t S tMT A UNCLASSIFIED NSC S PROFILE RECORD ID 8906895 RECEIVED 01 SEI 89 13 TO SCOWCROFT DOC DATE 31 AUG 89 SOURCE REF FROM CHENEY R KEYWORDS INTELLIGENCE CONGRESSIONAL PERSONS SUBJECT RECOM OF VETO SIGNAL FM PRES TO SENATE ON CURRENT INTELLIGENCE AUTHORIZATION BILL ACTION PREPARE MEMO FOR SCOWCROFT DUE DATE 05 SEP 89 STAFF OFFICER WORKING FILES WH STATUS S LOGREF ________ NSCIF _________________________________ CODES ________ D O C U M E N T FOR ACTION WORKING D I S T R I B U T I O N FOR CONCURRENCE LAMPLEY ROSTOW FOR INFO EBNER KANTER COMMENTS DISPATCHED BY _______________________ DATE ___________ BY HAND OPENED BY NSGAD DOC CLOSED BY UNCLASSIFIED W ATTCH 1 OF 1 t h e s e c r e t a r y o f d e f e n s e AUG 3 L ' 384 WASHINGTON THE DISTRICT OF COLUMBIA August 31 1989 MEMORANDUM FOR THE DIRECTOR OFFICE OF MANAGEMENT A THE ASSISTANT TO THE PRE FOR NATIONAL SECURITY A FROM THE SECRETARY OF DEFENS SUBJECT Veto Signal on Senate Intell The Senate Intelligence Committee's FY'90 intelligence authorization bill S 1324 attacks a crucial national security prerogative of the President The Administration should inform the Senate quickly and forcefully that the President's senior advisers will recommend that he veto the bill if it reaches him in its current form Section 104 of S 1324 adds a new proviso to Section 502 of the National Security Act relating to the CIA Reserve for Contingencies as follows Provided however That no funds from the Reserve for Contingencies may be obligated or expended for any operation or activity for which the approval of the President is required by section 662 of the Foreign Assistance Act of 1961 22 U S C 2422 or for any significant change to such operation or activity for which prior notice has been withheld Section 662 of the Foreign Assistance Act requires a Presidential Finding of importance to national security for expenditure of CIA funds for a covert action Section 501 of the National Security Act provides for prior notice of covert actions to the Congressional intelligence committees or a leadership group in extraordinary circumstances The Executive Branch consistently has maintained that the President has authority under the Constitution and Section 501 b to defer giving notice of an extremely sensitive covert action to anyone in Congress should rare circumstances so require to protect supreme national interests The bill seeks to require the President even when he needs to act in absolute secrecy to meet extraordinarily grave threats to national security to give prior notice to Congress of a covert action in order to have access to CIA Reserve funds If Section 104 of S 1324 becomes law the Presidency will lose a vital capability it needs to protect the Nation The Secretary of State The Director of Central Intelligence The Counsel to the President The Assistant to the President for Legislative Affairs 6895 This document is from the holdings of The National Security Archive Suite 701 Gelman Library The George Washington University 2130 H Street NW Washington D C 20037 Phone 202 994-7000 Fax 202 994-7005 nsarchiv@gwu edu