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Section 204 deals with matters which are also within the jurisdiction of the Committee on Foreign Affairs and the Committee on Ways and Means. After reviewing actions taken by the Intelligence Committee on these matters, the other committees of jurisdiction made the following determinations:

Hon. DAN GLICKMAN,

HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,
Washington, DC, June 24, 1993.

Chairman, Permanent Select Committee on Intelligence, Washington, DC.

DEAR DAN: Thank you for your letter of June 23, 1993, advising me that Section 204 of H.R. 2330, the Intelligence Authorization Act for Fiscal Year 1994, concerns a matter of shared jurisdiction between the Permanent Select Committee on Intelligence and the Committee on Foreign Affairs.

I have reviewed Section 204, which strikes references to the Central Intelligence Agency Retirement Act of 1964 for Certain Employees in the Foreign Service Act of 1980 and inserts in lieu thereof references to the Central Intelligence Agency Retirement Act, the title of the Act as revised. To expedite consideration of H.R. 2230 by the full House, the Committee on Foreign Affairs will waive its right to consideration of this legislation, without prejudice to its jurisdiction on this matter.

I would appreciate your including this letter as part of the report accompanying H.R. 2330, and I deeply appreciate the cooperation and courtesy that you and your committee have extended to the Committee on Foreign Affairs. I look forward to working with you in the weeks and months ahead.

With best regards,
Sincerely,

LEE H. HAMILTON,
Chairman.

Hon. DAN GLICKMAN,

HOUSE OF REPRESENTATIVES,
COMMITTEE ON WAYS AND MEANS,

Washington, DC, June 28, 1993.

Chairman, Permanent Select Committee on Intelligence,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: Thank you for your letter, dated June 23, 1993, informing me of the technical corrections you have included in H.R. 2330, the Intelligence Authorization Act for Fiscal Year 1994. It is my understanding that these provisions simply correct cross references to the Central Intelligence Agency Retirement Act that are contained in the Social Security Act and the Internal Revenue Code.

In light of the technical nature of these corrections, I write today to advise you that I will not seek sequential referral of the bill to the Committee on Ways and Means, with the understanding, of course, that no future precedent is established.

I very much appreciate your bringing this matter to my attention. With warm regards, I am

Sincerely yours,

DAN ROSTENKOWSKI,

Chairman.

TITLE III-GENERAL PROVISIONS

Section 301-Increase in employee compensation and benefits authorized by law

Section 301 provides that appropriations authorized by the bill for salary, pay, retirement, and other benefits for Federal employees may be increased by such additional or supplemental amounts as may be necessary for increases in such compensation or benefits authorized by law.

Section 302-Restriction on conduct of intelligence activities

Section 302 provides that the authorization of appropriations by the bill shall not be deemed to constitute authority for the conduct of any intelligence activity which is not otherwise authorized by the Constitution or laws of the United States.

Section 303-National security scholarships, fellowships and grants Section 303 repeals the National Security Education Act of 1991 (50 U.S.C. 1901 et seq.) and requires that all amounts in the National Security Education Trust Fund that are not obligated on enactment of the section are to be transferred to the Treasury of the United States as miscellaneous receipts.

The National Security Education Act established a $150 million National Security Education Trust Fund from which funds may be authorized and appropriated each year to carry out a program administered by the Secretary of Defense awarding undergraduate scholarships, graduate fellowships, and grants to institutions of higher learning to overcome shortfalls in international education. The Act requires that the program be carried out in consultation with the thirteen-member National Security Education Board, which is to develop criteria for making awards, establish qualifications of award recipients, and make recommendations concerning critical areas of study. Six of the Board's members are to be appointed by the President. Because of technical difficulties in the drafting of legislation concerning the funding of the program, no funds have been obligated to date under the National Security Education Act. H.R. 2118, the Supplemental Appropriations Act of 1993, provides authority to obligate $10 million in fiscal year 1993. The Administration requested $24 million for the program in fiscal year 1994.

The goals of the National Security Education program are laudable. The Committee however believes that other Federal programs may provide a more appropriate means of achieving these goals, especially at a time when federal fiscal resources are so limited.

Section 304-Annual report on intelligence community

Section 304 requires the Director of Central Intelligence to submit to Congress annually an unclassified report on the activities of

the intelligence community. The report, which is to be submitted with the President's budget submission for the next fiscal year, is to describe the community's successes and failures for the preceding fiscal year, as well as indicating the areas of the world and the issues which will require particular attention in the next fiscal year.

The Committee believes that it is important that the American people be aware of the work being done by the intelligence community. Public understanding of the significance of this work is essential if intelligence agencies are going to be able to successfully assert claim on increasingly scarce federal fiscal resources. The report required by section 304 is intended to contribute to the public's understanding of the scope of U.S. intelligence activities in a way which does not compromise their security. While much of the intelligence community's work must be cloaked in secrecy, the Committee believes that it is both possible and advisable for a more figorous effort to be made to educate the public the reasons why an effective intelligence capability is required in the past Cold War world. The report should make a substantial contribution to this effort.

Section 305-Security reviews

Section 305 expresses the support of the Committee for the President's effort, pursuant to a Presidential Review Directive, to review Executive Order 12356 and other directives relating to the protection of national security information. The review is being conducted under the chairmanship of the Director of the Information Security Oversight Office and is to be completed no later than November 30, 1993. The Committee also supports the establishment of a joint security commission which is to assess security practices and procedures of the Department of Defense and the Central Intelligence Agency and report by February 1, 1994.

The Committee is concerned, however, that in addition to the difficulties presented by the differing schedules of these two reviews, the two efforts could prove at best duplicative, and at worst, contradictory. For this reason, section 305 also expresses the sense of Congress that these reviews should be conducted with maximum consultation between the Secretary of Defense, the Director of Central Intelligence and the Director of the Information Security Oversight Office and that the results of the reviews should be incorporated into a consolidated recommendation for the President.

The Committee desires to be fully informed as to the cost of classification-related activities by the agencies which comprise the intelligence community. The Director of Central Intelligence is therefore requested to provide a report to the Permanent Select Committee oh Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate, by March 31, 1994, that identifies the following:

(1) The cost of classifying documents and keeping information classified by each agency within the intelligence community;

(2) The number of personnel within each agency assigned to classifying documents and keeping information classified; and

(3) A plan to reduce expenditures for classifying information and for keeping information classified, which shall include a specific expenditure-reduction goal for fiscal year 1995 for each agency within the intelligence community.

The report is to be provided in classified and unclassified forms.

TITLE IV CENTRAL INTELLIGENCE AGENCY

Section 401-Support for science, mathematics, and engineering

education

Section 401 authorizes the Director of Central Intelligence to carry out a program to award cash prizes to students who participate in high school science fairs within the United States. The program will recognize the importance of science, mathematics, and engineering to the national security.

For the last two years, scientists from the Central Intelligence Agency's Directorate of Science and Technology have volunteered to act as judges at regional high school science fairs sponsored by counties and school districts in the Metropolitan Washington, D.C. area. The CIA is one of many federal agencies and private companies which send judges to these fairs to encourage students to pursue studies in the sciences. Agency officials are to be congratulated for trying to encourage improvement in high school science education, and for doing so on their own time. The CIA judges award prizes based on standards suggested by the International Science and Engineering Fair (creative ability, 30 points; scientific thought, 30 points; thoroughness, 15 points; technical skills, 15 points; clarity, 10 points) plus an extra 10 points for relevance to the Agency's mission. CIA prize winners are given award certificates and tours of a limited area of CIA headquarters. Information is also made available to students concerning CIA's critical-skills college scholarships (authorized pursuant to Section 506 of the Intelligence Authorization Act for Fiscal Year 1987) and college cooperative workstudy programs.

The CIA does not now have the authority to make cash awards to the winning students. Section 401 would allow the CIA to award cash prizes, which the Committee expects would typically take the form of $50 U.S. savings bonds, so that it may have the same level of involvement in high school science fairs as do other federal agencies. Section 401 will also allow the CIA to participate in a larger annual science fair which draws participants from across the United States, where a three-year commitment to award a $250 prize is required of National Special Award sponsors.

The program authorized by section 401 will help make students aware that scientific excellence is rewarded, and exciting scientific work is being undertaken within the intelligence community as it responds to the challenges of nuclear proliferation and other national security priorities. In so doing, the program will assist in demystifying U.S. intelligence agencies, a process which is both necessary and in need of encouragement.

Some members of the Committee have expressed concern over the possibility that cash prizes will be awarded to foreign nationals and that counterintelligence risks are present when foreign nationals are invited into CIA headquarters, even for limited, escorted

tours. The Committee expects that if the Director of Central Intelligence continues to invite prize winners to CIA headquarters (as it is currently within the DCI's authority to do), the CIA will conduct tours with the same high degree of sensitivity to the protection of classified areas and activities as it does now. The Committee expects CIA security standards will not be relaxed in response to the age of the individual or the worthwhile purposes of the program involved.

The Committee intends that the primary objective of this small but worthwhile program will be the promotion of interest in science among high school students. The Committee does not intend for this program to involve expenditures greater than five thousand dollars a year, nor for the program to serve as a recruiting tool for the Central Intelligence Agency or any other element of the U.S. intelligence community. The application of any pressure to consider employment in any agency of the community as a result of winning an award would be inconsistent with the Committee's intention of the manner in which the program is to operate.

The Committee believes that the program can be managed in such a way that scholarship in science among high school students will be appropriately recognized and encouraged.

TITLE V-DEPARTMENT OF DEFENSE

Section 501-Foreign language proficiency pay

Section 501 increases the statutory ceiling on the amount of monthly Foreign Language Proficiency Pay (FLPP) a qualified active or reserve component linguist proficient in listening, reading, and speaking may receive to $450 a month, and to $200 a month for linguists proficient only in listening and reading.

The FLPP, created by the Department of Defense Authorization Act for Fiscal Year 1987 (Public Law 99-661), limits the FLPP bonus to $100 per month for active duty personnel proficient in listing and reading. Reservists are authorized to receive a FLPP bonus equal to one-thirtieth the maximum amount authorized by law for active component linguists. For reservists, this amounts to a bonus of $13 per month (before taxes) which the Committee considers to be an inadequate reflection of the significant amount of time and effort required to enhance language proficiency. Similarly, the $100 per month proficiency bonus authorized for active duty personnel provides a minimal incentive for the maintenance and enhancement of language skills.

Under the existing FLPP program, the Secretary of Defense designates certain foreign languages as critical. The service secretaries may then determine which languages designated by the Secretary of Defense will be eligible for a proficiency pay bonus within their service. In order to qualify for the maximum $450 bonus under Section 501, active and reserve personnel will be required to score a 3/3/3 in listening, reading and speaking on the Defense Language Proficiency Test (DLPT) in two foreign languages designated as critical. Attaining a 3/3/3 level in listening, reading, and speaking in one language designated as critical would make a service member eligible for a maximum $300 per month proficiency bonus. Finally, individuals attaining a proficiency of 3/3 in listening and

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