John Company

The Central Intelligence Agency and Overhead Reconnaissance; The U-2 and OXCART Programs, 1954-1974

CIA-UAP-003 · page 56 of 406

Page 56 of 406 of CIA-UAP-003

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43
at 1717 H Street, NW. Here the staff remained for the next six years
until it moved into the new CIA Headquarters building at Langley in
March 1962. The final move came in January 1968, when the project
staff (by that time known as the Office of Special Activities) moved
to the Tyler Building in Tysons Comer, Virginia.
1
Bissell reported directly to the DCI, although in reality the
DDCI, Gen. Charles Pearre Cabell, was much more closely involved
in the day-to-day affairs of the overhead reconnaissance project.
Cabell's extensive background in Air Force intelligence, particularly
in overhead reconnaissance, made him ideally qualified to oversee the
U-2 project. Cabell frequently attended White House meetings on the
U-2 for the DCI.
FUNDING ARRANGEMENTS FOR
PROJECT AOUATONE
Seth!l NOFORN
Chapter 2
Although Allen Dulles had approved the concept of covert funding
for the reconnaissance project, many financial details remained to be
settled, including the contract with Lockheed. Nevertheless. work on
the U-2 began as soon as the project was authorized. Between 29
November and 3 December 1954, Kelly Johnson pulled together a
team of 25 engineers, which was not easy because he had to take
them off other Lockheed projects without being able to explain why
to their former supervisors. The engineers immediately began to work
45 hours a week on the project. The project staff gradually expanded
to a total of 81 personnel, and the workweek soon increased to 65
hours.
8
DDCI Charles Pearre Cabell
Kelly Johnson's willingness to begin work on the aircraft with­
out a contract illustrates one of the most important aspects of this pro­
gram: the use of unvouchered funds for covert procurement.
Lockheed was well acquainted with the covert procurement process,
having previously modified several aircraft for covert use by the CI A.
Covert funding for sensitive projects sirnpli fies both procure­
ment and security procedures because the funds are not attributable to
the Federal Government and there is no public accountabi lity for their
' OSA History. chap. 18. pp. 7-8 (TS Codeword); OSA Chronology. pp. 4. 7. 10. 45 (TS
Codeword).
• Johnson. '"Log for Project X ... 29 November-3 December 1954 (U).
-Sec.et