Form SEC-248 (5-2-55) EXHIBIT XXI U.S. DEPARTMENT OF COMMERCE BALANCE SHEET FOR STRATEGIC INFORMATION Checking one column only for each line will help you to decide whether dissemination of information will help or harm the interests of the United States, in net balance, all things considered. Item Net effect on military pow- Effect on morale (From stra- Other considerations thing you can think of) (Any In my judgement, in light of above, net effect of the dissemination of this information would be helpful interests of the United States. harmful to the Date Department Name Title Comm-DC-35837 EXHIBIT XXII Following correspondence between Congressman John E. Moss, chairman of the Special Subcommittee on Government Information, and Congressman George H. Mahon, chairman of the Subcommittee on Department of Defense Appropriations, the Appropriations Subcommittee took special notice of certain Defense Department restrictions on information. Some executive agency offi cials had quoted, as justification for restricting information, the following language from Report No. 493, 84th Congress, 1st session, on the Defense Department appropriation bill for fiscal year 1955-56: "TITLE I-OFFICE OF THE SECRETARY OF DEFENSE "SALARIES AND EXPENSES.-The budget estimate of $12,250.000 is approved in the amount of $12 million, a reduction of $250,000. Although the current rate of obligation on an annual basis exceeds by a very small margin the amount recommended, it is believed that the general leveling off of total appropriations for defense should reduce somewhat the activities in the Office of the Secretary. "OFFICE OF PUBLIC INFORMATION.-The bill includes $400,000 for this activity, a reduction of $100,000 below both the estimate and the current appropriation. Since all press releases channel from the services to the Press Branch of the Office of Public Information, the recent request of the Secretary looking toward a reduction in public information personnel of the services should result in lesser requirements of the central office. Furthermore, the rate of obligation necessary to even carry out the current program is approximately $420,000 annually. The committee was concerned over the inadequacy of control by this Office of informational activities throughout the Department which, it would seem, should be one of the principal responsibilities of a central office. Another criticism is the rather comprehensive interpretation which has been placed by the Office on what constitutes public relations and public information activities. The Office, it would seem, should concentrate on the broader aspects of keeping the country informed of the Department's activities while at the same time providing and enforcing strict rules for the guarding of our military secrets. Too much information has been released which is of no benefit to the American public but which is of tremendous value to our opponents."- [Italics added.] Report No. 2104, 84th Congress, 2d session on the Defense Department appropiation bill for fiscal year 1956-57 contained the following language: "TITLE I-OFFICE OF THE SECRETARY OF DEFENSE "SALARIES AND EXPENSES.-The budget estimate of $14,500,000 is approved in the full amount. Of the allowed increase of $1,481,000 over the amount appropriated for 1956, approximately $750,000 is to cover the cost of civilian pay increases authorized by Public Law 94, 84th Congress. Other major changes from 1956 involve a decrease of $1,203,100 for Supply and Logistics due to completion of cataloging development, and a requested increase of $2,206,400 for the expansia and improvement of capabilities for scientific evaluation of weapons and weapons systems. A request of $349,400 was made for engineering, research, and management studies in the Office of the Secretary of Defense and for establishing criteria and standards for use in the military construction programs and development of other management tools. The committee is of the belief that usual and inevitable delays in the formalization of contracts to cover the above two activities should result in savings adequate to provide for additional personnel and other items in the Office of Special Assistant for Guided Missiles, the costs of which were not determined in time to be budgeted. While it is indicated that a reduction of 240 civilian personnel will be effected in this Office during next fiscal year, the employees will actually be transferred to the military departments in connection with the conversion of the Federal cataloging program. "The matter of business enterprises in the Pentagon was discussed at some length during the hearings. The committee is left with the impression that adequate consideration has not been given in the past to the fostering of competition in order that employees may be given some opportunity, no matter how limited, for choice as to service and merchandise. No one establishment should be permitted to have a monopoly on the merchandise it sells. It is felt that two or more smaller establishments in each type busines would best serve the large Pentagon community. No establishment should be permitted to extend the variety of its merchandise beyond those on the basis of which the concession was originally granted, thereby tending to freeze out competing enterprises. Contemplated additional concessions should be well publicized and awarded, not necessarily to the one offering the highest percentage as rental which could possibly be passed on to the consumer, but to the one with proven ability to dispense quality merchandise and service at competitive cost. "OFFICE OF PUBLIC AFFAIRS.-The bill includes the budget estimate, $450,000, for this activity. This is substantially the same amount provided for the current fiscal year when costs of salary increases are included. The committee wishes to reiterate the concern expressed last year over the continued leaks and premature disclosures of our military secrets. While the public is entitled to be informed in general terms of our military posture and relative strength, it is not desirous of attaining this information at the expense of jeopardizing national security. It would seem to the committee that more drastic administrative action of some sort is in order. The committee trusts that the language in this paragraph will not be used by the Department of Defense or other Government agencies as a reason for withholding legitimate information from the press and public, nor should this paragraph be used as a cover up for inefficiencies and weaknesses of administration. [Italics added.] "Another matter of some concern to the committee is the manner in which documents submitted to it are classified. In many instances an entire document or report consisting of many pages is found to be classified because of a single sentence or single figure. It is requested that in the future all documents presented to the committee bear proper notations as to which portions are classified and the nature of classification so that members may feel free to utilize the unclassified portions." On May 9, 1956, Congressman Moss wrote Congressman Mahon: "As chairman of the House Government Information Subcommittee, I am well pleased with the language on withholding information which you incorporated in your report on the Defense Department appropriations bill. I think that the revised wording will serve notice on all departments that they cannot use the language in last year's report to evade giving out legitimate information. "The House Government Information Subcommittee concurs thoroughly in the wording of your report, on page 15 concerning the Office of Public Affairs, in which you express concern over 'continued leaks and premature disclosures of our military secrets.' "No member of this subcommittee would want to reveal the secrets of the Military Establishment in matters applying to weapons and weapon development. I, too, believe the Defense Department should take more drastic administrative action' to prevent leaks that may endanger our national security. "From the viewpoint of the work done so far by the House Government Information Subcommittee, possibly one of the more important comments in the report is the sentence stating: "The committee trusts that the language in this paragraph will not be used by the Department of Defense or other Government agencies as a reason for withholding legitimate information from the press and public, nor should this paragraph be used as a cover-up for inefficiencies and weaknesses of administration.' "This statement will, I am sure, prevent Government officials from misusing the House Appropriations Committee's expression of concern over premature disclosure of military secrets." .01 The purpose of this order is to establish and define the organization and functions of the Office of Strategic Information. .02 This order is issued pursuant to a directive of the National Security Council which provides that the Department of Commerce shall be responsible for the implementation of certain policy determinations governing unclassified scientific, technical, industrial, and economic nonstatistical information. Section 2. Delegation of Authority: The authority veated in the Secretary of Commerce by the National Security Council with respect to the matters described in Section 3 below is hereby redelegated to the Director, Office of Strategic Information. Section 3. Scope of Activity: .01 The Department of Commerce has been assigned responsibility for several aspects of a progran designed to coordinate the release of unclassified scientific, technical, industrial, and economic information, the indiscriminate distribution of which may be inimical to the defense interests of the United States. The Department shall 1 Establish an advisory committee composed of appropriate agencies for the purpose of furnishing guidance to executive agencies on the publication of unclassified scientific, technical, industrial, or economic (nonstatistical) information originating in departments and agencies of the executive branch, where such publication might be prejudicial to the defense interests of the United States; 2 Provide a central clearing house to which business and industry my look for guidance 3 Establish an advisory committee to coordinate the policies of agencies of the United .02 The Bureau of the Budget has been assigned responsibility with respect to the publication of statistical information from the standpoint of the national security. Section Establishment and Organization: .01 There is hereby established the Office of Strategic Information which shall be a constit uent unit of the Office of the Secretary of Commerce. DO-157 .02 The Office of Strategic Information shall be headed by a Director, who shall report and responsible directly to the Secretary of Commerce. Section & Responsibilities and Functions: .01 The Office of Strategie Information is responsible for formiating policies and providing advice and guidance to public agencies, industry tať hocinese, and other privato groups who are rezcerned with producing and distributing information described in Section 3 of this order. .02 The Office of Strategic Information sho!! undertake to publicize the availability of the velitary guidance program described in Section 3.012 and establish proseduris for headling materials which may be submitted for review and determination ce to their strategic value. .03 The Office of Strategic Informtion skell take positive steps to alert the America business commity to the dangers involved in the indisarinlaste reisem of strategic information and solicit the voluntary cooperation of business and industry in the consplisimmat of the chjestives of this program. .04 The Office of Strategic Information obell formulate policies and provide advice and guidance to departments and agencies of the amentivo branch of the Federal Government respecting the publicatim of unclassified information with which this order is concerned. .05 The Office of Strategic Information shall foumalate policies and provide advice and guidance to departamenta and agencies of the exsoutive branch respecting the exchange of publications with foreign comtrion and organisations. .06 The Office of Strategie Informtim shell comparete with and render advice to privato American organisations in connection with private interactiemel exchanges of publications. .07 The Office of Strategic Information shall perform such other fauctions inherent in the reaponcibilition set forth in this der. Section & Advisory Comittese: .01 There is hereby so tablicand a Department of Commerce Committee on Strategic Information which shall advise with the Office of Rrategie Information on proposed plons and activities relating to the various aspects of its progra. .02 The following officials of the Department of Commerce shall serve as members of this Committee: Deputy Assistant Secretary for Intermotimal Affaire Directer, Office of Administrative Oporations Security Control Officer Director, Office of Technion! Services, who shall serve so Chair Director, Office of Public Inferuatio Director, Office of Strategie infermtion, ex officio .03 The Secretary of Commerce in consultation oith appropriate federal ammeies will establish the Committees indicated in Sections 3.011 and 3.013. Sestion 7. Effect on Other Orders: Any other orders or parts of orders the provisions of whileè are inconsistent or in conflict with the provisions of this order are hereby amanded or supervaded socordingly. |