Congressional Documents


105th Congress                                            Rept. 105-135
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     Part 1
_______________________________________________________________________


 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1998

                                _______
                                

                 June 18, 1997.--Ordered to be printed

_______________________________________________________________________


    Mr. Goss, from the Permanent Select Committee on Intelligence, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1775]

      [Including cost estimate of the Congressional Budget Office]

  The Permanent Select Committee on Intelligence, to whom was 
referred the bill (H.R. 1775) to authorize appropriations for 
fiscal year 1998 for intelligence and intelligence-related 
activities of the United States Government, the Community 
Management Account, and the Central Intelligence Agency 
Retirement and Disability System, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

                                CONTENTS

The bill as reported.............................................     2
Purpose..........................................................    11
Overall perspective on the intelligence budget and committee 
  intent.........................................................    12
Scope of committee review........................................    12
Committee findings and recommendations...........................    13
Areas of Special Interest........................................    15
    Shortfalls in All-Source Analysis............................    15
    ``Downstream'' Intelligence Activities.......................    17
    Clandestine Humint Funding...................................    18
        Present funding of Clandestine Humint....................    18
        Budgeting for the Future.................................    19
    Technical Investments........................................    19
    A Corporate and Flexible Community...........................    20
    Quadrennial Defense Review of Intelligence...................    21
    Intelligence System Interoperability.........................    22
    FBIS Reorganization..........................................    23
    DCI Nonproliferation Center..................................    24
    Declassification.............................................    26
    Review of National Drug Intelligence Architecture............    27
Joint Military Intelligence Program..............................    28
Tactical Intelligence and Related Activities.....................    45
Section-by-Section Analysis of the Bill as Reported..............    53
    Title I--Intelligence Activities.............................    53
        Section 101--Authorization of Appropriations.............    53
        Section 102--Classified Schedule of Authorizations.......    53
        Section 103--Personnel Ceiling Adjustments...............    53
        Section 104--Community Management Account................    54
    Title II--Central Intelligence Agency Retirement and 
      Disability System..........................................    54
        Section 201--Authorization of Appropriations.............    54
    Title III--General Provisions................................    54
        Section 301--Increase in Employee Compensation and 
          Benefits Authorized by Law.............................    54
        Section 302--Restriction on Conduct of Intelligence 
          Activities.............................................    54
        Section 303--Administration of the Office of the Director 
          of Central Intelligence................................    55
        Section 304--Detail of Intelligence Community Personnel--
          Intelligence Community Assignment Program..............    55
        Section 305--Application of Sanctions Laws to 
          Intelligence Activities................................    56
    Title IV--Central Intelligence Agency........................    58
        Section 401--Multiyear Leasing Authority.................    58
        Section 402--CIA Central Services Program................    59
        Section 403--Protection of CIA Facilities................    59
    Title V--Department of Defense...............................    61
        Section 501--Authority to Award Academic Degree of 
          Bachelor of Science in Intelligence....................    61
        Section 502--Unauthorized Use of Name, Initials, or Seal 
          of National Reconnaissance Office......................    62
        Section 503--Extension of Authority for Enhancement of 
          Capabilities of Certain Army Facilities................    62
    Title VI--Miscellaneous Community Program Adjustments........    63
        Section 601--Coordination of Armed Forces Information 
          Security Programs......................................    63
        Section 602--Authority of Executive Agent of Integrated 
          Broadcast Service......................................    63
        Section 603--Predator Unmanned Aerial Vehicle............    63
        Section 604--U-2 Sensor Program..........................    63
        Section 605--Requirements Relating to Congressional 
          Budget Justification Books.............................    64
        Section 606--Joint SIGINT Program Office.................    64
        Section 607--Discontinuation of the Defense Space 
          Reconnaissance Program.................................    65
        Section 608--Defense Airborne Reconnaissance Office......    65
Committee position...............................................    65
Findings and recommendations of the Committee on Government 
  Reform and Oversight...........................................    65
Oversight findings...............................................    65
Fiscal year cost projections.....................................    66
Congressional Budget Office estimates............................    66
Committee cost estimates.........................................    67
Specific Constitutional authority for Congressional enactment of 
  this legislation...............................................    67
Changes to existing law..........................................    68
Minority views...................................................    79
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Intelligence Authorization Act for 
Fiscal Year 1998''.

                    TITLE I--INTELLIGENCE ACTIVITIES

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

  Funds are hereby authorized to be appropriated for fiscal year 1998 
for the conduct of the intelligence and intelligence-related activities 
of the following elements of the United States Government:
          (1) The Central Intelligence Agency.
          (2) The Department of Defense.
          (3) The Defense Intelligence Agency.
          (4) The National Security Agency.
          (5) The Department of the Army, the Department of the Navy, 
        and the Department of the Air Force.
          (6) The Department of State.
          (7) The Department of the Treasury.
          (8) The Department of Energy.
          (9) The Federal Bureau of Investigation.
          (10) The Drug Enforcement Administration.
          (11) The National Reconnaissance Office.
          (12) The National Imagery and Mapping Agency.

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

  (a) Specifications of Amounts and Personnel Ceilings.--The amounts 
authorized to be appropriated under section 101, and the authorized 
personnel ceilings as of September 30, 1998, for the conduct of the 
intelligence and intelligence-related activities of the elements listed 
in such section, are those specified in the classified Schedule of 
Authorizations prepared to accompany the bill H.R. 1775 of the 105th 
Congress.
  (b) Availability of Classified Schedule of Authorizations.--The 
Schedule of Authorizations shall be made available to the Committees on 
Appropriations of the Senate and House of Representatives and to the 
President. The President shall provide for suitable distribution of the 
Schedule, or of appropriate portions of the Schedule, within the 
executive branch.

SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

  (a) Authority for Adjustments.--With the approval of the Director of 
the Office of Management and Budget, the Director of Central 
Intelligence may authorize employment of civilian personnel in excess 
of the number authorized for fiscal year 1998 under section 102 when 
the Director of Central Intelligence determines that such action is 
necessary to the performance of important intelligence functions, 
except that the number of personnel employed in excess of the number 
authorized under such section may not, for any element of the 
intelligence community, exceed two percent of the number of civilian 
personnel authorized under such section for such element.
  (b) Notice to Intelligence Committees.--The Director of Central 
Intelligence shall promptly notify the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select Committee 
on Intelligence of the Senate whenever he exercises the authority 
granted by this section.

SEC. 104. COMMUNITY MANAGEMENT ACCOUNT.

  (a) Authorization of Appropriations.--There is authorized to be 
appropriated for the Community Management Account of the Director of 
Central Intelligence for fiscal year 1998 the sum of $147,588,000. 
Within such amount, funds identified in the classified Schedule of 
Authorizations referred to in section 102(a) for the Advanced Research 
and Development Committee and the Environmental Intelligence and 
Applications Program shall remain available until September 30, 1999.
  (b) Authorized Personnel Levels.--The elements within the Community 
Management Account of the Director of Central Intelligence are 
authorized a total of 313 full-time personnel as of September 30, 1998. 
Such personnel may be permanent employees of the Community Management 
Account elements or personnel detailed from other elements of the 
United States Government.
  (c) Classified Authorizations.--In addition to amounts authorized to 
be appropriated by subsection (a) and the personnel authorized by 
subsection (b)--
          (1) there is authorized to be appropriated for fiscal year 
        1998 such amounts, and
          (2) there is authorized such personnel as of September 30, 
        1998,
for the Community Management Account, as are specified in the 
classified Schedule of Authorizations referred to in section 102(a).
  (d) Reimbursement.--Except as provided in section 113 of the National 
Security Act of 1947 (as added by section 304 of this Act), during 
fiscal year 1998 any officer or employee of the United States or member 
of the Armed Forces who is detailed to an element of the Community 
Management Account from another element of the United States Government 
shall be detailed on a reimbursable basis; except that any such 
officer, employee, or member may be detailed on a nonreimbursable basis 
for a period of less than one year for the performance of temporary 
functions as required by the Director of Central Intelligence.
  (e) National Drug Intelligence Center.--
          (1) In general.--Of the amount authorized to be appropriated 
        in subsection (a), the amount of $27,000,000 shall be available 
        for the National Drug Intelligence Center. Within such amount, 
        funds provided for research, development, test, and engineering 
        purposes shall remain available until September 30, 1999, and 
        funds provided for procurement purposes shall remain available 
        until September 30, 2000.
          (2) Transfer of funds.--The Director of Central Intelligence 
        shall transfer to the Attorney General of the United States 
        funds available for the National Drug Intelligence Center under 
        paragraph (1). The Attorney General shall utilize funds so 
        transferred for the activities of the Center.
          (3) Limitation.--Amounts available for the Center may not be 
        used in contravention of the provisions of section 103(d)(1) of 
        the National Security Act of 1947 (50 U.S.C. 403-3(d)(1)).
          (4) Authority.--Notwithstanding any other provision of law, 
        the Attorney General shall retain full authority over the 
        operations of the Center.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

  There is authorized to be appropriated for the Central Intelligence 
Agency Retirement and Disability Fund for fiscal year 1998 the sum of 
$196,900,000.

                     TITLE III--GENERAL PROVISIONS

SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY 
                    LAW.

  Appropriations authorized by this Act 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.

SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

  The authorization of appropriations by this Act shall not be deemed 
to constitute authority for the conduct of any intelligence activity 
which is not otherwise authorized by the Constitution or the laws of 
the United States.

SEC. 303. ADMINISTRATION OF THE OFFICE OF THE DIRECTOR OF CENTRAL 
                    INTELLIGENCE.

  Subsection (e) of section 102 of the National Security Act of 1947 
(50 U.S.C. 403) is amended by adding at the end the following new 
paragraph:
  ``(4) The Office of the Director of Central Intelligence shall, for 
administrative purposes, be within the Central Intelligence Agency.''.

SEC. 304. DETAIL OF INTELLIGENCE COMMUNITY PERSONNEL--INTELLIGENCE 
                    COMMUNITY ASSIGNMENT PROGRAM.

  (a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 401 et seq.) is amended by adding at the end the following new 
section:
 ``detail of intelligence community personnel--intelligence community 
                           assignment program
  ``Sec. 113. (a) Detail.--(1) Notwithstanding any other provision of 
law, the head of a department with an element in the intelligence 
community or the head of an intelligence community agency or element 
may detail any employee within that department, agency, or element to 
serve in any position in the Intelligence Community Assignment Program 
on a reimbursable or a nonreimbursable basis.
  ``(2) Nonreimbursable details may be for such periods as are agreed 
to between the heads of the parent and host agencies, up to a maximum 
of three years, except that such details may be extended for a period 
not to exceed 1 year when the heads of the parent and host agencies 
determine that such extension is in the public interest.
  ``(b) Benefits, Allowances, Travel, Incentives.--An employee detailed 
under subsection (a) may be authorized any benefit, allowance, travel, 
or incentive otherwise provided to enhance staffing by the organization 
from which they are being detailed.
  ``(c) Annual Report.--(1) Not later than March 1 of each year, the 
Director of the Central Intelligence Agency shall submit to the 
Permanent Select Committee onIntelligence of the House of 
Representatives and the Select Committee on Intelligence of the Senate 
a report describing the detail of intelligence community personnel 
pursuant to subsection (a) for the previous 12-month period, including 
the number of employees detailed, the identity of parent and host 
agencies or elements, and an analysis of the benefits of the program.
  ``(2) The Director shall submit the first of such reports not later 
than March 1, 1999.
  ``(d) Termination.--The authority to make details under this section 
terminates on September 30, 2002.''.
  (b) Technical Amendment.--Sections 120, 121, and 110 of the National 
Security Act of 1947 are hereby redesignated as sections 110, 111, and 
112, respectively.
  (c) Clerical Amendment.--The table of contents contained in the first 
section of such Act is amended by striking the items relating to 
sections 120, 121, and 110 and inserting the following:

``Sec. 110. National mission of National Imagery and Mapping Agency.
``Sec. 111. Collection tasking authority.
``Sec. 112. Restrictions on intelligence sharing with the United 
Nations.
``Sec. 113. Detail of intelligence community personnel--intelligence 
community assignment program.''.

  (d) Effective Date.--The amendment made by subsection (a) of this 
section shall apply to an employee on detail on or after January 1, 
1997.

SEC. 305. APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES.

  Section 905 of the National Security Act of 1947 (50 U.S.C. 441d) is 
amended by striking ``1998'' and inserting ``1999''.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

SEC. 401. MULTIYEAR LEASING AUTHORITY.

  (a) In General.--Section 5 of the Central Intelligence Agency Act of 
1949 is amended--
          (1) by redesignating paragraphs (a) through (f) as paragraphs 
        (1) through (6), respectively;
          (2) by inserting ``(a)'' after ``Sec. 5.'';
          (3) by striking ``and'' at the end of paragraph (5), as so 
        redesignated;
          (4) by striking the period at the end of paragraph (6), as so 
        redesignated, and inserting ``; and'';
          (5) by inserting after paragraph (6) the following new 
        paragraph:
  ``(7) Notwithstanding section 1341(a)(1) of title 31, United States 
Code, enter into multiyear leases for up to 15 years that are not 
otherwise authorized pursuant to section 8 of this Act.''; and
          (6) by inserting at the end the following new subsection:
  ``(b)(1) The authority to enter into a multiyear lease under 
subsection (a)(7) shall be subject to appropriations provided in 
advance for (A) the entire lease, or (B) the first 12 months of the 
lease and the Government's estimated termination liability.
  ``(2) In the case of any such lease entered into under clause (B) of 
paragraph (1)--
          ``(A) such lease shall include a clause that provides that 
        the contract shall be terminated if budget authority (as 
        defined by section 3(2) of the Congressional Budget and 
        Impoundment Control Act of 1974 (2 U.S.C. 622(2))) is not 
        provided specifically for that project in an appropriations Act 
        in advance of an obligation of funds in respect thereto;
          ``(B) notwithstanding section 1552 of title 31, United States 
        Code, amounts obligated for paying termination costs in respect 
        of such lease shall remain available until the costs associated 
        with termination of such lease are paid;
          ``(C) funds available for termination liability shall remain 
        available to satisfy rental obligations in respect of such 
        lease in subsequent fiscal years in the event such lease is not 
        terminated early, but only to the extent those funds are in 
        excess of the amount of termination liability in that 
        subsequent year; and
          ``(D) annual funds made available in any fiscal year may be 
        used to make payments on such lease for a maximum of 12 months 
        beginning any time during the fiscal year.''.
  (b) Effective Date.--The amendment made by subsection (a) applies 
with respect to multiyear leases entered into pursuant to section 5 of 
the Central Intelligence Agency Act of 1949, as amended by subsection 
(a), on or after October 1, 1997.

SEC. 402. CIA CENTRAL SERVICES PROGRAM.

  The Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.) 
is amended by adding at the end the following new section:
                       ``central services program
  ``Sec. 21. (a) Establishment.--The Director may--
          ``(1) establish a program to provide the central services 
        described in subsection (b)(2); and
          ``(2) make transfers to and expenditures from the working 
        capital fund established under subsection (b)(1).
  ``(b) Establishment and Purposes of Central Services Working Capital 
Fund.--(1) There is established a central services working capital 
fund. The Fund shall be available until expended for the purposes 
described in paragraph (2), subject to subsection (j).
  ``(2) The purposes of the Fund are to pay for equipment, salaries, 
maintenance, operation and other expenses for such services as the 
Director, subject to paragraph (3), determines to be central services 
that are appropriate and advantageous to provide to the Agency or to 
other Federal agencies on a reimbursable basis.
  ``(3) The determination and provision of central services by the 
Director of Central Intelligence under paragraph (2) shall be subject 
to the prior approval of the Director of the Office of Management and 
Budget.
  ``(c) Assets in Fund.--The Fund shall consist of money and assets, as 
follows:
          ``(1) Amounts appropriated to the Fund for its initial 
        monetary capitalization.
          ``(2) Appropriations available to the Agency under law for 
        the purpose of supplementing the Fund.
          ``(3) Such inventories, equipment, and other assets, 
        including inventories and equipment on order, pertaining to the 
        services to be carried on by the central services program.
          ``(4) Such other funds as the Director is authorized to 
        transfer to the Fund.
  ``(d) Limitations.--(1) The total value of orders for services 
described in subsection (b)(2) from the central services program at any 
time shall not exceed an annual amount approved in advance by the 
Director of the Office of Management and Budget.
  ``(2) No goods or services may be provided to any non-Federal entity 
by the central services program.
  ``(e) Reimbursements to Fund.--Notwithstanding any other provision of 
law, the Fund shall be--
          ``(1) reimbursed, or credited with advance payments, from 
        applicable appropriations and funds of the Agency, other 
        Intelligence Community agencies, or other Federal agencies, for 
        the central services performed by the central services program, 
        at rates that will recover the full cost of operations paid for 
        from the Fund, including accrual of annual leave, workers' 
        compensation, depreciation of capitalized plant and equipment, 
        and amortization of automated data processing software; and
          ``(2) if applicable credited with the receipts from sale or 
        exchange of property, including any real property, or in 
        payment for loss or damage to property, held by the central 
        services program as assets of the Fund.
  ``(f) Retention of Portion of Fund Income.--(1) The Director may 
impose a fee for central services provided from the Fund. The fee for 
any item or service provided under the central services program may not 
exceed four percent of the cost of such item or service.
  ``(2) As needed for the continued self-sustaining operation of the 
Fund, an amount not to exceed four percent of the net receipts of the 
Fund in fiscal year 1998 and each fiscal year thereafter may be 
retained, subject to subsection (j), for the acquisition of capital 
equipment and for the improvement and implementation of the Agency's 
information management systems (including financial management, 
payroll, and personnel information systems). Any proposed use of the 
retained income in fiscal years 1998, 1999, and 2000, shall only be 
made with the approval of the Director of the Office of Management and 
Budget and after notification to the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select Committee 
on Intelligence of the Senate.
  ``(3) Not later than 30 days after the close of each fiscal year, 
amounts in excess of the amount retained under paragraph (2) shall be 
transferred to the United States Treasury.
  ``(g) Audit.--(1) The Inspector General of the Central Intelligence 
Agency shall conduct and complete an audit of the Fund within three 
months after the close ofeach fiscal year. The Director of the Office 
of Management and Budget shall determine the form and content of the 
audit, which shall include at least an itemized accounting of the 
central services provided, the cost of each service, the total receipts 
received, the agencies or departments serviced, and the amount returned 
to the United States Treasury.
  ``(2) Not later than 30 days after the completion of the audit, the 
Inspector General shall submit a copy of the audit to the Director of 
the Office of Management and Budget, the Director of Central 
Intelligence, the Permanent Select Committee on Intelligence of the 
House of Representatives and the Select Committee on Intelligence of 
the Senate.
  ``(h) Definitions.--For purposes of this section--
          ``(1) the term `central services program' means the program 
        established under subsection (a); and
          ``(2) the term `Fund' means the central services working 
        capital fund established under subsection (b)(1).
  ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to the Fund $5,000,000 for the purposes specified in 
subsection (b)(2).
  ``(j) Termination.--(1) The Fund shall terminate on March 31, 2000, 
unless otherwise reauthorized by an Act of Congress prior to that date.
  ``(2) Subject to paragraph (1) and after providing notice to the 
Permanent Select Committee on Intelligence of the House of 
Representatives and the Select Committee on Intelligence of the Senate, 
the Director of Central Intelligence and the Director of the Office of 
Management and Budget--
          ``(A) may terminate the central services program and the Fund 
        at any time; and
          ``(B) upon any such termination, shall provide for 
        dispositions of personnel, assets, liabilities, grants, 
        contracts, property, records, and unexpended balances of 
        appropriations, authorizations, allocations, and other funds 
        held, used, arising from, available to, or to be made available 
        in connection with such Fund, as may be necessary.''.

SEC. 403. PROTECTION OF CIA FACILITIES.

  Subsection (a) of section 15 of the Central Intelligence Agency Act 
of 1949 (50 U.S.C. 403o(a)) is amended--
          (1) by inserting ``(1)'' after ``(a)'';
          (2) by striking ``powers only within Agency installations,'' 
        and all that follows through the end, and inserting the 
        following: ``powers--
          ``(A) within the Agency Headquarters Compound and the 
        property controlled and occupied by the Federal Highway 
        Administration located immediately adjacent to such Compound 
        and in the streets, sidewalks, and the open areas within the 
        zone beginning at the outside boundary of such Compound and 
        property and extending outward 500 feet; and
          ``(B) within any other Agency installation and in the 
        streets, sidewalks, and open areas within the zone beginning at 
        the outside boundary of any such installation and extending 
        outward 500 feet.''; and
          (3) by adding at the end the following new paragraphs:
  ``(2) The performance of functions and exercise of powers under 
paragraph (1) shall be limited to those circumstances where such 
personnel can identify specific and articulable facts giving such 
personnel reason to believe that their performance of such functions 
and exercise of such powers is reasonable to protect against physical 
attack or threats of attack upon the Agency installations, property, or 
employees.
  ``(3) Nothing in this subsection shall be construed to preclude, or 
limit in any way, the authority of any Federal, State, or local law 
enforcement agency or of any other Federal police or Federal protective 
service.
  ``(4) The rules and regulations enforced by such personnel shall be 
the rules and regulations promulgated by the Director and shall only be 
applicable to the areas referred to in paragraph (1).
  ``(5) On December 1, 1998, and annually thereafter, the Director 
shall submit a report to the Permanent Select Committee on Intelligence 
of the House of Representatives and the Select Committee on 
Intelligence of the Senate that describes in detail the exercise of the 
authority granted by this subsection, and the underlying facts 
supporting the exercise of such authority, during the preceding fiscal 
year. The Director shall make such report available to the Inspector 
General of the Agency.''.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

SEC. 501. AUTHORITY TO AWARD ACADEMIC DEGREE OF BACHELOR OF SCIENCE IN 
                    INTELLIGENCE.

  (a) Authority for New Bachelor's Degree.--Section 2161 of title 10, 
United States Code, is amended to read as follows:

``Sec. 2161. Joint Military Intelligence College: academic degrees

  ``Under regulations prescribed by the Secretary of Defense, the 
president of the Joint Military Intelligence College may, upon 
recommendation by the faculty of the college, confer upon a graduate of 
the college who has fulfilled the requirements for the degree the 
following:
          ``(1) The degree of Master of Science of Strategic 
        Intelligence (MSSI).
          ``(2) The degree of Bachelor of Science in Intelligence 
        (BSI).''.
  (b) Clerical Amendment.--The item relating to that section in the 
table of sections at the beginning of chapter 108 of such title is 
amended to read as follows:

``2161. Joint Military Intelligence College: academic degrees.''.

SEC. 502. UNAUTHORIZED USE OF NAME, INITIALS, OR SEAL OF NATIONAL 
                    RECONNAISSANCE OFFICE.

  (a) Extension, Reorganization, and Consolidation of Authorities.--
Subchapter I of chapter 21 of title 10, United States Code, is amended 
by adding at the end the following new section:

``Sec. 425. Prohibition of unauthorized use of name, initials, or seal: 
                    specified intelligence agencies

  ``(a) Prohibition.--Except with the written permission of the 
Secretary of Defense, no person may knowingly use, in connection with 
any merchandise, retail product, impersonation, solicitation, or 
commercial activity in a manner reasonably calculated to convey the 
impression that such use is approved, endorsed, or authorized by the 
Secretary of Defense, any of the following (or any colorable imitation 
thereof):
          ``(1) The words `Defense Intelligence Agency', the initials 
        `DIA', or the seal of the Defense Intelligence Agency.
          ``(2) The words `National Reconnaissance Office', the 
        initials `NRO', or the seal of the National Reconnaissance 
        Office.
          ``(3) The words `National Imagery and Mapping Agency', the 
        initials `NIMA', or the seal of the National Imagery and 
        Mapping Agency.
          ``(4) The words `Defense Mapping Agency', the initials `DMA', 
        or the seal of the Defense Mapping Agency.''.
  (b) Transfer of Enforcement Authority.--Subsection (b) of section 202 
of title 10, United States Code, is transferred to the end of section 
425 of such title, as added by subsection (a), and is amended by 
inserting ``Authority To Enjoin Violations.--'' after ``(b)''.
  (c) Repeal of Reorganized Provisions.--Sections 202 and 445 of title 
10, United States Code, are repealed.
  (d) Clerical Amendments.--
          (1) The table of sections at the beginning of subchapter II 
        of chapter 8 of title 10, United States Code, is amended by 
        striking out the item relating to section 202.
          (2) The table of sections at the beginning of subchapter I of 
        chapter 21 of title 10, United States Code, is amended by 
        striking out the items relating to sections 424 and 425 and 
        inserting in lieu thereof the following:

``424. Disclosure of organizational and personnel information: 
exemption for Defense Intelligence Agency, National Reconnaissance 
Office, and National Imagery and Mapping Agency.
``425. Prohibition of unauthorized use of name, initials, or seal: 
specified intelligence agencies.''.

          (3) The table of sections at the beginning of subchapter I of 
        chapter 22 of title 10, United States Code, is amended by 
        striking out the item relating to section 445.

SEC. 503. EXTENSION OF AUTHORITY FOR ENHANCEMENT OF CAPABILITIES OF 
                    CERTAIN ARMY FACILITIES.

  Effective October 1, 1997, section 506(b) of the Intelligence 
Authorization Act for Fiscal Year 1996 (Public Law 104-93; 109 Stat. 
974) is amended by striking out``fiscal years 1996 and 1997'' and 
inserting in lieu thereof ``fiscal years 1998 and 1999''.

         TITLE VI--MISCELLANEOUS COMMUNITY PROGRAM ADJUSTMENTS

SEC. 601. COORDINATION OF ARMED FORCES INFORMATION SECURITY PROGRAMS.

  (a) Program Execution Coordination.--The Secretary of a military 
department or the head of a defense agency may not obligate or expend 
funds for any information security program of that military department 
without the concurrence of the Director of the National Security 
Agency.
  (b) Effective Date.--This section takes effect on October 1, 1997.

SEC. 602. AUTHORITY OF EXECUTIVE AGENT OF INTEGRATED BROADCAST SERVICE.

  All amounts appropriated for any fiscal year for intelligence 
information data broadcast systems may be obligated or expended by an 
intelligence element of the Department of Defense only with the 
concurrence of the official in the Department of Defense designated as 
the executive agent of the Integrated Broadcast Service.

SEC. 603. PREDATOR UNMANNED AERIAL VEHICLE.

  (a) Transfer of Functions.--Effective October 1, 1997, the functions 
described in subsection (b) with respect to the Predator Unmanned 
Aerial Vehicle are transferred to the Secretary of the Air Force.
  (b) Functions To Be Transferred.--Subsection (a) applies to those 
functions performed as of June 1, 1997, by the organization within the 
Department of Defense known as the Unmanned Aerial Joint Program Office 
with respect to the Predator Unmanned Aerial Vehicle.
  (c) Transfer of Funds.--Effective October 1, 1997, all unexpended 
funds appropriated for the Predator Unmanned Aerial Vehicle that are 
within the Defense-Wide Program Element number 0305205D are transferred 
to Air Force Program Element number 0305154F.

SEC. 604. U-2 SENSOR PROGRAM.

  (a) Requirement for Minimum Number of Aircraft.--The Secretary of 
Defense shall ensure--
          (1) that not less than 11 U-2 reconnaissance aircraft are 
        equipped with RAS-1 sensor suites; and
          (2) that each such aircraft that is so equipped is maintained 
        in a manner necessary to counter available threat technologies 
        until the aircraft is retired or until a successor sensor suite 
        is developed and fielded.
  (b) Effective Date.--Subsection (a) takes effect on October 1, 1997.

SEC. 605. REQUIREMENTS RELATING TO CONGRESSIONAL BUDGET JUSTIFICATION 
                    BOOKS.

  (a) In General.--The congressional budget justification books for any 
element of the intelligence community submitted to Congress in support 
of the budget of the President for any fiscal year shall include, at a 
minimum, the following:
          (1) For each program for which appropriations are requested 
        for that element of the intelligence community in that budget--
                  (A) specification of the program, including the 
                program element number for the program;
                  (B) the specific dollar amount requested for the 
                program;
                  (C) the appropriation account within which funding 
                for the program is placed;
                  (D) the budget line item that applies to the program;
                  (E) specification of whether the program is a 
                research and development program or otherwise involves 
                research and development;
                  (F) identification of the total cost for the program; 
                and
                  (G) information relating to all direct and associated 
                costs in each appropriations account for the program.
          (2) A detailed accounting of all reprogramming or 
        reallocation actions and the status of those actions at the 
        time of submission of those materials.
          (3) Information relating to any unallocated cuts or taxes.
  (b) Definitions.--For purposes of this section:
          (1) The term ``intelligence community'' has the meaning given 
        that term in section 3 of the National Security Act of 1947 (50 
        U.S.C. 401a).
          (2) The term ``congressional budget justification books'' 
        means the budget justification materials submitted to Congress 
        for any fiscal year in support ofthe budget for that fiscal 
year for any element of the intelligence community (as contained in the 
budget of the President submitted to Congress for that fiscal year 
pursuant to section 1105 of title 31, United States Code).
  (c) Effective Date.--Subsection (a) shall take effect with respect to 
fiscal year 1999.

SEC. 606. COORDINATION OF AIR FORCE JOINT SIGINT PROGRAM OFFICE 
                    ACTIVITIES WITH OTHER MILITARY DEPARTMENTS.

  (a) Contracts.--The Secretary of the Air Force, acting through the 
Air Force Joint Airborne Signals Intelligence Program Office, may not 
modify, amend, or alter a JSAF program contract without coordinating 
with the Secretary of any other military department that would be 
affected by the modification, amendment, alteration.
  (b) New Developments Affecting Operational Military Requirements.--
(1) The Secretary of the Air Force, acting through the Air Force Joint 
Airborne Signals Intelligence Program Office, may not enter into a 
contract described in paragraph (2) without coordinating with the 
Secretary of the military department concerned.
  (2) Paragraph (1) applies to a contract for development relating to a 
JSAF program that may directly affect the operational requirements of 
one of the Armed Forces (other than the Air Force) for the satisfaction 
of intelligence requirements.
  (c) JSAF Program Defined.--For purposes of this section, the term 
``JSAF program'' means a program within the Joint Signals Intelligence 
Avionics Family of programs administered by the Air Force Joint 
Airborne Signals Intelligence Program Office.
  (d) Effective Date.--This section takes effect on October 1, 1997.

SEC. 607. DISCONTINUATION OF THE DEFENSE SPACE RECONNAISSANCE PROGRAM.

  Not later than October 1, 1999, the Secretary of Defense shall--
          (1) discontinue the Defense Space Reconnaissance Program (a 
        program within the Joint Military Intelligence Program); and
          (2) close the organization within the Department of Defense 
        known as the Defense Space Program Office (the management 
        office for that program).

SEC. 608. TERMINATION OF DEFENSE AIRBORNE RECONNAISSANCE OFFICE.

  (a) Termination of Office.--The organization within the Department of 
Defense known as the Defense Airborne Reconnaissance Office is 
terminated. No funds available for the Department of Defense may be 
used for the operation of that Office after the date specified in 
subsection (d).
  (b) Transfer of Functions.--(1) Subject to paragraphs (3) and (4), 
the Secretary of Defense shall transfer to the Defense Intelligence 
Agency those functions performed on the day before the date of the 
enactment this Act by the Defense Airborne Reconnaissance Office that 
are specified in paragraph (2).
  (2) The functions transferred by the Secretary to the Defense 
Intelligence Agency under paragraph (1) shall include functions of the 
Defense Airborne Reconnaissance Office relating to its responsibilities 
for management oversight and coordination of defense airborne 
reconnaissance capabilities (other than any responsibilities for 
acquisition of systems).
  (3) The Secretary shall determine which specific functions are 
appropriate for transfer under paragraph (1). In making that 
determination, the Secretary shall ensure that responsibility for 
individual airborne reconnaissance programs with respect to program 
management, for research, development, test, and evaluation, for 
acquisition, and for operations and related line management remain with 
the respective Secretaries of the military departments.
  (4) Any function transferred to the Defense Intelligence Agency under 
this subsection is subject to the authority, direction, and control of 
the Secretary of Defense.
  (c) Report.--(1) Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
committees named in paragraph (2) a report containing the Secretary's 
plan for terminating the Defense Airborne Reconnaissance Office and 
transferring the functions of that office.
  (2) The committees referred to in paragraph (1) are--
          (A) the Committee on Armed Services and the Select Committee 
        on Intelligence of the Senate; and
          (B) the Permanent Select Committee on Intelligence and the 
        Committee on National Security of the House of Representatives.
  (d) Effective Date.--Subsection (a) shall take effect at the end of 
the 120-day period beginning on the date of the enactment of this Act.

                                Purpose

    The bill would:
    (1) Authorize appropriations for fiscal year 1997 for (a) 
the intelligence and intelligence-related activities of the 
U.S. Government, (b) the Community Management Account, and (c) 
the Central Intelligence Agency Retirement and Disability 
System;
    (2) Authorize the personnel ceilings on September 30, 1998 
for the intelligence and intelligence-related activities of the 
U.S. Government and permit the Director of Central Intelligence 
to authorize personnel ceilings in Fiscal Year 1998 for any 
Intelligence element up to two percent above the authorized 
levels, with the approval of the Director of the Office of 
Management and Budget;
    (3) Authorize $27 million for the National Drug 
Intelligence Center in Johnstown, Pennsylvania;
    (4) Authorize the Intelligence Community Assignment 
Program, which is intended to develop a ``corporate'' 
perspective among senior Intelligence Community employees 
participating in the program;
    (5) Extend the authority of the President to defer the 
imposition of sanctions through January 6, 1999, when to 
proceed without delay would seriously risk the compromise of an 
intelligence source or method, or an ongoing criminal 
investigation;
    (6) Provide the Central Intelligence Agency with multiyear 
leasing authority;
    (7) Authorize the establishment of a ``Central Services 
Program'' within the Central Intelligence Agency that will help 
reduce costs and streamline operations within the Intelligence 
Community, and authorize the obligation of $5 million from 
among the funds authorized to be appropriated to the CIA, which 
will be utilized to cover management and overhead costs of the 
Central Services Program, with reporting requirements to both 
the Director of the Office of Management and Budget and the 
oversight committees of Congress;
    (8) Provide the CIA with additional authority to protect 
its facilities and employees from criminal and terrorist 
threats;
    (9) Authorize the Joint Military Intelligence College to 
award Bachelor of Science in Intelligence and Masters of 
Science of Strategic Intelligence degrees, pursuant to 
regulations prescribed by the Secretary of Defense;
    (10) Prohibit the unauthorized use of the name, initials, 
or seal of the National Reconnaissance Office;
    (11) Extend the Army's flexible transfer and reprogramming 
authority to rectify infrastructure and quality of life 
problems at Bad Aibling and Menwith Hill Stations;
    (12) Require the coordination of all defense and military 
information security systems programs by the National Security 
Agency;
    (13) Allow the obligation of funds for intelligence and 
intelligence-related data broadcast systems only with the 
concurrence of the Integrated Broadcast Service Executive 
Agent:
    (14) Transfer those functions relating to the Predator 
unmanned aerial vehicle to the Air Force;
    (15) Require the maintenance of a specific number of U-2 
Reconnaissance Aircraft with sensor suites;
    (16) Require that the Congressional Budget Justification 
Books for the National Foreign Intelligence Program and the 
Congressional Justification Books for the Joint Military 
Intelligence Program and the Tactical Intelligence and Related 
Activities of the Department of Defense supply more detail to 
Congress than is currently provided;
    (17) Discontinue the Defense Space Reconnaissance Program; 
and
    (18) Abolish the Defense Airborne Reconnaissance Office and 
transfer its current functions to the Director, Defense 
Intelligence Agency.

  Overall Perspective on the Intelligence Budget and Committee Intent

    The classified annex to this public report includes the 
classified Schedule of Authorizations and its associated 
language. The Committee views the classified annex as an 
integral part of this legislation. The classified annex 
contains a thorough discussion of all budget issues considered 
by the Committee, which underlies the funding authorization 
found in the Schedule of Authorizations. It is the intent of 
the Committee that all intelligence programs discussed in the 
classified annex to this report be conducted in accord with the 
guidance and limitations set forth as associate language 
therein. The classified Schedule is incorporated directly into 
this legislation. The classified annex is available for review 
by all Members of the House of Representatives, subject to the 
requirements of clause 13 of Rule XLIII of the House.

                       Scope of Committee Review

    U.S. intelligence and intelligence-related activities under 
the jurisdiction of the Committee include the National Foreign 
Intelligence Program (``NFIP''), the Tactical Intelligence and 
Related Activities of the Department of Defense (``TIARA''), 
and the Joint Military Intelligence Program (``JMIP'').
    The NFIP consists of all programs of the Central 
Intelligence Agency, as well as those national foreign 
intelligence and/or counterintelligence programs conducted by: 
(1) the Department of Defense; (2) the Defense Intelligence 
Agency; (3) the National Security Agency; (4) the Departments 
of the Army, Navy, and Air Force; (5) the Department of State; 
(6) the Department of the Treasury; (7) the Department of 
Energy; (8) the Federal Bureau of Investigation; (9) the Drug 
Enforcement Administration; (10) the National Reconnaissance 
Office; and (11) the National Imagery and Mapping Agency.
    The Department of Defense TIARA are a diverse array of 
reconnaissance ant target acquisition programs that are a 
functional part of the basic military force structure and 
provide direct information support to military operations. 
TIARA, as defined by the Joint Chiefs of Staff and the 
Secretary of Defense, include those military intelligence 
activities outside the General Defense Intelligence Program 
that respond to the needs of military commanders for 
operational support information, as well as to national 
command, control, and intelligence requirements. The programs 
comprising TIARA also fall within the jurisdiction of the 
Committee on National Security in the House of Representatives.
    The JMIP was established in 1995 to provide integrated 
program management of defense intelligence elements that 
support defense-wide or theater-level consumers. Included 
within JMIP are aggregations created for management efficiency 
and characterized by similarity, either in intelligence 
discipline (e.g. Signals Intelligence, Imagery Intelligence), 
or function (e.g. satellite support, aerial reconnaissance). 
The following aggregations are included in the JMIP: (1) the 
Defense Cryptologic Program (``DCP''); (2) the Defense Imagery 
and Mapping Program (``DIMAP''); (3) the Defense General 
Intelligence Applications Program (``DGIAP''), which itself 
includes (a) the Defense Airborne Reconnaissance Program 
(``DARP''), (b) the Defense Intelligence Tactical Program 
(``DITP''), (c) the Defense Intelligence Special Technologies 
Program (``DISTP''), (d) the Defense Intelligence Counterdrug 
Program (``DICP''), and (e) the Defense Space Reconnaissance 
Program (``DSRP'').

                 Committee Findings and Recommendations

    The Committee completed its review of the President's 
fiscal year 1998 budget, carrying out its annual responsibility 
to prepare an authorization based on close examination of 
intelligence programs and proposed expenditures. The review 
continued to reflect the Committee's belief that intelligence 
activities must be examined by function as well as by program, 
thus, was structured across program lines and intelligence 
disciplines and themes. The Committee held seven full Committee 
budget-related hearings and two Subcommittee budget hearings on 
the following issues: Intelligence Requirements; Airborne 
Reconnaissance; Technical Intelligence; Overhead Collection; 
Human Intelligence; Covert Action; Analysis and Production; 
Counterintelligence; and Personnel and Legislative Issues. The 
Committee also held full Committee briefings on subjects such 
as the Future Imagery Architecture, Unconventional SIGNINT 
Capabilities, and some selected sensitive DoD collection 
platforms. There were, in addition, over 100 staff briefings on 
programs, specific activities and budget requests.
    The Committee continued to place heavy emphasis on 
understanding and addressing the future needs of the 
Intelligence Community, and the several distinct roles that it 
plays in national security. At the national level, the goal of 
intelligence is to make the national-level policy maker and 
decision maker aware of impending events so that appropriate 
actions are taken, especially those than might avoid or contain 
conflict. At the other end of the spectrum, intelligence is now 
incorporated into the very fiber of tactical military 
operational activities, whether forces are being utilized to 
conduct humanitarian missions or are engaged in full-scale 
conflict. To serve national security objectives, the 
Intelligence Community must act throughout the spectrum. Too 
often, however, the Intelligence Community has not maintained a 
balance between the diverse strategic and tactical demands it 
now faces and will face in the future. Specifically, in recent 
years, the Community has emphasized fleeting current 
intelligence issues, often at the expense of keeping a watchful 
eye on those areas that are likely to be tomorrow crises. The 
Committee believes that a balance must be reached and 
maintained.
    The value and necessity of intelligent are such now that 
intelligence plays much more than a support role. Whether a 
decision maker is planning policy or responding to a fast-
breaking situation, intelligence is now regularly a part of the 
debate, often a prerequisite. Whether that response involves 
law enforcement, diplomacy or military forces, or even if the 
issue involves our nation's commercial or trade interests, 
intelligence data are the bedrock on which such a response is 
built. Moreover, in an era that is leading to the 
``digitization'' of the armed forces, intelligence will be as 
much a part of operations as firing a weapon.
    Techology enhances intelligence capabilities as well as 
provides new intelligence challenges. As suggested previously, 
information technology has created new areas of opportunity in 
intelligence operations. It also greatly facilitates 
intelligence exploitation, analysis and dissemination. But, the 
fact that access to and understanding of various technologies 
are expanding on a world-wide basis, is creating an era in 
which the United States may not enjoy the exclusive 
technological edge that it once had. It also is clear that in-
depth knowledge and usage of technology no longer applies 
exclusively to governments, but is present in organizations and 
individuals as well, some who would do harm to the U.S. or its 
interests. Consequently, although intelligence opportunities 
are enhanced, so too are the threats to our own technology-
based infrastructures. Our ability to protect U.S. systems, 
detect attempts to affect those systems and respond to such 
threats, also rely on an active, strong intelligence 
capability.
    Likewise, our national security is affected by a broader 
set of issues, that, heretofore, have not been so readily 
identified with our global interests. These issues range from 
economics to environmental concerns, and to the mass migration 
of people. Developments in these areas greatly expand the 
universe of problems with which the Community must grapple--
problems than demand a world-wide view and a highly flexible 
set of resource.
    The types of threats that face our nation demand that the 
Intelligence Community be ever vigilant on both the strategic 
and tactical levels. Countering the proliferation of weapons of 
mass destruction, narcotics trafficking, terrorism, and the 
activities ofinternational organized crime, by definition, call 
for the types of intelligence collection, analysis and reporting that 
emphasize the need to produce the hardest information--intentions, for 
example--and that substantiates the need for a dynamic intelligence 
capability. In short, in the world we face today and tomorrow, the 
United States must have its ``eyes and ears'' more than ever before to 
protect its freedom--politically, economically and militarily.
    With these points in mind, the Committee review was guided 
by two key questions. First, what programs are properly 
structured and sufficiently prepared for future needs and 
requirements, such that we can feel confident about our 
preparedness? And, second, what are our unmet needs? 
Unfortunately, the Committee review suggested a paucity of 
areas where the Intelligence Community is well situated for the 
future and an overabundance of unmet needs. Clearly, there are 
specific areas within specific programs where the Intelligence 
Community is functioning well and is ready for the future. But, 
by and large, the Committee finds several large areas of 
concern. Principal among these are:
          The Community's very limited analytical capabilities 
        to meet the myriad challenges ahead, especially to be 
        more strategic and predictive in viewpoint;
          the uncertain commitment and capability to collect 
        ``human intelligence'' on a world-wide basis, through 
        espionage;
          the growing capabilities of other nations and groups 
        to deny information, especially from our overhead 
        sensors, by employing ``denial and deception'' 
        techniques, and the Community's slow realization and 
        limited ability to recognize and overcome these 
        efforts; and
          the ever-growing demand for detailed, actionable 
        intelligence to law enforcement to support 
        prosecutions, while still protecting intelligence 
        sources and methods.
    Therefore, the Committee encourages the Director of Central 
Intelligence to work rapidly toward alleviating these concerns 
during this period when the nation is less at risk, in the 
physical sense, than during the Cold War. This Committee is 
prepared to assist in this effort. To that end, the Committee 
examined the Community's most immediate unmet needs, and has 
begun a process to address them. The basis for many of the 
Committee's decisions was formulated not only from examining 
these needs, but also from a set of themes that are important 
to establishing the type of Community that is vital to our 
future national security. These themes are basically included 
within the first five Areas of Special Interest of this report, 
and will be used to help focus the Committee's activities in 
the future.

                       Areas of Special Interest

                   shortfalls in all-source analysis

    The Committee is concerned that the Intelligence Community 
(IC) lacks the analytic depth, breadth and expertise to monitor 
political, military, and economic developments worldwide while 
maintaining in-depth expertise on critical countries and 
issues. Problems associated with analytic shortfalls include: a 
largely inexperienced workforce; lack of foreign language 
skills and limited in-country familiarity among all-source 
analysts; and a predominant focus on current intelligence that 
is eroding the IC's ability to conduct comprehensive strategic 
analysis.
    The Committee believes that the IC must make a concerted 
effort to enhance both substantive and linguistic expertise 
among its analytic corps. Moreover, the IC must maintain a 
basic level of knowledge about trends and developments 
worldwide, while maintaining the capability to warn of 
impending crises and ``surge'' resources during such crises. In 
addition, the IC must find ways to augment its analytic 
capability during crises without diminishing the ability to 
monitor other areas of the world.
    The Committee is very concerned with the fact that over the 
past several years, the IC has shifted analytic production to 
focus on short-term, event-driven analysis. While such a shift 
provides strong analytic coverage of day-to-day events, it 
comes at the expense of basic research and analysis. Not only 
does basic research and analysis provide the foundation for 
short-term, event-driven analysis, it also is critical to 
producing in-depth, long-term/strategic analysis of issues that 
will pose challenges to U.S. national security in the future.
    The Committee believes that the ability to process and 
analyze all-source information is crucial to the quality and 
utility of all-source analytic products. Unfortunately, the 
IC's ability to do thorough, truly all-source analysis may be 
hampered by the difficulties associated with prioritizing, 
processing, and analyzing the vast amounts of open source data 
available to analysts. Another area of concern in this regard 
is the ability of the IC's all-source analysts truly to have 
access to all sources of information. Bureaucratic barriers 
have been erected that have prevented access by all-source 
analysts to information from other departments, from other 
agencies within the IC and, in some cases, from other offices 
within the same agency. The Committee will continue to monitor 
initiatives to improve the IC's ability to collect, process, 
and analyze open source information, and of the ability of IC 
all-source analysts to gain sufficient access to all sources of 
information.
    Given the fact that resources for the IC are unlikely to 
increase significantly in the future, the Committee believes 
that the IC must find other ways to address shortfalls in 
analytic depth and breadth. The IC must examine the importance 
of all-source analysis relative to the importance of collection 
and support activities. The Committee is particularly concerned 
about the imbalance between collection and ``downstream'' 
processing of intelligence. Expending resources to collect 
intelligence that is not being analyzed is simply a waste of 
money.
    In order to enhance analytic expertise, the IC must improve 
training and better target its recruitment efforts. In 
addition, the IC must identify ways to fill analytic gaps and 
surge analytic resources without creating gaps elsewhere in the 
process. For the past several years, the Committee has strongly 
urged the IC to develop a ``civilian'' reserve capability that 
would tap into the expertise of former IC employees, non-IC 
experts, and linguists. Certain elements within the IC already 
have taken steps to augment analytic capabilities; the IC as a 
whole must do the same. In the fiscal year 1998 intelligence 
authorization bill, the Committee again has provided funds for 
the establishment of a pilot civilian reserve program. The 
Committee will closely scrutinize progress made in this area.
    Several new initiatives already are underway that will help 
the IC to maintain a worldwide information ``base'' and to 
augment existing analytic efforts. The Committee supports 
efforts to create ``knowledge databases,'' including the 
nascent World Basic Information Library (WBIL). Such efforts 
will help to ensure that the IC retains a baseline of knowledge 
on countries that often receive little attention until a crisis 
arises. The Committee also supports the Joint Reserve 
Intelligence Program (JRIP), a cost-effective program that 
utilizes the substantive and linguistic expertise of military 
reservists to augment the IC's analytic efforts.
    The Committee strongly believes that the IC must restore 
its capability to conduct long-term predictive analysis and 
warning. Core groups of analysts should be dedicated to doing 
research-oriented projects aimed at assessing strategic issues. 
In addition, the IC must educate its customers about the 
importance of long-term analysis. If the focus on near-term 
analysis is maintained at the expense of long-term analysis and 
research, the ability of policymakers and military commanders 
to deal effectively with future crises will be severely 
diminished. The main function of the IC is to provide its 
customers with predictive analysis and warning; if the IC loses 
the capability to do so, it will fail to meet its most basic 
mission.

                 ``downstream'' intelligence activities

    For the past several years, the Committee has expressed 
concern about the imbalance between intelligence collection and 
related ``downstream'' intelligence activities. The Committee 
is disturbed by the fact that the IC continues to spend 
billions on high-tech collection platforms without allocating 
adequate resources to those who review the raw product, analyze 
it, and put it before policymakers and military commanders in a 
useable format. This is not to say that there should be no 
funding for new collection systems (see the Areas of Special 
Interest item on Technical Investments), and this year's 
authorization provides for such investments. But to do so 
without alsoplanning investment for processing, exploitation, 
analysis and dissemination, serves to diminish the purpose and utility 
of the collection.
    The emphasis on collection at the expense of downstream 
activities permeates the IC at all levels and in most 
collection disciplines. The Defense Science Board, for one, has 
noted the fact that collection platforms have performed 
extremely well in Bosnia but that the ``warfighter'' has been 
overwhelmed by the amount of collected raw data, much of which 
remains unprocessed. In the Committee's analysis and production 
budget hearing, witnesses testified that the IC is ``binning'' 
(i.e., not exploiting) much of the broad-area search imagery 
that is collected. In addition, hard target analytic depth 
studies by the National Intelligence Council (NIC) conclude 
that the IC is ``awash'' in unexploited open source 
information. Finally, program managers consistently budget for 
satellite and launch requirements for new overhead collection 
systems, but largely ignore the need for funding sufficient 
ground processing capabilities.
    The Committee's fiscal year 1998 budget authorization 
emphasizes, among other things, the need to address processing, 
analysis and dissemination activities. For example, the 
Committee authorizes funds to create an open source 
requirements management system, enhance Measurement and 
Signatures Intelligence (MASINT) processing and exploitation, 
and advance the acquisition and fielding of analytic tools. 
These efforts, which are important first steps for addressing 
the collection-downstream imbalance, are only a small part of 
the solution.
    The Committee believes that the IC no longer needs, nor can 
it afford, to continue pouring vast amounts of money into 
expensive, high-tech collection platforms if the collected data 
is not exploited. Put simply, collecting information that is 
not processed and analyzed is simply a waste of taxpayer 
dollars. In the future, the Committee expects to see greater 
effort and resources placed on downstream activities and a more 
rational approach to collection activities. Requirements must 
be clearly and precisely articulated and collection decisions 
must be coordinated across the collection ``stovepipes.'' The 
Committee urges the Director of Central Intelligence (DCI), in 
concern with IC managers, to address the collection-downstream 
imbalance in future budget submissions.

                       Clandestine HUMINT Funding

    The Committee is concerned about the apparently ad hoc 
nature of annual funding for clandestine Human Intelligence 
(HUMINT). We believe that such funding should, instead, reflect 
a periodically adjusted and refined projection of the long-term 
needs of analysts and consumers for the product of clandestine 
HUMINT collection. To tie the funding of clandestine HUMINT to 
these long-term needs, the Committee recommends that the DCI 
establish an interagency task force to assess long-term 
collection needs and from that assessment, define the role of 
the clandestine service in the future and the funding profile 
necessary to build and sustain its capabilities.

Present funding of clandestine HUMINT

    The Committee is aware of three attempts by analysts in 
recent years to quantify the importance of the types of 
intelligence collection: A survey of the January 1993 National 
Intelligence Daily (NID), the 1994 Strategic Intelligence 
Review (SIR) process, and the 1995 Comprehensive Capabilities 
Review (CCR). In all three studies, clandestine HUMINT made a 
surprisingly strong showing, considering the small part of the 
intelligence budget that it consumes. In the NID survey, CIA/DO 
reporting was the dominant source cited for covertly acquired 
intelligence. In the 1994 SIR process, HUMINT was, in 
aggregate, the most important source of intelligence for the 
376 intelligence needs evaluated. In the CCR, clandestine 
HUMINT and SIGINT were found to be roughly of the same value in 
pursuing the various top-tier issues of Presidential Decision 
Directive 35. Uncounted in any of these studies, and adding 
enormously to the value of clandestine HUMINT, is its 
contribution to clandestine technical operations and in 
compromising foreign cryptographic materials.
    The importance of the clandestine service in the future has 
not been lost on those looking at the future of the IC as a 
whole. Studies undertaken in the last two years by the ``Aspin-
Brown'' Commission, the Council on Foreign Relations, and this 
Committee have all emphasized that the intelligence targets of 
the future will be such that clandestine HUMINT will be even 
more important than it is today. The likely rapid spread of 
encryption technologies and the move towards declassifying 
imagery capabilities will only accelerate the reliance on 
clandestine human sources to crack the hardest targets.
    Yet, the cost of clandestine HUMINT remains a single digit 
percentage of the National Foreign Intelligence Program budget 
and has dropped in real dollar terms. As our actions in the 
authorization for the CIAP demonstrate, this Committee 
questions whether the annual funding requests for clandestine 
HUMINT collection are sufficiently grounded in the long-term 
needs of policymakers and in the operational requisites for 
satisfying those requirements. We have, for example, made 
recommendations for augmenting support for clandestine HUMINT 
collection that we understand will be necessary for collecting 
in the new environments of the post-Cold War. Underlying these 
recommendations, and others, is a concern that funding for the 
clandestine service enable it to begin to develop operational 
capabilities and techniques now that it will need to deploy in 
the future in order to meet the evolving needs of policymakers 
in changing technical and political environments.

Budgeting for the future

    To achieve a less ad hoc and more forward-looking budget 
request for clandestine HUMINT collection, we recommend that 
the DCI appoint a task force to project the needs of 
policymakers for clandestine HUMINT collection over the next 
two decades and report its findings to, inter alia, this 
Committee. Because of the evolving needs of policymakers since 
the end of the Cold War, the advance of information 
technologies, and the explosion of open source information, 
this Committee believes that the all-sourceanalyst is in the 
best position to predict what information gaps may exist in the future 
and which gaps cannot be filled except by clandestine HUMINT 
collection. Accordingly, we recommend the task force be chaired by the 
Chairman of the NIC with the Deputy Director of Intelligence of the CIA 
and the Deputy Director for Intelligence Production of the DIA as Vice-
Chairs.
    With these findings in hand, the DDO, as the National 
HUMINT Collection Manager, should be in the best position to 
predict what capabilities, techniques, and operational profiles 
in the clandestine service will best fulfill the needs 
identified by the all-source analysts. On these bases, the DDO 
should prepare a long-term fiscal program and strategic plan--
perhaps building on the DO's internally prepared strategic plan 
of 1995--in consultation with the DS&T, the Defense HUMINT 
Service, and other operational partners in the Intelligence 
Community. This program and strategic plan, as validated by the 
DCI and shared with the CIA Comptroller and this Committee, 
should then become the program of record for clandestine HUMINT 
within the Intelligence Community and a major premise for the 
annual funding request for clandestine HUMINT collection.

                         technical investments

    The impact of technology--including both commercial and 
government investments--on the IC has had a dramatic effect in 
almost all intelligence activities and operations, and the 
potential for future effects is even greater. The Committee has 
taken a position in previous authorization bills that 
technology, and more appropriately, the application of new 
technologies, are becoming key to the enhancement of all 
intelligence activities, whether in the form of analytic tool 
development or technical collection support to clandestine 
operations. Indeed, the Committee believes the world-wide 
proliferation of technologies presents new opportunities--and 
challenges--for intelligence collection operations. Moreover, 
with the Department of Defense's move toward a ``digitized'' 
force, the IC must become more adept at not only collecting, 
analyzing and reporting tactical information, but must do so 
within a time frame and in a digital form that is usable to the 
military. The use of advanced, and in many cases, commercial, 
technologies is the key to doing this.
    One of the more substantial areas that can benefit from 
modern technologies is overhead collection. Although heavily 
influenced by leading-edge technologies already, those who 
manage current and future overhead collection programs must 
deal with new, again, often commercial, technologies that are 
rapidly developed, made readily available and, in equally rapid 
fashion, are eclipsed and outdated by even more modern 
technologies. Those who remain comfortable with unjustifiably 
long development and procurement times will fail.
    It should also be noted that the current broad base of 
technological development expands the commercial availability 
of many of these evolving technologies. For example, 
technologies used in overhead imagery, once the sole purview of 
the Intelligence and Defense communities of the U.S. and only a 
handful of other nations, are now either verging on, or are 
already being employed by commercial entities worldwide.
    Moreover, there are several areas where such technologies 
are having a definite impact on overhead collection. Technology 
is allowing for the development of smaller and less costly 
satellites, which some believe will match, if not surpass, 
current capabilities. The effective use of these technologies 
will require increased innovation by the intelligence program 
managers to ensure that the nation maintains a technological 
edge over potential foes. At the same time, the availability, 
and indeed the proliferation of such technologies should allow 
for streamlined acquisition and significant cost savings.
    The worldwide development and availability of new 
technologies, combined with the continuous increase in 
knowledge and understanding of U.S. collection systems and 
their capabilities, also will affect how the IC collects 
information and on what ``targets'' remain viable. The 
Committee believes the Community must invest in new and 
sometimes unanticipated collection areas/techniques to remain 
viable.
    In this year's authorization, the Committee is continuing 
its support for more flexible systems that address the future 
challenges technology is forcing on the Community. These 
investments include promoting smaller systems and ensuring that 
larger systems are technologically and financially justifiable. 
This also includes investments in a variety of research and 
development programs, and the Committee hopes the 
Administration will bring forward its own new ideas in the 
future. The Committee acknowledges the successes of past 
overhead collection programs and hopes that the initial steps 
shown in new efforts such as the Future Imagery Architecture 
signal recognition of the need for new and innovative 
approaches to address the challenges of the future.

                   a corporate and flexible community

    For the past several years, the Committee has emphasized 
the need for the IC to be more flexible and function as a 
``corporate'' whole. In today's complex world, the IC must have 
the capability to address many issues simultaneously anywhere 
in the world. With fewer resources and a more diverse set of 
challenges, the IC must be able to work across programmatic and 
`'stovepipe'' boundaries and be flexible enough to ensure that 
resources can be shifted or augmented throughout the IC when 
necessary.
    The Committee is encouraged by progress toward improving 
coordination across IC agencies and across collection and 
analytic disciplines. The DCI's Hard Target working groups have 
proven that a coherent, multidisciplinary, coordinated approach 
to collection is an excellent way to identify and address 
collection gaps. The Committee strongly urges the DCI to 
consider applying such a ``cross-INT'' approach to the process 
of determining collection and production strategies for lower-
tier countries.
    The Committee is less satisfied with the IC's progress in 
addressing ``surge'' issues. The Committee believes there are 
several problems associated with the current method of surging 
resources. First, when resources are shifted to cover a crisis, 
collection and analytic gaps may be created elsewhere. Second, 
it is exceedingly difficult for analysts and some collectors--
particularly HUMINT-- to became instant experts on an area in 
which they have little experience or background. The Committee 
believes that although the IC should maintain global coverage, 
agencies do not need in-house expertise on all topics. 
Intelligence agencies must, however, be able to determine where 
expertise resides within the IC and be able to tap that 
expertise, wherever it exists, when the need arises. In 
addition, as discussed elsewhere in this report, the IC must 
consider creating a civilian intelligence reserve capability to 
augment existing analytic and linguistic expertise.
    The Committee strongly encourages the IC to continue and 
expand efforts to work across traditional bureaucratic 
boundaries and to implement measures to enhance flexibility. 
The Committee believes that such efforts are absolutely 
essential if the IC is to succeed in dealing with increasingly 
complex and diverse threats to U.S. national interests.

               quadrennial defense review of intelligence

    The Committee is concerned on several accounts about the 
handling of intelligence in the 1997 Quadrennial Defense Review 
(QDR). The Chairman of the Joint Chiefs of Staff (CJCS) has 
promulgated a set of new operational concepts known as Joint 
Vision 2010. As the QDR report and the CJCS's congressional 
testimony stress, information superiority or ``dominant 
battlefield awareness'' is the underpinning for the CJCS's 
concepts. The QDR, however, made almost no changes in the 
Department's plans for intelligence, the notable exception 
being the reduction of the planned procurement of Joint 
Surveillance and Target Attack Radar System (JSTARS) aircraft. 
This recommendation prompted the National Defense Panel (NDP) 
to suggest that the Department's investment decisions were not 
fully in keeping with its emphasis on improving intelligence 
and surveillance support. The other intelligence issues that 
the QDR raised were deferred to the normal internal summer 
budget review process.
    The QDR was focused, to a large extent, on finding ways to 
enhance the Department's investment budget. It has been 
reported that DoD intends to increase the amount of procurement 
funding steadily over the future years defense play (FYDP), 
until the level reaches approximately $68 billion in 2003, an 
increase of over $25 billion over the fiscal year 1997 dollar 
levels. Yet, intelligence spending is to remain essentially 
flat. Again, this does not seem to be in synchronization with 
the Chairman's ``dominant battlefield awareness'' vision.
    The Secretary of Defense recently announced the creation of 
a special task force to find ways to reduce the costs of the 
Department's infrastructure and support systems, with an 
emphasis on defense agencies. Since defense agencies make up 
the overwhelming majority of the National Foreign Intelligence 
Program, if the task force generates substantial savings, much 
of these could come from the intelligence budget. Given the 
need to ``rebuild'' our intelligence resources to ensure that 
they can meet future needs, especially within Defense, the 
Committee believes that such a step could well be disastrous in 
terms of our military's abilities to engage in whatever 
situation there might be. The Committee will observe carefully 
the direction of this effort, with an eye toward examining the 
long-term effects on the Community and weighing them against 
the short term gains.
    Finally, the Committee is very much aware that the 
aggregate intelligence budget generally increased at a quicker 
pace than the overall national defense budget during the high-
growth period of the 1980s, and that it declined more modestly 
than the overall defense budget in the years since. 
Intelligence has clearly received some preferential budgetary 
consideration, reflecting an appreciation that intelligence 
plays an increasingly important role in military effectiveness. 
Therefore, it seems, given the CJCS's focus on information 
dominance and the increased role of intelligence in military 
operations, that intelligence programs should continue to be 
specifically and staunchly supported as the Administration 
carries out its renewed and appropriate commitment to increase 
funding for modernization. Therefore, again, the Committee will 
closely watch these budgeting developments.

                  intelligence system interoperability

    The President's fiscal year 1998 budget request included 
significant funding for Command, Control, Communications, 
Computer and Intelligence (C4I) support, system development and 
interoperability, and for establishing a virtual intelligence 
analysis environment. The systems included the following 
programs:
          1. The Joint Intelligence Virtual Architecture 
        (JIVA);
          2. The Joint Deployable Intelligence Support System 
        (JDISS);
          3. The All Source Analysis System (ASAS);
          4. The Joint Maritime Communications Information 
        System (JMCIS);
          5. The Combat Intelligence System (CIS);
          6. The Intelligence Analysis System (IAS);
          7. The JDISS--Special Operations Command Research, 
        Analysis, and Threat Evaluation System (SOCRATES).
    The Committee supports the Department's efforts to provide 
an interoperable intelligence dissemination architecture and a 
``virtual'' analytic environment with which analysts world-wide 
can collaborate. The Committee believes, however, that the 
various projects reflected in the President's request do not 
have the necessary direction and control to require the sharing 
of developments and to ensure that duplication of effort is 
minimized. This is easily determined by a thorough review of 
the various budget request documents.
    Further, the Committee believes that these systems, can be 
broken down into the basic components of (1) a high powered 
workstation with communications; (2) an operating environment 
that, by direction of the Assistant Secretary of Defense (C3I) 
must be Defense Intelligence Infrastructure (DII) Common 
Operating Environment (COE) compliant; and (3) a set of 
applications software. Although a common stated goal of the 
above systems is to provide support to analysts and operators, 
the program managers of these separate systems rarely, if ever, 
work together to achieve the common goals by sharing ideas and 
developments.
    The Committee is convinced there is a need to establish a 
management structure and focal point within the Department that 
would include representation from each of the service and 
agency system program offices. The mission of this organization 
would be to provide oversight, integration and development of 
collaborative applications for the associated C4I systems. The 
function of this organization would not be to dictate specific 
service/agency hardware solutions or unique software 
applications, but to provide for the development of common 
applications, act as a conduit for sharing analytical ideas and 
processes, and to ensure world-wide interoperability via 
standards. The Committee does not support the concept of 
centralizing funding for these efforts, since these systems are 
the responsibilities of the various services and agencies. The 
Committee would however, support the ability of such a 
coordinating organization to be an approval authority for 
expending service/agency funds. The Committee believes both the 
JDISS program office and, particularly, the Joint Reserve 
Intelligence Program have been at the forefront of C41 system 
collaboration, and would be good candidates to be chartered 
with this integration.
    Therefore the Committee is fencing 50 percent of all 
authorized and appropriated fiscal year 1998 funding for the 
above systems, until the Assistant Secretary of Defense (C3I) 
provides to the defense and intelligence authorizing committees 
a plan for creating a management structure and focal point 
within the Department with a charter encompassing the goals 
outlined above.

                          FBIS Reorganization

    The Committee supports the further establishment and 
maintenance of a strong open source capability within the IC. A 
comprehensive open source collection, translation, and analytic 
effort is crucial to the IC's ability to maintain global 
coverage and to understand developments both in ``lower'' and 
``higher'' tier countries. Not only do open sources provide 
insight into open societies, careful scrutiny of ``closed 
society'' media (e.g., Iran, North Korea) can also reveal 
valuable information on trends, new developments, and 
leadership plans and intentions.
    The Foreign Broadcast Information Service (FBIS) re-
engineering strategy calls for using more modern and 
commercially available technologies as FBIS's operational 
linchpin and to transition from traditional large-scale, static 
collection and processing centers toward a more agile and less 
expensive architecture. The Committee applauds CIA's efforts to 
adapt FBIS's infrastructure and operating practices to 
incorporate new technologies and to meet intelligence 
requirements more efficiently. The Committee has several 
concerns, however, about the current FBIS re-engineering plan.
    First, the Committee is concerned that important resource 
allocation decisions are being made without fully taking into 
consideration ``customer'' requirements; there currently is no 
formal, direct open source requirements system that can be 
tapped to help translate requirements into rational resource 
allocation decisions. In addition, it is unclear to many FBIS 
customers what regions of the world will be affected by 
significant decreases in collection, translation an analytical 
activities. The Committee believes that open source customers 
must be kept fully informed of what changes in services they 
will see as a result of the re-engineering. The Committee also 
believes that open source collection should be driven by the 
direct input of major customers, particularly the all-source 
analysts who best understand where their information gaps lie.
    It should be noted that the Committee will closely 
scrutinize any fiscal year 1997 FBIS reprogramming request to 
determine whether the request fits into the overall 
reengineering strategy. The Committee requests that it be kept 
fully and currently informed of the plans and implementation of 
the re-engineering effort. In addition, the Committee requests 
that the DCI submit a report on the FBIS re-engineering plan to 
the intelligence oversight Committees by 1 September 1997. The 
report should include the following information:
          What is the timeline for implementing the re-
        engineering plan?
          What is the mechanism for reviewing the progress and 
        effects of the re-engineering plan?
          For what countries/regions/issues will FBIS reduce 
        its coverage (collection, translation, analysis)?
          What countries/regions/issues will FBIS no longer 
        cover?
          How will the ``new way'' of doing business be managed 
        (i.e., telecommuting employees, regional hubs, etc.)?
          What disruptions in service are anticipated? and
          How will FBIS work with ``customers'' to ensure their 
        requirements are being met?

                      dci nonproliferation center

    Collecting against, analyzing, preventing and countering 
the proliferation of weapons of mass destruction present some 
of the most difficult challenges facing the IC today. 
Nonproliferation-related intelligence programs and personnel 
are numerous and widely dispersed throughout the IC and the 
Defense Department. When the DCI's Nonproliferation Center 
(NPC) was established in 1991, one of its core missions was to 
coordinate the disparate IC nonproliferation activities, 
improve communication between programs and eliminate 
duplication of effort. As coordinator of IC assessments 
onproliferation topics, but not an analytic group per se, the NPC was 
to serve as a one-stop nonproliferation information shop for policy 
makers.
    After its formation, the NPC took on a number of additional 
responsibilities. It developed strategic plans to help guide 
the U.S. Government's response to the proliferation problem and 
provided support to CIA's Operations Directorate (DO), as well 
as other collectors and law enforcement agencies. The NPC also 
worked on collection deck development and produced a ``gaps'' 
study that identified deficiencies in proliferation-related 
collection activities. The NPC was also chartered to review the 
IC's performance on proliferation activities and to make 
relevant budget recommendations. In addition, the NPC Director 
was designated the issue manager for nonproliferation 
activities. With these and other responsibilities, the NPC has 
made numerous contributions to the IC's nonproliferation 
effort.
    The NPC has attempted to bring a Community focus to the 
proliferation issue, but has been thwarted in these efforts by 
internal (CIA) and external turf battles. Because of this, the 
NPC has not been able to position itself as the focal point for 
IC-wide nonproliferation activities. Nonetheless, the NPC has 
several successes of which to be proud. For example, the NPC 
review of the IC's proliferation budget gave this Committee 
insight into how proliferation resources were obligated within 
the Community. This budget review function should be continued, 
fully endorsed by the DCI, and done much earlier in the budget 
process to make it more useful to this Committee in its annual 
budget review process. In addition, the NPC has promoted or 
sponsored several new biological and chemical weapons research 
and development efforts that are successful because of the 
concentrated focus NPC brings to these issues.
    In the past, the Committee has noted that there were 
serious questions regarding the NPC that pertained less toward 
its contributions--which have been significant--than to its 
future form and function. In recent years, the NPC has been 
reorganized. For example, the operational support section was 
relocated to the DO, within the newly created 
Counterproliferation Division, that brought centralized 
management to the DO's counterproliferation activities. In 
addition, NPC authority, personnel and budgets have been 
affected by downsizing. Moreover, the NPC Director is no longer 
the nonproliferation issue manager. Some question the 
appropriateness of the reductions, reorganizations and changes; 
others maintain that the NPC still has too many resources 
compared to other intelligence programs.
    In 1992, the Committee conducted a detailed study of NFIP 
proliferation programs, with a specific focus on the new NPC. 
This year, the Committee plans to conduct a follow-up study on 
this topic. The Committee assessment will involve a thorough, 
top-down review of the NPC organization, mission and 
activities. The Committee will: review the NPC's efficacy as 
coordinator of nonproliferation programs; review NPC funding 
levels and staffing assignments; consider where the NPC should 
be located within the IC; examine NPC's relationship with the 
CIA's Directorates of Intelligence (DI) and Operations (DO); 
and examine the NPC's role in the collection and issue manager 
processes. Likewise, the Committee will review other 
proliferation-related programs throughout the IC, including 
within the DI and DO, with an eye toward recommending a logical 
construct to the Intelligence Community's efforts on the 
proliferation issue.
    The Committee believes that additional support for the NPC 
and its objectives is warranted, and remains concerned about 
future commitment to the NPC. The Acting DCI's (ADCI's) 
suggestion that better coordination of IC and Defense 
proliferation efforts might be obtained through National 
Security Council (NSC) control is highly debatable. Regardless, 
the Committee believes that NSC control over this issue may not 
adequately address the management of critical interagency 
nonproliferation requirements that must be satisfied. Although 
the Committee firmly believes that the NPC's roles and missions 
need to be evaluated further, it continues to see utility in 
NPC's existence and its efforts.

                            declassification

    The Committee has authorized additional resources in the 
fiscal year 1998 budget for CIA classification management, 
including declassification activities in support of Executive 
Order 12958. It should be noted, however, that the Committee is 
highly skeptical that the true costs of declassification have 
been determined accurately. It is possible that additional 
resources for declassification may be required to ensure that 
it is accomplished without compromise of intelligence sources 
and methods. In addition, the Committee is very concerned about 
the criteria and techniques used in the process of 
declassifying intelligence documents. Over the next year, the 
Committee will study carefully a range of declassification and 
collateral intelligence sharing activities across the NFIP to 
determine what resources are needed for these efforts and 
whether current declassification and intelligence sharing 
activities adequately protect sources and methods.
    Specifically, the Committee will examine the 
declassification programs of various intelligence agencies, 
including issues relating to personnel qualifications, 
contractor support and training in declassification 
methodologies. As part of this review, the Committee will 
examine the implementation of bulk declassification 
techniques--that may be used in lieu of page-by-page review--
and consider the applicability of both methods for 
declassifying documents with differing classification levels. 
In addition, the Committee will review specific 
declassification case histories to assess the performance of 
the ``risk management'' approach to declassification. 
Furthermore, the review will examine the process and progress 
of Community-wide efforts to declassify archival records. Any 
lessons learned from problems and successes related to current 
declassification activities should be used to redirect present 
day information handling and storage policies and make future 
declassification efforts less problematic.
    The Committee also will examine the Community's processes 
for sharing intelligence with military consumers and allied 
partners. The Committee also believesthat in the area of 
intelligence information management, there is a need for improved 
security controls and audit capabilities. Likewise, the Committee will 
examine issues relating to risk management, personnel training and 
qualifications, accountability, and record keeping.
    Finally, the Committee will focus in detail on the GULFLINK 
case. The recent GULFLINK damage assessment report concluded 
that the declassification process associated with Gulf War 
intelligence documents resulted in serious damage to 
intelligence sources and methods. Those working on 
declassifying Gulf War intelligence documents were directed to 
declassify an enormous amount of documents in a relatively 
short amount of time. Furthermore, the Department of Defense 
directed those declassifying these documents to err on the side 
of declassification and post documents on the GULFLINK Internet 
site unless instructed otherwise on a case-by-case basis, by 
officials at the highest levels of the Department of Defense. 
Clearly, the reported damage done to intelligence sources and 
methods in the case of GULFLINK are directly due to these 
declassification criteria. The Committee will closely examine 
the declassification processes and requirements used in the 
GULFLINK project to ensure that such mistakes are not made in 
future declassification projects.

           review of national drug intelligence architecture

    Given the magnitude of the illicit drug problem and the 
threat that it poses to the national security of the United 
States, many believe that the IC should become even more 
actively involved in the effort to ``combat illicit'' 
international drug trafficking. Before any changes are 
undertaken in this area, however, there should be an assessment 
of structure and performance of the existing drug intelligence 
collection and analysis activities. Moreover, since the 
establishment of the Office of National Drug Control Policy in 
1988 and the creation of the CIA's Counternarcotics Center in 
1989, there has never been a comprehensive effort by the 
executive branch to evaluate the effectiveness of the national 
security and law enforcement drug intelligence systems--the 
drug intelligence architecture.
    The Committee recommends that the Office of National Drug 
Control Policy, in coordination with the DCI's Crime and 
Narcotics Center (CNC) and the Community Management Staff, 
undertake a study of current drug intelligence programs, with 
the view toward developing an architecture for a national drug 
intelligence system to provide the best possible support to all 
levels of the international counternarcotics effort: policy 
development, strategic and operational planning, targeting, 
tactical execution, and information dissemination. The 
recommended architecture would include suggestions for clear 
and specific mission statements for each drug-control entity 
(including principal support roles), an articulation of the 
relationships among the centers and activities and an ADP/
communications plan that will facilitate processing of 
appropriate drug intelligence information at all levels. The 
report, which would be furnished to the President and the two 
intelligence oversight Committees, is due on March 31, 1998.

                  Joint Military Intelligence Program

National Imagery and Mapping Agency civilian personnel, -$15.0 million

    The budget request contained $680.3 million for in 
Operations and Maintenance, Defense-wide, running the National 
Imagery and Mapping Agency's (NIMA) mapping and geospatial 
information operations, including funding for 6,389 civilian 
personnel positions.
    The Director of NIMA has stated that NIMA's Digital 
Production System (DPS) will no longer be operational by the 
year 2000, and that NIMA's primary role in mapping will evolve 
to that of maintaining information databases instead of 
producing imagery and other intelligence products. If realized, 
this approach should result in a greater decline in required 
personnel over the current mandatory downsizing reductions, 
since the majority of NIMA personnel currently support the 
development of intelligence products. The Committee supports 
the effort to move away from DPS. The Committee believes, 
however, that NIMA has failed to properly take into account the 
effect this plan will have on personnel. Therefore, the 
Committee recommends a decrease of $15.0 million in civilian 
personnel funds to accelerate the downsizing of NIMA's 
personnel consistent with the DPS phase out.
    Further, personnel costs account for more than half of 
NIMA's operations and maintenance request and consequently, 
more than half of its budget. The Committee believes that NIMA 
must drastically reduce its workforce and become more efficient 
if it is to be able to fulfill its mission in the information 
age. Therefore, the Committee directs the Director of NIMA to 
submit a personnel plan to the Congressional defense and 
intelligence committees. This plan should include an assessment 
of the types of skills required in the future versus what NIMA 
now possesses, a breakdown per year of the types of personnel 
slots that shows how NIMA's demographics will change as NIMA 
moves to its required skill mix, an assessment of whether 
cartographer personnel slots can be transformed into imagery 
analyst slots and the potential for retaining cartographers 
into imagery analysts, and an assessment of the challenges and 
obstacles facing the agency in achieving the necessary 
personnel reductions, including suggested remedies for such 
obstacles. An interim response is requested by August 31, 1997 
with a final report due by December 1, 1997.

U.S. imagery and geospatial system production, -$40.0 million

    The budget request contained $541.8 million for continued 
operations of National Imagery and Mapping Agency's (NIMA) 
Geospatial System Production and Customer support.
    The Director of NIMA has officially stated that, because of 
the large operations and maintenance cost of older production 
equipment, the Agency will completely phase out the legacy 
Digital Production System (DPS) by the year 2000. Although the 
overall NIMA operations and maintenance budget decreases 
slightly in fiscal year 1998, very little of this decrease is 
due to a reduction in legacy system funding. The committee 
notes that migration away from DPS began in fiscal year 1997, 
and a more significant decline in O&M should have resulted in 
fiscal year 1998.
    Therefore, the Committee recommends an authorization of 
$501.4 million for this activity, a decrease of $40.0 million.

Mission support, -$10.0 million

    The budget request included $147.6 million for National 
Imagery and Mapping Agency (NIMA) facilities management.
    As NIMA consolidates facilities, the Committee expects to 
see a marked decline in mission support costs. Such a decline 
is not apparent in the budget request documentation. Therefore, 
the Committee recommends a decrease of $10.0 million. Further, 
the Committee requests that the Director of NIMA submit a 
facilities plan that lays out locations and functions of all 
current facilities, and describes NIMA's strategy to 
consolidate and reduce its facility holdings. The Committee 
requests this plan be submitted to the defense and intelligence 
committees no later than August 31, 1997.

Synthetic aperture radar for mapping, +$10.0 million

    The budget request included $109.4 million in program 
element 0305102BQ, line 130, partially to develop the 
capability to use synthetic aperture radar (SAR) data for 
providing geospatial information for customers.
    The Committee believes that the National Imagery and 
Mapping Agency (NIMA) specifically, and the intelligence 
community generally, has focused insufficient attention on the 
use of SAR data for geospatial product development. The 
Committee believes this technology can provide critical data, 
in all weather conditions, and that it should be exploited more 
extensively than it has been in the past.
    Therefore, the Committee recommends an additional $10.0 
million in this program element to improve current, limited 
NIMA capabilities to use SAR data to provide geospatial 
information.

Cancellation of interferometric synthetic aperture radar, -$23.2 
        million

    The budget request included $23.2 million to continue 
development of the Interferometric Synthetic Aperture Radar 
(IFSAR) mission to collect Digital Terrain Elevation Data 
(DTED) level 2 information. The IFSAR mission is scheduled to 
fly on the Space Shuttle in the 2000 timeframe. The IFSAR 
mission itself will cost $163.3 million, with $98.4 million 
remaining to be spent through fiscal year 2000.
    The Committee continues to believe that there are other, 
more cost-effective alternatives to the IFSAR mission for 
collecting DTED level 2 data. One such alternative appears to 
be an algorithm developed by commercial industry that allows 
DTED level 2 data to be derived from the European Resource 
Satellites (ERS-1 and ERS-2). The Canadian RADARSAT also 
appears to be able to satisfy this requirement. Additionally, 
new processes for aircraft with SAR capabilities hold great 
potential. Therefore, the committee recommends cancellation of 
the IFSAR mission and corresponding reduction of $23.2 million 
in the National Imagery and Mapping Agency budget.

U.S. imagery and geospatial system improvements, +$15 million

    The budget request included $109.4 million in Research and 
Development, Defense-wide, for National Imagery and Mapping 
Agency's (NIMA) development, procurement and integration of an 
end-to-end imagery production capability for geospatial 
information.
    The Director of NIMA has officially embraced the Defense 
Science Board's (DSB) direction to move NIMA from production of 
products to the maintenance of geospatial information, a move 
the committee strongly supports. One of the DSB's 
recommendation included trading off production of lower 
priority products and less critical functions in order to fund 
NIMA's more pressing technical needs, thereby allowing it to 
move quickly to its future technical capabilities. Based on 
NIMA's request, the committee does not believe NIMA's 
technology investment is sufficient to efficiently and 
effectively move to this new leading-edge technological 
capability.
    Therefore, the Committee recommends a total of $124.4 
million in this account for developing and fielding the modern 
imagery and mapping technologies. The Committee believes this 
increase of $150.0 million will provide needed capital that 
will effectively reduce NIMA operating costs in the near-term.

Predator unmanned aerial vehicle, transfer $15 million

    The budget request included $15.0 million in program 
element 0305205D, line 138, for modifications to the Predator 
unmanned aerial vehicle (UAV).
    The Committee is concerned by the overly bureaucratic 
management and acquisition structure the Department of Defense 
has put in place for the Predator. The Committee believes the 
DoD's efforts to maximize UAV ``jointness,'' by directing all 
tactical UAV development and procurement through the Navy-led 
UAV Joint Program Office (JPO), has had the unintended 
consequences of forcing funding transfers between services, 
slowing Predator procurement and minimizing contracting 
flexibility. It appears that, even though Predator is owned and 
operated by a single service, the basic management concept of 
unity of control has been violated.
    The Committee believes the management and control of all 
aspects of Predator funding, contracting, procurement and 
operation need to be with the Air Force. Therefore, section 603 
directs all Predator functions currently maintained within the 
UAV JPO be transferred to the Air Force. It also directs that 
all Predator funding within the Defense-wide program element 
0305205D be transferred to the Air Force program element 
0305154F.
    Further, the Committee is aware of the Air Force's 
``Lightning bolt'' acquisition initiatives in general, and the 
Big Safari streamlined acquisition program, specifically. The 
Committee has been keenly interested in the rapid, flexible, 
and innovative acquisition approaches that hallmark Big Safari, 
and it strongly urges the Assistant Secretary of the Air Force 
(Acquisition) to consider using the Big Safari streamlined 
acquisition and management program for Predator.
    Finally, the Committee is aware of a past demonstration 
wherein the Predator UAV was launched via the land-based ground 
control station and handed off to a submarine-based mini-
control station. This demonstration unquestionably proved the 
flexibility of, and the potential need to have, a down-sized 
portable ground station that can be forward deployed. Such a 
ground station could be used to take direct control of a 
Predator UAV for those missions (special operations, for 
example) where an Air Force forward control element that has 
been physically deployed with a Navy (or other Service/Agency) 
element is the best possible mode of operation. The Committee 
firmly believes that, as the Air Force brings the Predator 
forward into the operational realm, such unconventional 
missions will dictate the need for a deployable control 
capability. Therefore, the Committee strongly urges the Air 
Force to consider such a capability when planning for future 
multi-service support with Predator.

Tactical unmanned aerial vehicle, -$57.5 million

    The budget request contained $122.0 million for Tactical 
Unmanned Aerial Vehicles (TUAV) in program element 0305204D, 
including $87.5 million for the Outrider Advanced Concept 
Technology Demonstration (ACTD) program and $34.5 million for 
the Tactical Control Station.
    The Committee understands that the purpose of the Outrider 
ACTD is to assemble and demonstrate a significant new tactical 
reconnaissance capability that is based on mature technology. 
The Defense Airborne Reconnaissance Office (DARO) established 
the Joint Tactical Unmanned Aerial Vehicle (JTUAV) program from 
two previously unsuccessful programs, the close range and the 
maneuver UAVs. In May 1996, the DARO conducted a competitive 
selection that evaluated nine candidate air vehicles, chose the 
Hellfox TUAV and awarded a twenty-four month contract for the 
Outrider JTUAV. The ``best value'' selection was based on the 
Hellfox's superior aircraft design and capabilities and the 
winning contractor's presumed ability to successfully develop 
and deliver, within the 24 months, six ACTD Outrider UAV 
systems, each consisting of four air vehicles, a ground control 
station and associated equipment. The Committee isinformed that 
Outrider ACTD is well behind schedule and experiencing serious 
performance problems. In fact, its first flight, scheduled for November 
1996, did not occur until March 1997.
    The Committee supports efforts to streamline the 
acquisition process and enable demonstrated capabilities to 
transition quickly to production and operation. However, the 
Committee is extremely concerned that the Outrider ACTD appears 
to have circumvented important acquisition criteria and 
milestones, including the need for the program to address a 
validated military requirement. The Joint Chiefs of Staff Joint 
Requirements Oversight Council (JROC) has failed to formally 
validate a joint operational requirement for the JTUAV. 
Therefore, the JTUAV ACTD appears to contradict the 
Department's own guidance that ACTDs must address validated 
user requirements clearly enough to be able to firmly establish 
operational utility and system integrity.
    The Committee is fully aware of the technical problems that 
have plagued development of the Outrider UAV. The ACTD is 
experiencing serious shortcomings that indicate that the joint 
Outrider program is not using mature technologies, despite 
being based on the successful Hellfox UAV technologies 
demonstrated in the competition phase. The Committee 
understands that the program is under special review by the 
Under Secretary of Defense for Acquisition and Technology, and 
is being considered for cancellation by the Department. This, 
coupled with the Outrider's technical problems and recent 
observations/statements by the Director, DARO, that the 
Department was ``going to cut its losses'' on the program, 
appear to lend credibility to this notion.
    The Committee therefore recommends an authorization of 
$64.5 million for TUAV, with no funding authorized for 
continuation of the Outrider ACTD. The Committee recommends 
that of the funds authorized, $10.0 million be provided to 
support a vertical takeoff and landing UAV competition that was 
recently initiated by the DARO. The Committee recommends $11.5 
million be made available to provide a dedicated Predator UAV 
system and associated equipment, including at least two 
aircraft equipped with synthetic aperture radar and Ku-band 
link, for operational experimentation and testing of the common 
UAV Tactical Control System (TCS). To ensure a viable 
transition from the Outrider ACTD, elsewhere in the report the 
Committee recommends an additional $10.0 million in operations 
and maintenance, Army, for operating currently owned Hunter UAV 
systems. The Committee does not authorize additional or 
attrition Hunter air vehicle purchases, nor does it authorize 
technical improvements to the air vehicle or its electronic 
systems. The Committee notes that this is a Congressional 
interest item and directs that the Army receive prior defense 
and intelligence Committee approval before redistributing these 
funds for any purpose other than that authorized above.
    Finally, the Committee believes there are a number of 
existing tactical UAVs, including the Hellfox, the Prowler, and 
others, that could satisfy the Army TUAV requirements. 
Therefore, the Committee recommends $20.0 million in aircraft 
procurement, Army, for purchasing an ``off-the shelf'' tactical 
UAV. The Committeerequires the Army to provide a purchase plan 
before any of these funds can be obligated or expended.

Airborne reconnaissance advanced development, -$3.0 million

    The budget request for Airborne Reconnaissance Advanced 
Development in program element 0305206D included $4.5 million 
for continuing refinement of the Joint Airborne Reconnaissance 
Architecture (JASA) standards. Included in this amount was 
funding for verifying compliance and interoperability of new 
upgrades and developments.
    The Committee recommends a total of $1.5 million for this 
effort, a decrease of $3.0 million.

Airborne reconnaissance advanced development, -$3.0 million

    The budget request for Airborne Reconnaissance Advanced 
Development in program element 0305206D included $3.0 million 
for initiating development of a heavy fuel engine for the 
tactical UAV.
    Department of Defense budget documentation shows 
justification for developing an HFE both within this program 
element and within program element 03035204D. Additionally, the 
Committee is aware that previous authorizations and 
appropriations for this effort have not been fully obligated or 
expended. Therefore, the Committee recommends a decrease in 
program element 0305206D of $3.0 million.

Senior year electro-optical system, +$5.0 million

    The budget request included $136.7 million in aircraft 
procurement, Air Force, line 73 for continued procurement of 
spares and repair parts for the U-2 aircraft and sensors. The 
Committee understands the request does not adequately fund 
upgrades and spare parts for the Senior Year Electro-Optic 
System (SYERS).
    U-2 SYERS imagery satisfies a large percentage of theater 
commanders' imagery requirements, and the Committee is 
committed to ensuring the availability of this aircraft and the 
viability of its sensors. Further, Congress initiated and 
sustained for several years an upgrade to the SYERS imaging 
sensor that, among other things, would allow the sensor to be 
carried in the `Q-bay' of the aircraft such that a radar sensor 
and the SYERS sensor could be flown simultaneously. In wartime, 
this dual capability could free up an entire orbit's worth of 
U-2 aircraft. This appeared to Congress to be well worth the 
small investment in the SYERS system.
    The Committee has now learned that the aircraft fuselage 
may have to be modified in order to carry SYERS in the Q-bay. 
Specifically, a ``canoe'' would have to be added to allow the 
camera to image out beyond about 45 degrees. The Committee is 
more than a little irritated to learn of this constraint at 
this late juncture. Also, it has beensuggested to the Committee 
that the Air Force is, at a minimum, reluctant to undertake any 
modification to the U-2 airframe, no matter how small, aside from 
issues relating to safety or flight, in anticipation of the replacement 
of the U-2 by platforms such as Global Hawk. The Committee does not 
believe the U-2 will be fully replaced or retired for many years and is 
not willing to forego improvements to this workhorse aircraft.
    Based on the above, the Committee recommends an 
authorization of $141.7 million, an increase of $5.0 million 
for the upgrade and procurement of additional spares for the 
SYERS.
    Further, the Committee directs the Secretary of the Air 
Force to provide a report to the congressional defense and 
intelligence committees by March 15, 1998, on the need and the 
costs to design and procure the number of ``canoes'' necessary 
to allow SYERS and ASARS to be flown simultaneously. The report 
shall include a statement of DoD policy regarding modifications 
of the U-2.

Airborne information transmission, +$3.0 million

    The budget request included $10.8 million in program 
element 0305206D to continue testing and evaluation of the 
Airborne Information Transmission (ABIT) system.
    The Committee believes that all major airborne 
reconnaissance systems should have the ability to communicate 
and cooperatively operate sensor systems using widebandwidth, 
high data rate communications. Such a capability would allow 
real-time database sharing, cooperative target location, a long 
haul ``reach back'' capability to national processing 
facilities, and use/control of collection systems from platform 
to platform (i.e., control of UAVs from manned reconnaissance 
aircraft, remote operation of collection systems, etc.). To 
that end, the Committee is pleased with the Department's Common 
Data Link (CDL) and ABIT efforts.
    Accordingly, the Committee requests the Department to 
conduct a study on the costs, requirements, and benefits of 
adding wide-band data links (both for air-to-air and air-to-
ground applications, and point-to-point and broadcast modes) on 
all major airborne reconnaissance/surveillance aircraft. 
Specifically, this study should examine the benefits of:
          providing a capability to route signals that cannot 
        be processed tactically directly from the collection 
        platforms to national processing sites in the CONUS:
          allowing split basing of assets;
          maximizing intelligence community collection and 
        analysis potential by providing a capability to route 
        excess raw data collection to other processing/analysis 
        platforms or ground sites;
          providing the ability to complete high speed data 
        base transfers from aircraft departing station to 
        aircraft coming on to station;
          allowing precision target location via cooperation 
        direction finding and correlation of multiple 
        intelligence disciplines; and
          allowing cooperative remote system operation;
    The study should also provide the costs for developing and 
installing this capability on the various aircraft. The 
Committee requests the results of this study be provided to the 
defense and intelligence authorization committees by March 
1998.
    The Committee notes, and applauds, the ongoing USAF efforts 
to integrate CDL/ABIT capabilities on the RC-135 reconnaissance 
aircraft, and believes this effort should be basis for all 
future manned reconnaissance interoperability efforts, 
including an ABIT capability on the Joint Surveillance Target 
Attack Radar System (JSTARS) aircraft. The Committee recommends 
an increase of $3.0 million for the USAF to lead this effort.
    Further, specifically with respect to JSTARS program, 
elsewhere in this report the Committee raised the issue of 
whether the Navy requires unprocessed data from JSTARS and 
other platforms that collect moving target indicator (MTI) and 
synthetic aperture radar (SAR), in addition to processed tracks 
transmitted via the narrow band Link 16. If DoD decides that 
there is such a requirement, and the Committee considers that 
to be likely, the Navy and DoD generally will need to decide 
whether the existing JSTARS wide bank link, the Secure Common 
Data Link (SCDL), is a practical choice for the Navy and other 
potential users. First, all other MTI and SAR platforms (the U-
2, the endurance UAVs, and the Army ARL) are or likely will be 
equipped with a wide band common data link (CDL), and the CDL 
is already the Navy's standard and will be widely fielded on 
large ships. It may not be feasible or practical to outfit 
these ships with the SCDL, which is unique to JSTARS. It might 
make sense to add CDL to JSTARS, or even to replace SCDL with 
CDL.
    The Committee appreciates fully that SCDL provides 
excellent anti-jam capabilities and has a very large ground 
footprint, which is essential to support widespread Army ground 
stations. However, DoD is developing a CDL broadcast 
capability, which might be sufficient for the Army in light of 
the changed threat situation and the increased emphasis on 
commonality and interoperability. The Committee believes that 
the Army needs to consider also that shifting from SCDL to CDL 
would enable the Army common ground stations to receive MTI and 
SAR data from the U-2, the Army's own ARL platform (assuming it 
is equipped with a downlink at all), and any future UAVs.
    In addition, as discussed elsewhere in this report, in 
connection with the proposed Joint Mobile Target Engagement 
ACTD, centralized processing of MTI data from all possible 
sources (U-2s, Airborne Reconnaissance Low, UAVs. etc.), and 
merging thecorrelated results with target identification 
information, might be extremely important to battlefield awareness and 
targeting. These processes might be greatly facilitated by common use 
of CDL. Adding CDL to JSTARS would enable any appropriately equipped 
ground site to perform the MTI correlation and target identification 
function, including Navy ships. A CDL capability on JSTARS that could 
operate in an air-to-air mode as well would enable JSTARS aircraft to 
transfer MTI track histories and other databases as they are relieved 
from station, and conceivably also to act as a central MTI processing 
and correlation site--for situations where there is no ground presence 
established.
    The Committee directs the USD(A&T) to submit the report 
requested above to the congressional intelligence and defense 
committees by January 15, 1998. The Committee believes that the 
USD(A&T) study effort should be coordinated with all the 
services, the JROC, DARPA, and the JMTE ACTD program office.

Endurance unmanned aerial vehicles, +$3.0 million

    The budget request contained $282.1 million for endurance 
unmanned aerial vehicles (EUAV). The research and development 
request for high altitude endurance (HAE) UAVs contained $96.0 
million for Global Hawk and $54.6 million for DarkStar, while 
$116.5 million was requested for procuring the medium altitude 
endurance (MAE) UAV Predator.
    The Committee notes that, in 1995, the Department initiated 
two Advanced Concept Technology Demonstrations (ACTD) to 
develop and demonstrate HAE UAVs at a cost estimate of 
approximately $900 million. The purpose of these ACTDs was to 
permit the rapid and affordable evaluation of advanced 
capabilities resulting in air vehicles that could provide 
military utility. The HAE ACTDs also included the specific 
requirement that the air vehicles have a unit fly away cost of 
$10.0 million in fiscal year 1994 dollars.
    The Committee supports the need for determining the 
military utility of the two long-dwell HAE UAVs for broad area 
coverage. The Committee notes that OSD has unilaterally 
determined to, at this time, scale back the number of air 
vehicles, the number of ground stations and the length of the 
user demonstration period. The Committee understands this is 
due to cost growth and the desire to fly successfully and to 
prove design configurations before producing more flight 
vehicles. The cost growth, due to developmental problems, is 
troublesome and lends support to the DoD Inspector General 
conclusion that the technologies were not, in fact, fully 
mature and ready for demonstration. While the ACTD model may 
not have been the best approach for these programs, the 
Committee supports the development and evaluation of these 
systems. However, the Committee does not see the need to rush 
these programs to the point where their success is imperiled.
    The Committee strongly recommends that the Department 
complete the ACTDs, including the complete user evaluation with 
the Air Force's Air Combat Command over the period first 
proposed, before authorizing a follow-on HAE UAV acquisition 
program.
    Due to the Department's reduction in Global Hawk air 
vehicles from eight to five, the Committee believes there 
should be a corresponding reduction in funds required for long 
lead item purchases, and recommends a $22.0 million reduction 
in this line.
    The MAE UAV, the Predator, was established as an ACTD in 
response to an urgent requirement identified by the Joint 
Chiefs of Staff (JCS) in 1993. The Committee notes that while 
there have been some operational issues with this system, it is 
the first ACTD to make the transition to a production program. 
The success of the Predator in a number of continental United 
States exercises and two operational deployments to Bosnia has 
prompted the Joint Chiefs of Staff to seek additional funding 
for Predator, including a number of pre-planned product 
improvement (P3I) upgrades to be included with production 
systems. The Committee has learned, however, that as result of 
this vehicle's success, the amount of spare parts and attrition 
vehicles available appears to be insufficient. Therefore, the 
Committee recommends an increase of $25.0 million to purchase 
spare parts and attrition air vehicles for the operators.

High altitude endurance unmanned aerial vehicle, common ground segment, 
        -$9.0 million

    The budget request included $51.1 million in program 
element 0305205D, line 138, for the high altitude endurance 
(HAE) unmanned aerial vehicle (UAV) common ground segment 
(CGS). Of this, $9.0 million was for testing purposes.
    The Committee understands that $10.0 million of fiscal year 
1997 funds were authorized and appropriated for this same 
testing. The Committee also understands that such testing was 
not completed due to the delay in both HAE advanced concept 
technologies demonstrations.
    Therefore, the Committee recommends an authorization of 
$42.1 million, a reduction of $9.0 million.

Defense airborne reconnaissance office, -$14.0 million

    The budget request included $21.5 million in program 
element 0305209D, line 142, and 31 billets for operation of the 
Defense Airborne Reconnaissance Office (DARO). Section 608 
directs abolishment of this defense organization office 
chartered under the Under Secretary of Defense (Acquisition and 
Technology).
    The Defense Authorization Act of 1994 directed the 
development of an organization to oversee and coordinate the 
activities of the military Services with respect to the 
development of airborne reconnaissance systems. The intent of 
this law was to ensure the most effective expenditure of 
defense funds within this mission area by forcing the services 
to work closely together in the development and upgrades of 
airborne reconnaissance systems.
    The Committee notes the positive influence the Defense 
Airborne Reconnaissance Program (DARP) has had on the various 
service and agency airborne reconnaissance programs. However, 
the Committee has not been comfortable with the management 
structure the Department of Defense put in place to manage the 
DARP, nor with the extent to which the DARO has assumed 
authority over service reconnaissance system acquisition 
equities.
    The Committee totally agrees with the founding concept of 
the DARP, including the need to have a coordinating entity for 
ensuring the service acquisition authorities have insight into 
each others developments in order to maximize sharing of 
capabilities and to reduce redundancies. The Committee also 
supports the need to coordinate these service efforts from a 
programmatic perspective. However, the Committee believes such 
a coordinating function is more appropriately accomplished by 
an intelligence organization vice an acquisition organization. 
Therefore, section 608 also transfers the responsibilities of 
the DARP to the Director, Defense Intelligence Agency, under 
his authorities as the Director of Military Intelligence (DMI). 
The Committee authorizes $7.8 million, and 15 billets for DIA, 
for this purpose. Elsewhere in this report, the remaining 
personnel billets are redistributed to other JMIP programs.
    The Committee's intent is to protect service acquisition 
equities while providing an intelligence community-based, and 
intelligence mission-focused, coordination authority. The 
Committee believes transferring the DARP management to DIA, 
coupled with the technical and operational standards 
authorities vested in the National Security Agency, the 
National Imagery and Mapping Agency, and the Central MASINT 
Office, will ensure the proper levels of authority over 
investments and ensure system interoperability. Further, the 
Committee expects the DIA responsibilities to be limited to 
establishing joint reconnaissance policies and standards, 
coordinating service efforts, including DARP budget 
developments, and ensuring theater CinC and joint service 
reconnaissance needs are addressed through interoperable 
systems. Therefore, the Committee believes the services should 
retain all funding and execution responsibilities over their 
reconnaissance platforms, subject to a ``seal of approval'' 
from the DMI. The Committee does not see the need for the DMI 
to execute research and development programs.
    To accomplish the above, the Committee directs the 
Director, DIA, to provide a transition plan, with a draft DMI 
DARP charter, to the defense and intelligence committees before 
conference on the fiscal year 1998 Defense Authorization bill.

RC-135 Rivet Joint reengining, +$52.0 million

    The budget request did not include funding in aircraft 
procurement, Air Force, for reengining the RC-135 
reconnaissance fleet.
    The Committee remains convinced the RC-135 aircraft will 
continue to be the workhorse of manned special reconnaissance 
well beyond the year 2020. In previous years, the Committee has 
fully supported and added funding for this important re-
engining effort to ensure the long term viability of this 
fleet. This support has been unwavering, in part, due to Air 
Force assurances that, once begun, the Department would fully 
fund this re-engining effort. This promise remains unfulfilled. 
The Committee believes the Air Force and DoD handling of this 
program has been woefully negligent.
    The Committee is swayed by the General Accounting Office's 
report on re-engining that states the Department would realize 
a cost savings over the expected life of these aircraft in 
excess of $1.5 billion over the cost of maintaining the current 
TF-33 engines. The Committee further is impressed by the 
mission enhancements made possible by these new engines.
    Therefore, the Committee recommends an authorization of $52 
million for re-engining two RC-135 with the CFM-56 engines. 
Further, the Committee expects the Department to request funds 
for this program within the Air Force's Defense Airborne 
Reconnaissance Program in future years.

Joint mobile target engagement, advanced concept technology 
        demonstration, +$10.0 million

    The budget request included no funding in P.E. 305206D for 
the reconnaissance portion of the proposed joint mobile target 
engagement (JMTE) advance concept technology demonstration 
(ACTD). The Committee strongly supports the goals of this ACTD 
to correlate moving target indicator (MTI) data streams from 
varied systems such as the Joint Surveillance and Targeting 
System (JSTARS), the U-2, the Airborne Reconnaissance Low 
(ARL), unmanned aerial vehicles, and others. Also, the ACTD 
would focus on the concept of automatically tracking targets of 
interest based on disparate intelligence inputs.
    The benefits from correlating muliple moving target 
indicator (MTI) radar data streams appear to be enormous, 
particularly when coupled to new auto-tracking algorithms and 
when the resulting track files are stored and available for 
replay. This ACTD will determine the feasibility of combining 
current and historical target identification information, such 
as imagery taken hours before the exploited product becomes 
available, to make positive target identifications. Currently, 
delays typically experienced in exploiting and disseminating 
traditional imagery collection often preclude such data from 
being used in engaging mobile targets. The Auto-tracking and 
automated weapon-target pairing algorithms developed in this 
ACTD should eliminate two large bottlenecks that currently 
would prevent efficient use of wide-area sensors like JSTARS, 
and the inherent attack capabilities of U.S. tactical-air and 
ground-attack missiles. Also, correlating multiple MTI data 
streams should enable precise target location even with radars 
with poor azimuth resolution.
    The Committee notes that DoD underestimated the cost of 
this ACTD at the time the budget was formulated. The Committee 
recommends authorizing $10 million above the request for this 
program but directs that none of these funds be obligated until 
the Air Force or other organizations provide the balance of 
funding required in fiscal year 1998. The Committee expects 
that, as part of the ACTD, DoD will examine the costs and 
benefits of adding a moving target indicator (MTI) mode to all 
the endurance UAVs; the need for correlation, auto-tracking, 
and weapon-target pairing capabilities in airborne platforms 
(such as JSTARS), on Navy ships, and, in a scaleable fashion, 
in Army common ground stations; and the need for wideband 
datalinks on the collection platforms. The Committee recommends 
further that this ACTD be coordinated with the arsenal ship 
demonstration, as appropriate, and the Navy's efforts to 
integrate JSTARS into Navy deep-attack capabilities.

Electro-optic framing technologies, +15.0 million

    The budget request included $7.0 million in program element 
0303526D, line 139, for electro-optic (EO) framing 
technologies.
    The Committee has been very supportive of efforts to 
further the EO framing with on-chip forward motion compensation 
(FMC) technologies, and has been very pleased with the efforts 
to develop high resolution and ultra-high resolution EO 
backplanes. The Committee understands the fiscal year 1998 
request does not reflect efforts to push this technology beyond 
the visible spectra, nor does it sufficiently fund the ultra-
high resolution (UHR), 100 mega-pixel, focal plane array (FPA) 
developments. The latter capability is necessary to increase 
the instantaneous field of view to the equivalent of current 
wet film cameras.
    Therefore, the Committee recommends an additional $15 
million in this program element for the following purposes:
          $8.0 million for continued development of the UHR 
        FPA, including modular, miniaturized electronics, and 
        conformance with JPEG 2000 wavelet compression 
        standards. This development should result in a form/fit 
        operational insertion into currently deployed CA-260 
        framing cameras.
          $3.5 million for operational insertion of tactical 
        infra-red EO framing technologies and image intensified 
        EO framing sensors with on-chip FMC. This should result 
        in form fit replacements for evaluation in the Richmond 
        Air National Guard reconnaissance pods.
          $3.5 million for developing an infra-red module into 
        the existing EO framing sensor on the Darkstar unmanned 
        aerial vehicle.

Theater airborne warning system, +20.0 million

    The budget request did not include funding for the Theater 
Airborne Warning System (TAWS), a medium-wave infrared (MWIR) 
sensor system capable of tracking and calculating the launch 
points of tactical ballistic missiles.
    In the fiscal year 1997 Defense Authorization, the 
conferees encouraged the Department of Defense to move forward 
with a near-term, cost effective program to transfer the mature 
TAWS MWIR technology from the RC-135 Cobra Ball aircraft to the 
RC-135 Rivet Joint aircraft. The Department's response was to 
determine whether the TAWS or the `Eagle' system installed on 
the Airborne Warning and Control System (AWACS) aircraft, would 
provide the most effective theater missile defense collection, 
analysis and warning capability. A resulting decision selected 
neither, and, instead, recommended such a capability be 
installed on the Airborne Laser (ABL) aircraft.
    The Committee understands that if the ABL goes into full 
production, only a hand-full of aircraft will be built with an 
initial operating capability in 2006. This does not appear to 
be the near-term solution the conferees were hoping for. 
Additionally, the committee questions where these limited 
number of aircraft will be assigned and whether they can 
provide the theater collection and warning missions that TAWS 
or EAGLE would.
    The Committee believes a near-term theater TBM analysis and 
warning capability is needed. Further, the Committee believes 
this mission is best satisfied by a reconnaissance aircraft. 
Therefore, the Committee recommends $20.0 million in Aircraft 
Procurement, Air Force, line 60, for migrating the TAWS MWIR 
technology from the Cobra Ball to the Rivet Joint aircraft.

Digital terrain elevation data, +$2.0 million

    The budget request included no funding in program element 
0305206D for developing a digital terrain elevation data (DTED) 
collection capability for aircraft.
    The stated requirements for DTED are very stringent and may 
cost the Department of Defense more than it can afford using 
current and planning collection methods. There are also 
indications that the Joint Warfare Capabilities Assessment for 
intelligence and reconnaissance casts doubt on the need for 
worldwide DTED at the currently required levels (levels 3, 4, 
and 5). Instead, the Committee believes it may be sufficient to 
have the surge capability to collect such data only when needed 
with an airborne system. However, no such DTED collection 
capability currently exists.
    The Committee therefore recommends an authorization of $2 
million in this program element for the Department to conduct 
an analysis to determine design trades from which to choose a 
airborne platform to perform such fine DTED data collection. 
This analysis should determine whether an embedded system or a 
``remove and replace''configuration that could be installed as 
necessary on an airframe of opportunity makes the most sense. The 
Committee requests the results of this analysis be provided to the 
defense and intelligence committees no later than April 1, 1998.

Predator unmanned aerial vehicle, no budgetary action

    The Committee is concerned about the manning of the 
Predator unmanned aerial vehicle (UAV). Specifically, the 
Committee has informally inquired about the morale and 
motivation of rated Air Force officer pilots flying the 
Predator. The Committee has also questioned the costs of flight 
qualifying a pilot in high performance jet aircraft, then to 
send them to fly the Predator, a low performance aircraft. The 
Committee has questioned whether enlisted personnel could be 
flight qualified in low performance commercial aircraft, 
certified and licensed by the Federal Aviation Administration 
and given a specialty code of Predator pilot. The Committee 
firmly believes the costs associated with such training would 
be dramatically lower than that of rated officers. The 
Committee also believes the morale and motivations of enlisted 
pilots would be extremely high, possibly higher than that of 
rated pilots taken from their cockpits. Finally, the Committee 
believes the high quality of the Air Force's enlisted personnel 
is, without question, a factor that would safely and 
effectively allow such pilots.
    Therefore, the Committee requests the Air Force to conduct 
a study of creating an enlisted pilot specialty code for the 
Predator UAV. The study should review the feasibility of 
training, employing, and maintaining enlisted pilots. It should 
compare the costs of training, the career salary costs, and the 
retirement cost projections of enlist pilots versus rated 
pilots. Finally, the study should carefully explore the morale 
and motivational issues. The Committee requests the results of 
this study be provided to the defense and intelligence 
committees by February 1, 1998.

Darkstar, no budgetary action

    The investigation of the crash last year of the first 
Darkstar unmanned aerial vehicle (UAV) and the experience of 
trying to field the Predator after its successful demonstration 
have revealed that reliability is an important issue for these 
advanced concept technology demonstrations (ACTDs). In 
principle, an ACTD is to demonstrate technology and need not--
perhaps should not--expend many resources to ensure that the 
demonstrated system is ready for serial production. However, in 
practice, the Department of Defense has demonstrated a 
proclivity to move directly into production with ACTD 
configurations immediately after successful demonstrations. 
Taking production issues into account in designing systems for 
ACTDs, therefore, would appear to be prudent, especially in 
cases (such as the endurance UAVs) where a unit price cap is a 
determining factor in the success of the program. The Darkstar 
program office is currently examining high-payoff reliability 
improvement measures for the system. The Committee directs 
Department to provide the results of this review and any 
actions taken as a result by February 15, 1998.
    The Committee also requests the Department to sponsor a 
study of the operational benefits of adding a moving target 
indicator (MTI) radar capability to the Darkstar, and the costs 
of doing so. This study should be coordinated with the program 
office of the Joint Mobile Target Engagement ACTD, assuming it 
gets underway in fiscal year 1998. The study should be 
submitted to the congressional defense and intelligence 
committees by April 1, 1998.

Joint planning and program review, fence $2.0 million

    The budget request included $6.6 million for Defense 
Intelligence Agency (DIA) general support to the defense 
community. Based on anti-terrorism and force protection 
directives from the Office of the Secretary of Defense, this 
request included funding for moving DIA elements within the 
Pentagon and to leased spaces.
    The Committee supports new DIA efforts, within this 
project, to provide intelligence assessments, intelligence 
inputs to Defense Planning Guidance, and other intelligence 
support functions. The Committee hopes that these efforts are 
indeed having an impact on defense planning and programming. 
The Committee further notes that the budget justification 
materials assert that these DIA assessments have ``determined 
shortfalls in current high-cost reconnaissance and surveillance 
programs and identified/prioritized specific near-term 
solutions, which resulted in great savings across Future Year 
Defense Plan (FYDP).'' Therefore, the Committee requests that 
the Director of DIA provide the defense and intelligence 
committees a report on these assessments before the fiscal year 
1998 conference.
    Further, the Committee does not believe there is inadequate 
justification in the request for a 35 percent increase in 
funding for moving personnel. Therefore, the Committee 
recommends a limitation on the obligation of $2.0 million of 
the request until the Department provides the Committee with a 
detailed explanation and rationale for the increased costs 
incurred by the DIA for these forced moves.

Tactical support, -$1.2 million

    The budget request included $9.9 million for continued 
support to the Tactical Exploitation of National Capabilities 
(TENCAP) programs, to provide management support to 
intelligence processes, and for funding contingency operations 
for Operation Southern Watch.
    Elsewhere in this report, the Committee has recommended 
reductions to the TENCAP programs, as it believes the 
utilization of space has become more commonplace, and therefore 
requires less specialized management support. Additionally, the 
Committee does not believe a funding increase for Operation 
Southern Watch is justified. Therefore, the Committee 
recommends an authorization of $8.7 million for the OSD 
Tactical Support effort, a reduction of $1.2 million.

Joint reserve intelligence program, +$2.1 million

    The Joint Reserve Intelligence Program (JRIP) is a new 
initiative designed to improve a structure wherein military 
reserve units can actively engage in direct, operational 
support to CinCs and the services, thus, promoting the DoD 
Total Force concept. The Committee fully supports the JRIP and 
believes that utilizing military reservists in a virtual 
analytic environment, particularly for analysis against lower 
tier countries, is critical if the Intelligence Community is to 
have flexible and global coverage. Therefore, the Committee 
authorizes $2.1 million for use in purchasing/leasing 
computers, facilities, programs and personnel (reserve man-
days) as deemed appropriate by the Deputy Assistant Secretary 
of Defense (Intelligence and Security).

Foreign instrumentation intelligence, no budgetary action

    The budget request contained no funding or personnel 
billets in the Joint Military Intelligence Program (JMIP) for 
Foreign Instrumentation Intelligence (FISINT) analysis.
    The Committee is concerned about the significant reduction 
in the number of weapons-specific FISINT analysts. While some 
decline in this capacity may have been justified following a 
decline in certain missile test activities, it is not 
consistent with the corresponding increase in other missile 
developments and testing. Numerous countries that did not 
retain such weapons capabilities during the bi-polar Cold War 
era are now able to obtain or indigenously develop high 
technology missiles and components. Many of these weapons could 
be used to threaten U.S. and allied forces. The Committee is 
convinced that weapons FISINT analyst levels have dropped too 
far, postponing important analysis of weapons systems and 
increasing gaps in U.S. understanding of new weapon systems.
    Therefore, the Committee recommends that of the positions 
realized as result of the abolishment of the Defense Airborne 
Reconnaissance Office directed elsewhere in this report, eight 
personnel billets should be made available to the Director, 
Defense Intelligence Agency, under his authorities as the 
Defense General Intelligence Applications Program Coordinator, 
to rebuild weapons FISINT analysis capabilities. The Director, 
DIA will allocate these billets to the National Security 
Agency, the National Aerospace Intelligence Center, the 
Missiles and Space Intelligence Center, and the Office of Naval 
Intelligence as required.

Special technology support, -$2.0 million

    The budget request included $11.7 million in program 
element 0603704D, line 36, for various Deputy Assistant 
Secretary of Defense (Intelligence and Security) quick reaction 
intelligence support projects.
    The Committee fully supports funding for the Department's 
efforts to quickly respond to unforeseen theater and unified 
command technical requirements. However, the Committee believes 
the justifications provided for fiscal year 1998 indicate that 
much of the activities in this program do not fall within this 
category and ought to be pursued, if at all, by Services or 
other DoD technology development agencies.
    Therefore, the Committee recommends an authorization of 
$9.8 million for this project, a decrease of $2.0 million.

Command and control, communications, computers and intelligence 
        integrated architecture plan, +$5.7 million

    The budget request included $3.6 million for the Command 
and Control, Communications, Computers and Intelligence (C41) 
Integrated Architecture Plan (CIAP).
    CIAP provides the Commanders in Chief (CINC) in-depth 
analysis of regioncentric intelligence issues resulting in 
regional intelligence support plan, resource programming and 
operational architecture design. The Committee has been very 
supportive of this effort, and is concerned that it is once 
again underfunded jeopardizing the completion of CIAP plans for 
several of the regional CINCs. The Committee believes these 
plans provide a unique analytical basis for future intelligence 
decisions, and that intelligence funding will be most 
effectively programmed and expended with such analysis.
    Therefore, the Committee recommends a total of $9.3 million 
in this P.E. for the CIAP efforts, an increase of $5.7 million.

Optionally piloted aircraft, +$2.5 million

    The budget request included no funding for the ``Owl'' 
Optionally Piloted Air Vehicle (OPV).
    The Committee firmly believes development of this multi-
functional aircraft will produce a unique, low-profile, 
airborne observation platform, providing an inexpensive, long-
dwell reconnaissance capability for counter-drug, law 
enforcement and other agencies. The Committee understands that 
U.S. Government funding for this aircraft would provide the 
basis for a federal/private industry partnership, with the 
majority of funding to be provided by the private industry 
partners.
    Therefore, the Committee recommends $2.5 million for this 
project in program element 0305889D. These funds will remain 
fenced pending the private industry funding.

                         NAASW report language

    The Congress has repeatedly addressed the need to maintain 
two separate, independent but coordinated non-acoustic anti-
submarine warfare (NAASW) programs within the Department of 
Defense. The Congress has also addressed the need for adequate 
and stable funding and for a stable management environment for 
both programs.
    Funding for NAASW has been reduced in recent years, and the 
Department's efforts have been reduced to three continuing 
efforts: the Navy's SSBN Security Program, the Office of Naval 
Research's (ONR) long-term science and technology efforts, and 
the OSD/C31 Advanced Sensor Applications Program (ASAP).
    Because of the degraded acoustic environment and smaller 
areas, the committee believes that today's emphasis on littoral 
warfare substantiates the need for research and development in 
NAASW technologies. The committee understands that the Navy 
currently assesses that no NAASW technology available today or 
in the foreseeable future threatens deep submarines in the open 
ocean. However, some of these technologies might prove to be 
effective ASW tools in the confined, shallow waters of the 
littoral.
    The committee expects that the SSBN Security Program will 
remain the Navy focal point for evaluating technical concepts 
to determine their possible threat to the SSBN force, and the 
potential for ASW utility. The ONR should continue to support 
advanced technology developments which have strong potential to 
improve our NAASW posture. The ASAP is expected to continue 
investigating advanced technology in NAASW. The committee 
believes that a senior oversight group needs to be maintained 
to provide technical and policy direction and to ensure the 
coordination and integration of ASAP and the Navy program.
    The Secretary of Defense is directed to address the 
Department's NAASW program as an area of special interest to be 
included in the Secretary's detailed ASW report when that 
report is submitted to the Congress with the submission of the 
fiscal year 1999 budget request.

Mapping, charting and geodesy, -$0.8 million

    The budget request included $8.4 million in Operations and 
Maintenance, Defense-wide, for continued National Imagery and 
Mapping Agency (NIMA) support to the Defense Intelligence 
Counter-Drug's (DICP) mapping, charting and geodesy (MC&G) 
requirements.
    The Committee has taken action elsewhere in this report to 
modernize and streamline NIMA MC&G operations. This action 
forces NIMA to move toward privatization and use of geospatial 
data maintenance rather than developing products. The Committee 
believes the DICP will benefit from these changes.
    Therefore, the Committee recommends an authorization of 
$7.6 million for this effort, a decrease of $0.8 million.

              Tactical Intelligence and Related Activities

Satellite communications radios, +$3.6 million

    The budget request did not provide funds for fielding or 
operating satellite communications (SATCOM) radios at remote 
Army Counterintelligence (CI) units in Korea.
    The Committee is aware that communications shortfalls exist 
to fully support CI units deployed throughout Korea and that a 
recent study identified a requirement to provide SATCOM 
capabilities to these units to ensure reliable connectivity 
with them.
    The Committee recommends $2.8 million in Other Procurement, 
Army, line 63 for purchasing SATCOM radios for CI units in 
Korea to correct this shortfall. The Committee also recommends 
$0.8 million in Operations and Maintenance, Army to operate 
these radios.

Airborne reconnaissance low, no budgetary change

    The Committee notes that the U.S. Army redirected fiscal 
year 1996 funding, authorized and appropriated to convert 
Airborne Reconnaissance Low (ARL)-I and ARL-C aircraft into the 
multi-intelligence ARL-M configuration, into developments for a 
Moving Target Indication (MTI) Synthetic Aperture Radar (SAR). 
While this capability was required, Congress was not properly 
notified and did not authorize this shift of funding. Report 
language in the fiscal year 1997 bill stated congressional 
concern for the Army's actions.
    The Committee has now learned, again after the fact, that 
the Army has redirected fiscal year 1997 funding from the ARL-M 
conversions to acquire two additional ARLaircraft. Once again, 
the congressional oversight Committees were not properly notified 
before the Army completed its actions, nor did they formally agree to 
this action. While the Committee now agrees with the rationale for the 
decisions, the Army's process leading to these actions is not 
acceptable. The Committee does not condone the Army's purchase of two 
new aircraft without specific congressional authorization.
    Because of the Army's actions, the Committee directs the 
ARL program be identified as a Congressional interest item. The 
Army should not redirect any funding exceeding $2 million that 
has been specifically authorized and appropriated for projects 
in this program without prior formal approval from the defense 
and intelligence committees. This restriction applies to fiscal 
year 1998 and future year funding.

Join tactical terminal, no budgetary change

    The Committee is aware that the Department of Defense is 
attempting to move to the Joint Tactical Terminal (JTT) to 
receive the intelligence data broadcasts such as the Integrated 
Broadcast Service and its antecedent datalinks. However, an 
ongoing protest has delayed contract award and subsequent start 
of engineering and production of the JTT. This will negatively 
impact operational users who have an immediate need to receive 
the current data broadcasts.
    Therefore, the Committee supports the Services and Agencies 
procuring available transceivers to serve these immediate needs 
with funding requested for the JTT. However, the committee 
directs that only the two radios, determined by the Assistant 
Secretary of Defense (Command and Control, Communications and 
Intelligence) as migration systems, the Commander's Tactical 
Terminal and the Multi-mission Advanced Tactical Terminal, be 
procured for this purpose.

Tactical air reconnaissance pod system, +$5.0 million

    The budget request included no funding for development of 
the F-18 Tactical Air Reconnaissance Pod System (TARPS) 
Completely Digital (CD) capability.
    The Committee has followed the TARPS digital (DI) electro-
optical (EO) improvements and is very pleased with the results 
of this interim, but limited, capability. However, the 
Committee believes there is a need to move to a production EO 
capability with a larger format back plane that provides a 
larger target area field-of-view. The Committee understands the 
TARPS CD development would provide such a capability at 
significantly less cost than a Navy purchase of the Advanced 
Tactical Airborne Reconnaissance System (ATARS). In the fiscal 
year 1997 Defense Authorization Act, Congress provided 45.0 
million for the TARPS CD effort. As of this writing, the 
Committee understands this funding had not been released to the 
program office. The Committee also understands a total of $10.0 
million is necessary to complete all the non-recurring 
engineering for TARPS CD.
    Based on the successful results from the interim DI 
efforts, the Committee is convinced that CD will provide a cost 
effective EO tactical manned reconnaissance capability to 
replace the current film-based F-18 pods. Further, the 
Committee believes the Navy is not moving forward with this 
capability aggressively enough. Therefore, the Committee 
recommends $5.0 million in Research and Development, Navy, line 
151 for modifying TARPS CD using off-the-shelf equipment. The 
Committee directs the Navy to move to TARPS CD production as 
expeditiously as possible.

Close range unmanned aerial vehicle, +$5.0 million

    The budget request included no funding within the Marine 
Corps Tactical Intelligence and Related Activities aggregation 
for developing or modifying a close range tactical unmanned 
aerial vehicle (UAV) that satisfies specific Corps needs.
    The Committee elsewhere in this report directs termination 
of the Outrider Joint Tactical UAV, and directs several actions 
designed to provide the services with the flexibility to 
satisfy their unique needs. One approach is to purchase ``off-
the-shelf'' tactical UAVs. While the committee firmly believes 
such vehicles exist and can be procured, it is concerned that 
available UAV systems do not provide a secure digital data link 
capability required in a sophisticated battlefield environment.
    Therefore, the committee recommends $5.0 million in 
research and Development, Marine Corps, line 167, for this 
purpose. The committee believes the Marine Corps is the logical 
service to investigate and develop this capability, and expects 
the Marine Corps to make available all resulting capabilities 
to the other services.

Join STARS integration, +$10.0 million

    The budget request included $5.1 million in program element 
0604231N for continued development and integration of new 
functionality for the Joint Maritime Communications Information 
System (JMCIS)--Afloat. None of the funds were requested for 
including a capability within JMCIS to exploit Joint 
Surveillance and Target Radar System (JSTARS) moving target 
indicator (MTI) data.
    The Committee believes there are compelling reasons for the 
Navy to acquire the ability to use the Joint STARS radar 
surveillance system. The Navy currently has no means to detect, 
track, and locate moving targets, on a large scale, so as to 
contribute meaningfully to operations ashore. The Navy and 
Marine Corps aviation forces, future variants of the Tomahawk 
missile, shore fire-support systems, the arsenal ship, and 
amphibious forces will all require highly capable moving target 
indicator (MTI) radar support for situation assessment and 
targeting.
    The Committee therefore recommends an increase of $10 
million over the requested amount in this program element for 
the following purposes:
          (1) to integrate Link 16/TADIL J into JMCIS/GCCS core 
        software;
          (2) to develop an interface from Link 16 JTIDS to 
        JMCIS/GCCS;
          (3) to enable the JMCIS/GCCS correlation function to 
        use or interpret JSTARS data; and
          (4) to enable JSTARS SAR data to be put the proper 
        format for use within JMCIS/GCCS.
    It is important to note that most of these items--and most 
of the expense--are required regardless of whether the Navy 
itself is going to use JSTARS. Clearly, at some point, DoD will 
have to pay the bill to integrate Link 16/JTIDS into GCCS. This 
initiative would enable the Navy to exploit JSTARS through the 
Link 16/JTIDS system. The Committee is concerned that this 
approach will not serve all of the Navy's needs for JSTARS 
support. Therefore, elsewhere in this report, the Committee 
address the issue of enabling the Navy to receive wide-band 
data from JSTARS and other platforms.

Advanced deployable system, +$10.4 million

    The budget request included $33.5 million in program 
element 0604784N for continued development of the Advanced 
Deployable System (ADS), an element of the Integrated Undersea 
Surveillance System (IUSS) program. The request included funds 
for the concept evaluation, program definition, and risk 
reduction phase of an ADS prototype and engineering and 
manufacturing development for the production of the ADS.
    To meet the requirement for providing reliable detection of 
quieter threat submarines operating in the nosy and shallow 
water of the world's littoral regions, a significantly improved 
information processing and data fusion capability is needed for 
support of ADS operations. The budget request is insufficient 
for development of these capabilities and does not support the 
conduct of an at-sea test to validate ADS performance in the 
challenging littoral environments. Accordingly, the Committee 
recommends an increase of $10.4 million to the budget request 
for continued development and integration of automated 
detection and data fusion algorithms, rapid prototyping of 
information processing capabilities, and at-sea testing to 
validate the expected improvements in ADS performance.

Navy F/A-18F tactical reconnaissance, no budgetary change

    The Committee understands the U.S. Navy desires to provide 
a long-term replacement for the F-14 Tactical Air 
Reconnaissance Podded System (TARPS) with an electro-optic 
podded system for the F/A-18F Super Hornet. The Committee has 
closely monitored the technical issues and difficulties 
experienced by the Marine Corps with its internally-mounted 
Advanced Tactical Reconnaissance System (ATARS) for the F/A-
18D. These problems have led the Committee to believe that a 
podded reconnaissance capability is the most cost-effective and 
mission-flexible approach for Navy fighter aircraft. This 
belief would appear to be bolstered by the expected costs and 
extent of modifications necessary to the low-observable F/A-18F 
airframe if an internal sensor were to be chosen.
    Therefore, the Committee applauds the Navy's decision to 
develop a nondedicated podded reconnaissance capability for the 
Super Hornet. The Committee stresses that if this Navy position 
changes, the Committee will not favorably review future 
requests for an internally-mounted F/A-18 reconnaissance 
capability. Further, the Committee believes the Navy should, to 
extent possible, ensure the TARPS completely digital (CD) 
development efforts be transferable to the F/A-18F pods. 
Finally, to ensure that the latest technologies are provided to 
the users, the Committee directs that the development/
procurement of an F/A-18F podded system be competitively 
awarded.

Tactical information program, +$4.0 million

    The budget request contained $5.2 million in Operations and 
Maintenance, Air Force, partly for operation of the Integrated 
Broadcast Service (IBS) executive agency by the Air 
Intelligence Agency (AIA).
    The Committee believes the budget request does not 
adequately fund the increased operational demands levied on AIA 
as a result of the decision by the Assistant Secretary of 
Defense (C3I) to direct the Air Force to manage the development 
of the IBS data broadcast program. Therefore, the Committee 
recommends an increase of $4.0 million for this purpose. 
Elsewhere in this report, the Committee recommends a reduction 
of $3.0 million from PE 0304111F, R-169, and $1 million from 
Other Procurement, Air Force, line 113, as an offset for this 
increase.

Integrated broadcast service, +$5.0 million

    The budget request included $4.1 million in other 
procurement, Air Force, line 47, partially for beginning 
development of the standards for the OSD-approved Integrated 
Broadcast Service (IBS).
    The Committee fully supports OSD's efforts to coordinate 
intelligence data broadcasts to the warfighter. To that end, 
the Committee believes the IBS data link Executive Agent (Air 
Force's Air Intelligence Agency) must be properly resourced to 
accomplish its assigned tasked. Therefore, the Committee 
recommends an increase of $5.0 million to fully develop the 
standards and to accelerate the IBS technical/operational 
architecture development. However, the Committee directs that 
this funding not be obligated or expended without the specific 
concurrence of the overall IBS program Executive Agent (the 
Deputy Director, Space & Electric Warfare Division, HQ USN).

Theater airborne reconnaissance system, fence $6.2 million

    The budget request included $6.2 million in aircraft 
procurement, Air Force, for procuring podded electro-optical 
camera systems for Air National Guard F-16 Block 30 aircraft.
    The Committee notes that the total cost for the Theater 
Airborne Reconnaissance System (TARS) capability has been 
capped by Congressional direction at $50 million. The Committee 
understands there has been significant upheaval in getting 
underway with this project. The original contract award was, as 
the Committee has informed, inevitably, protested. This protest 
was settled in a strained contracting arrangement between the 
prime contractor and the, now, subcontractor. The Committee 
finds the private sector actions leading to the current 
situation regrettable as the government has ultimately paid the 
costs both in terms of additional funding and time getting 
needed warfighting capabilities to American airmen. Further, 
the government has not been without fault in this case. 
Apparently, the Department has successfully positioned itself 
to sole-source a second TARS sensor using the Advanced Tactical 
Airborne Reconnaissance System (ATARS) Medium Altitude Electro-
optical (MAEO) sensor. This has been accomplished by providing 
a structural environment that will make other competitor's 
offers too difficult and expensive to achieve. This, the 
Committee finds intolerable.
    In discussions with the Air Force, the Committee has 
learned the current program results in a total contract worth 
$38.9 million. The Committee now understands the Air Force 
plans to use the fiscal year 1998 funding to award a sole-
source contract for six or fewer MAEO sensors. The purchase of 
these sensors will maximize the overall TARS costs under the 
$50 million cap. While the Committee absolutely disagrees with 
the history that brought the Department to this point, it 
agrees that a sole-source contract is now the only cost-
effective means for inserting this second sensor. However, the 
Committee does question the logic for purchasing this limited 
number of sensors. The Committee does not see the operational 
utility and the logistical supportability of a single MAEO 
sensor at each of five operational squadrons with a single 
spare for all.
    Therefore, the Committee fences all requested fiscal year 
1998 funds until the Secretary of Defense provides to the 
congressional defense and intelligence Committees a report 
that:
          (1) specifically details the history and the 
        decisions that resulted in the position forcing the 
        Department to select the MAEO sensor as a sole-source 
        item;
          (2) provides operational rationale and requirements 
        for a follow-on purchase of six or fewer MAEO sensors, 
        and the operational impact if none are purchased;
          (3) certifies any follow-on actions do not commit 
        funds that would exceed the $50 million cost cap 
        (excluding the cost of a follow-on data link 
        installation).

Moving target indicator radar, no budgetary action

    As a result of the Quadrennial Defense Review (QDR), the 
Department of Defense has decided to reduce the planned 
procurement of Joint Surveillance Target Attack System (JSTARS) 
aircraft from 19 to 13. According to Department officials and 
the QDR report, the major rationale for the reduction is that 
13 aircraft is slightly more than sufficient for one major 
conflict. And, if a second conflict were to erupt, some of the 
aircraft assigned to support the first war could be shifted 
over to the second. The QDR report also indicated that the 
Department will investigate the potential for supplementing the 
remaining JSTARS force with moving target indicator (MTI) 
radars on endurance unmanned aerial vehicles. The report does 
make a vague reference to funding ``key upgrades'' to JSTARS, 
including the radar system and communications capabilities.
    The National Defense Panel, in its initial reaction to the 
QDR, criticized the decision to reduce the JSTARS buy as 
inconsistent with the Department's rhetorical commitment to 
dominant battlefield awareness and improved surveillance and 
intelligence capabilities.
    The Committee is struck by the Department's adoption of a 
``swing'' strategy for critical reconnaissance capabilities. If 
a swing strategy is appropriate for JSTARS, why isn't it 
appropriate for virtually all surveillance capabilities? What 
is the rationale for sizing the force of U-2s, UAVs, Rivet 
Joints, EP-3s, Guardrail, the Airborne Warning and Control 
System (AWACS), and so on for two major conflicts if the MTI 
radar need can be sized for one? Certainly, the distinction 
cannot be based on differences in importance between MTI radar 
and other collection disciplines, such as SIGINT or 
conventional imagery, since the QDR's own Command, Control, 
Communications, Intelligence and Reconnaissance (C4ISR) Mission 
Assessment (CMA) study affirms that MTI radar is a key to 
achieving dominant battlefield awareness, something the 
Chairman of the Joint Chiefs of Staff has publicly stated is 
the underpinning for all the elements of his Joint Vision 2010. 
Indeed, the CMA study, as well as the Department's proposed 
Joint Mobile Target Engagement Advanced Concept Technology 
Demonstration (ACTD), postulates the additional MTI radar 
resources, now fewer, are required to meet the Department's 
warfighting needs.
    The Committee believes additional MTI capabilities are 
needed to provide coverage deep against strategic-level SAMs, 
mobile missiles, and other forces; to enable precise target 
location by integrating multiple sensors; and to allow 
continuous tracking of identified targets. Ground surveillance 
radar is a linchpin for a capability to attack mobile targets 
with any efficiency and on a reasonable scale, with aircraft 
and missiles. It is precisely this capability that lies at the 
heart of modern military strategy.
    The CMA study claims that technology is at hand for a 
moderate-risk, near-term program to place JSTARS-like 
capabilities on a UAV such as Global Hawk at a fraction of the 
cost, despite the enormous differences in aircraft power and 
payload. The CMA study also claims that technology advances 
would support a low-risk program to fully reproduce JSTARS 
capabilities on a business jet, again at great savings. The 
Committee is aware that there is skepticism within the 
Department regarding these claims. Furthermore, the Under 
Secretary of Defense for Acquisition and Technology has 
reported to Congress that enhancements to the JSTARS radar 
would be required to support a cruise missile defense mission. 
The CMA study did not take such requirementsinto account in 
calculating required radar performance for potential UAV replacements 
for JSTARS, nor did it, apparently, take into account a potential 
future decision not to continue with the high altitude UAVs beyond 
their ACTDs.
    In conclusion, the Committee is disturbed by the 
Department's actions thus far on moving target surveillance. 
The JSTARS decision has the appearance of being based on narrow 
budgetary grounds and not on requirements. The decision does 
not reflect what appears to be a need for more MTI radar 
capabilities rather than less. It also does not comport with 
assurances provided Congress over the last year regarding 
advanced air defense capabilities. The QDR report mentions a 
possibility of augmenting the residual JSTARS force with a UAV-
based capability, but the Department has yet to come to grips 
with the technical issues involved in this or related 
initiatives.
    The Committee therefore recommends that the Chairman of the 
Joint Chiefs of Staff conduct a comprehensive study to 
determine DoD's needs for MTI radar capabilities. The Committee 
further recommends the Under Secretary of Defense for 
Acquisition and Technology conduct an associated study to 
determine the appropriate technical approach to meeting these 
needs. The studies should specifically assess the technical 
basis for the conclusions reached in the CMA study, as well as 
the implications of incorporating new requirements such as 
cruise missile defense. The studies should be conducted in 
whatever manner is necessary to ensure that all relevant 
programs and activities are considered, regardless of 
classification. The Under Secretary should submit a report on 
this study to the congressional intelligence and defense 
committees by April 1, 1998.

Tactical exploitation of national capabilities, -$12.1 million

    The budget request included $107.2 million for various 
Tactical Exploitation of national capabilities (TENCAP) and 
related research and development projects within the service 
Tactical Intelligence and Related Activities (TIARA) and Joint 
Military Intelligence Program (JMIP). This breaks down to:
          $1.7 million in program element 0305884L in the JMIP 
        Defense Intelligence Tactical Program,
          $12.3 million in program element 0604766A within Army 
        TIARA,
          $11.0 million in program element 0605867N within Navy 
        TIARA,
          $15.2 million in program element 0207247F within Air 
        Force TIARA,
          $3.3 million in program element 0206313M within USMC 
        TIARA,
          $1.0 million in program element 1160405BB within 
        SOCOM TIARA, and
          $34.9 million in program element 0305159I within the 
        JMIP Defense Space Reconnaissance Program.
    The Congress directed the establishment of the modest and 
very successful TENCAP program in 1977. Since then, numerous 
TENCAP projects have demonstrated and fielded capabilities that 
allow tactical consumers to exploit the capabilities of 
national space programs. These projects have, without question, 
provided needed warfighting capabilities to military customers 
around the world. The associated costs, however, have steadily 
increased, and some projects are questionably space-related.
    The Committee believes that the tactical 
``operationalization'' of space has become commonplace within 
military doctrine, planning, and execution. Space, today, has 
become simply another dimension of warfare, and is now less an 
enigma; we should, as a result, require fewer specialized 
projects to inform, educate, and provide improved capabilities. 
Also, the Committee believes the TENCAP programs have, to a 
small degree, become a funding source for projects that are not 
directly focused on exploiting national systems. Finally, the 
now-public National Reconnaissance Office has an explicit 
mission to provide support to military operations, and takes 
this mission seriously.
    While the Committee is fully supportive of the TENCAP 
program, it believes there is a need to begin a decline in the 
specialized projects to exploit space and national 
capabilities. Such exploitation should, and must, be the focus 
of new programs from the outset of their development. 
Therefore, the Committee recommends the following 
authorizations:
          $1.5 million in program element 0305884L (-.2 
        million),
          $36.0 million in program element 0604766A (-1.2 
        million),
          $10.0 million in program element 0605867N (-1.0 
        million),
          $14.0 million in program element 0207247F (-1.2 
        million),
          $3.0 million in program element 0206313M (-0.3 
        million),
          $1.0 million in program element 1160405BB (no 
        change), and
          $30.0 million in program element 0305159I (-3.5 
        million).

Special operations forces intelligence vehicle, +$5.0 million

    The budget request included no funding for improvements to 
the Special Operations Forces (SOF) Intelligence Vehicle (SOF 
IV).
    The Committee fully supports the Special Operations 
community and its needs for the most up-to-date intelligence 
support capabilities such as the SOF IV. The Committee is aware 
that current funding profiles do not begin block upgrades 
approved in the evolutionary acquisition strategy until fiscal 
year 1999. To ensure critical intelligence support is 
available, the Committee believes the SOF IV must be upgraded 
as quickly as possible to ensure its world-wide communications 
connectivity and interoperability based on Defense Intelligence 
Infrastructure (DII) Common Operating Environment (COE) 
standards.
    Therefore, the Committee recommends $5.0 million in P.E. 
116405BB forimplementing evolutionary enhancements to the SOF 
IV in support of deployed Joint Special Operation Command Task Forces 
Headquarters. These funds will be used to develop and install a DII/COE 
compliant dual local area network providing separate special 
compartmented intelligence and collateral communications circuits over 
a single communications path.

          Section-by-Section Analysis of the Bill as Reported

          intelligence authorization act for fiscal year 1998

Title I: Intelligence activities

            Section 101--authorization of appropriations
    Section 101 lists those elements of the United States 
Government for whose intelligence and intelligence-related 
activities the Act authorizes appropriations for fiscal year 
1998.
            Section 102--classified schedule of authorizations
    Section 102 incorporates by reference the classified 
Schedule of Authorizations. That schedule sets forth the 
specific amounts authorized to be appropriated for intelligence 
and intelligence-related activities and personnel ceilings for 
fiscal year 1998 for those United States Government elements 
listed in Section 101. The details of the Schedule are 
explained in the classified annex to this report.
            Section 103--personnel ceiling adjustments
    Section 103 authorizes the Director of Central 
Intelligence, with the approval of the Director of the Office 
of Management and Budget, in fiscal year 1998, to exceed the 
personnel ceilings otherwise applicable to the components of 
the Intelligence Community under Section 102 by an amount not 
to exceed two percent of the total of the ceilings otherwise 
applicable under Section 102. The Director may exercise this 
authority only if doing so is necessary to the performance of 
important intelligence functions. Any exercise of this 
authority must be reported to the two Intelligence committees 
of the Congress.
    The Committee emphasizes that the authority conferred by 
Section 103 is not intended to permit the wholesale raising of 
personnel strength in any intelligence component. Rather, the 
section provides the Director of Central Intelligence with 
flexibility to adjust personnel levels temporarily for 
contingencies, and for overages caused by an imbalance between 
hiring of new employees and attrition of current employees. The 
Committee does not expect the Director of Central Intelligence 
to allow heads of intelligence components to plan to exceed 
levels set in the Schedule of Authorizations, except for the 
satisfaction of clearly identified hiring needs that are 
consistent with the authorization of personnel strengths in 
this legislation. In no case is this authority to be used to 
provide for positions otherwise denied by Congress.
            Section 104--community management account
    Section 104 details the amount and composition of the 
Community Management Account (CMA) of the Director of Central 
Intelligence.
    Subsection (a) authorizes appropriations in the amount of 
$147,588,000 for fiscal year 1998 for the staffing and 
administration of various components under the CMA. Within such 
amounts authorized, funds identified for the Advanced Research 
and Development Committee and the Environmental Intelligence 
and Applications Program remain available through September 30, 
1999.
    Subsection (b) authorizes a total of 313 full-time 
personnel for elements within the CMA for fiscal year 1998 and 
provides that such personnel may be permanent employees of the 
CMA element or detailed from other elements of the United 
States Government.
    Subsection (c) explicitly authorizes additional personnel 
and funds for the CMA as are specified in the Schedule of 
Authorizations, which is incorporated into this Act through 
Section 102.
    Subsection (d) requires that personnel be detailed on a 
reimbursable basis except for temporary situations.
    Subsection (e) authorizes $27,000,000 to be made available 
to the Attorney General by the Director of Central Intelligence 
for the operation and management of the National Drug 
Intelligence Center (NDIC), above in Johnstown, Pennsylvania, 
from the funds authorized for the CMA in Subsection (a) 
located. Furthermore, Subsection (e) comprehends the NDIC's 
need for long-term moneys so funds authorized for research and 
development, and procurement remain available until September 
30, 1999, and September 30, 2000, respectively for such 
purposes.

Title II: Central Intelligence Agency retirement and disability system

            Section 201--authorization of appropriations
    Section 201 authorizes appropriations in the amount of 
$196,900,000 for fiscal year 1998 for the Central Intelligence 
Agency Retirement and Disability Fund.

Title III: General provisions

            Section 301--increase in employee compensation and benefits 
                    authorized by law
    Section 301 provides that authorized appropriations 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 within this Act does not constitute authority 
for the conduct of any intelligence activity that is not 
otherwise authorized by the Constitution or laws of the United 
States.
            Section 303--administration of the Office of the Director 
                    of Central Intelligence
    Section 303 amends Section 102(e) of the National Security 
Act of 1947 (50 U.S.C. 403) by reinserting language that was 
inadvertently deleted when Congress enacted amendments to the 
National Security Act of 1947 through the Intelligence 
Authorization Act for Fiscal Year 1997. See P.L.104-293. This 
language places the Office of the Director of Central 
Intelligence within the CIA, and clarifies that the CIA has the 
authority to provide administrative support to entities within 
the Office of the Director.
            Section 304--detail of intelligence community personnel--
                    intelligence community assignment program (ICAP)
    Section 304 provides authorization for the inauguration of 
the Intelligence Community Assignment Program (``ICAP''). The 
ICAP plan was developed as part of an effort to broaden the 
perspective of Intelligence Community (``IC'') employees and to 
create an additional mechanism by which employees can secure 
rotational assignments within the IC. The Committee anticipates 
that the ICAP will develop IC leaders with broad knowledge of, 
and appreciation for, the issues facing the various elements of 
the IC. Without this provision, the implementation of ICAP as 
envisioned will not be possible. Enactment of this provision 
will bring the United States Government one step closer to 
achieving the goal of creating a more efficient and 
``corporate'' Intelligence Community. This development is 
applauded by the Committee.
    The Committee understands that ICAP assignments will be two 
to three years in duration and involve only GS-13 to Senior 
Executive Service/Senior Intelligence Service positions. 
Section 304 will allow heads of IC entities, or their 
designees, to authorize long-term reimbursable or 
nonreimbursable details within the ICAP.
    Nonreimbursable details would be capped at three years; 
however, the heads of the parent and host agencies could extend 
such details for a period not to exceed an additional one year 
when they determine an extension is in the public interest. The 
provision also would authorize IC elements to pay ICAP 
participants those benefits, allowances, travel, and/or 
incentives otherwise provided by their organizations to enhance 
staffing.
    Current law could impede the effective implementation of 
ICAP in two respects. First, under title 31, United States 
Code, nonreimbursable details are restricted and must either 
involve a matter related to the loaning agency's appropriation 
and aid it in accomplishing the purpose for which the 
appropriations are provided; or have a negligible impact on the 
loaning agency's appropriations (generally viewed as a detail 
of one year or less). This restriction would impede the ability 
to establish the longer-term nonreimbursable rotations 
necessary to provide adequate exposure to a broader range of IC 
activities.
    Second, under existing law, it is questionable whether 
unique benefits, allowances, travel and/or incentives normally 
payable to employees may continue to be paid to those employees 
upon their detail to another IC organization. Employees may 
view loss of such benefits as a penalty for participating in 
ICAP and may be less willing to participate in the program. 
With the enactment of this section, IC elements will be able to 
provide special relocation bonuses and cost-of-living 
allowances to employees on detail under the ICAP if it is 
determined that the particular incentive is necessary to fill 
the position. This determination should be made on a case-by-
case basis. This provision supplies much needed flexibility to 
enable the ICAP to succeed.
    The Committee hopes the ICAP will help address concerns 
shared by senior IC managers, the Intelligence committees of 
the Congress, and the Brown Commission, all of which 
highlighted the need for IC employees to develop an IC-wide, or 
more ``corporate,'' perspective of intelligence activities. The 
Committee estimates that not more than 100 IC employees will be 
involved in the ICAP, in its initial stage. That number of 
expected to grow to close to 900 employees by fiscal year 2001. 
The Committee requires that an annual report be provided to the 
Intelligence committees on March 1 of each year concerning each 
preceding 12 month period. The report is to be submitted by the 
Director, or his or her designee, and should include a summary 
of the efficacy of the ICAP, and the costs and benefits 
realized by the IC and to the national security resulting from 
the operation of the program.
            Section 305--application of sanctions laws to intelligence 
                    activities
    Section 305 further extends the deferral of sanctions 
provision in current law until January 6, 1999. This provision 
was first included in the Intelligence Authorization Act for 
Fiscal Year 1996. It was extended until January 6, 1998, as 
part of the Intelligence Authorization Act for Fiscal Year 
1997. The provision amended the National Security Act of 1947 
to give the President statutory authority to delay imposing a 
sanction, uponhis determination that proceeding with the 
sanction could compromise an ongoing criminal investigation or an 
intelligence source or method. The President would be required to lift 
any stay of sanction as soon as possible. Also, the provision would 
require the President to report to Congress immediately upon imposing 
any stay and when any stay exceeds 120 days.
    The Committee believes it is worthwhile to reiterate the 
Joint Statement of Managers to the Conference Report for the 
Intelligence Authorization Act for Fiscal Year 1996 as it 
discussed the original amendment to the National Security Act, 
currently found at Sections 901-905 of that Act.
    The underlying provision, which would be extended for one 
additional year by the Fiscal Year 1998 Act, ``permit[s] the 
President to stay the imposition of an economic, cultural, 
diplomatic, or other sanction or related action when the 
President determines and reports to Congress that to proceed 
without delay would seriously risk the compromise of an 
intelligence source or method or an ongoing criminal 
investigation.'' See Joint Explanatory Statement of the 
Committee of Conference to the Intelligence Authorization Act 
for Fiscal Year 1996, 104th Congress 1st Session, Report No. 
104-427 at page 23. The underlying provision:

        grants the President the authority to stay the 
        imposition of a sanction or related action. . . . [and] 
        requires that when a sanction or related action is to 
        be deferred due to the risk of compromise of a source 
        or method or an ongoing criminal investigation, the 
        source or method or the law enforcement matter in 
        question must be related to the activities giving rise 
        to the sanction. The section allows the President to 
        stay the imposition of a sanction or related action for 
        a specified period not to exceed 120 days.

    Id. As part of this finding by the President, there must 
also be a certification by the President that the delay in the 
imposition of a sanction or related action will not be 
seriously prejudicial to the achievement of the United States' 
nonproliferation objectives or significantly increase the 
threat or risk to United States' military personnel. Id.
    The Committee emphasizes that this is not a sanctions 
waiver provision, but rather a sanctions deferral provision. 
The President is not authorized to avoid sanctions under this 
section, but rather can only delay imposition in order to 
accommodate the protection of sources and methods or to protect 
the integrity of an ongoing criminal investigation.
    In any event, the underlying provision ``requires that 
reports to Congress pursuant to [the sanctions deferral 
provision] be submitted promptly upon the President's 
determination to stay the imposition of a sanction or related 
action.'' Id. Any delay of sanctions decision that relates to 
intelligence sources and methods must be reported to the 
Intelligence committees of the House and Senate.
    The Committee reaffirms the need for dialogue between 
Congress and the Executive Branch on such questions of 
sanctions and deferral of same. It is expected that whatever 
reports are submitted to Congress will ``indicate the nature of 
the activities giving rise to the sanction or related action, 
the applicable law concerned, the country or countries in which 
the activity took place, and other pertinent details, to the 
maximum extent practicable consistent with the protection of 
intelligence sources and methods.'' Id.
    The Committee fully anticipates compliance by the President 
with the sanctions laws of the United States. That said, 
however, the Committee also strongly believes that there is a 
continuing need for this provision in the event a need to 
impose sanctions becomes apparent, but doing so immediately, 
without some delay, would jeopardize a criminal investigation 
or sources and methods of intelligence collection. The 
Committee expects that when the President chooses to exercise 
the deferral authority, the utmost will be done to resolve the 
underlying issues that permit deferral as soon as possible so 
that the necessary and mandated sanctions will be imposed. The 
Intelligence and Judiciary Committees, as appropriate, should 
be fully informed of the efforts being made to address the 
circumstances that underlie any delay in the imposition of 
sanctions.
    The Committee understands that instances where sanctions 
will be deferred will be rare, and that the deferral authority 
will be exercised only when an intelligence source or method or 
a criminal investigation is seriously at risk. Deferral of 
sanctions should never be grounded on a generic or speculative 
intelligence or law enforcement concern, nor should the 
legitimate concern for the integrity of our intelligence 
sources and methods and our criminal investigations be used as 
a pretext to avoid imposing sanctions because doing so would 
present diplomatic difficulties. The President must lift the 
stay as soon as a determination is made that the risk to 
sources and methods or the integrity of the criminal 
investigation is no longer present were sanctions imposed.
    Finally, any determination to defer sanctions should be 
preceded by the rigorous interagency review process 
contemplated by the conferees to the Intelligence Authorization 
Act for Fiscal Year 1996. See id.

Title IV: Central Intelligence Agency

            Section 401--multiyear leasing authority
    Section 401. Subsection (a) modifies Section 5 of the CIA 
Act of 1949 to provide clear legislative authority for the CIA 
to enter into multiyear leases of not more than 15 years' 
duration for the purpose of ensuring cost-efficient acquisition 
of overt Agency facilities. This authority is, of course, 
subject to appropriations provided for in advance for either 
the full cost of the lease or the first 12 months' cost, plus 
estimated termination liability. In the latter case, leases 
shall include a clause that conditions the lease upon the 
availability of funds in any fiscal year. Additionally, funds 
made available for termination liability remain available until 
the costs associated with lease termination are paid. This 
provision is similar to, and modeled after, Section 1072 of the 
Federal Acquisition Streamlining Act (``FASA'') of 1994. In the 
event a lease is not terminated early, excess termination 
liability funds may be used to satisfy rental obligations in a 
subsequent fiscal year. Lastly, available funds in any fiscal 
year may be used to make lease payments for a maximum of 12 
months beginning any time during that fiscal year. This 
provision is similar to Section 1073 of FASA.
    With the end of the Cold War, the CIA has been reorganizing 
to meet new intelligence requirements. As part of this effort, 
the CIA has been consolidating its overt facilities in the 
Washington, D.C. area, and other locations. This process, as 
well as future consolidation efforts, calls for the acquisition 
of new leases that permit the CIA to relocate from outdated 
facilities with poor workspace, outmoded communications, and 
increased personnel security and safety risks. The ability to 
enter into multiyear leases during this consolidation process 
will result in savings to the Government, in both time and 
money. Multiyear leases, because of their stability, are highly 
desirable to commercial landlords and lenders. Multiyear 
leasing authority will allow the CIA to negotiate with a wider 
array of landlords, thus resulting in the best lease terms 
possible for the Government. Multiyear leasing authority will 
permit the CIA to conduct these negotiations in a more timely 
manner than is currently possible. For these reasons, multiyear 
leasing authority makes sense to the Committee and is an 
important part of the CIA's efforts to meet the intelligence 
challenges of the next century in a financially responsible 
manner.
    Subsection (b) would allow the CIA to enter into multiyear 
leases beginning October 1, 1997.
            Section 402--CIA central services program
    Section 402 establishes a ``Central Services Program'' and 
its necessary working capital fund at the CIA. The Central 
Services Program will include a comprehensive program of 
services for the CIA, and potentially other federal agencies, 
that the Director of Central Intelligence determines can be 
performed more appropriately and advantageously than through 
other vendors. The Director of the Office of Management and 
Budget (``OMB'') must approve the inclusion of an enterprise 
within the Central Services Program prior to its participation. 
Section 402 also authorizes funds, not to exceed $5,000,000, to 
be appropriated for the working capital fund of the Central 
Services Program in fiscal year 1998. Provision is made for 
reimbursement from applicable appropriations and other 
authorized sources to recover the expenses of the fund's 
operations.
    The fund's purpose is to provide a ready source of funds to 
pay for equipment, salaries, maintenance, operation, and costs 
associated with the management of the Central Services Program, 
which the Committee is willing to support as a potential means 
of reducing government costs while improving services.
    The fund may impose a fee and retain a portion of net 
receipts, not to exceed four percent for: (1) the acquisition 
of capital equipment, and (2) the improvement, development, and 
implementation of information management services to include 
financial management and payroll/personnel systems. Use of 
retained income in fiscal years 1998, 1999, and 2000, may only 
be made with OMB approval, and after notification to the House 
and Senate Intelligence Committees.
    At the end of each fiscal year, any working capital that is 
excess to the efficient operation of the Fund (and to the 
amount of income retained, subject to the four percent limit) 
shall be transferred into the Treasury as miscellaneous 
receipts, after making provisions for prior year losses and 
expanded fund operations, if any.
    The legislation requires that an audit be conducted 
annually by the CIA Inspector General. The form and content of 
the audit is to be determined by OMB. In any event, however, 
the audit must include an itemized accounting of the central 
services provided, the cost of each service, the total receipts 
received, the agencies or departments serviced, and the amount 
of money returned to the U.S. Treasury. A copy of the audit is 
to be made available to the Intelligence Committees of the 
House and the Senate, to the OMB, and to the DCI.
    The Central Services Program is a pilot program and is thus 
scheduled for termination on March 31, 2000, unless 
reauthorized by an Act of Congress.
            Section 403--Protection of CIA facilities
    Section 403 expands the law enforcement jurisdiction of the 
CIA special police 500 feet beyond the confines of Agency 
facilities, and also onto the Federal Highway Administration 
(``FHWA'') property immediately adjacent to the CIA 
Headquarters Compound, subject to certain limits on the 
exercise of that law enforcement authority.
    This expanded authority is required to enable the CIA to 
respond effectively to an increasing threat of terrorist attack 
against Agency personnel and facilities. Under existing law, 
CIA special police officers lack authority to investigate 
suspicious activity near but outside the boundaries of CIA 
facilities.
    Currently, the CIA special police must call the local 
police to respond to a suspicious vehicle near a CIA facility. 
Local police response time varies, however. A delay could 
result in Agency personnel having little or no warning of the 
detonation of a bomb. This provision seeks to protect the CIA's 
rank and file employees from potential harm.
    With the authority provided under this section, the CIA 
special police could immediately investigate a threatening 
situation if presented with reasonable grounds to believe a 
threat to the CIA's employees or property existed. Such 
investigation would at least allow the CIA special police to 
decide if a sufficient threat existed to justify evacuation of 
CIA personnel. The CIA special police could also seek to 
question and identify an individual in the 500-foot zone or on 
the FHWA property they reasonably believed, based on specific 
and articulable facts, was surveilling an Agency facility as a 
precursor to a terrorist attack.
    Although the main rationale for the broader authority is to 
enable more effective response to terrorist threats, the 
authority would not be limited solely to countering such 
threats. The provision also would enable a special police 
officer to investigate (and, if allowable by law, detain) 
individuals or activities within the 500 foot zone, consistent 
with the law enforcement authorities of other federal police 
officers. The section does not change the special police 
officers' authority under current law to approach and, on a 
consensual basis, question and seek identification from 
individuals in the 500-foot zone or on the FHWA property.
    Section 403 does not, however, provide a statutory basis to 
patrol within the 500 foot zone. The Committee understands that 
CIA special police officers currently conduct such external 
perimeter patrols of the CIA Headquarters property pursuant to 
the authority granted the Director of Central Intelligence 
under Section 5 of the CIA Act of 1949. That statute does not 
authorize follow-up by the officers should the need arise. The 
Committee appreciates the need to continue such external 
perimeter patrols, but also understands the need to follow-up 
or investigate any potential criminal activity that likely 
threatens the CIA, its employees, or property. The Committee, 
however, in no way, envisions a general grant of police 
authority in the 500 foot zone of protection created by this 
legislation, but does intend that CIA special police officers 
can function as federal police within that 500 foot zone, with 
all attendant authorities, capabilities, immunities, and 
liabilities, when the need arises, for the limited purpose of 
protecting CIA employees and property. Any detentions or 
arrests executed by the special police shall only be for a 
limited duration (i.e., only long enough to turn the suspects 
over to the appropriate state, local, or federal law 
enforcement authorities).
    There would be several limits on the new authority. First, 
it is restricted to the open areas within 500 feet of a CIA 
facility, and to the FHWA property immediately adjacent to the 
CIA Headquarters Compound.
    Second, the authority can be exercised only where the CIA 
special police officer identifies specific and articulable 
facts giving the officer reason to believe that the exercise of 
such functions is necessary to protect the security of CIA 
installations, property, or employees. Thus, special police 
officers would not be authorized to issue traffic tickets in 
the 500-foot zone, or on the FHWA property. Also, once the 
special police officer does begin to investigate suspected 
criminal activity, the special police officer's actions must 
conform with the well-established legal standards in Terry v. 
Ohio, 392 U.S. 1 (1967), and its progeny, as to investigative 
stops of private citizens.
    Third, the new authority would not preclude or limit in any 
way the authority of any federal, state, or local law 
enforcement agency or of any other federal police orfederal 
protective service. The CIA will seek agreements with such other 
agencies and/or services as to the exercise of the new authority, 
including the statutory violations the CIA special police would plan to 
act on in the 500-foot zone or on the FHWA property. With regard to the 
FHWA property, the Agency's intent is to execute a formal agreement 
with the FHWA that addressed not only the statutory violations issue 
but also the broader range of operational, administrative, and 
transactional matters that would be presented by the new authority and 
interagency relationship.
    Finally, the Agency rules and regulations, including those 
enforced by criminal penalties, that apply within the CIA 
facilities are not extended into the 500-foot zone or to the 
FHWA property. This means, for example, as with current law, 
that individuals in the 500-foot zone outside CIA facilities 
would not be barred from having cameras or taking pictures of 
CIA facilities.

Title V: Department of Defense

            Section 501--Authority to award academic degree of bachelor 
                    of science in intelligence
    Section 501 amends Section 2161 of title 10, U.S.C., to 
show that the former Defense Intelligence School was renamed as 
the Joint Military Intelligence College (``JMIC''), in order to 
reflect the nature of the College as a joint institution of 
higher learning. The amendment also authorizes the President of 
the College to confer the undergraduate degree of Bachelor of 
Science in Intelligence (BSI) on graduates of the College who 
have fulfilled the requirements for that degree.
    The increasing complexity in the field of intelligence has 
created the need for a highly educated professional workforce. 
Although the need to broaden the intelligence knowledge of 
Intelligence Community professionals has been recognized in 
degree programs such as the Masters of Science of Strategic 
Intelligence (MSSI), the professional development of the 
Intelligence Community should not be limited to senior-level 
personnel. A substantial portion of the community is composed 
of intelligence personnel in the E-5 through E-9, warrant 
officer, and equivalent civilian grades. The Intelligence 
Community would benefit greatly by the addition of an 
undergraduate degree program designed to educate junior 
intelligence professionals. The Committee encourages the JMIC 
to admit to the BSI program those qualified individuals that 
provide intelligence support through their roles as Reservists 
within the various military departments.
    The BSI is a degree completion program developed by the 
Joint Military Intelligence College focusing on intelligence 
collection and analysis, providing an intelligence major for 
those who have completed the first three years of an 
undergraduate program. This is a cost-effective means of 
increasing the professional competence of a key segment of the 
Community. It also serves to underpin a coherent career 
development program which may include the MSSI.
    In his March 1996 Annual Report to the President and the 
Congress, the Secretary of Defense advised that the college was 
taking the steps necessary to acquire this additional degree 
granting authority. The BSI degree program enjoys wide support, 
which includes the Joint Military Intelligence College Board of 
Visitors, the Director of the Defense Intelligence Agency, and 
each of the Service intelligence organizations. As stated in 
the Department of Education report on the college's 
application, the program has already received informal support 
from the Middle States Association of Colleges and Schools, the 
accreditation authority for the Joint Military Intelligence 
College. The program has been fully piloted, reviewed, and 
approved by the U.S. Department of Education.

            Section 502--Unauthorized use of name, initials, or seal of 
                    National Reconnaissance Office
    Section 502 prohibits private organizations from publicly 
using the name and initials of the National Reconnaissance 
Office (NRO) to convey the misleading impression that their 
services were sponsored or endorsed by the NRO, except with the 
specific written permission of the Secretary of Defense, or 
Director, National Reconnaissance Office. The NRO became 
``public'' in September 1992. The Central Intelligence Agency 
and National Imagery and Mapping Agency currently have 
identical provisions prohibiting unauthorized use of their 
names, initials, and seals. See Section 13 of the CIA Act, 50 
U.S.C. Sec. 403m (CIA); 10 U.S.C. Sec. 445 (NIMA).

            Section 503--Extension of authority for enhancement of 
                    capabilities of certain army facilities
    Section 503 extends through the end of the fiscal year 
1999, the authority granted the Army in the Intelligence 
Authorization Act for Fiscal Year 1996 for the rectification of 
infrastructure and quality of life problems at Bad Aibling and 
Menwith Hill Stations. With respect to Bad Aibling Station, 
this authority is requested as an interim measure for 
contingency maintenance, pending any final decision on the 
status of the Station.
    The Army became the Executive Agent for Bad Aibling Station 
in fiscal year 1995 and Menwith Hill Station in fiscal year 
1996. Without Congressional action, the Army is prohibited by 
31 U.S.C. Sec. 1301 from using appropriated funds to support 
these field sites, notwithstanding that the Army is the 
Executive Agent for them. Language in the Intelligence 
Authorization Act for Fiscal Year 1996 provided the necessary 
flexibility to allow the Army to transfer or reprogram 
relatively minor amounts of funds (up to $2 million in fiscal 
year 1996 O&M and $2 million in fiscal year 1997 O&M funds) for 
necessary maintenance at these stations. Sufficient funding, 
however, has not been available to allow the Army to meet all 
of the stations' needs, given financial constraints and 
increasing operational tempo. Consequently, in order to 
continue addressing infrastructure and quality of life needs at 
Menwith Hill Station and to be able to meetcontingencies on an 
interim basis at Bad Aibling Station, the Committee extends the Army's 
flexible transfer and reprogramming authority through fiscal year 1999.

Title VI: Miscellaneous community program adjustments

            Section 601--coordination of armed forces information 
                    security programs
    Section 601. At present, service and defense agency 
Information System Security Program (ISSP) budgets appear to 
differ considerably in amount, thrust, and implementation. In 
the past, communication security focused on point to point 
traffic, minimizing the need to coordinate actions. In an age 
of networked communications, however, the weakest link can be 
exploited to the potential detriment of all. Therefore, 
coordination in planning and execution is critical. Currently, 
the services are required under National Security Directive 42 
to consult with the National Security Agency regarding their 
budgets. The Committee believes, however, that in the future, 
these programs and budgets must obtain the concurrence of the 
NSA, so that coordination and overall security may be 
maximized. Thus, the necessity for Section 601.
    Additionally, the Committee expects greater detail in 
Congressional Budget Justification Books regarding future 
service ISSP budget submissions, and expects that each of the 
services, and the head of any defense agency, will provide the 
NSA, and the Committee, with an itemization of the expenditure 
of funds authorized and appropriated for these purposes.
            Section 602--authority of executive agent of integrated 
                    broadcast service
    Section 602 directs that no current or future fiscal year 
funds for any intelligence or intelligence-related data 
broadcast system may be obligated or expended without consent 
of the Integrated Broadcast (IBS) Service Executive Agent.
            Section 603--predator unmanned aerial vehicle
    Section 603 directs that those functions with respect to 
the Predator unmanned aerial vehicle currently performed by the 
Unmanned Aerial Vehicle Joint Program Office are hereby 
transferred to the Air Force. Concurrently, all Predator 
funding within the Defense-wide Program Element 0305205D is 
transferred to the Air Force Program Element 0305154F.
            Section 604--U-2 sensor program
    Section 604 directs the Department of Defense to ensure 
that the U-2 reconnaissance aircraft's RAS-1 sensor suites are 
maintained at a constant operational inventory of 11 systems. 
This provision also requires the Department to maintain these 
systems in a manner consistent with threat technologies until 
the aircraft is retired or until a follow-on sensor suite is 
developed and fielded.
            Section 605--requirements relating to congressional budget 
                    justification books
    Section 605. The Congressional Budget Justifications Books 
(CBJBs) for the National Foreign Intelligence Program (NFIP) 
and the Congressional Justification Books (CJBs) for the Joint 
Military Intelligence Program (JMIP) and the Tactical 
Intelligence and Related Activities (TIARA) programs represent 
the official documentation provided yearly by the Community 
Management Staff (CMS) and the Defense Department to the 
Congress on the President's intelligence budget request. These 
documents provide the official budget numbers, by program, with 
which the Congress evaluates the President's proposed 
intelligence program and renders decisions on individual 
programs and policy matters.
    The Committee is concerned, however, that the current 
budget documents lack several critical components necessary for 
the Committee to ensure proper alignment of funding within the 
funding appropriations categories. Clear identification of each 
project; its specific budget request numbers; the appropriation 
category (e.g., Other Procurement, Defense-wide; RDT&E, Navy; 
etc.); the budget request line number, and if a research and 
development project, the Program Element number essential to 
this task. Further, the Committee requires a detail accounting 
of all program reprogramming/reallocation actions including the 
distribution of all Congressional adds and their status, where 
unallocated cuts/taxes were taken, and identification of total 
program costs (such as aircraft or spacecraft and associated 
ground station costs including systems engineering/systems 
integration costs and operations support). Therefore, the 
Committee directs the CMS and the Defense Department to provide 
this specific data in all future budget justification 
documents.
    Finally, the Committee is also concerned that past and 
current request documents have not consistently shown all 
direct and associated funds requests for intelligence programs. 
Research and development costs in the Defense Cryptologic 
Program, for example, are not identified specifically with the 
programs that are the direct beneficiaries. Also, operations 
and maintenance costs are often carried in a service's total 
obligation authority and not specifically identified in the 
CJBs. The Committee cannot fully understand the magnitude of 
budgetary actions without fully and clearly understanding all 
the costs of a program. Therefore, the Committee directs that 
in future CBJBs and CJBs all direct and associated costs, in 
each budgetary category (e.g., procurement, research and 
development, operations and maintenance, military construction, 
etc.) be clearly and completely provided in each program 
request.
            Section 606--joint SIGINT program office
    Section 606 directs the Air Force Joint Airborne Signals 
Intelligence (SIGINT) Program Office to coordinate with the 
affected military service headquarters prior to modifying any 
ongoing Joint SIGINT Avionics Family (JSAF) contract and/or 
before contracting for new (JSAF) developments that may 
directly affect the services' operational satisfaction of 
intelligence requirements.
            Section 607--discontinuation of the Defense Space 
                    Reconnaissance Program
    Section 607 mandates the discontinuation of the Defense 
Space Reconnaissance Program, a program within the Joint 
Military Intelligence Program, and the termination of the 
Defense Space Program Office beginning with the fiscal year 
1999.
            Section 608--Defense Airborne Reconnaissance Office
    Section 608 directs that the Defense Airborne 
Reconnaissance Office, chartered as a Defense Organization 
under the Under Secretary of Defense (Acquisition and 
Technology) be abolished. The oversight functions of this 
office are transferred to the Director, Defense Intelligence 
Agency.

                           Committee Position

    On June 5, 1997, the Permanent Select Committee on 
Intelligence, a quorum being present, approved the bill, as 
amended by an amendment in the nature of a substitute, and, by 
a recorded vote of 15 ayes to 0 noes, ordered the bill, as 
amended, favorably reported. On that vote the Members present 
recorded their votes as follows:
          Mr. Goss (Chairman)--aye; Mr. Lewis--aye; Mr. 
        Shuster--aye; Mr. McCollum--aye; Mr. Castle--aye; Mr. 
        Boehlert--aye; Mr. Bass--aye; Mr. Gibbons--aye; Mr. 
        Dicks--aye; Mr. Dixon--aye; Mr. Skaggs--aye; Ms. 
        Pelosi--aye; Ms. Harmon--aye; Mr. Skelton--aye; Mr. 
        Bishop--aye.

Findings and Recommendations of the Committee on Government Reform and 
                               Oversight

    With respect to clause 2(l)(3)(A) of rule XI of the House 
of Representatives, the Committee has not received a report 
from the Committee on Government Reform and Oversight 
pertaining to the subject of this bill.

                           Oversight Findings

    With respect to clause 2(l)(3)(A) of rule XI of the Rules 
of the House of Representatives, the Committee held 9 hearings, 
as well as a number of briefings, on the classified 
legislative, personnel, programmatic, and budgetary issues 
raised by H.R. 1775. Testimony was taken from the Acting 
Director of Central Intelligence, the Director of the National 
Security Agency, the Director of the Defense Intelligence 
Agency, numerous program managers, and various other 
knowledgeable witnesses on the activities and plans of the 
Intelligence Community covered by the provisions and 
authorizations, both classified and unclassified, of the 
Intelligence Authorization Act for Fiscal Year 1998. The bill, 
as reported by the Committee, reflects conclusions reached by 
the Committee in light of that oversight activity.

                      Fiscal Year Cost Projections

    The Committee has attempted, pursuant to clause 7(a) of 
rule XIII of the Rules of the House of Representatives, to 
ascertain the outlays that will occur in fiscal year 1998 and 
the five years following if the amounts authorized are 
appropriated. These estimates are contained in the classified 
annex and are in accordance with those of the executive branch.

                 Congressional Budget Office Estimates

    In compliance with clause 2(l)(3)(B) and (C) of rule XI of 
the Rules of the House of Representatives, and pursuant to 
sections 308 and 403 of the Congressional Budget Act of 1974, 
the Committee submits the following estimate prepared by the 
Congressional Budget Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 12, 1997.
Hon. Porter J. Goss,
Chairman, Permanent Select Committee on Intelligence,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1775, the 
Intelligence Authorization Act for Fiscal Year 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Dawn Sauter.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 1775--Intelligence Authorization Act for fiscal year 1998

    Summary.--H.R. 1775 would authorize appropriations for 
fiscal year 1998 for intelligence activities of the United 
States government, the Community Management Account, and the 
Central Intelligence Agency Retirement and Disability System 
(CIARDS).
    This estimate addresses only the unclassified portion of 
the bill. On that limited basis, CBO estimates that enacting 
H.R. 1775 would result in additional spending of $153 million 
over the 1998-2002 period, assuming appropriation of the 
authorized amounts. The unclassified portion of the bill would 
not affect direct spending or receipts in 1998; thus pay-as-
you-go procedures would not apply to it. The Unfunded Mandates 
Reform Act (UMRA) excludes from application of the act 
legislative provisions that are necessary for the national 
security. CBO has determined that all of the provisions of this 
bill either fit within that exclusion or do not contain 
intergovernmental mandates as defined by UMRA.
    Estimated cost to the Federal Government.--The estimated 
budgetary effect of H.R. 1775 is shown in the following table. 
CBO was unable to obtain the necessary information to estimate 
the costs for the entire bill because parts are classified at a 
level above clearances held by CBO employees. The estimated 
costs, therefore, reflect only the costs of the unclassified 
portion of the bill.
    The bill would authorize appropriations of $148 million for 
the Community Management Account and $5 million to capitalize a 
new revolving fund for equipment, salaries, maintenance, 
operations, and other expenses. In addition, the bill would 
authorize $197 million for CIARDS to cover retirement costs 
attributable to military service andvarious unfunded 
liabilities. The payment to CIARDS is considered mandatory, and the 
authorization under this bill would be the same as assumed in the CBO 
baseline.
    For purposes of this estimate, CBO assumed that H.R. 1775 
will be enacted by October 1, 1997, and that the full amounts 
authorized will be appropriated for fiscal year 1998. Outlays 
are estimated according to historical spending patterns for 
intelligence programs.

                                     [By fiscal year in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
Spending under current law:                                                                                     
    Estimated authorization level <SUP>1.......................      102        0        0        0        0        0
    Estimated outlays.....................................       95       46       22        5        0        0
Proposed changes:                                                                                               
    Estimated authorization level.........................        0      153        0        0        0        0
    Estimated outlays.....................................        0       85       38       22        7        0
Spending under H.R. 1775:                                                                                       
    Estimated authorization level <SUP>1.......................      102      153        0        0        0        0
    Estimated outlays.....................................       95      131       60       27        7       0 
----------------------------------------------------------------------------------------------------------------
Note: The costs of this legislation would fall within budget function 050 (national defense).                   
<SUP>1 The 1997 level is the amount appropriated for that year.                                                      

    Pay-as-you-go consideration.--None.
    Intergovernmental and private-sector impact.--The Unfunded 
Mandates Reform Act (UMRA) excludes from application of the act 
legislative provisions that are necessary for the national 
security. CBO has determined that all of the provisions of this 
bill either fit within that exclusion or do not contain 
intergovernmental mandates as defined by UMRA.
    Estimated prepared by.--Federal Cost: Dawn Sauter. Impact 
on State, Local, and Tribal Governments: Pepper Santalucia. 
Impact on the Private Sector: Eric Labs.
    Estimate approved by.--Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                        Committee Cost Estimates

    The Committee agrees with the estimate of the Congressional 
Budget Office.

 Specific Constitutional Authority for Congressional Enactment of this 
                              Legislation

    The intelligence and intelligence-related activities of the 
United States government are carried out to support the 
national security interests of the United States, to support 
and assist the armed forces of the United States, and to 
support the President in the execution of the foreign policy of 
the United States. Article I, section 8, of the Constitution of 
the United States provides, in pertinent part, that ``Congress 
shall have power . . . to pay the debts and provide for the 
common defence and general welfare of the United States; . . . 
``; ``to raise and support Armies,. . . ``; ``to provide and 
maintain a Navy; . . . `` and ``to make all laws which shall be 
necessary and proper for carrying into execution . . . all 
other powers vested by this Constitution in the Government of 
the United States, or in any Department or Officer thereof.'' 
Therefore, pursuant to such authority, Congress is empowered to 
enact this legislation.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italics, existing law in which no change is proposed 
is shown in roman):

                     NATIONAL SECURITY ACT OF 1947

          * * * * * * *

                            TABLE OF CONTENTS

     * * * * * * *

               Title I--Coordination for National Security

     * * * * * * *
[Sec. 110. Restrictions on intelligence sharing with the United Nations.
[Sec. 120. National mission of National Imagery and Mapping Agency.
[Sec. 121. Collection tasking authority.]
Sec. 110. National mission of National Imagery and Mapping Agency.
Sec. 111. Collection tasking authority.
Sec. 112. Restrictions on intelligence sharing with the United Nations.
Sec. 113. Detail of intelligence community personnel--intelligence 
          community assignment program .
          * * * * * * *

              TITLE I--COORDINATION FOR NATIONAL SECURITY

          * * * * * * *

             office of the director of central intelligence

  Sec. 102. (a)  * * *
          * * * * * * *
  (e) Office of the Director of Central Intelligence.--(1) * * 
*
          * * * * * * *
  (4) The Office of the Director of Central Intelligence shall, 
for administrative purposes, be within the Central Intelligence 
Agency.
          * * * * * * *

        national mission of national imagery and mapping agency

  Sec. [120] 110. (a) In General.--In addition to the 
Department of Defense missions set forth in section 442 of 
title 10, United States Code, the National Imagery and Mapping 
Agency shall support the imagery requirements of the Department 
of State and other departments and agencies of the United 
States outside the Department of Defense.
  (b) Requirements and Priorities.--The Director of Central 
Intelligence shall establish requirements and priorities 
governing the collection of national intelligence by the 
National Imagery and Mapping Agency under subsection (a).
  (c) Correction of Deficiencies.--The Director of Central 
Intelligence shall develop and implement such programs and 
policies as the Director and the Secretary of Defense jointly 
determine necessary to review and correct deficiencies 
identified in the capabilities of the National Imagery and 
Mapping Agency to accomplish assigned national missions, 
including support to the all-source analysis and production 
process. The Director shall consult with the Secretary of 
Defense on the development and implementation of such programs 
and policies. The Secretary shall obtain the advice of the 
Chairman of the Joint Chiefs of Staff regarding the matters on 
which the Director and the Secretary are to consult under the 
preceding sentence.

                      collection tasking authority

  Sec. [121] 111. Unless otherwise directed by the President, 
the Director of Central Intelligence shall have authority 
(except as otherwise agreed by the Director and the Secretary 
of Defense) to--
          (1) approve collection requirements levied on 
        national imagery collection assets;
          (2) determine priorities for such requirements; and
          (3) resolve conflicts in such priorities.

      restrictions on intelligence sharing with the united nations

    Sec. [110] 112. (a) Provision of Intelligence Information 
to the United Nations.--(1) No United States intelligence 
information may be provided to the United Nations or any 
organization affiliated with the United Nations, or to any 
officials or employees thereof, unless the President certifies 
to the appropriate committees of Congress that the Director of 
Central Intelligence, in consultation with the Secretary of 
State and the Secretary of Defense, has established and 
implemented procedures, and has worked with the United Nations 
to ensure implementation of procedures, for protecting from 
unauthorized disclosure United States intelligence sources and 
methods connected to such information.
  (2) Paragraph (1) may be waived upon written certification by 
the President to the appropriate committees of Congress that 
providing such information to the United Nations or an 
organization affiliated with the United Nations, or to any 
officials or employees thereof, is in the national security 
interests of the United States.
  (b) Periodic and Special Reports.--(1) The President shall 
report semiannually to the appropriate committees of Congress 
on the types and volume of intelligence provided to the United 
Nations and the purposes for which it was provided during the 
period covered by the report. The President shall also report 
to the appropriate committees of Congress within 15 days after 
it has become known to the United States Government that there 
has been an unauthorized disclosure of intelligence provided by 
the United States to the United Nations.
  (2) The requirement for periodic reports under the first 
sentence of paragraph (1) shall not apply to the provision of 
intelligence that is provided only to, and for the use of, 
appropriately cleared United States Government personnel 
serving with the United Nations.
  (c) Delegation of Duties.--The President may not delegate or 
assign the duties of the President under this section.
  (d) Relationship to Existing Law.--Nothing in this section 
shall be construed to--
          (1) impair or otherwise affect the authority of the 
        Director of Central Intelligence to protect 
        intelligence sources and methods from unauthorized 
        disclosure pursuant to section 103(c)(6) of this Act; 
        or
          (2) supersede or otherwise affect the provisions of 
        title V of this Act.
  (e) Definition.--As used in this section, the term 
``appropriate committees of Congress'' means the Committee on 
Foreign Relations and the Select Committee on Intelligence of 
the Senate and the Committee on Foreign Relations and the 
Permanent Select Committee on Intelligence of the House of 
Representatives.


  detail of intelligence community personnel--intelligence community 
                           assignment program


  Sec. 113. (a) Detail.--(1) Notwithstanding any other 
provision of law, the head of a department with an element in 
the intelligence community or the head of an intelligence 
community agency or element may detail any employee within that 
department, agency, or element to serve in any position in the 
Intelligence Community Assignment Program on a reimbursable or 
a nonreimbursable basis.
  (2) Nonreimbursable details may be for such periods as are 
agreed to between the heads of the parent and host agencies, up 
to a maximum of three years, except that such details may be 
extended for a period not to exceed 1 year when the heads of 
the parent and host agencies determine that such extension is 
in the public interest.
  (b) Benefits, Allowances, Travel, Incentives.--An employee 
detailed under subsection (a) may be authorized any benefit, 
allowance, travel, or incentive otherwise provided to enhance 
staffing by the organization from which they are being 
detailed.
  (c) Annual Report.--(1) Not later than March 1 of each year, 
the Director of the Central Intelligence Agency shall submit to 
the Permanent Select Committee on Intelligence of the House of 
Representatives and the Select Committee on Intelligence of the 
Senate a report describing the detail of intelligence community 
personnel pursuant to subsection (a) for the previous 12-month 
period, including the number of employees detailed, the 
identity of parent and host agencies or elements, and an 
analysis of the benefits of the program.
  (2) The Director shall submit the first of such reports not 
later than March 1, 1999.
  (d) Termination.--The authority to make details under this 
section terminates on September 30, 2002.
          * * * * * * *

   TITLE IX--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES

          * * * * * * *
  Sec. 905. This title shall cease to be effective on January 
6, [1998] 1999.
                              ----------                              


                CENTRAL INTELLIGENCE AGENCY ACT OF 1949

          * * * * * * *

                          general authorities

  Sec. 5. (a) In the performance of its functions, the Central 
Intelligence Agency is authorized to--
  [(a)] (1) Transfer to and receive from other Government 
agencies such sums as may be approved by the Office of 
Management and Budget, for the performance of any of the 
functions or activities authorized under subparagraphs (B) and 
(C) of section 102(a)(2), subsections (c)(5) and (d) of section 
103, subsections (a) and (g) of section 104, and section 303 of 
the National Security Act of 1947 (50 U.S.C. 403(a)(2), 403-3, 
403-4, and 405), and any other Government agency is authorized 
to transfer to or receive from the Agency such sums without 
regard to any provisions of law limiting or prohibiting 
transfers between appropriations. Sums transferred to the 
Agency in accordance with this paragraph may be expended for 
the purposes and under the authority of this Act without regard 
to limitations of appropriations from which transferred;
  [(b)] (2) Exchange funds without regard to section 3651 
Revised Statutes (31 U.S.C. 543);
  [(c)] (3) Reimburse other Government agencies for services of 
personnel assigned to the Agency, and such other Government 
agencies are hereby authorized, without regard to provisions of 
law to the contrary, so to assign or detail any officer or 
employee for duty with the Agency;
  [(d)] (4) Authorize personnel designated by the Director to 
carry firearms to the extent necessary for the performance of 
the Agency's authorized functions, except that, within the 
United States, such authority shall be limited to the purposes 
of protection of classified materials and information, the 
training of Agency personnel and other authorized persons in 
the use of firearms, the protection of Agency installations and 
property, and the protection of Agency personnel and of 
defectors, their families, and other persons in the United 
States under Agency auspices;
  [(e)] (5) Make alterations, improvements, and repairs on 
premises rented by the Agency, and pay rent therefor without 
regard to limitations on expenditures contained in the Act of 
June 30, 1932, as amended: Provided, That in each case the 
Director shall certify that exception from such limitations is 
necessary to the successful performance of the Agency's 
functions or to the security of its activities; [and]
  [(f)] (6) Determine and fix the minimum and maximum limits of 
age within which an original appointment may be made to an 
operational position within the Agency, notwithstanding the 
provision of any other law, in accordance with such criteria as 
the Director, in his discretion, may prescribe[.]; and
  (7) Notwithstanding section 1341(a)(1) of title 31, United 
States Code, enter into multiyear leases for up to 15 years 
that are not otherwise authorized pursuant to section 8 of this 
Act.
  (b)(1) The authority to enter into a multiyear lease under 
subsection (a)(7) shall be subject to appropriations provided 
in advance for (A) the entire lease, or (B) the first 12 months 
of the lease and the Government's estimated termination 
liability.
  (2) In the case of any such lease entered into under clause 
(B) of paragraph (1)--
          (A) such lease shall include a clause that provides 
        that the contract shall be terminated if budget 
        authority (as defined by section 3(2) of the 
        Congressional Budget and Impoundment Control Act of 
        1974 (2 U.S.C. 622(2))) is not provided specifically 
        for that project in an appropriations Act in advance of 
        an obligation of funds in respect thereto;
          (B) notwithstanding section 1552 of title 31, United 
        States Code, amounts obligated for paying termination 
        costs in respect of such lease shall remain available 
        until the costs associated with termination of such 
        lease are paid;
          (C) funds available for termination liability shall 
        remain available to satisfy rental obligations in 
        respect of such lease in subsequent fiscal years in the 
        event such lease is not terminated early, but only to 
        the extent those funds are in excess of the amount of 
        termination liability in that subsequent year; and
          (D) annual funds made available in any fiscal year 
        may be used to make payments on such lease for a 
        maximum of 12 months beginning any time during the 
        fiscal year.
          * * * * * * *

               security personnel at agency installations

  Sec. 15. (a)(1) The Director may authorize Agency personnel 
within the United States to perform the same functions as 
special policemen of the General Services Administration 
perform under the first section of the Act entitled ``An Act to 
authorize the Federal Works Administrator or officials of the 
Federal Works Agency duly authorized by him to appoint special 
policemen for duty upon Federal property under the jurisdiction 
of the Federal Works Agency, and for other purposes'' (40 
U.S.C. 318), with the powers set forth in that section, except 
that such personnel shall perform such functions and exercise 
such [powers only within Agency installations, and the rules 
and regulations enforced by such personnel shall be rules and 
regulations promulgated by the Director.] powers--
          (A) within the Agency Headquarters Compound and the 
        property controlled and occupied by the Federal Highway 
        Administration located immediately adjacent to such 
        Compound and in the streets, sidewalks, and the open 
        areas within the zone beginning at the outside boundary 
        of such Compound and property and extending outward 500 
        feet; and
          (B) within any other Agency installation and in the 
        streets, sidewalks, and open areas within the zone 
        beginning at the outside boundary of any such 
        installation and extending outward 500 feet.
  (2) The performance of functions and exercise of powers under 
paragraph (1) shall be limited to those circumstances where 
such personnel can identify specific and articulable facts 
giving such personnel reason to believe that their performance 
of such functions and exercise of such powers is reasonable to 
protect against physical attack or threats of attack upon the 
Agency installations, property, or employees.
  (3) Nothing in this subsection shall be construed to 
preclude, or limit in any way, the authority of any Federal, 
State, or local law enforcement agency or of any other Federal 
police or Federal protective service.
  (4) The rules and regulations enforced by such personnel 
shall be the rules and regulations promulgated by the Director 
and shall only be applicable to the areas referred to in 
paragraph (1).
  (5) On December 1, 1998, and annually thereafter, the 
Director shall submit a report to the Permanent Select 
Committee on Intelligence of the House of Representatives and 
the Select Committee on Intelligence of the Senate that 
describes in detail the exercise of the authority granted by 
this subsection, and the underlying facts supporting the 
exercise of such authority, during the preceding fiscal year. 
The Director shall make such report available to the Inspector 
General of the Agency.
          * * * * * * *


                        central services program


  Sec. 21. (a) Establishment.--The Director may--
          (1) establish a program to provide the central 
        services described in subsection (b)(2); and
          (2) make transfers to and expenditures from the 
        working capital fund established under subsection 
        (b)(1).
  (b) Establishment and Purposes of Central Services Working 
Capital Fund.--(1) There is established a central services 
working capital fund. The Fund shall be available until 
expended for the purposes described in paragraph (2), subject 
to subsection (j).
  (2) The purposes of the Fund are to pay for equipment, 
salaries, maintenance, operation and other expenses for such 
services as the Director, subject to paragraph (3), determines 
to be central services that are appropriate and advantageous to 
provide to the Agency or to other Federal agencies on a 
reimbursable basis.
  (3) The determination and provision of central services by 
the Director of Central Intelligence under paragraph (2) shall 
be subject to the prior approval of the Director of the Office 
of Management and Budget.
  (c) Assets in Fund.--The Fund shall consist of money and 
assets, as follows:
          (1) Amounts appropriated to the Fund for its initial 
        monetary capitalization.
          (2) Appropriations available to the Agency under law 
        for the purpose of supplementing the Fund.
          (3) Such inventories, equipment, and other assets, 
        including inventories and equipment on order, 
        pertaining to the services to be carried on by the 
        central services program.
          (4) Such other funds as the Director is authorized to 
        transfer to the Fund.
  (d) Limitations.--(1) The total value of orders for services 
described in subsection (b)(2) from the central services 
program at any time shall not exceed an annual amount approved 
in advance by the Director of the Office of Management and 
Budget.
  (2) No goods or services may be provided to any non-Federal 
entity by the central services program.
  (e) Reimbursements to Fund.--Notwithstanding any other 
provision of law, the Fund shall be--
          (1) reimbursed, or credited with advance payments, 
        from applicable appropriations and funds of the Agency, 
        other Intelligence Community agencies, or other Federal 
        agencies, for the central services performed by the 
        central services program, at rates that will recover 
        the full cost of operations paid for from the Fund, 
        including accrual of annual leave, workers' 
        compensation, depreciation of capitalized plant and 
        equipment, and amortization of automated data 
        processing software; and
          (2) if applicable credited with the receipts from 
        sale or exchange of property, including any real 
        property, or in payment for loss or damage to property, 
        held by the central services program as assets of the 
        Fund.
  (f) Retention of Portion of Fund Income.--(1) The Director 
may impose a fee for central services provided from the Fund. 
The fee for any item or service provided under the central 
services program may not exceed four percent of the cost of 
such item or service.
  (2) As needed for the continued self-sustaining operation of 
the Fund, an amount not to exceed four percent of the net 
receipts of the Fund in fiscal year 1998 and each fiscal year 
thereafter may be retained, subject to subsection (j), for the 
acquisition of capital equipment and for the improvement and 
implementation of the Agency's information management systems 
(including financial management, payroll, and personnel 
information systems). Any proposed use of the retained income 
in fiscal years 1998, 1999, and 2000, shall only be made with 
the approval of the Director of the Office of Management and 
Budget and after notification to the Permanent Select Committee 
on Intelligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate.
  (3) Not later than 30 days after the close of each fiscal 
year, amounts in excess of the amount retained under paragraph 
(2) shall be transferred to the United States Treasury.
  (g) Audit.--(1) The Inspector General of the Central 
Intelligence Agency shall conduct and complete an audit of the 
Fund within three months after the close of each fiscal year. 
The Director of the Office of Management and Budget shall 
determine the form and content of the audit, which shall 
include at least an itemized accounting of the central services 
provided, the cost of each service, the total receipts 
received, the agencies or departments serviced, and the amount 
returned to the United States Treasury.
  (2) Not later than 30 days after the completion of the audit, 
the Inspector General shall submit a copy of the audit to the 
Director of the Office of Management and Budget, the Director 
of Central Intelligence, the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate.
  (h) Definitions.--For purposes of this section--
          (1) the term ``central services program'' means the 
        program established under subsection (a); and
          (2) the term ``Fund'' means the central services 
        working capital fund established under subsection 
        (b)(1).
  (i) Authorization of Appropriations.--There is authorized to 
be appropriated to the Fund $5,000,000 for the purposes 
specified in subsection (b)(2).
  (j) Termination.--(1) The Fund shall terminate on March 31, 
2000, unless otherwise reauthorized by an Act of Congress prior 
to that date.
  (2) Subject to paragraph (1) and after providing notice to 
the Permanent Select Committee on Intelligence of the House of 
Representatives and the Select Committee on Intelligence of the 
Senate, the Director of Central Intelligence and the Director 
of the Office of Management and Budget--
          (A) may terminate the central services program and 
        the Fund at any time; and
          (B) upon any such termination, shall provide for 
        dispositions of personnel, assets, liabilities, grants, 
        contracts, property, records, and unexpended balances 
        of appropriations, authorizations, allocations, and 
        other funds held, used, arising from, available to, or 
        to be made available in connection with such Fund, as 
        may be necessary.
                              ----------                              


                      TITLE 10, UNITED STATES CODE

          * * * * * * *

                    Subtitle A--General Military Law

          * * * * * * *

            PART I--ORGANIZATION AND GENERAL MILITARY POWERS

          * * * * * * *

 CHAPTER 8--DEFENSE AGENCIES AND DEPARTMENT OF DEFENSE FIELD ACTIVITIES

          * * * * * * *

          SUBCHAPTER II--MISCELLANEOUS DEFENSE AGENCY MATTERS

Sec.
201.  Certain intelligence officials: consultation and concurrence 
          regarding appointments; evaluation of performance.
[202.  Unauthorized use of Defense Intelligence Agency name, initials, 
          or seal.]
          * * * * * * *

[Sec. 202. Unauthorized use of Defense Intelligence Agency name, 
                    initials, or seal

  [(a) No person may, except with the written permission of the 
Secretary of Defense, knowingly use the words ``Defense 
Intelligence Agency'', the initials ``DIA'', the seal of the 
Defense Intelligence Agency, or any colorable imitation of such 
words, initials or seal in connection with any merchandise, 
impersonation, solicitation, or commercial activity in a manner 
reasonably calculated to convey the impression that such use is 
approved, endorsed, or authorized by the Secretary of Defense.
  [(b) Whenever it appears to the Attorney General that any 
person is engaged or is about to engage in an act or practice 
which constitutes or will constitute conduct prohibited by 
subsection (a), the Attorney General may initiate a civil 
proceeding in a district court of the United States to enjoin 
such act or practice. Such court shall proceed as soon as 
practicable to the hearing and determination of such act on and 
may, at any time before final determination, enter such 
restraining orders or prohibitions, or take such other actions 
as is warranted, to prevent injury to the United States or to 
any person or class of persons for whose protection the action 
is brought.]
          * * * * * * *

         CHAPTER 21--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

          * * * * * * *

                     SUBCHAPTER I--GENERAL MATTERS

Sec.
421.  Funds for foreign cryptologic support.
     * * * * * * *
[424.  Disclosure of organizational and personnel information: exemption 
          for Defense Intelligence Agency.
[425.  Disclosure of personnel information: exemption for National 
          Reconnaissance Office.]
424.  Disclosure of organizational and personnel information: exemption 
          for Defense Intelligence Agency, National Reconnaissance 
          Office, and National Imagery and Mapping Agency.
425.  Prohibition of unauthorized use of name, initials, or seal: 
          specified intelligence agencies.
          * * * * * * *

Sec. 425. Prohibition of unauthorized use of name, initials, or seal: 
                    specified intelligence agencies

  (a) Prohibition.--Except with the written permission of the 
Secretary of Defense, no person may knowingly use, in 
connection with any merchandise, retail product, impersonation, 
solicitation, or commercial activity in a manner reasonably 
calculated to convey the impression that such use is approved, 
endorsed, or authorized by the Secretary of Defense, any of the 
following (or any colorable imitation thereof):
          (1) The words ``Defense Intelligence Agency'', the 
        initials ``DIA'', or the seal of the Defense 
        Intelligence Agency.
          (2) The words ``National Reconnaissance Office'', the 
        initials ``NRO'', or the seal of the National 
        Reconnaissance Office.
          (3) The words ``National Imagery and Mapping 
        Agency'', the initials ``NIMA'', or the seal of the 
        National Imagery and Mapping Agency.
          (4) The words ``Defense Mapping Agency'', the 
        initials ``DMA'', or the seal of the Defense Mapping 
        Agency.
  (b) Authority To Enjoin Violations.--Whenever it appears to 
the Attorney General that any person is engaged or is about to 
engage in an act or practice which constitutes or will 
constitute conduct prohibited by subsection (a), the Attorney 
General may initiate a civil proceeding in a district court of 
the United States to enjoin such act or practice. Such court 
shall proceed as soon as practicable to the hearing and 
determination of such action and may, at any time before final 
determination, enter such restraining orders or prohibitions, 
or take such other actions as is warranted, to prevent injury 
to the United States or to any person or class of persons for 
whose protection the action is brought.
          * * * * * * *

            CHAPTER 22--NATIONAL IMAGERY AND MAPPING AGENCY

          * * * * * * *

                  SUBCHAPTER I--MISSIONS AND AUTHORITY

Sec.
441.  Establishment.
     * * * * * * *
[445.  Protection of agency identifications and organizational 
          information.]
     * * * * * * *

[Sec. 445. Protection of agency identifications and organizational 
                    information

  [(a) Unauthorized Use of Agency Name, Initials, or Seal.--(1) 
Except with the written permission of the Secretary of Defense, 
no person may knowingly use, in connection with any 
merchandise, retail product, impersonation, solicitation, or 
commercial activity in a manner reasonably calculated to convey 
the impression that such use is approved, endorsed, or 
authorized by the Secretary of Defense, any of the following:
          [(A) The words ``National Imagery and Mapping 
        Agency'', the initials ``NIMA'', or the seal of the 
        National Imagery and Mapping Agency.
          [(B) The words ``Defense Mapping Agency'', the 
        initials ``DMA'', or the seal of the Defense Mapping 
        Agency.
          [(C) Any colorable imitation of such words, initials, 
        or seals.
  [(2) Whenever it appears to the Attorney General that any 
person is engaged or about to engage in an act or practice 
which constitutes or will constitute conduct prohibited by 
paragraph (1), the Attorney General may initiate a civil 
proceeding in a district court of the United States to enjoin 
such act or practice. Such court shall proceed as soon as 
practicable to a hearing and determination of such action and 
may, at any time before such final determination, enter such 
restraining orders or prohibitions, or take such other action 
as is warranted, to prevent injury to the United States or to 
any person or class of persons for whose protection the action 
is brought.]
          * * * * * * *

                    PART III--TRAINING AND EDUCATION

          * * * * * * *

               CHAPTER 108--DEPARTMENT OF DEFENSE SCHOOLS

Sec.
[2161.  Defense Intelligence School: master of science of strategic 
          intelligence.]
2161.  Joint Military Intelligence College: academic degrees.
     * * * * * * *

[Sec. 2161. Defense Intelligence School: master of science of strategic 
                    intelligence

  [Under regulations prescribed by the Secretary of Defense, 
the Commandant of the Defense Intelligence School may, upon 
recommendation by the faculty of such school, confer the degree 
of master of science of strategic intelligence upon graduates 
of the school who have fulfilled the requirements for that 
degree.]

Sec. 2161. Joint Military Intelligence College: academic degrees

  Under regulations prescribed by the Secretary of Defense, the 
president of the Joint Military Intelligence College may, upon 
recommendation by the faculty of the college, confer upon a 
graduate of the college who has fulfilled the requirements for 
the degree the following:
          (1) The degree of Master of Science of Strategic 
        Intelligence (MSSI).
          (2) The degree of Bachelor of Science in Intelligence 
        (BSI).
          * * * * * * *
                              ----------                              


   SEC 506 OF THE INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1996

SEC. 506. ENHANCEMENT OF CAPABILITIES OF CERTAIN ARMY FACILITIES.

  (a) * * *
  (b) Source of Funds.--Funds available for the Army for 
operations and maintenance for fiscal years [1996 and 1997] 
1998 and 1999 shall be available to carry out subsection (a).
          * * * * * * *
                             MINORITY VIEWS

    For the most part, we are supportive of the bill as 
reported. We do, however, have concerns about the effect 
several actions taken in the bill would have on activities 
within the National Reconnaissance Program. These concerns are 
described fully in the classified annex to this report. We only 
note here our hope that, with respect to the classified 
matters, as well as the provision in the bill that affects the 
Defense Airborne Reconnaissance Office discussed below, the 
time remaining before conference with the Senate can be used to 
develop a solid record which will provide a clear justification 
for whatever actions are ultimately to be recommended in the 
conference report.
    Section 608 of the bill directs the termination of the 
Defense Airborne Reconnaissance Office (DARO) within the 
Department of Defense. Curtailed Defense Airborne 
Reconnaissance Program (DARP) management responsibilities would 
be transferred to the Director of the Defense Intelligence 
Agency. Under this proposal, however, acquisition authorities 
would revert to the services with the DARP manager playing only 
a coordinating role.
    DARO was created in 1993, at least in part in response to 
urgings by the Congress, to coordinate the airborne 
reconnaissance activities of the department. In its brief 
history, DARO has experienced success in promoting 
interoperability in the programs it oversees and in eliminating 
costly duplication in research, development, test, and 
evaluation activities. In 1996, when another congressional 
committee recommended DARO's termination, then Secretary of 
Defense Perry strongly and successfully opposed that 
recommendation.
    We acknowledge that, as part of the effort to streamline 
the operation of the Office of the Secretary of Defense, it may 
be necessary to disestablish some entities within the 
Department of Defense. Secretary Cohen has appointed a Defense 
Reform Task Force to review the functioning of his office, 
departmental agencies and field activities. The report of the 
task force is due by the end of November. We believe that any 
action to terminate a departmental agency or office in advance 
of the report by this task force should be based on extremely 
compelling evidence. No such evidence with respect to DARO was 
presented to us during the committee's hearings on the 
intelligence budget for fiscal year 1998. In fact, not a single 
witness advocated the termination of DARO and, when asked in a 
question for the record, ``Under what conditions, if any, would 
the Department decide that the DARO is no longer necessary?'' 
Defense Department officials replied ``The Department supports 
the role of the DARO and has no plans to make such a 
decision.'' Secretary Perry's 1996 opposition to the 
termination of DARO remains unchallenged within the executive 
branch and, in fact, was reinforced by a June 4, 1997 letter to 
the committee's ranking Democrat by the Acting Undersecretary 
of Defense for Acquisition and Technology, Noel Longuemare:
                            The Under Secretary of Defense,
                                      Washington, DC, June 4, 1997.
Hon. Norman D. Dicks,
Ranking Minority Member,
Permanent Select Committee on Intelligence,
House of Representatives, Washington, DC.
    Dear Mr. Dicks: I want to convey my strongest support for 
the Defense Airborne Reconnaissance Office (DARO). We 
absolutely need a single focal point to coordinate all the 
diverse airborne reconnaissance activities underway within the 
Department. As was mentioned in the May 1997 Quadrennial 
Defense Review, the modernization of our forces depends upon a 
strong backbone of command, control, communications, computers, 
intelligence, surveillance and reconnaissance (C4ISR) systems. 
The integrating force of our airborne intelligence and 
surveillance efforts is the DARO.
    Just ten months ago, Secretary Perry also strongly opposed 
a proposal to dissolve the Defense Airborne Reconnaissance 
Program (DARP) and divide its programs among the Services. 
Secretary Perry called last year's proposal ``a step backward 
and a disservice to the warfighter.'' I could not agree more. 
Over the past three years DARO has steadfastly addressed 
Departmental problems, and compiled an impressive record of 
performance in the critically sensitive area of airborne 
reconnaissance. DARO continues to perform with credibility and 
integrity.
    Secretary Cohen has recently engaged a Defense Reform Task 
Force to review OSD, Defense agencies, DoD field activities, 
and the military departments to look for ways we can 
consolidate functions, eliminate duplication of effort, and 
improve efficiency. This Task Force will work closely with the 
National Defense Panel, the independent, Congressionally 
mandated board that is reviewing the QDR, and with the Vice 
President's National Performance Review. The Task Force results 
will be available to the Department in November 1997. At this 
time and for the above reasons, I see no reason to preempt the 
prerogatives of these reviews. The Deputy Secretary of Defense 
and the Vice Chairman of the Joint Chiefs of Staff concur in 
this statement and strongly support the continuation of DARO.
            Sincerely,
                                        R. Noel Longuemare,
   Acting Under Secretary of Defense, (Acquisition and Technology).

    We do not believe that a case for terminating DARO has been 
made, and look forward to the committee's exploring this matter 
more fully prior to conference, as promised by Chairman Goss.

                                   Norman D. Dicks.
                                   David E. Skaggs.
                                   Jane Harman.
                                   Sanford D. Bishop, Jr.
                                   Julian C. Dixon.
                                   Nancy Pelosi.
                                   Ike Skelton.