information Security Oversight Office

1 InformationSecurityOversightOfficeWashin gton,DC20405 March24, :IampleasedtosubmittheInformationSecurit yOversightoffice's{I500} NationalSecurityInformation." ,youhavealsorecognizedtheneedforongoinge ffortstoimprovethesecurityclassification program, , , t , i ,F ftSSE-F r , :Do!) : i 1983~ :FBIF ederalBureauofInvestigationFICAFarmCredi tAdministrationFCCF ederalCommunicationsCommissionFEMAF ederalEmergencyManagementAgencyFHLBBF ederalHomeLoanBanirBoardFMCF ederalMaritimeCommissionFRSF ederalReserveSystemGSAG eneralServicesAdministrationHHSD epartmentofHealthandHumanServicesHUDD epartmentofHousingandUrbanDevelopmentICC I nterstateCommerceCommissionISOOI nformationSecurityOversightOfficeiNTERiO RDepartmentoftheInteriorITCI nternationalTradeCommissionJUSTICED epartmentoiJusticeLABORD epartmentofLaborMMCM arineMammalCommissionNARANASANAWNLRBNRCN SANSCNSFOA,EDPOJCSOMBOMSNCPiCOPMDSDOSTPD RIPPCPFIABPICSSBASECSSSSTATETHEASUR r WAUSDAUSIAUSPSUSTFI"v ANationalArchivesandRecordsAdministratio nNationalAeronauticsandSpaceAdministrati onDepartmentoftheNavyNationalLaborRelati onsBoardNuclearRegulatoryCommisaionNatio nalSecurityAgencyNationalSecurityCouncil NationalScienceFoundationOfficeofAdminis tration.

2 ExecutiveOfficeofthePresidentOrganizatio noftheJointChiefsofStaffOfficeofManageme ntandBudgetOfficeforMicronesianStatusNeg otiationsOverseasPrivateInvestmentCorpor ationOfficeofPersonnelManagementOfficeof theSecretaryofDefenseOfficeofScienceandT echnologyPolicyOfficeoftheMinePresidentP eaceCorpsPresident sintelligenceOversightBoardSmallBusiness AdministrationSecuritiesandExchangeCommi ssionSelectiveServiceSystemDepartmentofS tateDepartmentoftheTreasuryTennesseelv'a lleyAuthorityDepartmentoiAgricultureUnit edStatesinformationAgencyUnitedStatesPos talServiceOfficeoftheUnitedStatesTradeRe presentative'v' ' , , TopSecret," Secret, "Confidential." '34,to21$92, , * ,133? , ,1D1,632morethaninFY' '84,anddeclassifiedadditionalinformation inwholeorinpartinBill/ , ' ,aslightincreaseoverFY' ,154infractions,21%fewerthaninFY' ,theInformationSecurityOversightfoiceiiS DO} sOrderofApril2; ; ' ;ISUO' r'tees, ,prescribedbyNationalSecurityDecisionDir ective34{NSDD843, ,analyzesandreportsstatisticaldataonagen cies , ;ISDD heldasymposiumentitled"NationalSecurityi nformation:DifferentPerspectives.

3 " ; , ; :overclassiiicationorunnecessaryclassifi cation;theoverdistribulionofclassifiedin formation;classificationmanagement;revit alizationofthe need-to-itnow principle; ; ' 'sinformationsecurityprogram;coordinatew ithassignedagencycounterpartsonacontinui ngbasis;andconductformalinspectionsofthe agency sprograminaccordancewithaplannedannualin spectionschedule,whichincludesvisitstose lectedfieldactivitiesaswellasofficesinth eWashingtonmetropolitanarea.[ , sitesurveysencompassallaspectsoftheinfor mationsecurityprogram,inctudtngclassific ation,declassification, ,ISDD analystsreviewasamplingofclassifiedinfor mationintheagency'sinventorytoexaminethe proprietyofclassification,theexistenceof necessarysecuritymarkingsanddeclassifica tioninstructions, ,declassifying, 'sprogramareidentified, 'sinformationsecurityprogram,lSCiCidevel opedtheStandardForm311, ; ; ,includingtheclassificationIeveiofthosed ecisionsandthedurationofclassification; ;5-thenumberofrequestsreceivedformandato ryreviewfordeclassificationandagencyacti onsinresponsetotheserequestsintermsofcas es, ; ; ; ,1934,throughSeptember3t], ,includingGinandDoD, , , ,whichwasbegunthisyear, , , , ,describesthetwosamplingsystemsingreater detail, [Exhibits1and2] " :EJZI12356l n1HI"=1?

4 ??197619321E| ''"LUBEInEl1355?7'Li'H 'lnnrru-dn- ltlcclslim-nuul5:"35m[insiquan2-3;]myPre mium- -anon-iv:'o| _ii "JThenumberofexecutivebranchemployeesaut horizedtoclassifyoriginallyhasdecreaseds ignificantlysince1912.,whenthefigurewas5 9, " 1985, 'irup13t-i-325%}. {+30%] 135{+B%, ,Bot) TopSecret"authoritiesroseatthegreatestra te{i3%},although Confidential authoritiesalsoincreasedby1%. Secret authoritiesdeclinedby1%.DuringFY1999,fED Owillpresseachagencythataccountedforthis year sincrease, TopSecret" {Exhibits3throughT} { } ,955,152decisionsreportedinF r NALCLASSiFiEHSE xhibit2 CLASSiFiCATiONACTiWTi Exhibit3 TopSecret"Authorities.{ } '''r, "Secret"Authorities;( ] "Confidenlrai'Authorities:_ [ }ttiTotal:{1914] i =Swill}AuthoritiesDespitethepositivebyer aiifigureferF1 1985,ISOD notesthatthenumberatoriginal TcpSecret ,- o]."Secreti acticnsincreasedbyBABE{ }.Thesenumberswereefisetbyadramaticdecre asect9135?{ }in Ccniidential 'DNExhibit4 DECISIONSE xhibit4_r1952res:1954wasless1was''TC'PJc ommentersscnt F,r',/LA,im-@mmasses-ii /1 IEIEHIQEIE1933reactwassmite rrcrAL__ORIGINALHE25 =35 as;tenemm1}ItSaab-11)Jit}Fouragenciescla ssifyoriginallymorethan99% }ireportedanincreaseof39,577?

5 {11%}andJusticeariseof6,341[19%].TheCIAa ndStatereporteddecreasesof32%and5%, { r'1982-1995showsadramaticdecreasebytheCI Afromahighfigureof413,521reportedinFY199 2,tothisyear'stotalof181 Similarly,thenumbersforJusticedemonstrat eamarkeddeclineinoriginalclassificationa ctivityfromFY1982-F1 [lei] 1992, fFfCATfo'v'DuringFY1985:35% 'sautomaticdeclassiticationrateremaineda nimpressive?1% , {5%inFY1934,to1%inFY1985i,DoE{15%toT'ii' u},State{12%to3%},andTreasury{16%to9%}. CDEClSlDNSBYAGENCYE xhibit_5 DECLASSIFICAHUN Exhibit6 WEE-1985EW1m : easeinThousands~|m19132 DIII lnlteasEM DeclassiiyI1934-lassAliGtheraJFJSI' , , OriginatingAgency sDeterminationFieouired. ,lDerivativeClassificationContinuestoRis e-{Exhibits3andEl} , :{a} ;orlb} , {2%}wereclassifiedatthe TopSecret" {31%}atthe"Secret" {Sifts}atthe"Confidential" Secret actionsrisingthegreatestat18%."TopSecret "and"Confidential"decisionsincreased11%a nd13%. "CLASSiFiCATiONACTiWT'l Exhibitarace "AgencyatAssignedDateif:[JADE ifvtustbehe it.]}

6 "to21,492,254orEvanilorReviewedBefore TS""3'"C"15135793 DeciassificalionDeclassiitcation!DOD"51% 35%la n18%31%Eli "IreF553;:ifqnState3%92% 'ti-iElf- :955i5%4+;TIT}:25%TreasuryBlit-Elf'ts[ic eEliteEli-HieMIClthers21 ":-T- Eill'ri:2 3325% ";35%ED' ,738,420inFt"1982, ,.was11%oranadditional1,825, ,inFY1935itregistereda42% ,wereFElvtA{ Eiit-ti}andJustice{ 13%}.Giventhewidedisparityinfiguresrapor tedbyEllchIandBIAforFY1985, ,inanother, , {Exhibit10}DuringFY1935,thecombinednumbe roforiginalandderivativeclassificationde cisionswas22,322, ,15Et{14%}overFt" :inbothoriginalandderivativeactionsandth e42% , ,severalagenciescitedgreatercounterintet ligenceefforts, , ,ISUO witldevoteadditionalenergytothereviewofd ocumentsduringitson-site' "TopSecret levelremainedat2% ,therewasashiftofonepercentfrom"Confiden tial"to Secret. 'EcmssrecanorvCGMPAHfSONOF oomerrvsoDECISIONSB r AGENC?Exhibit9 CLASSthCATilthACTtWT t Exhibittowas;lessm mmiPrTotalActionse re aa"c"[:I1532astest1?]]

7 ,3? ' a teas1?504anas31%see-19551rIwas18,005, {Exhibits itthrough15} ,declinedby513to4,031 Despitethedecreasethisfigurerepresentsth efourthhighestnumberoinewcasesreceivedsi ncetheprogramwasinstitutedinF r 19? 'ii'henthe1, ,agencieshadatotalcaseioadof5, ,521cases,18% EWEB ras{EEG"4 3? "]SI82 EHS4 EEIS inceFY1933, 1935,areconsiderablybetterthanthoseforFY toss, ,321casesactedoninFY1985 , ' 's-1 ElEli-mm:InFullGasesDocumentsPeges"ME,5g assediceEB]F f4335-:BEF"'33E4BB5" ! " ) ,344{with} {11% 'fa} ) {2%} {228%} } {5%} ,thepercentageofpagesreleasedinfullroset o88% " , , AGENC IExhibit14-nlnnlcdInFuii'EGransridI"!Fan CfDenny:InFullAQEW'C'ITotalGases'"tlsGra nted=38 Granted'E aDaniedPuzzledOnInFullinPartInFullStatea s?{ ;23:5 19%NSC5??35] :n? fn4%Justice4:1?88%a :89sNARA431141181:398s285sCIA281235i:488 -1:2 2 :FillOthers158 T581:218's4- ; Isawat [3?513}weregrantedinfullr252race}weregra ntedinpart,and57{13%} ,559documentsand55, (51%] } ]12% {51%}weredeclassifiedinfull, ) {2%} {Exhibits16through13} Systematicreviewfordeclassification" ' (archival) ] , 1981} 1335-Granted# 'i ilndy'-F'al'lC]DenlednFullInMnliung7 DocmnenmCasesPagesF r'Ela54 ESrt19d:51|].

8 1 EeeeHIIgit-:3" cs-t.,2B3EH-3B516 Lastyear {18%) v r " ] [toll] ' ' ' re us"1 . :81%35%56% , :3 :' -:. :sec3% W8182838483'I 8 ; l?AgencySsh-inspectionsincreaseMargins,i n{Exhibits1sand20}WhiletheExecutiveorder authorizestheDireotorof[ anactiveoversightandsecurityeducationpro gram."Agenciesreportto[EGGthenumberofsel f , , {~14% { 35%},State{ 55%}.andTreasury{ 53%}.Agenciesreportingmajorincreaseswere DoD{+2%},NSC:{+93%}.andNASA weaveAGE NC !SELF iNSPECTlON , rest,toF1 tees, sregularprogramreviews, it:ChangePI 52F?asW5-4F r asBLESS:UnauthorizedAccess4 35sad4&3mid-Lt- ' :' : ~5% ":UnauthorizedRepeal] ! 32 ESE59? s|EitherBE? }292+ ,151" { sarrestofJohnWalkercommencedtheso-called "YearoftheSpy." :Theexcessofsecurityclearances; "need-to-know"principle;theoverdistribut ionofclassifiedinformationamongandwithin agenciesandoffices; , [fitrlvernment' ' ;theoverdistributionofclassifiedinformat ion;classificationmanagement;revitalizat ionofthe"need to-know"principle; , | {SSEi} 's ,theNSCconcurred inISOO' ,theNSCandlSDDhavereceivedfourcongressio nalresponses, ,lEiClClisanticipatingtheNSC ,isfundamentallysoundand,forthemostpart, , , , l sexperience, , , ,andwithsomereason, , ' , ,"Confidential"isneverhighenough,and"Sec ret" ,andrelatedtostatusclassification, , ,incorrect, , , 'classified,eventhoughsomeportionsneedno tbe, , ,andbecauseoftheirpositions, , , ,"NationalSecurityInformation," , , , , , need-to-know" , "need-toitnow" , TopSecret Secret and Confidential , , "classificationmanagement.]}}

9 " , , , , ' Need-to t tnow Thecriteriaforaccesstocfassifiedinformat ionhavelongbeenthesecurityciearanceplust he"need to-ltnovv". "need-toitnow" "need-tottnow" need-to-ltnow .Theinitiativestoattacktheoverdistributi onofclassifiedinformationshouidalsoserve torevitalizethe"need-to-know needtovlrnow , ' ,ofiiciaisoftheUnitedStatesGovernmentare strugglingtoimprovethesystemthatprotects oniyaverysmallportionofthetremendousamou ntofinformationitproduceseveryday, , sexperiencerjustabouteverypersonentruste dwithprotectingthatinformationwouldn' DODS amplingSystemsFormostoftheagenciesthat[ , sdataonclassificationauthorities, ) , "1985? } by } , ,DoDreported385, ,thefigureis702, ,22% '1 TopSecret"originaldecisionswas9,32? Secret and"Confidential"actionswere233,154?and2 3, :reported18,090,951derivativedecisionsus ingthemessagetrafficsystem, ,552utilizingthenewmethod,42% ,exceptwithrespectto"TopSecret" ,"Seeret"actionsaccountfor38%ofthetotal, while Confidential decisionscomprise80%.]

10 Undertheoldsystem,thefigureswere21% ]DEHitiATitiECLASSiFiCATlDfiExhibitBInMi llions- CW-""5 ASEEQHEUDali:UrEli-EH1forUoclassit-oaljo nAG'IE'F'SFI*="-' iu|Uf'-_I .iReviewW Driginatnr-|DADF- l:-FGEEUE 3"-15031951|:ITEC lassrlzcaiimr-SClass-Ication-CEIEISSIIII ZEHE-I'I51"loioSamplingNewEarl-lipianSys temSystemlDidSamplingNewSamL' ,59? ,indicatingatendencytoclassifyagreateram ountofinformationatthe Secret "Secret."while59%are Confidential. 'CATiGn-iExhibitcInMlifln fl'uE]T5 ClasslhmtlcmSBissau-cation-C;Elessnicatl onNewSamplingSystemDlilSamplingSystemAlt houghI800believesthatDoEl'snewsystemwill providemoreaccuratestatistics, , , :[L-s " wWan-nation."a!ru' ]1o'issueaStand1rdizan[inndisclosuru.|:n nditinnL11nlccesstn:Inasifieu-Inir;n:;r: :nln1g:;:rzniglrga? "ClasailiedIniat'-Nd'.J-Agreemlni. andnlrnc1E-dagentfusInwartED U::1r:j|::nIFT:1I;I=i:n:T:IrI:En-mm:asqu mktyaspussihli ! ,rmplumenlannnNIn:NewFull0 EmpiuyEESandlnrh'_gency-wrdeInmplumenmtm nAnparL-ntPlanmngRuinvesingaljnnsImplume nmllanIn5 Agencyln lplnmcnmlrnnImlemnnl1i' maFunFl:-anUni-rInPragres:Campanem:lmpln mentatiunEBB.