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C:E:NTRAL. SECURITY SERVICESerial: J-107-884 April 1988MEMORANDUM FOR THE SECR TARY OrSUBJECT:D FE HSEANijEX TO DEPARTYENT OF DEFENSEPROCEDURES UNDER EXECUTIVE ORDER 12333 - ACTIONCL SS!FlEDHEMO .NDUMis1. Attach d·a proposed replacement for the Cl ssifiedAnnex to Department of Defense Regulation 524 0.1, "Acti viti es ofDoD Intelligence Components that Affect u.s. Persons". TheRegulation implements Executive Order 12333, united StatesIntelligence Activities", which requires that certain collectiontechniques including electronic surveill nce be conducted inaccoroance with procedures es t q,blished by the head .of the agencyconcerned and approved by the Attorney General. he attachedrep l acement Classified Annex has been negotiated with anaapproved by the Department of Justice's Office of lntelligencePolicy and Revie , and it reflects numerous improvements in formand subst nce which ensure both efficiency of operations andproper regard for constitutional and other legal rights.2. I recommend that you sign the .attached Annex. I willthen forward it to the Attorney Gener!l for his approval asrequired by E ecutive Order 12333.w o General, USADirectof, NSA/Chief. CSSLieuten ntEncl:a/s. .,. . . - ·-. --·-PREPARED SY:Declassify Upon Removal of Enclosuresand Physical Removal of caveat notation.Iyl '393 ,( I ('.' I

1st RET. .CLASSIFIED ANNEX TODEPARTMENT OF DEFENSEPROCEDURES UNDER EXECUTIVE ORDER 12333S c.1:Apolicability and Scope (U)(S CCO)These . procedures implement sections 2.3,2. .and2.6{c) of Executive Order 12333 and supplement Procedure S ofDoD Regulation 5240.1-R, previously approved by the Secretary ofThey govern the conduct byDefense and the Attorney General.the United States Signals Intelligence System of signalsintelligence activities that involve the collection, retentionand dissemination of communications originated or intended forreceipt in the United tates, and signals intelligenceactivities that are directed intentionally against thecommunications of a United States person who is outside theUnited States.These procedures alsogo ernthe collection,retention and dissemination of information concerning UnitedStates persons that is collected by the United States SignalsIntelligence System including such activities undertaken by theThese procedures do not apply to:signals intelligence acti viti es th t . ; · - - t re· -i red underExecutive Order 12333 to be conducted pursuant to proceduresapproved by the Attorney General.Furthet:, these procedures donot apply to signals intelligence activities directed againstHANDLE VIA COMINT CHANNELS ONLYSECRETl394t eCR 1077

CR 1078for the purposeradio communicationsof collecting foreign intelligence regarding internationalnarcotics trafficking or in support of federal lawefforts to interdict such trafficking.intelligence activities ares bjectenforce entSuch signalsto a separate classifiedannex approved earlier by the Attorney General (See Annex J toUnited StatesSign lsmatters expresslyIntelligence Directive 18).authori eaExcept fo:herein, the limitations containedin Department of Defense Regulation 5240.1-R also apply to theUnitea States Signals lntellig ence Syste:;;.Re:erence sh:: u l d be.·made to those procedures with respect to matters ofapplicability and scope,definitions policy and operationalprocedures not covered herein.Sec. 2:(U}Definitions (U)The following additional definitions or supplements todefinitions in DoD RegulationClassified52 0.1-Rapply solely to this nnex:(S CCO)Agent of aFore gnPower.signals intelligence activities which are-For purposes ofriot- 'r · uiatedby theForeign Intelligence Surveillance Act (FISA), the term "agent ofa foreign power . means:.HANDLE VIA COMI NT CHANNELS ONirYSECRET2395

CR 1079SECRET(a)a person ho,for or on behalf of a foreignpo er,is engaged in clandestine intelligence activities, sabotage,or international terrorist activities, or tivities i prepa:etion for international terrorist activities, or who conspire swith, or knowingly aids and abets such a person engaging insuch activities;(b)a person who is an officer oremploy eof aforeign power;(c)a person unlawfully acting for, or pursuant tothe direction of, a foreign power .The mere fact that aperson's activities may benefit or further the aims of a foreignpower is not enough to bring that person under this subsection,absent evidence that the person is ta k ing direction from, oracting in knowing concert with, the foreign power;(d)a person in contact with or acting in collaqora-tion with an intelligen e or security service of a foreignpower for the purpose of providing access to information ormaterial classified by the United States to which such person. - . - - ·- . . . --:has or has had access; or(e)a corporation or other entity that is owned orcontrolled directly or indirectly by a foreign power.HANDLE VIA COMINTCHANNELS ONLYSECRET3396

CR 1080 tlf{Ll{0)Communicant.or intended recipient of a(U)Consent.The term "communicant'" means a sei;d a:ccm unication.For purposes of signals intelligenceactivities, an agreement by an organization with the NationalSecurity Agency to permit collection of information shall bgdeemed valid consent if given on behalf of such organization byan officiar or governing body determined by the General Counsel,Nati nalto akeSecurity Agency, to have actual or apparent authoritysuch an agreement.(5 CCO).·Foreign Com.,11unication.The term "foreigncommunication" means a communication that involves a sender oran intended recipient who is outside the United States or thatis entirely among foreign powers or between a foreign power andofficials of aHANDLE VIACO H NTCHANNELS ONLYSECRET4397

CR 1081htU\tT(U)F'oreian Intelligence.The term " foreignintelligenceN includes both posi tive foreign intelligence andcounterintelligence . Illicit Conununi cation.co unication"means aco unicationThe te r m "illicittransmitted i n viola t ion o:the Communications Act of 1934 and regulations thereunder or ofi nt ernational agreements wh i ch because of its exp l ici tccn e n t,message characteristics, or method of transmiss i on is reasonab l ybelieved to be a communication to or from an agent or agen t s offoreign powers, whether or not United States persons.(U)Interception.Th term " interception means t heacquisition by the United States Signals Intelligence Systemthrough electronic means of a nonpublicco u nica t ionto whichit is not an intended party, and the processing of the contentsof that communication into an intelligence form but notinclud i ng the display of signals on vfio ·l: dlspfay devicesintended to permit . the examination of the technical characte ristics of the signal without reference to the . informationcontent carried by the signal.HAN6LE VIA COMINT CHANNELS ONLYSECRET5398

CR 1082'tC.)Selection.The term " selection," as applied tomanual end mechanical processing activities, means tbeintentional insertion of acomputerHANDLE VIA COMINT CHANNELS ONLYSECRE'f6399

. . . .·. . . . . ·sECRET .sc nCR 1083dictionary or manual scan guide for the purpose ofidentifying messages of interest and isolating them for fur the :processing .\'S).Selection Term.The term "selection term" meansthe composite of individual terms used to effect or defeatselection of particular communicat ions for the purpose ofi nterc eption .soused It comprises t he entire ter m or series ofbut not any segregable term contained therein.te r sItapplies to both mechanical and manual proces sing.(U)Technical Da ta Base.The term techni ca lda t abase'' means information retained for cryp tanal ytic o r trafficanalytic purposes.(U)Transiting Communi catio ns.corrmun i cations" includes allThe term "transitingco unicationsthat neither orig-inate nor terminate in the United States, but which tr ansitthe United States during transmi ss ion .For pur poses of. - ·: . : · ': : . . .- intentionally collecting the communications of a particu l ar United States Person.person, the term "United States person," in addition to themeaning in the Appendix to DoD Regu lation5240 1-R,HANDLE VIA ClliHNT CHANNELS ONLYSECRE 7400 includes:

CR 1084 f;\;;KLiany Jlien known to be presently in the United States; anyunincorporated association of such aliens or · American citizens;the United States operations, office, branch, orrepresentat veof a corporation incorporated abroad; any corporation orcorporate subsidiary incorporated in the United States; and anyu.s.flag non-governmental · aircraft or vessel:po-.:ersSection lOl(o)(l)-(3) ofSec . 3:(U)inFIS .Policy {U)The Director, National Security Agency, is assignedrespon ibilityfor signals intelligencecollect onandprocessing activities and communications security activities.In order to assure that these activities are conducted inaccordance with thepro isionsof Executive Order 12333, theDirectoz, or his designee, will issue appropriate directives andinstructions implementing these procedures and governing theconduct of the United States Signals rn·re·:tii:gence(:System and theactivities ofco unicationssecurity entities.HANDLE VIA COMINT CHANNELS ONLYSECRETB401

CR 1085SECREr It is the policy of the United States SignalsIntelligence System to collect, retain, and disseminateo lyforeign cormnunications and military tactical COI"I'L"TTUnicatior:s. .-. .is recognized, however, that the United States SignalsIntelligence System may incidentally intercept non-foreigncommunications, including those of or concerning United Statespersons, in the course of authorized collection of foreignco "TTunications.The United States Signals IntelligenceSyste makes every reasonable effort, through surveys ana technicalmeans, to reduce to the maximum extent possible. t enumber ofsuch incidental intercepts acquired in the conduct of itsoperations.intercept dInformation derived from these incidentallynon-foreign communications may be disseminated tothe Federal Bureau of Investigation when theinfo rnationisforeign intelligence or counterintelligence or indicates athreat to the physical safety of any person.Dissemination ofsuch information is also governed by these procedures andapplicable minimization procedures approved in accordance withFISA.Specificco municationssent from or intended for receiptby United States persons are not in t ercepted deliberately by theUnited States Signals Intelligence System unless specific. . . . . .--. --- .·- . . .authorization for such interception has been obtained in-accordance with these procedures .HANDLE VIA COMINT CHANNELS ONLYSECRET.9402

SECRET(5 GCO)The President hasCR 1086authori ed,and the AttorneyGeneral hereby specifically approves, interception by theStates Signals Intelligence Systemur. te:of "IllicitoUnited States and Allied Military exercise co uni-0Signals collected ommunications;cations; uringthe search of the signalsenvironment for foreign corrmunications that may be developedinto sources of signals intelligence;Signals collected during the monitoring of foreignelectronic surveillance activities directed at Unitea ·statesco unicationsconsistent with the Foreign IntelligenceSurveillance Act of 1978; andQSignals collected during the testing and trai n ingof personnel in the use of signals intelligence collectionequipment in the United States consistent with the ForeignIntelligence Surveillance Act of1 78.-. . ':. ·- .HANDLE VIA COMINT CHANNELS ONLY- SECRET10403