January 27, 1976

HR Select Intelligence Com final rept says more than 8 of every 10 contracts awarded to private indus by CIA are let without competitive bidding by contractors; says about 85% of contracts revd by com were 'sole source' contracts; Fed procurement experts say percentage of 'sole source' contracts awarded by CIA is highest for any Govt agency; says Defense Dept awards 80% of its contracts this way and GSA, which spends twice as much money as CIA, lets 'probably less than 5%' of its contracts on sole-source basis (L)

White House press sec Ron Nessen and CIA Dir William E Colby charge that leaks of HR Select Intelligence Com rept on intelligence activities violate agreement between com and exec branch; Nessen says leaks raise questions about how classified material can be handled by Cong when natl security is at stake; Colby says that under agreement by which CIA supplied information to com, Pres Ford should have been consulted before any release of secret information and 'his decision would be final in the absence of further judicial determination,' news conf; says he believes rept is 'totally biased and a disservice' to US; says com, by selective use of evidence provided and by innuendo and suggestive language, implies that intelligence has deceptive budgets, no accountability and has not complied with direct order of Pres; denies this; Colby says 'best way' to stop leakage and the dangers to US it involves is by rapid dissolution of com; tells AP reporter in int that he told Washington Star in Nov '73 that CIA infiltrated news media; Repr R McClory attacks news leaks; says he is particularly upset because his minority opinion on rept was not reptd in NY Times; Repr R N Giaimo scores leaks; com staff dir A Searle Field says leaks did not come from com and that there are copies of rept at State Dept, exec offices and Pentagon; Colby denies anyone at CIA leaked information; repts' findings cited; Pres Ford awards Colby the Natl Security Medal and praises his leadership (M)

 

HR Communications Subcom staff rept charges that FCC has provided broadcasters improper, unconst and illegal umbrella against competition and recommends creation of Fed program to encourage growth of cable TV; accuses FCC of interpreting its mandate from Cong 'as requiring primary concern for individual broadcasters rather than needs of audience being served'; rept is 1st Cong assessment of cable indus in at least 15 yrs; was made public as Ford Adm continues to consider whether to recommend legis to weaken restraints imposed on cable TV by FCC as part of its broad campaign to cut back on Fed regulation; FCC Chmn Richard E Wiley denies allegation that comm did not cooperate with subcom; rept was written by subcom counsel Harry M Shooshan 3d and consultants Henry Geller and Dr Karen Possner; is based in part on ints with over 140 communications officials (M)

Ford Adm has decided to submit to Cong request for $1.8-billion in econ and mil aid for Israel in next fiscal yr, nearly $500-million less than Israel will probably receive from US in fiscal '76; in present fiscal yr, Adm asked Cong for $755-million in econ aid, including $15-million in cheap food imports; for next fiscal yr, which runs from Oct 1 to Sept 30, Adm has asked for $819-million in econ aid, of which $9-million is for food imports and $25-million for housing loan guarantees; reduction in aid came as surprise to Israeli officials and has led to expressions of concern on eve of Prime Min Yitzhak Rabin's visit to Washington (M)