Monday, November 9, 2009

Sensitive Activities Performed by the Office of Logistics

14 MAY 1973

MEMORANDUM FOR: Director of Central Intelligence

THROUGH: Deputy Director for Management and Services

1. This memorandum contains information for the Director of Central Intelligence.

2. This memorandum is submitted pursuant to advice given by the Deputy Director for Management and Services on 7 May that Office Directors report on activities, either under their cognizance or otherwise known to them, the nature of which could possibly need explanation or justification when viewed within the statutory responsibility and authority of the Director of Central Intelligence. The responsibilities of the Office of Logistics (OL) are such that in all matters herein reported, except two, the actions undertaken were at the request of another Agency component. We have prepared a brief description of each action involved and then have included the name of the sponsoring component. The substantive reason for the requests for action by this Office will have to be determined by inquiry to the designated sponsoring component.

3. Facts pertaining to both actions undertaken at the initiative of this Office are as follows:
[...] the DD/O, we will not honor any requisition for surveillance equipment unless it has been approved by the CI Staff of the DD/O.

4. Within the area of contractual responsibilities, the following items are pertinent:

a. In February 1971, Colonel L. K. White, the then Executive Director-Comptroller, called me to attend a meeting in his office, also attended by Mr. William Colby. Colonel White explained that the Technical Services Division (TSD) had been requested to provide assistance to the FBI for a sensitive project designated [...] (currently designated [...] Colonel White did not disclose the purpose of the assistance being provided by TSD but did instruct me to assist TSD on purely contractual matters. Since the Office of Logistics has no information concerning the mission or purpose of Project [...] substantive questions concerning the subject should be addressed to TSD. Other procurement actions accomplished for the FBI are reported below. Specific mention is made, however, of [...] because of the dollar magnitude, approximately $1 million, and the complex technical equipment that has been involved in the undertaking.

b. The Procurement Division, OL, currently has two requisitions in hand from TSD which would involve reimbursable sales to the FBI. One such requisition in the amount of $36,900 is for two Westinghouse television cameras. The second requisition in the amount of $11,200 is for two wide-angle surveillance probes manufactured by Bausch and Lomb. No action is being taken on either of these requirements pending further instructions which will be sought from the Deputy Director for Management and Services.

c. Over the years, this Agency has often supported other Government agencies from a contractual or materiel standpoint. Upon the submission of an officially approved request, supported by a transfer of funds, the Agency would either enter into "accommodation procurements" for the requesting agency or support the requesting agency by the issuance of materiel from stock. Such actions are legally accomplished under the Economy Act of 1925. This Act authorizes one agency to support the needs of, or provide a service for, another Government agency when such action would be more economical and eliminate the need for one agency of the Government to duplicate facilities readily available from another. A typical example of this procedure is purchasing photointerpretation gear for the Defense Intelligence Agency element located at NPIC. In connection with the current reporting requirement, however, I have had our records researched for the past 2 years and Attachment 1 reflects those transactions which appear to be relevant to the subject of this memorandum.

d. In connection with the disclosures during the summer of 1971 that the Rand Corporation was not properly safeguarding classified documents, this Office undertook two acts. I directed the Security Officer from our West Coast Procurement Office at the Moffet Naval Air Station in California to visit the Rand Corporation and satisfy himself that classified material furnished them by the Agency was both properly safeguarded and accounted for. His report was affirmative. On 23 August 1971, the senior Security Officer assigned to this Office forwarded a letter to the Rand Corporation stressing and reaffirming the procedures Rand must follow in safeguarding classified information furnished them by the Agency. Of residual interest in this matter, there is summarized the contents of a memorandum of 2 July 1971 to the Executive Director-Comptroller from the DD/I which is in our possession.

This memorandum reports that FBIS regularly disseminated reports to the Rand Corporation but that instructions had been issued to cease distribution of classified reports. While no other direct dissemination went to Rand, other USIB agencies, primarily USAF, were passing "many" copies of DD/I products to Rand as authorized under USIB regulations. The memorandum also states that Rand personnel had requested searches and document retrieval from the CRS facility.

5. In connection with action taken for the Office of Security, there are three relevant items:

a. The Printing Services Division, OL, was requested by the Office of Security to print a book written by Harry J. Murphy, Office of Security. The book was prepared by Mr. Murphy under a Brookings Institution Federal Executive Fellowship. The book is entitled "Where's What -- Sources of Information for Federal Investigators." It is a full treatise on the existence of sources of information that may be useful to an investigator. The book's first printing of 300 copies was made in June 1967. Due to demand, a second printing of 600 copies was made in September 1968. The title page of the book gives attribution to Mr. Murphy, Office of Security, Central Intelligence Agency, and the Brookings Institution Federal Executive Fellowship. The book is classified Confidential, and it is our understanding that the distribution was made to appropriate agencies of the Federal Government. A copy of Mr. Murphy's book can be made available for review if desired.

Sometime in 1972, a representative of the Law Enforcement Assistance Administration (LEAA) requested that the Agency give consideration to our publishing, at LEAA expense, an unclassified version of this volume. It was the intent of LEAA to make broad-scale distribution to Police Departments throughout the country. The Director of Security and I consulted on this matter and jointly determined that the LEAA request should not be honored because the Agency should not put itself in the position of publishing law enforcement material for general and unclassified purposes, and it would be an abuse of our printing facilities.

b. On 5 January 1971, the Director of Security requested that I approve his leasing up to eleven motor vehicles for use in connection with a special support operation which would last approximately 3 months. The Director of Security informed me, in his requested memorandum of 5 January 1971, that "This support activity has been undertaken at the specific instruction of the Director and has his personal approval." The request was approved.

c. From 1968 to date, the Office of Security has requisitioned from this Office a considerable amount of materiel which we understand was to be given or loaned by them to local Police Departments. In certain cases some of this materiel was issued from Agency stocks and, in other cases, direct procurement of the materiel was made by funds furnished by the Office of Security. A complete listing of such materiel is found in Attachment 2.

[...]

b. This Office is aware, although it had no cognizance nor responsibility, that an apartment was rented in Miami Beach, Florida, during the period of the Democratic National Convention, 10-14 July 1972, and the Republican National Convention, 21-24 August 1972. The apartment was used as a meeting place [...] in liaison with members of the Secret Service and rendering assistance in connection with the political conventions that were being held. WH Division is the cognizant operating component on this matter.

7. The above recitation of facts represents, to the best of my knowledge and memory, those matters which appear to be relevant to subject tasking given by the Director.

John F. Blake
Director of Logistics

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