Mr. DELLUMS. No. The CLERK. Mr. Aspin. The CLERK. Mr. Milford. The CLERK. Mr. Hayes. The CLERK. Mr. Lehman. The CLERK. Mr. McClory. The CLERK. Mr. Johnson. Mr. JOHNSON. Aye. The CLERK. Mr. PIKE. Chairman Pike. Ave. The Select Committee on Intelligence will now go into executive session. We will resume at 2 o'clock this afternoon. [Whereupon. at 12:50 p.m., the committee was recessed to reconvene at 2 p.m. the same day.] U.S. INTELLIGENCE AGENCIES AND ACTIVITIES Part 1: Intelligence Costs and Fiscal Procedures WEDNESDAY, AUGUST 6, 1975 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met, pursuant to recess, at 10 a.m., in room 2118, Rayburn House Office Building, Hon. Otis G. Pike [chairman], presiding. Present: Representatives Pike, Stanton, Dellums, Murphy, Aspin, Milford, Hayes, Lehman, McClory, Johnson, and Kasten. Also present: A. Searle Field, staff director; Aaron B. Donner, general counsel; John L. Boos, counsel; Roscoe B. Starek III, counsel; Roger Carroll, Charles Mattox, Edward Roeder, and Emily Sheketoff, investigators. Chairman PIKE. The committee will come to order. We have back with us today Mr. Colby wearing his other hat as the head of the Central Intelligence Agency. Very frankly, Mr. Colby, I sometimes have trouble keeping your hats straight, and I would not be too surprised if you had certain difficulties in that area from time to time, too. I want to just say a couple of things before we go any further. The first thing I want to say is that the Department of Defense is in full compliance with the subpena which the committee issued yesterday. Documents have been delivered to me. I hereby deliver them to our Chiefs of Staff and entrust them to our security. I want to make it very clear to our committee and to our staff that I feel we do have a rather special and heavy burden at this time. I have fought very hard to distinguish the legislative branch of Government from the executive branch of Government in this regard. I have declined to require our staff to sign all of the papers on secrecy of one sort or another which the executive branch sought. We have established our own rules on security and on secrecy. We have established our own agreements on security secrecy, and while there is no way on Earth that I can bind any member of this committee to anything as far as secrecy or self-restraint is concerned, I know that all of the members of this committee are aware of the necessity for this and the implications of some of the documents which are in our hands. We are approximately at the halfway mark in this first phase of our hearings. We have been concentrating on the budget, and I said as I opened these hearings that looking at where the money comes from and where the money goes is a fascinating thing to me. Sometimes the testimony is a little dull, but it is quite revealing. Mr. Kasten, I think it was yesterday, pointed out that the man in the Department of Defense who was designated to be our liaison man in this investigation was a former CIA man. I frankly don't know what his role is at the moment, and I don't particularly care, but I think it would have been somewhat fairer if I had known this at the time when I was told that he was going to be our contact. The budget route has taken us into several contracts which Mr. Dellums brought up yesterday, involving various branches of the Department of Defense and the CIA. We have learned that there are just huge amounts of money which are not included in the socalled intelligence budget, and this is one of the reasons when we first started getting numbers pertaining to dollars that I didn't get too excited about it-because they were not terribly revealing as to the total amount of dollars which we spend in this regard. The budget route cannot be followed indefinitely without other questions being raised. Other questions were raised. Mr. Colby, your name does keep coming up no matter in what particular hat capacity. We try to follow these directives. It is quite possible that today questions will be addressed to you which cover Monday's hat instead of Wednesday's hat, and I hope you will understand that not only do we have some difficulty with this ourselves, but we can't go any other way. You are here. You are our witness. We may want to ask you some questions. Mr. McClory? Mr. McCLORY. Will you yield for a minute, Mr. Chairman? Mr. McCLORY. I want to express my satisfaction with the fact that our subpenas have been promptly acceded to, and that we have the documents that we requested from the National Security Agency. I also want to say insofar as Mr. Colby is concerned, that he has been very forthright and very cooperative with us, which is something that this committee needs in order to do the job we must do. On the further subject of the difficulty of our task in trying to get at the crux of how much the intelligence community is costing our Nation and what is intelligence and what is not, I think there are some very difficult problems presented, where intelligence stops and where national security or national defense begins unrelated to intelligence, but those are judgments we are going to have to make. We have to have not only the direct expenditures, but we have to have these peripheral subjects which we may decide should appropriately be included as part of the overall cost of the intelligence activities of our Nation, and it is only from that broad determination that we are going to find out whether we are getting value, and how we can help to make this a better intelligence system, a more efficient one, a more coordinated one, and a better one insofar as the American citizen and taxpayer is concerned. Thank you. Chairman PIKE. Mr. Colby, I assume you have a prepared statement. STATEMENT OF W. E. COLBY, DIRECTOR, CENTRAL INTELLIGENCE AGENCY, ACCOMPANIED BY MITCHELL ROGOVIN, SPECIAL COUNSEL TO THE DIRECTOR OF CENTRAL INTELLIGENCE Mr. COLBY. I do, Mr. Chairman. You may proceed. Mr. COLBY. Mr. Chairman, at your request, I am here today to discuss the Central Intelligence Agency itself, with particular emphasis on its budget and financial procedures. The Agency, of course, rests on the statutes passed by the Congress in the National Security Act of 1947 and the Central Intelligence Agency Act of 1949.1 The National Security Act of 1947 established the National Security Council and, under it, the Central Intelligence Agency. The Agency's mission was described, under the direction of the National Security Council, in the following terms: to advise the Council; to make recommendations for the coordination of the intelligence activities of the departments and agencies; correlation, evaluation, and dissemination of intelligence; performance of services of common concern centrally; and, in what was deliberately a broad grant of authority, the performance of "such other functions and duties related to intelligence affecting the national security as the National Security Council may from time to time direct." The act specifically provided that the Agency have no police, subpena, or law enforcement powers or internal security functions. The departments and other agencies of the Government, however, would continue to collect, evaluate, correlate, and disseminate departmental intelligence, which should be open to the inspection of the Director of the CIA. CIA was conceived as a central agency drawing upon the other members of the intelligence community, but having a unique capability to perform certain of the missions expected. Its predecessor, the Office of Strategic Services during World War II, was the model upon which it developed, and it included intelligence collection, intelligence analysis, intelligence production, and covert activities in the political and paramilitary fields. The techniques of secret operations and on many occasions the specific individuals and organizations with whom such operations must be conducted are the same as those which provide secret intelligence. In the earliest years of CIA, there was an attempt to conduct these in a separate organizational compartment from the other work of CIA, but Gen. Walter B. Smith, the Director at the time, found that this produced friction, duplication, and inefficiency, so he merged the functions of collection with these other "functions and duties." Mr. Chairman, this chart outlines the organization of CIA. I believe most of the titles are self-explanatory. You will note that the two Staffs that support the Director's community responsibilities are separate from the rest of CIA. There is obviously a great deal of contact and information flowing from CIA to these staffs, but they are There have been certain other specific statutes covering CIA, such as the CIA Retirement Act of 1964 and, of course, the amendment to the Foreign Assistance Act passed in December 1974. with respect to CIA activities other than intelligence gathering. In an amendment to the Law Enforcement Assistance Act passed in 1973, specific provision was made that the Central Intelligence Agency not participate in any LEAA assistance to local law enforcement bodies in the United States. separate entities. In particular, we have made an effort to includ within these community-oriented staffs representatives of the othe agencies in the intelligence community. [The chart referred to follows:] The Central Intelligence Agency The major work of the CIA is carried out in the four main directorates listed there. I will be dicussing their work with you in great detail in executive session, including the numbers of personnel and the specific programs. In line with my comments on Monday, I believe it important that these matters be discussed in public session in broad and general terms in order to give public awareness of our activities. In order, their main functions are the analysis and production of finished intelligence, the work of the first Directorate of Intelligence; the conduct of our clandestine overseas operations and the supporting structures necessary in the United States, in the Directorate of Operations; a special Directorate of Science and Technology which combines the analysis of foreign information in these important fields with research and development of new technical systems for acquiring or analyzing information; and the last, the Directorate of Administration, with the normal administrative services of communications, personnel, finance, logistics, etc. Many of these "normal" aspects of administration, of course, need to be done in somewhat special ways in support of the clandestine operations and requirements of this Agency. Mr. Chairman, this chart illustrates the various functions carried out in CIA. Intelligence is by far our major function these days, and you can see that it is broken down into the collection of the types of information noted, the processing of this information both technically and intellectually by our corps of analysts, and the final production of finished intelligence; that is, the product which goes to the customer. Whereas most of our final product does depend upon classified sources and consequently is classified, we have made an effort to publish in unclassified form such material as we could. [The chart referred to follows:] |