

PhillipeL

HOUSTUDY

: *

1 - Mr.

A. J. Decker

1 - Mr. T. W. Leavitt

1 - Mr. S. F. Phillips

DATE:

6/1/76

4-Bpadly

Assoc. Dir. -

Dep. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Adm. Serv.

Ext. Affairs

Fin. & Pers. -

Gen. Inv.

Ident. -

Inspection

Intell. -

Laboratory

Legal Coun.

Plan. & Eval

Rec. Mgnt.

Spec. Inv..

Training -

Telephone Rm. -

Director Sec'y -

FBI/DOJ

Houstudy is the code word assigned to the

control file containing communications pertaining to

requests made by the House Select Committee on Intelligence

Activities.

By memorandum 6/11/75, which was approved, it

was recommended that, for purposes of sensitivity and

urgency in handling,

the Bureau file relating to captioned

matter be maintained in the work area of personnel assigned

to the Houstudy Project, Room 4063 JEH. It is noted that

the above arrangement must be reevaluated and recommendations

submitted on a semiannual basis.

The approval was thus

updated by memorandum dated 12/4/75.

UNRECORDED COPY FILED IN .

For reasons cited above, maintenance of the above

file as indicated has proven to be of invaluable assistance

to personnel assigned to the Project. It is recommended,

therefore, that the above arrangement be continued for an

additional six-month period or until such time as the need

no longer exists. It should be noted that the Project was

relocated from Room 4063 to Room 3859, on 5/26/76.

RECOMMENDATION:

This memorandum be forwarded to the Records

REC-109 62-116464322

Management Division for action requested above.

62-116464

3 JUN 4 1976

SFP :1hb|hb

(4)

APPROVED:

Assod, Dir...

Dep. AD Adm.

Đep. AD Inv.

Asst. DiFi

Admo SerVe

Ext. Affairs..-e

Fin. & Pers..

Gen. InVices

Ident...

Inspection.

Laboratory.

Legal Coun..

Plan. & Eval....

Rec. Mgmt. AsDIuD

- Training..

8 4 JUN 2 3 1976

NW 68486 Docld:32989711 Page 49

---

## Page 50

OPTIONAL FORM, NO. 10

MAT 196D EDITION

GSA FPMR (61 CFR) 101-11.8

UNITED STATES GOVERNMENT

Memorandum

1 - Mr. Leavitt

TO

DATE: 5/26/76

1 - Mr. Cassidy

FROM

/F. J. Cassidy

SUBJECT: HOUSTUDY

PURPOSE:

casper

Assoc. Dir._

Dep. AD Adm. -

Dep. AD Inv..

Asst. Dir.:

Adm. Serv..

Ext. Affairs

Fin. & Pers.

Gen. Inv.

Ident.

tell Weir

Laboratory

Legal Coun.

Plan. & Eval..

Rec. Mgnt.

Spec. Inv.

Training

Telephone Rm. -

Director Sec'y -

To record results of the interview of you and me by August Fipp,

investigator for the Standards of Official Conduct Committee of the House,

with regard to the handling of the draft report of the House Select Committee

(HSC) received on 1/20/76 from the Attorney General's Office. (First Draft

Final Report)

SYNOPSIS:

On 1/20/76 two copies of the First Draft Final Report of the HSC

were received from the Attorney General's Office at approximately 5 p. m

with instructions to review for classified information or information which

contained errors relating to Bureau operations. As best as can be recalled,

five Xerox copies were made of this report, with one copy being furnished

to Mr. J. B. Adams; one copy to then Assistant Director W. R. Wannall;

one copy to you; one copy maintained by IS-3 Section, INTD, which Section

coordinated the review; one copy to SA David Ryan; one copy split up for

review by the various Sections of INTD; and one copy split up for review by

Inspection, General Investigative, and Finance and Personnel Divisions.

With regard to disposition, the copies of Mr. Adams, Wannall and your copy

were returned to Mr. Rogovin's office, CIA, by liaison on 3/5/76, on

instructions of Department, IS-3 copy returned to the Attorney General's

Office at their request. SA Ryan's copy, as well as the two copies which

were broken down for various Sections of INTD and other Divisions, were

destroyed.

RECOMMENDATION:

62-116464

FJC:glwa

(3)

None. For information.

TWh

RECIO: 62-118864-321

17 JUN- 311976

CONTINUED - OVER

84

1976

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

NW 68486'Docld:32989711 Page 50

FBI/DOJ

---

## Page 51

Memorandum to Mr. T. W. Leavitt

Re: Houstudy

62-116464

DETAILS:

On 5/18/76 Mr. August Fipp, investigator for the Standards of

Official Conduct Committee of the House, interviewed you and me in your

office concerning the Bureau's handling of the first version of the final draft

report of the HSC, which version was received by INTD on 1/20/76.

Mr. Fipp was furnished the following information, which to the

best of my recollection was the way in which this was handled by INTD.

At approximately 5 p.m. on 1/20/76 SA Dalseg received from

Douglas Marvin, Special Assistant to the Attorney General, two copies of

the draft report. SA Dalseg furnished these two copies to then Assistant

Director Wannall who in turn appointed me to coordinate the review of the

report, which consisted of approximately 340 pages, for classified material

and any errors concerning information furnished by the Bureau to the HSC.

This review was to be accomplished by 9 p.m. 1/20/76 and the results

furnished to Mr. Mitch Rogovin at CIA. Based on Mr. Wannall's instructions,

each Section Chief, INTD, was assigned approximately 50 pages to review.

SA Ryan was assigned the task of reviewing the Cointelpro portions of the

report and, as the report contained considerable information concerning the

U. S. Recording Company, the Inspection Division was requested to review

that portion of the report.

Tom Hardy, a former informant handled by

General Investigative Division, had been interviewed by the Committee.

Accordingly, General Investigative Division was requested to review that

portion of the report. As former SA Arthur Murtagh had testified before

the Committee and made a number of allegations concerning the Bureau, a

portion of the report was referred to the Finance and Personnel Division

for review.

With the short deadline imposed, five Xerox copies of the report

were made making a total of seven copies of the report in the possession of

the INTD.:. These copies were handled as follows: one copy to Mr. Adams,

one copy to Mr. Wannall; one copy to you; one copy to IS-3, INTD; one copy

to Mr. Ryan; one copy split up for review by appropriate Sections of INTD;

and one copy split up for review by Inspection, General Investigative, and

Finance and Personnel Divisions.

- 2 -

CONTINUED - OVER

NW 68486 Docld:32989711 Page 51

---

## Page 52

Memorandum to Mr. T. W. Leavitt

Re: Houstudy

62-116464

With regard to the disposition of the seven copies, the following

is set forth: on receipt of instructions from the Department on 2/17/76

that copies of this report were to be returned to the CIA, a canvass of all

Sections and Front Office of INTD was made by SA Thomas J. McNiff, who

located three such copies. These copies were the ones furnished to Mr. Adams,

Mr. Wannall and yourself. Memorandum S. F. Phillips to Mr. Leavitt,

dated 3/1/76, captioned "Houstudy 75," contains the notation that on 3/5/76

Liaison Agent Weimar returned three copies to Mr. Rogovin's office at CIA.

At the request of Mr. Douglas Marvin of the Attorney General's

Office, we had previously furnished to him the IS-3 Section copy of the report.

SA Ryan has advised that the copy utilized by him to accomplish

the review for classification and errors was destroyed.

It is the recollection of both myself and SA R. H. Ross, IS-3 Section,

who assisted me in coordinating this matter, that the working copies broken

up and distributed to the various Sections of INTD and the other Divisions were

destroyed.

- ...--

- 3 -

NW 68486 Docld:32989711 Page 52

---

## Page 53

TO

FROM

SUBJECT:

OPTIONAL FORM NO, 10

5010 - 106

MAY 1962 EDITION

GSA GEN. REG. NO, 27

UNITED STATES GOVERNMENT

Memorandum

1-Mr. Adams

Mr. I/ wiLeavitt

TGEW

1-Mr. Leavitt

2-Mr

Mintz

DATE:

4/30/76

W.

Cregar|utl

-FiNAL

(1-Mr. Hotis)

1-Mr. Phillips

DRAFT REpoRt

I-Mr. Cregar

Assoc. Dir.

Dop. AL Adma

Dep. ADi Inx

Asst. Dist

Adming

Comp. "Syst. —

Ext. Affairs -

Files & Com. -

Gen. Inv. -

ident.

inspogtion

aborator

Legal Cdun

HOUSTUDY 75

Plan. & Erd)

Spec. Inv.

Training

Telephone Rm. -

PURPOSE:

To advise that on 4/29/76 Mr. Norman McDaniels

Director Sec'y -

(former SA), a member of the investigating staff looking into the

leak of the House Select Committee Intelligence Report, telephonically

contacted Deputy Associate Director Adams for the purpose of ob-

taining information regarding the Bureau's knowledge of the drafts of

the House Select Committee Intelligence report.

DETAILS:

On 4/29/76 Mr. Norman McDaniels (former SA), a member

of the investigating staff looking into the leak

. of the House Select Com-

mittee Intelligence Report, telephonically contacted Deputy Associate

Director Adams indicating

; he desired to meet with representatives of the

Bureau in an effort to determine what knowledge the Bureau had regarding

the disposition of the reports of the House Select Intelligence Committee

Atter conferring with Assistant Director Mintz it was agreed

that Deputy Assistant Director Cregar would contact McDaniels telephoni-

cally and advise him that his request should be submitted in writing to the

Attorney General over the signature of the Chairman of the Committee

looking into this matter. This was done on the afternoon of 4/29/76

and McDaniels said that he would definitely be contacting the Attorney

General's Office but probably would do so by telephone rather than in

writing. Cregar advised McDaniels that the Bureau would take no further

action in this matter pending advice from the Attorney General's Office.

McDaniels agreed with this arrangement.

It will be recalled that on the morning of Saturday, 1/24/76,

the secretary of Mitchell Rogovin, the attorney hired by William Colby,

then Director of Central Intelligence Agency, telephonically contacted

Cregar in an effort to arrange delivery of the "final report of the House

Select Intelligence Committee to the Attorney General." The secretary

indicated that the Attorney General needed the report inasmuch as the

report was to be discussed at the White House the following day and the

Attorney General's presence had been requgstea

At that time Rogovin's

It 1111/14320

WOC: enm

(7)

FX-116

CONTINUED - OVER

SHANT

16 MAY • 1976,

84 MAY 2 0 1976

NW 68486 Docld:32989711 Page 53

---

## Page 54

Memorandum to Mr. T. W. Leavitt

Re: Houstudy 75

secretary indicated that this was an "informal" copy of the final report and that

its availability should be restricted.

Prior to calling McDaniels Cregar cleared with Mr.

Seymour Bolten, the official of CIA handling the House Select Intelligence

Committee matter for that agency. Bolten advised Cregar that

McDaniels had contacted him and arrangements had been made for

McDaniels to interview Bolten at CIA Headquarters on 5/4/76. Bolten

also advised that McDaniels was aware of the fact that Mitchell

Rogovin had gotten informal copies of the final draft of the House

Select Committee Intelligence Report and in fact knew the identity

of the person from whom Rogovin obtained this informal copy. Bolten

advised that CIA interposed no objection to the Bureau's furnishing

to VicDaniels the precise sequence of events leading up to the FBI's

obtaining a copy of the final draft of the House Select Committee Intelligence

Report through Rogovin's office.

In the event McDaniels does obtain the Attorney General's

approval and we are notified by the Attorney General's Office that we

should cooperate with McDaniels, Cregar will meet with McDaniels

to respond to any questions he might have regarding the Bureau's receipt

and handling of the draft of the House Select Committee Intelligence Report.

As a matter of information, Bolten advised that Mitchell

Rogovin, who has been completely cooperative with the Bureau while

representing ClA, suftered a mild heart attack approximately two weeks

ago and is currently hospitalized in Georgetown Hospital, Washington, D.C.

ACTION:

For information and record purposes.

APPROVED:

Dep. AD Adm.

Comp. Syst.

Ext. Affairs.

Con. liv

Ident..

Asst. Dir.:

Admin..

Laboratory.

Legal Coun

Pian. & Eval.

Rec. Mgmt.

Spec. Inv.

Training.

2-

NW 68486 Docid: 32989711 Page 54

---

## Page 55

0-20 (Rev. 85-74)

Assoc. DIr..

Houstudy

Admin.-

Comp. Syst. _

Ext. Affairs -

Files & Com. _

Gon. Inv. -

Ident. -

Inspection.

Intell. -

Laboragain.

Plan. E Eval.

Plan.

Spec. Inv.

Training -

Telephone Rm.

Director Sec'y

LICENCE)

SILKOREY

LUPI)

DESPICE A HOUSE COMMITTEE'S CHANGES 05

AtY

ORRENDOUS"

THINGS DONE BY

A

RD

EV

WARNED

TODAY AGAINST GIVING THE

TRI

INVESTIGATIONS +

AC

CR

POLIT

THE

WH

HOUSE

OF PROMOTING FREVIOUS MISUSE DE

AVAL

BEFORE

A HOUSE

HOUSE JUDICIARY SURGONNITIES ON PRUTOSE?

LIES. FOR

OPERATIRE

THE TBI

HE OBJECTED TO SUCGESHLONG THAT

PREOVED WARRANTS

BE REQUIRED FOR PRACTICALLY EVERY

FRE

TENPTATION

RESOR'S TO HAVING THE COURTS ME

3155I0343

DAY-TO-DAY DECISIONS

FOURIN ANYADNENT

SEARCH

RECOURSE

REQUIRE? L

TO A COURT OR A

TALIGENCE

COMMITTEE, ENDED IT WORK YESTORPAY

LEAVX'-0

ANi

9054

3HE

C

ISHED

REPONE

HATROCIOUS AND HORNEMIOUS

"31 TASS

IA

FBI

AND

STACK OF RECOMMENDATIONE CHU JON 5E

ACTIV

PANEL MORAN.

THAT

TIES AND

ABUSES: BUT LEVI TOLD THE MALGIN"

CONCLOSSIONAL

ZEAL PROMPTED BY SUCH REPORES MO

PRONET SECISIONS

WHICH

AHSTRING OR AT LEAST SLOW DOWN LAS

ENFORCEVE

EXCIPLE

HAS BEEN SUGGESTED THAT.

INFORMANTE

EXTENDING THE WARRANT

RENAIRE"

DONE A ON DES DENY BECOMES ATTLEY

AND NOT LENDERS OF THE EXECUTIVE, ACTUALLY CORACK AT

KINGER AT THE WHITE HOUSE

RESPONSIBLE

"IN WHINN

13°

TiE GHETZAMION OF

61F7 ME ROSEVERED SEE THADE

SUITING

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2"-11

84 APR 2 7 1976

WASHINGTON CAPITAL NEWS SERVICE

NW 68486 Docld:32989711

Page 55

---

## Page 56

E-113a (Rey. 3-21-73)

SECRET

+5

Intelligence Division

IN FORMATIVE NOTE

Date -

4/8/76

The attached relates to a request from the

Assistant Attorney General (AAG), Criminal

Division, to conduct an expedite prelimi-

nary inquiry regarding a package

of CIA

documents located in the Los Angeles,

California, area, but which originally

had been provided to the House Select

Committee on Intelligence Activities bet-

ween 11/15-12/12/75.

Three of these docu-

ments are classified "Top Secret" and

contain codeword indicators.

Documents

presently in possession of

Mr. Fred Land,

Document Control Officer, R & D Associates

Los Angeles, California, and possibility

exists they were previously in possession

of an unknown media representative.

Can, by letter dated 3/20/76, requested

the Attorney General (AG) initiate investi

gation into this matter. AAG has

requested FBI to conduct preliminary

inquiry and has set forth nine questions

to be answered regarding the identiiica-

tion and classification of the questioned

documents.

Investigation being immediately instituted

to comply with AAG's request.

You will

be advised of any pertinent developments

in this matter.

classified by 5019, AGR

2, Indefinimp. syst.

Laboratory

APPROVED:

Legal Countai

Assoc. Dir.F./l

Ext. Affairs.

Pian. & Evato.com

Dep. AD Adm..

Gen. Inv...

Ident..

Spec. laVe

68.r

•Assi, Dire:

. Intellea

PAECRET

AWE A doC 197839711 Page 56

---

## Page 57

TO

FROM

SUBJPCT:

JULY 1973 EDITION

• GSA FPMR 141 CFRI 101-11,6

UNITED STATES GOVER

TENT

Memorandum

Director

Federal Bureau of Investigation

DATE:'

April 6

Richard I. Thornburgh

Assistant Attorney General

CriMinal DIVISIOn

Unauthörized Release of CIA Classified Documents

Houstude

There is attached-hereto

a

copy of a memorandum,

dated March 20, 1976, from the Director of the Central

Intelligence Agency to the Attorney General, concerning

an alleged unauthorized disclosure of three Top Secret

CIA documents. The CIA requests that an investigation

be initiated to determine the extent of the disclosure

the three Top Secret documents, as well as the individuals

responsible.

In order to determine whether any action by the Depart-.

ment of Justice is necessary, you are requested to conduct

a preliminary inquiry along the following lines:

1. Whether the documents were properly classified.

2. The origin of the documents and the name of the

individual responsible for the security of the

classified data.

3. The extent of official dissemination of the data.

4. Whether the data has been the subject of prior

official releases.

Classified By CIA (derived)

Exempt from General Declassification

Schedule of Executive Order 11852

Exemption Category_ II

Automatically Declassified on Indefinite

62116464

-NOT RECORDED

SECRE APR I4 1976

HE APR

"Assoc. Dir.

Dop 13%

Asst. Di

Admin

Comp. Syst. -

Ext. Affairs.

Filos & Com.

Gon. Inv..

donten

nspoction

Intoll. d

Laboratory -

Legal Coun. _

Plan. & Eval. _

E. Spec. Inr. -

Training -

¡Tolophone Rm.

Director Soc'y_

9L6L

ENGLOSURE

ENCLOSURE.

8 4, ARR 1 6 1976

5010-110

NW 68486 Docld:32989711 Page 57

1976

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

GINAL

FILET

---

## Page 58

-2 -

5. Whether prior clearance for publication or

release of the information was sought from

proper authorities.

6. Whether the material or portions thereof or

enough background data has been published

officially or in the press to make an educated

speculation on the matter possible.

7.

Whether the data can be declassified for the

purpose of prosecution and, if so, the name

of the person competent to testify concerning

the classification.

8. Whether declassification had been decided upon

prior to the publication or release of the data.

9. What effect the disclosure of the classified

data could have on the national defense.

In addition to the above questions, you should, through

appropriate liaison channels, determine the particulars of

any agreement among the White House, the CIA, and the House

Select Committee on Intelligence Activities with regard to

the use and disposition of classified materials furnished

by the Executive Branch to the Committee.

Please obtain

copies of any written agreements and conduct necessary

interviews of persons having knowledge of any such agreement

in order that the Department may have complete information

regarding its terms.

This limited inquiry should be handled expeditiously

and the results furnished promptly to this Division.

SEGRET

NW 68486 Docld:32989711 Page 58

---

## Page 59

AGENCI

NTRAL INTELLIGENCE AGENC

WASHINGTON, D. C. 20503

OFFICE OF THE DIRECTOR

RECEIVED

OFFICE OF THE

ATTORHEY GENERAL

MaR 22 1975

20 March 1976

MEMORANDUM FOR:

FROM

SUBJECT

:

The Honorable Edward H. Levi

The Attorney General

George Bush

Unauthorized Release of Agency

Classified Documents

I.

On 4 February 1976 this Agency learned that a

package of Agency documents; three of which are classified

Top Secret and contain codeword indicators, are in the

possession of MI. Fred Land, Document Control Officer, RED

Associates,

4640 Admiralty Way, Marina del Rey (Los Angeles

area, California.

This package of documents was placed in

the custody of Mr. Land by Mr. Roland Herbst, an executive

of RED Associates. Mr. Herbst apparently received the package

from one Dr. Albert Wohlstetter who may have received the

documents from an unknown media representative.

2.

Copies of all of the documents in the package were

provided by the Agency to the House Select Committee on

Intelligence Activities between 15 November and 12 December

1975.•

One of the three Top Secret documents was sent directly

to the White House by this Agency for release to the House

Select Committee in response to the subpoena levied by the

House Select Committee against the White House.

This partic-.

ular document, considered the most sensitive of the three, is

an extract from the National Intelligence Daily of 5 July

All of. the documents in the package pertain to SALT.

1974.

NW 68486 Docld:32989711 Page 59

LUTE T

CLASSIES EY - 083209

EXEMPT FROR GRISTM DECLASSICEENTION

SCHEOKS 07E 0 M66 126H.803 EA1.GO21:

§ 50l: 0

id:

i°:.

Impossihle to Determine

(unleso anaisible, insert dals or erent)

RACLOSLEE

T9r4402-116-464

Rcks/23

CLAISIF."

3-22

---

## Page 60

3.

Apparently, some of the unclassified documents in

the package were released to the press by the House Select

Committee on 17 December 1975. A review of press coverage

of this release would suggest that the Top Secret documents

were not

generally included in this distribution.

This Agency

did not authorize the release of these three classified

documents.

4. You are requested to initiate an investigation

designed to identify the extent of exposure of the three Top.

Secret documents as well as those individuals responsible.

This Agency would appreciate receiving the investigative

results, which should be directed, Attention: Director of

Security. In the interin the Director of Security will

cooxdinate any Agency support of the investigation you may

require.

Lis Biti

George Bush

Director

Nwv. 68486 Docld:32989711 Page 60

---

## Page 61

FROM

SUBJECT:

→ OPTIONAL FORM NO. 10

MAY 1962 EDITION

5010-106

GSA GEN. REG. NO, 27

UNITED STATES GOVERNMENT

Memorandum

Mx.

:. W. Leavittl

J. Cassidy

1 - Mr. N. P. Callahan

1 - Mr. J. B. Adams

2 - Mr. J. A. Mintz

(1 - Mr. P. V. Daly)

DATE: 3/25/76

1 - Mr. T. W. Leavitt

1

- Mr. S. F. Phillips

- Mr.

F. J. Cassidy

1 - Mr. R. H. Ross

HOUSTUDY

Assoc. Dir. -

Dep. AD Adm. -

Dep. AD Inv. a

Asst. Dir.:

Admin.

Comp. Syst. _

Ext. Affairs —

Files & Com. _

Gen. Inv. -

Ident..

Inspectio

Intell. let

Laboratory

Plan. & Eval.

Spec. Inv.

Training.

Legal Cou

Telephone Rml

Director Sec'y!

PURPOSE:

To advise regarding comments in Jack Anderson

column 3/23/76, concerning House Select Committee (HSC) report.

SYNOPSIS:

Bureau personnel have no knowledge concerning alleged

watering down of HSC report by HSG Chief Counsel A. Searle Field.

RECOMMENDATION:

For information.

APPROVED:

po

Assoc. Dir. kob Comp. Syst.

Ext. Affeirs..

Admin.

Laboratory...

Legal Coun

Plan. & Eval.

P.sc. Mgmt.

Sec. Inv....

Training..

eith

DETAILS:

Mr. Callahan requested comments regarding the last

two paragraphs in the Jack Anderson column of 3/23/76, attached.

Bureau personnel involved in the review of the hsC report have

no information regarding the alleged pressure by "FBI'

s powerful

friends in Congress" to cause HSC Chief Counsel A. Searle Field

to "water down

HSC staft aides as reported in the article.

"101

REC-61

102-11'

APR

Enclosure

62-116464

ENCLOSURE

CONTINUED - OVER

WE A focldl9789711 Page 61

---

## Page 62

Memorandum to Mr. T. W. Leavitt

Re:

HOUSTUDY

62-116464

Earlier discontent with Field had been expressed

by HSC staff aide James Oliphant to SA Paul V. Daly, Legal

Counsel Division, in that Field was thought to have furnished

the "New York Times"

with a copy of the HSC report (see

memorandum Legal Counsel to J. B. Adams, captioned "HOUSTUDY,"

The only known FBI changes in the HSC report occurred

as a result of tBl write-ups which were furnished to the

at the request of the Attorney

General's staff on 1/20/76, INTD reviewed the first draft of

the HSC report,

and prepared requested comments concerning

inaccuracies and classified data in the report.

The comments

were furnished to the Attorney General and Mr. Mitchell Rogovin,

Special Counsel to the Director of Central Intelligence.

Rogovin had been designated spokesman for the intelligence

community in negotiating changes in the HSC report. He met

with the HSC staff on 1/22/16, to negotiate such changes,

utilizing the Bureau write-ups. The final HSC report printed

in "The Village Voice" varied from the first draft in that

some of the changes set out in the FBI write-ups had been

No FBI representative was present at the

1/22/76, negotiations. The write-ups furnished to Rogovin

were the only changes suggested by the Bureau prior to the

release of the final HSC report.

- 2 -

NW 68486 Docld:32989711 Page 62

---

## Page 63

The Washington Merry-Go-kerat

Cho Knew of tilinationas

Payoff

ny Juch Andervon und Les Ihitten.

¿for years, ihe Central Intelligenre

agency has lamin all about illoyal

foreign payofis by multinational cor-

paralions. The State and Defense de-

partinents, too. were at least aware that

loycign leniors were being systemat-

We have piceed together the

frota sereral

•It was standard policy, they report,

for the multinationals to lecy in con-

tact with the

that would be helpful in securing con-

Our sources distinctly recall that

Lockheed representatives, for example,

participated in bridlines irith the ciA

in various U.S. @bassie@

Like their hollings, the power of

these great mutinational, multibil-

• lion-dollar consortiums extends he-

voud any national boundaries. Some

hare berome goveriments unto them-

selves, with their own foreign servite,.

intelligence apparatus, secret

and other governmental trappings.

Some corporations, including Luck-

heed, have used a secret inteiligente

group composed of former CJA agents

ill London. Although Lockheed claims

to have cut its ties with the group, dur

scluces say the secret organizution is

still opcrating.

questioned behind

closed doors by Sen. Frank Church's

subcommillce, denied any knowlerige

of the foreign pilotis.

The agency,

. nevertheless, provider! the

mittee with a biography of

Kodama, Lockheed's $7

inillion con-

• suitant it dopan.

Via assaiso established that tie

• State Department kept tabs on mulit-

national dealings, including the under,

the-table parments Foreign Survice

officers made it their business to know

whom the corporations were dealing

with on forcign soii, intormed suurces

swear. Jet for the record, the State

Department also has denied any knowl-

edge of the bribers.

The Deloiso Lepartmont also main•

lained a secret list of forcien agents

who received commissions on defense

contracts from multinational corpora-

lions. The military brass should have

the list. say our

sources, that illegal moner wag being

slipped to foreign bigmies.

Incidentally. our sources acknowl

edge somewhat ruefully that the bri-

very oiten produced contracts.

White House Rerolt - President

Ford's spcech researchers threatened

to walk out en masse just as he iras.

hitting stride in his politicai campaign

tio reels ago.

If the five researchers had quit, AIr.

Ford would have been deprived

denly of experts who search out the

his politicai

speeches, hut for his foreign and co-

mestic pronouncements. They also pro-

duce rescarch for the White House

staff on a variety of subjects.

The squall bles up in the office of

Robert T. Hartmann, the veteran Ford

specch wrilig.and the rescarch that

goes into it.

Aler three unhappy

quit last December,

Har nann resr.

ganized his nifice.

chango. he assioned a irnsued political

aide. Gwen .Inderson, to sugervise the

rescittle reen though she has little

Date

Dep. AD Adm. -

Dep. AD Iriv. _

Asst. Dir.:

Admin. _

Comp. Syst..

Ext. Affairs _

Files & Com. -

Gon. Inv. -

Ident. -

Inspection

Intell. -

Laboratory -

Legal Coun.

Plan. & Eval.

Spec. Inv. -

Training -

Telephone Rm...

Direçtor Sec'y _

The Washington Post -

B- 12

Washington Star-News

Daily News (New York) -

The New Yor!: Times -

The Wall Stret Journa!

The National Observer -

The Los Angeles Timer

MAR 2 ÷ 1076

ENCLOSURE,

42-116441-319

NW 68486 Docid:32989/17 Page 63

---

## Page 64

Anderson tangled with the respected

When lause rescarch chief.

Agnes

Waldron, and tried to fire her. When

Waldon's loral staff heardtrews,

they all threatened to quit, with vary.

ing degrees of vehemenee.

But they deferred the walk-out until

Waldron could get a hearing before Dr.

James Connor, the amiable presiden-

tial Cabinet secretary, who has also

• developed

into an

informal

IFhite

House

mediator.

Connor. as diyamarie Trith staffers

as he is with testy department heads.

urged

everyone to "cool it" while a

solution was worked out that would

keep President Ford

supplica with

research.

At this writing, Waldron is still at

the White House. but there is no as-

surance she will stay. Meanwhile,

Anderson is helding her own supervi-

sion of the speech rescarchers to a

cautious minin-

Footnote: Hartmann could not he

reached for comment.

Some

iFhite

House insiders

blame him

for the

flare-up, while others say he is help.

ing to resolve il. Anderson and Wal-

dron did not return our calls.

aunter Herall-lo

appease. the

Fil's vowerful friends in Congress,

the

House

intelligence committee's

criticism of the. FBI was

watered

down on orders of the staff chief, A.

Scarle Field.-

This caused a mini-revolt among the

staff members who prepared the FBI

section of the report. Infuriated, they

fired off an angry letier uf protest

to Ficid, charging that the weakened:

report was an "unhappy structure,"

which "We don't like"

© 1976. United Feature Syndicate, Inc.

NW 68486 Docld:32989711 Page 64.

---

## Page 65

TO

OPTIONAL FORM NO. 10

5010-106

MAY 1962 EDITION

GSA GEN, REG. NO. 27

UNITED STATES GOVERNMENT

Memorandum

VER. CALLAHAN

DATE:

3/19/76

Dep. AD AC

Dep. ADI

Asst. Dir.l)

Admin.

Comp. Syst. -

Ext. Affairs

Filoges Co

Gen.

Ident

FROM

MR. J. B. ADANA

SUBJECT MISSING CIA DOCUMENTS

1206

aborator

Plan. & Eval. -

Spec. Inv. -

Training.

Gor

Legal Coun. -

Telophone Rm...

Dave Bowers, investigator for Congressmah Flynt's

Director Soc'y.

Committee on Ethics and Standards, called this morning to advise

about a week ago a friend in another investigative agency had advised

that another individual has stated that someone on the street has for

sale missing documents which had been allegedly furnished by CIA

to the Pike Committee during its inquiries and had been determined

missing upon the termination of the Pike Committee. These

apparently are documents which have been referred to in news

articles recently wherein it has been stated that over 200 CIA documente

may be missing.

Mr. Bowers advised that his friend in the other agency

intends to meet with his sour ce on Saturday to attempt to secure

additional details and will thereafter get back in touch with Mr. Bowers.

Mr. Bowers and Congressman Flynt feel that inasmuch as this matter may

involve a criminal violation that any information developed by them

should be furnished to the FBI foR appropritt-aling: 2-116464-318

These documents are not the Pike Committee report which

was obtained by Daniel Schorr, however, may have some bearing on that

matter also. Accordingly, it is felt that the Department should be orally

alerted at this time by the Intelligence Division as well as CIA. Intelligence

Division has been instructed to make appropriate contacts with the bo

Department and CIA.

WAR

80 1976

ACTION:

For information.

5-19-74.86

As Maran, lynna hous

1 - Mr. Leavitt

APPROVED:

i rEAssoc. Dir...

Dep. AD Adm..

I - Mr. Mignosa

Asst, Dir.:

Admin...

84 APR 2

a: man i

NW 68486 Docld:82989711 Page 65

Comp. Syst.

Ext. Affairs.

Gen. Inv.

Ident...

Inspection

Intell.

Laboratory.

Legal Coun

Plan. & Eval.

Rec. Mgmt..

Spec, Inv..

Training..

---

## Page 66

I'()

OPTIONAL FORM NO 10

MAY IDAZ EDITION

5010-108

GSA GEN. REG. NO. 27

UNITED STATES GOVERNMEN'I

Memorandum

g. g. Me Dermett 1891

DATE: 3-12-76

SUBJECT:

•Houstely

The attached

HR. 59111-160

has been

appropriately initialed, and

received in the Recordy use do instant transmittal memorandut

indicated for file.

all necessary recording and indexing will be accomplished.

is to be noted this form is for internal use only within the

Records section, principally by the Routing Unit where bulky

material not accompanied by memorandum is usually received.

The enclosure, if bulky and not usually filed with

other papers in file, may be detached but this action should

be Clearly noted under the word "Enclosure."

Enc.

62-116464-

TOT RECORDED

7 MAR 12 1976

ENGLOSURE,

5-TJM

N8 & A B1 5. 3783711 Page 66

---

## Page 67

:NVM68486 Docld:32989711 Page 67

ENCLOSURE

121160/604-

---

## Page 68

14

1 Member from Public Works and Transportation.

1 Member from Government Operations.

1 Member from Interstate and Foreign Commerce.

A Chairman to be nominated by the Speaker.

b. The candidates for membership on the standing Committee on

Intelligence shall be nominated by resolution from

the above listed

supplying the number of members designated above.

Nominees shall then be confirmed by the Democratic caucus or the Re-

publican conference by means of a secret ballot. Vacancies shall be filled

by like action.

c. Candidate selection for service on the standing Committee on

Intelligence shall be based on individual qualifications and technical

xpertise, rather than party affiliation, except that, the total member

ship of the standing Committee on Intelligence must always have no

less than one-third of its total members from each of the major parties.

Should the occasion arise when a Major Party does not have one-third

of its members represented on the committee, the Speaker shall desig-

nate to the nominating committee or committees the necessary number

of partisan candidates to be selected.

B. RELEASE OF INFORMATION

1. I recommend that the standing Committee on Intelligence. or

any member of the committee. shall not directly or indirectly release

any information,

documents or data bearing a security classification

and until the following sequential

procedures have

completed:

(a) The committee passes a resolution expressing the need and

reason for declassification.

(6) The appropriate administrative agency has been allowed

reasonable time to agree with the declassification

or to present

reasons for opposition.

the Majority Leader, the Minority

Minority Whips and the chairmen of the committees from which

the Intelligence Committee Membership has been selected (a

najority of the total being present), shall approve or disapprove

of the declassification and release

d) Notwithstanding the committee's approval or disapprova.

ny committee member who disagrees shall have a right to peti

tion individual members of the Leadership Committee. If three or

more members of the Leadership Committee shall concur, said

member shall have a right to be heard by the full Leadership

(e) Any Intelligence Committee member who shall release any

materials, documents, or data bearing a security classification,

without complying with the above provisions shall be subject to

expulsion from the House of Representatives and shall be subject

to appropriate criminal or civil action, notwithstanding legislative

immunity.

2. a. Any member of the House having knowledge of classified

materials, documents or data who shall

release such material, doc-

uments or data without obtaining the approval of a majority of the

NW 68486 Docld:32989711 Page 68

:

15

members of the Leadership Committee shall be subject to expulsion

from the House of Representatives and shall be subject to any appro-

priate criminal or civil actions, notwithstanding legislative immunity.

C. PENALTIES FOR INPROPER RELEASE OF CLASSIFIED INFORMATION

I recommend that the United States Code be amended to provide

criminal sanctions against any person who shall disclose

reveal

properly classified information, documents, data, or plans concerning

the national security of the United States, such sanctions to apply

regardless of intent to harm the United States or to aid a foreign na-

tion, notwithstanding legislative immunity.

DALE MILFORD.

RECOMIMENDATION Or HON. MORGAN F. MURPHY

In light of the investigation by the House Select Committee on In-

telligence, I recommend that Congress enact legislation or amend exist-

ing legislation to protect the confidentiality of tax records of American

citizens.

Section 6103 of the Internal Revenue Code refers to tax returns as

"public records" but specifies that they be "open to inspection only

upon order of the President and under rules and regulations pre-

scribed by

the Secretary or his delegate and approved by the

President."

Public use and abuse of the records, however, have been more the

rule than the exception in the recent past. There has been little em-

phasis on the need for protecting the confidentiality of tax records.

I recommend a shift in emphasis back to the basic right of taxpayers

to privacy regarding their tax affairs. We must do more than limit dis-

closures to certain agencies, individuals, congressional committees, and

states. We must require the entity seeking tax information to prove

hat such information is essential to the entity's function and further

that the tax information cannot otherwise be acquired. I suggest that

House and Senate committees with jurisdiction act with all deliberate

speed to finalize their work on legislation to better ensure the privacy

of tax records.

MORGAN F. MUrPHY.

ADDITIONAL RECONMENDATION OF HON. JAMES V. STANTON

I would go beyond recommendation N of the select committee, whicl

proposes that the Assistant to the President for National Securit

Aftairs be prohibited from holding any Cabinet-level position, by rec-

ommending the enactment of legislation which (1) states that the

individual who holds this position cannot hold any other office in the

federal Government, nor may he be a member of the Armed Forces,

(2) requires Senate confirmation of this position, and (3) in order to

chieve these purposes. establishes statutorily the position of Special

Assistant to the President for National Security Affairs. I have intro-

duced a bill, H.R. 10754, which embodies these provisions.

JAMES V. STANTON.

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16

ALTERNATIVE RECOJNENDATIONS OF HON. ROBERT MOCLORI

I support the recommendations contained in the majorty report

under headings: D, F, G, l,d, L, N, O, Q, R, and S (with the exception

of section 1). I do not approve of the other recommendations and I

offer the following alternative recommendations in those areas in which

I believe reform is necessary and appropriate.

ALFORNATIVE RECOMMENDATIONS OF HON. ROBERT MCCORI

I recommend that there be established a permanent standing Com-

1. The committee shall consist of five members composed of one

should reflect a broad representation of political and philosophical

2. No member of the committee may serve more than 3 consecutive

terms on the committee, and no member of the statt may serve more

than 6 consecutive years.

3. Any past or current member of the committee staff who shall re-

lease, without authorization of the committee, materials or informa-

tion obtained by the committee shall be immediately terminated from

employment and shall be fully subject to criminal and civil liability,

notwithstanding legislative immunity.

The committee's jurisdiction shall include all legislative and

oversight functions relating to all U.S. agencies and departments en-

gaged in foreign or domestic intelligence activities. The committee

shall have exclusive jurisdiction for budget authorization for all in-

other committees of the House.

les of the House should be amended t

to S. Distrit sop tor the a rict i Colomb preceding preino

authorization from the full House.

B. RELEASE OF INTORMATION

1. I recommend that the House Committee on Intelligence have the

(6) Atter such consultation, the committee may, by an affirma

ive vote of a majority of the members, submit the material pro

posed to be released to the President.

(o) If within a reasonable period of time the President certi-

fies in writing that the disclosure of the material would be deteri-

MMY 68486 Docld 32989711 Page 69

13

adopt the methods of criminals is to become indistinguishable from

RECOMMENDATIONS

I strongly support the committee's recommendation that no mem-

ber of the House serve on the new oversight committee we propose for

nore than 6 years. Such a limitation will help to ensure that the com

mittee's members retain their objectivity and not come to 100k on the

intelligence community as their own private preserve.

A similar limitation should be imposed on the Directors of the CIA

and FBI, so that neither is allowed to serve for so many years that he

an no longer distinguish between himself and his job

One of the committee's recommendations would require the FBI

agents or informants have a judicial warrant before attempting to in-

filtrate any domestic group or association. I agree that this require-

ment is necessary to protect the rights of American citizens, but, in

light of recent tragedies perpetrated by international terrorists groups,

I feel that such a restriction should not be imposed when the group

or association is wholly or partly made up of aliens.

SUMMARY

indeed, with

Gove comparis it the into ligence ances and indy profith

sional and very dedicated. Despite past lack of accountability,

CIA is doing a high level, cost effective job, particularly in its intelli-

gence gathering function.

However, there are serious deficiencies in the operation of the ClA.

Achi con are to ve conding with esponsibility and in emili ance

with responsibility and integrity-and

without undermining the spirit of our democratic society.

BILL LOHNAN.

RECOMMENDATIONS OF HON. DALE MILFORD

A. A HOUSE COMMITTEE ON INTELLIGENCO

1. I recommend that there be formed a standing Committee on In-

telligence of the House of Representatives, and that committee shall

consist of members who hold the respect and confidence of the general

2. The membership of the standing Committee on Intelligence shal

be selected from sitting members of the following House committees :

1 Member from Science and Technology.

1 Member from Banking and Currency.

1 Member from Judiciary.

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## Page 70

12

our tradition of an open society, as well as this Nation's moral position

throughout the world. For, if this Nation does not maintain that moral

position, there is now no other country in the world who can take.our

place.

LI L were CiA Director, L would be happy to see a strong congres-

fional oversight committee, because it would be the most eftective sate-

guard against wrongly conceived and wrongly motivated covert ac-

tons originating in the executive branch.

Despite allegations to the contrary, congressional investigations

have not prevented the Agency from doing an effective job. Past per-

formance bears this out; in fact, the failure of the CIA and other in-

telligence agencies to give adequate warning of several international

crises may simply indicate the limited ability of intelligence to safe-

guard our national security.

l'here was, for example, the October 1973, Mideast war, where there

was more than enough information available to warn of the impend-

ing Arab attack. There were other failures as well; the 1974 coup in

Cyprus and the subsequent Turkish invasion; the Indian nuclear ex-

plosion; the Soviet invasion of Czechoslovakia; the Tet offensive in

Vietnam; and the leftist coup in Portugal. All of these "failures" oc-

curred long before any congressional committee was directed to in-

vestigate the intelligence community.

The intelligence community has operated in the past with a virtual

blank check budget. This not only removes any incentive to curtail

wasteful programs, but, through the very availability of funds, leads

to both foolish and dangerous covert operations.

Yet, 1 am concerned by the committee's recommendation that a line-

item figure for the CIA appear in the budget. Is it really possible to

get a true and accurate figure? In the event that one of the branches

of the armed services details a vessel to the CIA, is the cost of that

vessel a part of the costs of intelligence? In my view, a line-item fig-

ure for the Agency must conform to principles of sound accounting

practice. Only then will it have any meaning at all.

THE FBI

The committee hearings on the FBI documented the problem of in-

formants turned agents-provocateur. Informants are necessary; the

use of provocateurs is totally contrary to principles of decency and

honesty.

One of these agents-provocateur was William Lemmer, who worked

in Florida as an informant for the Bureau. Lemmer infiltrated the

Vietnam Veterans Against the War and became one of the most active

members of the chapter. As such, he allegedly suggested violent means

of expressing VVAW disagreement with the country's Vietnam war

policy. This kind of activity, directed by the Nation's foremost law

THE IRS

, and "Operation Haven",

has gone far beyond its prescribed role in tax enforcement. Each of

NW 68486 Docld:32989711 Page 70

17

mental to the national security of the United States, the material

would not be disclosed or released. Failing any such Presidential

certification, the committee would be able to release the material.

(d) In the event of such a certification by the President, the

committee shall be given standing to sue and the U.S. District

Court for the District of Columbia shall be given jurisdiction

over such disputes, so that the matter can be submitted to the

courts for judicial determination.

C. COVERT ACTION

1. I recommend that all activities involving cirect or indirect at-

tempts to assassinate any individual be prohibited by law except in

time of war.

2. I recommend that appropriate legislation be enacted to require

prior approval by the flouse Committee on Intelligence for all mili-

tary and paramilitary covert actions proposed by the U.S. Govern-

ment, including those actions in which arms or funds for arms would

3. I recommend that, as to all other covert actions of a significant

size or involving significant risk, the Director of Central Intelligence

be required, within 48 hours of initial implementation, to notify

the committee in writing and in detail of the nature, extent, purpose,

risk and costs of the operation.

D. IMPROVED SECURITY FOR CLASSIFIED INFORMATION IN TELE HOUSE

1. I recommend that the Rules of the House be revised to provide

that any member who violates the confidentiality of any executive

session of any House committee may be censured or expelled by a two-

thirds vote of the House.

2. I recommend that the rules of the House be amended to provide

that any committee of the House which has access to classified infor-

mation has the authority to discipline any member which it reason-

ably believes has disclosed or publicized such information in violation

of the rules of confidentiality duly adopted by such committee. These

committees ought to be delegated authority by the full House to take

appropriate disciplinary action against such a member to ensure com-

pliance with the rules of confidentiality. Appropriate disciplinary

action could be taken only after a vote of a majority of the majority

nembers and a majority of the minority members of the committee

und any member against whom such disciplinary action is taken shal

have a right of appeal to the full House.

I recommend that the General Accounting Ofice be empowered to

conduct full and complete financial audits of all intelligence agencies.

There should not be any limitation on GAO access in the performance

of these functions by any classification system, and the financial audit

function of GAO should specifically apply to those funds which cur-

rently may be expended on certification of a Director of an agency

alone.

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18

I. DETAILEES

I recommend that intelligence agencies disclose the affiliation ot

their employees on detail to other Government agencies or depart-

ments to the heads of such agencies; and that detailees not be placed

in any position in which an actual or apparent conflict of interest

RoBErT McCLOry.

DISSENTING AND ADDITIONAL RECONAIENDATIONS OF HON. DAVID C.

TRIEN

(To the Recommendations of the House Select Committee on

Intelligence)

The following are my specific recommendations (on the subjects

which they concern) which may differ, vary or coincide with recom-

mendations on similar subjects by the majority. The absence of any

recommendation on a subject covered by the majority is not to be

construed as concurrence or nonconcurrence

with the majority

recommendation.

Recommendation No. 1: Joint Oversight Committee

I recommend that there be established a Joint Congressional Com-

mittee on Foreign Intelligence which committee shall have oversight

and legislative authority with respect to all foreign intelligence

(a) The joint committee shall consist of no more than 14 mem-

bers, equally divided between the House and Senate.

mittees of the House and 'Senate having jurisdiction over inter-

national attairs, armed services, and detense appropriations shall

each be entitled to representation on the joint committee by at

least one member of those committees.

(5) Membership on the joint committee shall be limited to a

period of 6 years and, beginning with the fifth year, at least one-

third of the committee membership shall consist of new members

terminated from employment and shall be fully subject to crimi-

nal and civil action, not withstanding any plea of legislative

am i he one come it al rate it rena pare

committee the right to enforce its subpoenas through a civil con-

tempt proceeding in the U.S. District Court for the District of

Columbia without specific authorization from the full House.

Recommendation No. 2: Obligations of the Executive Branch

I recommend that the executive branch be required to keep the

joint committee promptly and fully informed as to all intelligence

activities, including covert actions, and including full disclosure of

allocations wherever they may be in the budget with regard to foreign

intelligence and all expenditures of funds by all departments and

NW 68486 Docld:32989711 Page 71

11

justify continued covert action on grounds that we foster and develop

democracy around the world.

If covert action isn't banned, the committee's recommendations on

covert action should be strengthened and it should be required that

the Oversight Committee have preknowledge of all major covert

The nature of covert actions and espionage subtract from the main

a ponsibility of the CIA -to serve as an independent central research

analysis facility. Since active involvement in clandestine opera-

ions can force analysis to be silenced for policy needs, certain present

functions of the CIA should be divided and a separate espionage

human intelligence) /clandestine operations agency be formed

In his testimony, Dr. Ray S. Cline called for a central research and

analysis facility to provide objective assessments of national security

data to Congress and the National Security Council. I agree, and 1

Agency apparently does better than any other agency in the intelli-

community. Its research and analysis functions

should be

facilitated

agency to conduct whatever espionage and covert action functions are

authorized.

In addition, I recommend that both the new intelligence research

and analysis agency and the new espionage and covert agency be inde-

agencies subject to all controls recommended

Possible violations of law by intelligence agency employees or agents

should be investigated and, if required, prosecuted by the Department

of Justice. No agency

should have the right or capability to bar in-

vestigation or prosecution. In addition to criminal penalties there musi

for civil habilty

for abuses of authority. Legislation

should provide for jurisdiction, justiciabilty and standing, discovery,

Several other recommendations are included in my supplemental:

views to the report of the House Select Committee on Intelligence.

Every member and the public must have access to that report.

It is imperative that the House of Representatives now consider

these issues and pass legislation based on these recommendations.

RONALD V. DELLUMS.

ADDITIONAL RECOMMENDATIONS OF HON. WILLIAM LOHMAN

a strong, te ques, on in sin al intelligence Snited Statesis have

curity depends on it

Yet that intelligence service is but part of our Government. And,

like all parts, it must be balanced against a continuing need for and

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## Page 72

It seems to me that whatever action this country takes in a world

that is becoming this small and this interdependent ought to be overt

action. The United States ought to begin to play an aggressive role as

an advocate of peace in the world, as an advocate of humanitarian

concerns, and frankly I believe that the level of secrecy that we have

been exposed to as members of this committee flies in the face of

democratic principle.

Many people conveniently irap themselves quite fully in the flag,

but when pressed to the wall on whether or not they are willing

seriously to support democratic principles, I find that they are willing

to sidestep principle.

Democracy is based on a notion of the development of a consensus.

In my estimation covert action does not provide for that consensus

It does not provide for debate needed to achieve consensus. Instead,

covert actions are recommended and approved by a small select group

I am willing try democracy. My concern is that our democracy

as been, for the most part, a charade or merely symbolic, and I am

not sure that many of us truly believe in the concept of majority rule.

I am concerned about secretly providing arms and aid to other

countries, presidents able to sit down with other presidents and making

deals. Yet these things are issues tre found that are part of the range

of covert actions utilized by this country.

I think our world is much too complicated to continue to function

effectively in this manner. The more we get involved in covert action,

the more we become accused of covert actions in places where we may

not be involved at all.

the question is, does it really assist this country's role in the

world to contition is, so kind of altivities. My coster is no. Indeed,

I think we do much more harm continuing to function covertly.

Many of these operations are well-known except to the people of the

States and/or their representatives. So where does the covert rationale

apply? It keeps people who are part of this society out of the decision,

and it comes at a level which keeps representatives of the people out

of those decisions.

I see no justification for covert operations. If we want to assist,

then why not do it in the open and let the debate deal with the ques-

tion of what our role "ought" to be somewhere in the world. On the

basis of a consensus publicly made, then we can assist. But why do we

have to play games? Why do we have to get involved?

Another related question is where have covert operations taken us?

Are the nations that we have been involved with free democratic

societies where the masses of people have benefits of democracy, or are

those nations for the most part, military dictators, right-wing tuntas,

or regimes with extraordinary wealth and power in the hands of a few

at some different conclusion. But I don't think anyone can

NW 68486 Docld:32989711 Page 72

19

agencies of the executive branch for foreign intelligence and covert

Recommendation No. 3: Access to and Release of Classified Infor

I recommend that the rules of the House and Senate, where neces-

sary, be conformed to accommodate the following recommendations,

and that, where necessary, legislation be enacted in aid thereot:

(a) Access to intormation and materials turnished to the joint

committee in executive session or classified secret by the execu-

tive branch shall not be accessible to other members of Congress

except upon a resolution permitting

such access adopted by a

wo-thirds vote of the membership of both the House and Senate

Members, voting in person and not by proxy.

(b) Prior to any action to permit access of such information to

other Members of Congress, the executive branch shall be given

reasonable opportunity to testify and present evidence in execu-

ive session regarding the proposed action

c) Materials and information

received from the executive

branch in executive session of the joint committee or otherwise

classified secret by the executive branch may be publicly released

only upon adoption of the resolution specified in subparagraph

(a) above and upon the adoption of a resolution permitting pub-

lic disclosure adopted by a two-thirds vote of the membership of

both the House and Senate, the debate on which shall be conducted

in secret session, and the vote on which shall be in open session by

recorded vote.

(d) Any Member of Congress who reveals any information in

violation of the foregoing

procedures may be censured or

ex-

pelled by a two-third vote of the House or the Senate, as the case

Recommendation No. H: Agreements for the Handling of Classified

Information

I recommend that any information furnished to the joint committee

by the executive branch under an agreement with the joint committee

for the handling of such information shall be binding in accordance

with the terms of that agreement on the joint committee, on the House

and Senate, and on each Member of Congress. Violation of the terms

of the agreement shall be grounds for censure or expulsion by a two-

thirds vote of the Flouse or Senate, as the case may be.

Recommendation No. 5: Director of Central Intelligence

I recommend that a Director of Central Intelligence shall be estab-

ished, separate from any of the operating intelligence agencies, for

the purpose of coordinating and overseeing the foreign intelligence

community. His purpose shall be to eliminate duplication in collection

and promote competition in analysis.

(a) The DCI shall be appointed by the President with the advice

(b) The DCI shall be the chief foreign intelligence officer of the

United States, and shall be responsible for the supervision and control

of all agencies of the United States engaged in foreign intelligence.

(c) The DCI shall be a member of the National Security Council.

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20

) The DCI may not hold any other position, office or title in the

U.S. Government.

(e) The DCI shall, along with such other duties, constitute an office

of Inspector General for all of the foreign intelligence agencies,

in-

cluding all agencies of Government which have foreign intelligence

functions. Such ageney shall have the obligation to report all allega-

tions of misconduct and/or unlawful activities to the DCI.

(t) The DCI shall be responsible for the national intelligence esti-

mates and daily briefings of the President.

(g) The DCI shall be responsible for reporting to the Joint Com-

mittee on Intelligence and other appropriate committees of Congress.

(k) All budget requests which include funds for foreign intelligence

or covert activities shall, insofar as such funds are concerned, be pre-

pared in consultation with the DCI. Although the funds for foreign

intelligence activities will continue to be budgeted in the respective

agency budoets, the DCI shall be responsible to the joint committee for

full reporting on the foreign intelligence and covert activities funding

set for the all a shay budgetinate the functions of all foreign intelli-

efficiency of the agencies, and report to Congress on the foregoing at

least annually.

Recommendation No. 6: Disclosures to C'ongress

such prohibition all committees of Congress having appropriate juris-

diction.

Recommendation No. Y: Assistant for National Security Affairs

I recommend that the Assistant to the President for National Secu-

, rity Affairs be prohibited from holding any other position, office or

title in the U.S. Government.

Recommendation No. 8: News Media and Publications

(1) I recommend that U.S. foreign intelligence agencies be pro-

hibited from covertly providing money or other valuable consideration

li ence do none oration.

o employees or full-time representatives of any journal or electroni

nedia with general circulation in the United States. and prohibite

from utilizing such individuals for purposes of cover; except that such

prohibition shall not apply to the occasional or casual furnisher of

news stories or articles to the news media.

•(2) I recommend that the U.S. intelligence agencies be prohibited

from the covert publication of books articles or stories in any journals

or electronic media with general circulation in the United States.

Recommendation No. 9: Classification

I recommend that the classification and declassification of informa-

tion be the subject of specific legislation by the Congress.

Recommendation No. 10: Directorof the FBE

I recommend that the Director of the FBI have a term of office of

5 years and that no director serve more than two 5-year terms.

9

These recommendations should stimulate extremely important and

timely discussion, debate and consensus about such vital and basic

questions as :

(1) Is secrecy compatible with principles of democracy osten-

sibly embodied in our constitutional form of government!

(2) If and where is secrecy necessary?

(3) How much secrecy is required and what forms should it

take?

(4) What safeguards against abuse are required?

(5) What, it any, are our legitimate and necessary intelligence

needs?

of

roanizations are required to meet on

mate" intelligence needs of our Nation, and on the other hand

safeguard against abuse of people, power, and the Constitution?

(7) As our world continues its rapid changes and shifts, what

level of our already limited resources do we perceive as necessary

to meet our intelligence needs?

These and other questions must be discussed and debated within an

atmosphere of reason. To resolve these questions and reach some con-

sensus, it will demand the best within each of us as representatives of

the people. The issues both implicitly and explicitly raised by the

committee recommendations are of extreme importance and must be

addressed within that context.

I oppose the committee's recommendation regarding: (A) A House

Committee on Intelligence, insofar as, "

... The committee shall have

exclusive jurisdiction.

.. for all covert action operations." I believe

that this information should be more widely shared. Discerning over-

sight is facilitated by involving several relevant committees, and I

think jurisdiction over covert action operations should be shared with

those committees presently involved.

I am opposed to that part of the recommendation regarding: (B)

Release of information (4) "The select committee recommends that

the rules of the Flouse be revised to provide that any member who

reveals any classified information which jeopardizes the national se-

curity of the United States may be censored or expelled by a tro-

"National security" is now an infamous

chievous interpretation. There is a frest danger in constructing a

one open to mis-

chilling system which allows demagogues the easy opportunity of

injuring a member by making reckless charges.

The committee's recommendation on covert action is not satisfac-

tory. The committee recommendations say,

"1. The select committee

recommends that all activities involving direct or indirect attempts to

assassinate any individual and all paramilitary activities shall be pro-

hibited except in time of war"

We should prohibit all covert action.

We live in a world becoming increasingly smaller and interde-

sendent. a world. in which secrecy and cloak and dagger methods. in

my estimation, are anachronisms from the past. They should have no

place today in the world we will continue to live in.

1

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8

proval. I have proposed that a standing committee be informed of

covert operations before they

are approved by the President. The

tanding committee or committees should not have veto power, bu

the committees, or their members individually, should have the oppor-

tunity to make their views known to the President.

No doubt a number of members would simply write out a list of

reservations to cover themselves in case an operation went wrong. But

is that bad! It is a good idea to have advice reaching the President

from a few people who have a bias for negativism. There is too much

me-tooism in the executive branch already.

Furthermore, if the members of the new 40 Committee knew that

Congress was part of the consultative process, they would be likely to

move with greater care and discretion than has been true in the past.

trior notilication of Congress is one more governor on the intelhgence

vehicle which could inhibit the kind of reckless driving the committee

uncovered in its investigations.

'The committee, in a number of its recommendations, has sought to

provide a framework for improvement. But we have left the

high and dry organizationally. I believe that the CIA should be di

vided into two separate agencies one devoted only to analysis and

the other responsible for clandestine collection and covert operations.

and women we need in intelligence analysis. The hostility the CIA ha:

aroused is bound to discourage many good people from applymg.

Furthermore, the analysts need interchanges with academia, and these

ties have been strained by the public perceptions that anyone con-

nected with the CIA has blood on his hands.

We have also seen

One sie of to con, sin ted he to Phat, rae it see shins,

CIA was not in a position to analyze it independently and critically.

Critics say it is impossible to separate covert collection from covert

perations,

tion and covert operations in the same organization and simply splits

them off from the analytical function.

No improvements will result if proposals for reform are consigned

to the archives like the report of this committee. Our intelligence serv-

ices have been ignored by Congress in the past and we have seen the

consequences of that inattention. Congress now has a second chance to

decide if it wishes to play Pontius Pilate and wash its hands of an

unpleasant business or confront the issue headon. I hope the Congress

will not abdicate its responsibilities any more.

ADDITIONAI RECOMMENDATIONS OF HON. RONALD V. DELLUMS

I supported the committee majority in bringing to the House of

Representatives those recommendations finally adopted by the com-

mittee.

However, this should

not indicate my approval of all the

dopted recommendations; several are not strong enough and severa

idditional recommendations should have been adoptec

NW 68486 Docld:32989711 Page 74

21

Recommendation No. 11: Infiltration of Groups or Assocrations

I recommend that judicial warrant must issue,

on probable cause,

before an informant or any other agent of the FBI may infiltrate any

Lomestic group or association, when (1) investigation of such grou

r association or its members is based solely on title 18 U.S:C

sec.

vocated or suggested the use of violence, terrorists activities or other

unlawful activity.

Recommendation No. 12: Study of Intelligence Operations of Foreign

Nations

I recommend that the Joint Congressional Committee on Intelli-

gence (or, in the absence of the creation of such a committee, the ap-

propriate

congressional committee or committees) promptly com-

mence a detailed investigation and study of the intelligence opera-

tions of foreign nations, including, but not limited to the intelligence

operations of the U:S.S.R. and the Peoples Republic of China, which

investigation and inquiry shall include, but not be limited to, the

following:

(a) The means by which intelligence is gathered relating to activi-

ties of the United States and its allies, both within and outside of the

United States.

(b) The extent of valuable and/or critical intelligence information

gathed by foreign nations from publicly available joumals and

(c) The methods employed by and the extent of success of toreign

nations in the rècruitment of American or allied nationals in espio-

nage activities, and the methods employed by and the extent of success

of foreign nations in infiltrating the U.S. Government or U.v. organi-

zations, corporations, associations and groups.

DAVID C. TrEEN.

ATTEENATIVE RECONMENDATIONS OF HON. ROBERT W. KASTEN, JR.

INTRODUCTION

Although I wholeheartedly support many of the recommendations

proposed by the committee's majority, the majority proposals collec-

andy prove men tely de ect id be mentin he U, intelligence

intelligenc

To indicate specific points of agreement and disagreement, I have

reproduced below the majority recommendations together with my

own alternative or additional proposals. Language in the majonty

report with which I disagree has been stricken out; my alternative

or additional language has been underscored.* In several instances, I

have also added brief comments in brackets following the recom-

mendation to which the comments refer.

1. A HOUSE COMMITTEE ON INTELLIGENCE

1. The select committee recommends that there be formed a [stand-

ing] Joint Committee on Intelligence of the House of Representatives

and the Senate.

* GPO style, set in italle type.

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## Page 75

a. The committee membership should reflect a broad representation

of political and philosophical views.

b. The committee should consist of not more than 13 or less than

nine members, designated by the President pro tem of the Senate and

the speaker of the House in consultation with the minority leader of

each House. The majority shall have one more than one-half of the

members appointed from either Flouse.

c. No Member of the committee may serve more than 3 consecutive

terms on the committee, and no member of the staff may serve more

than 6 years.

d. Any past or current member of the committee staff who shall re-

lease, without authorization of the committee, materials or information

obtained by the committee shall be immediately terminated from em-

ployment and shall be fully subject to criminal and civil action, not-

ivithstanding legislative immunity.

e. The committee shall be vested with subpoena power and shall

have the right to enforce by a proceeding for civil contempt its sub-

poenas in the U.S. District Court for the District of Columbia or any

other court of competent jurisdiction, [without authorization] if au-

thorized [from the House, provided the committee has so designated]

by resolution. The committee staff shall be given statutory standing to

represent the committee in any proceeding arising from the issuance

of a subpoena.

f. The committee's jurisdiction shall include all legislative and over-

sight functions relating to all U.S. agencies and departments engaged

in foreign or comestic intelligence. The committee shall have exclu-

sive jurisdiction for budget authorization for all intelligence activities

and exclusive jurisdiction for all covert action operations. All remain-

ing oversight functions may be concurrent with other committees:

Note: 1 am opposed to the creation of two oversight committees on

intelligence: one in the House and one in the Senate. I favor instead

the creation of a joint committee because it will reduce the burden on

he DCI and intelligence officials of repeating testimony before com-

nittees with similar jurisdiction and also reduce the burden of Con-

ress by having many members assigned to tasks which are duplicative

In addition, concentration of oversight in one joint committee would

reduce the possibility of unauthorized disclosure of information and

more importantly would help assure that problems would not

between two chairs" and be addressed by neither committee.

that each appropriations committee in reviewing the budget of the

intelligence-gathering agencies would have an oversight function re-

duces the possibility that one joint committee would be co-opted by

the intelligency agency.]

B. RELEASE OF INFORMATION

1. The select committee recommends that rule XI.2 (e) (2) of the

House Rules is amended to read as follows:

"Each committee shall keep a complete record of all committee ac-

tion which shall include a copy of all reports, statements, and testi-

mony of witnesses whether received in open or in erécutive session."

• 42. The Committee shall have the right to release any information or

documents in its possession or control by a vote of a majority of the

NW 68486 Docld:32989711 Page 75

1. The select committee recommends that judicial warrant must

issue, on probable cause, before an informant or any other agent of the

FBI may infiltrate any domestic group or association, when investi-

eation such grous, as sciation or its members is based solely on

2. The select committee recommends that the Director of the FBI

have a term of office no longer than 2 presidential terms.

The select committee recommends that the Internal Security

Branch of the Intelligence Division be abolished and that the counter-

intelligence branch be reorganized to constitute a full division named

the Counter-Intelligence Division; that the mission of this Division

be limited to investigating and countering the efforts of foreign di-

rected groups and individuals against the United States

4. The select committee recommends the transfer of all investiga-

tions of alleged criminal activity by domestic groups or individual

members thereof to the General Investigative Division.

5. The select committee recommends that regulations be promul-

gated that tie the investigation of activities of terrorist groups closely

to specific violations of criminal law within the investigative juris-

diction of the FBI and that charge the Department of Justice with

determining when a domestic political action group may be appropri-

ately targeted for investigation of terrorist activities.

ADDITIONAL RECOMMENDATIONS OF HON. LES ASPIN

All the hearings, all the hassles and all the headlines should have

underscored the fact that the Select Committee really faced three

challenges:

how to banish abuses from the intelligence system;

how to control covert operations; and

how to improve the intelligence product, the analyses for which

we spend so much money.

The committee has approved a number of recommendations which

go to the heart of these problems

The establishment of an Independent Inspector General for Intelli-

gence will provide an office designed exclusively to hawkeye the in-

telligence community and see that it is adhering to the law.

The institutionalization of a successor to the 40 Committee will pro-

vide systematic direction of covert operations by the executive branch

for the first time.

And creation of a more powerful director of central intelligence will

for the first time give one man the authority to whip the many in-

telligence fiefdoms into line and eliminate the duplication and waste

that the committee found to be rife.

I think that there is more that we could have done and I have two

additional proposals.

The select committee suggested that a standing committee be in-

formed of an approved covert operation within 48 hours after its ap-

H. Rept. 94-833-2

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## Page 76

6

0. RESTRICTIONS ON POLICE TRAINING AND RELATIONSEIPS

1. The select committee recommends that no agency of the United

or incirectly engage in the traming or the supplying

police agencies of the United States, and that contacts between police

agencies of the United States and U.S. foreion or military intelligence

agencies be limited to those circumstances which shall be required on

inch shit me pol

account of internal security or the normal requirements and functions

of such police agencies:

P. NEDIA, RELIGION, AND EDUCATION

1. The select committee recommends that U.S. intelligence agencies

not covertly provide money or other valuable consideration to persons

associated with religious or educational institutions, or to employees

or representatives of any journal or electronic media with general cir-

culation in the United States or use such institutions or individuals

for purposes of cover. The foregoing prohibitions are intended to

apply to American citizens and institutions.

2. The select committee further recommends that U.S. intelligence

agencies not covertly publish books, or plant or suppress stories in

any journals or electronic media with general circulation in the United

States.

Q. RESTRICTIONS ON MILITARY INTELLIGENCE

1. The select committee recommends that the intelligence compo-

ents of the armed services of the United States be prohibited fron

ngaging in covert action within the United States. It is further rec

ommended that clandestine activities against nonmilitary U.S. citizens

abroad be proscribed.

R. CLASSIFICATION

1. The select committee recommends that the classification of infor-

mation be the subject of the enactment of specific legislation; and

further, as an adjunct to such legislation there be provided a method

of regular declassification.

S. INSPECTOR GENERAL FOR INTELLIGENCE

1. The select committee recommends the establishment of an inde-

pendent Ofice of the Inspector General for Intelligence, who shall

nave full authority to investigate any possible or potential misconduct

on the part of the various intelligence agencies or the personnel therein.

The IGI shall be appointed by the President, with the approval of the

Senate, for a term of 10 years and shall not be permitted to succeed

himself. The IGI shall have full access on demand to all records and

ersonnel of the intelligence agencies for the purpose of pursuing his

nvestigations. He shall make an annual report to the Congress of hi.

activities and make such additional reports to the intelligence com-

mittees o1: other appropriate oversight committees as he may choose

or the committees may direct.

NW 68486 Docld:32989711 Page 76

23

Members of the Committee under such terms and conditions as the

committee shall deem advisable. The Committee, in making the deci-

sion whether or not to release such information, shall have the right,

but not the duty, to consult with other agencies of the government

within the intelligence community or executive branch with regard to

any

release of such

heretofore

secret

information.]

2. (a) The Joint Committee on Intelligence may disclose any in-

tormation upon the committee's determination that the national inter-

est would be served by such disclosure. In any case in which such com-

mittee decides to disclose any information requested to be lept secret

by the President, such committee shall notity the I resident to that

effect. Such committee may not disclose such information until the ex-

piration of 10 days following the day on which notice is transmittea

to the President. If (1) prior to disclosure of such information the

President submits a written certification to the Senate and the House

through such committee stating his opinion, and the reasons therefor,

that the threat to national security posed by such disclosure outweighs

any public interest in disclosure and that the question of disclosure is

of such importance to the vital interests of the United States that it re-

quires a decision by the full senate and the house of Lepresentatues

and (2) after receipt of a certification by the President made pursuant

to this subsection, the Joint Committee on Intelligence decides to refer

he question of aisclosure of such intormation to the senate and the .

House of Representatives, such information may not be disclosed un-

less the Senate and the House of Representatives agree to a resolution

approving the casclosure of such information, or the senate and the

House of Representatives agree to a resolution refermng the matter to

the Joint C'ommittee on Intelligence for final disposition and the Joint

Committee on Intelligence thereafter approves the disclosure of such

information.

(6) Any question referred to the Senate and the House of Repre-

sentatives by the Joint Committee on Intelligence pursuant to subsec-

tion (a) shall be disposed by the Senate and the Flouse of Representa-

tives by a vote on such question within 3 calendar days following the

day on which the question is reported to the Senate and the Flouse of

Representatives excluding days on which the Senate and the House

of Representatives are not in session.

13. In the event of a negative vote by the Committee on the release

of certain classified information, a Member of the Committee may

apprise the other Members of the House that the Committee possesses

information which he believes ought to be made public. Other Mem-

bers of the House would then be authorized to have access to that in-

obtaining the signatures of one-fitth of the flouse, the house shall

convene in secret session for the purpose of advising the entire Mem-

bership of the House of that information. The House may then vote to

release the information to the public.]

3. [4.] The select committee recommends that the rules of the House

be revised to provide that any member who reveals any classified infor-

mation which jeopardizes the national security of the United States

may be censured or expelled by a two-thirds vote of the House.

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24

C. COVERT ACTION

L. The select committee recommends that all activities involvin

lirect or indirect attempts to assassinate any individual [and al

paramilitary activitiesT shall be prohibited except in time of war.

2. The select committee recommends that as to other covert action

by any U.S. intelligence component, the following shall be required

within 48 hours of [initial] approval by the President.

a. L'he Director of Central Intelligence shall notify the joint com-

mittee in writing, stating in detail the nature, extent, purpose, risks,

likelihood of success, and costs of the operation.

b. The President shall certify in writing to the Committee that sucl

overt action operation is required to protect the national security o

the United States.]

[c.J 6. The committee shall be provided with duplicate originals of

the written recommendations of each member of the 40 Committee or

its successor.

3. Reports on all covert action operations shall be [terminated no

later than 12 months from the date of atirmative recommendation by

the 40 Committee or its successor.] submitted every 6 months by the

DCI, or as requested, to the joint committee.

D. NSA

[1. The Select Committee recommends that the existence of the

National Security Agency should be recognized by specific legislation

and that such legislation provide for civilian control of NSA. Fur

there, it is recommended that such legislation specifically define the

role of NSA with reference to the monitoring of communications of

Americans.]

1. The Director and the Deputy Director of the NSA shall be

appointed by the President and confirmed by the Senate.

[E. DISCLOSURE OF BUDGET TOTALSI

LI. The Select Committee recommends that all intelligence related

items be included as intelligence expenditures in the President's

budget, and that there be disclosure.of the total single sum budgeted

or each agency involved in intelligence, or if such an item is a par

I portion of the budget of another agency or department that it be

separately identified as a single item.]

[r.] E. PROFIBITION OF FUND TRANSFERS

1. The select committee recommends there be appropriate legislation

to prohibit any significant transfer of funds between agencies or

departments in connection with intelligence activities.

2. The select committee recommends there be appropriate legisla-

tion to prohibit any significant reprogramming of funds within

agencies

or. departments in connection with intelligence activities

without the specific approval of the Intelligence Committee and

appropriate committees of Congress.

• The select committee recommends there be appropriate legisla

10n to prohibit any significant expenditures of reserve or contin

WW 66486- Docld792989714 Page 77

5

rs and heads of foreign intelligence agencies from providing fu

formation to Congress should be amended to exclude committees c

Congress having appropriate jurisdiction.

I. NEY FOREIGN OPERATIONS SUBCOMMITTEE OF NSC

1. The select committee recommends that the National Security Act

119t7 be amended to provide for the establishment of a permaner

orelon Uperations subcommittee of the National Security Counc

The subcommittee's jurisdiction, function and composition shall be

as follows:

(a) The subcommittee shall have jurisdiction over all

thorized activities of U.S. foreign intelligence agencies except

those solely related to the gathering of intelligence.

(6) The subcommittee shall advise the President on all pro-

posed covert or clandestine activities and on hazardous collecting

(c) Each member of the subcommittee shall be required by lat

to submit his individual assessments of each proposal to the Presi-

dent in writing. The assessment should cover such matters as the

likelihood of success, the benefits of success, the damage resulting

and alternate ways of accomplishing the goal.

and tot

from tallure or exposure, the risks against the potential benefits

(d) The subcommittee shall be chaired by the Assistant to the

President for National Security Affairs and shall be composed of:

Director of Central Intelligence;

Secretary of State;

Deputy Director for Intelligence of CIA;

Chairman of the Joint Chiefs of Stati;

The ambassador (s), if there is one, and assistant secre-

taries of state for the affected countries and areas.

I. DETENSE INTELLIGENCE AGENCI

1. The select committee recommends that the Defense Intelligence

Agency be abolished and that its functions be transferred to the As-

sistant Secretary of Defense for Intelligence and the CIA.

DI. DETAILEES

1. The select committee recommends that intelligence agencies dis-

close the afiliation of employees on detail to other Government agen-

cies or departments to all immediate colleagues and superiors

N. ASSISTANT FOR NATIONAL SECURITY AFFAIRS

1. The select committee recommends that the Assistant to the Presi-

dent for National Security Aflairs be prohibited from holding any

cabinet-level position.

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## Page 78

4

(d) The DCl shall, along with such other duties, constitute an

Office of Inspector General for all of the foreign intelligence

agencies, including other agencies of government or branches of

he military which have foreign intelligence functions. such agen

les shall have the obligation to report all instances of misconduct

or allegations of misconduct to the DCl. This shall not constitute

a limitation upon the respective agencies reporting to the DCI

from maintaining their own Inspector General staff or similar

body.

(e) The DCl shall have an adequate staff for the purposes ex-

pressed herein and be responsible for the national intelligence esti-

mates and dally briefings of the l'resident.

(f)

The DCI shall be responsible for the preparation of the

national intelligence estimates and such reports shall be imme-

diately supplied to the appropriate committees of Congress on

(9) All budget requests shall be prepared by the agencies under

the jurisdiction of the DCI. As those parts of budget of the

military services or components of Department of Defense, they

shall be submitted as an independent part of such budgets to the

(h) The ICI shall be charged with the functions of coordinat-

ing foreign intelligence agencies under its jurisdiction, the elimi-

nation of duplication, the periodic evaluation of the pertormance

and efficiency of the agencies in question, and shall report to Con-

gress on the foregoing at least annually.

(¿) The DCI shall conduct a comprehensive inquiry into the

causes of intelligence failures,

including: inadequate collection

unusable technical out-

that cy at it a go o th Connie on that:.

senior officials, and report to the Committee on Intelli-

gence within 1 year.

H. FULL GAO AUDIT AUTHORITY

1. The select committee recommends that the General Accounting

Office be empowered to conduct a full and complete management as

well as financial audit of all intelligence agencies. There shall be no

limitation on the GAO in the performance of these functions by any

executive classification system, and the audit function of GAO shall

specifically apply to those funds which presently may be expended

on certification of a Director of an Agency alone.

I. INTERNAL FINANCIAL MANAGIMENT

1. The select committee recommends that the CIA internal audit

staff be increased and given complete access to CIA financial records.

and that overseas stations be audited at least annually. It is further

recommended that all proprietary and procurement mechanisms be

subjected to annual comprehensive review, by the Cla's internal

audit staff.

J. FULL DISCLOSURE TO CONGRESS

1. The select committee recommends that existing legislation (Na-

tional Security Act of 1947, Sec. 102 (d) (3)) restricting the Direc-

NW/ 68486 Docld:32989711 Page 78

25

gency funds in connection with intelligence activities without specific

approval of the Inteligence Committee and appropriate committees

of Congress

[G.] I. DIRECTOR OF CENTRAL INTELLIGINCE

1. The select committee recommends that a Director of Central In-

telligence shall be created, separate from any of the operating or ana-

lytic intelligence agencies for the purpose of coordinating and over-

the entire

foreign intelligence community

with a view

eliminating duplication in collection and promoting competition in

analysis. The DCI shall be nominated by the President with the ad-

vice and consent of the Senate. This office shall have the following •

powers and duties:

The DCI shall be the chief foreign intelligence officer of the

United States, and shall be responsible for the supervision and con-

trol of all agencies of the United States engaged in foreign intelli-

gence, the l hall a terine i the National Security Council.]

[c.] 6. The DCI may not hold a position or title with respect to any

the 2. The DCi shall along with such other duties, constitute an

Office of Inspector General for all of the foreign intelligence agencies

including other agencies of government or branches of the military

which have foreign intelligence functions. Such agencies shall have the

obligation to report all instances of misconduct to the DCI. This shall

not constitute a limitation upon the respective agencies reporting to

the DCI from maintaining their own Inspector General staft or similar

d. The DCI shall have an adequate staff for the purposes expressed

herein and be responsible for the national intelligence estimates and

daily briefings of the President.

e. The DCI shall be responsible for the preparation of the national

intelligence estimates and such reports shall be immediately supplied

to the appropriate committees of Congress on request.

f. All budget requests shall be prepared by the agencies under the

jurisdiction of the DCI. As to those parts of budget of the military

services or components of Department of Defense, they shall be sub-

mitted as an independent part of such budgets to the DCI.

g. The DCI shall be charged with the functions of coordinating

foreign intelligence agencies under its jurisdiction, the elimination of

duplication, the periodic evaluation of the performance and efficiency

of the agencies in question, and shall report to Congress on the fore-

going at least annually.

ompartmentation; and withholding of intormation by senior oficials

nd report to the Committee on Intelligence within 1 year

¿. The President's Foreign Intelligence Advisory Board (PELAB)

mission would be to oversee and advisé on the direction, guidance and

control of the intelligence community through the authomty of the

DC'I who would also serve as chairman of the PFIAB.

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## Page 79

26

The DCI would have overall authority and responsibility for mak-

ing re come motions to e tina sit do on be tete

from the statutory authomty of the ClA and transferred to the DCL

as chairman of the PFIAB:

(d) For the purpose of coordinating the intelligence activities:

of the several Government departments and agencies in the in-

terest of national security, it shall be the duty of the DCl under

direction of the National Securty Council

(1) to advise the National Security Council in matters concern-

ing such intelligence activities of the Government departments

and agencies as relate to national secumty,

(2) to make recommondations to the National Security Council

For the cooraination of such intelligence actrurtres of the depart-

• ments and agencies of the Government as related to the natrona

securty.

[NoTE: In essence, the PFIAB Chairman/DCI would become the

Nation's principal foreign intelligence officer, with authority over in-

telligence community budgets and resources, with independence from

CIA institutional affiliation, and with right of direct access to the

President as well as being statutory advisor to the National Security

Council.

The President's Foreign Intelligence Advisory Board—a prestigi-

exercise both an oversight and advisory role on sensitive intelligence

matters.]

[E.]G. FULL GAO AUDIT AUTHORITY

1. The select committee recommends that the General Accounting

Office be empowered to conduct a full and complete management as

well as financial audit of all intelligence agencies. There shall be no

limitation on the GAO in the performance of these functions by an

executive classification system, and the audit function of GAO shall

specifically apply to those funds which presently may be expended on

certification of a Director of an agency alone.

II. INTERNAL FINANCIAL MANAGEMENTT

[1. The Select Committee recommends that the CIA internal audit

statt be increased and given complete access to CiA hnancial recoras,

and that overseas stations be audited at least annually.] It is further

recommended that all proprietary and procurement mechanisms be

subjected to annual comprehensive review, by the [CIA's internal

audit statf.] GAO.

[J.]U. FULL DISCLOSURE TO CONGRESS

1. The select committee recommends that existing legislation (Na-

tional Security Act of 1947, sec. 102(d) (3) ) restricting the Directors

and heads of foreign intelligence agencies from providing full infor-

mation to Congress should be amended to exclude Committees of

Congress having appropriate jurisdiction.] the Joint Committee on

NW 68486 Docld:32989711 Page 79

3

3. All covert action operations shall be terminated no later than i

months from the date of affirmative recommendation by the 40 com-

mittee or its successor.

D. NSA AS AN INDEPENDENT AGENCY

1. The select committee recommends that the existence of the Na-

should be recognized by specitic Legislation

and that such legislation provide for civilian control of NSA. Fur-

ther, it is recommended that such legislation specifically define the

role of ISA with reference to the monitoring of communications of

I. DISCLOSURE OF BUDGET TOTALS

1. The select committee recommends that all intelligence related

items be included as intelligence expenditures in the President's

budget, and that there be disclosure of the total single sum budgeted

for each agency involved in intelligence, or if such an item is a part

or portion of the 'budget of another agency or department that it be

separately identified as a single item.

F. PROHIBITION OF FUND TRANSFERS

1. The select committee recommends there be appropriate legisla-

tion to prohibit any significant transfer of funds between agencies

or departments in connection with intelligence activities.

2. The select committee recommends there be appropriate legis-

lation to prohibit any significant reprograming of funds within

agencies or departments in connection with intelligence activities

without the specific approval of the Intelligence Committee and appro-

priate committees of Congress.

3. The select committee recommends there be appropriate legislation

to prohibit any significant expenditures of reserve or contingency

funds in connection with intelligence activities without specific ap

proval of the Intelligence Committee and appropriate committees of

G. DIRECTOR OF CENTRAL INTELLIGENCE

1. The select committee recommends that a Director of Central In-

telligence shall be created, separate, from any of the operating or ana-

lytic intelligence agencies for the purpose of coordinating and over-

seeing the entire foreign intelligence community with a view to elimi-

duplication in collection and promoting competition in analysis.

nate DCI shall be nominated by the President with the advice and

consent of the Senate. This office shall have the follnwing powers and

duties:

(a) The DCI shall be the chief foreign intelligence officer of

the United States, and shall be responsible for the supervision and

control of all agencies of the United States engaged in foreign

intelligence.

ColliThe DCI shall be a Member of the National Security

(0) the DCT may not hold a position or title with respect to

any other agencies of Government.

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## Page 80

2

jurisdiction for budget authorization for all intelligence activities and

exclusive jurisdiction for all covert action operations. All remaining

oversight functions may be concurrent with other committees of the

House.

B. RELEASE OF INFORMATION

1. The select committee recommends that rule XI.2 (e) (2) of the

House Rules is amended to read as follows:

"Each committee shall keep a complete record of all committee action

which shall include a copy of all reports, statements, and testimony

of witnesses whether received in open or in executive session."

2. The committee shall have the right to release any information or

documents in its possession or control by a vote of a majority of the

members of the committee under such terms and conditions as the

committee shall deem advisable. The committee, in making the deci-

sion whether or not to release such information, shall have the right,

but not the duty, to consult with other agencies of the Government

within-the intelligence community or executive branch with regard

decision relating to the release of such heretofore secret

information.

3. In the event of a negative vote by the committee on the release

of certain classified information, a member of the committee may ap-

prise the other Members of the House that the committee possesses in-

formation which he believes ought to be made public. Other Members

of the House would then be authorized to have access to that infor-

mation, provided they sign an agreement not to divulge the informa-

tion. If these other Members agree that this information ought to be

made public, they will sign a petition attesting to that. Upon obtaining

the signatures of one-fifth of the House,

the House shall convene in

secret session for the purpose of advising the entire membership of the

House of that information. The House may then vote to release the

information to the public.

may be censured or expelled by a two-thirds vote of the House.

C. COVERT ACTION

within 48 hours of initial approval.

Witing, stator of Central Intelligence shall notify the committe

in writing, stating in detail the nature, extent, purpose, risks, likeli-

hood of success, and costs of the operation.

b. The President shall certify in writing to the committee that

such covert action operation is required to protect the national secu-

rity of the United States.

c. The committee shall be provided with duplicate originals of

the written recommendations of each member of the 40 committee or

Its successor.

NWL68486 Docld:32989711 Page 80

27

Intelligence; Provided that they

in accordance with the DOl's statu-

ory duty to protect sources and methods, could withhold the names

of agents, sources and methods of intelligence from such committee.

[K] I. NEW FOREIGN OPERATIONS SUBCONMITTEE OF NSC

select committee recommends that the National Security

Act of 1947 be amended to provide for the establishment of a perma-

nent foreign Uperations Subcommittee of the National Security Coun-

cil. The subcommittee's jurisdiction, function and composition shall be

as follows:

[a. The Subcommittee shall have jurisdiction over all authorized

activities of U.s. foreign intelligence agencies except those solely re-

lated to the gathering of intelligence.]

b. The subcommittee shall advise the President on all proposed

covert or clandestine [activities] operations and on hazardous collect-

c. Each member of the subcommittee shall be required [by law] to

submit his individual assessments of each proposal to the President in

writing. The assessment should cover such matters a the likelihood of

success, the benefits of success, the damage resulting from failure or

exposure, the risks against the potential benefits and alternate ways of

Assistant to the President for National Security Affairs;

Director of Central Intelligence;

Secretary of State;

Secretary of Defense

Deputy Director for Intelligence of OlA;

Chairman of the Joint Chiefs of Staff;

"The ambassador (s), if there is one, and

The assistant secretaries of state for the Infected countries an

[r] J. DEFENSE INTELLIGENCE AGENCI

.. The select committee recommends that the Defense Intelligen

gency be abolished and that its functions be transferred to Ttl

Assistant Shoretary of Dofense for Intelligence and the CTA.] J-B of

[or.] I. DETATICES

[N.] I. ASSISTANT FOR NATIONAL SECURITY ATTAIRS

dent To let col sette ye minds probie A from to the Presi

cabinet-level position.

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28

[o.] M. RESTRICTIONS ON POLICE TRAINING AND RELATIONSHIPS

1. The select committee recommends that no agency of the United

States engaged principally in foreign or military intelligence, directly

or indirectly engage in the training or the supplying of domestic police

agencies of the United States, and that contacts between police agen-

cies of the United States and U.S. foreion or military intelligence

agencies be limited to those circumstances which shall be required on

of such police agencies.

[P.] N. MEDIA, [RELIGION, AND EDUCATION]

1. The select committee recommends that U.S. intelligence agencies

not covertly provide money or other valuable consideration Ito persons

associated with regious or educational institutions, orl to employees

or representatives of any journal or electronic media with general cir

culation in the United States or use such institutions or individuals for

purposes of cover. The foregoing prohibitions are intended to apply

to American citizens and institutions.

2. The select committee further recommends that U.S. intelligence

gencies not covertly publish books or articles or plant Lor suppress

tories in any journals or electronic media with general circulation i

the United States.

3. In the event that an employee of an intelligence agency publishes

a book or article he shall be identified in the publication as an em-

ployee of such agency.

[Q. RESTRICTIONS ON MILITARY INTELLIGENCE]

[1. The Select Committee recommends that the intellgence compo-

ents of the Armed Services of the United States be prohibited fron

engaging in covert action within the United States. It is further rec

ommended that clandestine activities against non-military United

States citizens abroad be proscribed.]

[R.] O. OLASSIFICATION

1. The select committee recommends that the classification of in-

formation be the subject of the enactment of specific legislation: and

further, as an adjunct to such legislation there by provided a method

of regular declassification.

[s.] P. INSPECTOR GENERAL FOR INTELLIGENCE

1. The select committee recommends the establishment of an inde-

pendent Office of the Inspector General for Intelligence, who

have full authority to investigate any possible or potential miscon-

duct on the part of the various intelligence agencies or the personnel

therein. The IGI shall be appointed by the President, with the ap-

proval of the Senate, for a term of 10 years and shall not be permitted

• to succeed himself. The IGI shall have full access on demand to all

records and personnel of the intelligence agencies for the purpose of

pursuing his investigations. He shall make an annual report to the

Congress of his activities and make such additional reports to the

NW 68486 Docld:32989711 Page 81

LETTER OF TRANSMITTAL

SELECT COMMITTEE ON INTELLIGENCE,

V.S. House of Representatwues

Vashington, D.C., February 11, 1976

Hon. TeD HeNSHAW,

Clerk of the House.

H-105 The Capitol, Washington, D.C.

EAR MR. HENSHAW: Pursuant to Flouse Resolution 982, enclose

erewith please find the recommendations of the House Select Com

Hon. James Stanton,

Please file same.

Very truly yours,

OTIs G. PIsE, Chairman.

COMMITTEE RECOMMENDATIONS

A. A HOUSE COMMITTEE ON INTELLIGENCE

1. The select committee recommends that there be formed a standing

Committee on Intelligence of the House of Representatives.

a. The committee membership should reflect a broad representation.

of political and philosophical views.

b. The committee should consist of not more than 13 or less than nine

members, designated by the Speaker in consultation with the minority

leader, representing approximately the same political ratio as the

House of Representatives.

c. No member of the committee may serve more than 3 consecutive

terms on the committee, and no member of the staff may serve more

than 6 years.

lease, without authorization of the committee, materials or informa-

tion obtained by the committee shall be immediately terminated from

employment and shall be fully subject to criminal and civil action,

notwithstanding legislative immunity

•e. The committee shall be vested with subpoena power and shall have

the right to enforce by a proceeding for civil contempt its subpoenas

in the U.S. Distriet Court for the District of Columbia or any other

court of competent jurisdiction, without authorization from the House,

provided the committee has so designated by resolution. The commit-

tee staft shall be given statutory standing to represent the committee

in any proceeding arising from the issuance of a subpoena.

f. The committee's jurisdiction shall include all legislative and over-

sight functions relating to all U.s. agencies and.departments engaged

in foreion or domestic intelligence. The committee shall have exclusive

(1)

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## Page 82

SELECT COMMITTEE ON, INTELLIGENOE

OTUS G. PIKU, New Xork, Charman

FORE ANTON, Coeticut

ROBERI ACCLORY, Minois

DAVID C. TROEN, Louisiana

JANIES P. (JIM) JOHNSON, Colorado

MURPHY, Illinois

ROBERT TV. KASTEN, Jr., Wisconsin

LES ASPIN, Wisconsin

DALD MILFORD, Texas

PHILIP F. FAYES, Indiana

TVELLIAM LIDENIAN, Florida

(II)

NW 68486 Docld:32989711 Page 82-

29

intelligence committees or other appropriate oversight committees as

he may choose or the committees may direct.

[T. DOMESTIC]

[1. The Select Committee recommends that judicial warrant must

on probable cause, before an informant or any

other agent of

the FBI may infiltrate any domestic group or association, when in-

estigation of such group or association or its members 1s based solel

on title 18 U.S.C. § 2383, 2384, 2385

[2. The select committee recommends that the Director of the FBI

have a term of office no longer than 2 presidential terms.

[3. The select committee recommends that the Internal Security

Branch of the Intelligence Division be abolished and that the Counter

Intelligence Branch be reorganized to constitute a full division namec

the Counter-Intelligence Division; that the mission of this division be

limited to investigating and countering the efforts of foreign directed

groups and individuals against the United States.

[4. The select committee recommends the transter of all investiga-

tions of alleged criminal activity by domestic groups or individual

members thereof to the General Investigative Division.

I5. The select committee recommends that regulations be promul-

gated that tie the investigation of activities of terrorist groups closely

o specific violations of criminal law within the investigative juris

diction of the FBI and that charge the Department of Justice with

determining when a domestic political action group may be appropri-

ately targeted for investigation of terrorist activities.]

CONCLUSION

As these recommendations indicate, my service on the select commit-

tee has convinced me that reforms are necessary to improve the. orga-

capability is to the future security of the American people. Intelli-

ence officials can and must operate in a manner consistent with the

• individual rights and liberties guaranteed by the Constitution. These

protections must be guaranteed, but so must the right of the American

people to live in security and peace. It is both possible and essentia

for the intelligence agencies to perform their responsibilities effec

ignored, Implementing the recommendations I have proposed will

contribute significantly to ensuring that there will be no need for

another such committee to be established in the future. Both Congress

and the American people must recognize the need to complete the task

which we have only begun.

ROBERT W. KASTEN, Jr.

---

## Page 83

91th Congress, 2d Session

Union Calendar No. 421

-

House Report No. 91-833

I

RECOMMENDATIONS OF THE FINAL REPORT

oF THE

HOUSE SELECT COMMITTEE

ON INTELLIGENCE

BY TED

HOUSE SELECT COMMITTEE

ON INTELLIGENCE

NINETY-FOURTH CONGRESS

SECOND. SESSION

PURSUANT TO

H. Res. 591

A RESOLUTION ESTABLISHING A SELECT COMMITTEE ON

• INTELLIGENCI TO CONDUCI AN INQUIRE INTO THE ORGA-

NIZATION, OPERATIONS, AND OVURSIGHT OF THE INTELLI-

GENCE COMMUNITY OF THE UNITED STATES GOVERNMENT

File

7216404

FEBRUARY 11, 1976.- Committed to the Committee of the Whole House

on the State of the Union and ordered to be printed

57-006

U.S. GOVERNMENI PRINTING OFFICE

WASHINGTON : 1976

NW 68486 Docld:32989711 Page 83

---

## Page 84

The Attorney General

Director, FBI

S. HOUSE SELECT COMMITTEE

ON INTELLIGENCE ACTIVITIES (HSC).

1 - Mr. J.

B. Adams

2 - Mr. J. A. Mintz

(1 - Mr. P. V. Daly)

March 10, 1976

1 - MI.

J. J. McDermott

• - Mr.

T.

W.

Leavitt

1 - Mr.

Phillips

And band

S.

F.

- Mr.

T.

J. McNiff

- MI.

S. J.

Miller

1 - Mr.

A.

J. Duffin

Enclosed herewith is a Xerox copy of my letter to

Captain John Matheny, Office of the Assistant to the President

presently unaccounted for.

Pursuant to an agreement between Central Intelligence

Agency (CIA) and the HSC, documents provided to the HSC by

Executive Branch departments and agencies are presently stored

under seal at CIA Headquarters pending a decision as to their

final disposition.

Inventoried and segregated fBl documents

i we lad there tee the were see an arred

CIA.

As a result of this inventory, it was determined that

certain FBI documents were unaccounted for and apparently

missing.

2-6464-317

By memorandum February 27, 1976, CIA requested

interested departments and agencies to advise Captain John

Matheny, Office of the Assistant to the President for National

Security Affairs, whether any documents are missing.

Captain

Matheny is to prepare and maintain a consolidated list of

Executive Branch documents which are reported as missing

should same be needed for a future investigation.

NEC-38

EX-115

MAR 18 1976

SEE NOTE PAGE TWO

ri

Assoc. Dir.

Dop. AD Adm. AJD: mjg/

Dep. AD Inv. - (13)

Asst. Dir.:

Admin.

Comp. Syst. -

Ext. Affairs -

Files & Com. -

Gen. Inv. _

Ident. -

Inspection.

Intell. -

Laboratory =

Legal Coun. _

Plan. & Eval. -

Spec. Inv. -

Training

Telephone Rm. -

8'4 MAN 2 3 14/ ROOM

NW 68486 Docld:32989711 Page 84

(LM

TO BE HAND-DELIVERED BY THE OFFICE OF CONGRESSIONAL AFFAIRS)

TELETYPE UNIT L

GPO: 1975 0 - 594-120

---

## Page 85

a 32 ide

In Cons 3-32-76

Brit Cored 15/738 rand.

RECEIVED

OFFICE OF

8 52 AM 976

RECEIVED-DIRECTOR

AFFAIRS

CONGRESSIONALIT IDENCE DITORRES-ODE CEREVER

MAR 0 12 34 PR 1976

?..

MAR 10 11 07 AM 1976

i.-.

=

NW 68486 Docld:32989711 Page 85

---

## Page 86

The Attorney General

The enclosed Xerox copy of the FBI letter to

Captain latheny sets forth descriptively the FBI documents

that are unaccounted

I for.

Enclosure

62-116464

1 - The Deputy Attorney General (Enclosure)

Attention:

Hichael E. Shaheen, Jx.

Special Counsel for

Intelligence Coordination

NOTE:

See memorandum S. E. Phillips to MI. I. W. Leavitt

dated 3/8/76, prepared by AJD: 1hb.

- 2 -

NW 68486 Docld:32989711 Page 86

---

## Page 87

FROM

SUBJECT:

• SITIONAL FORRENO. 10,

5010-106

MÃE 1962 EDITION

GSA GEN. REG, NO. 27

1

Mr. J.

Adams

UNITED, STATES GOVERNMENT

2

Mr. J.

A.

Mintz

Memorandum

(1 - Mr.

P. V.'Daly)

1 - Mr. J. J. McDermott

1 - Mr. T. W. Leavitt

Mr. T.

W. Leavitt

DATE: 3/3/76

1 - Mr.

S. F. Phillips

S.

Phillip

1

- Mr.

T.

J. McNiff

1

- MI.

S.

J. Miller

HOUS TUDY 75

1 - MI.

A. J. Duffin

E:

DISPOS IIION OF HOUSE SELECI

COMMITTEE (HSC) RECORDS

Assoc. Dir. -

Dep. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Admin.

Comp. Syst.

Ext. Affairs

Files & Com..

Gen. Inv.

Ident.

aspection

Laboratory

Plan. & Eval. -

Spec. Inv. -

Training

Director Sec'y -

6.

5.'

SYNOPS IS :

To set forth details regarding disposition of

HSC records. HSC records, including documents furnished

by the FBI,

have been placed under seal with CIA pending

decision as to final disposition. FBI documents were

sealed In seven cartons on 2713, 2/17 and 2/20/76, and

immediately transported to CIA.

In conducting inventory.

of FBI documents at that time, it was determined certain

Items were unaccounted for and apparently missing. These

items involve documents furnished concerning tax deductions

made Fron informant payments during calendar years 1970-73

generic lists, no informants identified) and certain

documents involving the various criteria which have been

utilized to include an individual on ADEX, as well as

Information regarding ADEX and its precedent, the Security

Index.

CIA has asked executive branch departments and

agencies to advise the Office of the Assistant to the

President for National Security Affairs whether any of

ліноскоійниймсклінихій.

their documents are missing.

Enclosures - Sent 3-12-76

62-116464

AJD: 1hblhb

(10)

ENCLOSÚRE,

EX 11562-116464-316

CONTINUED - OVER

REC-38

+2-112464147

Z MAR 18 1976

84 MAR 2 3 1976

NW 68486 Docld:32989711 Page 87

---

## Page 88

Memorandum to Mr. I. W. Leavitt

Re: Houstudy 75

Disposition of House Select

Committee (HSC) Records

62-116464

RECOMMENDATIONS:

(1) That attached letter advising John Matheny,

Office of the Assistant to the President for National

Security Affairs, that certain FBI documents are unaccounted

for,

be sent.

This letter identifies the missing documents.

(2) That attached letter to the Attorney General,

enclosing a copy of the letter to Captain Matheny, be sent,

pursuant to telephonic instructions of Mr. Steven Blackhurst,

Assistant Special Counsel for Intelligence Coordination,

Department of Justice.

CONTINUED - OVER

pur

- la -

NW 68486 Docld:32989711 Page 88

---

## Page 89

.

'..

Memorandum to Mr. T. W. Leavitt

Re: Houstudy 75

Disposition of House Select

Committee (HSC) Records

62-116464

DETAILS:

On 2/11/76, Captain John Matheny, supra,

telephonically advised Senstudy 75 Project that on that

date a hasty agreement had been reached between the

executive branch and HSC concerning the interim disposition

of the HSC's documents.

Captain Matheny stated the agreement

was reached in negotiations between CIA and Representative

Otis G. Pike, Chairman of the HSC, and HSC Staff. Captain

Matheny stated the details of this agreement, other than

the fact documents would be going to CIA under seal, were

as yet unclear; however, he would immediately advise when

same were : known.

On the p.m. of 2/12/76, Captain Matheny tele-

phonically advised Senstudy 75 Project details of the

agreement were as follows:

(1) All documents furnished to the HSC by

executive branch departments or agencies on an "on loan"

basis would be returned to the originating department of

agency.

(2) All items or materials received from the

National

Security Council would be returned thereto.

(3) All transcripts of hearings, public and

executive, and interviews

conducted by the HSC and all

materials received unsolicited or otherwise generated by

the HSC would be placed in safekeeping with the National

Archives.

CONTINUED - OVER

- 2 -

NW 68486 Docld:32989711 Page 89

---

## Page 90

:.

'..

Memorandum to Mr. I. W. Leavitt

Re:

Houstudy 75

Disposition of House Select

Committee (HSC) Records

62-116464

(4) All other material received from executive

branch departments or agencies would be placed for safekeeping

with CIA in sealed cartons which are not to be disturbed,

opened or their contents examined except on further author-

ization from the House of Representatives or the Speaker

of the House.

Captain Matheny stated it had been decided that

the material going to CIA under seal would be first segregated

as to originating department or agency and thereafter placed

in separate cartons, sealed and the originator identified

thereon.

He further stated that Mr. Antonin Scalia,

Assistant Attorney General, Office of Legal Counsel, Department

of Justice, had agreed to the above arrangements on behalf

of the Department of Justice and its agencies.

He advised that Bureau representatives should be

present beginning on 2/13/76 in order to oversee the

segregation of documents and to account for and seal material

provided by the Bureau.

On 2/13/76, and again on 2/17 and 2/20/76, Special

Agents Andrew J. Duffin and Sammy J. Miller of the Senstudy 75

Project were physically present at the HSC offices, along

with representatives of several other departments

and

agencies. It is noted the HSC's resolution had expired as

of 1/31/76 and present on behalf of the HSC during this

particular period were only Ms. Jacqueline Hess, HSC Security

Officer, several unidentified HSC Staff Members involved in

extraneous and personal matters not connected with this

project, and a uniformed guard.

CONTINUED - OVER

-3-

NW 68486 Docld:32989711 Page 90

---

## Page 91

Memorandum to Mr. T. W. Leavitt

Re: Houstudy 75

Disposition of House

Select Committee (HSC) Records

62-116464

It was stated by Ms. Hess that there was some

urgency involved with the segregation and transportation

of the HSC documents to CIA as the physical protection

being provided to the HSC premises by the security guard

would

cease as of 2/20/76.

It should be noted it was immediately obvious

that chaotic conditions had existed at the HSC, particularly

evident in the complete disarray of their records and

materials. All materials, irrespective of originating

department or agency, were

haphazardly commingled and

the elementary records management system attempted by

the HSC, by Ms. Hess' admission, had failed. She stated

HSC Staff Members, in their haste to depart, had returned

documents which had been in their personal possession

en masse, including numerous reproductive copies of various

and sundry documents, as well as personal notes, memoranda

and memorabilia.

At the outset, it was determined the material

furnished by the FBI was accounted for by the HSC upon

receipt only by filing the FBI transmittal IHM adjacent

to a copy of the pertinent HSC request letter in a loose-leaf

binder.

(This binder is sealed in carton at CIA marked

"HSC Transmittal Books.") Ms. Hess stated that this was

not done in every instance and, in fact, particularly if

the FBI IHM contained pertinent information, it more often

than not was furnished directly to the HSC Staff Member

who had initiated the request.

In cases such as this,

the LHM may or may not have ultimately been incorporated

in her notebook.

CONTINUED - OVER

- 4 -

NW 68486 Docld:32989711 Page 91

---

## Page 92

Memorandum to Mr. I. W. Leavitt

Re:

Toustudy 75

Disposition of House Select

Committee (HSC) Records

62-116464

Initially, Ms. Hess had extracted some portions

of the FBI material and had it ready for inventory.

Thereafter, in her search through various filing cabinet

drawers, she would come upon different batches of material

and would make these available. For the most part, these

included not only material originating with the FBI but

from various other departments and agencies. Due to the

enormity of the task, the constraints of time and the

existing working conditions, it was impossible to 1og in

or itemize each and every FBI document on hand. Therefore,

the inventory undertaken was in the form of accounting

for each FBI response made to HSC requests by locating

each particular responsive IHM and matching it with its

enclosures, if any. In the absence of the LIM, documents,

which were

obviously enclosures, were generically described

and at a later date, through Senstudy 75 Project records

available at FBIHQ, identified with specific HSC requests

and FBI responses, and thereby accounted for.

FBI material inventoried and sealed amounted to

approximately 6 ½ cardboard cartons which were sealed with

Scotch-brand filament tape and identified on the ends

with the markings "HSC/FBI" followed by an arabic number

for the carton. It is noted that box number 7, in addition

to FBI materials, also contains materials from

State, DEA,

Civil Service, OMB, Treasury/ IRS and IC. This was done

to limit the number of boxes involved as none of the above

had sufficient material to fill an additional box.

As FBI material was accounted for and sealed,

a Xerox copy of the generic inventory maintained was

provided to Ms. Hess as well as to Ms. Libby Moran, CIA

Review Staff Representative, who was overseeing this entire

CONTINUED - OVER

-5 -

NW 68486 Docld:32989711 Page 92

---

## Page 93

:. ..

Memorandum to Mr. I. W. Leavitt

Re:

Houstudy 75

Disposition of House Select

Committee (HSC) Records

62-116464

matter for CIA. At a subsequent time at FBIHQ, this

generic inventory was reconciled with Senstudy 75 Project

Unit records and an additional inventory was compiled

setting forth in date order HSC requests, noting date of

FBI response, as well as the box number location of the

material involved. Upon completion of this detailed

reconciliation, it was determined that 13 original FBI

LHMs which were

sent to the HSC in response to requests,

Il of which had no enclosures, are unaccounted for and,

at this point, they are presumed, by Ms. Hess, destroyed.

(The enclosures transmitted with the two- were accounted

for.) This presumption is made because Ms. Hess reiterated

many times that LiMs which contained information of

interest to the HSC were often not logged by her and

were forwarded directly to interested HSC Staff Members.

She noted that, during the waning days of the Committee,

much material the Staff Members considered expendable was

ering the menar

destroyed by shredding. Specifically, concerning FBI LHMS,

she stated it was the HSC's position

transmitted enclosures, were nothing more than

• letters

of transmittal requiring no accountability. If they

contained information without enclosures, they were

considered to be Committee, not FBI, property and could

be disposed of at the Committee's pleasure.

In addition, it was determined that two IHMs,

both with enclosures, were unaccounted for and their

disposition is unknown.

By way of description, these

documents concern: (1) FBI 9/14/75 response to an 8/19/75

request which transmitted to the HSC four generic lists

regarding tax reports filed by the FBI with the IRS

setting forth deductions made from informant payments

covering calendar years 1970, 1971, 1972 and 1973. These

CONTINUED - OVER

- 6 -

NW 68486 Docld:32989711 Page 93

---

## Page 94

Memorandum to Mr. T. W. Leavitt

Re ;

Houstudy 75

Disposition of House Select

Committee (HSC) Records

62-116464

lists do not identify informants and only set forth amount

of taxes withheld; and (2) FBI 11/11//5 response to a

9/30/75 request which transmitted numerous documents setting

forth the various criteria which have been utilized to

include an individual's name on the ADEX, a chart portraying

a statistical breakdown of the ADEX, authority for

maintaining the ADEX and documents pertaining to its

predecessor, the Security Index.

With the above exceptions, all other FBI responses

were accounted for, it being emphasized again, that not

each and every document was logged. Further,

there is no

way of accounting for the multiple copies of documents

reproduced by the HSC Staff from those made available by

the Bureau, other than to the extent that extra copies

located during the above inventory were personally shredded

by Bureau personnel.

The original generic inventory, as well as the

detailed reconciliation, is being maintained with the

Senstudy 75 Project files.

There is attached a 2/27/76 CIA memorandum for

executive branch departments and agencies in which CIA,

as custodian of the documents, asks interested parties to

advise Captain John Matheny, Office of the Assistant to

the President for National Security Affairs, whether any

documents are missing. Captain Matheny will prepare and

maintain a consolidated list of executive branch documents

which are reported as missing should same be needed for

a future investigation.

This CIA memorandum encloses a

letter from Director, CIA, to Mr. Pike acknowledging and

accepting responsibility for safekeeping of the classified

CONTINUED - OVER

-7-

NW 68486 Docld:32989711 Page 94

---

## Page 95

Memorandum to Mr. T. W. Leavitt

Re :

Houstudy 75

Disposition of House Select

Committee (HSC) Records

62-116464

documents at CIA, as well as the disposition of other

documents, as set forth in the synopsis of this memorandum.

This letter notes that 46 cartons of material, 6 ½ of

which are FBI documents, are being maintained at CIA.

Also attached are letters dated 2/20/76 from Mr. Pike to

Director, CIA, and Archivist of the United States

concerning the agreement reached between the HSC and CIA.

There is also attached for approval a letter

to Captain Matheny in accordance with CIA's request, supra.

This letter identifies the missing Bureau documents in

detail, and a Xerox copy of each missing LHM is attached

to its

yellow. It is noted, the IHMs which are presumed

destroyed are included in the letter as missing Bureau

documents because their true disposition is, in fact,

unknown.

or

-

NW 68486 Docld:32989711 Page 95

---

## Page 96

CEN

RAL INTELLIGENCE AGENCY

WASHINGTON,D.C. 20505

27 February 1976

MEMORANDUM FOR: Execütive Branch Departments and Agencies

SUBJECT:

Classified Documents Returned from the

House Select Committee on Intelligence

Chairman Pike has designated the CIA as the interim custodian

of the Executive Branch materials heretofore held by the House

Select Committee pending final determination by the House of

Representatives regarding these materials. Attached for your

information and possible future reference is a copy of a letter

dated February 25, 1976, from the Director of Central Intelligence

to Representative Otis Pike, Chairman of the House Select

Committee on Intelligence, regarding the disposition and safe-

keeping of classified materials furnished to or generated by

the Select Committee.

Also attached for your information are

copies of Chairman Pike's letters of February 20, 1976, to

Director Bush and to the Archivist of the United

States.

Those addressees whose classified materials are now stored.

at CIA Headquarters should advise Captain John Matheny, Office

of the Assistant to the President for National Security Affairs,

whether any of their documents are missing.

Captain Matheny will

prepare and maintain a consolidated list of Executive Branch

documents which are listed as missing should this be needed

for a future investigation.

Seywon

Seymoar R. Boltei

Assistant to the Director

Review Staff

Attachments: As Stated

Distribution:

William Hyland/NSC

John Marsh/White House

Thomas Latimer/ DOD

Antonin Scalia/DOJ

Peter Bensinger/ DEA

William Cregar/FBI

Gerald Nensel/Treasury

•Donald Alexander/IRS

Harold Saunders/State-INR

Donald Ogilvie/OMB

Robert Hampton/CSC

Benjamin Bailar/U.S. Postal Service

James Rhoads/National Archives

and Records

AMERICAN

62-116464-316

NW 68486 Docld;32989711 Page 96

62

ENCLOSURE

1/6-41-1 1441

THINNE

1776-1976

---

## Page 97

CENTRAL INTELLIGENCE AGENCY

WASHINGTON, D.C. 20505

25 February. 1976

The Honorable Otis Pike, Chairman

Select Cormittee on Intelligence

House of Representatives

Washington, D. C.. 20515

Dear Chairman Pike:

I hereby acknowledge and accept the terns set forth in your

letter of February 20 for safekeeping of the three categories of

sensitive classified documents furnished to or generated by the

House Select Committee on Intelligence.

loan'' material which was loaned to the Select Conmittee by the

Executive branch has been received by the CIA and such material

has been retured to the originating departents and agencies.

With regard to the second category of materials, the trans-

cripts of testimony taken from surrent and former Federal officials

in executive sessions of the Select Committee, it is my understanding

that these documents will be placed in the National Archives building

for safekeeping in the custody of the Archivist of the United States,

and that no one is to be given access to these materials pending

further instructions from the House of Representatives or Speaker of

the House. As you indicated in your letter of February 20 to the

Archivist, highly sensitive classified information is contained in

these transcripts, and they should be treated accordingly by the

Archivist. I am also concerned about any future plans for the dis-

position ot these transcripts.

This material includes information

involving sensitive sources and methods which 1 an charged by law

the Speaker of the House and request that 1 be involved in any

decision regarding the tuture disposition of this material.

Finally, with respect to the third category of materials re-

ceived by the CIA from the Select Committee for storage at CIA

Headquarters, we have attempted to reconcile our records of documents

62-116464-316

SUBLOGUEZ

tiz

" NW 68486-Docld:32989711-Page-97

---

## Page 98

delivered to the Select Cormittee with the inventory of documents

received for storage at ClA Headquarters, and we find that a number

of CIA documents are missing.

The materials transferred to CIA

Headquarters For storage were initially inventoried and sealed in

cartons by Executive branch representatives on the premises of the

Select Conmittee in the presence.of Committee staff members during

the period of February 18-20.

Because a number of documents were

unaccounted for, it was agreed with your staff representative that

certain cartons should be inventoried again to determine whether

the missing documents might be in those cartons.

Thus, a thorough

second inventory of certain sealed cartons was conducted at CIA on

February 21 with your concurrence and in the presence of Ms. Jacqueline

Hess of the Select Committee staff. While a few of the missing

documents were found in the second inventory, a number of documents

are still nissing.

As soon as a complete list of the missing materials is pre-

pared, my representatives will seek an early meeting with you to

determine inat measures can be taken to account for or locate the

missing documents. Other Federal agencies are also checking their

records and inventories to determine whether any of their documents.

are missing.

The foregoing pertains only to the missing materials as we

have no way of accounting for the multiple copies of classified

documents reproduced by the Select Committee staff from originals

made available by the CIA and other Executive departments and

agencies. To the extent that the multiple copies have not been

'included

in the materials to be stored at CIA or the National

Archives, I trust that those documents have been destroyed in ac-

cordance with procedures appropriate for classified materials.

The following is a summary of the third category of material:

now held in sealed cartons at CIA Headquarters pending further in-

structions from the House of Representatives or the Speaker of the

House:

Rockefeller Commission Files

CIA Files

13 Cartons

• 11 Cartons

Dept. of Defense Files

(1 carton of DoD files labeled

"pending resolution of on loan

material'')

7 Cartons

- 2 -

NW 68486 Docld:32989711 Page 98-

---

## Page 99

IC Files

(Carton 2 has partial materials

from: Treasury, Civil Service;

OMB, and Post Office)

DEA Files

Dept. of State Files

Dept. of Justice/Atty. General:

(FBI Files

(Carton 7 has partial files

from State, DEA, Civil Service,:

CYB, Treasury/IRS and IC)

HSC Transmittal Books

*3 Cartons

2 Cartons

• I Carton

I Carton

7 Cartons

1 Carton

TOTAL:

46 Cartons

Unless advised by you to the contrary, we will assume that this

breakdown of cartons accords with your records and that the Speaker

of the House has been so advised.

The contents of each carton have

been individually inventoried and Ms. Hess has receipted for the

contents of each carton. Copies of these inventories have been

supplied to Ms. Hess for transmittal to the office of the Speaker of

the House.

I wish to express my personal appreciation for your cooperation

in making possible, in the short time available, the transfer of the

materials to be held for safekeeping at the CIA Headquarters.

Sincerely,

Bik

George Bush

Director

CC:

Honorable Carl Albert,

Speaker of the House

of Representatives

3

• NW 68486_Docld:32989711 Page 99

---

## Page 100

OTIS G. MIKE, M. Y., CHAIRMAN

WENT N. GIAIMO, CONN.

RODE9T MCCLORY, ILL

HES V. STANTON, OHIO

DAVID C. TREEN, LA.

NALD V. DELLUMS, CALIE.

JAMES P. JOHNSON, COLO.

SAGAN F. MURPHY, ILL.

ROBERT W. KASTEN, JR., WIS.

3 ASPIN, 6615.

LE MILFORO, TEX.

Selzet Committee on Intzlligence

ILIPH.FIAYES, INO.

LEIRS LEHMAN, FLA.

C.5. House of Hepresentatines

Washington, Đ.C.. 20515

February 20, 1976

A. STAPLE FIELS, STATE DIMEGTON

AARON B. DONNER, CCUMSEL

TELEPHONK: (202) 225-9751

The Honorable George Bush

Director

Central Intelligence Agency

Washington, D. C. 20505

Dear Mr. Bush:

Pursuant to your request and the understanding worked out between

your staff and the staff of the House Select Committee on Intelligence,

all documents furnished to the Committee on an "on loan" basis have

heretofore been returned to the agencies from which received.

All items or materials received from the National Security Council

have been returned to the National Security Council. All trans-

cripts of hearings, public and executive, interviews conducted. by

members of our staff, and all other materials received unsolicited

or otherwise generated by the Committee stäff will be placed for

safekeeping in the National Archives building.

The materials which have been placed

for safekeeping in the possession

of the Central Intelligence Agency (those materials not received on

an "on loan" basis) are placed in your custody with the explicit

understanding that they will not be disturbed, that the cartons

containing these materials will not be opened nor their contents

examined except on 'further authorization from the House of Repre-

sentatives or the Speaker of the House.

I believe that the return of all documents or the placing of all

materials in safekeeping has been accomplished as expeditiously as

possible and I thank you and your staff for your cooperation in the

matter.

Yours very truly,

Chi t Pike

OTIS G. PIKE

OGP:0

62

616464-316

10316754-141

NW 68486 Docld:32989711 Page 100

---

## Page 101

3143510.13n0.10н, coia.

N29500-10. 40552:0,17, 8013.

ATTORETTO 5005314-0730

UNID, ENTiC, COU795

ssetarass: (503) 255-9338

=x.

1:2.

* Fata

Salest Committas or Intelligence

U.S. House Di Repoesantatines

Casijingion, 2.C:

20515

February 20, 1975

'HE- James B= Raozás

Archivist of: tre United Statas t

National. Archives and Records Service

Seventh Straet aed PenasjIvania Avenue

Washington, D. C-

20408

Dear Dit: Rhca¿s

23

• Pursuant to House Resolution 591, as amended, and in

furtherance of an agreement between the House Select

Connittee on Intelligence, there is transmitted herewith

certain material both classified and unclassified, which

is the properay of the former House Select Committee on•

Intelligence and is to be kept in your custody in a safe

place pending farther instructions from. the House of

• Representatives of the Speaker of the House

Oi Representativas-

Some of the naterial enclosed herewith is highly sensitive

and I would suggest that all should be given naximun

security possible.. No one should be permitted access to

this material until directed by a further action of the

House of Representatives of

the Speaker of the House of

Representatives.

I appreciate your cooperation in this natter.

Yours very truly,

EteR. Pite

OTIS G. PIKE

OGP =0

62-

116464-316

NW 68486 Docld:32989711 Page 101

---

## Page 102

Vir. T. W. Leavitt

F.

J.

Cassidy

DISCLOSURE AND PUBLICATION OF

ALLEGEDLY CLASSIFIED INFORMA-

TION BY "THE VILLACE VOICE,"' ON

OR ABOUT FEBRUARY 11, 1976

1 - wir. J.

B.

dams

1 - ivir. J. A.

Mintz

(Attn'

P. V. Daly,

] - Mr. T. W. Leavitt

3/2/76

1 - Mr. S. S. Mignosa

(Attn:

„E. L. McLanahan)

1 - Mr. F. J. Cassidy

1 - Mr. S. F. Phillips

1 - Mr. D. Ryan

This is to set forth our suggested response to a request

by the Criminal Division of the Department for detailed information

relating to classified FBI information disclosed by "The Village Voice"

in its 2/16/76 supplement which incorporated portions of the House

Select Committee on Intelligence Activities (HSC) suppressed report.

By memorandum dated 2/13/76, Assistant Attorney

General hichard I. Thornburg, Criminal Division, made reference

to the publication by ""The Village Voice" of the HSC suppressed

report. Thornburg, in his memorandum, requested this Bureau solicit

other agencies and to furnish information relating to FBI classified

material that was disclosed in 'The Village Voice." Ele indicated

this inquiry was necessary to determine if any action by the Depart-

ment of Justice is necessary.

Memorandum from Vir. Cassidy to Vir. Wannall dated

1/21/76, captioned "Foustudy," advised that appropriate components

of FBIQ had been solicited and only one instance was determined

where classified material appeared in the Draft Final Report of the

HSC. This occurred in the identification of three of our foreign

counterintelligence programs by title, it being noted the names of

these programs had been classified "Secret" by the Attorney General.

EnClOSure

CONTINUED - OVER

1 - 02-110004 Cointelpro

62- 116464 (Houstudy)

SECRET MATERIAL ATTACHED

DF:1fj

(10)

ENCLOSURA

NOT RECORE

46

1. 85

* 1976

N 68181ABo2iã:32886711 Page 102

---

## Page 103

1

Memorandum to Vir. T. W. Leavitt

Re: Disclosure and Publication of Allegedly

Classified Information by 'The Village

Voice,"' on or about February 11, 1976

Information regarding the appearance of this classified material

relating to the counterintelligence programs was furnished to

Vir. Mitch Rogovin at CIA Headquarters on 1/20/76, it being noted

he was coordinating the intelligence community's response to this

report.

Attached is a copy of a write-up responding to the 11 areas

of inquiry mentioned in vir. Thornburg's memorandum, as pertains to

the one instance of classified information which appeared in the HSC

report which was disclosed by "The Village Voice."

ACTION:

It approved, this memorandum and its attachment should

be referred to the CI-3 Section of the Intelligence Division so the infor-

mation in the attachment may be referred, with information furnished

by other intelligence agencies, to the Criminal Division of the

Department in response to the Department's request for this

preliminary inquiry.

- 2-

NW 68486 Docld:32989711 Page 103

---

## Page 104

1 - Mr.

J.

Adams

1 - Vir

(Attn"

J.

A.

Mintz

Nr. P. V. Daly)

ESCrIT 1 - N. T. W.

weavitt

1 - Mr.

S. Mignosa

(Attn: Mr. R. I. McLanahan)

Cassidy

March 2, 1970

1 - Mr. D. Ryan

DISCLOSURL AND PUBLICATION OF ALLEGEDLY

CLASSILIED INFOEKATION BY "THE VILLAGE

VOICE, " ON OR ABOUT FEBRUARY 11, 1070

The following relates to classified information originating

with the f'ederal Bureau of Investigation (r5)) which was disclosed in

a 24-page supplement of "The Village Voice, " a weekly New York City

newspaper, edition dated February It, 1976:

1. The date and identity of the article or articles

disclosing the classtfied information.

The classified information appears on page ul of the 24-

page supplement of "The Village Voice, " edition of February 16,

1070, column 8, lines 2-4.

2. Specific statements in the article which are considered

classified and whether the data was properly classified.

The specific statement in the article which was classified

"Secret" by the Attorney General, Exempt from GDS, Category Number

3, Date of Declassification Indefinite, relates to three foreign counter-

intelligence programs conducted by the r'sI which are described in the

article as. • : "Operation Border Coverage (1061), the Cuban

program (1061) and the Yugoslav program (1960)."

It is understood

that the titles of these three programs were classified "Zecret" by the

Attorney General on or about lay 17, 1975, aiter he consulted with

the White House and/or the Eecretary of State, No information has

been developed indicating the above data was not properly classited.

_.1 - 62-116009 (Cointelpro)

SECRET

_1 - 02-110464 (Roustudy)

DR:1fj

Classified by 5736

(10)

Exe apt froin CDS, Category Number 3

Date of Declassification Indefinite

ENCLOSURE

NW 68486 Docld:32989711 Page 104

---

## Page 105

FECRET

Disclosure and Publication of Allegedly

Classifted Information by "The Village

Voice,"' on or about February 11, 1070

3. Whether the classified data disclosed is accurate.

The identities (titles) of these three foreign counter-

intelligence programs as published are accurate.

4. Whether the data came from a specific document and,

if so, the origin of the document and the name of the individual

responsible for the security of the classified data disclosed.

As indicated in "The Village Voice" article, the existence

of the three classified counterintelligence programs above was

revealed to staff investigators of the House Select Committee on

Intelligence (ESC) at a briefing held at the Intelligence Division of the

FBI on August 22,

1975. At this time the HISC members were advised

the titles of the three foreign counterintelligence programs had been

classified "Secret" by the Attorney General.

Information relating to the three classified counterintel-

ligence programs was initially set forth by the Attorney General in

letters directed to Senator Frank Church, with a copy to Senator John

Tower; Eenator James O. Eastland, with a copy to Senator' Roman I..

Fruska; and to Congressman Don Edwards, with a copy furnished to

Congressman M. Caldwell Butler, all dated May 17, 1975, and all

classified "Secret. " This letter states it is classified "Secret"

"because we have been advised that disclosure of references to the

Mexican, Puerto Rican, Yugoslavian and Cuban operations could

damage our relations in those areas." Subsequently, on May 23,

1975, the Attorney General issued a press release describing five

newly-discovered FBI counterintelligence programs. This release

described "Three foreign intelligence programs classilied, 'Secret, *"'

withoat mentioning the programs by title.

SECRET

- 2 -

NW 68486 Docld:32989711 Page 105

---

## Page 106

SECHEE

Disclosure and Publication of Allegedly

Classified Information by "The Village

Voice," on or about February 11, 1976

5. The extent of official dissemination of the data.

The identities of the three programs have not been pub-

licized to date. Dissemination has been made by the FBlto the

Department of Justice and, to our knowledge, by the Department of

Justice only as noted above. The identities of the three programs

were furnished to Central Intelligence Agency in January, 1976.

6. Whether the data has been the subject of prior official

releases.

As indicated, the identities of these three programs have

not been publicized although they have been referred to in a press

release dated tay 23, 1975, only as "three foreign intelligence

programs."

7. Whether prior clearance for publication or release

of the information was sought from proper authorities.

The FBI received no request for prior clearance for

publication or release of the classified titles of the three programs.

8. Whether the material or portions thereaf or enough

background data has been published officially or in the press to make

an educated speculation on the matter possible.

We have no knowledge of any information published

dificially or appearing in the press which would make an educated

speculation regarding the identity of the three foreign counterintel-

ligence programs possible.

-SECRET

- 3-

NW 68486 Docld:32989711 Page 106

---

## Page 107

Disclosure and Publication of Allegedly

Classified Information by "The Village

Volce," on or about february 11, 1976

9. Whether the data can be declassified for the purpose

of prosecution and, if so, the name of the person competent to testify

concerning the classification.

A decision relating to declassification should be made by

the Attorney General or his designee, possibly if necessary after

consultations with the White House and/or the Departinent of State.

The Attorney General or his designee is competent to testify concern-

ing the classification.

10. Whether declassification had been decided upon prior

to the publication or release of the data.

As indicated above, the information disclosed was origi

nally classified on or about iiay 17, 1975, while "The Village Voice"

publicized the classified information in a supplement to its issue

dated February 16, 1976.

11. What effect the disclosure of the classified data

could have on the national defense.

It is noted the Attorney General, in his classified letters

to members of Congross dated ¿Jay 17, 1975, indicated the informa-

tion was classified "because we have been advised that disclosure af

tho Lexican, Cuban, Yugoslavian and Puerto Fican operations could

damage our relations in those areas. "

SHERET

= 4-

NW 68486 Docld:32989711 Page 107

---

## Page 108

1 - Mx. J. B. Adams

1 - Mr.

J.

A. Mintz

- Mr. W. R. Wannall

1 - Mr. W. 0. Cregar

February 27, 1970

1 - Mr. S. F. Phillips

Tha retokney General

Director, FBI

U.t.

BENNIE SOLSCT COMITICO

CiA IEZALLIGUAGE ACTIVIRISS (SSC)

Lix. Fred ll. lall of Plentation,

Florida, formarly

employed by the frI and subsequently by the Central Intelligenco

Agensy, from which Agency he retired about sis yoors ago, has

node availcolo to this bureau a copy of a lotter ha troto o

clock ville ago to senator fionk Church, Chaimun of the 566.

Vall also sent a copy of his letter to Congressnon Otis G. Pike,

Chairnan of the louse Solect Committee on Intelligence

Activities.

I thougit you would be Interested in lie. Holl'e

observations and en therefore enclosing a copy of his letter.

Laclosura

62-116305

I. * The Deputy ALtorney General (Enclosure)

attention:

fichael E. Shaheen, Jr.

Special Counsel for

Intelllgence Goordination

I - 62-116464-(Houstudy

(Personnel file former SA Fred - Hall

]

SFP:mjg

(11)

NOTE:

S. F. Phillips of the Senstudy

Hall furnished the con Projectletter to supervisor

Phillips and Hall have

been close friends for many years and Hall made the letter available

on a recent visit of Phillips to Florida.

Hall indicated that

Phillips could feel free to show it to anyone who may want to

The letter is very critical of the activities of both

the Senate and House Select Committees.

3 4 MAR 1 1 9/1

IVV 68486 Docld:32989711 Page 10

---

## Page 109

ivellari

M

/

62-116464

NoN 36r02

8. MAR 8 1375m

sonica: + 2589985 falsas

ENCEOSURE

ENCLOSURE,

AGNAT MILIO IN

NW 68486 Docld:32989711 Page 109

---

## Page 110

Hon. Frank Church

U.S.

Senate

Washington, L.C.

Dear Sen. Church:

By way of bockground, I served honorably with both the federal Bureau a Invest-

igation ana the Central

Intellizence kgency for a combined total of over 3

years. I am proud of my service with each agency and I feel that my activities

were quite worthwhile and in the national interest. I am a graduate of George

Washington University Law School and a member of the bar. I am now retired.

As an interested and intellectually curious citizen, I have been reading

accounts in the public press concerning the ectivities of the committee which

you happen to chair and of the House Committee which Rep. Otis Pike happens to

chair, both dealing with the U.S, investigative and intelligence programs.brief-

ly stated, I am totally nauseated by the irresponsible way in which both of you

demand highly sensitive and classified data which seems to be publicized soon

after you get it. It is my opinion and that of many friends thut your committees

are effectively destroying the credibility of these agencies and making impos-

sible their effective performance in the future.

further, let me state that I do not condone irregularities,

or illegalities by either agency in

their normal, routine activities

vities, for certain 'extracurricular" activities to achieve needed ends and I

think that the Congress should quietly recognize such, with reasonable controls.

You should be proud and

complimentary, for instance in my opinion, about the

highly publicized and often misrepresented mail intercept program when you

realize that it wos confiner to mail to and from Russia anu, insofar as

I read, the results were given appropriate safeguards.

I have no objection to having some type of scrutiny and supervision of these

agencies by some well qualified

and impartial panel and I do not object to

appropriate administrative action taken

against offending employees and

officials, if

their rights are protected. What I do strongly object to is the

pathetically inept and horrendously damaging procedures whereby your inquiries

on sensitive matters are regularly reported, sometimes incompletely and for

....

apparent political reasons. It just seems to me that someone connected with

committees is afflicted with political "diarrhea of the mouth" which impels.

them to babble without regard to common sense or the welfare of our intelligence

programs and, as I read the press, you two gentlemen both have this weakness.

I am sure that the intelligence organizations of all major nations make some

mistakes. But have you

the British, the French, the

Germans, the Israeli or the Japanese governments conduct such a "three ring

circus" on sensitive matters as you men are doing to your everlasting discredit?

I am sure also that we are the laughing stock of all the above enumerated

nations. What foreign official will entrust sensitive and confidential data to

U.S, intelligence agents in the foreseeable future when he knows thot he may soon

see his data publicized because of some misguided Congressional activity? 1 very

sincerely feel that strong administrative and/or criminal action should be taken

cases where either or both of your committees and/or their personnel have

been the vehicle for

embarrassing or

damaging the U.S. by actions which resulted

in confidential data being reported.

In order that there be no misunderstanding, this letter represents nothing

more than my

very sincere conviction of great personal contempt and disgust with

the way in which you and your committees have done a great disservice to the

United States by sadly mishandling your responsibilities to these agencies and

to our nation.

Sincerely,

cc: Rep. Otis G. Pike

House Intelligence Committee

Washington, D.c.

FRED H. HALL

6903 Cypress Road, C-21

Plantation, Fla. 33317

NW 68486 Docld:32989711 Page 110

620156464-

---

## Page 111

0-20 (Rev. 8-5-74)

Houstudy

Assoc. Dir. -

Dep. AD Adm. PSK

Dop. AD Inv.

Asst. Dir.:

Admin. _

Comp. Syst.

Ext. Affairs

Flos & Cord.

Gon. Inv. -

Ident. -

. Inspection

Intell. -

Laboratory

Legal Coun..

Plan. & Eval. -

Spac. Inv. -

Training =

Telephone Rm. -

INTELLIGENCE REPORT)..

WASHINGTON

(UPI) -- THE HOUSE ETHICS COMMITTEE IS TALKING WITH THE

FBI ON HOW TO TRACK DOWN THE SOURCE OF A SECRET REPORT LEAKED TO CBS

REPORTER DANIEL SCHORR.

THE NEW YORK VILLAGE VOICE PUBLISHED MAJOR SECTIONS OF THE FINAL

REPORT OF THE HOUSE INTELLIGENCE COMMITTEE AFTER THE HOUSE VOTED TWO

•TO ONE TO WITHHOLD IT UNTIL CLASSIFIED MATERIAL WAS REMOVED.

PRESIDENT FORD THEN OFFERED THE HOUSE THE "SERVICES OF THE

EXECUTIVE BRANCH"

WHICH INCLUDES THE FBI,

HOUSE SPEAKER CÄRL ALBERT SAID HE DIDN'T PLAN TO ACCEPT.

TO FIND THE "LEAKER"

BUT JUSTICE DEPARTMENT SPOKESMAN JOSEPH HAVEL SAID YESTERDAY THERE

HAS BEEN "INFORMAL TALKS" WITH THE COMMITTEE ON WHETHER THE FBI; MIGHT

THE FALKS BUT SKYD NO SECISION ON WHETHER TO USE THE ELENGE HAS EREN

SCHORR TODAY ADDRESSES A WASHINGTON PRESS CLUB LUNCHEON ON

"PROBLEMS OF NEWSMEN DEALING WITH OFFICIAL SECRETS." THE THREE

NETWORKS WERE REPORTED PLANNING TO FILM THE EVENT.

WASHINGTON (UPI) -- THE GROUP WHICH WAS TO HAVE BEEN A BENEFICIARY

DANIEL SCHORR'S SALE OF

VILLAGE VOICE HAS WASHED ITS HANDS OF THE WHOLE AFFAIR.

THE EXECUTIVE COMMITTEE OF THE REPORTERS COMMITTEE FOR FREEDOM OF

THE PRESS ISSUED A CAREFULLY WORDED STATEMENT YESTERDAY. IT SAID

SCHORR APPROACHED IT "WITH A PROPOSAL THAT HE DONATE THE PROCEEDS, IF

NEL SHAT HE DED NOT ASK OR ANDANG

RETURN

_NOR WAS ANY OFFERED."

UPI 02-25 09:49 AES

107

84 JUN JUN 6 1976

WASHINGTON CAPITAL NEWS SERVICE

i...

pite

NW 68486 Docld:32989711 Page 111

---

## Page 112

FD-350 (Rev. 7-16-63)

Au

fat, i

Cr

I.:.

Gen. I

]*

(Mount Clipping in Space Below)

Putting Reins On The FBI

Disagreement among House subcommittee

members over guidelines proposed for domestic

\ intelligence activities of the FBI underscores the

challenge legislators face in making rules that

, meet all free society demands without so handi-

capping the bureau that it cannot effectively do

the job expected of it.

On the one hand are congressmen like Rep.

Badillo of New York, who argues for tougher

guidelines than those suggested. They would pro-

I hibit instigation or commission by the FBI of

criminal acts, prohibit incitement of violence,

ánd the dissemination of information to discredit

individuals or groups. On the other hand are

congressmen like Rep. Edwards of California,

who thinks Atty. Gen. Levi has done a good job

• drafting the guidelines. .

• In the middle of the picture is FBI Director

Clarence Kelley, who appeared before the sub-

" committee. to warn of the dangers of overly

I restrictive guidelines. Box the FBI in too much,

Mr. Kelley was saying in effect, and it will lose its

capability to handle such threats to the public

safety as those posed by terrorist groups.

Reaction to disclosures of such domestic sur-

veillance programs as Cointelpro has tilted opin-

ion in the direction of demands for assurance of

greater protection of individual rights and liber-

ties. And, indeed, those rights must be guaran-

1, teed. In the matter of curbs on FBI activities,

however, the familiar pattern of response and

over-response is showing. The need is to strike

• a neat balance.

+---

Trait

Tel

(Indicate page, name of

Page

News & Courier,

Charleston, S.C.

-

- Misers i sterie

Date: Feb. 16, 1976

Edition: Morning

Author: Unknown

Editor:

ARTHUR M. WILCOX

Titie: Newst COURICe

Character:

or

Classification: 80-249

Submitting Office: Columbin

_ Being Investigated

62-116464-4

NIr.

170 Air.

we were.

376

59 APR6 19781

NW 68486 Docld:32989711 Page 112

---

## Page 113

0-20 (Rev. 8-5-74)

Assoc. Dir..

Dap. AD.

Dir.:

Admir. _

Comp. Syst. /K

Ext. Affaipt

Filos & Com..

Gon. Inv. -

Ident. -

Inspection

Intell. -

Laboratory

Legal Coun.

Plan, & Eval.

Spec. Inv. -

Training -

Telephone Rm. -

Director Sac'y —

'Hausterd

JP-013

ADD 1 INTELLIGENCE, WASHINGTON (UP-012)

ASKED LODAY IF HE THOUGHT

THE HOUSE WOULD BUY HIS RECOMMENDATIONS,

CONGRESS tO EXERCISE NESTCHT NOT SURE HOW MUCH WILL THERE IS IN

HE SAID HE COULD UNDERSTAND WHY THE EXECUTIVE BRANCH "WANT TO •

SUPPRESS THIS REPORT."

"IT WOÜLD INDEED BE EMBARRASSING TO US AS A NATION. BUT I THINK

THAT SUPPRESSING THE REPORT WILL HELP TO KEEP THE OLD

SYSTEM IN

OPERATION AND PREVENT THE RECOMMENDATION FOR A NEW OVERSIGHT

COMMITTEE FROM EVER

i COMING IN•

"I THINK THAT IT

IS

MORE IMPORTANT THE PUBLIC GENERALLY KNOW WHAY

THE HECK IS GOING ON. I BELIEVE THAT WE AS A NATION ARE STRONG ENOUGH

TO FACE •THE TRUTH

MATURE ENOUGH TO LOOK AT WHAT WE ARE DOING.

AND DECENT ENOUGH TO CHANGE WHAT WE ARE DOING."

PIKE WAS INTERVIEWED ON THE CBS-IV MORNING NEWS•

UPI 02-11 08:58 AES

62-116464-4

Nor nameras

I Wan

g 1976

file

1162

56 MAR 10 10

INGTON CAPITAL NEWS SERVICE

NW 68486 Docld:32989711 Page 113

---

## Page 114

0,20 (Rev. 8-5-74)

Assoc. Dir.

Dep. AD A

Dep. /ADI

Asst. Did

Admin. L

Comp. Syst.

Ext. Affalr

Filos & Com.

Gen. Inv. -

Ident. _

Inspection

Intell. -

Laboratory

Lagal Coun.

Plan. & Eval. _

Spec. Inv. -

Training -

Talephone Rm..

Director Sec'y _

UP-012

‹ INTELLIGENCE)

WASHINGTON (UPI) - THE HOUSE INTELLIGENCE CONMITTEE HAS FOLDED

LEAVING BEHIND AN UNPUBLISHED REPORT ON ACTIVITIES OF THE

(CIS AND FBI AND A STACK OF RECOMMENDATIONS ON HOW TO PREVENT FILEGAL

-ACTIVITIES AND ABUSES.

FORWARD ANY FINAL MINORITY OBSERVATIONS

THEY MIGHT HAVE ON A PACKAGE

OF APPROVED RECOMMENDATIONS AND SAID IT ALL WOULD BE SENT

TO THE FULL

HOUSE FOR ACTION

THE COMMITTEE'S RECOMMENDATION PACKAGE,

APPROVED BY A VOTE OF 9-4

INCLUDED ESTABLISHENT OF A PERMANENT HOUSE OVERSIGHT PANEL

WILLIAN COHEN WINE YESTERDAY IN ME A BIT.

VOLNE MOUSE SENATE COMPITTEE TO OVERSEE THE U.S. INZELLIGENCE

COMMUNITY.

•AT A NEWS CONFERENCE, THE TWO LEGISLATORS SAID THEIR PROPOSAL

! WOULD:

CREATE A COMMITTEE OF NINE CONGRESSMEN AND NINE SENATORS

SELECTED BY THE LEADERSHIP OF BOTH HOUSES.

- PROVIDE THE COMMITTEE WITH FULL LEGISLATIVE RESPONSIBILITY FOR

" FUNDS FOR FOREIGN INTELLIGENCE ACTIVITIES•

-- REQUIRE THE PANEL TO OVERSEE ANY ACTIVITY IN THE INTELLIGENCE

¡ COMMUNITY FUNDED BY CONGRESS.

ESTABLISH SANCTIONS FOR UNAUTHORIZED LEAKS OF INFORMATION BY

COMMITTEE MEMBERS.

HIPI. 02-11 0R:55 AFC

62-11644457

46 MAR 5, 1976

1,l0

84 MAR & 1976

WASHINGTON CAPITAL NEWS SERVICE

NW 68486 Docld:32989711 Page 114

---

## Page 115

de Vir.

Dip-11-Aem

(Mount Cllpping in Spr o Belosy)

Stop intelligence

purge; it is fatal

THE CURRENT CONGRES-

SIONAL investigations into

built

United States intelligence op-

erations are an excellent ex-

ample of how far this nation

has strayed from its underly-

ing responsibilities.

We are genuinely delighted

that Congress at last is trying

to regain some of the balance

and authority granted it in the

Constitution, but really isn't it

time the American people;

themselves regained control of

the entire governmental pro-

cess, including Legislative,y

¡ Administrative and Judicial

branches?

Many times lately we can-

believe that the folks in Wash-

ington have so isolated them-

selves from the realities of

our lives - and those of the

international community -

that we can never fully regain

historic foundations of repre-

sentative government provid-

ed wisely by our forefathers

200 years ago.

It is all the more tragic that

in this Bicentennial year, the

: heart of federal government

has so deteriorated as today to

represent the largest and

most ominous single threat to

human rights and freedom's

outside the covetous totalitari-

anism from without.

We certainly would not ad-

vise extreme pessimism as to

the future.

However, we would sharply

warn that most of the trends

of not only federal but state

and in some instances local

governments these days are

approaching an irreversible

E point from which recovery

will be impossible.

Nws8486RDocld187939711 Page 115

(indicale page, tianie of

newspaper, city und stare.)

We are no purveyors of the

oversimplified doomsday theo:

The Greenville

Piedmont

ry, but we would caution that

our very end as the grandest!

-

democratic experiment in his-

tory is all too evident in the

naivete, yea isolationist turn-

ing away from national and

world responsibilities,

atti-

Page 4

tudes pervading the fabric of

our everyday lives.

As said above, the most

tragicomedic aspect of this

has to be the great federal

sieve that is draining away

the highly necessary cloak of

secrecy surrounding the Cen-

,tral Intelligence Agency, State

Department diplomacy, Fed-

eral Bureau of Investigation,

'and virtually all governmental

functions which formerly de

manded covertness to be able

to carry out duties assigned to

. them by more reasonable andy

* wiser branches of government

than it appears we have at

present.

The House Intelligence Com-

mittee "leak" of top secret in-

telligence materials used in

Dase: 2-3-76

Edition:

Author:

Edstor: Wi. Co Morris

TAllo: GReenuile

Predmont

Character:

its investigation is only the

latest in cathartic spasms of

supposedly self-cleansing righ-

teousness which may seem

62

Classicaton: 80-143

fine now but if continued to

the end will be self-destruc- NOT RECORd estated

tive.

This world today is no telev. &e MAR

5 1976

ision make-believe cowboys-

and-Indians performance to be

played out until everybody is

either dead or alive, then the

"dead" climb up off the

5- Tie

---

## Page 116

ground and everybody goes in

the house for punch and cook-

ies.

It is deadly serious business

such as — for only modern re-

ference - a new President

John Kennedy floundering to

block Russian nuclear inva-

sion of nearby Cuba before he

may have known the way ta

all the White House bath-

rooms, helpless before the

cunning of a power-crazed dic-

tator.

It is the awful uncertainty of

the 1960s when severest revo-

lutionaries, ideologies hostile

to America, well meaning

though unrealistic peacenik

movements, became almost

unextricably jumbled and de

bilitating except for smooth

underground action by agen-

cies charged with the respon-

sibility to protect our nation.

It is the beginning of World

War Il when the FBI prevent-

- ed near-fatal sabotage by im-

mediately rounding up Ger-

man spies and saboteurs, a

feat unparalleled in modern

times and which would have

been impossible without secre-

cy, plus extraordinary extra-

legal surveillance and force

beforehand.

The necessity for keeping

governmental covenants in

such extreme situations is

fairly obvious.

Not so obvious apparently to

many in these seemingly less

perilous times is the necessity

ever tó keep at least similar

vigils both at home and

abroad lest this type of nation-

al and international erosion is

allowed to occur again - as it

surely will under current/

*Washington purgings.

NW 68486 Docld:32989711 Page 116

Let us as a nation not be suri

simplistic as to believe inside

and outside threats are not as

dangerous just because there

is no close-home war demand-

ing supreme sacrifice and ef-

fort.

We too vividly remember

he Pearl Harbors, Spains

Ethiopas, Austrias, Balkans

Polands,

Czechoslovakias,

Asias of past wars big and

small, each extracting in its

own horrible dimension our

very blood and vitality.

We do not believe there are

Communists, Reds, facism

and similar ideologies lurking

around every corner to do us

in, but we must in jeopardy of

continued democratic exist-'

ence know where they are just

rin case they feel bold enough

to challenge - and know fulld

well they will when our defen-

ses are riddled sufficiently.

These defenses are being

undermined rapidly by soft-

headed, unrealistic idealists

and self-seekers who must be

---

## Page 117

TO

FROM :

• SUBJECT:

:

OPTIONAL FORM NO, 10

MAY 1962 EDITION

OSA PPMX (41 CFR) 101-11.8

UNITED STATES

/ERNMENT

Memorandum

Assoc, Dir.

op. AD Adm..

Jop. AD Inv

r. Jenkins

DATE: 2-6-76

McDermott Jem o

COST DATA - JANUARY-1976

SENSLUDY AND HOUSTUDY

Comp. Syst..

Ext. difairs m

Filos & Com. -

Gan. 1n4. -

#dont. _

aspection

ntoll. .

Laboratory

Legal Coun, -_

Plan. & Eval.-

Spac.inv.-

Training -

Telephone Rm. -

Director Sac'y -

Due to the fact that this matter is being handled in Records Section

through normal mail processing procedures, it is most difficult to determine

which specific individual(s) may have typed a certain card or abstract, searched

a particular name, reviewed a particular file, etc. Therefore, names of

individuals have not been given. In some instances, a specific number of

individuals involved may be known and, where applicable, this has been shown.

But in some units it is impossible to know even how many persons performed

the work relative to a specific subject. All that can be given in some cases is

the estimated number of hours in a particular grade or level based on production

figures relating to this matter.

SENSTUDY

No. Personnel

Grade

8

2

1

1

GS-3

GS-4

GS-6

GS-6

GS-6

GS-!

GS-15

*Cannot be accurately determined

Salary

Man-Hours

$ 7,102

8, 508

9,946

10, 610

51/1

1/2

133 1/4

1/2

11, 606

15,071

2

37,573

62-116464

NOT RECORDED

170 FEB 17 1976

Agent/Clerical

C

3411820222

HOUSTUDY

2

1

GS-3

GS-6

7, 102

10, 610

13/4

Fo FEB+70 1975

1/2

C

Costs incurred in the Communications Section are negligible.

RECOMMENDATION: Refer to the Administrative

Division.

ORIGINAL FILED

31886

NW 68486. Decld:329897497468eIf4S. Savings Bonds Regularly on the Payroll Savings Plan

---

## Page 118

TO

FRO

SUBJECT

OPJIONAL PORM NO, 10

3010-106

MAY 1P42 EDITION

SEX' CAN. REO. NO.-27

UNITED STATES GOVI

AMENT

Memorandum

:

MT. McDermott

DATE: 1/28/76

W. In Bailey WhB

Housted

DISPOSITION OF SSC AND HSC RECORDS

On January 21, 1976, Special Agents Andrew J.

Duffin, Intelligence Division,

and William I. Bailey,

Files and Communications Division, accompanied Mr: Thomas

Martin, Office of the Assistant Attorney General, CivI

Division, Department of Justice, to a conference hela at

CIA Headquarters.

This conference dealt with the dis-

position of SSC and HSC records that have been obtained

from the FBI, CIA, Department of Defense, State Depart-

ment and National

Security. Council.

The results of this conference are set forth

in the attached memorandum dated January 22, 19%0, prepared by

Scott D. Breckinridge, CIA. The attached documents are

self explanatory and require no further action on the part

of the FBI.

RECOMMENDATION:

For information.

Assoc. Dir. -

Dop. AD Adm. -

Dap. AD Inv, -

• Asst. Dir.:

Admin.c

Comp. Sysi._

Ext. Affairs -

Filos & Com. -

Gon. Iny.-

Ident. _

Inspection -

Intell.

Laboratory

Plan.

& Eval. -

Spod. liv. _

Training -

Logal Coun. _

Telophone Rm. -

Director See'y.

ra .

FEBY

1976

62111

144.

NOT RECORDE

46 FEB 5 1976

ÓRIGINAL FILET

3 UNCLOSURE

3

Enclosure

I - Mr. Wannall - Enclosure

Attention Mr. Cregar

1 - Mr. Mintz - Enclosure

Attention Mr. Daly

1 - Mr. Duffin - Enclosure

84 FEB9 1943 nIm (0)

NW 68486 Docld:32989711 Page 118

TRITIALD OH ORINTRAT

---

## Page 119

wow, comer

INTELLIGENCE COMMUNITY STAFF TRANSMITTAL AND DOCUMENT

RECEIPT

FROM:

Intelligence Community Staff

DR. REX LEE

DEPARTMENT OF JUSTICE

Central Intelligence Agency

: Room 6E-2914

i Washington, D.C. 20505

DOCUMENTS LISTED HEREON ARE FORWARDED FOR:

INFORMATION

CONTROL NUMBER

COPY NO.

ACTION

DOC. DATE

RETENTION

SUBJECT (Unclassified preferred)

LOAN

CLASS.

50132/1

22. JALI TE

DISPOSITION OF PECOROS RE: THE

INVESTIGATION.

DATE SSWP 22 JAN 76

153710

RECEIPT

NATURE (acknowledgind receipt of above documents)

RETURN TO

È OF RECEIPT

ENCLOSURE

8 3772

373486 Döcid: Döcldi:32989711 Page 1s 2 - /16

10 Firs

INTELLIGENCE COMMUNITY STAFF

CENTRAL INTELLIGENCE AGENCY

ROOM 6E-2914

WASHINGTON, D.C. 20505

1 - WHITE, RETURN COPY

2. - PIKK, ADDRESSEE HOLD BACK

dAtA

---

## Page 120

CENTRAL INTELLIGENCE AGENCY

WASHINGTON, D.C. 20505

Review Staff:

76/0132/1

22 January 1976

MEMORANDUM FOR:

Mr.

Rex Lee

Assistant Attorney General

Civil Division

Department of Justice

Herewith is the package I propose to forward as

the report on disposition of SSC and HSC investigative

records, for submission to ICG.

If you have any questions, please advise them by

COB today, as I plan to forward the package to Mr. Rogovin

then.

witho

Scott D. Breckinridge

Attachment: a/s

Excers!. c

malismet

-NIV-68486-Docld:32989711_Page 120

---

## Page 121

Review Staff:

22, January 1976

76/0132

MEVORANDUM FOR: Mitchell Rogovin

SC/DC1

SUBJECT

Handling of HSC and SSC Investigative Materials

...

Representatives of the Department of State, Department of

Defense, Department of Justice, the National Security Council

Staff,

and the Central Intelligence Agency have considered al-

ternative ways for storing and handling the materials gathered

by the Senate and House Select Committees in their current study

of the intelligence activities of the government.

The key objectives were those of physically secure storage,

with proper controls over access to the materials, the ultimate

decision on nomal declassification remaining with the depart-

ments, agencies or organizations that originated the materials.

Two main alternatives were developed for where the materials

should be stored.

These were the National Security Agency (NSA)

and the National Archives and Records service (Naw: the pre-

ference being for the former.

The NSC Staff, in preferring storage

at NSA, specitled additional handling provisions for Its materials.

Attached are alternative draft resolutions, providing for

storage at NSA or at NARS. Also attached is the NSC staff pro-

posal. for modification of the proposal for storage at NSA, providing

for special handling there of NSC materials. These are intended to

provide a basis for discussions with SSC and HSC personnel.

It is requested that this report be submitted to the ICG. It

is noted that time has become an essential consideration, in view

of the inminent conclusion of the HSC investigation.

5. D). Breckinridge

Attachment: a/s

121. fr..

4.-1

128176

NW 68486 Docld:32989711-Page-121-

ENGENSUNG

62-116-4604

---

## Page 122

TAB .A

Resolved, that all

records, including boots,, papers, maps, photo-

graphs, or other documentaly materials, tegardless of physical for

o5 chazacteristics, made or received by the Select Committee to

Study Govermiental

Operatiois Bith respect to Intelligence Activitioa

as cescilbed below in Section 2, with their use being limited to

persons or arganizations

authorized in the manner described

DeLon In Section 3.

Section 2.:. All records transferred to the National Sacurity Agency

at secure storage-by the Sanate salaci committee shall de siorea In:

area or areas separate and discrete from all other areas ir

which recoras, are stored by the National Security Agency.

secure storage shall meet the security specifications designatua in"

Executive Branch standards foi appropriate storage of classilied ana,

ci unclassitied material.

The National Security Agency personnel

with access

to the recocas will be appropilacely cleared and uriefea

For recoids requiring speciai clearance.

.:.

saction 3.

use of the records transferred by the senate Select

committee. to the National security. Agency shall be linited to person

cleared anc briefed

1 Los the classifications aid controls of the

materials involved,

and shall be further limited to those persons

and members of organizations authorized in the specifto manner..

descrabed below:

: ..

= *

"f""

Section 3(3):

use. Of the recorus containing information ariginatea

by the senate Select Committee shäll be limited to (l) current

menhers of the acting, auly established Senate Legislative Oversight

Committee or Committees, (2) appropriate staff members

De the actio

auly established Senate Legislative oversight Conmittee or

committees, as duly authorized by the Chairman of such Conmittee in

TilLing.

use of such stured rucoris, doveloped by the senate Solect

committee from the testimony, depositions or affidavits of the

employees of vt tormer employees of the various depariments, agencie

or organizations shall be subject to the requirements of section 3 la

pelor, as thöugh furnished by them.

section 34b). Records furnisled or intormation provided to the

Senüte Select.Committee shall be available for use by persons,

agencies,

departments.

ox ciganination, or by congressional comnitte

or bodion other than the duly designated Senate Legislative Ovei=.

sight connittee of Commitrees, only with the prio concurrence of

the originating departmont, guency, organization, or its GliCcessor.

INCHO SURI

138176°

6.2.

1

16646i/-

NW 68486 Docld:32989711 Page 122

---

## Page 123

Section 3(0). Any s

uests for recoras or information delivered to

the iational Securit

oy the senate Se

ict Conmittee under

this Resolution; other than requosts from the duly established

tIve designated

by the department, agency or arganization that

originated said Information.

The designated official shail be

responsible for ensuring that the propar clearances exist for the

seguestor:

?.".

section 3lã). The records shall be treated as legislative records

for all purposes relating to.

their availability in litigation or

upon tequest by any person pursues to Law.

Section 4. Eventual downgrading or declassification of classified

gencies and organizations, or theis successors, In.

accordance

men applicable statutes and Executive Orders.

1/241?4

i's.

NW/ 68486

Jocld:32989711-Page-123

---

## Page 124

Resolved, that

all records,

, including books, papers;

photographs, on other docutary materials, tagardies se

physical form or characteristics, made or received by the

Select Connittee To Study Governmental Operations With

Respect To Intelligence Activities, established under

Senate Resolution 21 of the 94th Congress, shall be trans-

ferred upon the termination of the Select Cormittee's man-

date to the National Archives and Records Service

trustee for and agent of the Congress,

_as..?.

there to be held in

recure storaga 25 describad below in Section 1.

i with their

use being linited to those persons or organizations author-

ized ini

the nanner described below in Section 3.

Section'?:. All records transferred to the National Archives

and

Records Service for secure storage by the Senate Sélect.

Conmittze shall be.

stored in a secure area or areas separate

and discrete fron all other areas in which records are

stored.

by the National Archives and Records Service. . This secure

storage shall meet the security specifications designated in

Executive Branch standards for appropriate storage of classi-

tzed and/or unclassitied material. The Central Intelligence

Agensy, acting: in behalt or the Executive branch, will conduct

a physical security survey to ensure thai the storage facil

ities-neet those standards--

"National Archives

and Records

Service personnel with access to the records will-be appro-

priately cleared and briefed for records requiring special

clearance.

shall be limited to persons cleared and briefed fox the

classifications and controls of the materials involved, and

shall be further limited to those persons

and members

organizations authorized in the specific manner described

below:

•Section 3(a). Use of the records containing information

oxiginated by the Senate Select Committee shall be limited

to (1) current nembers of the acting, duly established

Senato Legislative Oversight Conmitice or Conmittees,

(2)

anpreets seatt members of the acting duly established

miLitian

NW 68486 Docld:32989711 Page 124

---

## Page 125

Senate Legislative Oversight Committee or Committeesy as

duly authorized by the Chairnan of such Committee in

writing..

of such

stored records, developed by the

Senate Select Cormittee from the testimony, depositions.

or affidavits of the

employees or of forner employees of

the various departments, agencies or organizations shall

be subject to the requirements of Section 3(b), below, :...

though furnished by them:

• Section 3(b).

Records 'Furnished or information provided

to the Senate Select Committee shall be' available for use

by persons, agencies, departments, or organization; or

by congressional conmittees or bodies other than the duly

designated Senate Legislative Oversight Connittee or.:

Conmittees, only with the prior concurrence of the orig-

inating departnent, agency, organization, or its successor.

Saction 3(c). Any requests for records or information.

delivered to the National.Archives and Recorus Service

by the Senate Select Committee under this Resolution,

other than requests from the duly established Senate

Legislative Oversight Committee or Committees (as provided

in Section 3(a), supra) shall be made in writing by a rep-

resentative designated by the department, agency or organ-

ization

that originated said information.

The designated

official shall be responsible for ensuring that the re-

questor has the proper clearances or approvals necessary

for access to the requested materials:

Section 4. Eventual downgrading or declassification of

classified records transferred by the Senate Select.

Committee to the National Archives and Records Service

agencies

accordance with

applicable statutes and Executive Orders:

Section 5.

Should any request under the authority of

5 U.S. C Section 552 be received for records held by the

Natzonal Archives and Records Service hereunder,

the

National Archives and Records Service shall advise any

person making such request that the records are not subject

the provisions of 5 U.S.C. Section 552.

rit

infraid

1/28317%

NW 68486 Docld:32989711 Page 125

---

## Page 126

Tab C

Section 2(a): Certain particularly sensitive materiall

supplied to

the Select. Committee by the White House

or the NSC shall be maintained in a separate safe in

the secure storage area.

Access to the material in

this safe will be controlled by the NSC rather than bly

NSA.

The provisions of Section 3 below will apply to

the material in this safe in the same manner as to the

other material in the secure storage area.

• 1

NW 68436 Docld:32989711 Page 126

---

## Page 127

1 - Mr.

B.

Adams

2 - Mr.

A. Mintz

(1 - Mr. P. V. Daly)

1 - Mr.

J. J. McDermott

1 - Mr.

I.

W. Leavitt

1 - Mr. S. F. Phillips

1 - Mr. T. J. McNiff

1 = MF: S. J: Miller

A ratch 16, 1.976

BY LIAISON

Captain John Matheny

Office of the Assistant to the

President for National Security Affairs

The White House

Washington, D. C.

deliverd

31 12

DON

Dear Captain Matheny:

Reference is made to CIA nemorandum to Executive

Branch Departments and Agencies dated february Zh, 1976,

entitled "Classified Documents Returned fron the House

Select Connittee on Intelligence."

In accordance with the request set out in

referenced letter, this is to advise you that the following

documents which were submitted by the FBI to the House

Select Committee (HSC) are presently unaccounted for and

presumed missing:

(1) FBI letterhead memorandum (LIE1) dated

September 15, 1975, unclassified, in response to HSC request

dated August 19, 1975, concerning "Requests for Information

Concerning Materials Furnished Senate Select Comnittee (SSC)

and the General Accounting Office (GAO) As Well As Certain

Intormation Concerning FBI Internal Organization, Informant

trogram and contidentia

FundEREC 120 =

"containing no enclosures.

X-115

Assoc. Dir..

-315

Dep. AD Adm. -

(2) FBI LIM dated September 17, 197, unclassified,

Dop iony. - in response to HSC request dated August 20, 1975, concerning

Admin. -

"Requests for Information Concerning This Bureal! Operacion

Ext Sirs —Of Informants," containing no enclosures.

Files & Com. -

GIL MAR 16 1976

Gon. Inv. —

Ident. -

Inspection -

Intell. —

in response oF 1e, dated, be 197, 1575109820302

concerning "Request for Briefing Concerning This Bureau's

Lorion Files and Classification Systems,'* containing ne

Plan. & Eval. -

enclosures

Spec. Inv. -

Training

-AJD: 1hb

(11)

Telephone Rm.

Director Sec't +

MAIL ROOM

TELETYPE UNIT E

N 6815650441032989716Page 127

---

## Page 128

Captain John Hatheny

(4) FBI LIM dated October 10, 1975, unclassified,

in response to HISC request dated September 18, 1975,

concerning "Request for Access to laterials Concerning

Mr. Dick Wilson, Iribal Chairman of the Pine Riäge Indian

Reservation," containing no enclosures.

(5) FBI LIM dated October 30, 1975, unclassified,

in responsc to HISC request dated September 24, 1975,

concerning r'BI materials regarding several individuals,

containing no enclosures.

(6) FBI IF dated October 6, 1975, unclassified,

in response to HISC request dated Septenber 25, 1975,

concerning "Requests for Information Concerning Cointelpros."

This cocument transmitted enclosures; horever, these enclosures

were accounted for and are presently stored at CIA.

(7) FBI Lit dated lovember 26, 1975, unclassified,

in response to 'requests for Information Concerning

Cointelpros," containing no enclosures.

(8) FBI LIl dated October 29, 1975, unclassified,

In response to HSC request dated October 9, 1975, concerning

"Request for Access to Any and ill Investigative Files

Concerning 13 Individuals," containing no enclosures.

(9) FBI Litt dated lovenber 5, 1975, unclassified,

in response to "ISC Request Dated October 15, 1975, Concerning

Warrantless Electronic Surveillonces and Surreptitious Intries."

This document transmitted enclosures; however, these

onclosures vere accounted for and are presently stored at CIA.

(10) FBI LIM dated November 5, 1975, unclassified,

in response to HSC request dated October 28, 1975, concerning

"Request for Access To or Production Of Certain FBI Files."

this document transmitted enclosures; hovever, these enclosures

vere accounted for and are presently stored at GIA.

- 2 -

NW 68486 Docld:32989711 Page 128

---

## Page 129

Captain John Matheny

(11) FBI Lil dated Hovenber 18, 1975, unclassified,

in response to HSS request dated October 28, 1975, concerning

"Request for Materials Concerning Peter Carejo," containing

no enclosures.

(12) FBI LH1 dated Decenber 1, 1975, unclassified,

in response to "Request for Infomation Concerning Arrests

lade in Areas of Sabotage and Espionage," containing no

enclosures.

(13) FBI If dated December 15, 1975, unclassified,

in response to HSC request dated lovenber 24, 1975,

concerning material on specific activities and individuals,

containing no onelosures.

(14) FBI Lit dated September 8, 1975, unclassified,

in response to HSC request dated fugust 19, 1975, concerning

"Request for Information Concerning Identity and

Paynents

to FBI Informants As Hell As Tax Records Filed Regarding

Such Paynents." This document and Its enclosures are missing.

The enclosures are four generic lists setting forth tax

rocords filed regarding payrents to FBI informants.

(15) FBI LHI dated lovember 11, 1975, unclassified,

in also enclosed additional cocunents, sone of which vere

classified "Secret," concerning various criteria which have

been utilized to include an individual's name on the Alax,

a chart reflecting a statistical breakdown of the ADex and

background information concerning the SI. These enclosures

= 3 .

NW 68486 Docld:32989711 Page 129

---

## Page 130

Captain John Macheny

It is noted all of the above documents and

enclosures were transmitted to the HSC on a permanent

retention basis and the I'BI is in possession of receipts

verifying actual transmittal of the documents and receipt

of same by the Committee.

Sincerely yours,

Clarence i. Kelley

Director

See memorandum S. F. Phillips to Mr. T. W. Leavitt dated 3/8/76,

prepared by AJD:lhb.

- 4 -

NW 68486 Docld:32989711 Page 130

---

## Page 131

NW 68486 Docld:32989711 Page 131

---

## Page 132

62-116464

1

- Ar.

Adams

• Nx. 5.

(1-Mx.

A.

Mintz

J. B. Hotis)

- Hit.

W.

R. Wannall

- Mx. W. O. Cregar

Septenter 15, 1975

1 - Mr. T. J. MCNifI

U. S. ICUSE SELECT COITTEE

ON INTELLIGINCE ACTIVITIES (ISC)

RS:

REQUESTS FOR INFORNATION CONCENNING

MATERIALS FURNISHED SINATE SELECT COLMITTER (SSC)

AND TES GENERAL ACCOUNTING OFFICE (CAO) AS WILS AS

CURTAIN INFORNATION CONCENNING FBI INTERVAL

ORGANIZATION, INFORMANT PROGRAM AND CONFIDINTIAL FUNDS

Reference 1s nado to HSC letter dated August 19, 1975,

requesting certain documents and information relating to specific

operationa of this Bureau.

Sex forth below by requegt number are

roplies to requests contained in reterenced communication which

are cirected to this Bureau.

Request nunter i retera to has request of July 23, 1915,

mereln this Buxean nas requasted to lurnish to the ust copies of

all documents and materiala provided to the 55c. 'Furauant to an

agreement reached hugust 15, 1975, at a comerence between

Ichreschratiyes oi the 1s4,

Bepartuent of Justice and the fBi,

this Bureau is moling available for revier to uSC Staff rembers

at ISI Readquarters as requested in USC letter pi July 22, 1975,

a copy ot natorial furrished to SSC by this Bureau. Interial

.50

designated by reviewing ISC Staff Menbers has been and will

continue to be processed for delivery to the sC.

Request number 2 represents a request made of the

Department of justice...

Reguest number 3 requests of this Bureau certain informa-

thon relating to the internal organization of this Bureau as vell

as intornation relating to the Bureau's infomant program and

confidential funds.

Naterial responsive to this requeat has

previously been furnished the ESC by Bureau menoranda dated

August 7, 1975, and August 14, 1975.

ORIGINAL AND ONS COPY TO AG

TJE:mjg

(9)

SEE NOTE PAGE THO

i'?.

3115

ENCLOSURE

NW. 68486Qocld:32989711. Page 132

gonna care.

see are done,.

---

## Page 133

ke+1500 1-

Dasd::11011=

62-116454

1 - MT. ...

B. Adams

2 - MI.

A. Mintz

(1 -1

If.

J. B. Hotis)

1 - Mr. W. V. Cleveland

1 - Mr. #. R. Wannall

1 - MI. J. G. Deegan fi

Septerber 17, 1975

- MI. R. L. Shackeliord

Do Mr. W. O. Cregar

1 - Mr. I. J. McNiff

U. S. HOUSE SELECT COMMITTEE.

ON

INTELLIGSACE ACTIVITIES (HISC)

RE:

REQUSSIS FOR INPORMATION

CONCERSTING INIS BUREAU'S

OPERATION OF INFORMANT'S

Reference is nade to ESC letter dated August 20,

1975, requesting specific, ininmation concernin? this

Bureau's oneracion of inforants during the period Jamary I,

1970, to June 30, 1975.

Item Number 1 requests that this Bureau supoly

the HSC with the FBI Cofinition of intommants.

laterial

responsive to this request is contained in Sections 107, 109

and 130 of this Jureau's Mamal of Instrictions, copies ce

which Sections were Furnished the ISC by Bureau nemstancua

dated Septerber 9, 1975.

Item Number 2 requests the total amounts paid to

Informants by this Bureau for each of the years specified

above. Material responsive to this renest has been

previously furnished the ESC by Bureau memorandum dinted

August 7, 1975, in response to request for this infomation

contained in ISC letter dated July 20, 1975.

Iten Humber 3 requests method of payments used

by the FBI for informants, 1.e., casi, check, loan, etc.

Established Bureau procedure requires that payments nade to

informants, upon recommendation of handlin Agent and

appinval of appropriate superviscry personnel, originate fren

the office field Support Account and are drawn from this

TJM: 1hb

SEE NOTE PAGE 4

(12)

ORIGINAL AND ONE COPY TO AG

62-116464-

ENCLOSURE

315

NW 68486 Docld:32989711 Page 133

---

## Page 134

U.S. HUGE SELECT CARITTIES ON INTELLICENCE ACTIVITIES (FISC)

RE: AS USSIS FOR INFORIATION CONCEIVING THIS BURMIU'S OPERATIN

OF IAPORKEATS

account by check made out to the handiins Agent for the

anunt authrrized. The handling agent cashes the chock at

& local bani and then nays the infozant the authorizad amount

in cosit, for which a reccist is received from the informant

and maintained in FBI files.

Iten Number & requests that for the years specified

above, this Bureau should state the portion of the payrents

to informants made in cash, check or stherwise. As set forth

in this Duresu's resnanse to Item 3 above, established

procedure is that all Bureau paynents made to informants be

made in cash.

Iten Number 5 inquires whether sny statements or

reports of payments in intomants were filed with the Internal

Ñevenue Service and/or local taxine authorities. Material

responsive ts this inquiry is contained in Fureau nemorandum

to the HSC dated September 8, 1973, wich was presared in

response to inquiry contained 10 MSC letter dated August 19,

1975.

Item Number 6 requests of this Bureau specific

Information concernine prosecution of Bureau informants by

Federal er Iscal authorities for violation of law and whether

or not the Sureau interceded in any manner in such proceedings.

This Bureau does not maintain a listiny or e

centralised indices bermitting reasonable access to the type

information requested above.

Is be responsive to lten

Humber 6, this Bureau «culd have to conduct a manual serial

by serial search of every informant file naintained at FBI

Headquarters int the serind specified. to undertake research

of this nagnitudo would lnvolve an extensive commitment ni

this Bureau's mannower and resources adversely uffecting

ongoing aid current operations.

• 2.

NW 68486 Docld:32989711 Page 134

17*

---

## Page 135

U.S. HUSE SELECT COMMITTEE ON INTELLIGENCE ACTIVITINS (ISC)

RE: RELUESTS POR INPORMATISH CONCERNING THIS BUREAU'S N9ORADIC

OF INPORVANTS

As indicated in this Bureau'g ressonse to Item

Humber 1 above, bureau infoaments can generally be classified

into thize cateraries: security, criminal and estranisi. In

an attempt to be ressonsive to Iten Funber 6, appropriate

SUDETVISDIY neIsinnel at I3I Heacquarters, knowierzeable

concerning informant natters, vere contacted in this regard.

fersonnel handling security- and extremist-tyne

informants edvise that they can recall instances in which FBI

informants operating in the security and extremist fields

vere arrested and/or convicied on the basis of criminal

activity in no way ralated to their infoimant status with

this Bureau. These nersonnel, howevat, have no recallection

of this bureau ever intercedine for a securizy of extremist

informant in juaicial proceedings.

These personnel also

advise that 1t is established Bureau procedure that when a

Bureau security or extrenist informant becones Imolved in

prosecutive matters as a result of crinipal activity, his

services as an informant are ciscontimed.

FBI Headquarters persomal handlin, crininal

Informants advise that this Pureau 19 currently operatinz

nore than 13,000 informants in the criminal field. The

overwheluins prasonderance of these Informants had been

arrested and/or convicted in local and/or Jeseral court at

one time pt snother en a vide variety of charges. This

Bureau has mode inown to a judge that a defendant convicted

In his court has been cooperative with the Goverment in

the past- which may or may not be taken into account when.

the judge passes sentence. This Bureau, however, makes a

point of notifyia, all informants at the tire they are

activated that this zuresu will not overlook criminal violations

on their part or protect then in the event they become

subjects of criminal pisceedings.

1 - The Attorney General

- 3 .

NW 68486 Docld:32989711 Page 135

---

## Page 136

U.S. HOUSE SELECI COMITIRE ON INTELIIGENCE ACTIVITIES (HSC)

• RE:

REQUESTS FOR INFORMATION CONCERNING THIS BUREAU'S OPERATION

OF INFORMANTS

NOTE:

Information responsive to Item Number 6 in referenced

HSC letter was obtained from Mr. Edward P. Grigalus, IS-2

Section; Mr. Homer A. Newman, IS-1 Section; and John I. McHale, JI.,

Division 9.

NW 68486 Docld:32989711 Page 136

---

## Page 137

62-115464

2

to i

MI

A. Mintz

(1

r. J. B. Hotis)

1 - Mr. J. J. Mcdermott

W. R. Wannall

Mr. W.O. Cregar

1 - MI. I. J. McNICE

October 16, 1975

U. S. HOUSE SELECT COMTITISE

ON ITIEILIGRNCE ACTIVITIES (MSC)

*RE:

REQUEST FOR SRIDFING CONCERNING

THIS BUREAU'S FILES AND

CLASSIFICATION SYSTEMS

Reference is made to HSC letter dated

September 9, 1975, requesting a briefing by Mr. John I.

Mclermott, Assistant lirector, FBI Files and Communications

Division, to discuss this Bureau's files and classification:

systems.

.---..

Thda-is to advise, pursuant to agreenent reeched

with Ellen Miller, HSC Staff Menber, en October 14, 1975,

No. Mcüernoti and/or members of his staff will be available

to afforo a briefing to ISC representatives as remested

In referenced letter.

Arrangements have been completed

for the requested briefing to commence October 20, 1975g

at 10:00 a.Il., in Koom 5829, J. Edgar Hoover Building.

1 - The Attorney General

TJM:lhb

(9)

ORIGINAL AND ONE COPY TO AG

NOTE:

dated

Memorandum W. O. Cregar to Mr. W. R. Wannall,

9/16/75, captioned "Houstudy 75,"

secured approval

for the above-requested briefing.

On 9/26/75, SA Paul V.

Daly, Legal Counsel Division, contacted Ellen Miller supra

advising her that the briefing had been approved and requested

that she suggest a date for the briefing to be held. On

10/14/75, Miller contacted SA Daly in an attempt to arrange

a mutually agreeable time for the briefing. The time and

date set forth in the memorandum is a result of a discussion

Involving Interested parties.

isl

62-1164644

MELBOU

330-7977

NV 68486 Docial 329897111 Page 137: it

---

## Page 138

-62-116464

1

- Mr. J. B. Adams

2

-Mr.

J.

Mintz

*

(1

J. B. Hotis)

W. R. Wannall

MI.

W. 0. Cregar

- MI. A. J. Duffin

October 10, 1975

U.S. INUSE SELECI CONMITIES

TO SIULI GOVZENT ENTAL OPERATIOUS

HITH, RESPECT: TO INTELLIGENCE ACIIVITISS (ISC)

RE:

REQUEST FOR ACCESS TO MATERIALS

CONCURWING IR. DICK WILSON, TRIBAL

CHAININ OF THE PIRE RIDGE INDIAN

RESERVATION

..0

Reference is made to HSC letter dated Sentember 18,

1975, which requested access to all notes, memoranda, filas

aund

reports concerning li. Dick wilson, Iribal Chairman of

the Pine Ridge Indian rescrvation.

This is to advise that the requested materials are

available for review at FBI Headquarters, Room 4171, J. Edgar

Hoover iuilding, washington, D. C.

,1 - The Attorney General .

AJD: mjg/1hb

(9)

ORIGINAL AND ONE COPY TO AG

NOTE:

Attached to the yellow of this memorandum is a

Xerox copy of an indices search revealing all references of

Wilson as contained in Bureau indices. Serials as set forth

on this search slin are the material available for access with

the exception of those references marked n. p., which were

determined to be nonpertinent.. Only those materials so noted

required excisions and an unexcised version of these materials

1s being maintained by the Senstudy Project group.

1

37911..10

2-116464- 35

ENCLOSURE

NWV-68486-Đocld:329697-11-Rage-136-

---

## Page 139

2 -

HI. J. A. Mintz

1-

1

Pit.

Pr. J. BolOtis)

R. Hannall

W. O. CrenaI

R.

A. Mondenhall

62-116464

October

=

30

1975

NOUGE SHIFCE COMICTEE

ON INASLLITANCE ACTIVINITS (HISC)

Referenco is made to FSC letter dated Sopterber 14,

1975, remiestina access to all notes, peroranda, files and

reports remarting the fciloving individuals:

=i..

. .:

•=÷=

HONaTE BOIT! COlfIcy

Alchard Joe Burton

Benry Jee "T1" SchafsI III

Jill SchafeI

Carl SIvIL

DOIn DurhaD

pertinent information testonsive to above RSC

request has been pranarca in accordance with established

procodures rolatinn to such matters, and this material is

avallahis for revin at FaIlO by appropriately cleared por-

sonnel of the Esc staff.

1 = The Attorney Gcneral

ORIGINAL AND ONE TO THE ATTORNEY GENERAI

KAM: 11j

(8)

NOTE:

CONFIDENTIAL

All of the above individuals are exposed Bureau

informants with the exception of Carl Brown, who is currently

an active and high level informant of our Tampa offica. In

accordance with procedures to protect this Bureau's rela-

tionship with informants; no documents will be made available

to ISC staff members regarding this indivídual. In order to

complete our response to the SC inquiry, however, SA Paul V.

Daly, who maintains liaison with HSC, will advise a senior

HSC staff member of Brown's status upon delivery of this neno-

randum and the fact no documents concerning Brown will be

made available for review by ISC staff members.

SA Daly will

also advise this information is to be held in strict confidence.

CONFIDENTIAL

2-116464

315

ENCLOSURE

• NW 684862ocld:32989/11 Page: le9

---

## Page 140

Re:

U. S. House Select Committee

On Intelligence Activities (HSC)

NOTE CONTINUED

CONFIDENTIAL

Documents being made available for review concerning

the other individuals mentioned above were previously pre-

pared and excised in response to a request by the Senate

select Committee under part IV, item 4, of their letter dated

August 20, 1975. In particular, item 4c concerned Durham,

4f concerned Burton, 4h concerned Godfrey, and 4i concerned

both Schafers.

Documents prepared set forth information

provided by, payments to, and Bureau supervision of these

former informants.

Tampa will be instructed by separate communication

to advise Brown that in response to a HISC request for informa-

tion concerning him a high level HSC representative was made

cognizant on a confidential basis of Brown's relationship

with the FBI.

This conmunication will also instruct rampa

to advise Brown that should he be contacted by any HSC

representative he should immediately notify his contact

Agent before responding to any HSC inquiry. Classified by

6283, XGDS 2, Indefinite.

CONFIDENTIAL

л Тїний

winite fox

.!'

CA ATAVaN: C: C:1226 100264281"

1s Coat

pezm Him 2298

-2-

37310 197

N 68486 Docid: 32989211 Page 140u

---

## Page 141

62-116464

2 - iKIT.

Mintz

(1 - 12.

J. B. Hotts)

1 - MI.

w. R. Wannall

1 - MI. W. O. Cregar

- 1 - Mix. F. J. Cassidy

1 • VI. D. Ryan

October 6, 1975

U. &. HOUSE BELECT COMMITTEL

ON INTELLIGENCE ACTIVITES (REC)

*RE: REQUESTS FOR INFOEMATION

CONCERNING COINTEL PROS

Reference is made to the letter of the H3c dated

September 25, 1975, requesting documents relating to this Bureau's

former Counterintelligence Programas (Cointelyros) directed against

Black astre mista and ta New Leit.

in accordance with this request, the documents nu abered

1 to 25 relatias, to tue Black Extremist Program, and 1 to 20 clating

to the New Leit Prograa have been appropriately excised and are

being delivered to you wita this memorandual.

1 - The Attorney General

NOTE:

See letter to the Attorney General dated 10/6/75,

captioned "U. S. House felect Committee on Intelligence Activities

(HSC), prepared by DEP:li}.

1 - 62-116009 (Cointelpros)

DKP:1fj

(10)

NW 68486 Docld:32989711 Page 141

62-116464-314

ENCLOSTIDE

---

## Page 142

62-116464

-

MI.

Mr.

J.

.

Adams

A

Mintz

1 - Mr.

B, Hotis,

1 - Mr. J. J.

McDermott

(Attn: Mr. J. M. Powers)

Mr.

5 Mr. W: B: Wannat

Wannall

November 26, 1975

Cassidy

U. S. HOUSE SELECT CONNITTLE ON

INTELLIGENCE ACTIVITIES (BEC)

RE: REQUESTS FOR INFORMATION

CONCERNING COINTELPROS.

During September, 1975, staff members of the HISC were

permitted to review files relating to this Bureau's discontinued

Counterintelligence Prograris (Cointelpros). By memorandum dated

October 6, 1975, this Bureau responded to a request of the ISC for

delivery of certain Cointelpro documents, and these were actually

delivered to the Conmittee on Cctober 7, 1975.

Among the material delivered to the Committee on

October 7, 1375, was an'FBI communication dated September 29,

1070, which indicated authorization wus being requested to implement

& Cointelpro action against one lit. James Edward seenan.

This Bureau is in receint of a copy of a letter dated

October 16, 1975, directed to the Deputy Attorney General irou one

James Edward Keenan of Durham, North Carolina. In his letter,

Mit. Keenan states, "I was informed by a stail member oi the House

Select Comuittee on intelligence on Octover 1J, 1975, that during the

year of 1970 I vas the victim of certain activities oi an F31 group

¿norin as Cointcloro," and requests he be provided with records of

this Bureau pursuant to the provisions o the Freedom oi Information

Act.

Review of the files of this Burezu has determined the above .

request for authorization for a Cointelpro action against sir. Keenan

was denied and he has never been the target oi Cointcipro action.

1 - The Attorney General

-1 - 62-116009 (Cointelpros)

SEE NOTE PAGE 2

1 • 100-449698.8 (Cointelpro-New Left-Charlotte)

1 ~ 100-452516 (James Edward Keenan)

• DR:lfj

(14)

NW 68486-Docld:329897-11-Page-142

62-116464-315

ENCLOSURE

---

## Page 143

'5;8

122

D. & Loust Select Comaittee

on intelligence activities (ESC)

10:

hequests for tornation

Concerning Colntelpros

.::.

NOTE:

• Ece letter to the Attorney Ceneral dated 11/20/75, cap

floned "U. 3, Eouse Eclect Coramittee on Intelligence Activitios

(uSC), "prepared by Dril.

Charlotte letter to Director dated 9/23/70 Indieated a

letter had been directed to FOM requesiing authorization to furnien

astormation regarding Kechan's New Leit ouckaround to an established

soarce at the North Carolina Stale Bar with tue view of preventing his

i admiltance to the Bar. No tigration appease in EBId Illes tudi-

cating further correspondence relathut to tils or any olast Colatelpro

action regarding Xeenan. On 11/11/75, Supervisor Joins Kenner,

Charlotte Office, telephonically aduleed a menorandum sopears

the Charlotte Cliice files indicatiag formes Charlotte MAC Earl

- Ehoote (rettred) epecillcally dented this Colatelpro actlou.

• :

N3S.

3011r2

I: :

d't:

Titany 4vd

Come: lew dealt Goal

otor

.,.

177577

"r??

"i""

• is ià..

УС"іЇ

Told denia.

'ük.

!.)

0470273

MIC T6 00117

NW 68486 Docld:32989711 Page 143

---

## Page 144

62-116464

2 - МГ.

J.

A. Mintz

(1 - Ms.

Hotis)

I - MI.

W.

R. Wannall

1.- MI. W. O. Gregar

October 29, 1975

1 - MI. T. J. McNiff

U. S. HOUSE SELBCT COMMITTEE

TO STUDY GOVEENMENTAL OPERATIONS

WITH RESPECT TO INTELLIGENCE ACTIVITIES (HSC)

„RES

REQUEST FOR ACCESS_TO ANY

AND ALL INVESTIGATIVE FILES

CONCERNING 13 INDIVIDUALS

Reference is made to SC letter dated October 9, 1975,

which requested access to any and all investigative files

concerning the following individuals:

Bruce Bloy

Cathy Sledge •

3а

Joe sard

Matilde Zinnernan

5.

6.

7.

Carl Sholin

Marc Rich

Laurie Faton

Jo-Ann Della Giustina

*9.

Barbara Kiene

10.

11.

Allen Taplin

12.

Ann Chase

Sue Carroll

13. Maud Wilkinson

This is to advise that the material requested

pertaining ease

pertaining to all of the above individuals with the exception

of cathy sledge is evallable for zaview at fBI deadquarter lo

Room 4171, J. Edgar loover Building, Washington, D. C.

noted material concerning Kathy C. Zahrie, also

known as

Kathy

Sledge was furnished to you by letter dated October 22,

1975, in response to your request dated October 1, 1975.

1 - The Attorney General

AiD: mjg

(8)

: ÷1

N 68486 Docid: 32989711; Page 144. 1

This document is prepared in response to you request and is not for dissemi-

nation outride your Committer.

I's use is lini. in officil micecedings bu

your commence and the conics may not de disclosca to unauthorized person-

nel without the express approval of the FBI .

64-116444-315

ENCLOSURE .T.

904877047

---

## Page 145

62-116464

12=

A. Mintz

(1

Mx. J. B. Hotis)

1 - Mr. W. R.

Wannall

1

- MI. J. W. Dalseg

I - Mr. W. 0. Cregar

1 - MI. I. J. Mcliff

November 5, 1975

V. S. HOUSE SELECT COMMITTEE

ID SIUDY GOVERNMENIAL OPÉTATIONS

WITH RESPICT TO LMTELLICEACE ACIIVITIES (HSC)

RE: HISC REQUEST RATED SCIODER 15, 1975,

CONCETWING FARRANTLESS ELECIRONIC

SURVEILLANCES AND SURTEPTITIOUS ENIRIES

The ESC, In a letter dated October 15, 1975, to

Michael E. Shaheen, Jr., Special Counsel for Intellirence

Coordination, U.S. Lepartment of justice, Washington, i. C.,

requested, atong other things, the following:

• 1. À list of all warrantless wiretaps against

domestic targets conducted between 1970 and 1975.

2a A list of all other sarrantless electronic

surveillances conducted ayainst donestic targets between 1970

end 1975.

3. A list of all break-ing conducted by the FBI

between 1970 and 1975.

4. A list of all other trespesses conducted by the

FBI between 1970 and 1975.

Pursuant to instructiong received fron lir. Steven

Blackhurst, Assistant Special Counsel for Intelligence

Coordination, Lepartment of Justice, these questions are

being answered in the forn of lists which identify targets

In generic terms. ine lists, which are belleved responsive

to these queries, are attached hereto.

I. Telephone Surveillances on Losestic Targets

Jaruary 1, 1970, through june 30, 1975.

AJD:mjg/ 1hb

ORIGINAL, AND ONE, COFY 10 AG

(9)

# 16481316

SEE NOTE PAGE 2

NW 68486 Docld:32989711 Page 145

ENCLOSURE

---

## Page 146

U. S. WOUSZ SELECI CUMITIEE ON INTELLIGLICE ACTIVIIIES (LSC)

RE: ESC NEQUEST LATCD OCIOBER 15, 1975, CONCELVLIG HARRAIILESS

RLICINONIC SUKVCILIMICES AND SURAEPTITIOUS EALZIES

2. Nicrophone Surveillances on Iomestic Iargets

Jamary 1, 1970, through June 30, 1975.

3. Targets of Break-ins (Surreytitious Intries)

In connection ulth ticrophone surveillances, Januazy 1, 1570,

through June 30, 1975.

4o Jargets of Trespass (Surreptitious Intries).

not related to hicroshone survelllances, jamary 1, 1970,

through June 30, 1575.

Enclosures (4)

1 - The Attorney

Ceneral

NOTE :

By letter 10/15/75, HSC requested the above which

was pursuant to a briefing given Congressman McClory and

members of HSC by INT'D on 10/10/75. Subsequent to this request,

Mt. Blackhurst advised that it had been decided that only

generic lists would be subnitted to the Committee in response

• to these queries and, based on his instructions, these four

questions are being responded to by the submission of the

attached generic lists. Per Mr. Blackhurst, in accordance

with white House instructions, EPCE and Flooding Iechnique

surveillances are not included in lists three and four.

NW 68486 Docld;32989711 Page 146

10076. 15:

THPNTTT

---

## Page 147

62-116-164

2.

Dro: J. A. Mintz

(1

11. J. B. Motis)

R. Wannall

0. Crocar

- dir.

NOrEnier

5

D. Hampton

1975

•U. 3. HOUSE ELECT COMITTEE TO STUDY

GOVAINLENTAL OFERATIONS FINI RESPECE

TO RIELLIGHICE ACTIVITIS CUC).

NURST FOR ACCESS TO OR PRODUCTION

OF CUNTAIN FBI FILIS

Tot

•=.

Hoference is made to ISC letter dated October 23,

1975, rocuestior, the above which consisted of trelve spacific

1t0ss. Tha following is our partial response to this recuest:

Item nunber 2 in roferenced lottei renuested accese

to material concerning Matildo Zinnerman which renuest vas

provously sot forth in gour letter dated october 9, 1975.

by lureau lettor dated October 29, 1975, you were advised

that

material relatàng to this individual is araliable for ravier

at ISI lCAdousItOrS.

Item nunbor y 1n referenced letter requested accass

to material concerning

nobert w. ilardy sud tillion Lemer, which

requests fere previously sot forth in your letter datod

Dotever 3, 1075.

By Buread letter dated Moveuber 3, 1975,

jou sero advised that aateriala rolating, to the above tea

Ites nuaber 8 in roferenced lctter roquested access

to natorial corcerning ichard doe burton, which request was

previousiy sot forth in your letter dateà septenber 24, 1975.

By Bureau

Lettar ánted Octouei 30,

1075, you sere advised that

morial relating to surton was availablo for revlow at rbi

Headquarters.

ADH: dut

¡ (8)

ORIGINAL AND ONE COPY TO AG

SEE NOTE PAGE 2

622 -

ENCLOSURE

315

NW 68486 Docld: 32989711 Page 147.

---

## Page 148

D. S. NOUSS SSISCT COLITTLE TO STUDY

COYZARERTAR DILATICAS

WITH RESPECT

TO INTELLICIACE ACTIVITIES (HSC)

RENUAST FOR ACCESS TO OR PRODUCTION

OF CELTAIN REI FILES

Iton nunier 12 In Icferenced lettar renuected

production of materinlialready revioned by the usc stais

concering bruce lloy and fare Rich.

consssting of turee docusants concerning bloy and eight

documents concorning fica, is enclosed for she isc.

The renaining items will bo responded to ss soon

as the portinent investigativo nateril is avilable and

reviewed.

Enclosuros (11)

I - The Attorney General

HOTE :

The referenced request consists of twelve items

referring to various investigative liolds.

They are being

handled as individual requests and will be responded to at

= later date.

066 1110

3.21

NW 68486 Docld:32989711 Page 148'

---

## Page 149

462-116464

2 - MI.

.

A.

ntz

- Mr.

J. B. Hotis)

1 - Mr. W. R. Wannall

1 - Mr. W. O. Cregar

1 - Mi. R. L. Shackelford

November 18, 1975

1 - Mr. T. J. McNiff

1 - Mr. R. D. Hampton

U. S. NOU'E SELECT COMITTEE

TO STUDY GOVERITIENTAL OPDRATIONS

WITH NESPOT TO IN DELLICCNCE ACTIVITIES (HSC)

..

RE:

REQUEST FO.' MATERIALS CONCERNING

PETER CAiR O

Lose ring or a see day and at to or 29, 1975.

In accordance with established procedures, Bureau Izle

concerning Peter Camejo has been reviewed and appropriately

excised materials relating to the basis fos the investigation,

and any instruction or guidance

This nacerial

is presentiy available at FBIBQ for review by #SC

Staff Members.

1 - The Attorney General

1 - 100-431511

RDH: eks/migns

(11)

NOTE:

Peter Camejo is a leading functionary in the SWP and

has been of continuing investigative interest to this Bureau

Dir. -

_since 1959.

AD Adm. -

, 18.

•AD Inv. -

Dir.:

in.

ip. Syst. -

Affaies

18 8 Com. -

Inv...-

no.-

section --

111. -.

saratory

in. & Eval. -

rc. Inv. -

aining

at Coun.

phone Rm.

cror Soc'y -

MAIL ROOME. TELETYPE UNIT

MW 68486 Bocid: 3289411 Page 115

B2-

116461-315

TENCTOSURE T. "T

GID: 147588-5611-726

---

## Page 150

62-116454

2 - MI.

3. A. Mintz

(1

- bir. J. B. Motis)

1 • rit.

W. R. Lannall

1 - MI.

We A. Branigan

December 1, 1975

•1 - MI. J. W. Redfield

MI.

R.L. Shackalford

0.

S. IOUS& JULECT COLMITTES

- Pir.

W.O. Cregar

GN INTOLLIGINCS ACTIVITISS (HSC)

- MI. T. J. McNiff

RE:

REQUEST FOR INFORMATION

COSCORKING ARRESTS MADE IN

ARGAS OF SABOTATE AND ESPIONAGE

On Moreuber 5, 1975, Assistant Diractor

W. Rayond Wamall, Section Chief Robert 1, Bhnckelford

and special agent Supervisor David Byan, all of this Buresus

offered suora testimony to fOG dEuCE Members.

Page 153

of to transcript, sectise torth recite oi this testinony,

contains the collorin qestion fron sC staef lender

Rácherd Vernaire:

"¡low many domestics have besn arrested

Lor espionaga or sabotaza?*

By tne word domestics, it 1o

balieved tir.

Ferneiro was referring to united States citizena.

nã & sinilar question referring to foraign cationals

concalaad on lage 1o2 of the transcript limited the time

frame Iron 1960 to 1975, Chis same sime frana will be

utslized in replying to the questlon cuncariog United States

citizens.

Laview of Bureau records indicate that, during

the years

1960 to 1975, Lour Unlted States citizeas have

beea arrested for violation of the sabatage Statute

twelve United States sitizens have been arrested for

violation of the Espionage Statute.

1 - The Attorney General

TJM: lhb/mjg

i..:

( 11)

..:

:..

leet me".

- ::

ORIGINAL AND ONE COPY TO AG

NOTE:

Above statistics were compiled as a result of research

conducted by Special Agent Louis J. Brune,- JI.,-IS-2 Section.

...

seeing a weidi:

NW 68486 Doc 32989711 Page 150.;

62- 16484-315

ENCLOSURE

THE I

---

## Page 151

52m11G164

<

is o

SIT.

clo

SIZe

(1 - Hi.

J. B. Hotis)

Hir.

Mr.

W. R. Wannall

#. 0. Cregar

K. A. Mendenhall

P. W. Cooks

December 15, 1975

U. #. ICUSE RELECT COMITTEE QU

IMPEULIGRICE ACTIVITILS (1S6)

Toterènco is nade to IsC letter datod Hovenber 24,

1975, requesting access to ail notes, menorants, iles dad

REpOrtS portranD to apocizio notivition concerning te

folionine individuais mso vare inornants or adioged to io

*antied Burnoticattle bonbiage

Went Demonimsestiie bonbings

-David Sacnesoseattle Dondira

_Barce Varker Gentile court louce danago

-Thomas dosher-Stariord Univercity anti-lar novencat

-Wondung singunta tuonas iongyai d'ayondiya-Hobart

-Boyd i louglas, dro' nant coast conspizacy to

-Carl Foosor-sotand Voterans Agatnot the Har (VVAR)

Inetacio (brant:) artinee Chicao osganizationa

BaerEOn POETIVAW

veronce hornament state Unitercity

Chardes k. tsim inversity of dadada

Mamorce coit-evolutionary Daiza

Portinent natorial responsite to the above but

soplost has bean retrieved and is available or zoview

IDE Headquartera by

appropriately cleared persouned ot

Bro stall.

tire

1 = The Attorney General

ORIGINAL, AND ONE TO THE ATTORNEY GENERAL

MIC: dew

(9)

SDE NOSE PAGE THO

=: 14604460

if 3/5

ENCLOSURE

NW-b848b-aoeld132189/11-Page 101:

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## Page 152

U. S. HOUSE SELECT COMITTEE ON INTELLIGINCE ACTIVITIES (USC)

HOTE:

CONFIDELTIAL

All of the above 16 Individuals are known to this

Sis Inâivid als, Alfred Burnett, Jef? Dosnond,

David Sannes, Fustacio (Fraas). Martinos,

Charles 3. Crim

and Pablo Manuel Fernandez,

were Daver TaILO approved

Inorants nlthough allegations in that etfect hnve been

publicised in the past.

Mine Individuals, Horace Farter,

Thomas Hosher, Boyd Douglas, LitTy Grantwobl, Enerson 20e,

George Denserle, Lenrence Golf,

blonizung binghate Thonas

Tongyal M'nyonalya and ferrence B. Norman, vere Bureau

informants, whose contidential relationships with this

Burenu have becone pukiic knowledge either through giving

testimony or because of insesponsible actions on their part.

Requested material appropriately excised concerning

the above tro entorories of intomants is being nade

available to the noc. these Individuals are not being

notilked by this Bureau of SC interest in their activities

as the autornant roporte thensolves are

not being furnished

and the infozation concerning the specified sctivity as

appeared in the nasa media.

With regard to Carl Becker, this individual in

8/73 teotified nt the TVAl trial is Tallahassee, Florida.

Since 7/72, becauso of hia subversive and extrenist contacts,

he continued to furalan valuable infornation to the New Orienus

Oxfice, and is currently pperated by the feu Orlenns Offico

an a conildential source.

"If this cosmunication is approved,

Ner Orleans vill be advised that the acC vas furnished an

excised sumazy al Becker's relationship with this Bureau up to

and including the time of his testimony and no intoration

sas volunteered concerning his current status.

New Crlenus

will bo instructed to so notijy Becker and advise hia to be

guided accordingly in the event be is contacted by

representatives of ISC.

He. Fill: also be instructed to

Ianediately furnist his contacting ngont tho results of any

suca contact.

Above mentioned pertinent materia; concerning

Sanses, Criran,

, Normany Grantrobl

and N'ayondlya has been

previously nado vailable io the SSC li response to a

ainllar request fron that committee.

bocinents being nade

available contain only information concernag specific

areas of intorcat to the ISC with regard to thess 16 1adividual3.

Classified by 6570, XGDS 2, Indefinite.

CONFIDENTIAL

-2=

NW 68486 Dộcld:52989711 Page. 152*

---

## Page 153

62-116464

1 - Mx. J.

Adams

2 - Mr. J. A. Mintz

•(1 - Mo. J. B. Hotis)

11- Mr. A. J. Decker, Jr.

Attn: Mr. C. D. Neudorfer

1

Mr. W. R. Wannall

September

9, 1975

fiT.

W.

0. Cregar

- Hit.

T.

J. McWiff

U. S. HOUSE SELECT COMMITIGE

ON INTELLICENCE ACIIVITIES (HSC)

RE:

REQUEST FOR INFORMATION

CONCERNING IDENTITY AND

FAXMENTS TO FBI INFORMANTS

AS WELL AS TAX RECORDS FILED

EDGARDING SUCH PATMENTS

Reference is made to HSC letter dated August 19,

1975, requesting:

(1) All names, addresses (1E known) and dates of

payments to al, FDI Informants fron Jamary I, 1970, to

June 30, 1975.

(2) All Federal Internal Revenue or state and

Incal tax records or forns filed by the FBI with respect to

Informant paymants from Jazuary 1, 1970, to June 30, 1973.

With regard to Number 1 above, Steven Blackhurst,

Deputy Special Counsel for Intelligence Coordination, Department

of Justice, on August 21, 1975, advised Speciel Agent Paul V.

Daly of this Bureau Chat the FBI should not make available

matexiel tending to disclose or identify IBI sources.

With regard to Number 2 above, it should be noted

that this Bureau did not wichhold Incone tax deductions on

payrents made to all informants: The overwhelming majority

of instances in mich such tax deductions were effected

Involved certain security infsimants who experienced difficulty

for Federal income tax purposes to report payments received

from this Bureau for sezvices, without jeopardizing their

security as informants. At the conclusion of each tax year

TJM:eks/ 1hb

(20)

NW 68486 Docld:32989711 Page 153

ORIGINAL AND ONE COPY TO AG

62-

02-1/6536-38

SHH. NOTE PAGH 3

HICLOSURE

---

## Page 154

S. HOUSE SELECI COMMITTEE ON INTELLIGENCE ACTIVITIES (RSC)

REX

REQUEST FOR INFORMATION CONCERNING IDENTITY AND PAYMENTS

TO FBI INFORMANTS AS WELL AS TAX FECORDS FILED REGARDING

SUCH PAYMENTS

and as pertinent information pertaining to all such deductions

became available, this Bureau would submit to Internal Revenue

Service (IRS) a coded list of informants with tax deductions

withheld for each, along with & bank check made out to IRS

for the total ancunt withheld. At no cime did this Jureau

file any individual lax returns for infommants.

It should be noted that because IRS records are

noy computerized, making it Impossible for IRs to provide

proper security for continuance of the above procedure, and

to effect, for this Bureau, a considerable nonetary savinga

In clerioal and Agent salaries required to maintain extensive

records in this regard, this Bureau, effective August 19, 1975,

discontinued the practice of withholding tax deductions nada

from informant payments.

In response to request Number 2 above, there are

enclosed tax reports filed by this Bureau with the IRS

reflecting tax deductions nade from informant payments

coverar repo eaten tear year 1974 1a curently being

prepared at FBI Readquarters and upon completion vill be

similarty subnitted to the IRS.

EnClOSUICS (4)

I - The Attorney General

2

-

NW 68486 Docld:32989711 Page 154

---

## Page 155

U.S. House Select Connittee

On Intelligence Activities (HSC)

Ke: Request For Infornation

Concerning

• Identity

And Fayments To ISI

Informants As Well As

Ies Records Filed

Regarding Such Rayments

NOTE:

Informatica relating to the Department's decision not to

disclose the identity of Bureau's informants to the HSC is contained

in memorandum fron legal Counsel Division to Mr. J. B. Adams

dated 8/22/75, captioned "Houstudy."

NW 68486 Docld:32989711 Page 155

---

## Page 156

2

ras

J. A. Mintz

J. B. Hotis)

W.

R. Wannall

11X.

•W.

A. Branigan (RIFR)

MT.

W.

0. Cregar

MI.

K. À. Mendenhall' .

62÷116464

November ME: 1975

S. BOUSE SELECT COLITICS

DU INTIIEIGENCE ACTIVITIES (ESC)

IE:

SECURITY INDEX (SI) AND

ADHINISURATIVS INDEX (AD3X)

Reterence 1s made to HSC lettar dated September 30,

1975, requesting delivery and accesa to cortain docurants

and information regarding the ADEs Ena 1c5 precedent, the 54a

Reference jo also nade to NSC letter dated Detover 15, 1975,

requenting, under itors 5 anâ 6, a listing of all persons who

have been on the ADix since its inception; a copy of che

current iDEY List and a list of all persons on the the SI.

when it was discontinued.

penerandom dacad Septenber 12, 1375, setting forth beckyround

infornation concerning the sI

and the ADDY.

Enclosed ara docents tafleating the various

alteria which have been and are currently being utilized

to include an individual's nane on the Ably and a chart

reflocting a statistical breadown of the Adex addisionally,

information is set forth in Section 87, Iten E, page 18,

oi, the rst mantas of Instruotions (MOll, concarning tha

criteria for inclusion on the ADEX.

A copy of this section

of the Mol has previounly been furniched the ESC.

It la noted that this Bureau has in the past, made

available the computerized ADEL listing dated September 15,

1975, for review at FlI Beadquarters (P37H0) to MSC staft

manbers, Richard Vermeire and Janes Oliphant.

With regard to

the ESc request for dolivery of this ADlY list, this Eureau

is of the fim conviction thet an extensiva and sensitiva

11st such as the ADEX should not be reloased from the strict

eupervision and security afforded at palllO.: However, in

ORIGINAL

RAM:en

(9)

NW 68486 Docld:32989711 Page 156

nation outside your Committee.

your Committee and the content may not be disclosed to unauthorized perast

nel without the express approval of the EBI , SEE NOTE PAGE 4

SECRET MATERIAL ATTACHED

62-116504-515

CLOSURE

---

## Page 157

RE:

SECURITY INDEX (SI) AND

ADHINISTRATIVE INDEX (ADEX)

order for the uSC to tesolve any questions relating to

the operation and maintenance of the DEx and to enable

the HSC to comply with its mandate in levery respect,

this Bureau will, upon request, continue to make the ADEX

list available for review at FBIIQ to appropriate ISC

repIssentatives.

Authority for maintaining the ADIM stens from the

Attomey General and such authority is set forth in a letter

from the Attorney General to the Director of the FBI dated

October 22, 1971, a copy of which is enclosed with this.

senorandun.

Those documents pertaining to the sI to which access

was requested are avallable for review by appropriately

cleared ISC staff ménbers at FBI Headquarters.

In this

regard, it is to be noted that authority for maintaining the

SI stemmed from the Attorney General in connection with the

Departmental portfolio entitled "Progran for Apprehension and

Detention of Persons Considered Potentially Dangerous to

the National Defense and Public Safety of the United States."

Detailed infornation and documents concerning what

steps were to be taken in evant of a national emergency are

set forth in the abova-mentioned portfolio which, since that

, Bocunent originated with the Department of Justice, should

be obtained fron that source.

As has previoualy been stated, the ADIX 1s reviewed

continuously and on & monthly basis is hrought up to date

wilth nanes being adied and deleted.

The st list was prepared

In the same manner and, as with the tomar sI, when a new

monthly ADEX list is preparad copies of the old liat

are destroyed inasnuch as they are outdated and no longer

serve a useful purpose. Also, as you have previously. been

advisad, nanes

appearing on the forner SI and the ADEX

have been printed on 5 s. 8 cards with a single name printed

on each card.

Background information, file numbers, and

type of activity in which the individual is engaged is also

!placed on these cards.! As was explained to Mr. Vermeire on

October 17, 1975, approximataly 15,0000f those cards, all

outdated, have been located at FBI leadquarters.

Fhese

2 ro

NW 68486 Docld:32989711 Page 157

---

## Page 158

RES

SECURITY INDEX (SI) AND

ADHI ISTRATIVE INDEX (ADER)

cards include soms which contain the identity of individuals

tho were maintained on the pIlority III level of the former

sI and all ADEX cards deleted or cancella since 1ta

lAnception,

During the

initial period of establishing the

ADEX, in order to obviate the need for conducting massive

file reviers; the AbEx consiated primarily of the identity

of those individuala who had been maintainad on the former

SI, Although these names vere originally placed in this

manner on the new ADEK, as cases were reviewed under our then

existing reporting proceduras, each case was to be reviewed

on its own merits uttlizing the then current criteria for ADEX.

to deterine whether continued inclusion on the ADEX was

warranted.

Il not, the individual's name.uas deleted. As

previously indicated, during 1972 the ADEX was avaluated and

revised und as a result, the number of indivicuals sho were

Included on the ADEX began to decline and thus the high number

Di cancelled cards. In accordance with Bureau policy, which

was Insticuted during the st progran, these cancelled

are maintained at FBIAQ for a pariod of three years and

there is no way to reconstruat a former SI or ADIX list for a

particular time period by reviering these cancelled caras.

Those cards, however, will reflect the identity of those

Indiviauals who have

been placed on the SI and the ADEX LOI

the period for which these cards were maintained.

Should the Isc so desire, the outdated si and

Avex cards mentioned above will be

nade available for review

by apriopriate ESC representatives at FBIEQ.

Enclosures (9)

] - The Attorney Genetal

• 3 mi

NW 68486 Docld:32989711 Page 158

---

## Page 159

SECURITY INDEX (SI) AND

ADMINISTRATIVE INDEX (ADEX)

NOTE :

As previously stated, we neither believe it

necessary nor desirable to release copies of the ADEX list

due to the sensitive nature of this list.

Any release of

Information concerning the identity of individuals maintained

on the list could be detrimental to ongoing Bureau investi-

gations, particularly with respect to the identity of those

Individuals maintained on the espionage section of the ADEX.

Per Thomas D. J. Brooks and James Nolan of the CI-l Section,

the espionage section of the ADEX should be classified "Top

Secret" inasmuch as disclosure of certain names on the list

could adversely affect sensitive sources of this Bureau.

Edwarâ P. Grigalus, Unit Chief, IS-2 Section, should

contact representatives of the

CI-1 Section to coordinate

the clasification of this section of the ADEX.

NW 68486 Docld:32989711 Page 159

---

## Page 160

1

Mr.

-

Mr.

J.

T.

B., Admas

W

• -Leaxitt

The Attorney Ganeral

Director, FBI

1

- Mr.

I - Mr.

March 12, 1976

S.

R.

5. Mignosa

L. McLanahan

HOUSE COMMITTEE ON ETHICS,

INVESTIGATION - LEAK-ORALIKE

CONMITTEE MATERIAL TO VILLAGE

VOICE

7911368

175070

13/14/00 0: SP2 ALMAP:

On larch 3, 1976, Mr. David W. Bowers, retired FBI

Agent who has been naned to direct the investigation by the

House

Ethics Committee regarding the leak of the Pike Cormittee

report, contacted a representative of this Bureau.

At. Bowel's

advised that he has acquired 12 retired FBI employees for the

investigative staîi of the House Ethics Committee.

Mr. Bowers

also advised that at this moment they have no need for any

personnel fron the FBI; however, Chairman Flynt my at a later

the find a need for fßl assistance and, thereiore, be

ispat

going to withdraw his request or the Attorney General.

6 1076

according to Mir. Eowers, a Washington, D. C., law

MAILED

fan was approached for the post of legal Counsel to the

sommittee but-turned it down, and Chairman Flynt has now

engaged, the sgrvices of an Atlanta, Georgia, law firm for

MAR

this purpose i

REC-3

42-116444314

On March

ORDED COPY FILED

wang, United Press International reported

that Chairman Flynt Stated

that the panel had decided not to

are the FBI in its invostimation on the leak and pullieation big

toad

a newspaper of a secret intelligence report.

Chairman Flynt

told reporters the panel had decided to hire ten investigators

and

thrce lawyers in addition to David Bowers, who will direct

the investigation.

Chairman Flynt reportedly

stated that the

FBI was "one option but our present intention is to do it

without calling on the Department of Justice to loan us the

Assoe. Dir.

FBI.

Dep. AD Adm. -

Dep. AD Inv. -

We want peoplo who are accountable to us alone a MAR 16 1976

Asst. Dir.:

Admin.

The above is being furnished for your information.

Comp. Syst. -

I - the Beputy Attorney General

Ext. Affairs -

Files & Com. _

1 - Assistant Attorney General,

Gen. Inv..

Criminal Division

Ident..

Twile

Inspection.

Intell. -

RIM: ddo dd.

XEROX

Laboratory -

(9)

SEE

NOTE PAGE

Legal Coun. _

Plan. & Eval. -

MAR

1€ 1978

Spec. Inv. -

pun

Training.

in

2

cHil

relephope Rm. -

Director Soc'y -

MAIL ROON:

TELETYPE UNIT [

GPO: 1975 0 - 594-120

NW 68486 Docld:32989711 Page 160

---

## Page 161

The Attorney General

NOTE:

On 2/17/76, the Bureau received a memorandum

from Assistant Attorney General Richard I. Thornburgh,

Criminal Division,

captioned

"Disclosure and Publication of Allegedly

Department of Justice, Classified

Information by The Village Voice, on or About February 11,

1976. "

This memorandum

requested that a prelininary

inquiry be conducted in order to determine whether any

action is necessary by the Department of Justice.

The

memorandum set: forth specific information desired in this

preliminary inquiry.

While the information contained in this letter

for information purposes only.

- 2-

NW 16R4R6-Roclde32999711 Page 161

---

## Page 162

TO

OPTIONAL FORM NO. 10

GSA FPAIR (41 CFRI 101-11.6

UNITED STATES GOVERNMENT

Memorandum

THE DIRECTOR

DATE: March 3, 1976

FROM

P. CALLAHAN

Files & Com.

Gen. Inv..

Ident. -

Inspection

Intell.

SUBJECT:

HOUSE SUBCOMMITTEE.

ON_ETHICS.

INVESTIGATION --LEAK OR PIKE COMMITTEE

MATERIAL TO VILLAGE VOICE

Pion. & Eval.

Spec. Inv..

Training

Telephone Rm.

De

Dave Bowers called the writer this morning and advised that he has

lined up twelve retired FBI employees to the Investigative Staff of the captioned

Subcommittee-which.he,-Bowers,-directs. He stated that a Washington law firm

was approached for the post of Legal Counsel to the Subcommittee but turned it

down and Chairman Flynt has engaged an Atlanta, Georgia, law firm for this

purpose.

Bowers stated that_at_the moment they will have no need for any personnell

from the FBI but that Chairman Flynt may at a later time find a need for FBI

assistance and therefore is not going to withdraw his request from the Attofney

¿General at this time.

Bowers advised the retired FBI employees who are coming with

a him

= Zare as follows:

inDy RETAINED

John W. Marshall

Paul F. O'Connell

Courtland J. Jones

Joseph M. Sizoo

Norman E. McDaniel

J. Donald Huppert

The above is submitted for information.

1 - Mr. Adams

1 - Mr. Jenkins

1 - Mr. Mintz

1 - Mr. Walsh

1 - Mr. O'Connell

John E. Kelly, Jr.

Frank J. Hudson

C. Benjamin Fulton

C. Edwin Glass, Jr.

J. B. Engelstad

A. B. Fipp, Janett

UP FIN IS UNC

D 11368

REC-104 62-1162

UNRECORDED COPY FILED IN

4-313

123 MAR 10 1976

NPC:gt

6

— SEROT

1*.

MAR 15 1976

84

2 2 1976

PERS. REC, UNIT

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

NW 68486-Bocld:32989711 Page 162

---

## Page 163

Serial Charge-Out

RECORDS MANAGEMENT DIVISION

RECORD/ INFORMATION DISSEMINATION SECTION

SERIAL CHARGE OUT

This Document Has Been Removed

TOP SECRET MATERIAL

Document can be located in the SCIF, ICRC

CONTACT UC BETTY WEAVER FOR ACCESS TO

DOCUMENTS

NOTE TO DISCLOSURE:

Please proceed as usual processing other documents in the request.

FOIPA # 1202241

File # HQ 62-116464

Date of Mail

Date 1215/12

Analyst -

John Ackair Miller

Serial 313

Page (s) 1b

Initials JAM

Team_WPU

SERIAL CHARGE-OUT

Approved:6/24/03 DMH

INW 68486 Docld:32989711 Page 163

---

## Page 164

The

Director,

•1 - Mr.

- Mr.

- Mr.

- MI.

(1

- Mr.

1 - Mr.

B.. Ấdams*™

J.

Jenkins

V.

Clevelana

tho

R.

J. Gallagher

J.

A.

Mintz

-

Mr. J. B.

Hotis)

W.

W.

R.

Wannall

0. Cregar

lovenber 28, 1975

corney ceneral

12-116464-312

a G. Deegan

R.

I. Shackelford

1 - Mr. F. J. Cassidy

U.

S.

HOUSE SELECI COMMITTEE ON

I INTELLIGENCE ACTIVITIES (HSC)

On lovember 18, 1975, Assistant to the Director-

Deputy Associate Director James B. Adams, Assistant Director "

W. Raymond Wannall, and other representatives of the FBI

appeared in open hearings before the HSC, chaired by

Congressman Otis G. Pike.

During these hearings my representatives verc

asked to furnish the attached information for inclusion in

the official record of the hearings.

Enclosed for your approval and forwarding to the

HSC is the material requested.

A copy of this material is being furnished for

your records.

Enclosures - 29 ENCLOSURE

62-116464

ONCL BEHUT MITE

L • The Deputy Attorney General

Attention:

Itichael E. Shaheen, J*.

Special Counsel for

Intelligence Coordination

1220

Assoc. Dir.

Dep. AD Adm. -

Dep. AD Inv. _

Asst. Dir.:

Admin.

(15)

Comp. Syst. _

Ext. Affairs

Files & Com. _

Gen. Inv.:.

Ident. :

"inspection.

"Intell."-

Laborososy

Plan. & Eval. -

Spec. Inv. -

Training -

'Legal Coun

Telophone Rm..

DIRECT SECHAR 1 MALLOROOML

TELETYPE UNIT L

INW

Docíd:32989711 Page 164

10%1

int

312

GPO: 1975 0 - 569-920

---

## Page 165

OTIS G. PIKE, N. Y., CHAIRMAN

FOBERT N. GlAIMO, CONN.

ROBI CHICCLORY, ILL.

SAMES V. STANTON, OHIO

DAVID C. TREEN, LA.

RONALD V. DELLUMS, CALIS.

JAMES P. JOHNSON, COLO.

MORGAN F. MURPHY, ILL.

ROBERT W. KASTEN, JR-, WIS.

LES ASPIN, WIS.

DALE MILFORD, TEX.

PHILIP H. HAYES, IND.

Select Committee on Intelligence

WILLIAM LEMMAN, FLA.

M.S. House of Representatives

Washingtan, Đ.I. 20515

- .

A BOAL OVER, CONE RECTOR,

TELEPHONE: (202) 225-9751 *

TO:

W. Raymond Wannall/

(Please return any information to be supplied for the

record with your corrected transcript.)

HEARING: FBI Surveillance Activities

Congressman

Pike

- Presiding

Attached is a copy of your recent testimony be-

fore the House Select Committee on Intelligence.

Please re-

view and return with grammatical corrections entered directly

onto the transcript in red or in ink. (Do not change the

context of your testimony.

DO NOT retype the entire trans-.

cript.

If necessary,

an insertion should be stapled onto

he page front, clearly marked to identify point of insert.

Please return your corrected transcript in time

reach the Committee on

Dec. I, 1975

If we do not hear from you by that time, we

shall assume you have no corrections or changes; your testi-

mony, howeyer, must be returned to the Committee, and should

not be duplicated or dot the print 792 eping

312

your testimony will be sent to you when available. Let

know if you would like to have addition.

copies.

1562-116464-107

ADDRESS IO WHICH HEARINGS SHOULD BE SENT:

House Select Committee on Intelligence I MAR 5 1976

ADDRESS: Room B-316 RHOB

CITY:

Washington, D.C.

STATE:

.ZIP:

20515

3/2

Aw. 08480-Doeld-32989711-Page_165

---

## Page 166

CENTRAL INTELLIGENCE. AGENCY

WASHINGTON, D.C. 20505

9 February 1976

MEMORANDUM FOR: All Holder's of the House Select Committee ai

Drait Final Report

on inter.

Examina Rigisty

176-6124

Assoc. Dir..

•Dep. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Admin..

•Comp. Syst.

Ext. Affairs

Files & Com. _

Gen. Inv..

Ident..

1. A draft report of the House Select Committee, which was tran

to you on 20 January 1976, contains classified information and should l

classified TOP SECRET based on the highest level of classification of it

tion contained in it. Since much of the information contained in this re

was provided by the Executive Branch to the House Select Committee w

the understanding that it was to be treated as classified information, it

appropriate and required by Executive Order 11652 that the classification

of TOP SECRET be applied to the report.

Laboratory

Legal Coun.

Plan. & Eval.

Spec. Inv.

Training

Telephone Rm. -

Director Sec'y

2. It is therefore requested that all holders of this report affix a copy

of this memorandum to each copy of the House Select Committee report in

your possession to indicate its classification of TOP SECRET., together with

exemption wording and classitication number as shown below being applicable.

Classified by 000276

Exempt from GeneralEG

104

Declassification Schedule

62-116464=310

of E.O. 11652, exemption

schedule 5B (2). Declassification MAR. 8 1976

date impossible to determine.

Handier

General Counsel

+46 64-116468

PHE

ENERAL

16

vi

8 4 MAR 181976

NW 68486 Docld:32989711 Page 166

5

AMERI

1778-1976

---

## Page 167

TO

LAROM

SUBJECT:

OPTIONAL FORM NO. 10

5010-106

MAY 1962 EDITION

GSA GEN, REG. NO. 27

UNITED STATES GOVERNMENT

Memorandum

Mr. T. W. Leavitt

S. F. Phillips®

Ö

HOUSTUDY 75

2 - MI. J.

Mintz

(1 - Mr. P. V. Daly)

1 - Mr. T. W. Leavitt

1 - Mr. V. V. Kolombatovic

I DANT. F. J. Cassidy

3/1/76

1 - Mr. S. F. Phillips

1 - Mr. T. J. McNiff

Assoc. Dir. -

Dap. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Admin..

Comp. Syst.

Ext. Affairs

Files & Com. -

Gon. Inv. -

Ident. -

Inspoction -

Intoll. -

maLaboratoryn.com

Legal Coun. -

Plan. & Eval. -

Spec. Inv. -

Training -

Telophone Rm. -

Director Soc'y -

W.

On 1/20/76, this Bureau received from the

Department of Justice two copies of the House Select

Committee (HSC) Draft Final Report. (This turned out to

be the first version.) By letter 1/22/76, the Attorney

General was furnished a number of write-ups concerning

those parts of the Draft Final Report which contained

classified information or which contained egregious errors

relating to Bureau operations.

By memorandum 2/17/76, Legal Counsel Division

to Mr. Adams, captioned "Subcommittee on Government Infor-

mation and Individual Rights of the House Committee on

Government Operations," it was reported that Assistant

Attorney General Michael M. Uhlmann, Office of Legislative

Affairs, had instructed that various copies of the HSC

Draft Final Report in possession of the FBI should be

returned to the Central Intelligence Agency (CIA) 310

42.1164666-MAR 8

A canvass of akkit-sections and the Front Office

of the Intelligence Division determined that there are

two copies of the first version HSC Draft Final Report

in possession of the Bureau. These copies are presently

maintained by the Senstudy-Houstudy Project Unit, -

Room 4063, FBI Headquarters.

It is noted that by memorandum W. 0. Cregar to

Mr. W. R. Wannall, Captioned as above, dated 2/12/76,

copies of the second version of the HSC Draft Final Report,

then in the Bureau's possession were gathered and returned

by a representative of the Bureau Liaison Section to the

¿ of centraz Intelligence, CIA."

office of Mitchell Rogovin, Special Counsel to the Director.

62-116464

IJM; 1HB |hb

5 - 40

CONTINUED - OVER

IMES

(8)

3 A MAN 1 0 197

IW 66486 Docld:32989711 Page 16

---

## Page 168

Memorandum to Mr. I. W. Leavitt

Re: Houstudy 75

62-116464

RECOMMENDATION:

That a representative of the Liaison Section,

Intelligence Division, upon approval of this memorandum,

obtain copies of the Draft Final Report which is located

in the Senstudy-Houstudy Project Unit, Room 4063, for

the purpose of delivering same to Mr. Rogovin's office.

TIM

TULATE

In addition to above to cope Report

shouls ales be returned to

is office

Mr. Rogario,

pum

levered to.

- 2.

NW 68486 Docld:32989711 Page 168

---

## Page 169

OPTIONAL FORM NO, 10

5010-106

MAY 1962 EDITION

GSA GEN. REG. NO. 27

UNITED STATES GOVERNMENT

Memorandum

TO

: Mr.

J, B. Adams

FROM : Legal

Counse

UBJECT

HOUSTUDY

DATE: 2-24-76

Assoc. Dir. -.

Dep. AD Adm.' _

Dop. AD'Inv. -

Asst. Dir.:

Admin.

Comp. Syst. -

Ext. Affairs _

Filos & Com.

sen. Iny

Ident. JRH

Inspoctis

Intell.

Laborat

Legal'

Plan.

Spec.

Training

verme ire who made critical comments concerning the content

cliphant described the report as being a shoddy product and

stated it was again redrafted by Miller and Atkisson.

The

Bureau documents used in the preparation of

the report were

kept in staff members Atkisson's and Miller's desk drawers

initially and subsequently taken to the residence of John

Atkisson. The final report pertaining to the FBI by the Pike

Committee was prepared at the residence of Atkisson. Oliphanta

stated the report contained unsubstantiated allegations concerning

Bureau and allegations which were completely erroneous.

Regarding the leak of the Rike Committee report to

cir

he believed in January, "The New York Times" ran a front

page?story with a continuation of the story on page 14, the

date he could not recall, concerning the Pike Committee report.

Field told him concerning this article that he had telephonically

contacted somebody in the

"Times" and told them not to write

the other two articles which were to be part of a series because

the heat was on. Field also told Oliphant that he told the

"Times" don't worry about getting scooped because you have the

only copy of the report.

Additionally, Oliphant stated that

REC-100

1 - Mr. Wannall

1 - Mr. Mintz

1 - Mr. Cregar

1 - Mr. Daly

Firear.

PLACE

65-75958

CONTINUED

11.4

-301

HE MAR 44

1976

-OVER

NWV 68486-Döcläts2989711i' Page 169

---

## Page 170

Legal Counsel to Mr. Adams Memorandum

Re:

HOUSTUDY

offices and spent time with Field. He recalled asking

andrades Office Manager for the Pike Committee, what

Schorr was seeing Field about and Andrade dia not respond.

Oliphant indicated a general disgustin for the leak and

operations and procedures of this Committee and volunteered

it had been so discredited he could not see their recommendations

having any weight.

RECOMMENDATION:

For information.

p13

-

-

NW 68486 Docld:32989711

Page 170

---

## Page 171

TO

FROM

SUBJECT

OPTIONAL FORM NO. 10

3010-106

QẠY 1962 ERATION

"GSA GEN. REG.

NO. 27

UNITED STATES GOVERNMENT

Memorandum

Mr. W.

: W.

Gregar wit

HOUSTUDY 75

1 - Mr.

Adams

2 - Mr. J.

A.

Mintz

(1 - Mr. J. B. Hotis)

1 - Mr. W. R. Wannall

1 - Mr. W. O. Cregar

DATE:

2/12/76

1 - Mr. F. J. Cassidy

1

- Mr.

1

1.

J. McNiff

- Mr.

V.

v. Kolombatovi

Assoc

Dep

Dep.

Asst. D

Admins

Comp. Syst. _

Ext. Affairs —

Files & Com. -

Gen. Inv.

Ident.

Plan. & Eval. -

Spec. Inv.

Training

Lagol C

Telephone

Director gec'y -

On 1/24/76, this Bureau received from CIA a

Xeroxed copy of the second version of the "House Select

Committee - Draft Final Report" identified in the upper

right-hand corner by the numerical stamp "30." On that

same date Special Agent (SA) Richard H. Ross, Research

Section, reviewed the above version to determine which

of the FBI suggested revisions from a review of the

previously furnished first version of the draft report

had been incorporated by the House Select Committee (HSC)

into the new draft report. A copy of the results of this

review by SA Ross is attached to this memorandum. Upon

receipt of this report at FBIHQ and upon instructions

of Section Chief W. O. Cregar, two Xeroxed copies of this

report were made. One of these copies was delivered to

the Attorney General, which copy was in turn subsequently

delivered to the Director of the FBI. The second Xeroxed

copy was delivered to Mr. James Adams, FBI Deputy Associate

Director. The copy received from CIA was, on 1/25/76,

delivered to Mr. Rex Lee, Assistant Attorney General,

Civil Division.

On 1/26/76, Mr. Lee returned his copy of the

above draft report to SA Ross with the instructions that

the report be reviewed by the FBI and rebuttals prepared

concerning remaining inaccuracies contained in the report

relating to operations of the FBI. To expedite review of

this report, SA Thomas J. McNiff, Senstudy-Houstudy Project

Unit, arranged for five additional Xeroxed copies of this

Enclosure

REC 100 // 2-1110%1

30

MIES MAR

196

62-116464.r71

TJM: 1hb/hb

CONTINUED ~ OVER

(g.)

ENCLOSURE

68486 Docd 12789711 Page 171

---

## Page 172

*.

ors

*Filessed

ARCIANO

Memorandum to Mr.

Re:

Houstudy

62-116464

W. R. Wannall

report to be made on 1/26/76.

Rebuttal material requested

by Mr.

Lee was forwarded to

the Department by letter dated

1/28/76, captioned as above.

Distribution of the copy of the draft report

returned by Mr. Lee and the five Xeroxed copies made or

1/26/76 was as follows: three copies were maintained by

and

one copy was forwarded to SA Fred J. Cassidy, Research

Section, Intelligence Division.

On 2/9/16, Mr. Cregar received a call from the

office of Mr. Mitchell Rogovin, Special Counsel to the

Director, CIA, requesting that

Select Committee - Draft Final Reprepy of the "House

delivered to the

Bureau on 1/24/76 be returned to CIA and all copies

at the Bureau be destroyed. On 2/10/76, above copy of

the draft report was returned to the office of Mr. Rogovin

by Mr. Gregar.

On 2/11/76, Mr. Steven Blackhurst, Deputy Special

Counsel for Intelligence Coordination, Department of Justice,

advised that the bepartment, after consultation with CIA,

esired thas the xeroxed copies of the draft report be returnec

to Mr.

Rogovin's office rather than be destroyed.

Accordingly, our copies of the draft report maintained by

the Senstudy-Houstudy Project Unit, Legal Counsel Division,

Mr. Cassidy, the Deputy Associate Director and the Director

have been gathered and will be returned to Mr. Rogovin's office

at CIA.

RECOMMENDATION:

That a representative of Liaison Section, Intelligence

Division, upon approval of this memorandum, obtain copies of

Frojecat report which is located in the senstudy-Houstudy

Unit for the purpose of delivering same to Mr. Rogovin's

office.

WAWwas

Oper

per

-2-

NW 68486 Docld:32989711 Page 172

---

## Page 173

YOUSE SELECT COMMITTEE FINAL REPORT - 1/24/76

Page 314

po 34

Pe 58

D.83

p. 92

р. 95

p. 129

p. 131

P. 1.321

;P.132

D. 132

Line 16-23)

pe 133

p. 133

line. 15

P. 208

р. 209 л

p. 210

Classification matter was

nott changed

no change (n/c)

п/с

nts report eliminates the sentence and footnote

99, which was questioned by FBI: Comm. did

not insert our papposed change.

n/c

1/.c

1/c

n/c

n/c

n/ c

report spells Callahan's name progerly

n/c

n/c

n/c

report changed but our suggestion not used.

New version eliminates reference to SDs fugitives

being responsibile for initiation of investiça-

tion of Institue of Policy Satdies (IPS)

New version sav" sufficient connection between

IPS and SDS to open preliminary investigation of

IPS"

n/c

Adopted FBI change- changed SDS member to SDS

Leader

ENGLIsH: 62-116464-308

NW 68486 Docld:3298971y Page 1/9r,•

---

## Page 174

-2-

p. 211

footnote 390 - changed

(1) eliminates name of SA Robert W. Fewer

•12) elininates the symbol number of informant

Adopted our basis change, did not change date

of airtel which was in error.

p. 212

para. 1,

sent. 1,2

, 3

minor change

(1) changes " no information related to criminalzi

investigation " to " crininal conduct".

(2) added " eight typewritter ribbons" instead

of prior " a typewritter ribbon"

-para. 2

changed to "Part of vield was intimate saxual za

-gossip" had read " The yield nas almost entirely

Intimate sexual gossip".

footnote 282-383 - no change, stillrefers to erroneously dated

report.

po 213

n/c

•Do 214

p. 215

paral:

Line 1.

P.

215

Line s

changed( but did not adopt our change)

did read

"FBI unable to grove any illegal or

questionable relationshid between SWP and Fourth

Internation" new

revisoon eliminates questionable

change! bat not FBI

fecommendedd)

"FBI's failure to uncover emen one sitestionable

activity" changed to "'illegal activity". (This

Appears to adopt. our reasoning though)

changed- varies from FBI recommendation

Did read " Fourth INternational itself was a body

made up of IsoLated Marxist elements around

the World"

Nowneads

... "Fourth INternaional itself was a da

body made up of Marxist elements around the world

and entoved no structural power base in the Soviet

Jnion"

Of the revision; the first part incorporates FBI

suggestion but last part/ underlined) is all nex.

P.

215

1:13-16

changed ( minor and not FBI's recommended)

did read

• " the FBI found no evidence

of Federal

violation committed by an SDS member"

• Now reads " FBI fnund no evidence ax to support

prosecution of an SUP member"

NW 68486 Docld:32989711 Page 174

---

## Page 175

-3-

215

cont.)

.

216

1. 2

Po 218

This change picks up on FBI reasoning that there

st is a difference between evidence and prosecut-

ion.

changed- adopted FBI change

Did say"' the investiagtion... has be conducted za

largely under the aegis of an unprosecutable

statute" -- changed largely to partially

merely elimantes word" interaal"from phrase

internal sechrity" to make saatement consistent

with footnote.

D. 316

(was lssted

as p. 310)

footnote 528

Do

316

para

2

Po 314

para 1

po 314

footnoe 526

p. 316

P: 320

para

2,

Line

change adopted

Elimanates statement" He have trouble with defin-

ition of terms' infact eliminates whole footnote

replaces it with quote in text by Mr. Adams

is new material down to " Whereas the evidence..

Doesn't seem offensive or out of place at this

point.

no change except,

eliminates use of word " Unfortunately"

adopted FBI change

adds corrected statistics

changed, in that footnote eliminated completely

n/c

"li"

NW 68486 Docld:32989711 Page 175

---

## Page 176

TO

FROM

SUBJECT

OPTIONAL FORM NO, 10

5010-106

MAY 1962 EDITION

i GSA GENTIREG. NO. 27

LINITED STATES GOVERNMENT

Memorandum

: Mr.

W.

0.

HOUSTUDY 75

1 - MT. J.

Adams

2 - Mr. J.

A. Mintz

(1 - Mr. P. V. Daly)

1 - Mr. W. R. Wannall

1

- Mr. R. L. Shackelford

DATE:

2/18/76

1 - Mr. F. J. Cassidy

1 - Mr.

W. 0. Cregar

1 - Mr.

T. J. McNiff

Assoc. Dir. -

Dep. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Admin. -

Comp. Syst. -

Ext. Affairs -

Files & Com. _

Gen. Inv.-

Ident.

Inspection

Laboratory

Plon. & Eval. -

Spec. Inv.

Training

Legal Coun

Telophone Rm. -

Director Sec'y —

Enclosed for inclusion in the file for

"record

purposes is a copy of a transcript setting forth the

results of testimony offered by representatives of this

Bureau to members of the House Select Committee on

Intelligence Activities (HSC) at a hearing held 11/18/7

Subject matter of the hearing concerned itself with

"FBI Surveillance Activities."

Material contained in the transcript has been

reviewed at FBI Headquarters and responses to questions

raised during the hearing by HSC Members were sent to

the Department in memorandum form for referral to the

HSC by letters dated 11/28/75

and 12/2/75.

UNRECORDED COPY FILED

10d

On 2/22/76, Steven Blacks, Attent

-3,07

Special Counsel for

Intelligence Coordination, Department

of Justice, advised that, in view of the fact the HSC

has published in booklet form transcripts of hearings

necessary Engend a copy of attached transcript to the

Department

custom.

ENéloshe white House as has been the usuall

Enclosure

62-116464

INCT BEHIND FILE

1 - 67-

(Personnel File James B. Adams)

5-

1 - 6/- (Personnel File W. Raymond WannalI,

1 - 67- (Personnel File Robert L. Shackelford)

1 - 67-

(Personnel File David Ryan)

1 - 67-

(Personnel. File Hugh Mallet)

1 - 67-

(Personnel File Former SA Anthur Murtagh)

1 - 100--

(Robert Hardy)

1 - 100-

(Peter Camejo)

CONTINUED - OVER

1 - 100-

(Kathy Sledge)

HITF

---

## Page 177

Memorandum to Mr. W. R. Wannall

Re: Houstudy 75

62-116464

Copies of this memorandum are directed to the

files of Bureau personnel testifying at the hearing as

well as subjects of Bureau investigations who also

furnished testimony at the hearing on 11/18/75.

RECOMMENDATION:

That the attached transcript be made a matter

of record in Bureau files.

IM

- 2 -

NW 68486 Docld:32989711 Page 177

---

## Page 178

The Attorney General

DirectOr,

form

U. S. HOUSE SELECT COLAITTEE

ON INTELTIGENCE ACTIVITIES (HSC)

1

M

N. P. Callahan

1

M

J. B. Adams

2 - MIn J. A. Mintz

(1 - Mr. J. B. Hotis)

1 = MI. H. N. Bassett

(Attn: R. P. Keehan)

February 11, 1976

1 - Mr. W. R. Wannall

1 - Mr.

W. O. Cregar

1 - Mr.

T. J. McNiff

1 - Mr. R. H. Ash

1 - Mr. J. Cochran

Enclosed is the original of a menorandun reporting

the results of an interview of FBI Associate Director

Nicholas P. Gallahan by HSC Staff Members. This interview

concerned HSC inquiry into this Bureau's relationship vith

U. S. Recording Company.

A copy of this menorandum is enclosed for

forwarding to Mr. James A.. Wilderotter, Associate Counsel

to the President.

It should be noted that Mr. Callahan was released

from his confidentiality agreement for the purpose of the

interview, such release predating the actual interview.

Enclosures (2)

-62-116464

REC-65,

12-1164164-306

1 = The Deputy Attorney Geheidäl

Attention:

Michael E. Shaheen, J. 2o FE: 26 :75

Special Counsel for

Intelligence Coordination

Assoe. Dir. 1 - 67- (Personnel File Associate Director Nicholas P. Callahan)

Dep. AD Adm. -

Dep. AD Inv. —

Asst. Dir.:

TJM: 1hb lhb

Admin.

Comp. Syst. -

(15)

Ext. Affairs

Files & Com. -

Gen. Inv. -

s'il

Ident.

Inspection

SELONE

Intell. -

Laboratory

Legal Coun.

Plan. & Eval.

Spec. Inv. _

Training

Telephone Rm. -

pua

MAIL ROOM L

N C Abda 3287811 Page 178

TELETYPE UNIT W

GPO : 1975 O - 594-120

---

## Page 179

February 4, 1976

INTERVIEW OF ASSOCIATE DIRECTOR NICHOLAS P. CALLAHAN

BY TIMOTHY OLIFHANT AND RICHARD VERMEIRE OF THE HOUSE

COMMITTEL ON INTELLIGENCE CONCERNNG U. S. RECORDING

COMPANY

On December 17, 1975, I was interviewed by Timothy Oliphant and

Richard Vermeire, Investigators from captioned Committee.

It had been

indicated to me that the purpose of this interview was to inquire into my

participation at poker games at the Blue Ridge Club sponsored by Joe Tait,

Fresident of U. S. Recording Company.

Mr. Oliphant stated the purpose of the interview was as indicated above

and also asked if they could inquire into my knowledge and/or participation in

connection with the purchase of equipment from the U. S. Recording Company.

Upon inquiry, Mir. Oliphant was informed that I had participated in a

poker party at the Blue Ridge Club on two or three occasions but not on any

occasion within the last six or so years. He was also informed that Vr. Mohr

was present on these occasions and served as a collector for the fee for the cost

of lodging and food on the occasions I attended. He was informed that Mr. Fait

and Mr. Oberdick were provably present; however, no ousiness oi any and

was discussed, it being purely a social event with the primary purpose ci geting

away from shop and shop-talk. He was further advised on the occasions that I

was in attendance former Assistant Director Donald Faroons was the host member

of the Blue Fidge Club.

In respoase to an inquiry as to why I had not attended

in more recent years, he was informed that I did not do so after my youngest

son married and left home as I did not care to leave the Virs. alone for the

Assoc. Dir.

night in our residence.

Dep. AD Adm. -

Dep. AD Inv. _

Asst. Dir.:

M*. Oliphant also inquired as to any other contacts I may have had

Admin, with Messrs. Tait and Oberdick and I informed him that there was no close social

Ex. farelationship such as visiting back and forth in one another's residences; however,

Files & cof had encountered them at weddings of the children of theirs and/or mutual friends,

lan. In but on these occasions no business was discussed. I further pointed out that

Inspection -

Intell. —

Laboratory -

Plan. & Eval. -

WCL wmj

(5):

Spoc. Inv. -

4111

3/06

Training

Legal Coun.

100515

Telephone Rm. -

Director Sec'y — MAIL ROOM I

TELETYPE UNIT L

GPO: 1975 0 - 569-920

NW 68486 Docld:32989711 Page 179

---

## Page 180

si.

oo..

Interview of Associato Director Nicholas P. Callahan

by Timothy Oliphant and Richard Vermeire of the House

Committee on intelligence Concerning U. S. Recording

Company

Wir. Tait had a summer place on the Delaware Coast in the area where I likewise

had one and on a few occasions he has ridden by to say hello but has not visited

cxicnsively nor was any business discussed auring there visits.

Mesors, Oliphant and Vermeiro inquired as to the origin of the

relationship with U. S. Eccording Company and at what level was the price for

the equipment purchased from U. S. Eccording determined to be satisfactory.

I informed them that my rocollection of the relationship with the U. S. Recording

Company dated back to the late 30's or carly 40's and the procedure of purchasing

confidential typos of equipment was an ongoing procedure at the time i became in-

volved in the Administrative Division. I stated there was no fixed procedure for

ascertaining the precise price or any markup relative thereto inasmuch as the

nature of the items purchased was such that primary reliance was left to the

technicians of our Laboratory who had shopped the industry for the equipment

needed and that any detailed discussion regarding price would normally go through

the procurement officer of the Administrative Division and the technicians in the

Laboratory to see that a reasonable price was being raid but not an exorbitant or

unreasonable price. It was pointed out that procurement procedures in effect

would require any questionable price to be taken up with higher authority either

in the Laboratory or the Administrative Division to adjudicate such a question and

to my recollection there had been no occasions when this had occurred,

Vr, Vermeire inquired as to Vir. Nohr's relationship with the Laboratory

in connection with his position as Assistant to the Director and I pointed out that

there were times when the Laboratory was one of the Divisions under his juris-

diction and i was sure that the organizational charts they had would seem to

indicate this.

They inquired if I was aware of the fact that the Blue Ridge Club had

suffered a fire and I advised them I had read it in the newspaper. They advised

they first became aware of it on a newscast while on their way to visit the club.

Mix. Vermeire inquired as to whether there was any inquiry being made

into the Eureau's dealings with the U. &, Recording Company and he was informed

Director Kelley had instructed an inquiry to be made into the matter right after

the testimony of Mir. Kaiser before the Committee for which they work. Upon

- 2 -

NW 68486 Docld:32989711 Page 180

---

## Page 181

=

Interview of Associate Director Nicholas P. Callahan

by Timothy Oliphant and Richard Vermeire of the House

Committee on Intelligence Concerning U,S. Recording

Company

inquiry whether there was any information available as to developments to date

with regard to this matter, thay were informed since this was an ongoing inquiry

it would be inappropriate at this time to discuss such with them. When asked

when the inquiry would be completed, they were informed it would be concluded

very soon as the Director was just as anxious as the Committee was to have the

tull picture with regard to this situation. During this discussion Vermeira

alluded as to the volume of the purchases made in 1971 which information had

been previcusly furniched to the Committee and it was pointed out that these

purchases resulted from the break-in of our Resident Agency in Media,

Pennsylvania, and the use of U.s. Hecording was two-fold: one, to preserve

the confidentiality of the type of equipment being installed throughout the

country in our Resident Agencies and two, to obtain expedite delivery in con-

nection with such equipment.

I also advised Milessrs. Oliphant and Vermeire that purchases other

than those of a confidential nature were made from U.S, Recording Company

of items on which he was the supplier under the GSA general supply schedule

and where purchases on a competitive bid basis were made by soliciting bids

for items of equipment under this latter procedure he being on the bidder's

mailing list along with other manufacturers and suppliers. I pointed out that

procurement of all equipment adheres to the Federal Procurement Regulations

prescribed by the General Servicos Administration,

- 3 =

NW 68486 Docld:32989711 Page 181

---

## Page 182

0 145 30

NOTE:

SEE INSTRUCTIONS ON REVERSE

BEFORE COMPLETING.

CLASSIFY AS APPROPRIATE

TO:

Intelligence Community Staff

ATTN: Central Index

FROM:

FBI

SUBJECT: Abstract of Information Provided to Select Committees

1. HOW

PROVIDED (check

appropriate term. If a document was made available

for

review

but not transmitted, so note.)

DOCUMENT

BRIEFING

& INTERVIEW!

TESTIMONY

OTHER

2. DATE PROVIDED

2-11-76

3. TO WHOM PROVIDED (check appropriate term; add specific names if appropriate)

SSC

The Attorney General with a copy for forwarding to the

White House.

4.

| HSC

IDENTIFICATION (provide

descriptive data for documents; dive name or identification number of briefer,

interviewee, testifier and subject)

Memorandum reporting the results of an interview by HSC Staff

Members of Associate Director Nicholas P. Callahan on 12/17/75.

5. IN RESPONSE TO (list

wise

state

Everbal sequese

and item number

if in response

of (name),

initiative,

subpoena,

•formal request, other-

S. CLASSIFICATION O

INFORMATION (ente

Codewosa TS or

NA

U

7. KEY WORDs (enter the appropriate key words from the list provided separately; if key words not listed are

underline

for emphasis)

Information Mandling

Operating Procedures

Activities, questionable

8. SUMMARY (see reverse side before completing this item)

Intervieved concerning knowledge and/or participation in connection

with the purchase of equipment from U.S. Recording Co. and partici-

pation at poker games at the Blue Ridge Club sponsored by

Joseph Tait, President of U. S. Recording Co.

62-116395

AJD: ds

(4)

ORIGINAL VIA LIAISON TO CENTRAL COMMUNITY INDEX

• IN CONNECTION WITH SENSTUDY 75.

379| (6-75)

NW 68486 Docld:32989711 Page 182

CREAT AS YELLOW

CLASSIFY AS APPROPRIATE

Ta-p:1--30%

---

## Page 183

INSTRUCTIONS

• Type or print clearly in ink.

Indicate classification of the abstract top and bottom.

:

Date the abstract ind put on any internal control humbers required.

"FROM" entry should clearly identify the organization providing the

information.

• If additions (as when a copy of document sent to SSC is later sent to

HSC) or changes to a previously submitted form are necessary, submit a

copy of the original abstract, with the change indicated.

SPECIFIC ITEM NO. 8. SUMMARY - enter brief narrative statement describing

substance of information and showing relationship to Intelligence Community

matters if appropriate. Any feedback or evidence of investigatory interests

should be noted. Commitments made to supply additional information should be

noted. Additionally, certain administrative information may be entered here,

e.g., restrictions on review of a document, if document was paraphrased, whether

interviewee is current or former employee, etc. If actual document or transcript

is provided, that fact should be noted and no summary is required. Additional

pages may be attached if necessary.

NW 68486 Docid: 32989711 Page 183

---

## Page 184

TO

OPTIONAL FORM NO. 10

5010-106

HA102 E019A

GSA GEN. REG. NO. 27

UNITED STATES GOVERNMENT

Memorandum

:

Mr. W. R. Wannall UPW

FROM

: W. 0. Cregar

1

1

- Mr. J. B. Adams

- Mr.

J.

A. Mintz

1 - Mr. E. W. Walsh

AIT: Mr.

E. J. Landreville

DATE:

2/12/76

1

1

- Mr. W. R. Wannall

- Mr. F. J. Cassidy

1 - Mr.

W. O. Cregar

1 - Mr. T. J. McNiff

SUBJECT:

HOUSTUDY

Assoc. D'b:

Dep. ADiAdm..

Dep. AD Ins

Asst. Dir.: f

Admin.

Comp. Syst.

Ext. Affairs

Files & Com.

Spection

Intell..

Laboratory

Plan. & Eval. -

Spec. Inv. -

Training

Legal Coun.

Telephone Rm. -

Director Sec'y -

As you are aware the House Select Committee on

Intelligence Activities (HSC) has since approximately 1/15

been conducting an inquiry into the intelligence operations

of this Bureau. In connection with this inquiry-arrangements

had been perfected with the Headquarters Building Security

unit whereby HSC Staff members were able tö enter FBI Head-

quarters building for the purpose of conferring with Bureau

representatives and to review previously approved specified

Bureau documents.

This is to advise that the . mandate of the"HSC

officially expired at midnight 2/11/76. "Accordingly, individual's

connected with FBI Headquarters building security should be

advised that arrangements previously in effect for HSC Staff

members to enter FBI Headquarters building are no longer

operative. Should any individual attempt to gain access to

Headquarters identifying himself as a representative of the

HSC,

security personnel should request the individual to wait

and

immediately advise the C Project unit on extention 4636.

NOTE: The above instructions DO NOT apply to approved

representatives of the Senate Select Committee.

RECOMMENDATION:

,EX-116

That appropriate individuals responsible for Head-

quarters building security be advised of discontinuance of

arrangements permitting building access to previously approved

representatives of the now defunct HSC.

CD FEB L9 1976

ADAM

62-116464

TJM: adn adin

(8)

NW 68486

8 4 FEB 27 19759711 Page 184

Docld::

---

## Page 185

The Attorney General

Director,

FBI

U. S. HOUSE SELECT CONMITTEE

ON INTELLIGEICE ACTIVITTES (ISC)

1-

My

B. Adams

2 - Mr.

J. A. Mintz

(1 - Mr. J. B. Hotis)

1. - Mr. H. N. Bassett

(Attn: R. P. Keehan)

February 9, 1976

1 - Mr. J. Cochran

(Route Through For Review)

1 - Mr. C. T. Allen

1

- Mr. W. R. Wannall

1 - Mr. W. O. Cregar

1 - Mx. T. J. McNiff

Enclosed is the original of a menorandum reporting

the results of an interview of Special Agent Carroll I. Allen,

a current employee of this Bureau's Laboratory Division,

by HSC Staff Members. This interview concerned HSC inquiry

into this Bureau's relationship with U. S. Recording CompanyA

A copy of this memorandun is enclosed for forwarding

to fir. James A. Wilderotter, Associate Counsel to the

President.

It should be noted that Special Agent Allen vas

released from his confidentiality agreement for the purpose

of the

intervier, such release predating the actual intervier.

Inclosures (2)

62-116464

ST 112 REC 64)

itiid.,304

кістко

=I - The Deputy Attorney General

Ew FEB 20 1976

Attention:

Michael E. Shaheen, Jr.

Special Counsel for

Intelligence Coordination

Assoc. Dir. - 1 - 67 - (Personnel File SA Carroll I. Allen)

Dep. AD Inv. -

Asst. Dir.:

Admin. -

TJM: 1hb Ihb

Comp. Syst. -

(14)

Ext. Affairs

Files & Com.

Gen. Inv.

Ident.

1r:

Inspection

Intell.

Laboratory

Legal Coun. .

Plan. & Eval. _

Spec. Inv. -

Training -

Telephone Rm. -

Director Sec'y -

MAIL ROOM

488 B

2t1ã:

107

89711 Page 185

TELETYPE UNIT E

8 см..

TIM

T. J. He n

4063

GPO: 1975 0 - 594-120

---

## Page 186

1' - Mr. Bassett

1 - Mr. Mintz

HOUSE SELECE COLMITTEE ON

INTELIICENCE ACIIVITIES;

U.S. RECORDING COMPAITY

February 9, 1976

1 - Mr. Walsh

1 - Mr. Wannall

1 - Mr. Cochran

1 - Mr. Harward

1 - Mr. Allen

On 1/12/76, S4 Carroll I. Allen, Radio Ingineering

Section, FBI Laboratory, appearca, as requested, at the

offices

of captioned cormittee,

SA ALLen HaS CaKen LO 2

comittee hearing room and questioned by stact nonbers

Richard Vermiere and In aliphant nho arministered the

oath.

The proceedings were taken down by a male stenog-

rapher., SA Allen was not advised of his rights.

SA Allen was asked about and provided infomation

regarding his identity, euployment, position, job function,

residence and education.

The questioning then turned to

SA Allen's Inowledge of U.S. Recording Company (USRG) , its

ormer, Er.

Joseph. Jait, and the conpany's relationship

the FBI.

They were advised that on occasion the

FBI used USRG as a confidential purchase source in t

proper effort to prevent hostile interests froz Inowing

the types and amounts of cortain technical surveillance

equipuent purchased by tha TBI.

In rosponse to questions

they worn advised that SA Allen had net Vc. Tait but did

not know hin socially, that while it was assuned Ir. Tait

nade a prosit to componsate him for his services, the

anount of profit was unknown and that sA Allon had no

Inowledge of any inproper action on the part of kir. Tait

or any bureau coployee in connection with these purchases,

& bizer description of the purchase procedures regarding

stoc: equipment and developmental contracts vas giver.

Spocific questions wore asked about shat conpanies manu-

Assoc. Dir. -

factured equipment purchased through USRE and Gohu

Dep. AD Adm. -

Electronics and Pelco, both of California, were named as

Dep. AD Inv. -

Asst. Dir.:

exangles.

Admin.

Comp. Syst. -

Ext. Affairs —

Files & Com. _

Gen. Inv. =

ident. _

Inspection.

Intell. -

Laboratory

Plon. & Eval. -

Spoc, Inv. .

Training

Legal Coun.

Telephone Rm. -

SA Allen indicated that he met Martin I, Kaiser,

know of his company, but had only purchased one piece or

equippent fron the company.

SA Allen had lioard of the

Fargo corpony but had no knowledge of a in. Uberdici

(phonetiC)

CTA

1/!:

BAH

(10)

SURG

woll

Director Sac'y -

MAIL ROOM |

TELETYPE UNN

rem

NW 68486 Docld:32989711 Page 186

GPO 954-546

---

## Page 187

•, Bi

-

SA Allca indicated he Iner of It. John P, kohz,

the forcer Bureau official, and

In IOSpONSE tO DECILJE

questions, that linited work was done at tr. Mol's

hone by laboratory personnel to avoid giving outszters

an opportmity to install audio surveillance equinment

in is. lohr's hone.

In response to specisic questions,

SA Alien advised that the some typo work vas done for

Nix. Hoovex and Ix. Tolson when felt accessary out os

accurity considcrations.

-2-

NW 68486 Docld:32989711 Page 187

---

## Page 188

., =

SOTE: SEE INSTRUCTIONS ON REVERSE

BEFORE COMPLETING.

CLASSIFY AS APPROPRIATE

TO:

Intelligence Community Staff

ATTN: Central Index

FROM:

FBI

SUBJECT: Abstract of Information Provided to Select Committees

1. HOW PROVIDED (check appropriate

for review 'but

term.

Is a document was made available

not transmitted, so

DOCUMENT

BRIEFING X INTERVIEW

I TESTIMONY

OTHER

2. DATE PROVIDED

2/9/76

3. ТО WHOM PROVIDED (check appropriate term; add specific names if appropriate)

SSC

The Attorney General with a copy for forwarding to

the White House.

I HSC

4. IDENTIFICATION (provide descriptive data

for documents; dive name or identification number of briefer,

interviewee, testifier and subject)

Memorandum reporting the results of an interview by HSC Staff

Members of Special Agent Carroll I. Allen.

5. Wi REsPONs verbal request on (nam

of (name),

mer alive, response formal request, other-

initiative,

N/A

6. CLAORIATION ON DET

Codew Sa TS or

U

7. KEy order enter the parasiate key words from

the list provided separately; if key words not listed are

emphasis)

Information Handling

Operating Procedures

8. SUMMARY (see reverse side before completinê this item)

Interviewed concerning his knowledge of U., S. Recording

Company, its owner Joseph Tait and the company's relationship

with the FBI.

62-116464

AJD: 1hb

(4)

379| (6-751

NW 68486 Docld:32989711 Page 188

ORIGINAL. VIA LIAISON TO CENTRAL COMMUNITY INDEX

IN CONNECTION WITH HOUSTUDY 75.

TREAT AS YELLON

CLASSIFY

63-14

ENCLOSURE,

---

## Page 189

INSTRUCTIONS

• Type or print clearly in ink.

• Indicate classification of the abstract top and bottom.

• Date the abstract and put on any, internal control numbers required.

"FROM" entry should clearly identify the organization providing the

information.

If additions (as when a copy of document sent to SSC is later sent to

HSC) or changes to a previously submitted form are necessary, submit a

copy of the original abstract, with the change indicated.

SPECIFIC 'TTEM "NO. 8. SUMMARY - enter brief narrative statement describing

substance of information and showing relationship to Intelligence Community

matters if appropriate. Any feedback or evidence of investigatory interests

should be noted.

Commitments made to supply additional information should be

noted. Additionally, certain administrative information may be entered here,

e.g., restrictions on review of a document, if document was paraphrased, whether

interviewèe is current or former employee, etc. If actual document or transcript

is provided, that fact should be noted and no summary is required.

Additional

pages may be attached if necessary.

NW 68486 Docld:32989711 Page 189

---

## Page 190

1 - ME.

J. B. Adams

• 1 - Mr.

W.

R. Wannall

1

- Mr.

1

w. o. Cregar

- Mr. F. J. Cassidy

1 - Mr. R. H. Rose

February 6, 1976

The Attorney General.

Director, FBI

U.S.

HOUSE SELECT CONTE

ON IUTELLIGENCE ACTIVITIES (ESC)

This is to confirm the conversation between

Ir. Michael E. Shaheon, Jr., Special Counscl for Intelligence

Coordination, and Supervisor Richard II. Ross, of this Bureau,

on January 28, 1976, concerning a request from Captain John

Mathney, National security Council Staff,

White House.

He

had inquired if the Bureau had any objection to the fur

nishing to minority members of the HSC, eighi urite-ups

prepared by the Bureau concerning errors in the Cormittee's

Draft Final Report.

You had approved furnishing the urite

ups to the Thite House on January 26, 1976, and received

copies of them as enclosures to my memorandum to you dated

January 28, 1976, captioned as above. Mathney also invited

a Bureau representative to be present ai the White House

to asside in the drafting of a statenent concerning che

report.

The statement was being prepared by llathney and

representatives fron Department of State, Central Intelligence

Ageney, and Defense Intelligence Agency.

Iit. Shaheen was queried zegarding the requests

and informed

• that the Bureau had no, objection to the fur-

nishing of the vrite-ups, but did not desire to have a

representative present at the drafting session.

He was

also asked if a Departrental, representative vas desired

present at the drafting sescion.

Mr. Shaheen advised that

it would be entirely aypropriate for the White House to

Deli

furnish the write-ups to the minority nembers and that he

Assoc. Dir. _

saw no need for a Departmental representative at the drafting

Dep. AD Adm. -

session.

Mathney was subsequently contacted and

advised

Dep. AD Inv. -

Asst. Dir.:

of the Bureau's and Department's decisions.

Admin. -

Comp. Syst. -

62-116464

, REC-100

Ext. Affairs

Files & Com. _

Gen. Inv. -

_ 1 - The Deputy Attorney General

1& FEB 18 1976

Ident.

Attention:

Mx. Michael E. Shaheen, Jr.

Inspection

Intell. ~

Special Counsel for

Laboratory

Intelligence Coordination

Plon. & Eval. -

CAM

Spec. Inv. -

Training

Legal Coun. -

RER: Jmn J

Telephone Rm. -

(9)

SEE NOTE PAGE 2

Director Sec'y -

MAIL ROOM L

TELETYPE UNIT E

GPO: 1975 0 - 569-920

Дv48486 BDBald:pzpg9711 Page 190

---

## Page 191

The Attorney General

NOTE:

Memorandum, Cassidy to Wannall, 1/29/76, prepared by

RHR: jmn, captioned as above, sets out circumstances of contact

from Captain Mathney and subsequent conversation with Mr. Shaheen,

based on Messrs. Wannall's and Adams' discussion of this mat-

ter. Mr. Adams has instructed a confirmation letter be sent.

to the Attorney General.

NW 68486 Docld:32989711 Page 191

---

## Page 192

i'я,

79.

OPTIONAL FORM NO. 10

5010-106

MÃY 1962 EDITION

GSA GEN, REG. NO. 27

UNITED STATES GOVERNMENT

Memorandum

TO

Mr. J.

Adams

ROM

: Legal

Counse.

1-Mr. Adams-Enc.

1-Mr. Cleveland-Enc.

1-Mr. Wannall-Enc.

DATE: January 30, 1976

1-Mr. Cregar-Enc.

1-Mr. Mintz-Enc.

1-Mr. Hotis-Enc.

1-Mr. Daly-Enc.

1-Mr. Stassinos-Enc.

Assoc. Dir.

Dop. AD

Dap.

Asst. Di

Admin.

Comp. Syst. -

Ext. Affairs -

Filos & Com. _

Gen. inv. -

Ident.

thon: Ton

Labore

SUBJECT: HOUSTUDY

Plan. &

PRech at

Training:

Tolephono Rmil

Reference is made to Departmental memorandum re- Director Sec'y—

ceived by Legal Counsel Division on January 13, 1976, from

Michael E. Shaheen, JI., Special Counsel for Intelligence

Coordination, to Antonin Scalia, Assistant Attorney General,

Office of Legal Counsel, captioned "HSC Request for Opinion

as to Legality of FBI Proprietaries." The House Select

Committee informally requested that the Department give its

"its

opinion whether the FBI's creation of corporations

proprietaries contravenes the prohibitions set out in

Title 31, United States Code, Section 869.

Attached is a letter dated January 23, 1976,

from Steven R. Blackhurst, Assistant Special Counsel

for

Intelligence Coordination, Office of the Deputy Attorney

General, Department of Justice, to Mr. A. Searle Field,

Staff Director, Select Committee on Intelligence, United

States. House of Representatives, responding to the select

Committee's inquiries concerning the

establishment and use

of proprietaries by the FBI.:

The Department's response

points out that the legislative history of the provisions of

Section 869 makes it clear that Congress was directing

it-

¡self to the practice of incorporating agencies engaged

lovertly in

purpose of governmental functions, and

that the corporate

proprietaries is not to perform a governmental

function but to carry on a commercial activity. Thus,

proprietaries are not established for the purpose of acting

as an agency or instrumentality of the United States within

the meaning of Section 869(a).

The Department further con-

(tends that Section 869(b) applies solely to "wholly owned"

Government corporations, and that term is defined by enu-

meration in Title 31, United States Code, Section 846, and

no FBI proprietaries are inflyded in that enumeration 3 02

62-116464-

genclosure

CONTINUED. OVER

ENCLOSUAL

JOS :mcz (10)

Ca FEB 11 1976

8 4 MAR 3

NW 68486 Docld:32989711 Page 192

---

## Page 193

Legal Counsel to Adams Memo

Re: HOUSTUDY

Section 869 states the following: "No corporation

shall be created, organized, or acquired on or after

December 6, 1945, by any officer or agency of the Federal

Government of by any Government corporation for the purpose

of acting as an agency or instrumentality of the United

States, except by Act of congress or pursuant to an Act of

Congress specifically authorizing such action.

"No wholly owned Government corporation created

by or under the laws of any state, lerritory, or possession

owned Goverment

of the United States or any political subdivision thereof,

or under the laws of the District of Columbia, shall con-

tinue after June 30, 1948, as an agency or instrumentality

of the United States, and no funds of, or obtained from,

the United States of any agency thereof, including corpora-

tions,

shall be invested in or employed by any such corpora-

tion after that date, except for purposes of liquidation.

authority of every such corporation

shall take the necessary steps to institute dissolution

or liquidation proceedings on or before that date:

Provided, That prior thereto any such corporation may be

reincorporated by Act of Congress for such purposes and

term of existence and with such powers, privileges, and

duties as authorized by such Act, including the power to

take over the

assets and assume the liabilities of its re-

spective predecessor corporation.

(Dec. 6, 1945, с.557,

Title III, Section 304, 59 Stat. 602.) "

The Act states that its purpose is to solve the

problems of financial control and to provide annual scru-

tiny and current financial control by the Congress of the

financial transactions and operations of Government corpora-

tions through the regular fiscal agencies of the Government.

It prohibits the creation of any Government corporation to

act as an agency or instrumentality of the United States

except by or pursuant to action of Congress.

(Act to indicate that congress considered the formation of

There is nothing in the legislative history of the

corporations as proprietaries for undercover purposes.

(H. R. Rep. No. 856, 79th Cong. Ist Session, 1945; S.

Rep.

No. 694, 79th Cong. Ist Session, 1945; 91 Cong. Rec. 8546,

10322 dated 1945.

CONTINUED - OVER

NW 68486 Docld:32989711 Page 193

(2.)

---

## Page 194

Legal Counsel to Adams Memo

Re:

HOUSTUDY

The legislative history of the Act heavily em-

phasizes budgetary control of Government corporations. When

the Act was being considered there were estimated to be about

100 separate Government corporations with thousands of

employees and controlling billions of dollars of Government

funds •

The corporations engaged in a variety of businesses,

including insurance and finance, as well as Government opera-

tions such as subsidies and flood control. With the increase

and importance of Government corporations, there was increased

recognition by both the legislative and executive branches

oh the

that some means be found to coordinate the financial programs

of the corporations with that of the Government as a whole.

FBI

proprietaries are under the budgetary control

lof the FBI and do not present the fiscal or budgetary problems

envisioned by the Act.

The FBI budget, in turn, is prepared

in accordance with Office of Management and Budget Circular

No. A-1l and is subject to extensive review and approval by

the Department of Justice, the Office of Management and

Budget, the House Appropriations Subcommittee, and the

Senate Appropriations Subcommittee. Therefore, the intent

of the Act is being carried out.

Section 869 prohibits creation of a corporation

"for purposes of acting as an

agency or instrumentality of

the United States Government."

A proprietary does not hold

itself out to the public to be an agency or instrumentality

of the Government, and therefore not in conflict with the

statute. It is an investigative method used by the FBI in

furtherance of its duly authorized and assigned task of

investigating. violations of the laws of the united states.

IA proprietary is not a profit-oriented corporation.

Attached Departmental letter of January 23, 1976,

noted above, cites United States v. MacDaniel, ? Peters

(32. U.S.) 1; 13-14 (1883), for the proposition that execu

tive agencies have reasonable latitude for accomplishing

their prescribed responsibilities and do not need specific

statutory authorization for each act done. In that case, the

NW 68486 Docld:32989711 Page 194

(3.)

---

## Page 195

Legal Counsel to Adams Memo

Re :

HOUSTUDY

court said, "A practical knowledge of the actions of any one

great departments of the

government, must convince

every person, that the head of a

department, in the distri-

butions of its duties and responsibilities,

is often compelled

to exercise his discretion.

He is limited in the exercise of

his powers by the law; but it does not follow that he must

show statutory provision for everything he does. No govern-

ment could be administered on such principles.

To attempt

to regulate, by law, the minute movements of every part of

the complicated machinery of government, would evince a most

unpardonable ignorance on the subject.

lines of its movements may be marked out, and limitation

imposed on the exercise of its powers, there are numberless

things which must be done, that can neither be anticipated nor

defined and

which are essential to the proper action of

. government."

It is concluded that Title 31, United States Code,

Section 869, should not be interpreted as applying to FBI

type of situation.

RECOMMENDATION:

For information.

13H03

food

shive

L NW 68486 Docld:32989711 Page 195

(4.)

---

## Page 196

OFFICE OF THE DEPUTY. ATTORNEY GENERAL

WASHINGTON, D.G. 20530

JAN 2 = 1976

Mr. A. Searle Field

Staff Director

Select Committee on Intelligence

0 .

S. Housa of Representatives

Washington, D. C. 20515

Dear Mr. Field:

This responds to your letter of January 21, 1976 and

your prior informal inquiries concerning the application of.

the Government Corporation Control Act, 31 U:S.C: $841

et seg.,

to the establishment and use of so-called proprietary

corporations by the Federal Bureau of Investigation. in

particular your informal. inquiries have directed our atten-

•tion to 31 U.S.C: $869.

31 U.S. C. 8869(a.) provides:

No corporation shall be created, organized

or acquired on or alter December 5, 1945, by

any officer or agency of the Federal Government

or by any. Government corporation lor the purpose

of acting as an agency or instrumentality of the

United States, except by an Act of Congress or

pursuant to an act of Congress specifically au-

thorizing such action.

The legislative history of this provision makes it

clear: that Congress was directing. itself to

the practice,

as exemplified by the Reconstruction Finance Corporation, of

incorporating agencies engaged overtly in governental

functions,

such as disaster reliaf, providing Icans for

economic recovery, facilitating war production and the

like.

The corporate purpose or proprietaries is not to

perform a govemmental function but to carry on a commer-

"for the purpose of

of the United States" within the meaning of §869(a). Any

other interpretation would make the quoted language mere

surplusage.

NW 68486 Docld:32989711 Page 196

67116464-302

---

## Page 197

31 U.S.C. §869 (b) by its terms applies solely to•

"wholly owned government corporationis]:

That term is.

defined by enumeration in 31 U.S.C. $846 and no F.B.I.

proprietaries are included in that enumeration.

• Your letter of January 21 apparently raises a question

concerning the source of the F.B.I.'s authority to use

proprietary corporations.

• The Attorney General. is au-

thorized and required to investigate and prosecute crimes

against the United States.

28 U.S.C. §533. The Attorney

General has charged the F.B.I. with the responsibility,

inter alia, to "investigare violations of the laws of the

United States • •

28 C.F.R. S0.85. Similarly, all

recent appropriations for the F.B.I: have contained language

similar to that in the current act which appropriates funds

to the F.B.I. "[flor expenses necessary. for the detection -

and prosecution of crines against the United States.

Pub. L. 94-121 tit. II: 39 Stat. 611, 619. The use of

proprietaries

is merely one of the many investigative

techniques used by the F.B.I. in the discharge of its re-

sponsibilities.

It has long been established that execu-

tive agencies have reasonable latitude for accomplishing

their prescribed responsibilities and do not need specific

statutory authorization for each act done.

States v. MacDandel: 7 Peters (32 U.S.) 1, 13-14 18325.

United

In re NeagLe, 39 Fea. 833, 551 (Cir. Ct. N.D. Cal, 1009).

Sincerely,

steven. K. Biethurst

Steven K. Blackhurst

Assistant Special Counsel

for Intelligence Coordination

-

2

NW 68486 Docld:32989711 Page 197

---

## Page 198

#: 4+77-79

JAN 9 1976

TO: Antonin Scalla

Assistant Attorney General

Office of Legal Counsel

FROM:

Michael E. Shaheen, Jr.

Special Counsel for Intelligence

Coordination

SUBJECT:

so plant for Opinion as to Legality of FBI

The House Select Committee has requested in-

formally that the Department give its opinion as to

whether the FBI's creation of corporations as pro-

prietaries contravenes the prohibitions set out in

31 U.S.C. 869.

Attached is a very rough draft of 2

HSC Report which addresses this question. (This draft

was written by a non-lawyer staff member of the RSC

asked that we not attribute it to him ar the HSC).

We would appreciate your preparing an answer to

the HSC's question.

• John Mintz, Assistant Director

of the FBI is famillar with this natter and may be able

to provide additional useful information soncerning it.

701 1? 159401910

cc:

John Hintz, FBI

NW 68486 Docld:32989711 Page 198

---

## Page 199

major issue ra

by the committee at th

ime our in-

vestigation was

started was addressed to each of the military

services. This issue was "what is your justification for

establishing a proprietary, normally a corporation, as a

front for carrying out an intelligence mission?"

The committee raised this question because section 869 of Title

31, U.S. Code (1970) states in part as follows:

in T'7

fi:"

• So Ex:

-de destings.

NW 68486 Docld:32989711

Page 199

---

## Page 200

- 5 -

"(a) No corporation shall be created, organized

or acquired on or after December 6, 1945, by any

officer or agency of the Federal Government or by

any Government corporation for the purpos of acting

as an agency or instrumentality of the United

States,

except by Act of Congress specifically

authorizing such action.

"(b) No wholly owned Government corporation created

by or under the laws of any State, Territory or

possession of the United States or any political

sub-

livision thereof, or under the laws of the District

of columbia, shall continue after June 30, 1948, as

an agency or instrumentality of the United States,

and no funds of, or obtained from, the United States

of any agency thereof, including corporations,

shall be invested in or employed by any such

corporation after that date except for the purposes

of liquidation. ***"

The General Accounting Office in a letter to the Committee

Chairman dated December 10, 1975 (B-179296) which discussed

the applicability of section 869 to the authority for CIA

to establish proprietaries stated in reference to the

legislative history of the açt

stated "we have found no...

indication in the legislative history that Congress considered

the formation of corporations for clandestine purposes.".

While it is recognized that the purpose of proprietaries

is to conceal the role of the governuent in clandestine

activities, the lack of legislative history concerning

formation of clandestine corporations must be accepted. Thus,

section 869 precludes the formation of proprietary corporations

except by Act of Congress.

As discussed in the following paragraphs, the Military

services disagreed strongly with the committee position in

this matter. As an example the Army stated in essence

NW 68486 Docld:32989711 Page 200

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## Page 201

that the provisions of section 869 should not be applied to

corporations established for intelligence purposes by the

Army because cover corporations do not, by their nature,

represent themselves as agents of the U.S. government and

do not engage in any business activity.

The Navy, with a somewhat different approach, stated

• that

proprietaries are established for the sole purpose.

of facilitating the collection of intelligence. The Navy

further stated that the purpose of establishing a proprietary is

provide a shield of non-attribution and that it would be impossible

to act as a U.S. government representative without destroying.

the cover of non-attribution.

The Air Force justified the use of proprietaries by citing in-house

savice approvals and approvals by the CIA and the Defense

Intelligence Agency. The Air Force stated in part "Justification

existed in the need for cover for clandestine foreign intelligence

collection activities."

In sunmary, the military services have

justified the use of

proprietaries on a rather pragmatic basis which states in

essence proprietaries are approved in accordance with regula-

tions, cleared by other agencies in the intelligence community,

and could not exist for intelligence purposes if it were

known that the U.S. government had an interest in the

operation of the corporation.

NW 68486 Docld:32989711 Page 201

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## Page 202

OPTIONAL FORM NO, 10

MAY TY'3Z EDITION'

GSA FPAIR (41 CFR) 101-11.6

UNITED STATES GO

RNMENT

'Memorandum

:Mr. W. R. Wannall Wif

FROM : B. J. Cassia

«дувувст:

Assoc. Dir.

TO

1 - Mr.

W.

R. Wannall

1 - Mr.

W.

0. Cregar

1

- Mr.

E .

1 - Mr.

R.

J. Cassidy

H. RoSs

DATE: 1/29/76

Dep. AD

Asst. Di

Admin!

Comp. Syst.

Ext. Affairs

Filos & Com.

Gen. Inv. -

Ident.

Inspection

s'" Intello.

-aborator)

-egal Co

Plan. & Eval. -

U. S.

HOUSE SELECT COMMITTEE

ON INTELLIGENCE ACTIVITIES (HSC)

Spoc. Inv. _

Training

Telephone Rp

Piroctor Se

Da

On 1/28/76, at approximately 2:30 p.m., Captain John

Mathney, National Security Council Staff, White House, tele-

phonically contacted Supervisor R. H. Ross, INTD.

He advised

that the eight write-ups, which had been furnished to him on

1/26/76 had proved useful. He stated that the write-ups would

be used either by being furnished to the minority members of

the HSC or incorporated into a Presidential rebuttal of the

HSC's report. He advised that he and representatives from

Department of State, Central Intelligence Agency, and Defense

Intelligence Agency were at that time preparing an overall

statement concerning the HSC's Draft Final Report. He then

read

a paragraph of the statement prepared regarding that

aspect of the report which dealt with the FBI.

It generally

Idealt with the fact that the report tried to characterize the

FBI

as an inept investigative body and how the report used a

broad brush approach to discredit the FBI investigations.

The prepared statement labeled the report as fallacious in

that the Committee neither balanced nor tempered its reportre

even though it possessed information which showed that in

the vast majority of instances,

the FBI conducted legal,

proper, and closely supervised

investigations.

Captain Mathney also requested to know whether the

leight write-ups could be furnished to minority members of the

Committee (Representatives McClory, Kasten, Treen, and Milford).

Further, he invited the fBl to have a representative present

with himself and the other agency representatives mentioned

above who were at that time preparing the statement.

He was

advised that his two requests would require consideration by

Bureau officials, but that he would be promptly advised.

Assistant Director Wannall was apprised of the above

and Mr. Adams was contacted by him. It was determined that

the Bureau had no objection to the eight write-ups being fur-

nished to the minority members of the Committee and that the

62-116464

REC-100

62-116464-

1550108 titin

CONTINUED - OVER

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(5)

3 FEB 6 1976

8 41203

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11 Page 202

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## Page 203

Memorandum to Mr. W. R. Wannall

U. S. House Select Committee

On Intelligence Activities (HSC)

62-116464

Bureau did not desire to have a representative participate in

the drafting session.

Adams instructed that Assistant

Attorney General Rex

Lee be contacted to see if the Department

had any objection to furnishing any of the write-ups to the

minority members or desired to have a Departmental representa-

tive attend the drafting session. Assistant Attorney General

Lee was telephonically contacted by Supervisor Ross, who

deferred both questions to Mr. Michael Shaheen, Jr., Special

Counsel for Intelligence Coordination. Shaheen was contacted

and apprised of the Bureau's views and stated that it was

"entirely appropriate" for

: the minority members to be furnished

that information by the White House. Also he felt that there

Iwas no need for a Departmental representative to àttend.

Captain Mathney was recontacted (3:15 p.m., 1/28/76)

and advised that there was no objection to the furnishing of

the write-ups and that the Bureau nor Department felt it

necessary to have a representative present with him.

ACTION:

For information.

INFO iN this mEmo INcorpurcted

iNto

Meno to 16, 216/76. Delivered to

Dept. 2/10/760, (SAmEcaptrow)

RHR.

The information in this

memo should be furnished

to the A. G. by memo.

pun

game

sill

-2 -

NW 68486 Docld:32989711 Page 203

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## Page 204

1 - Mr. Mintz

1 - MI.

Ash

• - Mr. Wannall

1 - Mr. Cregar

February 10, 107G

1 - Mr. Daly

The Attorney Coneral

Director, FLI

D. 5. HOUSE SPIECE CORATISE O11

INTELIIGENCE ACZIVITIRS

this vill confim a convorsation botroon Special

haont Paul V. Daly of this Lazeau and Ascistant Crocial

Counsel on Incollirence Coordination Steven Alackhurst on

February 2, 1076, at which tire it. Plachhurst vas advisca

that the TBI had

three outstancing

sequents rade hy the

Douss Solcot Committed rolating to the IDI's relacionsin

mitit tho U. E. Rocording Conpany.

Phoce requents wore ly

letters datod Potember 2, Decerbor 10,

and Deceaber 18, 1975,

raspectivoly, and signcd

by 1. Scarle

Ficld, Staff Bireotor

of that Corsittee.

ite. Blackhurat advised that in vior of the

lack

the Comnitice is no longor acsive, it is noc necessary

• for the

Jurcas to respond to the aforcrentioned roguests.

EX 10g

1: Ibe Dopaty attorney General

(detention:

Michacl B. Shancon, JI.

special Counsel on

Intelligence Ccordinacion)

REE 62-114464-300

MEI FEB 12 1976

Assoc. Dir.

-

Dep. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Admin. -

Comp. Syst._

Ext. Affairs

-

Files & Com. _

Gen. Inv. -

Ident.

Inspection

intell. -

Laboratory

Plan. & Eval. -

Spoc. Inv.

Training

Legal Coun.

felephon

PVD : 1ad LAD

(10)

NW 68486 Docld:329897112 Page 204

sill

per

TELETYPE UNIT L

GPO: 1975 0 - 569-920

---

## Page 205

TO

FROM

:

SUBJECT:

OPTIONAL FORM NO, 10

5010-106

MAY 1962 EDITION

GSA GEN. REG. NO. 27

UNITED STATES GOVERNMENT

Memorandum

Mr.

J. B. Adams

Legal Counse

1-Mr.

Wannall

1-Mr. Cregar

1-Mx.

Mintz

DATE: January 30, 1976

1-Mr. Hotis

1-Mr.

Daly

1-Mr.

Taylor

HOUSTUDY

HOUSE RESOLUTION 982

Assoc, Dir. -

Dep. AD Adm. -

Dep. AD Inv. _

Asst. Dir.:

Admin.

Comp. Syst.

Ext. Affairs -

Files & Com. _

Gen. Inv. -

Ident..

Inspection

Intell.

Laboritory

lani& Evai

Spec. Inv. -

Training

Telophone Rm. -

Director Sec'y -

On January 28, 1976, the House Committee on Rules

conducted hearings on H. Res. 982. Appearing before the

Committee as witnesses were Chairman Otis G. Pike (N.Y.),

author of the resolution, and Ranking Minority Member of

and aren

the House Select Committee on Intelligence, Robert McClory

(Illinois).

Ostensibly, the resolution sought to extend the

• Life of the select Committee until midnight, Wednesday,

2/11/16, Ior the purpose of filing of a supplemental report.

unless the report is published with appropriate security

markings and distributed only to persons authorized to re-

ceive it or until the President authorized the declassifi-

cation of the classified contents. The Young amendment was

nine to six while H.

Res. 982 was passed by voice vote, thus

clearing the resolution for consideration by the full House

on 1/29./76.

REC100 62 111:09/201

On 1/29/76, by a record vote of 246 to 124, the

House passed H. Res. 982 and the Young amendment..

RECOMMENDATION:

For information.

S FEB 20 1976

2.

(Wind losure

RTT :mez (8)

mez

PLAn

Too me

NUS 6AAFE Bodi7:3187%711 Page 205

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## Page 206

'I"

"Tu CONGRESS

2D SESSION

H. RES. 982

IN THE HOUSE OF REPRESENTATIVES

JANUARI 27, 1976

Mr. Pike submitted the following resolution; which was referred to the Com-

mittee on Rules

RESOLUTION

1

Resolved, That the Select Committee on Intelligence

2 have until midnight Friday, January 30, 1976, to file its

3 report pursuant to section 8 of H. Res. 591, and that the

4 Select Committee on Intelligence have until midnight,

5 Wednesday, February 11, 1976, to file a supplemental report

6 containing the select committee's recommendations.

ENCLOSURE

NW 68486 Docld:32989711 Page 206

62-114441-297

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## Page 207

. I=

94TE CONGRESS

2D SESSION

H. RES. 982

RESOLUTION

Authorizing the Select Committee on Intelli-

gence to file its report by midnight, Janu-

ary 30, 1976, and for other purposes.

By Mr. Pike

JANUARY 27, 1976

• Referred to the Committee on Rules

. va

NW 68486 Docld:32989711 Page 207

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## Page 208

Assoc. Dir..

Dep. AD Adie

Asst.

Admin. I

Comp. Syst.

Ext. Affairs

Files & Com.

Ident. -

1 - Mr.

J. B. Adains

2 - Mr. J. A. Mintz

(1 - Mr. J. B.-Hotis),

The Attorney General

February 6, 1976

1 - Mr. H. N. Bassett

(Attn: R. P. Keehan)

Director, FBI

1 - Mr. J. Cochran (Route

Through For Review)

U. S. HOUSE SELECT COMMITTEE

ON INTELIIGENCE ACTIVITIES (HSC)

1 - Mr. D. W. Moore

1 - Mr. W. D. Campbell

1 - Mr. W. R. Wannall

1 - Mr. W. O. Cregar

1 - Mr. T. J. McNiff

Enclosed are the originals of two memoranda

reporting the results of interviews of Donald I. Moore, Jr.,

Assistant Director, Ixternal Affairs Division, and Special

Agent William D. Campbell, Unit Chief, Radio Engineering

Section, Laboratory Division, by HSC Staff Menbers. These

interviers concerned HSC inquiry into this Bureau's

relationship with U. S. Recording Company.

A copy of each of the above memoranda is enclose

for forwarding to Mr. James A. Wilderotter, Associate

Counsel to the President.

It should be noted that Assistant Director-.

Donald W. Moore, Jr., was released from his confidentiality

agreement for the purpose of the interview, such release

predating the actual interview.

Enclosures (4))

62-116464

1

NEC-38

I - The Reputy

Attorney General

Attention:

Michael E. Shaheen, Jr.

65-116/44.298

MD FEB 11 1976

Special Counsel for

Intelligence Coordination

-

67-

- 67-

(Personnel File Assistant Director Donald W. Moore, Jr.) L

(Personnel File Special Agent William D. Campbell)

- K

Spec. Inv..

Training -

Telephone Rm.

Director Segy

MAIL, ROOM I

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1j0"

GPO: 1975 O - 594-120

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January 23, 1976

U.S. HOUSE SELECT COZITUTEE ON IVIELLIGEICE ACTIVITIES

INTERVIEL OF ASSISTANT DIRECTOR DONALD IT. LICORE, JR.

On Deccmber 9, 1975, Tin Oliphant, House Select

Connittec, contacted me personally regarding poker games

wich I attendeù at Harpers Fercy.

ist. Oliphant was interested

In knowing how many times I attended such cames and

Indicated my first attondance vas in Novenber, 1974 anü the

last in April, 1975.

Olighant was interested in knowing what the cost

involved and to mnon it was paid.

I indicated that I vas

invited by forner Assistant to the Dircotor J.P. lohr and

recall that the lovember trip cost $30 and the April trip

$35.

This noney was paid to lr. J.P. lohs, and vas paid

• CO

incur the esponse of 3 neals and 1 night's lodging.

asked if I knew the ocher individuals in attendance. I

indicated that I was introduced to all prosent but was unable

to recall, their protscsions or with whon they ware associated

othes than obviously Dureau personnel.

He asked if and when

I, becane sequinted with Joe talt of U,S. Recording.

indicate that I not l, tait on my initial trip in Novenber,

1074, and again saw him in April, 1975.

At that time I was

unavare with thom fir. Jait was associated until most recently

when it was pablished that I, Tait was, in fact, President

of U,s. Recording Company*

lic, Oliphant was desirous of knowing if I, at any

timo during attendance at Harpers Ferry, ovorneard or engaged

in any conversations involving U.S. Recording, Kaiser Electronics:

procuranent of Bureau supplies and/or equipment or any other

Assoc. Dir. -

discussions concorning official natters of the FEI.

Dep. AD Adm. -

to in. Oliphant that this vas scricily a social gathering and

Dep. AD Inv. -

I was

Asst. Dir.:

never involved in non did I ever overhear any conversa

Admin. —

sions relating to his question, I reitcraced thac I was there,

Comp. Syst. -

as a quest to be in the company of associates, merely to

Ext. Affoirs -

Files & Com. -

socialize anû not to engage in and discuss official business.

Gen. Inv. -

Ident. -

fir. Oliphant indicated ho had no further questions

Inspection -

intell..

Laboratory -

nd appreciated my cooperation in agree questions.

Plan. & Eval. -

i - Mr. Daly (sent with cover memo)

Spoc. Inv. -

Training -

1 - Personnel file of

L - Mr. Cregas sent wi Donala

w. Moore, JK

Legal Coun. -

Telephone Rm. -

NOTE: See Memo Moore to Mintz "U.S. HOUSE SELECT COMMITTEÉ

ON

Director Sec'y -

MAIL ROOM [

TELETYPE UNIT

NW 68486 Docldi02989711Page 209

ENGLAT TIGENCE ACTIVITIES"

GPO: 1975 0 - 569-920

29%

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## Page 210

:

1 - Mr. Bassett

1 - Mr. Mintz

1 - Mr. Walsh

1 - Mr. Wannall

1 - Mr. Cochran

1 - Mr. Harward

1 - Mr. Campbell

January 27, 1976

HOUSE SELECT CO LATTRE ON

INTELLIGENCE ACTIVITIDO (ISC);

U. S. RECORDING CONTRANY

On December 31, 1975 Spacial Agent (BA) Willlam D.

Campbell, Radio Engineering Section, I'BI Laboratory, was

interviewed by HSC Staff Member James Oliphant at the Rayburn

House Office Building, Washington, D. C. There was a court

reporter present to record the interview. Mr. Oliphant stated

he did not have the authority to place SA Campbell under oath and

another individual appeared in the room, placed SA Campbell

under oath and immediately departed the room. SAs Danny O.

Coulson and James Stassinos, FBI Legal Counsel Division,

accompanied SA Campbell to the Rayburn Building but were not

present during the actual interview. Approxirately one-half way

through the 25 minute interview Oliphant was joined by Richard is.

Vermeire, HSC Staff Member, SA Campbell at no time was advised

of his legal rights. SA Campbell requested and was advised he

would receive a transcript containing the results of the interview.

At the outset SA Campbell was asked his nate, address

and to explain his supervisory duties in connection with his position

as Unit Chief of the Engineering Unit. SA Campbell replied that he

was made a Unit Chief in May 1975 and his responsibilities included

providing technical assistance to FBI field offices in connection with

investigative matters.

SA Campbell was then asked if he ever bought anything from

Assoc. Dir. — U. S. Recording Company. AIr. Oliphant was advised that the purchase

Dep. AD in. - of equipment was usually accomplished by writing the request on tablet

Admin.

paper and sent to the Section. The requisition was typed and sent to

Comp. Syst.-

the Administrative Division for procurement.

It prices were known

Fles on they were usually obtained from catalogs. Then the items arrived,

Gen. Inv. -

Ident. -

Inspoction -

Intell. —

Laboratory —

Plon. & Eval. -

WDC:mss

(10)

WENT

wade

Spec. Inv. -

Training

Legal Coun. -

Telephone Rm. -

ENCLOSURN

Director Soc'y -

MAIL ROOM L

TELETYPE UNIT C

NW 68486 Docld:32989711 Page 210

ijin

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## Page 211

HOUSE SELECT COMMITTEE

ON INTELLIGENICE ACTIVITIES

SA Campbell rarely saw the purchase order but was telephonically

contacted to see if the morchandise had arrived indicating it was

then necessary to pay for the items. SA Campball in answer to

questions indicated he did not know the profit margin or how the

mark up on equipment was calculated. A "wild guess" requested

by Mr. Oliphant was that the mark up was 10-15 or 20 per cent

depending on the price of the items and the difficulty encountered

in obtaining the items.

In answer to questions by fir. Oliphant, SA Campbell

advised he had met Mr. Tait of U. 5. Recording Comany on

several occasions in connection with his employment but did not

know him socially. SA Campbell stated he had heard of the fargo

Company and had looked at onc of their catalogs but never ordered

anything from them. SA Campbell had heard of Gus Oberdick and

that he was a distributor of Smith & Wesson firearms.

Vermeire entered the room at approximatoly this timo and

asked some of the previous questions. HSC Stati Members then

inquired concerning SA Campbell's relationship with Martin Kaiser.

SA Campbell stated he had met Mr. Kaiser while he was visiting in

the Section. He was possibly visiting former SA John Matter, now

retired, and had met him several times since that time. SA Campbell

had purchased some small radio transmitters from Mr. Kaisci and

looked at some of his carfollowing equipment. Mr. Kaiser's equip-

ment was satisfactory for the price and in some instances iir. Faiser

Inew the equipment was being purchased by the FbI.

HISC Stait Members asked if SA Campbell Inew John Mohr.

SA Campbell furnished the following information concerning Mir. Mohr

in response to questions. SA Campboll new Mr. Mohr as an FBI

official but did not lnow him socially. He did not hear any rumors

or gossip that indicated there was anything out of the ordinary between

Mr. Mohr and Mr. Tait. Even after intormation appeared in the

newspaper SA Campbell stated he would bo very surprised if anything

transpired betweon them that was illegal. SA Campboll was at

Mir. Mohr's home to holp repair a TV set which he thought was good

security practice tos FBI officials. DA Campbell never worked on or

hoard of any other FBI employees working on any vehicle owned by

Mr. Mohr. SA Campbell did not know if Mr. Kiohr obtained anything

from Mr. Tait at a discount. AA Campbell vas instructed to go to

Mir. Mohr's home by his suparvicor who at that time was Mir. Bradley,

- 2=

NW 68486 Docld:32989711 Page 211

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## Page 212

HOUSE SELECT COMMITTED

ON INTELLICENCE ACTIVITILG

now retired.

It should be noted that SA Campbell was released from

his confidentiality agreement with the FBI for the purpose of the

above interview, release predating the actual intervier.

= ----

¿ NW 68486 Docld:32989711 Page 212

---__.

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## Page 213

OPTIONAL FORM NO, 10

MAY 1962 EDITION

GSA GEN. REG. NO. 27

UNITED STATES GOVERNMENT

Memorandum

Assoc. Dir..

TO

: Mr. J. B. Adams

1 - Mr. Mintz

1 - Mr. Wannall

1 - Mr. Cregar

DATE: 1/28/76

1

- Mr. Hotis

1 - Mr. Daly

sst. Dir.:

Admin.

Comp. Syst.

Ext. Affairs

Filos & Com. _

Gen. Inv. -

Ident. -

FROM : Legal Counsel an

Inspection

Intell.

Laborgial

Plan. & Éval. _

SUBJECT:

HOUSTUDY

Spoc. Inv. —_

Training

Tolephona Rmo

Director Socky

Richard Vermeire, Staff Member of the House Select

Committee, on 1/27/76 advised that at 2:30 p.m. on that date

the house select Committee was going to consider recommendations

concerning corrective action or legislation necessary as deter-

mined by the Committee's review of the FBI. Vermeire said that

two of the recommendations troubled him--one being a recommendation

being made to the Committee by the Staff that warrants be necessary

for the use of informants in the domestic intelligence area based

on a probable cause standard.

Vermeire indicated that both he and Timothy oliphant.

Staff Member of captioned Committee, were concerned with

proposal and considered it totally unworkable.

He asked/ if' the

Bureau could furnish him orally some suggestions or arguments he

might use to convince the Committee that such a warrant require-

ment is not feasible. He was advised that a determination would

be made by the Bureau concerning this and that he would be re-

contacted.

Vermeire also indicated that they were concerned with

a recommendation for a new oversight committee being created to

review FBI operations.

It was pointed out to Vermeire that the

Director had testified on oversight and while he was in favor of

the concept, the Bureau was desirous that oversight functions be

consolidated. In this regard, it was pointed out to Vermeire

that there were currently three Committees in the House claiming

oversight responsibilities pertaining to Bureau operations--sub-

committee on Government Information and Individual Rights of the

House Committee on Government Operations, Subcommittee on Civil

and Constitutional Rights of the House Committee on the Judiciary"

and Subcommittee on Courts, Civil Liberties/ and the Administratior

of Justice of the House Committee on the Judiciary

FEB 3 1976

EX 104

CONTINUED * OVER

!

(7)

8 4 FEB 1 2 1976

WW 68486 Docld:32989711 Page 213

---

## Page 214

Legal Counsel to Mr. Adams

RE :

HOUSTUDY

Vermeire was very appreciative of the information

concerning oversight and asked that he be advised as soon as

possible of any arguments or suggestions the Bureau might have

concerning warrant requirements for informants in the domestic

intelligence area.

Contact was made with SA Thomas J. McNiff of the

Intelligence Division, SENSTUDY 75 Staff, and Steven Blackhurst,

Assistant Special Counsel on Intelligence Coordination in the

Department, regarding Vermeire's request and both agreed that it

would be advantageous to furnish suggested arguments concerning

warrant requirements for informants to the House Select Committee.

Attempts were made to telephonically contact Vermeire

121o. Vonne even area in ease of her v.

problems presented by the requirement of warrants based on

probable cause for the utilization of information in the domestic

intelligence area. The arguments were as follows:

(1) The problem in defining the information being

sought by the informant for the Bureau. It was pointed out

that these investigations are by nature difficult to describe

in scope and that a warrant requirement would seem to require

a specification as to what is being sought.

(2) The use of informants in this area is generally

at a very early stage in the investigation at which time it

would be unlikely there would be Isufficient information

available to meet a probable cause standard.

(3) If a court were to issue a warrant for the use

of an informant, what procedures would be necessary for the

apprt al monitor the use of the informant subscquent to their

(4) It would appear that such a legislative recom-

mendation would be casting the court in a role to which they

are unaccustomed and moving the courts closer and closer to the

very initiation of an investigation.

CONTINUED - OVER

=2 -

NW 68486 Docld:32989711 Page 214

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## Page 215

pro

Legal Counsel to Mr. Adams

RE: HOUSTUDY

(5) What arrangements or considerations would have

to be made to protect the identity of an informant wherein a

warrant had been sought?

(6) It was pointed out that there would be great

difficulty in drafting a concise or accurate definition of

domestic intelligence investigations.

Vermeire was very appreciative of the aforementioned

arguments and stated he would use these in an attempt to explain

to the Committee the difficulty presented by legislation in this

area.

RECOMMENDATION:

1784/00

For information.

san glan

gra

- 3

-NW-68486_Docld:32989711 Page 215

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## Page 216

OPTIONAL FORM NO, 10

5010-106

MAY 1962 EDITION

GSA GEN, REG. NO, 27

SINITED 'STATES GO

RNMENT

Memorandum

TO

:

Mr. Cochra

FROM

W. E. Harvard We o

SURYECT: HOUSE SPLECT COMMITTEE ON

INTELLIGENCE ACTIVITIES

U.s.

RECORDING COMPANY

DATE:

January 15, 1976

Associ

Dop"

Pir.:

Admin.

Comp. Syst. _

Ext. Affairs -

Files & Com. _

Gen. Inv.

Ident. →

Inspection

Intell.

Laborat

not Eval. -

Spec. Inv.—

Training —

Telophone Rm. -

Diroctor Sec'y -

As you are aware, on December 31, 1975, SA Royce

V. Colby, Radio Engineering Section, FBI Laboratory

appeared, as requested, at the offices of captioned

committee.

SA Colby was questioned under oath by staff

members Richard Vermiere and Tim Oliphant, and the testimony

was recorded by a court reporter.

The purpose of this memorandum is to advise and

make a matter of record an "incident" which happened in

connection with the above testimony. The room which was

to be used for the interview was being occupied by a staff

member using the telephone.

When staff member completed

his telephone conversation he departed leaving the room

available for Mr. Veridere, Oliphant and Colby.

Upon

entering the room following Mr. Oliphant SA Colby noticed

a crunched-up dollar bill lying on the floor just inside

the door of the interview room.

SA Colby picked the money

up and gave it to Mr. Oliphant who at the same time asked

II Colby had dropped it.

Colby replied that he did not

think the money belonged to him since he normally did not

carry loose bills in his pocket. Oliphant then handed

the dollar to Mr. Vermierewho departed from the room to

determine if the previous occupant had dropped the bill.

'While waiting for Mr. Vermiere to return, Mr. Oliphant

"jokingly" remarked

that this was just "one of our tricks

to establish honesty" of the person about to be

2116464-296

1 - MI.

Bassett

1

- MI.

Mintz

- Mr. Walsh

- Mr. Wannall

1

1

1

- Mx. Cochran

- Mr. Harward

Mr. Colby

•FEB

51976

9197u.

FEB

15

R/C

CONTINUED - OVER

(8)

MW Gate bold

A 10/0

1989711

Page 216

FEB 19 1976

---

## Page 217

Memorandum to Mr. Cochran

RE:

HOUSE SELECT COMMITTEE

INTELLIGENCE ACTIVITIES

U.S. RECORDING COMPANY

intervie testimony he son specs, the they, pohet the

court reporter entered the room followed by Mr. Vermiere

and Mr. Oliphant immediately commenced the interview.

No further reference to the dollar bill was made by any

of the staff members including Mr. Vermiere who apparently

had returned the dollar bill to the departed staff member.

SA Colby feels since he had no opportunity to

pursue the statements made by Mr. Oliphant that it would

be difficult to establish whether Mr. Oliphant was

no seat that the do cate eat encounters

should be brought to the attention of the Bureau for

information in the event similar tactics are employed

by House Select Committee staff.

RECOMMENDATION: None. For information only.

Jure

TIM

god

- 2-

NW 68486 Docld:32989711 Page 217

---

## Page 218

The Attorney General

Director, FBI

1 - Mr

• B. Adams

2 - Mr. J. A. Mintz

(1 - Mr. J. B. Hotis)

1 - Mr. H. N. Bassett

P. Keehan)

(Attn: janiary 26, 1976

1 - Mr. J. Cochran (Route

Through For Review)

1 - Mr. J. L. Perrittee

1 - Mr. W. R. Wannall

1 - Mr. W. D. Cregar

1 - Mr. T. J. McNiff

Enclosed is the original of a memorandum

reporting the results of an interview of a current Bureau

employee by HSC Staff Members.

This interview concerned

HSC inquiry into this Bureau's relationship with the

U. S. Recording Company.

A copy of this menorandum is enclosed for

forwarding to Mr. James A. Wilderotter, Associate Gounsel

to the President.

It should be noted that Special Agent Joseph

Perritte, the employee interviewed, was released fron his

confidentiality agreement for the purpose of the above

interview, such release predating the actual interview.

Enclosures (2)

62-116464

1 - The Deputy Attorney General

Attention:

Started are to, Se 2-111 46-4-295.

Special Counsel for

Intelligence Coordination

EE FEB 6 1978

(Personnel File SA Joseph I. Perritte)

fist

Assoc. Dir.

Dep. AD Adm.

Dep. AD Inv.

Asst. Dir.:

Admin. -

Comp. Syst.

Ext. Affairs

Files & Com.

Gen. Inv.

Ident.

Inspection

Intell.

Laboratory...e

'Plon. & Eval.

Spoc. Inv.

Training ..

Legal Coun.."

Telophone Rm.

ire

-1 - 67-

TIM: Tab Lit

(74),

5-W06/S

- 69U

MAY

Id:32

L.

TELETYPE UNIT O

011 Page 218

GPO 954-545

---

## Page 219

January 20, 1976

HOUSE SELECT COMMITTEE OUT

INTELLIGEICE ACTIVITIES;

U. S. RECORDING COMPANY

On January 14, 1976, Special Agent Joseph I.

Perritte, Radio Engineering Section, FBI Laboratory, appearer

is requested, at the offices of the captioned committee.

SA Perritte was questioned under oath for a period of approx-

imately twenty minutes by staff members Tin Oliphant and

Richard Vermiere.

The oath was adninistered by lix. Oliphant

and no advice of rights was given.

The proceedings were taken

down by a court reporter, and it was requested that a copy of

the transcript be furnished to the FBI Office of Congressional

Affairs.

The first series of questions concerned SA Perritte's

experience and current assignments in the Laboratory. The

questioning then turmed immediately to procurement procedures

and specifically to the use of U. S. Recording Company as a

"cut-out" or confidential source for procurement purposes.

Questions were asked concerning the price mark-up applied by

U. S, Recording and whether SA Perritte had any knowledge of

improper conduct by Bureau personnel in connection with

purchases made fron U. S. Recording.

SA Perritte was also

asked whether he had any

• knowledge of purchases fron Gus

Oberdick or the Fargo Company.

SA Perritte was asked whether

he had any knowledge, or had

heard any runors concerning the

development of a "bottle cap" being developed by Laboratory

personnel and subsequently patented by lir. Tolson.

SA Perritte

advised the staff members that he had no information concerning

any of the above matters.

Assoc. Dir.

Tinally a long'list of equipment nanufacturers and

Dep. AD Adm. -

vendors was given to SA Perritte and he'was asked if he could

Dep. AD Inv. _

Identify aty lof the companies as compantes fron whon equipnent

Asst. Dir.:

Admin.

has been purchased. iA few companies listed

as lotorola,

Comp. Systa —

Altec-Lans128:

Electronic Wholesalers, etc. were recognized

Ext. Affairs -

as companies whose products are used by the bureau or trou whom

Files & Com. - purchases have been made by the Bureau.

Gen. Inv.-

Ident. _

Inspection -

Intell. -

Laboratory

Plan. & Eval.

ILP: 1g

(6)

7.1)

Spoc. Inv.

Training

Legal Coun.

Telephone Rm. _

Director Sec'y -

MAIL ROOM

TELETYPE UNIT

NW 68486 Docld:32989711 Page 219

reSa

ORIGINAL

AND ONE COPY TO AG

i: 62-111-3757

2

Tapo Fasts

---

## Page 220

SEE INSTRUCTIONS ON REVERSE

BEFORE COMPLETING.

CLASSIFY AS APPROPRIATE

TO:

Intelligence Community Staff

ATTN: Central Index

FROM:

FBI

SUBJECT: Abstract of Information Provided to Select Committees

1. HOW PROVIDED (check

for review

appropriate

term.

If a document was made available

not transmitted, so

DOCUMENT

BRIEFING X INTERVIEW

TESTIMONY

OTHER

2. DATE PROVIDED

1/26/76

3. TO WHOM PROVIDED (check appropriate term;

add specific names if appropriate)

SSC

The Attorney General with a copy for forwarding to

the White House

HSC

IDENTIFICATION

(provide descriptive data for documents; give name or identification number of briefer,

interviewee, testifier and subject)

Memorandum reporting results of an interview by MSC Staff

Members of incumbent SA Joseph I. Perritte

5. IN SPoNse al radate or ito, mer alive, esponse, formal request, other-

• CLASSIFICATION O

NFORMATION (ente

Codew S, IS or

NA

U

?. KEed unde finter the passpriate key words from the list provided separately; if key words not listed are

Operating procedures

8. SUMMARY (see reverse side before completing this item)

Interviewed regarding procurement procedures and specificially

fron the U.S. Recording Co.

62-116464

FMK: fmk

(4)

ORIGINAL VIA LIAISON TO CENTRAL COMMUNITY INDEX

IN CONNECTION WITH HOUSTUDY

TREAT AS YELLOW

5-10

379| 16-751

NW 68486 Docld:32989711 Page 220

CLASSIFY AS APPROPRIATE

---

## Page 221

INSTRUCTIONS

• Type or print clearly in ink.

• Indicate classification of the abstract top and bottom.

• Date the abstract and put on any internal control numbers required.

"FROM" entry

should clearly identify the organization providing the

information.

• If additions (as when a copy of document sent to SSC is later sent to

HSC) or changes to a previously submitted form are necessary, submit a

copy of the original abstract, with the change indicated.

SPECIFIC ITEM NO. 8. SUMMARY - enter brief narrative statement describing

substance of information and showing relationship to Intelligence Community

matters if appropriate. Any feedback or evidence of investigatory interests

should be noted. Commitments made to supply additional information should be

noted. Additionally, certain administrative information may be entered here,

e.g., restrictions on review of a document, if document was paraphrased, whether

interviewee is current or former employee, etc. If actual document or transcript

is provided, that 'fact should be noted and no summary is required. Additional

pages may be attached if necessary.

"y

NW 68486 Docld:32989711 Page 221

---

## Page 222

TO!!

11

FROM

OPTIONAL FORM NO, 10

HAY 1962 EDITION

GSA FPAIR 141 CF 101-11.6

UNITED STATES GOVERNMENT

Memorandum

:

MR.

D.w. MOORE, JR.

SUBJECT:

U.S. HOUSE SELECT COMMITTEE ON

INTELLIGENCE ACTIVITIES

DATE: 1/22/76

Assoc. Dir. —

Dap. AD Adm. -

Dop. AD Inv. -

Assi. Dir.:

Admin.

Comp. Syst. _

Ext. Affairs -

Filos & Com. -

Gon. Inv. -

Idont.

Inspection _

Intell. -

Laboratory -

Logal Coun. -

Plan. & Evol.

Spoc. Inv.—

Training -

Telephone Rm. -

Diroctor Soc'y -

Attached is letterhead memorandum concerning

interview of Tim Oliphant on December 9, 1975 and

myself.

RECOMMENDATION:

For information.

Enc.

40963/4176 catest US Arse

alizates

Sele of Costed on batille act

62-1046441

Balito

1 - Mr. Wannall

• ~ Mr. Cregar - Enc.

- Mr. Mintz

Mr Daly - Enc.

Mr. Moore

ENCLOSURE

DWM : jo

(6)

REC: 100

62-116444-294

EE FEB 6 1976

5-74

1usr:

i:"

1 7 1976

NW b0480-1ocld:32909717

Bay 25, Savings Bonds Regularly on the Payroll Savings Plan

---

## Page 223

•+052959 33- 1976

U.L, HOUSE SELECT CONFICIEN O ILTELLIGENCE ACTIVIIILS

INTEZVIEW OF ASSISTANT DIRECTOR JONALS N. MOORE, JE.

On Deschbar 9, 1975, Tin Olipiant, House Salect

comaltina, contacted ne

pax400a14y regarding potat. gafes

which I attended at laxpirs farty,

No. 0115ha1t 598 Intaristod

1n kn042ng how many tines t attarded such guara and I

Inalcate ny fleat attendanes vas 14 lovember, 1974 and tha

Iast 27 AtxiJ, 1975.

Olfplant vas Interasted in knowing what the cost

Involved and to thon it nan pald. I Indicatod that I vas.

Invitan by forner Asslatant to the DIreCtOI I.P. MohI and

racall that the lovember tIlD cost $30 anà the ApTII tIly

$39.

This toney was pald to li, J-P-toht, and vas paid to

19045 the expanse of 3 maxle and 1 night's lodging. de

askeù 11 I knew the other Indivlurals in attendanco. I

Indoated that I vas latroduces to all present but ust unable

to rooall thel profansions or ulth thos tiay mura associatos

other tini dbulously Jureas pariOnal: lE asted LE and ther

I lorasa acgualatod Mith Joa TAft of ü,S. Recording. I

iniscate that I not lit. Talt on my initial telp ia loverzer.

1974, and again saw him in Apr11, 1975..

At that tino I san.

ayaTe Mità whom Ir. Tait Mia ansociatad antil wost recently

when it mas pullisbed that ft. Tait was, in fact, Presliest

of tra, sucatulag Conpany.

#h. Ollphant tas destrous.of knolag 11 I. at auy

Else during attandance at taxpsIa Perry, overhaard or engaged

is any conversations titolying t.S, recording, salzor llectronies,

ExocurepeNt of surasu supplles and/or ayulinest of any other

1186495107s conceralng Official natters of the tal.

to it. clipiaot tiut tado nas strictly a susial gathering azá

I MAN NOVAL LIVUIDEÚ IN IDI dIÚ I GUAI OVOILAZI AIY CONTAINA-

Elans salating to his question, I rettoraiad that I uns there

as a guest to be la the conjany of assouiates, araly to

soctalize ană not to enjage 1s ani ülscuss official business:

it- Oliphant Indicatod ha had no further questions

and appiralateú My cooporAtion lu anaNoring is quastdons..

Mt "Daly

MI.Cregax

62-116464-294

- Personnel file of Donald W.HOOIe, JI.

NOTE: See Memo Moore to Mintz

"U-S-HOUSE SELECT COMMITTEE ON

INTELLIGENCE ACTIVITIES"

NW 68486 Docld:32989711 Page 223

CELSIN

---

## Page 224

1.a

The Attorney General

Director, FBI

1

Mr. J. B. Adams

2 - Mr. J. A. Mintz

(1 - Mx. J. B. Hotis)

1 - Mr. H. N. Bassett

(Attn: R. P. Keehan)

January 21, 1976

1 - Mr. J. Cochran, JI. (Route

Through For Review)

1 - Mr. W. G. Stevens;

1 - Mr. R. V. Colby

1 - Mr. W. R. Wannall

1 - Mr. W. D. Cregar

1 - Mr. T. J. McNiff

Enclosed are the originals of two memoranda

reporting the interviews of two current Bureau employees

by HSC Staff Members. Both interviews are related to the

HSC inquiry into this Bureau's relationship with the

U. S. Recording Company.

Also enclosed is an additional copy of each

memorandum for forwarding to Mir. James A. Wilderotter,

Associate Counsel to the President.

Enclosures (4)

62-116464

1 - The Deputy Attorney General

Attention: Michael E. Shaheen, Jr.

Special Counsel for

Intelligence Coordination

REC-100

I - Personnel File Wilbur G. Stevens

.1 - Personnel File Royce V. Colby

62-116 364-293

TJM:lhblhb

Assoc. Dir. TiL

Dep. AD Adm. -

(16) 1 H

Dep. AD Inv. -

Asst. Dir.:

Admin.-

Comp. Syst. -

Ext. Affoirs -

Files & Com. _

Gen. Inv, -

Ident.

Inspection -

Intell. -

Laboratory

Plan. & Eval. -

Spoc. Inv. -

Training

Legal Coun.

Telephone Rm. -

Director Sec'y -

MAIL ROOM L

NW.68/86 FBcld:3297811 Page 224

AT Winn

4013605

GRO: 1975 0 - 569-920

---

## Page 225

".=.

January 15, 1976

1 - Mr. Bassett

1

- Mr. Mintz

HOUSE SELECT COMMITIRE 0Y

1

- Mx. Walsh

1

ILTTELLICIICE ACTIVITIES;

- Mr.

Wannall

1 - Mr. Cochran

U.S. RECORDING COMPAITY

1

- Mr. Harward

1 - Mr. Colby

on becenber 31, 1975, SA Royce Y. Colby, Radio

Engincering section, ElL

Laboratory, appeared, Os

requested,

at the offices of captioned committee.

For a period of

approxinatoly tuenty-five ninutos, SA Golby was questioned

under oath by staff merbers Richard Verniere and Tin

Oliphant. Oath vas administored by an unmon individual

Who Oliphant described as the staff norber authorized to

administer oaths, since he, Oliphant, stated he vas not

authorized to do

After acministoring onth this staff

merber irmediately departed frow intervie room.

The

entire intervier vas taken down by a court reporter,

request vas nade by the Office of Congressional Affairs

to obtain a transcript of SA Colby's testimony. SA Colby

was not advised of his rights, prior to, or at any time

during the testimony.

Tac questioning first concerned SA Colby's

assignnents in the Ill Radio Matters Unit of the Laboratory

and the rclationship this unit has in comection vith the

Black

procurcoont of radio equinent fron U.S. Recording Company.

The staff vas particularly interested in understanding

our procedures for handling Icquisitions and whether

SA Colby had any infornation, zucor or otheruise, con-

corning park up of equipment purchased through U.s.

Recording Gonpany.

SA Colby brietly explained procurement

procedures and advised since the purchasing uas handled

Assoc. Dir. -

Dy anocher CIVISIOn,

he had no Inouledge of actual costs

Dep. AD Adm. _

oi. Ill radio transceivers purchosed by the Burcau through

Dep. AD Inv. -

Asst. Dir.:

this source.

Admin, _

Comp. Syst.

Ext. Affairs

Files & Com. -

ГОнА й с!" 13.

Gen. inv. _

RVC : 1

"RIGINAL AND ONE COPY TO, AG

Ident. .

(10)

Inspection.

Intell. _

Laboratory

Plan. & Eval. -

Spoc. Inv. -

Training.

Legal Coun. -

62-116414-29

pier

Telephone Rm. -

Director Soc'y -_

MAIL ROOM L

TELETYPE UNIT

fia cod

NW 68486 Docld:32989711 Page 225

GTO 951-545

---

## Page 226

ITUSE SELICE CONTITIDE OU

INTELLIGENCE ACIVILIES;

U.S. RECONDING COMPLIE

questioning further concerned relatinnship

between it. Aberdick n& the Farge Company, ir. ine Tate (ph),

v. S. Recording Compony, and lit. John f. lohr. Ir. Colby

advised he knew of all these porsons but vas not per-

sonally acquainted with any of them, other chan to have

Ect Joe late briefly on a couple necasions. SA Golby also

advised he had been in telophone contact with Mr. Tate en

Conpany.

- 2.

WW: 58935 Bockd:32983711 Page 228

---

## Page 227

62-116464

1 - Mi. J. Cochran

1 - Mx. W. G. Stevens

1 - Mr. W. O. Cregar

1 - Mr. I. J. McNiff

January 19, 1976

HOUSE SELECT COMMITTEE ON

ITTELLIGENCE ACTIVIIIES (HSC);

U. S. RECORDING COMPANY

On December 29, 1975, Special Agent (SA)

Wilbur G. Stevens, Radio Engineering Section, FBI

Laboratory, Was Interviewed by HSC Staff lembers Richard

Vermiere and James Oliphant at the Rayburn Hnuse nffice

Building, Washington, D. C. SAs Danny A. Cnulson and

James Stassinos, FBI

Legal Counsel Division, accompanied

SA Stevens to the Rayburn Building but were not present

during the actual interview. SA Stevens at no time vas

advised of his legal rights and he was, prior to the

Interview, placed under oath by the Chief Counsel fox

the HSC.

The interview lasted approximately 1 hour and

20 minutes, and SA Stevens was advised that the FBI would

be furnished with a transcript containing the results of

the interview.

At the outset, SA Stevens was asked to explain

his supervisory duties in connection with his position as

Unit Chief of Security Countermeasures Unit. SA Stevens

replied that his responsibilities concerned: technical

security surveys for Bureau officials as well as other

highly placed members of the United States Government;

supplying and maintaining, for field use, all types ni

Assoc. Dir. _

tape recording devices utilized in authorized technical

Dep. AD Adm. -

Dep. AD Inv. -

investigations; installation, maintenance and service of

Asst, Dir.:

Admin.

alarm systems installed in each Resident Agency throughout

Comp. Syst._

the field; and supervision of case examination work in

Ext. Affairs -

Files & Com. -

connection with magnetic tape and voiceprint analysis.

den, hy. _ TJM: 1hb|h PRIGINAL AND ONE COPY TO AG

Inspection -

Intell. _

Laboratory _

(7)

Plon. & Eval. -

Spec. Inv. -

Training -

Legal Coun. -

Telephone Rm. -

MAIL ROOM L

602-116

461

TELETYPE UNIT [

ENCLOSURE

SEE NOTE

wol

293

AGE 3

Director Sec'y -

NW 68486 Docld:32989711 Page 227

ON GPO: 19750-569-920

---

## Page 228

HUSE SELECT COLMITTES ON

IVTELLIGEICE ACTIVITIES (HSC);

U.S. RECORDING COMPANY

SA Stevens was then questioned concerning

policies Inlloved by the Bureau Labnratnry regarding the

purchase ni technical equipment. ise Staft Herbers

were advised that purchasing by the laboratory and kadis

Engineering Sectinn of such equipnent was accomplished

by the preparation of a requisition no by recommendation

through a mennrandun prepared fox that purpose. It was

explained that these requests were inrually sent to the

labnratnry Divisinn head who, if he appinved, signed the

request and then intarded it in the Administrative

Divisinn inr the necessary purchasing action. Prices

nf such equipment, appearing either on the requisition

no mennrandun, were nrnally sbtained fron catalogs

indicating the purchase price ne such items. HSC Staff

lembers then asked whether nt unt the Labnratnry helped

En establish a pinfit margin fnr such equipment when

purchased nn a confidential basis frnn the U. S. Recniding

Company. SA Stevens replied that in his luniledge the

piriit margin ni such purchases vas never negntiated by

Bureau Labnratnry persnnnel.

HSC Staff Members then inquired concerning any

business ni sncial relatinnships SA Stevens nay have had

with Inseph Tait, President, U. S. Recording Company,

and any social relationships SA Stevens may have had

with former Assistant to the Directnt John P. Anhs.

SA Stevens advised that he had no social relatinnships

with Joseph Tait; hovever, a limited business relatinnship

did exist between the two.

with regard to fix. Mohr,

SA Stevens added that he had been in a social functinn

at which inhn lichr was present.

HSC Staff lembers then

inquired encerning any personal favors that passibly could

have been rondered tn Mr. linhr by SA Stevens. SA Stevens

= 2 =

NW 68486 Docld:32989711 Page 228

---

## Page 229

FUSE SELECT CMIIICE ON

ILTGLLIGENCE ACCTVIIIES (USC) ;

U. S. RECORDING COLTANY

replied that he could nnly renenber nne instance in mich

some magnetic tape recordings had been prepared int the

personal use nf tir. linhr. With regard in an ISC inquiry

concerning any Inniledge SA Stevens may possess regarding

an autranbile belonging in l'z. linhr which may have been

Tinkled no by personnel of the Eurcau labnratnry, Sa Stevens

but he could int recall specific ininmatinn regarding

the time he heard these runors ni the snurce ne this

informatinn.

SA Stevens replied in the negative when asked

It he had attended any poker parties at thich kessrs. linhr

or lait vere present. Ten asked concerning any business

relatinnships SA Stevens may have had with either Gus

nberdick and/ny the Fargo Crupany, Stevens advised that he

was acquainted with berdicl and

that he had had limited

business relatirnships with the Fargn Company, thich firm

he knew handled the sales nf police-type equipment. HSe

Staff Members concluded the interview by asking SA Stevens

whether he had any relatinnships with Hartin Kaiser nf the

Martin I. Kaiser Company nf Baltimre. SA Stevena advised

that he had had some business dealings with c. Kaiser

and that he was acquainted with him.

It shnuld be inted that SA Stevens was released

frnm his confidentiality agreement with the FBI fer the

purpose of the abnve interviev, release predating the

actual interview.

NOTE:

Results of above interview were obtained frn a

Inugh-draft menrandum prepared by SA Stevens dated 1/8/76 •

setting forth the results of the interview in the best of

his recnilection.

= 3 =

NW 68486 Docld:32989711 Page 229

---

## Page 230

TE: SEE INSTRUCTIONS ON REVERSE

BEFORE COMPLETING.

CLASSIFY AS APPROPRIATE

FROM:

TO:

Intelligence Community Staff

ATTN: Central Index

FBI

SUBJECT: Abstract of Information Provided to Select Committees

PROVIDED

(check

appropriate

term.

If a document was made available

review but not transmitted, so note.)

DOCUMENT

_BRIEFING XX INTERVIEW |

| TESTIMONY

OTHER

2. DATE PROVIDED

1/21/76

3.

TO WHOM PROVIDED (check appropriate term; add specific names if appropriate)

The Attorney General with a copy for forwarding to the

White House

SSC

HSC

4. IDENTIFICATION (provide

descriptive data for documents;

give name or identification number of briefer,

interviewee,

testifier and subject)

Memorandum reporting the results of intervievs by HSC Staff

Members of SA's Wilbur G. Stevens and Royce V. Colby

6. CUFORMATCON SO GET

Codewo sd TS or

U

NA

7. KEY WORDS (enter the appropriate key words from the list provided separately; if key words not listed are

used underline for emphasis)

Operating procedures

8. SUMMARY (see

reverse side before completing this item)

Interviewed regarding the U.S. Recording Co., and Joe Tait

in connection with purchasing of equipment.

62-116964

FMK: Emk

(4)

• ORIGINAL VIA LIAISON TO CENTRAL COMMUNITY INDEX

IN CONNECTION VITH HOUSTUDY

TREAT AS YELLOW SA

CLASSIFY AS APPROPRIATE

379| (6-75)

NW 68486 Docld:32989711 Page 230

---

## Page 231

INSTRUCTIONS

• Type or print clearly in ink.

• Indicate classification of the abstract top and bottom.

• Date the abstract and put on any internal control numbers required.

• "FROM" entry should clearly identify the organization providing the

information.

• If additions (as when a copy of document sent to SSC is later sent to

HSC) or changes to a previously submitted form are necessary, submit a

copy of the original abstract, with the change indicated.

SPECIFIC ITEM NO. 8. SUMMARY - enter brief narrative statement describing

substance of information and showing relationship tó Intelligence Community

matters if appropriate.

Any feedback or evidence of investigatory interests

should be noted.

Commitments made to supply additional information should be

noted. Additionally, certain administrative information may be entered here,

e.g., restrictions on review of a document, if document was paraphrased, whether

interviewee is current or former employee, etc. If actual document or transcript

is provided, that fact should be noted and no summary is required. Additional

pages may be attached if necessary.

NW 68486 Docld:32989711 Page 231

---

## Page 232

1 - Mr.

J.

B. Adams

2 - Mr. J. A. Mintz

(1 - Mr. J. B. Hotis)

1 - Mr. H. N. Bassetti

The Attorney General

(Attn: R. P. Keehan) January 20, 1976

1 - Mr. J. Cochran (Route

Through for Review)

Director, FBI

1 - Mr. W. M. Mooney

(Attn: J. M. Kirsch)

U.

S. HUSE SELECT COMMITTEE

1 - Mr. E. W. Walsh (Route

ON INTELLIGENCE ACTIVITIES (HSC)

Through For Review)

1 - Mr. W. R. Wannall

1 - MI. W. O. Cregar

1 - Mr. T. J. McNiff

Enclosed are the originals of memoranda reporting

the interviews of nine current Bureau employees by

representatives of the HSC. All interviews are related

to the HSC inquiry into this Bureau's relationship with

=

the U. S. Recording Company. Also enclosed is an additional

copy of each memorandum for forwarding to Mi. James A.

Wilderotter, Associate Counsel to the President.

In addition to interviews recorded in the

enclosed memoranda, former Bureau Laboratory employee

Special Agent Joseph Leo Gormley and former Special Agent

in Charge, Baltimore, Thomas Farrow were sinilarly

contacted for interview on January 7, 1976, and December 8,

1975, respectively. Mr. Gormley advised HSC representatives

that

he. had no personal dealings with U. S. Recording

Company and had no knowledge of the Bureau's and/or former

Assistant to the Director John P. Mohr's dealings with

that- company. The interview was terminated at that point.

62-116464

(REC100

62-111-414-292

1567=

(Personnel File Thomas Farrow)

67-

cels

(Personnel File Joseph Gormley)

13 FES

- 67-

(Personnel File John M. Kirsch)

1ss0c. Dir. -

*67-

(Personnel

Dep. AD Adm. -

File G. Owen Verven)

Dep. AD Inv. -

1 - 67-

(Personnel File G. S. McMichael)

Asst. Dir.:

1 - 67-

Admin. —

(Personnel File Jay Cochran, Jr.)

Comp. Syst. _

1

-67-

(Personnet Fe Tagon . Many, 500) 5-4003

(Bersonnel File James B. Adams)

Ext. Affairs - 1 - 67-

Files & Con. -

Gen. Inv. —

1 - 67-

(Personnel File Eugene W. Walsh)

Ident. .

1 -67-

Inspection -

(Personnel File McNair W. Perry)

Intell. -

Laboratory

1. = 67- (Personnel File Jack Wilgus)

Plan. & Eval. - ,

Spec. Inv. -

1JM: 1hb 146

Training

Legal Coun. -

4(25)

Telephone Rm. -

*2 ROOM

IWV 68486 Docld:32989711 Page 23

TELETYPE UNIT L

GPO: 1975 0 - 569-920

---

## Page 233

:

The Atinrney Generol

Is. Farint advisod ISC representatives that he truld

discuss with then ony encial activity in thich he parcici-

pated at the blue Ridge lind and Gun Club, llarper's Forty,

test Virginia, but he vuld first have in scoure approval

FIna EDI Hcodquarters before any nificial discussinn could

bo entored inin concerning U. S. lecnrding Gabpany.

At

thot point HSC Staff l'embers discontimcd thair contact

with lic. Farin. It shnuld be méed that lit. Parano vas

released frnn his concidentiality agrocuent nich the

Eureau on Lecember 19, 1975, but no inentmatinn hus been

recoived at I3I, Headquarters that ISC Stadt Lombars had

reinitiated their contact with lis. Tarzoi.

Encinsures (18)

1 - the Laputy Actnracy General

Littentinn; Michacl i. Shaheen, Jr.

Special Gunsel Int

Intelligence Cnnidination

• 2.

( NW 68486 Docld:32989711 Page 233°

---

## Page 234

:

62-116464

Jamary 13, 1976

INUSE SELECT COMMITTEE ON INTELLICENCE ACTIVITIES (HSC)

U,S. RECORDING COMPANY

On December 9, 1975, Special Agent (SA) John M.

Kirsch was interviewed at the J. Edgar Hoover uilding.

Washington, D. C., by MI. Timothy Mliphant In the presence

sE SA Paul Daly.

Mr. Miphant, who is representing

Congressnan Pike's Connittee, inquired concerning social

activities at Herper's Ferry, West Virginia.

SA Kiesch

advised that he had attended two such gatherings primarily

composed of Eureau personnel (present and former) during

early 1974, the first such occasion being in January or

February and the second a few months later, probably April,

1974.

In response to Mr. nliphant's question as to tho

invited SA Kirsch to attend Harper's Ferry, he was advised

that SA Kirsch attended at the invitation of Assistant to

the Director, Deputy Associate Director Tholas J. Jenkins

who was at that time Assistant Director in charge of

training Division.

Mr. Nliphant asked what the costs were

for meals and lodging at Harpes's Ferry and SA Kirsch

advised that at best he could recall the costs were not

excessive and probably $12 to $15 covered the entire affair.

Certainly no more than $20 was expended at either of the

two outings by SA Kirsch. SA Kirsch did not recall exactly

who collected for the meals but belleves it was probably

MI. John Mohr.

Mr. Oliphant asked what the table stakes

sp. Did _ Were at Harper's Ferry and SA Kirsch advised that, while

Dep. AD Adm. -

Dap. AD iy. he could not recall specifically, he belleved they were

Admin. -

rather low, perhaps 109 and 25f.

Comp.-Syst. -

Ext. Affairs —

Files & Com. I,.

SA Kirsch was specifically asked if he had/ met

Gen. Inv. -

Ident..

Nt. Joe Tait at which he replied that he had met hid on one

Inspection -

or two occasions but that he wouldn't know Joe Tait if he

Intell. -

Laboratory

met him on the street. Fle was then asked if he knew

Spor. & Evel = TJM: 1hb

ORIGINAL AND ONE COPY 10 AG

Training -

Legal Coun. —

62-116464729

SEE NOTE PAGE 2

Telephone Rm. -

Director Sec'y -

MAIL ROOM L

TELETYPE UNIT L

NW 68486 Docld:32989711 Page 234

GPO: 1975 0 - 569-920

---

## Page 235

HOUSE SELECT CONMITISE ME IUTEULICLNCI ACTIVITIES (HSC)

RE: U.S. RECORDILIG COMPANY

fix. Gus Dberdick. 5A Nirsch advised that he has seen

lir. Oberdick a half dozon necasinns during the past 20 years

and noted that lir. Mberdick vas a friend nf Inner Spocial

Agoni in Charge (SAC) Henry Sinan. SA Misch stated that

he did not believe Gus berdick would knn hin if he mere

to see hin on the street. Ir. Oliphant astod if SA Rirsch

hod ever been assigned in the soninistrative Division to

which he replied ns. fir. Nliphant asked if SA Kirsch hed

ever arranged In the purchase of any let chinicement

equipment Fron lix. Aberdick In which he replied no.

fir. Mliphant asked if SA Klisch had ever recormended any type

of reapon or equiprent be purchased in the police line at

which time he was coviscd that sa Klrsch had in fact, as

part ni his duties, maée recommendatinns for a variety of

such purchases over the past several years. He was advised

that the only large purchase of firearms with which SA Kirsch

had anything to do vas the acquisition of nilitary veaponry

fron the Department nf Defense for use by FBI Apprehension

Teams.

NOTE:

Results of above interview were copied finm

memnrandum V. M. Mooney to Mr. Jenkins, captinned "Houstudy,"

dated 12/10/75, prepared by JMK/jmt, Bufile 62-116464-223.

-2.

NW 68486 Docld:32989711 Page 235

---

## Page 236

Barratt

HiTo

Miatz®

Mr. Males

Raanal!

1r. Cochras

5013858 9, 1978

NOVEL GARNET CORNISTIT DA IITITETNENCE AETIVXNIES

Cella RECOMINE COMPANY

YASAIAl PATPORA DI (SO AARLINY MAN dA MINÜNKS DA YA1ч07FR ond

сережу.

of tia takaraden.

oniy attor person present tras e sele

ІХ ТАЧАЙ ІПІАТРОЇ КРИ ОТіЇ ІНУПІА·ЕПО» «РАХ

mad that be van dalyanted salt Malal of tro 8t4rgun0y

NO UTATUS BAYKUNY LUAT DÍN HUTIRR DOLOX tO DATORING UAlE CalAI

had conslatod printily al tapo santysas, palaurtini

AxAnationt, sint inglonutta; ai fu Mul HIJY ITATUAROY tAdIo

818847279г

on tan die are not headates

WitS ME. IALE but that

rolat10n4k10 4143

той ты

BINCTISALE DACILIATE

side

Mortal a pete mart by befo

Assoc. Dir. -

Dop. AD Adm. 2

Dop. AD Inv. —

Asar. Diral

AdmaIn. -

Bless

Comp. Syst. —

Ext. Aftalra.

Flles & Com.

Gon. Inv. -

dont. -

napaetlon -

Intell. -

Laboratory

паВ ПАНТНТЙ Іт; "

S470 Who

vax of Hoo

our Roch

170101

0078I

WW G8486 Dold:: 2989711 P:

ORIGINAL

ONE COPY TO AG

TELETYPE UNIT O

62-118464-29002

---

## Page 237

HOUSE SELECT CONMITTEE ON INTELLIGENCE ACTIVITIES

SA Verven atated that he vas not acquinted in any

He stated

International, marketed eleccronic surveillance equipnent,

buc that he had not had occasion to nake any purchases from

such a firm.

When questioned concerning a bottle capper

invention allegedly patented by Mr. Tolson, SA Verven advised

he had no knowledge concerning the matter.

In reply to

questions concerning personal services provided at the homes

or Bureau officials, SA Verven stated that he was aware of

periodic visits maão by Radio Enginecring Section personnal

to the homes of Bureau officials for the purpose of checking

cheir telephones and telophone

lines for the presence of

clectronio surveillance devices. He further alvised that he

wan aware of some

telovision servicing being providod in order

that outside persons would not have access to the Bureau

official's home with the possibility of such persons

electronically compronising the promisas.

To go be hi sure are coat at oven

andio test equipment and that almost all of such test

aquipment was purchased from eSA Schedule.

He stated further

that prices on equipment not available on CSA Schedule wore

obtained from the supplier's catalog, with little os no price

discounting experionced wich this type of equipment.

-2 .

NW 68486 Docld:32989711 Page 237

---

## Page 238

-=

62-116464

January 13, 1976

HOUSE SELECT COMMITTLE ON INTELLIGENCE ACIIVITIES (HSC)

U. S. RECORDIIE COMPANY

On Becember 9, 1975, Mr. G. S. McMichael,

Section Chief, Procurement and Administrative Services

Section, Administrative Division, In the presence of

Speclal Agent Dennis Miller, Legal Counsel Division,

was interviewed by Mr. Tirothy liphant, HSC Staff Member.

No notes were taken during the interview by above-named

Bureau personnel. However, the following questions and

ansters as recorded on paper the same date as the intervie

finm the recollection of Mr. McMichael are set forth:

Q. How long have you known Mr. Tait?

A. From the early fifties.

Q. Has the Bureau purchased confidential equipnent

other than fron U. S. Recording Company?

As Yes.

Q. How do you know that equipnent should be purchased

through a "eut out"?

^ The decision is determined by the Laboratory and

Assoc. Dir. —

is so set forth on the reguisitions.

Dep. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Admin.

Comp. Syst.

Ext. Affairs

Files & Com. -

Q. Who in the Laboratory makes the decision that

the equipment should be purchased through a

"cut out''?

Gen. Inv. -

Ident. -

Inspection.

TJM:1hb

ORIGINAL AND ONE COPY TO AG

Intell. -

Laboratory -

Plan. & Eval. -

Spoc. Inv. -

Training

Legal Coun.

Telephone Rm. -

Director Sec'y -

MAIL ROOM E

NW 68486 Docld:32989711 Page 238

1116444-

TELETYPE UNITI

EMCLOSHPE

SEE NOTE PAGE 3

WOES

fur

GPO: 1975 0 - 569-920

---

## Page 239

ENUSE SELECI CAMITICE OU INLOLLIGUNCE AGTIVINIES (ISC)

RU: U.S, RECORDING COPALTY

• is. The request received by the ¿oninistrative

División cones finn tha issistant Director's

nifice nf the laboratnry.

Q. Whn in the Bureau dotermines whether or not the

price is in line when purchasing thrnugh a

A. Tho satay to dive and ponde to a tint 28n0.

Q. Did lix. Tadt spend Ints of tire in lic. Inhr's

nffice?

A. lint in my knnvledge.

Q. Did lic, lait spend Ints ni time in the Labaratory?

do int in my kanwledge.

Q. In you knot about any confidential papers being

taken in Harper's Ferry to be destroyed?

A. Abslutely not.

Q. Have you ever been nut sociolly vich lit. fait?

A. Yes. I have had lunch with nthers when lit. lalt

tias prosent.

Q. Did you ever see lis. Tait pick up the bill?

A. lint in my knnwledye.

- 2 -

NW 68486 Docld:32989711 Page 239

---

## Page 240

HOUSE SELECT COMILTEN ALI INTELLIGENCE ACTIVITIES (ISC)

RE: U, S. RECONDING COMPANY

4. Did any non-Govertment emplyces, present ni

Enrmer, nther than kir. lalt and Mr. nberdicl:

play cards in the genup at Harper's Ierry?

A.

lot that I recall.

Q. Iho invited you to play?

A. Bir. J. P. Mhr.

Q. Did you pay?

A, Yes. $35.00.

Q.

When purchasing itens finn ir. berdick, that

mathnd is used?

lix, "berdick's company is not used as a "cut nut."

He funtes on items the same as nther companies.

Smetimes he is Inw and sonetimes he is high.

Is Nir. berdicl: ever given preferential treatmant

nver nther companies?

An Abenlutely nt.

O. Are the majority nf purchases made by the FBI

taken fron GSA contracts?

A. Yes.

NOTE:

Material was copied from memnrandum G. S. McMichael

to Mr. Walsh, captioned "Interview - Pike Committee," dated

12/9/75, prepared by GSM:sam.

- 3 =

NW 68486 Docld:32989711 Page 240

---

## Page 241

1 - Mr. Bassett

1 - Mr. Mintz

1 - Mr. Walsh

1 - Mr. Wannall

cocnrai

= Mr: Harwar

December 30, 1075

HOUSE SILICT COM ITTEE ON

INTELLICENCE ACTIVITIES;

U.S, RECORDING COLOPADIY

Ch December 17, 1975, staff members Tim Cliphant and

Richard Vermeire of the captioned Committee met with Assistant

Director Jay Cochran, Jr., who is in charge of the T'EI Laboratory.

The purpose of the riceting was to discuss the Bureau's procadures

for proturing tecanical equipment with particular reference to that

procured through confidential cannels; namely, U. S. Recording

Company. The discussion was not under oath nor was any written

Statement provided.

In resgonse to questioning lit. Cochran Advised Meacre.

Oliphant and Vermeire that he has been assigned to the laboratory

Since September, 1373, first as the Deputy Assistant Director

and then in lay of this yeur as to csictant Director. They wero

also advised that prior to September, 1073, he had not bean involved

in nor familiar with any procurement procedures utilized by the

Eureau with regard to technical equirment.

Mr. Cochran advised them that the general procedure for

procuring technical equipment is as follows: the Inboratory in

responcible for specilying and recommenting the purchace of all

technical equipment based upon our knowledge of the "state of the

art" and an existing need of the bureau for particular eguipment.

This need and justification together vita specilications for fro

cquigment, as well as the estimated cost, are furnished the

Assoc. Dir. -

Maninistrative Elvision with a recommendation that purchase bo

Dep. AD Adm. -

Dep. AD Inv. -

mase. The cost figures furnished are determined from availablo

Asst. Dir.:

Admin.

industry sources, manufacturer's listed prices, and general

Comp. Syst.

Inordedge of the particular aret. In thoso instances viere the

Ext. Affairs

Files & Com.

Gen. Inv.

Ident.

See cover memo J. Cochran, Jr. to Mr. Jenkins dated

Inspection.

JC:bm

Intell.

12/29/75 captioned "HOUSE SELECT COMMITTEE ON

Laboratory

(9)

Plan. & Eval. -

INTELLIGENCE ACTIVITIES; U. S. RECORDING COMPANY.

Spec. Inv.-

Training -

Legal Coun, _

Telephone Rm. =

Director Sec'y -

MAIL ROOM L

TELETYPE UNIT

NW 68486 Docld:32989711 Page 241

42114-167-29219

pun

951-549

---

## Page 242

HOUSE SELECT CONTITTEE ON

INTELLIGENCE ACTIVITIES;

U.S. RECORDING COMPANY

nature of the cquipment or the teehnique icpresented by the

equipmeat is of a confidential nature, the roquest contains a

catoment from the Laboratory that it should be purchased

through confidential channels. Thereafter, the purchasing

arrangements are handled by the Administrative Division of

the FBI.

Lossrs. Oliphant and Vermeire inquired as to whotor or

not the ultimate purchase price paid is subsequently furnished to

the Laboratory for verification and justification of the reasonableness

of any mark-up occasioned by the use of confidential channels of

procurement. Mir. Cochran advised them that as a general rule,

the Laboratory does not have occasion to see the actual payment

order issued for the equipment purchased under these circumstances.

They inquired if Mir. Cochran felt a system of requiring Laboratory revier of

confidential procurement mark-ups would be desirable from the standpoint

of ensuring they were rescomable and justified. Mr, Cochran stated the

Laboratory's position is that such mark-ups are not occasioned by technical.

considorations, but are based on an operational nced falling within the

procurement responsibility of the Administrative Division. In these

circumstances we are paying for a sorvice - confidentility. The fact

that past expericace with U. S. Recording Company has boon highly

favorable in terms of fringe benefits - varranty servico, prompt

ropairs, procurement of scarce items, and the 1150 - are important

factors, but not the main concern in determining reasonableness of

any mark-up.

- 2-

NW 68486 Docld:32989711 Page 242

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## Page 243

yin.

1 - Mr. Bassett

1 - Mr. Mintz

December 17, 1975

INTERVIEW OF ASSISTANT TO THE DIRECTOR JAMES B. ADAMS

BY TIM OLIPHANT OF THE HOUSE COMMITTEE ON INTELLIGENCE

CONCERNING U. S. RECORDING COMPANY

on Intelligence in the presence of Special Agent John Dennis Miller

of the FBI Legal Counsel Division. The stated purpose of the interview

was concerning Mr. Adams' attendance at a poker game at the Blue

Ridge Rod and Gun Club, Harpers Ferry, West Virginia.

Nir. Adams reported that at the invitation of former Assistant

to the Director John P. Mohr he attended one of the social gatherings

during the first half of 1974. He could not provide the exact date but

believed it was in the spring of 1974. The guests arrived Friday evening

and departed around Saturday noon. The expenses were shared by the

participants, Mr. Adams recalling that immediately upon arriving

rxiday evening he was met at the door by Mr. Mohr who advised

Mr. Adams that Mr. Adams' share of the expenses was $25. This amount

was paid in cash immediately upon arriving and was to cover the cost of

the dinner Iriday night, breakfast Saturday morning, a snack at Saturday

noon, and lodging.

There were a number of guests present including present and

former FBI employees and present and former Central Intelligence Agency

employees as well as other present or former Government employees. It

was strictly a social affair and no business was discussed.

Assoc. Dir.

Dep. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Admin.

Comp. Syst. -

Ext. Affairs

Files & Com. _

Gen. Inv. -

Idont. -

Inspection -

Intell..

Laboratory

Plan. & Eval. -

Spoc. Inv.-

JBA: ams I

Training —

Legal Coun. -

1(6)

Telephone Rm. _

MAIL ROOM

Dirch 68486 Docld:32989711 Page 243

TELETYPE UNIT L

Although such outings had taken place over a period of time,

this was the first and only attendance by Mir. Adams. It was Mr. Adams'

recollection that it was subsequent to attending that he learned that Joe

Wait was the member of the Blue Ridge Club through whose courtesy the

facilities of the Club were made available, with the attendees paying all

the expenses

Mr. Tait was in attendance as was Gus Oberdick, neither

of whom was l present or former Government employee to Mir. Adams'

knowledge.

2-1111%1a!

2121

See cover memorandum J.

B:

Adams to

Mr. Callahan, 12/17/15, "U.S. Recording

om natter view by Pike Committee.

---

## Page 244

INTERVIEV OF ASSETANT TO THE DIRECTOR JAMIES B. ADAME

BY TI OLIPHANT OF THE HOUSE COMMITTCE ON INTELLIGENCE

CONCERNING U. S. RECORDING COMPANY

In response to questions, Mr. Adams advised that he did not

believe he had ever heard of the U. S. Rccording Company until recently,

nor was he specifically aware of Mr. Tait's employment with that Company.

He was aware that Mr. Oberdick represented Federal Laboratories and

believed he had been aware of such fact for several years. He believed

he had met Nir. Tait and Mr. Oberdick sometime after commencing his

assignmont to Mr. Mohr's offico as Inspector and Number One Man in

April, 1971. He recalled both had visited Mr. Mohi's oifice, he having

socn them in the reception room on a couple of occasions. It was pointed

out that Mr. Adams' office and desk at that time were located in such a

manner that he was unable to see visitors entering or leaving the recoption

room, located batween Mir. Mohr's office and Mr. Adams' office.

Mr. Adams outlined his assignments at FBI Headquarters and

pointed out that these assignments would not have involved him in

procurement matters, even while assigned to Mr. Mohr'o oifice from

April, 1971, until July, 1972. There was a delineation of worl assign-

ments to facilitate the flow of mail whercby Mr. Adams did not as a matter

of course review matters going in to Mr. Mohr from subordinate divisions

unless such matters fell within the purview of Mr. Adams' responsibilities.

Purchase matters and procurcent matters were not included among

Mr. Adams' responsibilities. Furthermore, when Mr. Mohr would be on

leave he would be relieved by one of the Assistant Directors under his

cupervicion, generally Mr. Callahan of the Administrative Division,

Accordingly, during the normal course of business Mr. Adams would have

had no occasion to ses any matters pertaining to U. S. Recording Company

and he has no recollection of ever having seen such or been aware of any

activities of that Company until just recently.

Mr. Adams was asked concerning recent publicity to the effect

that certain files might have been removed from Mr. Hoover's office and

taken up to the Blue Ridge Club for burning and he advised that he had

absolutely no knowledge whatsoever concerning any such alleged activity.

He pointed out that a thorough inspection inquiry had been conducted with

statements being taken under oath from all pertinent parties without

developing any information that any official files had beon removed from

Mr. Hoover's office and destroyed surreptitiously. Mr. Adams expressed

the hope that the House Committee might see fit to subpoena the writer of

such articles and attempt to force him to reveal the source of tho allegations

in order that the matter might be further resolved.

• NW 68486 Docld:32989711 Page 244

-2 -

---

## Page 245

Dacemker 13, 1975

INTEEVIET OF INSPICTOR THOMAS J. IDENEY, JR. BY TITi

OLIPHANT OF THE HOUSE COMMITTEE ON ZELLIGENCE

CONCEKNING U. S. RECORDING COMPANY

I was interviewed by Tim Oliphent of the House Select Committee

on Intelligence on December 9, 1975. The purpose of the interview was

essentially to develop my attendance at the Elue Ridge Rod and Gun Clubs,

Elliskoro, Virginia.

Mr. Oliphant briefly advised me how my name was

obtained by the Committee, stating that it appeared on a list of names

which John liohr had identified as attendees at the Club for the purpose

of playing poker.

Mr. Cliphant asked me how many times I had been up to the Club.

I indicated I wasn't quite sure but would estimate that it was between six

and eight occasiong, commencing approximately in 1970. Itold

Mr. Oliphant that the invitation was usually extended by Mr. Mohr and

each attendee was requested to share the cost. I told him that I paid 325

on each occasion except for the last one which was $30. This fee covered

room and board, and beverage if one desired, for Friday night and

Saturday morning. Fayment was made directly to Mr, Mohr immediately

upon arrival.

Nir. Oliphant asked if I knew who the member of the Club was

and I rosponded that while I did not know on my initial attendance I did

subsequently learn that Mr. Joseph Tait was a Club member. He asked

if I was aware Mr. Tait was connected with the U. 3. Recording Company

and I said I was not aware of this relationship until I read it in the news-

papers,

Mir. Cliphant then acked if I knew what Gus Okerdick did for a

Assoc. Dir. -

living and I told him I did not become aware of Mr. Oberdick's employment

Dep. AD Adm. _

Dep. AD Inv. _

until one day I bappened to see his name along with Fargo Division while

Asst. Dir.:

Admin.

driving in the Kensington, Maryland, area. Since his name was an unusual

Comp. Syst. -

one, I made inquiries as to whether this Obercick was identical to Gus

Ext. Affairs —

Oberdick and was advised that he was.

Files & Com. -

Gen. Inv. -

Ident.

Inspection.

I'J

Intell. -

mis

!* (6)

Laboratory =

1 - Mr. Bassett

Plan, & Eval, -

• 1/

Spec. Inv. -

1 - Mr. Mintz

Training -

Legal Coun. -

Telephone Rm. -

Based on memo Feeney to Jenkins, 12-18-75, TJF: mfs.

Director Sec'y

MAIL ROOM

TELETYPE UNIT

NW 68486 Docld:32989711 Page 245

---

## Page 246

Intervicw of Inspector Thomas J. Feeney, Jr.

by Tim Oliphant of the House Committee on

Intelligence Concerning U. S. Recording Company

Mr. Oliphant queriod as to whether or not there were other

indivicuals who wore not current or former Burcau employees or

current or retired Government employces who attended the Club. I

told him the only individual I could think of off hand who would fit that

caregory was Joe Ligenmann who I believed was with Ileiro.

Vir. Oliphant then told me it was his belief that Mr. Eigenmann was

connected with the Government. I was asked if any business was

conducied during these poker affairs and I told him I did not and could

not recall business keing conducted. They were purely social atfairs.

Mr. Oliphant asked how long I had been assigned to the

Administrative Division and I replied from May, 1961, until my desig-

nation as lir. Jenkins' assictant in April, 1975. I told him thai the

major portion of my carcer in the Administrative Division was in the

Fersonnel Section and that it was not until my assignment as

Mis. Walsh's deputy in September, 1973, that I had any supervisory

responsibilities with reopect to the other sactions in the Administrative

Division. Mix. Oliphant asked for the dates of my assignment as

Mr. Walsh's depuly and iny check with the Personnel Section determined

the antes to be Sopiember 6, 1973, to April 8, 1975. I explained to

Mr. Oliphant that even though I participated in the overall management of

the Divicion, Me. Walsh assumed principal responsibility of the

Procurament and Administrative Services Section. Mr. Oliphant askod

if I could recall approving any contracts involving U.S. Recording

Company and I advised I could not. I explained to him that I was not a

Contracting Ofticer and if I had approved the action of a Contracting

Officer I relied on the fact that the equipment requested was justified

and that we had sufficient funds to pay for same prior to the letting of the

bid or purchase of the equipment.

Iis. Oliphant indicated to me that everyone he had tallied to to

dato had related substantially the same information concorning the poker

affairs. He was very cordial during the interview and thanked me for

the information furnished.

-2-

NW 68486 Docld:32989711 Page 246

---

## Page 247

5 .

62-116464

Jamary 14, 1976

HOUSE SELECT COMMITTEE: ON INTELLIGENCE ACTIVITIES (HSC)

U.S, RECORDING COMPANY

On Invember 25, 1975, Eugene HI. Walsh,

Assistant Director, Administrative Division, FBI, vas

Interviewed by HSC

Staff Members Richard Vermiere and

Tinothy liphant in the sifice of Mr. Walsh, J. Edgar

Hoover Building, Washington, D. C. The interview was

not under oath, wes not recorded and Mr. Walsh was not

advised of his rights. Set forth below are the results

of the interview as recorded oi paper by Mr. Walsh

fron his recollection immediately upon conclusion of

the interview.

The interview comenced with Staff Menbers

asking for a general rundown on the nanner in which

procurement is handled within the FBI. Mr. Walsh

explained that the Bureau adhered to Federal procurement

regulations in this regard and advised that a copy of

these regulations would be furnished to them. Mr. Halsh

also explained the delegation of authority by the

Attorney General to the Assistant Attorney General For

Administration and the redelegation of this authority

to the FBI Dixector to enter into contracts with

certain limitations. It was explained that the FBI

Director had in turn redelegated this authority, in

Assoc. Dir. -

Dep. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Admin..

Comp. Syst. -

Ext. Affairs -

Files & Com. _

Gen. Inv. -

Ident. -

Inspection -

Intell. -

Laboratory -

Plan. & Eval. -

Spoc. Inv. -

Training

Legal Coun. -

Telephone Rm. -

Director Sec'y -

MAIL ROOM

NW 68486 Docld:32989711 Page 247

accordance with regulations, to certain named Bureau

officials including Mr. Walsh, and that Mt. Walsh was

generally responsible foz serving as the bureau contract

officer. In response to a question as to what was the

biggest contract Mr. Walsh had ever administered,

Nr. Walsh replied that it would be a contract amounting

to just under 5 million dollars. HSC Staff Members

walks

TJM: 1hb

ORIGINAL AND' ONE!COPY TO AG

SEE NOTE PAGE.

7

TELETYPE UNIT

2-11646-194

ПРО : 1975 0 - 569-920

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## Page 248

HOUSE SELECI CAMIIITE DI LUNGLLIGLICE ACIIVITIES (HSC)

RE: U.S, ISCORDING COMPANY

experienced difficulty understanding the difference

between procurerent authnrity and authncity in enter

intn contracts, and eventually their questinns centered

no lureau entracts with U. S. Recording Gaupany.

In response in specific questinns, Ex. Walsh

advised Staff Nembers that he was mi acquainted wich

Ix. Inseph Tait, Fresident of U. S. Recording Company,

and that he was

noï atrare no any specific documents

which wuld shot the nrigin of the bureau's relationship

with that company. It was explained in them that the Bureau

awarded confidential contracts nn the basis ni experience

and print relationship which dennstrated an ability

in act responsibly in connectinn with such a contract.

lix. Walsh advised, however, that there were in written

guidelines concerning the abnve, but that was his feeling

as to hor a confidential relationship vas developed.

Pix. Halsh recalled only nne confidential contract which

he had signed as concracting nificer vith U. S. Recording

Company and that contract was executed in June, 1975,

in the appinximate amunt of $168,000. Mir. Walsh stated

that he had ibserved Federal procurement regulatinns

and Departnent nf Justico guidelines and that the

contract had been personally approved by the Attrney

General. USC Staff lombers did nt ast, and no information

vas furnished then regarding the subject matter ni the

enntract.

The interview then turned to a discussinn ne

Mir. Walsh's rcenllectinn as in thn preceded him as

Assistant Direcine nf the laninistrative Divisinn, and

Staff lembers were advised that Mr. Walsh had been

preceded by liz. Il. P. Callahan, uhn had in turn been

preceded by Inhn P. Nnhr, and befnre him lir. Glavin.

Staff lembers inguired as tn Eureau positions held by

lir, linhr, is which lix. Halsh responded that fix. linhr

NW 68486 Docld:32989711 Page 248

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## Page 249

INUSE SELECT COLITICE MI IFIELLTGEACE ACCIVITIES (USC)

Ia: U.S. RECONNING COMPANY

had been Assistant in the Directnr (Administrative)

print to his retirerent and at nne time had been an

Administrative Assistant in lix. Inlson. In response to

specific questions concerning his relationship with

Kir. linhr, Mr. Walsh advised that they had never exchanged

visits to each nther's linmes with nne exceptinn and that

was the nccasinn nf the vedding nf lit. Hohr's daughter

when tr. Walsh did visit the residence ni lik. bohr.

Staff Hembers asked whether ne not Ex. Walsh had seen any of

the gifts that had been given to lit. Nohr upon the

latter's retirement fron the FBI and they particularly

nentinned tun gnid-plated :33 caliber revolvers fashinned

intn brokends.

Mr. Halsh replied that he had no

recollectinn of ever seeing these bookends. Staff llembers

then asked whether assnciates in the FBI customarily

gave gifts to departing nfficials, to uhich tr. Falsh

responded that departing Assistant Directors and higher

nificials were presented with their badges suitably

mounted, a retirement plaque and gnld cufs links.

they

then asked as in thether other retirement gifts might be

given to departing nificials and what part, if any,

lix. Walsh might have played in this regard. Mr. Walsh

explained there is a eustom in the doministrative Ilvisinn,

and he belleved quite generally in other divisions, that

on the last day nf a retiring empinyee's service there

would be a coffee and cake-type gathering in a suitable

Inm within a divisinn, covering the last fun hours nE

the working day, at which time friends and associates

would call, some nf thom wuld present little departing

gifts. In response to his personal participatinn,

lix. Walsh stated he would present a bank ni letters in

the departing emplnyee and it was custrmary in give the

retiring employee a gift fInn his colleagues which, in

the Administrative Divisinn, amunted in seething

purchased nn the basis of a vnluntary contributinn Ernm

Agent colleagues in the divisinn amnunting to approximately

-3.

NW 68486 Docld:32989711 Page 249

---

## Page 250

ENUSE SELECI COMITIES ON ITTELLIGENCE ACIIVIFIES (HSC)

NC: U. S. RECONDIG COMPAT

$1.00 a man. This contributinn vas used in buy the

Tell palate tadan tate in de nann

nate a one a lot at bol trac

he chuld not recall any specitic gifts received by

Lix. Inhr upon the latter's retirement and he had in

Inowledge abnut the pisinle retenced in above.

ISC Staff Members then Inquired abnut the

dogrce ni associatinn currently eristing between lix. linhr

and current Bureau nificials. lir. Kalsh replied that

he knew that lix. linhr had an coquaintanceship vich

curioni and past Bureau nificials but he vas unable in

carment regarding the extent nf this associatinn. Staft

Lembers Inquired unether or not lix. Walsh had ever

played paker at a lodge ma the outskirts of Harper's Ferry,

West Vizzinia, to which Mir. Walsh replied that he had

Then such at an chai had beestatute

Inx regular card players. Vr. Halsh explained that the

nly reason fnr his declinations vas int personal family

reasons.

In response in specific inquiries fron the

Staff lembers, fix. Walsh advised that he did not lint

the nomes of all who participated in the polier sessions,

that he had been aivised by fit. inht that each participant

paid $25.00 which covered expenses for room and fond for

an nvcrnight stay at the lodge usually envering Friday

night and Saturday morning and that he had in lnowledge as

In whether Ir. Tait was in attendance at these card gones.

HSC Staff lembers then inquired as to whecher

the Burcau had any regulatinns dealing wich conflict ne

interest or the acceptance ni gratuities. Mr. Valsh

replied that in such matters the Bureau fnllowed

NW 68486 Docld:32989711 Page 250

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## Page 251

H'USE SELECT COMTITIZE MAI INTELLIGLNCE ACTIVIIILS (HSC)

isecutive rider 11222 dated lay 8, 1965, and Departmental

regulatinns as published in the Federal Register. Copies

nf these docurents vere furnished ts the Staff lembers.

Ii. Walsh, in response in a spocific questini, stated

that acceptance ni a gratuity from any person nt firm

with unich the rBI is doing business is inproper and that

he, himself, had nover accepted as mich as a cup of

coffee frnn anyone with whom the bureau is dring business.

lix. nliphant hastened En inject the crument that in

Implication vas in be read into the questinn and there

certainly tas an intentinn ni suggesting that lix. Walsh

had accepted gratuities finn anyone. Stadt lembers

pressed lit. Walsh as to whether therc would be any

exception in the above regard and he indicated that

exceptinns vere laid nuc in the Iccutive Arder regarding

acceptance ni innd and beverages under certain linited

circumstances. Staff l'enbers then inquired as in thn

paid the expenses when Buresu officials took trips in

eonnection with the awarding of contracts. Er. Walsh

replied that bureau officials would, under such circumstances,

be considered under an nificial duty status and per dion

Mas paid in accordance with standard Goverment travel

regulations. Stail Kenbers wanted in lnow if there was

such a thing as a higher rate of per diem int bureau

nifielals to which lix. lalsh responded in the affirmative

and sutlined the continis the Lureau has inverning the

payment ne the higher rate of per dien.

HSC Staff Nembers then rcturncd In the subject

of purchases and conixects with U. S. Recording Crapany

and vanted in knt thn determined whether the mark-up nn

such purchases was reasonable. fir. Walsh. responded that

as far as he tas concerned the doterninatinn nf reasonableness

was based upon the judgment of Laboratory Divisinn

experts win were aware nf the going price ini specific

= 5 =

NW 68486 Docld:32989711 Page 251

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## Page 252

HOUSE SELLCI COMITINEE ON IIMELLIGENCE ACTIVIITES (HSC)

N: U.S. RECORDING COMPANY

Irens, particularly in the electinnica fiold, and it vas

his understanding that the part-up generally inuld ant

exceed 15 percent and pinbably mould be less. Concerning

this Burcau's rclationship rich U.S. Recnading Enmpany,

ir. Walsh stated in response to spcoitic questions:

that he had never audited the banks of U.s. lecording

Grimpany and that in such audit had been conducted in

had the can

determine the percentage ni mark-up; that as contracting

nificer in tho ne abnve-mentioned contract with U. S.

Reeniding Company, he relied on the judgment rf the

Labrratnry Divisinn experts that the price vas rcasnable

and that he had never made a survey to determine the

histnty nf the develpment nf this Bureau's relationship

with U. S. Recording Company. Is. Walsh then inquired

as in whether such questinns were being addressed in

anynne else mithin the Bureau in which Staff Nembers

responded in the affirmative and added they were astring

Ini available incumentation. Stait lembera then returned

the interview in the subject of lin. Inhr's current

rolatinnship with Bureau nffielals Es which kI. Walsh

again replied that he knew an acquaintanceship existed

between lit. Unhr and sone Bureau nificials but he was in

un positinn to crument regarding the extent of the assn

ciatinn. Stait Members then inquired as in whether or

negative and explained that their sncial relatinnship

was principally through mutual attendance at dinners and

other functinns in which both vore invitees, but ir. Walsh

added that he considered it. Callahan as boch a friend

and assnciate and he belleved the latter's feeling to be

the same toward him.

It should be nted that lit. Walsh vas released

fIon his confidentiality agreement with the FBI Int the

purpose ne the abnve intervier, release predating the

actual intervier.

NW 68486 Docld:32989711 Page 252

---

## Page 253

• .

HOUSE SELECT COMMITTEE ON INTELLIGENCE ACTIVITIES (HSC)

RE: U. S. RECORDING COMPANY

NOTE:

Material copied from memorandum E. H. Walsh

tn Mr. Jenkins, captinned "Interview by Messrs. Richard

Vermeire and Timthy nliphant ni Pike Committee 3:10 PM

tn 5:05 PM, November 25, 1975," dated 11/25/75, prepared

by EWV: jlk.

- 7=

NW 68486 Docld:32989711 Page 253

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## Page 254

1 - Mr. Wilgus

January 9, 1976

HOUSE SELECE COMTITTEE OU

INTELLICELICE ACTIVITIES;

U,S. RECORDING COMPANTY

Radio Engine rang re L Dora Appeared,

as requested, at the ottices of captioned comittee.

For a period of approximately 15 minutes, SA Wilgus

was questioned under oath by state members fichara

Vermiere and Iin Oliphant Who acministered the oath

The proceedings werc taken down by a court reporter,

and arrangements are being made by the Office of

Congressional Affairs to obtain a transcript. No

advice of rights was given, and no one else was

present.

The questioning first concerned SA Wilgus'

assignments since coming to the Laboratory in July

1971 and turned immediately to the procedures for

ordering technical equipment and the use of U.S.

Recording Compaby as a source for such equipment.

Following a discussion of the Section's use of

requisitions, the staff members wanted to know is

there was an accepted mark-up allowed U.S. Recording

for providing confidentiality and whether SA Wilgus

had any infornation, zumor or otherwise, conceming

a tir. Oberdick (phonetic), the Targo Gompany, whether

Mr. Moht or his fanily ever teceived goods or services

fron r. Tate (phonetic) of U.s. According, anc

anything about a bottle-capping

InventiOn INVOLVin

Hir. Parsons for which kix.

Tolson received a patent.

SA Milgus advised the staff members that he had no

Infornation about any of these ratters.

Assoc. Dir. -

Dep. AD Adm. _

Dep. AD Inv. _

Asst. Dir.:

Admin.

Comp. Syst. —

Ext. Affairs -

Files & Com. -

Gen. Inv. _

Ident. -

JLW: mss

(4)

Inspection -

Intell. -

Laboratory -

Plan. & Evel. -

Spec. Inv. _

Training

Legal Coun,

Telephone Rm. -

Director Sec'y -

MAIL ROOM 1

NW 68486 Docld:32989711 Page 254

TELETYPE UNIT

62

-114 4104-2921

GPO 954-545

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## Page 255

1 - Mr. Perry

January 9, 1976

HOUSE SELECT COMMITTEE 017

ILTELEIGENCE ACTIVITIES:

U.S. RECORDING COLPAITY

BEaLE Counsel

to the captioned cormittee. SA Perry was not advised

of his rights.

present.

The reporter tas the only other person

In response to questioning, sh terry

advised that he had vorked as an investigative special

agent in the Washington Field Office prior to being

transferred to the TBI Laboratory in April 1969 where

he worked as an examiner in the flold of fireams and

toolnark identification until August 1975 when he vas

appointed Unit Chief of the Security Rescarch Unit.

SA Perry advised that he bad not ordered any

confidential surveillance equipment, Imew nothing about

the U.S. Recording Company and was not acquainted with

Hessis, Tate and Obordick (phonetic) -

In response to questions relating to li. John

Lohe, SA Ferry advised that he was acquainted with

lix. lohr on an official basis and that he had heard

Irmors that Laboratory personnel had provided certain

unspecified services to the Mohr residence.

SA Perry

stated that he heard no cucors that lit. Hohr had

Icecived gratulties and/or kickbacks nor any pertaining

to Laboratory personnel providing services for an auto-

mobile belonging to a member of the lohr fanily.

Further, SA Perry stated that he had not heard runors

pertaining to bottle caps.

Assoc. Dir. -

Dep. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Admin. -

Comp. Syst. -

Ext. Affairs _

Files & Com. -

Gon. Inv. -

Ident. _

Inspection

MWP:mss

(4)

Intell. -

Laboratory

Plon. & Eval.

Spoc. Inv. -

Training -

Legal Coun.

Telephone Rm. -

Diroctor See'y -

MAIL ROOM L

NW 68486 Docld:32989711 Page 255

TELETYPE UNIT

62-11=

CiTO 954-346

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## Page 256

SEE INSTRUCTIONS ON REVERSE

BEFORE COMPLETING.

CLASSIFY AS APPROPRIATE

TO :

Intelligence Community Staff

ATTN: Central Index

FROM:

F'EI

SUBJECT: Abstract of Information Provided to Select Committees

1. HOW PROVIDED

(check appropriate

If a document was made available

for review

but not transmitted,

so note.)

DOCUMENT\

BRIEFING

INTERVIEW

TESTIMONY

TOTHER

2. DATE PROVIDED

1/20/76

3. TO WHOM PROVIDED (check appropriate term;

add specific names if appropriate)

The Attorney General with a copy for forwarding to the

White House

4.

5.

SSC

HSC

¡DEerVieweT, destroyide de sulptire data for documents; five name or identification number of briefer,

Memorandum reporting results of Interviews by HSC Stoff Members of

former SA Joseph I, Comloy and SAC Thomas Farrow, Incumbents SA's

John M. Kirsch, G.Oven Verven, G.S. lickichacl, Jay Gochren, Jr.

170023

Adams, Asst Dir.

wise

state verbal request of (name), initiative, subpoena, etc.)

INFORMATION (enter

U,

C,

s,

TS or

Codeword)•

NA

KEY WORDS (enter

the appropriate key words from the list provided separately; if key words not listed are

used underline

for emphasis)

Operating procedures

8. SUMMARY (see reverse

side before completing this item

11l vere interviewed regarding their knowledge of the U.s.

Recording Co., Joa Tait, Gus Oberdick and the poker games at

the Blue Ridge Rod and Gun Club, Haryers Ferry, I. Va.

62-116464

FMK: Emk

(4)

ORIGINAL VIA LIAISON TO CENTRAL COMMUNITY INDEX

IN CONNECTION WITH HOUSTUDY

TREAT AS VELLUU

379 | (6-751

NW 68486 Docld:32989711 Page 256

CLASSIFY AS APPROPRIATE

---

## Page 257

INSTRUCTIONS

• Type or print clearly in ink.

• Indicate classification of the abstract top and bottom.

• Date the abstract and put on any internal control numbers required.

"FROM" entry should clearly identify the organization providing the

information.

• If additions (as when a copy of document sent to SSC is later sent to

HSC) or changes to a previously submitted form are necessary, submit a

copy of the original abstract, with the change indicated.

SPECIFIC ITEM NO. 8. SUMMARY - enter brief narrative statement describing

substance of information and showing relationship to Intelligence Community

matters if appropriate. Any feedback or evidence of investigatory interests

should be noted. Commitments made to supply additional information should be

noted. Additionally, certain administrative information may be entered here,

e.g., restrictions on review of a document, if document was paraphrased, whether

interviewee is current or former employee, etc. If actual document or transcript

is provided, that fact should be noted and no summary is required. Additional

pages may be attached if necessary.

NW 68486 Docld:32989711 Page 257

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## Page 258

The Attorney General

Director, FBI

U. S. HOUSE SELECT COMMITTEE

ON INTELLIGENCE ACTIVITIES (HSC)

1

J. B. Adams

2 - Mr. J. A. Mintz

(1 - MI. J. B. Hotis)

1 - Mr. W. V. Cleveland (Route.

Through For Review)

January 20, 1976

1 - Mr. W. R. Wannall

1 - Mr. W. A. Branigan (Route)

Through For Review)

1 - Mr. W. D. Cregar

1 - Mr. T. J. McNiff

Reference is made to HSC letter dated December 1,

1975, requesting access to documents and other information

from the FBI pertaining to accounting practices and

procedures as they relate to the operation of proprietaries

maintained by the FBI and this Bureau's reply to the HSC

dated January 7, 1976, advising that specific agreed-upon

materials, responsive

to the above request, are available

for review at FBI Headquarters.

in January 9, 1976, HSC Staff Member Charles

Maddox appeared at FBI Headquarters and reviewed the

above-prepared material.

In January 15, 1976, Mr. Maddox

appeared at FBI Headquarters and made available a draft copy

of material concerning FBI proprietaries which he proposes

to include in the final report setting forth the results

of the HSC inquiry into FBI operations. Mr. Maddox requested

that this material, a copy of which is attached, be revieved

for the purpose of determining whether the information

contained in the draft material neficil classified.

622-1160441

4-291

Enclosed for your approval and forwarding

to the

HSC 35

the original of a memorandunowhich constitutes this

Bureau's response to the request of Mr. Maddox.

Assoc. Dir..

Dop. A0 10:3

Dep. AD Inv.

A copy of this memorandun is beingifurnished for

Asst. Dir.:

your records.

'"!!

BEUt."kt

Admin. _

Comp. Syst. —

Enclosures (3)

Ext. Affairs

Files & Com. -

Gen Invest

62-116464

Ident.

Inspection u

Intell.

1 - The Deputy Attorney General

Laborotory•_

Attention:

Plan. &-Evale-

Michael E. Shaheen,

JI.

Spec. Inv. TJM: 1hb (hb

Special Counsel for

Training -

Legal Cour. _

Telaphone Rm. -.

* (12) j

Intelligence Coordination

direc

*MAIL ROOM

848- B.Cld: 32089711 Page 258

TELETYPE UNIT

GPO: 1975 0 - 569-920

mine

•)

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## Page 259

•

62-116454

1

-

J. B. Adams

2 - MX.

J. A. Mintz

(1 - Mr. J. B. Hotis)

1 - Mr. W. V. Cleveland (Route

Through For Review)

1 - Mr. W. R. Wannall

January 19, 1976

1. - Mr. W. A. Branigan (Route

Through For Review)

1. - Mr. W. 0. Cregar

U. S. HUSE SELECT COMITTEE

1 - MI. I. J. McNiff

ON INTELLIGENCE ACIIVITIES (HSC)

Reference is made to HSC letter dated December 1,

1975, requesting access to documents and other infor-

mation from the FBI pertaining to accounting practices

and procedures as they relate to the operation of

proprietaries maintained by the FBI and this Bureau's

reply dated January 7, 1976, advising that specific

agreed-upon tiaterials, responsive to the above request,

are available for review at FBI Headquarters.

on Jamuary 9, 1976, HSC Staff Member Charles

Maddox appeared at FBI Headquarters and reviewed the

above-prepared material. In January 15, 1976, Kir. Maddos

made aVailable to a representative of this Bureau a

draft copy of pertinent sections of a report prepared

by him containing material relating to this Fureau's

operation of proprietaries and requested that this

materlal be reviewed for the purpose of determining

whether information contained therein requires classification.

A review of the above material vas made by a

representative of this Bureau and a determination made

that the material prepared by fir. Maddox does not requize

classification.

Assoc. Dir. -

Dep. AD Adm. -

Dep. ADI. - 1 - The Attorney General

Asst. Dir.:

Admin.

Comp. Syst. -

Ext. Affairs -

Files & Com. -

TJM: 1hb (hb

(11)

Gen. Inv. —

Ident. —

Inspection ..

Intell. -

Laboratory

Plán. & Eval. -

Spec. Inv. -

Training -

Legal Coun. -:

Telephone Rm. -

Director Sec'y — MAIL ROOM [

TELETYPE UNIT L

68486 Docld:32989711 Page 259

ORIGINAL AND

ONE COPY TO AG

WrE

NOTE:

Da rendered by one at Alert Thomas J, 24)

as presented; by Mr. Maddox,

Intelligence

Division.

GPO: 1975 0 - 569-920

---

## Page 260

.. PIE ROLE OF PROPRIETARIES

IN CERTAIN GOVERNMINI AGENCIES

INTRODUCTION

Our investigation showed that intelligence

connected proprietaries have been established by the

Army, Navy and Air Force within the Department of

Defense and the Federal Bureau of Investigation (FBI).

"Although the Department of State has an intelligence

gathering mission, the Department advised the com-

mittee that proprietaries had

never been, used as a

front in their

intelligence gathering activities.

The proprietaries owned by the Military Services

and the FBI were established to provide a method of

gathering raw intelligence data or to support the

• clandestine activities of U.S. agents in such a man-

ner

that any direct connection between the u.s.

government is hidden and would appear non-existent.

12-116-464-291

Engine

--NW.68486 Docld:32989711 Page 260

---

## Page 261

The FBI utilizes proprietaries in both the for-

eign counterintelligence and criminal fields. In

the former, proprietaries are operated for the purpose

of collecting raw foreign counterintelligence infor-

mation, training of personnel and testing of equip-

ment. In criminal matters, the FBI has, on occasion,

operated proprietaries for the purpose of collecting

evidence to be utilized in the prosecution of indi-

viduals engaged in criminal activities falling within

the Bureau's jurisdiction. ri

Size of the Proprietary Operation.

a

ENW_68486 Blocld:32989711 Page 261

---

## Page 262

FBI proprietaries

are, in. the criminal investi-

gation field, essentially small operations with a

short life span. Since their mission is to collect

evidence for the prosecution of individuals engaged

in criminal activities falling within the Burcau's

jurisdiction, the successful prosceution of the

criminal chas the necd for the proprictary and the

NW 68486 Docld:32989711 Page 262

---

## Page 263

project is liquidated. Proprietaries formed to

deal with counter-intelligence as it pertains 'to

foxeign nationals engaged in their country's

intelligence effort carried out in the United States

may or may not be a short range project. Counter-

intelligence information is exchanged with appro-

priate agencies in the intelligence community.

Our review of financial records covering FBI

proprietaries and conferences with FBI officials

disclosed that about $1.5 million has been spent

in capital outleys and operating expenses since

their inception about six years ago, proprietary have used

emptoyees numbering at various times

• from 5 to 15

employees.

ate undercover FBI agents.

Operation of these proprietaries has involved

the 'purchasing, leasing and/or renting of real

property. In each instance, safeguards to protect

the government's interest in the proprietary have

been reviewed within the Bureau and the Department

• of Justice. Accounting controls of financial manage-

ment are handled by FBI internal auditors.

The FBI does not have specific regulations,

classified or unclassified, to cover the formation,

operation, or liquidation of a proprietary. We were

advised that safeguards to protect the governments

interest in each proprictary are revieved within the

Bureau and by the Department of Justice.

From

≤ NW 68486 Docld:32989711 Page 263

---

## Page 264

our discussions with FBI personnel, we believe spec-

ific safeguards on real and personal property held

by the proprietaries is similar to those employed

by the CIA and the military services, and not with

standing a lack of specific proprietary regulations

the safeguaras are adequate.

Profits

.

The FBI's proprietaries do have in most instances

legitimate source of income from commercial

sources.

However, the income is seldom sufficient

to offset operating expense and the necessary

infusion of funds is reflected on financial state-

ments in a variety of ways.

Federal, State, and local taxes, as reflected

in the financial statements examined, have been

paid, but arc minimal, que to operating expense.

excooding income in most instances. An FBI

spanis no tax audits have ever been

performed.

-NW=8486-@ocld:32989711-Page 264

---

## Page 265

1....

5-140 (Rev. 1-21-74) FEDERAL BUREAU OF INVESTIGATION

WASHINGTON, D. C. 20535

Addressee:

OLTR

HOUSE SELECT COMMITTEE

20

[XI LHM

Report dated _

1/79/76

Caption of Document: U. S. House Select Committee HSC)

*HSC letter 12/1/75)

Originating Office: -

FBI

olivered by: 5.0. Stassinos Dato: 1/55/76

Return this receipt to the Intelligence Division, FBI

- a comes

901919-271119

6i 11:54:5, = 241

NW 68486 Docld:32989711 Page 265

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## Page 266

SEE INSTRUCTIONS ON REVERSE

BEFORE COMPLETING.

CLASSIFY AS APPROPRIATE

FROM:

TO:

Intelligence Community Staff

ATIN: Central Index

FBI

SUBJECT: Abstract of Information Provided to Select Committees

1. HOW

PROVIDED (check

appropriate

If a document was made available

review but not transmitted,

so note.)

* I DOCUMENT

BRIEFING

INTERVIEW

TESTIMONY |

OTHER

2. DATE PROVIDED

1/20/76

3. TO WHOM PROVIDED (check appropriate term; add specific names if appropriate)

SSC

HSC

4.

IDENTIFICATION (provide

descriptive

data for documents; give name or identification number of briefer,

interviewee,

testifier and subject)

Memorandun

5. IN RESPONSE TO (List date and item number

wise

verbal

request

if in response

of (name),

initiative,

subpoena,

at e formal request, other.

HSC letter 12/1/75

4y undo fentor the ppasopriate key words from the list provided separately: if key words not listed are

Operating procedures

8. SUMMARY (see reverse side before completing this item)

Avallable for review by appropriate HSC Staff Members at FBIHQ:

Materials pertaking to accounting practices and procedures as

they relate to the operation of proprietaries. After the review.

a draft was submitted of pertinent sections and requested that

this natorial be revieved for the purpose of determining whether

infornation contained therein requires classification.

62-116464

FMK: fmk

(4)

ORIGINAL, VIA LIAISON TO CENTRAL, COMMUNITY INDEX

IN CONNECTION WITH HOUSTUDY

TREAT AS YELLOW

CLASSIFY AS APPROPRiATE

379 | 16-751

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## Page 267

INSTRUCTIONS

• Type or print clearly in ink.

• Indicate classification of the abstract top and bottom.

• Date the abstract and put on any internal control numbers required.

• "FROM" entry should clearly identify the organization providing the

information.

• If additions (as when a copy of document sent to SSC is later sent to

HSC) or changes to a previously submitted form are necessary, submit a

copy of the original abstract, with the change indicated.

SPECIFIC ITEM NO. 8. SUMMARY - enter brief narrative statement describing

substance of information and showing relationship to Intelligence Community

matters if appropriate. Any feedback or evidence of investigatory interests

should be noted. Commitments made to supply additional information should be

noted. Additionally, certain administrative information may be entered here,

e.g., restrictions on review of anjocument, if document was paraphrased, whether

interviewee is current or former employee, etc. If actual document or transcript

is provided, that fact should be noted and no summary is required. Additional

pages may be attached if necessary.

or r 1094

NW 68486 Docld:32989711 Page 267

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