Statement W.E. Colby Director of Central Intelligence Before Defense Subcommittee of the House Appropriations Committee February 20, 1975 Р8 --- Mr. Chairman: Our national intelligence agency, the CIA, is the object of great attention and concern. A series of serious allegations have been made by the press and other critics about our operations and activities. At the same time, a number of responsible Americans are concerned that a degree of hysteria can develop that will result in serious damage to our country's essential intelligence work by throwing the baby out with the bath water. There is equally serious concern within the CIA itself as to whether its personnel can continue to make their important contribution to our country or will be the target of ex post facto sensationalism and recrimination for actions taken at earlier times under a different atmosphere than today's. I welcome this opportunity to describe the im- portance of our intelligence, how it works and what it does, and the small extent to which its activities may in past years have come close to or even over- stepped proper bounds. We certainly make no claim that nothing improper occurred, but we do think it important that such incidents be given only their proper proportion. --- Another responsibility of the Office of Security is the investigation of unauthorized disclosures of classified intelligence. This function stems from my responsibility under the National Security Act to protect intelligence sources and methods against unauthorized disclosure. Thus the Office of Security would prepare a damage assessment and endeavor to determine the source of a leak so that we could take corrective action. Mr. Chairman, CIA conducts a broad program of research and development, largely through contracts with U.S. industrial firms and research institutes. In many such contracts, CIA sponsorship of the project must be hidden from many of the individuals working on the program itself. This was the case in the development of the U-2 aircraft, for example, so that the ultimate purpose of the aircraft, to fly over hostile territory for photographic purposes, would not be known beyond the necessary small circle rather than by the entire work force. Operations of this sort require complicated cover It is for this purpose and funding arrangements. that the CIA does maintain a variety of arrangements 10 --- within the private sector to provide cover and support in the field of funding, insurance, security, and auditing. The Agency's Cover and Commercial Staff arranges this cooperation with U.S. business firms and operates the proprietary activities maintained by CIA, to provide essential cover for CIA's foreign intelligence work. It The Agency's Office of Personnel has a Recruit- ment Division to hire Americans with the required skills and expertise for Agency employment. maintains 12 domestic field offices from which such Agency recruiters operate. In addition to these recruitment efforts, of course, we have confidential arrangements with some Americans who agree to assist us in the conduct of our foreign intelligence work. The Agency's Office of Training also must do a large amount of its work within the United States. We maintain a number of training installations in which the various disciplines required for CIA'S missions are taught. These cover everything from language and communications training to clandestine operations and intelligence analysis. Occasionally 11 --- some of this training is conducted by sending a student on a mock exercise into a large U.S. city environment to expose him to some of the problems of operating in a clandestine manner. In such cases, however, the subject of the action would be another Agency employee participating in the exercise. In addition to these direct activities, the Agency has cooperated and collaborated with a number of governmental elements in the United States. This begins with the extensive collaboration and coordination with the other elements of the Intelligence Community, such as the Department of Defense and the Federal Bureau of Investigation. These joint activities are ones in which it is proper for one Government agency to assist another within the principles established by the Economy Act. As I noted at the outset, an example of this was the counterintelligence program conducted during recent years, in which CIA focused on the question of whether foreign manipulation or support was going to American dissident elements from abroad. The research and development of some of the complex technical equipment required for intelligence is in 12 --- many cases conducted jointly by the Department of Defense and CIA, as the resulting flow of information will be of value to both. Similarly, there is an exchange of trainees with various Government agencies, both to improve the breadth of knowledge of the CIA trainees and to orient trainees from other agencies on the role of intelligence in American foreign policy. As I noted earlier, in the course of these various activities, there have been occasions when CIA may have exceeded its proper bounds. I have outlined a number of these in my report to the Senate Appropriations Committee, a copy of which I submit herewith for your record, along with some changes in detail which have come out of our con- tinuing investigation. I think it important to make three points with respect to any such events: 1. They were undertaken in the belief that they fell within the Agency's charter to collect foreign intelligence or to pro- tect intelligence sources and methods. 2. The Agency has held and adhered to the principle that its responsibilities lie in the field of foreign intelligence and not domestic intelligence, and any of the above activities were believed to have been related to foreign intelligence. 13 --- 3. Any missteps by CIA were few and far between, have been corrected, and in no way justify the outcry which has been raised against CIA. Mr. Chairman, in May 1973 Director Schlesinger issued a notice to all CIA employees instructing and inviting them to report to him or to the Inspector General any matter in CIA's history which they deemed questionable under CIA's charter. This instruction has been made a matter of regulation within CIA and is brought to the attention of each employee once a year. As a result of the May 1973 memorandum, various incidents were collected and brought to the attention of the Chairman of the House and the Acting Chairman of the Senate Armed Services Committees. They were then used as the basis of a very specific series of internal instructions issued in August 1973 directing the termination, modification, or other appropriate action with respect to such incidents in order to ensure that CIA remains within its proper These instructions have been carried charter. out and are periodically reviewed to ensure continued compliance. It appears that some version of these matters came to the attention of the New York Times reporter 14 --- who wrote the article of December 22, 1974. A day or two before the article appeared, he con- tacted me stating he had obtained information of great importance indicating that CIA had engaged in a massive domestic intelligence activity, including wiretaps, break-ins, and a variety of other actions. In response to his request, I met with him and explained to him that he had mixed and magnified two separate subjects, i.e., the foreign counterintelligence effort properly con- ducted by CIA and those few activities that the Agency's own investigation had revealed and termi- nated in 1973. He obviously did not accept my ex- planation and, instead, alleged that CIA had con- ducted a "massive illegal domestic intelligence operation." I am confident that the investigations of the President's Commission and the Select Com- mittees will verify the accuracy of my version of these events. I also believe that any serious re- view of my report to the Senate Appropriations Com- mittee will show that I essentially denied his version rather than confirmed it as some have alleged. The sensational atmosphere surrounding intelligence, however, encourages oversimplication and disproportionate stress on a few missteps rather than on the high quality of CIA's basic work. 15 --- Mr. Chairman, these last two months have placed American intelligence in danger. The almost hysterical excitement that surrounds any news story mentioning CIA, or referring even to a perfectly legitimate activity of CIA, has raised the question whether secret intelligence operations can be conducted by the United States. A number of the intelligence services abroad with which CIA works have expressed concern over its situation and over the fate of the sensitive information they provide to us. A number of our individual agents abroad are deeply worried that their names might be revealed with resultant danger to their lives as well as their livelihoods. A number of Americans who have collaborated with CIA as a patriotic contribution to their country are deeply concerned that their reputations will be besmirched and their businesses ruined by sensational misrepresentation of this association. And our own employees are torn between the sensational allegations of CIA misdeeds and their own knowledge that they served their nation during critical times in the best way they knew how. I believe it a time for a review of what this nation needs and wants in the field of intelligence and the determination there from of how, and con- sequently whether, American intelligence will 16 --- operate. In this process, I believe four things are necessary. First, it is essential that a sober and res- ponsible review of our intelligence apparatus take place. By reason of the sensitivity of some of these matters, it is essential that it be conducted without a sequence of sensational allegations and exposures. I am sure that the responsible members of the President's Commission and of the Select Committees will take this approach. Second, the inquiries must be conducted in a manner that protects the secrecy of these sensitive matters after as well as during the investigations. For this reason, I am recommending to the investigating bodies, and the President's Commission has already accepted, arrangements for the physical security of the material to be developed, secrecy agreements for the staffs similar to those utilized by the Intelligence Community and recently ratified by the Fourth Circuit Court of Appeals, and arrange- ments for compartmentation of the different levels of sensitivity of the information to be provided. There must not only be no exposure of our most sensitive material, such as the names of our agents and collaborators and the specifics of our sensitive technical machinery, there must not even be a risk that this occur. 17 --- Third, I look forward to clarification from these inquiries of the proper authority and limitations of American intelligence. For example, in my confirmation hearing I suggested the addition of the word "foreign" before the word "intelligence" whenever it appears in the National Security Act referring to CIA, to make crystal clear its function. I also expect that the arrangements for authorization and oversight of the operations of CIA and the Intelligence Community will be reviewed and clarified wherever necessary. But in the establishment of these new rules, it will be essential to include arrangements for their modification, as the rules of 1975 may be no better fitted for the problems our nation will face in 1990 than those of 1947 may be considered by some for 1975. Fourth, I believe it essential to improve our tools to protect those secrets necessary to the suc- cess of American intelligence and even the conduct of foreign policy. I am charged by the National Security Act with the protection of intelligence sources and methods from unauthorized disclosure. If there is to be no gray area in this charge, I believe it essential that the tools to carry it out be plainly identified and adequate. Today they include our screening and orientation 18 --- process, our physical arrangements to protect our material, and the secrecy agreement we require of our employees. But intelligence sources and methods do not have the kind of protection provided by the criminal penalties that apply to the unauthorized revelation of income tax returns, census returns, and cotton statistics. One of our ex-employees has recently published a book abroad, where he is out of range of our injunction process, in which he claims to reveal the name of every individual, American and foreign, that he could remember working with, acknowledging the "important encouragement" of the Communist Party of Cuba in writing the book. I believe it absurd for anyone to be immune from criminal prosecution for such an act. Mr. Chairman, I thank you for this opportunity to speak publicly about the serious situation of American intelligence today. This is a matter that concerns not only us in the Intelligence Community, and our critics, but our entire nation. American intelligence today, thanks to the dedicated work of thousands of professionals, and in particular my predecessors in this post, has improved in quality to a degree undreamed of a few decades ago. Thanks to it, our Government's policymakers can draw on 19 --- factual information and reasoned analysis in cases where until recently they had to rely only on hunches, circumstantial evidence, and cautious hopes. It is not only helping our Government to be better informed about the complex world in which we live, it is also serving the Congress and the people to help them play their full role in American decisionmaking. During 1974, for example, CIA alone appeared before 17 Congressional com- mittees or subcommittees on 48 occasions and had substantive discussions on foreign developments with journalists on some 600 occasions. As public understanding of the real nature of modern intelligence grows, I am confident that there will be an equal growth in public support of its necessities, including the fact that its details cannot be exposed to the bright glare of publicity With this, I believe or irresponsible exaggeration. 1975 can mark the year in which America reaffirmed the need for intelligence to protect itself and to maintain world peace, and replaced the sensa- tional, romantic, but outdated intelligence image of the mystery writers with a mature understanding of the modern intelligence process. Intelligence is still an exciting profession, but in the intellectual and technological sense, not just the physical. 20 --- Mr. Gene Wilson April 6, 1977 Freedom of Information Coordinator CIA Washington, D.C. Dear Mr. Wilson: not sent Ten working days have expired since I filed my request for records held by the Dentral Intelligence Agency concerning the Wisconsin State Legislature and for agency regulations concerning the Domestic Collection División. (C) Since failure to respond to my request repre- sents a denial of my initial request, I therefore and hereby appeal that denial. Sincerely, DEC: 1b DAVID E. CLARENBACH State Representative --- Mark Lynch - ACLU He said give The CIA a few more days - for mailing purposes. Then on Tues. or wed. (Apnl 5, 6) sent the appeal. Explain that 10 days have 4 expired & ne I he agency has failed to Explai that respond to your request. Failure lo respond to your request has been a denial of the initial request, + appeal from mat denial. Send letter to: Gene Wilson Freedom of Information Coordina ACIA Washington, D. C. --- Finding out why isn't easy Clarenbach bill attracts the CIA By RON MCCREA Of The Capital Times Staff THE CIA has apparently taken a lively interest in a piece of Wisconsin legislation, and Rep. David Clarenbach is trying to find out why. Clarenbach (D-Madison) said he learned Thursday that the supersecret federal intelligence agency made an inquiry on the progress of Assembly Bill 400, a measure designed to protect the privacy of personal records kept by state and local governments. Clarenbach, who chaired the Legislative Council study committee which produced the bill, decided to find out why the CIA, which has no legal authority to investigate domestic matters, thought it had any business snooping in state affairs. It all resulted in a merry chase. The quest began with Robert Johnson, director of the State Records Center, who confirmed that a Miss Sanders of the CIA "Milwaukee Office" had called to ask for a copy of the bill and to ask that he keep the office posted on its progress. Johnson gave Clarenbach the address Sanders had provided - a "G.C. Barry" at P.O. Box 92188, Milwaukee. Clarenbach searched for a Milwaukee phone number for either Barry or the CIA, but none was listed. Then he called the Milwaukee Post Office and was given the phone number for the boxholder. This turned out to be Barry's office. "Hello - the Office," said the voice on the other end of the line. It was Miss Sanders. She said Barry was out, but she did give Clarenbach a Washington number to call. THIS TURNED out to be Dennis Berrend, deputy assistant to the director of the CIA. "He was very hesitant to talk," said Clarenbach. "He said, 'You're identifying yourself as a Wisconsin assemblyman, but we don't know who you are or how you got Barry's phone number.'" Clarenbach agreed to send questions in writing. But he pressed for some explanation of the Milwaukee operation. "Berrend said that Barry's office is one of 36 offices around the country which make up the Domestic Collection Division. The Milwaukee office is just a one-man branch of the Chicago office," Clarenbach said. "He said the collection offices are for citizens who want to volunteer information on foreign governments or intrigues." Clarenbach asked Berrend, "If the office is supposed to be for civic- minded citizens, why isn't the number in the phone book?" Berrend replied (Continued on Page 3, Col. 3) --- • Clarenbach's bill attracts the CIA (Continued from Page 1) that the citizens who contact the office do so on a regular basis, and they are the only ones given the number. "And by the way, Mr. Clarenbach, how did you get the number?" Berrend asked. Clarenbach decided to try another tack. He called the CIA general number in Washington.. The operator referred him to Public Relations, which referred him to the Legislative Council Office, which referred him to the Office of Legislation. ROBERT BARR, the office director, told him that his office is the clearinghouse for all inquiries from politicians. Barr said he would "get back to him" to confirm whether Barry is a CIA employe, but so far Clarenbach hasn't heard anything. Clarenbach then tried to call the Domestic Collection Division directly. The operator said it was against the rules for any calls to be transferred there. She referred him to Organization, which referred him to Security. "I talked to Tim Harrington, the chief of headquarters security, and he said it was 'almost a law' that no calls can be referred to Domestic Collec- tion. I don't know how something can be 'almost a law,' " the legislator said. Clarenbach gave up trying to get an answer by phone and instead wrote. a letter to Berrend. It says in part: "The request to be kept informed on the progress of this bill was made to the State Records Center by telephone. Why was this request not made in writing and directed to the secretary of the department, my office, or the Legislative Council under whose auspices the study was conducted? "Additionally, as I understand it, your agency is not responsible for domestic surveillance. Under what authority and for what reasons are you interested in my proposal? How long has the CIA been interested in state legislative matters, and what kind of information do you collect? What is your legal authority for this function?" Clarenbach is waiting for the answers. -THE CAPITAL TIMES, Saturday, February 19, 1977 --- DAVID E. CLARENBACHI REPRESENTATIVE 78th District (East and Central Madison) Capitol Address: 112 North-State Capitol Madison, Wisconsin 53702 Telephone: (608) 266-8570 WISCONSIN LEGISLATURE ASSEMBLY CHAMBER MADISON 53702 March 16, 1977 CHAIRPERSON: Committee on Health Care and the Consumer MEMBER: Committee on Consumer Affairs Committee on Elections Committee on Administrative Rules Freedom of Information and Privacy Coordinator Central Intelligence Agency Washington, D.C. 20505 Dear Sir: I hereby request, under the Freedom of Information Act, all records held by the Central Intelligence Agency concerning the Wisconsin State Legislature. In addition, I request all agency regulations of the Central Intelligence Agency concerning the Domestic Collection Division. I also request that any search fees incurred in processing this request be waived since C. I.A. interest in a state legislative matter is obviously of public interest. In this regard, I wish to cite Fitzgibbon (DDC 1976). Thank you. Sincerely, Icture E. Karabael DAVID E. CLARENBACH State Representative This is 100% Recycled Paper --- Patrick J. Lucey Governor STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION February 9, 1977 One West Wilson Street Madison, Wisconsin 53702 Robert H. Dunn Secretary David Clarenbach Room 112 North State Capitol Building Madison, Wisconsin 53702 Dear Mr. Clarenbach: Pursuant to our phone conversation today, I am supplying the information you requested. Marilyn Sanders, of the CIA, requested a copy of the Privacy of Personal Records Bill be sent to G. C. Barry, also of the CIA, at P. O. Box 92188, Milwaukee, Wisconsin 53202. To date, nothing has been sent to G. C. Barry. Sincerely, Robert M Johnson m Robert M. Johnson Chief, Records Management RMJ: dj --- WISCONSIN CIVIL LIBERTIES UNION FOUNDATION 1840 N. Farwell Avenue, Milwaukee, Wisconsin 53202 (414) 272-4032 BOARD OF TRUSTEES: Steven I. Cohen, president; Sara Joan Bales, vice-president; James Cain, secretary; Joanne Rattan, treasurer; Elizabeth Alexander, C. Y. Allen, Robert Bramscher, Jonathan Entin, Curry First, Cora Harris, Jill Hoffenberg, Janet A. Jenkins, Walter F. Kelly, Sarah V. Lasker, Robert Lerner, Robert Lewis, David R. Luce, Madhu N. Mahadeva, Patricia McMahon, Dennis Metzdorf, Michael Norman, Metta K. Parsons, William G. Rice, John Sanborn, Steven Steinglass, Marion Stern, Petter Tropman, Barbara Ulichny, Eleanor White. Executive Director: Eunice Edgar. March 2, 1977 WILLIAM H. LYNCH Legal Director Member of bar, Wisconsin and Rhode Island Morton Halperin 122 Maryland Avenue NE Washington, D. C. 20002 Dear Mr. Halperin: Enclosed is a copy of an article that appeared in the Sunday, February 20th Milwaukee Journal for your information. I don't know how much you know about the domestic collection division of the CIA but I thought it would be interesting in any event. Representative David Clarenbach is a member of the board of the Capital Area (Madison) Chapter of the Wisconsin Civil Liberties Union. I would imagine that he would appreciate any information you might have on this unit and its operations, especially information that would as- sist him in getting answers to his questions. The Wisconsin Civil Liberties Union has approved representation of Mary Blair for damages for the loss of her job through activities by the Milwaukee FBI agent. This is the case we discussed on the telephone last week. I will inform our cooperating attorney of your strategy in similar cases and he will no doubt be in contact with Mark Lynch soon. WHL: al cc: David Clarenbach Sincerely, Wilhan H. William H. Lynch Legal Director Contributions to the Wisconsin Civil Liberties Union Foundation are deductible for income tax purposes. 20 --- State Privacy Bill Stirs CIA Interest Madison, Wis.-AP- The CIA has been asking ques- tions about progress of a bill pending in the State Legisla- ture, according to State Rep. David Clarenbach (D-Madi- son). Clarenbach, chairman of the Legislative Council, said he had been unable to find out why the CIA has been interested in a bill (A-400) David Clarenbach designed to protect the priva- cy of personal records kept by state and local govern- ments. The proposed bill defines the type of information that a governmental unit such as the CIA may maintain. The bill would allow individuals to review information about themselves, except that gath- ered for law enforcement. Milwaukee Office Involved Clarenbach said he was told that the inquiry came from a Milwaukee office op- erated by the agency's Do- mestic Collection Division, but his effort to obtain more information or even to reach representatives of that divi- sion in Washington was un- successful. Clarenbach said he then gave up trying to get infor- mation by telephone and wrote to Dennis Berrend, deputy assistant to the direc- tor of the CIA. Clarenbach said he asked Berrend why the information was requested by telephone and not in writing. "Additionally, as I under- stand it, your agency is not responsible for domestic sur- veillance. Under what au- thority and for what reason are you interested in my pro- posal? How long has the CIA been interested in state legis- 'lative matters, and what kind of information do you col- lect? What is your legal au- thority for this function?" In detailing the CIA. en- counter, Clarenbach said a woman identifying herself as . Miss Sanders called Robert Johnson, director of the State Records Center, and asked for a copy of the bill. He said the woman said she was with the Milwaukee office of the CIA, and asked that the Records Center send information on the progress of the bill to G. C. Barry at P.O. Box 92188 in Milwau- kee. More Calls Clarenbach found no list- ing for a CIA office in Mil- Waukee. He said he called the US Postal Service in Milwau- kee and was given a tele- phone number, which he called and reached a Miss Sanders. He said she told him that Barry was out, and gave him a Washington telephone number, where he reached Berrend. "Berrend said Barry's of- fice is one of 36 offices around the country that make up the Domestic Collection Division," Clarenbach said. "The Milwaukee office is just a one man branch of the Chi- cago office. "He said the collections offices are for citizens who want to volunteer informa- tion on foreign governments or intrigues." Clarenbach said Berrend was "very hesitant to talk,". and asked him to submit any questions he had in writing. Milwaukia Journe Feb: 20, 1977 --- DAVID E. CLARENBACH REPRESENTATIVE 78th. District (East and Central Madison) Capitol Address: 112 North-State Capitol Madison, Wisconsin 53702 Telephone: (608) 266-8570 WISCONSIN LEGISLATURE ASSEMBLY CHAMBER MADISON 53702 February 17, 1977 ww CHAIRPERSON: Committee on Health Care and the Consumer MEMBER: Committee on Consumer Affairs Committee on Elections Committee on Administrative Rules Mr. Dennis Berend, Deputy Assistant to Director Central Intelligence Agency Washington, D. C. 20505 Dear Mr. Berend: Enclosed please find a copy of the bill relating to privacy of personal records collected by state and local government, which had been requested. I'm always glad to provide information to any individual, group or agency at any time. Should you desire further information in the future on this or any other state legislative matter, don't desitate to contact me immediately. However, I do have several questions which you might be able to respond to for me. The request was made to be kept informed on the progress of this bill to the chief of the state records center by telephone. Why was this request not made in writing and directed to the Secretary of the Department, my office or the Legislative Council under whose auspices the study was conducted? Additionally, as I understand it, your agency is not responsible for domestic surveillance. Under what authority and for what reasons are you interested in my proposal? How long has the CIA been interested in state legislative matters, and what kind of information do you collect? What are your legal authorities for this function? I look forward to your response at your earliest possible convience. Thank you. Sincerely, Maura E. Clare bark DAVID E. CLARENBACH State Representative This is 100% Recycled Pape: --- It would perhaps be useful, Mr. Chairman, to start by reviewing some of the allegations made recently about the CIA. The leading charge was that, in direct violation of its charter, CIA conducted a "massive illegal domestic intelligence operation" against the anti- Vietnam war and other dissident elements in recent years. In my testimony to the Senate Appropriations and Armed Services Committees, on 15 and 16 January, I flatly denied this allegation. I pointed out that CIA instead had conducted a counterintelligence operation directed at possible foreign links to American dissidents, under the authority of the National Security Act and the National Security Council Intelligence Directives which govern its activities and in response to Presidential concern over this possibility. Thus this operation was neither massive, illegal, nor domestic, as alleged. The same allegations stated that "dozens of other illegal activities," including break-ins, wire tapping, and surreptitious inspection of mail, were undertaken by members of the CIA in the United States beginning in the 1950's. Again I --- reported to the Senate Appropriations and Armed Services Committees a few such activities that in fact occurred. I pointed out that most such actions were taken under the general charge of the National Security Act on the Director of Central Intelligence to protect intelligence sources and methods against unauthorized dis- closure. Whether or not they were appropriate, there are very few institutions in or out of Government which in a 27-year history do not on occasion make a misstep, but in CIA's case such instances were few and far between and quite exceptional to the main thrust of its efforts. Another allegation given prominence was apparently based on the statements of an anonymous source who claimed that, while employed by the CIA in New York in the late 60s and early 70s, "he and other CIA agents had also participated in telephone wiretaps and break-ins" in the New York area. As I told the journalist involved before the story was printed, it does not bear any relation to CIA's actual activities in that Nor can we identify any former employee who answers to the journalist's description of area. 3 --- CLEMENT J. ZABLOCKI, WIS., CHAIRMAN L. H. FOUNTAIN, N.C. DANTE B. FASCELL, FLA. CHARLES C. DIGGS, JR., MICH. ROBERT N. C. NIX, PA. DONALD M. FRASER, MINN. BENJAMIN S. ROSENTHAL, N.Y. LEE H. HAMILTON, IND. LESTER L. WOLFF, N.Y. JONATHAN B. BINGHAM, N.Y. GUS YATRON, PA. MICHAEL HARRINGTON, MASS. LEO J. RYAN, CALIF. CARDISS COLLINS, ILL. STEPHEN J. SOLARZ, N.Y. HELEN S. MEYNER, N.J. DON BONKER, WASH. GERRY E. STUDDS, MASS. ANDY IRELAND, FLA. DONALD J. PEASE, OHIO ANTHONY C. BEILENSON, CALIF. E (KIKA) DE LA GARZA, TEX. GEORGE E. DANIELSON, CALIF. BERKLEY BEDELL, IOWA JOHN J. CAVANAUGH, NEBR. WILLIAM S. BROOMFIELD, MICH. EDWARD J. DERWINSKI, ILL. PAUL FINDLEY, ILL. JOHN H. BUCHANAN, JR., ALA. J. HERBERT BURKE, FLA. CHARLES W. WHALEN, JR., OHIO LARRY WINN, JR., KANS. BENJAMIN A. GILMAN, N.Y. TENNYSON GUYER, OHIO ROBERT J. LAGOMARSINO, CALIF. WILLIAM F. GOODLING, PA. SHIRLEY N. PETTIS, CALIF. JOHN J. BRADY, JR. CHIEF OF STAFF Congress of the United States Committee on International Relations House of Representatives Washington, D.C. 20515 March 2, 1977 Honorable David E. Clarenbach 112 North-State Capitol Madison, Wisconsin 53702 Dear Representative Clarenbach: This is to acknowledge and thank you for sending me a copy of your February 22 letter and accompanying enclosures to Presi- dent Carter regarding reported CIA interest in your legislation dealing with the privacy of personal records. I feel sure Mr. Carter will review the question and respond to your inquiry. Beyond that, please be assured that I will co- operate in any appropriate action with other members of the Wis- consin Congressional delegation, particularly your own representa- tive, the Honorable Robert Kastenmeier. With best wishes, I am Sincerely yours, Jemand Ballchi Chairman CJZ:gbd --- ALVIN BALDUS 3RD DISTRICT, WISCONSIN COMMITTEE ASSIGNMENTS: AGRICULTURE SUBCOMMITTEES: DAIRY AND POULTRY FAMILY FARMS AND RURAL DEVELOPMENT CONSERVATION AND CREDIT SMALL BUSINESS SUBCOMMITTEES: ACTIVITIES OF REGULATORY AGENCIES SMALL BUSINESS ADMINISTRATION OVERSIGHT Congress of the United States House of Representatives Washington, D.C. 20515 March 4, 1977 WASHINGTON OFFICE: 509 CANNON HOUSE OFFICE BUILDING WASHINGTON, D.C. 20515 (202) 225-5506 DISTRICT OFFICES: EAU CLAIRE FEDERAL BUILDING 510 SOUTH BARSTOW EAU CLAIRE, WISCONSIN 54701 (715) 835-4671 LA CROSSE 544 SECOND AVENUE, NORTH ONALASKA, WISCONSIN 54650 (608) 783-5618 LANCASTER 236 WEST MAPLE, P.O. Box 387 LANCASTER, WISCONSIN 53813 (608) 723-7560 David E. Clarenbach State Represenative 112 North-State Capitol Madison, Wi. 53702 Dear Represenative Clarenbach: Thank you for the copy of your letter informing me of the peculiar incident which occured between the CIA and a bill sponsored by you. I can see the rational behind your concern, in that the CIA has no interest in domestic security. Such activities were exposed during the last session by the Senate committee on Inteligence Activities. Such oversight will continue and incidents like yours will be investigated. Thank you for bringing this matter to my attention. Sincerely yours, Cel Beddin ALVIN BALDUS Member of Congress AB/dr SERVING: BARRON COUNTY, BUFFALO COUNTY, CRAWFORD COUNTY, DUNN COUNTY, EAU CLAIRE COUNTY, GRANT COUNTY, JACKSON COUNTY, LA CROSSE COUNTY, MONROE COUNTY, PEPIN COUNTY, PIERCE COUNTY, POLK COUNTY, RICHLAND COUNTY, ST. CROIX COUNTY, TREMPEALEAU COUNTY, VERNON COUNTY --- CLEMENT J. ZABLOCKI, WIS., CHAIRMAN L.M. FOUNTAIN, N.C. DANTE B. FASCELL, FLA. CHARLES C. DIGGS, JR., MICH. ROBERT N. C. NIX, PA. DONALD M. FRASER, MINN. BENJAMIN S. ROSENTHAL, N.Y. LEE H. HAMILTON, IND. LESTER L. WOLFF, N.Y. JONATHAN B. BINGHAM, N.Y. GUS YATRON, PA. MICHAEL HARRINGTON, MASS. LEO J. RYAN, CALIF. CARDISS COLLINS, ILL. STEPHEN J. SOLARZ, N.Y. HELEN S. MEYNER, N.J. DON BONKER, WASH. GERRY E. STUDDS, MASS. ANDY IRELAND, FLA. DONALD J. PEASE, OHIO ANTHONY C. BEILENSON, CALIF. (KIKA) DE LA GARZA, TEX. GEORGE E. DANIELSON, CALIF. BERKLEY BEDELL, IOWA JOHN J. CAVANAUGH, NEBR. WILLIAM S. BROOMFIELD, MICH. EDWARD J. DERWINSKI, ILL. PAUL FINDLEY, ILL. JOHN H. BUCHANAN, JR., ALA. J. HERBERT BURKE, FLA. CHARLES W. WHALEN, JR., OHIO LARRY WINN, JR., KANS. BENJAMIN A. GILMAN, N.Y. TENNYSON GUYER, OHIO ROBERT J. LAGOMARSINO, CALIF. WILLIAM F. GOODLING, PA. SHIRLEY N. PETTIS, CALIF. JOHN J. BRADY, JR. CHIEF OF STAFF Congress of the United States Committee on International Relations House of Representatives Washington, D.C. 20515 March 2, 1977 Honorable David E. Clarenbach 112 North-State Capitol Madison, Wisconsin 53702 Dear Representative Clarenbach: This is to acknowledge and thank you for sending me a copy of your February 22 letter and accompanying enclosures to Presi- dent Carter regarding reported CIA interest in your legislation dealing with the privacy of personal records. I feel sure Mr. Carter will review the question and respond to your inquiry. Beyond that, please be assured that I will co- operate in any appropriate action with other members of the Wis- consin Congressional delegation, particularly your own representa- tive, the Honorable Robert Kastenmeier. With best wishes, I am Sincerely yours, Jemend Ballochi Chairman CJZ:gbd --- ALVIN BALDUS 3RD DISTRICT, WISCONSIN COMMITTEE ASSIGNMENTS: AGRICULTURE SUBCOMMITTEES: DAIRY AND POULTRY FAMILY FARMS AND RURAL DEVELOPMENT CONSERVATION AND CREDIT SMALL BUSINESS SUBCOMMITTEES: ACTIVITIES OF REGULATORY AGENCIES SMALL BUSINESS ADMINISTRATION OVERSIGHT Congress of the United States House of Representatives Washington, D.C. 20515 March 4, 1977 WASHINGTON OFFICE: 509 CANNON HOUSE OFFICE BUILDING WASHINGTON, D.C. (202) 225-5506 20515 DISTRICT OFFICES: EAU CLAIRE FEDERAL BUILDING 510 SOUTH BARSTOW EAU CLAIRE, WISCONSIN 54701 (715) 835-4671 LA CROSSE 544 SECOND AVENUE, NORTH ONALASKA, WISCONSIN 54650 (608) 783-5618 LANCASTER 236 WEST MAPLE, P.O. Box 387 LANCASTER, WISCONSIN 53813 (608) 723-7560 David E. Clarenbach State Represenative 112 North-State Capitol Madison, Wi. 53702 Dear Represenative Clarenbach: Thank you for the copy of your letter informing me of the peculiar incident which occured between the CIA and a bill sponsored by you. I can see the rational behind your concern, in that the CIA has no interest in domestic security. Such activities were exposed during the last session by the Senate committee on Inteligence Activities. Such oversight will continue and incidents like yours will be investigated. Thank you for bringing this matter to my attention. Sincerely yours, Wel Belden. ALVIN BALDUS Member of Congress AB/dr SERVING: BARRON COUNTY, BUFFALO COUNTY, CRAWFORD COUNTY, DUNN COUNTY, EAU CLAIRE COUNTY, GRANT COUNTY, JACKSON COUNTY, LA CROSSE COUNTY, MONROE COUNTY, PEPIN COUNTY, PIERCE COUNTY, POLK COUNTY, RICHLAND COUNTY, ST. CROIX COUNTY, TREMPEALEAU COUNTY, VERNON COUNTY --- DAVID E. CLARENBACH REPRESENTATIVE 78th District (East and Central Madison) Capitol Address: 112 North-State Capitol Madison, Wisconsin 53702 Telephone: (608) 266-8570 WISCONSIN LEGISLATURE ASSEMBLY CHAMBER MADISON 53702 CHAIRPERSON: Committee on Health Care and the Consumer MEMBER: Committee on Consumer Affairs Committee on Elections Committee on Administrative Rules February 22, 1977 The Honorable Jimmy Carter President of the United States 4500 Pennsylvania Avenue Washington, D.C. 20510 Dear President Carter: A matter concerning activities of the Central Intelligence Agency has come to my attention which, on the surface, disturbs me considerably. The CIA apparently has an interest in a piece of state legislation dealing with privacy of personal records held by state and local government. For some time now, I have tried to determine, among other things, what their interest might be and under what authority they are pursuing this matter. Enclosed, please find a copy of Assembly Bill 400 and my letter to the CIA. In addition, I have enclosed a newspaper article outlining the situation in detail. I would appreciate your office reviewing this case. We have seen far too many recent abuses of legal authority by intelligence gathering agencies. The mere existence of semi-secret Domestic Collection Division offices around the country and their questionable functions raise serious questions that deserve straight- forward answers. Thank you very much. I look forward to your re- sponse. DEC: lb Enc. Sincerely, Daird E. Clarenbach DAVID E. CLARENBACH State Representative This is 100% Be 512 --- (2) cc: Clarence Kelley, Acting Director, CIA Senator William Proxmire Senator Gaylord Nelson U.S. Representative Robert Kastenmeier U.S. Representative Les Aspin U.S. Representative Alvin Baldus U.S. Representative Clement Zablocki U.S. Representative Henry S. Reuss U.S. Representative William Steiger U.S. Representative David R. Obey U.S. Representative Robert J. Cornell U.S. Representative Robert Kasten --- CENTRAL INTELLIGENCE AGENCY WASHINGTON, D.C. 20505 Representative David E. Clarenbach 112 North-State Capitol Madison, WI 53702 Dear Mr. Clarenbach: 4 APR 1977 This acknowledges your Freedom of Information Act request of 16 March, in which you ask for all records held by this Agency concerning the Wisconsin State legislature, as well as all Agency regulations concerning the Domestic Collection Division. It was received on 23 March. I will initiate a search of our files for the information you seek. There will be no fee for this service. As you may know, the heavy volume of Freedom of Information requests received by the Agency has resulted in processing backlogs. If we do not respond within the 10 working days stipulated by the Act, it is your right to construe this as a denial, subject to appeal to the CIA Information Review Committee. It would seem more reasonable, however, for us to continue processing your request and to respond as soon as feasible. Any denials of records could be appealed at that time. Unless we hear from you otherwise, we will assume that this is agreeable to you and proceed on this basis. Sincerely, ९ Gene F. Wilson Information and Privacy Coordinator --- DRAFT Mr. Gene F. Wilson Information and Privacy Coordinator Central Intelligence Agency Washington, D.C. F.O.I.A. APPEAL Dear Mr. Wilson: This is an appeal of your denial of my FOIA request for all CIA records concerning the Wiscon- sin State Legislature and for the Agency's regula- tions concerning the Domestic Collection Division. First, I question the adequacy of your search for records concerning the Wisconsin State Legislature. Since the Agency did gather infor- mation concerning a bill I introduced and since Mr. Dennis Berend, Deputy Assistant to the Director of Central Intelligence, has acknowledged to me that the CIA does have an interest in state legis- lation, I find it difficult to believe that the Agency has no records concerning the Wisconsin State Legislature. With respect to your denial of the regula- tions for the Domestic Collection Division, I remind you that the FOIA requires that non-exempt material must be disclosed after it has been segregated from exempt material. It appears un- likely that all of the regulations concerning this Division are properly classified and/or would reveal intelligence sources and methods. Particularly since this Division has a narrow and legitimate mission in the domestic field from which the CIA is generally precluded, 50 U.S.C. 403(d)(3), I would think that it -- would be in the Agency's interest to disclose -- these regulations and assure the public that the Division operates according to the law. --- DRAFT PAGE 2 Your claim of exemption 2 is without merit since these regulations @bviously relate to matters that are not solely related to the internal per- sonnel rules and practices of the CIA. Indeed. there is a substantial public interest in knowing the regulations of a component of the CIA which operates in the domestic field. Under the terms of the FOIA, I expect a determination on this appeal within twenty working days. --- his source. I fear that the journalist has been the victim of what we in the intelligence trade call a fabricator. Another published allegation was that CIA, through Agency-owned corporate structures organized to provide apparent sponsorship for its overseas operations, manages a "$200-million-a-year top- secret corporate empire" which could circumvent the will of Congress. This allegation is also false. CIA does maintain certain corporate support structures that are essential to conducting its operations and concealing CIA's role overseas. These activities are managed, however, in the most meticulous manner by CIA to ensure the safekeeping of the Government's investment, and to audit these activities to ensure that they stay within proper bounds. One individual continues to give national promi- nence to an allegation that CIA was somehow more in- volved in Watergate and its cover-up than has been demonstrated publicly. His lack of credibility --- should cause the charge to fall of its own weight, but in addition I believe the extensive investiga- tions made into this subject, and in particular the tapes most recently released, indicate that CIA's limited assistance in 1971 certainly had nothing to do with the Watergate in 1972, and that CIA was the institution that said "No" to the cover-up rather than be involved in it. There are also a number of allegations of im- proper CIA relationships with domestic police forces. The facts are that CIA maintained friendly liaison relationships with a number of police forces for assistance in CIA's mission of investigating its applicants, contractors, and similar contacts. These relationships from time to time included various mutual courtesies which have been warped into allegations of improper CIA manipulation of these police forces for domestic purposes. These allegations are false. Since the 1973 legislation barring any CIA assistance to the Law Enforcement Assistance Administration, CIA has terminated any assistance to the LEAA and in compliance with the spirit as well as the letter of that particular law has terminated any assistance to local police forces as well. 5 --- One charge stems from a dangerous misunder- standing of the true nature of the modern intel- ligence process. firms to bid on a contract to study new foreign developments in transportation technology. This has been alleged to constitute a program to spy on our closest allies. In truth, of course, it is nothing of the kind. The prospective contractor was only expected to conduct open research and analyze information made available to him. ligence work today includes analysis as one of its major elements. It is no longer synonymous with spying. CIA invited several U.S. industrial Intel- Mr. Chairman, these exaggerations and misrepre- sentations of CIA's activities can do irreparable harm to our national intelligence apparatus and if carried to the extreme could blindfold our country as it looks abroad. To this Committee I of course need not stress the importance of our intelligence work to our defense. May I only remind you that our intelligence must not only tell us what threats we face today but also what threats are on the drawing boards or in the research laboratories of potential enemies that might threaten us some years hence. --- This Committee is well aware of the contribution intelligence makes to decisions about defense levels. I would also like to remind you of its contribution to the Strategic Arms Limitation and similar treaties. Such agreements help reduce the need for the heavy expense of arms. I would like to stress another aspect of intelligence today keeping. 11 its contribution to peace- Aside from its assistance to our ability to make treaties to reduce tensions between us and other nations, it has on occasion provided our Government information with which it has been able to convince other nations not to initiate hostilities against their neighbors. This peace- keeping role can grow in importance as our intelli- gence coverage improves. Correspondingly, it can decline if our intelligence machinery is made ineffectual through irresponsible exposure or ill-founded exaggeration. Mr. Chairman, CIA does carry out some of its activities within the United States. About three- fourths of its employees live and work in this country. Most are in the Washington Metropolitan Area, performing analysis, staff direction, 7 --- administrative support and Headquarters activities. About ten percent of CIA's employees work in the United States outside the Headquarters area. They perform support functions that must be done in the United States, such as personnel recruitment and screening or contracting for technical intel- ligence devices. They also collect foreign intelligence here. Much information on the world is available from private American citizens and from foreigners within the United States, and it would be foolish indeed to spend large sums and take great risks abroad to obtain what can be acquired cheaply and safely here. CIA's Domestic Collection Division has repre- sentatives in 36 American cities. These represen- tatives contact residents of the United States who are willing to share with their Government information they possess on foreign areas and developments. They provide this information voluntarily, in full awareness that they are contributing information to the Government. They are assured that their relation- ship will be kept confidential and that proprietary interests, say on the part of a businessman, will not be compromised. This program focuses exclusively --- on the collection of information about foreign areas and developments. The Foreign Resources Division of CIA was known until 1972 as the Domestic Operations Division. Its principal mission is to develop relationships with foreigners in the United States who might be of assistance in the collection of intelligence abroad. In this process it also collects foreign intelligence from foreigners in the United States. It has offices in 8 United States cities, and its work is closely coordinated with the FBI, which has the responsibility for identifying and countering foreign intelligence officers working within the United States against our internal security. The Agency's Office of Security has 8 field offices in the United States, engaged in conducting security investigations of individuals with whom CIA anticipates some relationship -- employment, contractual, informational, or operational. In order not to reveal during the investigation pro- cess the fact of CIA's connection with the individual, which might destroy the basis of the relationship, such investigators normally do not identify them- selves as working for CIA. 9 ---