Intelligence Units, and Special Agents in Charge. In emergency situations, Special Agents can make such disclosures.

(b) Special Agents in Charge and Chiefs of Sector Intelligence Units can release CADPIN data only to duly authorized law enforcement agencies that have a legitimate law enforcement need for it. Requests from other organizations are to be declined and the requesting party referred to the Bureau, Office of Investigation, Intelligence Division.

(c) Customs Inspectors, Customs Security Officers, Customs Data Center personnel and others are to decline any requests for CADPIN data from any outside source and refer the requesting party to an appropriate Customs Agency Service office.

(d) Customs officers are not to call the computer Center, San Diego, California, for CADPIN record information. Such requests are to be directed to the nearest CADPIN station. These are listed in this manual.

(e) Computer Center personnel are not to give out CADPIN record information. Such requests are to be directed to the Director, Law Enforcement Data Processing Division for his disposition.

10.3 RELEASE OF PRINTOUTS

When conditions warrant disclosure of CADPIN data to another organization, the information is to be furnished orally or by permitting hand copying. Release of the printout is to be avoided. When release of the printout will serve some legitimate interest, the copy will be identified as to releasing office and date of release and will be stamped with the following statement:

PROPERTY OF THE BUREAU OF CUSTOMS

This document is for the confidential and exclusive use of law enforcement agencies. It is loaned to you by and remains the property of the Bureau of Customs. It contains neither recommendations nor conclusions of the Bureau of Customs. Neither it nor its contents are to be distributed outside the agency to which it is loaned.

A duplicate copy will be retained. The retained copy will be identified as to releasing office, releasing officer, date of release, receiving office, and recieving officer. It will be filed in an appropriate case or .010 file.

10.4 APPLICABILITY OF THE THIRD AGENCY RULE

The third agency rule applies to all releases of CADPIN data. Simply stated, the rule is that information released to an agency cannot be released by them to a third agency without the prior knowledge and consent of the organization that originated and provided the information.

There are two aspects to the application of this rule. The first is that information originated by Customs and provided to another agency is not to be released to a third agency without the prior knowledge and consent of the Customs Agency Service. The second aspect is that information in Customs files which was originated and provided by another agency cannot be released by Customs to a third agency without the prior knowledge and consent of the organization that provided it to us.

ATTACHMENT 6

MATERIALS RELATING TO APPROPRIATION REQUESTS AND TESTIMONY ON THE ADP INTELLIGENCE NETWORK

Supplemental budget request fiscal year 1970

ADP INTELLIGENCE NETWORK

To provide increased intelligence data to support an intensified enforcement effort, it is proposed to establish a central ADP intelligence network. This would be a comprehensive data bank of all suspect information which would be available on a 24-hour a day real-time basis to customs agents and inspectors at all office and inspection points. For 1970 we are requesting 11 positions (7 average positions) for the design and initial programming and for consultant services to assist in establishing and designing a broad customs intelligence system; for performing cost effectiveness studies; and for the use of contractors' personnel and equipment in performance of test model.

For this program in 1970 we are requesting supplemental funds in the amount

of $250,000 as follows:

As an outgrowth of Operation Intercept, and through the outstanding cooperation of the State of California, we are currently operating limited computer-based license plates checks at San Ysidro. The computer being used has been provided for a 6-month period by the State of California. Our future program, as envisioned in this estimate, is far more comprehensive in its coverage, and will eventually be nationwide in its scope and applicability.

The type of system we are planning to install for our use has already been developed by other law-enforcement agencies and can be adapted for our needs very easily and without lengthy development delays. With the funds requested here, we will be able to have this system installed and in operation at our San Ysidro border office by March 1, 1970. After thorough testing, this system will be expanded next year across the entire Mexican border. This system will not only provide us with the capability to identify suspect vehicles immediately, but also we will be able to provide assistance to other Federal, local, and State enforcement agencies in the apprehension of fugitives, stolen vehicles, and other stolen articles. Our main concern, however, is to identify, through cooperation with all appropriate enforcement agencies, persons involved or suspected of being involved in narcotics smuggling. This system can be installed promptly and will work. It will provide a tremendous increase in our enforcement effectiveness at a relatively low cost.

In this connection, Mr. Chairman, I am currently having made an in-house study of the Customs Agency Service, and I understand that one of the study group's recommendations will be that our intelligence gathering and compilation systems need considerable strengthening in order for us to do an effective job. This ADP intelligence network is an absolutely essential part of our efforts to strengthen the intelligence side of the Customs Agency Service.

From these increased enforcement efforts, we can expect offsetting increases in revenues through the intensification of inspection and examination, as well as increased fines, penalties, and seizures.

In summary, to combat effectively the smuggling of marihuana and narcotics, we need more people and equipment. Our enforcement results will be in direct relationship to the increases provided. I know of no way to measure the costs of ineffective enforcement, except by what these costs are in the health and welfare of our youth, in increased crime activity, and in direct expenditures for domestic law enforcement. These costs, however measured, are tremendous in relationship to our small request.

We believe that continued higher enforcement levels in Customs are absolutely essential to our national well-being. Your approval of this request for the balance of 1970 will, of course, affect our 1971 budget as we could not begin to realize the full potential of these new people until 1971 and funds will be required to maintain this level in future years.

Mr. Chairman, this concludes my formal statement. I shall be glad to discuss further any part of our request or answer any questions you may have. Mr. STEED. Thank you, sir.

*

[January 23, 1970]

2. Special projects-(a) ADP intelligence network:

Executive direction..

-$1,100,000

During fiscal year 1971 the Bureau of Customs ADP Intelligence Network will progress from the pilot test stage, which is being undertaken in 1970 to an operational system. The pilot test is planned for March 1970 in cooperation with the Michigan State Police. The Michigan State Police system has already incorporated in it the basic system elements required by Customs, namely, wanted on suspect persons and vehicles. Since hardware and software configurations, as well as systems design, have already been largely accomplished, unusually early operational capability is possible. The operational system in 1971 will encompass the Texas and Los Angeles SCA regions and all inspection stations on the Mexican border.

Providing a logical expansion in the intelligence system coverage will be accomplished through the following schedule:

First Quarter:

1. Training of ADP personnel.

2. Installation of ADP equipment.

3. Conversion from test to operational environment.

Second Quarter:

1. Expand suspect file.

2. Increase terminal coverage to include Calexico, Andrade, and Tecate border crossings.

Third Quarter:

1. Increase terminal coverage to include all CAC and SCA offices in the Los Angeles and Texas Agency Service regions.

Fourth Quarter:

1. Increase terminal coverage to include the remainder of the Mexican crossings.

2. Expand suspect file to include the complete national suspect file and local interest suspects.

General. During the year, as time permits, studies will be accomplished to integrate aircraft and vessel files into the operational system. Programming of this phase of the system will be scheduled on a time-available-basis. In addition, plans and studies for the National Intelligence Network will be accomplished and consideration given to the integration of the system with other Bureau ADP applications.

For fiscal year 1971 we are requesting $1,100,000 for 13 positions (12 average positions), central processing unit and peripheral equipment, and remote terminal devices as follows:

(1) The first stage of our ADP intelligence system is planned to begin operations March 15. Before the end of this year it will be connected with the NCIC (FBI), and with a number of key offices throughout customs. We were very fortunate in that the hardware and software configurations as well as systems design had already been largely accomplished and permitted unusually early operational capability. For fiscal year 1971, we are requesting $1.1 million for an expanded operational system. In 1971 this system will encompass the Texas and Los Angeles Customs Agency regions, and all inspection stations on the Mexican border. We also plan to complete studies in 1971 designed to integrate aircraft and vessel files into the operational system.

PS-1 PROJECT

(2) Continued and rapidly rising workload have necessitated a review of Customs capability to effectively perform its revenue collection work under increasingly severe manpower limitations. In the past, productivity gains partially closed the gap between increased resources and even larger workload increases. It has become apparent that improved procedures will have to be developed to handle future large workload increases. As you know we have had underway, for approximately 7 months, a study of our merchandise processing system which will lead to automating major parts of this important Customs function. We call this PS-1 project, a term I think you have heard before. This study will reach the decision stage late this fiscal year. We are already planning a development effort and must provide adequate funds for it. For 1971 we are requesting $200,000 for manpower, rental of computer and peripheral equipment, and for software development for a pilot test of a system designed to provide automated assistance to merchandise entry and cargo processing. We hope to be able to develop from this test an allnew system that will provide a more effective operation with a capacity for handling future importation increases without corresponding personnel increases. It

will also reduce paperwork, simplify some of our procedures, and provide benefits to the importing public as well as to customs.

The initial installation of an automated intelligence network in San Diego, California, is a major contribution to the Customs law enforcement effort. By the end of the current fiscal year this computer based network will cover the entire Mexican border and a number of other key offices. Not only is it an aid to inspectors by identifying suspect vehicles, but it is providing our Agency Service with a means for storing intelligence data with rapid response for the prompt identification of potential for even greater use in investigations of major narcotic smuggling rings, large scale conspiracies and major fraud cases. We have already in the short period of operation realized good results from 18 productive "hits" which produced more than 3,000 pounds of marihuana, nearly 4 pounds of heroin and 160,000 dangerous drug pills. Fifty-five automobiles have been taken into custody, including several stolen cars for which the local police had established lookouts. In addition to the equipment and manpower already on board in San Diego, we are projecting an additional 26 man-years for computer operations beginning in fiscal year 1972. This increase provides for coverage at the major airports and key border ports. The 1972 funds requested for this project are as follows: