| The Administration, after consultation with the Department of Justice, has 
determined that section 306 of S. 858 is unconstitutional.  If the bill 
presented to the President retains section 306 in its present form, his senior 
advisers would recommend that he veto the bill. 
Section 306 would require the President to inform Federal employees and 
contractors that disclosure to Congress of specified categories of information, 
including classified information, "is not prohibited by law, executive order, 
or regulation or otherwise contrary to public policy."  This provision is 
clearly contrary to the Supreme Court's explicit recognition of the President's 
constitutional authority to protect national security and other privileged 
information. Congress may not vest lower-ranking personnel in the Executive 
Branch with a "right" to furnish national security or other privileged 
information to a member of Congress without receiving official authorization to 
do so.  By seeking to divest the President of his authority over the disclosure 
of such information, section 306 would unconstitutionally infringe upon the 
President's constitutional authority.  We believe that existing congressional 
oversight mechanisms, as well as inspector general statutes, have proven 
effective in bringing instances of illegality, fraud, waste, and abuse to the 
attention of Executive branch managers and congressional committees. 
 
In addition to the constitutional concerns, S. 858 raises serious budgetary 
concerns.  The Administration does not agree with the elimination of core 
intelligence capabilities that are critical to satisfying high-priority 
national and military intelligence needs.  The Administration will work with 
Congress to reach an accommodation that best serves our national interests and 
maintains the core capabilities included in our budget request.  In addition, 
the Administration opposes the elimination and reduction of funding for certain 
highly sensitive programs in the Central Intelligence Agency (CIA).  The 
Administration also believes that the funding arrangements proposed in the 
President's budget for the National Drug Intelligence Center and for family 
housing are appropriate.
 
The Administration believes that the Working Capital Fund proposed by the 
Central Intelligence Agency would promote efficient and effective allocation of 
administrative services.  Although the Committee did not include the Working 
Capital Fund in S. 858, the Administration believes it can satisfy the 
congressional concerns about this program prior to the conference on this 
bill.  The Administration looks forward to working with Congress to ensure 
enactment of this important authority.
 
The Administration strongly supports legislation proposed by the CIA to extend 
the jurisdiction of the CIA Security Protective Service and is disappointed 
that S. 858 does not include that proposal.  The Administration believes that 
provision is necessary to enable the CIA to better protect its personnel and 
facilities against the threat of terrorism.  The Administration is ready to 
work with the Committee prior to conference to satisfy any concerns it has 
regarding this important authority.
 
Also problematic is section 307 which calls for the release of information 
related to the kidnapping or murder of United States citizens abroad.  While 
perhaps not objectionable in concept, this provision raises questions 
concerning the responsibilities of agency heads to protect classified 
information originated by their agencies.  In addition, we strongly suggest the 
addition of language to this provision to clarify that the provision is not 
intended to require disclosures that could compromise ongoing investigations 
and prosecutions.
 
 
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