GENERAL WALTER BEDELL SMITH AS DIRECTOR OF CENTRAL INTELLIGENCE OCTOBER 1950 - FEBRUARY 1953 VOLUME III

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00669377
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210
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December 28, 2022
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August 9, 2018
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F-2013-02252
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December 1, 1971
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Approved for Release: 2018/07/24 C00669377 CIA Internal Ilse Only Access Controlled by CIA Historical Staff CIA HISTORICAL STAFF The DCI Historical Series GENERAL WALTER BEDELL SMITH As DIRECTOR OF CENTRAL INTELLIGENCE OCTOBER 1950 � FEBRUARY 1953 VOLUME III REORGANIZATION PURSUANT TO NSC 50 ,sEeRtr DCI � 1 December 1971 Copy 3 of 3 --evez.A3e1 A-pproved for Release: 2018/07/24 C00669377 Approved for Release: 2018/07/24 C00669377 0.Cak.o.M.L: 'CIA Internal Use Only Access Controlled by CIA Historical Staff THE DCI HISTORICAL SERIES DCI � 1 GENERAL WALTER BEDELL SMITH AS DIRECTOR OF CENTRAL INTELLIGENCE OCTOBER 1950 - FEBRUARY 1953 VOLUME III REORGANIZATION PURSUANT TO NSC 50 by Ludwell Lee Montague December 1971 HISTORICAL STAFF CENTRAL INTELLIGENCE AGENCY SECRET 4-1=1 � . - � Approved for Release: 2018/07/24 .600669377 Approved for Release: 2018/07/24 C00669377 SECRET Contents F. - Eat I. The Reorganization 1 II. The Office of Intelligence Coordination � 6 III. The Office of National Estimates 13 A. The Central Reports Staff 14 B. The Failure of ORE 15 C. Five Proposals for Remedial Action 23 D. The Board of National Estimates � � ^ 37 E. The "Princeton Consultants" 50 F. The National Estimates Staff 54 G. Some Early Problems 63 IV. The Office of Research and Reports � � � � 82 A. The Creation of ORR 86 B. The Economic Intelligence Committee � 91 C. The Reorganization of ORR 95 V. The Office of Current Intelligence � � � � 101 A. Current Intelligence in CIA 102 B. Communications Intelligence in CIA . � 105 C. The Office of Special Services . . . � 110 D. The Creation of OCI 111 SECRET ' 'Approved for Release: 2018/67/24 C0066937" Approved for Release: 2018/07/24 C00669377 Page E. Political Research in CIA 114 F. Bad Blood Between OCI and ONE 122 G. The Watch Committee of the IAC . . . :-136 VI. The Office of Scientific Intelligence . 141 A. The Creation of OSI and the SIC . . . . 142 B. The Military Counteroffensive 148 C. DCID-3/4 and the Scientific Estimates Committee 154 VII. The Office of Collection and Dissemination 160 VIII. The Office of Operations 168 A. Subordination to DDP 178 B. Subordination to the DDI 181 IX. Progress Report to the NSC . . �� . . 184 Appendix A: Source References 187 - iv - SECRET Approved for Release: 2018/07/24 C00669377 Approved for Release: 2018/07/24 C00669377 General Walter Bedell Smith As Director of Central Intelligence October 1950 - February 1953 Volume III Reorganization Pursuant to NSC 50 I. The Reorganization The Survey Group Report proposes a number of major changes in the internal organiza- tion of CIA ... . We concur in them and in the concept of CIA upon which they are based. However, we recognize that there may be other methods of organization which will accomplish the same objectives. NSC 50 1 July 1949 In dutiful compliance with NSC 50, Admiral Hillenkoetter submitted, in August 1949, a plan for the integration of the Office of Policy Coordination (OPC), the Office of Special Operations (0S0), and the Contact Branch of the Office of Operations (00), as recommended by the report of the NSC Survey Group.1/* The Department of State never acted on that proposal, which involved the amendment of NSC * For serially numbered source references, see Appendix A. SECRET Approved for Release: 2018/07/24 C00669377 Approved for Release: 2018/07/24 C00669377 SECRET 10/2 in a way that would have reduced State's control over OPC. Consequently it was never implemented. On the other hand, Hillenkoetter's plan for the reorganization�of the Office of Reports and Estimates (ORE), reported to the NSC on 27 December 1949,2/ was a transparent attempt to perpetuate the status quo under a specious pretense of compliance.* It was implemented, but was without any real effect. Thus the organization of CIA in October 1950, when General Smith relieved Admiral Hillenkoetter, was substantially what it had been in July 1949, when the NSC had directed a radical reorganization, although there had been some few inconsequential changes in nomenclature. That organization is shown in the organ- izational chart, Figure 1, on the following page. General Smith assured the NSC and the IAC that he would proceed forthwith to reorganize CIA in ac- cordance with NSC 50, except that he would not merge OPC and OSO.** Smith looked to his Deputy, William See pp. 27-28, below, and Volume I, pp. 97-98. * * See Volume II, pp. 10-11, and 21-22. - 2 - SECRET Approved for Release: 2018/07/24 CO0669377 pproved for Release: 2018/07/24 C00669377 91P1T: . r r--- CENTRAL INTELLIGENCE 'INTELLIGENCE AGENCY � (Organization as of 1 Octor 1950) [ DIRECTOR OF 1.-IFfiali GE RI-Ciel CENTRAL INTELLIGENCE ------1 ADVISORY 1 DEPUTY DIRECTOR COMMITTEE EXECUTIVE sccRsr DEPUTY EXECUTIVE c.4 BUDGET STAFF MANAGEMENT STAFF PERSONNEL STAFF PROCUREMENT REQUIREMENTS STAFF C 001 DI NATION. OPERATIONS POLICY STAFF LEGAL STAFF ADVI$ORy. COUNCIL MEDICAL STAFF INSPECTION di SECURITY STAFF ADMINISTRATIVE STAFF SPECIAL SUPPORT SUPPORT STAFF OTTiCE OF REPORTS& (S TI VAT ES OFFICE OF SCIENTIFIC INTELLIGENCE OFFICE OF COLLECTION & DISSEMINATION OFFICE OF POLICY COORDINATION SECRET OFFICIE Of OPERATIONS OFFICE OF SPECIAL OPERATIONS GR 1119 CIA. 12-51 SECURITY INFORMATION Approved for Release: 2018/07/24 C00669377 Approved for Release: 2018/07/24 C00669377 br,k../t.C. I 1 Ii Jackson, to prepare for his approval the specific plans required to carry out this commitment.* The new organizational structure that Jackson and Smith devised is shown in the Chart-an page 5.**- See Volume II, pp. 10-11. ** This chart, dated 19 January 1951, is of curious interest in that it shows the DDCI in the position later occupied by the DDI: that is, with no juris- diction over the DDP and the DDA, but in direct com- mand of the six "DDI Offices." William Jackson did function as DDI while he was DDCI, 15ut was not con- fined to that role. Allen Dulles did not function as DDI when he became DDCI in August 1951. Thus the chart is not a true reflection of the facts in par- ticular. � 4 � SECRET _ Approved for Release: 2018/07/24 C006693-7 t.n pproved for Release: 2018/07/24 C00669377.:i � ' r-771 PM7,7 '771E CrrT CENTRAL INTELLIGENCE AGENCY DIRECTOR or CENISAL INTELLIGENCE � 4M1 41.0�11�40 r nrrEli.xcanct I ADVISORY COMMITTEE .0. ������=1�31 rommol ������=...1. DEPUTY DIRECTOg (�ums) OFFICE OP SPEC IAL OPERATIONS OFFICE OF POLICY OORDE(ATION OFFICE OF OPERATIONS DEPIZY DIRECTOR OP CENTRAL INTELLIGENCE DEPUI7 DIRECTOR (ArtamismoN) .�������=10.1k ADVISOR FOR MANAGattre GENERAL COUNSEL ASSISTANT orevrr (=mut). ASSISTANT DEPUTY ( SPEC IAL) OFFICE OF cou.trTrox & ISSEM NAT ION OFFICE OP RESEARCE & REPORTS 1 OFFICE 07 OFFICE OF orncis OF � OFFICE OF RATIONAL INTELLIGENCE CURRENT IENTITIC ESTIMATES COORDINATION INTELLIGENCE INniztaescs ASSISTANT � DEPVIT ( INSPECTION AND SEC1LRIrf ) CIA REGULATION NO. 70 SECRET 19 IanuarY 1951 pproved for Release: 2018/07/24 C00669377 ' Approved for Release: 2018/07/24 C00669377 to.= 114,�ylk II. The Office of Intelligence Coordination To devise plans for the interdepartmental coordination of intelligence activities had been from the first an explicit function of the Director of Central Intelligence.3/ Admiral Souers created for that purpose a Central Planning Staff composed of officers seconded from the several Departments ,4/ not as instructed representatives, but as men famil- iar with Departmental interests and capabilities, working for the DCI. Vandenberg (Wright) abolished that Staff by reassigning its members, and then created another based on the same principle. It was grandiloquently styled the Interdepartmental Coor- dinating and Planning Staff (ICAPS).5/ ICAPS was never able to'accomplish much in the way of effective interdepartmental coordination. There were two reasons for its failure. One was that its members had had little or no practical experience as intelligence officers; they did not really understand the business. The other was the determined resistance of the IAC and its representative Standing Committee - 6 - SECRET Approved for Release: 261-8/67/24 C06669377 Approved for Release: 2018/07/24 C00669377 0EA-11s.E. 1 to ICAPS' constant effort to assert the superior authority and prerogative of the DCI. The energies of ICAPS were spent in haggling with the Standing Committee over the verbal terms of draft directives that in the end were compromised into ambiguity or meaninglessness. Thus frustrated in its true func- tion, ICAPS turned instead toward giving direction to the line offices of CIA in the name of the DCI and supposedly in the interest of interdepartmental coordination .6/ The NSC Survey Group noted, in 1948, that the responsibility of the ICAPS members Whether to the DCI or to the Departments) was ambiguous, that they were not well qualified for their task, and that they tended to interfere with the operations of the line offices. It recommended that ICAPS be "reconstituted" as a staff responsible solely to the DCI and devoted solely to interdepartmental coordination.7/ That recommendation excited derision in CIA, and even in the IAC, because that was what ICAPS was already sup- posed to be. Its only effect was to cause Hillenkoetter to delete "Interdepartmental" from the name of ICAPS, - 7 - SECRET 7, Approved for Release: 2018/07/24 C0066937r / .47 Approved for Release: 2018/07/24 C00669377 SECRET making it COAPS (the DCI's personal staff for "Coor- dination, Operations, and Policy"). That Change enabled the same incompetent group to interfere the more readily in the affairs of the line office t of I CIA -- but the sands were already running out.* Smith and Jackson had no use whatever for ICAPS, alias COAPS. They even refused to receive the respects of James Reber, the newly appointed Chief of COAPS.** For a time Jackson himself performed the functions of COAPS, personally planning the reorganization of CIA and discussing its terms and implications with the members of the IAC, especially the State Department member. Jackson even functioned personally as the Secretary of the LAC, an incidental duty of the Chief of COAPS. * ICAPS became COAPS on 1 July 1950, only three months before General Smith took office as DCI. ** Reber, 39 in 1950, was a native of Elizabethtown, Pennsylvania, and held a Ph.D. in International Rela- tions from the University of Chicago (1939). He entered the Department of State in 1943 and in 1950 was Chief of the Committee Secretariat in the office of the Secretary. State sent him to relieve Prescott Childs as Chief of COAPS on 1 October 1950, only six days before Smith and Jackson took office. - 8 - SECRET -_Approved for Release: 2018/07/24 CO0669377 - _ ;12 Approved for Release: 2018/07/24 C00669377 SECRET .� , In early November (after about a month in office) Jackson summoned Reber and told him that General Smith wished to appoint an ambassador or a general to his position:- If Reber were to be retained, however-, how would he propose to proceed? Reber replied that, first, he would resign from the Department of State; the chief of the DCI's coordinating staff should be the DCI's own man. Second, he would request the immediate relief of all other members of COAPS, except any whom he might choose to retain and who might be willing to transfer to CIA; the entire staff should be the DCI's men. Reber managed also to suggest that in the Committee Secretariat he had had more practical experience in interdepartmental coordination than any ambassador or general would be likely to have had.8/ Jackson was impressed by Reber's good sense, right attitude, and address. He abolished COAPS on 1 December 1950, and on 13 December announced that Reber would serve as Acting Assistant Director for Intelligence Coordination and Secretary of the IAC. In May 1951, General Smith struck the "Acting" from Reber's title. - 9 - SECRET .1 _pproved for Release: 2018/07/24 C00669377?-.. 4,4 Approved for Release: 2018/07/24 C00669377 SECRET The Office of Intelligence Coordination consisted only of Reber and two assistants9/; it was really a small staff section rather than a line office. Reber took the position that working liaison and coordina- tion with the Departmental agencies was, properly, a function of the line offices directly concerned, rather than of OIC.10/ With regard to problems of coordina- tion requiring IAC action, he convened interdepartmental ad hoc committees with himself in the chair; the Stand- ing Committee of the IAC was abolished.11/ On these occasions Reber followed the example of General Smith's approach to the IAC,* recognizing that Departmental interests were entitled to consideration and respect. He bore in mind also Jackson's, dictum that CIA was not required to do all the coordinating that was done, so long as the DCI was in a position to assure himself that it was being done well. 12/** See Volume II, Chapter II; ** For an example of the application of this principle in practice, General Smith deferred to the sensitivities of the Pentagon by appointing an Army G-2 officer to be the first Chairman of the Watch Committee (see p. 139, below). ICAPS would have attempted to insist that the chair belonged to CIA. - 10 - SECRET � .,-Approved for Release: 201870/24 C60669377' Approved for Release: 2018/07/24 C00669377 SECRET In October 1951, Reber set forth more fully the six principles that governed his approach to interde- partmental coordination. He held that (short of an appeal to the NSC) CIA must achieve such coordination by leadership, stimulation, and persuasion, and that the primary role and expert knowledge of the substan- tively responsible agency must be recognized. Actual coordination on specific problems should be decentral- ized as far as possible to the offices and agencies having functional responsibility, but the DCI must retain a general supervisory role, with the ADIC as his assistant for that purpose. In the end, the ef- fectiveness of interdepartmental coordination would depend on the personal relations of the intelligence chiefs themselves, especially in the IAC. In general, a flexible, practical attitude would be far more ef- fective than a legalistic, doctrinaire approach.13/ That was sound doctrine. It was also the re- verse of what the ICAPS .approach had been. In general, it worked well -- given the entirely new DCI-IAC relationship that General Smith had created.* * An exceptional case is noted in Volume II, pp. 44-46. SECRET _ .''.Approved for Release: 2018/07/24 C00669377"' Approved for Release: 2018/07/24 C00669377 SECRET - On 1 January 1952 the OIC was subordinated to the DDI. Loftus Becker then superseded James Reber as the DCI's principal assistant for interdepartmental intelligence coordination.* Becker considered absorb- ing the small OIC into his personal staff, but refrained from doing so, probably in order not to diminish Reber's standing as an Assistant Director, which was of value in his work as an external representative and negoti- ator.** �. See Volume II, pp. 90-91. ** On 1 February 1954, Richard Bissell was appointed Special Assistant to the DCI for Planning and Coordin- ation, and on 1 July 1954 he absorbed the DDI's respon- sibilities for interdepartmental coordination. OIC was then abolished, and its personnel were transferred from the DDI to the Special Assistant. - 12 - SECRET Approved for Release: 2018/07/24 C00669377 r SECRET III. The Office of National Estimates The other explicit function of the Director of Central Intelligence was to accomplish the correlation and evaluation of intelligence relating to the national security, and the appropriate dissemination within the Government of the resulting strategic and national policy intelligence.14/ That formulation, in the President's letter of 22 Jan- uary 1946, made it clear that the intelligence to be disseminated was the product of the DCI's correlation and evaluation.* The passage was commonly understood to refer only to the production of national intelli- gence estimates. Any other production of finished intelligence by CIG/CIA was thought to come under another provision of the President's letter, to per- form "services of common concern."16/ This distinc- tion, clear in the minds of Admiral Souers and his * In the National Security Act of 1947, this lan- guage was changed to read "to correlate and evaluate intelligence relating to the national security, and provide for the appropriate dissemination of such intelligence."15/ The revised language was less clear on the point in question, but there was no intent to change the meaning. See Volume I, pp. 70-71. - 13 - SECRET :Approved for Release: 2018/07/24 C00669377':� Approved for Release: 2018/07/24 C00669377 SECRET colleagues, was lost in General Vandenberg's omnibus Office of Research and Evaluation, alias Reports and Estimates.* A. The Central Reports Staff To perform this estimating function, Admiral Souers created a Central Reports Staff (CRS) in February 1946, based on Ludwell Montague's plan for a "National Estimates Staff,"** with an authorized strength of 17/ The immediate task of the CRS was to produce an all-sufficient daily summary of current intelligence, which was what President Truman particularly wanted from his Central Intelligence Group, but it was anticipated that eventually its principal function would be the drafting of national intelligence estimates for DCI-IAB consideration in accordance with the Lovett Report's doctrine -- that See Volume I, pp. 56-57. ** The change in name was probably made to conform to the name of the Central Planning Staff and to allow for the Staff's current intelligence function. It was unfortunate in that it deemphasized its primary es- timating function. - 14 - SECRET -Approved for Release: 2018/07/24 C00669377,,:,. 444 Approved for Release: 2018/07/24 C00669377 SECRET is, in coordination with Departmental representatives, but with a power of decision vested in the Chief, CRS, at his level, and in the DCI at his, subject to the notation of any dissents.* The actual strength of the CRS never exceeded men and girls, and it never got beyond the produc- tion of current intelligence. It was never able to obtain from the Departments the assignment of men of sufficient experience and judgment to produce thought- ful estimates.** Consequently it produced none, and thus never set a precedent for the interdepartmental coordination of national intelligence estimates. B. The Failure of ORE For Souers's concept of a small, select estimates staff dependent on Departmental research support, * See Volume I, pp. 28-31, 36-38, and 47-50. Montague, who had drafted JIC 239/5 and NIA Directives No. 1 and No. 2, was Chief of the Central Reports Staff. ** Actually, very few such men were available in the Departments. During the War the military intelligence agencies had been manned for the most part by reserve officers who in 1946 were impatient to return to their homes. Similarly, the professorial types in State (in the former R&A Branch of OSS) were generally impatient to return to their universities. The few qualified men who remained were not being given away to CIG. � 15 � SECRET ,.yApproved for Release: 2018/07/24 C00669377,,, Approved for Release: 2018/07/24 C00669377 SECRET General Vandenberg substituted the concept of an en- tirely self-sufficient Office of Research and Evalu- ation with a strength of 2,000. Vandenberg's departure, however, arrested the growth of ORE at about Thus ORE conformed neither to Souers's concept nor (b)(1) to Vandenberg's. It continued to pretend to the self- (13)(3) sufficiency that Vandenberg had intended it to have, but lacked the manpower and the intellectual resources required to make good that pretension. There were four reasons for the failure of ORE. One was its lack of a clearly defined and generally understood mission.18/ Another was its lack of a pertinently experienced and forceful Assistant Direc- tor.* A third was the generally poor quality of ORE * In order to gain favor in the Department of State, Vandenberg solicited the assignment of a Foreign Serv- ice Officer to supersede Montague as ADRE. The senior (+Alit- FSO thus obtained knew nothing of intelligence research or estimates production and had no interest in taking charge of ORE. Within nine months he contrived an escape and was replaced by a State appointee who dared 6,,,t4,,tt ! not assert his authority over his Branch chiefs. They were seconded by the several Departments and in no way beholden to him. Montague remained in ORE as Chief of the Intelligence Staff, 1946-47, and then as Chief, Global Survey Group.19/ - 16 - SECRET for Release: 2018/07/24 C16669377' 4's�41,SlatA , Approved for Release: 2018/07/24 C00669377 SECRET mkt' 104:17 - personnel.* When ORE was recruiting toward 2,000, any body able to reach the door was admitted, but ORE had little more success than CRS in recruiting men for discernment and mature judgment. And the fourth reason for ORE's failure was the hostility and obstructionism of the Departmental intelligence agencies, antagonized by Vandenberg and ICAPS. As Chief of the Intelligence Staff, ORE,** Montague strove to carry out the original conception of how national intelligence estimates should be produced, but he was frustrated by Admiral Inglis. Inglis demanded that Vandenberg make Montague stop calling for Departmental contributions. He wanted ORE to work for ONI by producing basic intelligence as a "service of common concern." He did not want . ONI to have to work for ORE. Vandenberg was delighted * Of course there were individual exceptions to this generalization. In 1950, ONE was well staffed with men selected from ORE, and other ORE men made their mark in other offices. ** The Intelligence Staff had charge of all ORE intelligence production until July 1947. - 17 - SECRET :. Approved for Release: 2018/07/24 C00669377 101443' Approved for Release: 2018/07/24 C00669377 SECRET to comply with Inglis's demand, for Inglis was pro- viding CIG's need for independent research capabil- ities.20/ When Montague called for the assignment of full- time IAB representatives to the Intelligence Staff, in accordance with NIA Directive No. 2, Admiral Inglis insisted that they could be only part-time "messenger boys."*22/ These designated representatives not only refused to occupy offices in ORE, but even refused to meet occasionally with the Intelligence Staff to discuss terms of reference and draft estimates. At their insistence, ORE drafts were sent to them by courier and, after intolerable delays, they sent back the generally scornful and captious written tcomments o the Departmental analysts. Thus they functioned only as post offices between ORE and * Montague 's idea was-that, if the IAB represent- atives participated regularly in the work of the Intelligence Staff, they could and would serve also as advocates of the semi-coordinated ORE draft estimates in their respective agencies, as had the members of the Senior Team of the JIS with respect to JIC estimates./ - 18 - SECRET .� roved for 'Release: 2018/07/24 C00669377,,.--: .� , Approved for Release: 2018/07/24 C00669377 SECRET those analysts.* Until July 1948 there was never any joint discussion of draft estimates such as would have made it possible to achieve mutual under- standing and perhaps agreement.**. ORE accepted as much, or as little, as it pleased of these working- level comments and then sent its unilaterally re- vised draft to the members of the IAC, separately, for concurrence, dissent, or comment.*** Even the acceptance of all working-level proposals did not guarantee the concurrence of an IAC member, who might raise issues never before mentioned. Normally the IAC did not meet to discuss the substance of an estimate.**** ORE either adjusted its text to * These representatives were "policy" men without substantive competence to discuss and judge the issues raised by the analysts, even if they had been willing to meet. ** The two exceptions to this statement were a meeting with IAB representatives on ORE-1 (see Volume I, p. 59) 23/ and the joint ad hoc committee convoked in March 1VT8 (see Volume II, p. 26).24/ After the adoption of DCID-3/1, 8 July 1948, such working-level meetings were regularly held, but by that time the attitude of mutual disregard described in this para- graph had become firmly established. *** This procedure had been prescribed by Admiral Inglis (see Volume 1, p. 61). **** It did meet for this purpose on two occasions. In both cases the circumstances were extraordinary. - 19 - SECRET 'Approved for Release: 2018/07/24 C00669377 k�- l' :Iir,�'� ' ' Approved for Release: 2018/07/24 C00669377 SECRET satisfy each IAC member individually or it elected to accept a dissent. The ADRE rarely saw the text of an estimate until it was disseminated in print. The DCI never did.25/ The NSC Survey Group condemned ORE for failing to enlist the effective participation of the IAC agencies in the production of national intelligence estimates.26/ It was Admiral Inglis' and his colleagues in the IAC who refused such participation when ORE sought it. The resulting procedures for the "coor- dination" of estimates could hardly have been more rigid, indirect, ineffective, and frustrating to ORE. They provided neither true independence of action and judgment for ORE, as a national agency free of departmental. bias, nor a true collective effort in the national interest. Despite these hindrances, ORE did produce, in response to NSC requirements, some few estimates as well considered and well coordinated as any later produced by ONE.* Such estimates, however, were * These estimates were produced under Montague's direction and control as CIA member of the NSC Staff and therefore the attorney for the NSC Staff (footnote continued on following page) - 20 - SECRET ,Approved for Release: 2018/07/24 C00669377:4, Approved for Release: 2018/07/24 C00669377 SECRET certainly not typical of ORE's intelligence produc- tion. Otr: clAW !rt. , After the Intelligence Staff was dissolved, in July 1947, no-one exercised effective cential direc- tion and control over the intelligence production of ORE.* Each Branch Chief suited himself in that re- gard. The result was a diversion of effort away from production addressed to the level of the President and the NSC, a standard that the Intelligence Staff had endeavored to maintain, and into current and de- scriptive reporting at a level more commensurate with the limited capabilities of ORE's inexperienced analysts. Some of this trend was responsive to new requirements for intelligence support for OPC and the NSRB1** but most of ORE's intelligence production within ORE.27/ William Jackson seems not to have been aware of them. In the report of the NSC Survey Group he cited the work of the joint ad hoc committee of March 1948 as the only example of a properly pre- pared national intelligence estimate.28/ * The Assistant Director assumed the functions of the Chief, Intelligence Staff, but did not exercise them.29/ ** The National Security Resources Board, the Chair- man of which was a statutory member of the NSC, de- pended on ORE for the satisfaction of its extensive requirements for intelligence support. - 21 - SECRET � .. . Approved for Release: 2018/07/24 C00669377 SECRET was self-initiated. It included a proliferation of duplicatory current intelligence publications intended only for internal or, at most, for working-level dis- tribution. These publications were said to be needed in order to provide training for junior analysts. They also helped morale by giving every analyst the satisfaction of seeing his work published, regardless of whether it was worthy of high-level consideration. The greater part of ORE'S work came to be done for no better reason than its own satisfaction. Moreover, even its more serious undertakings tended increasingly to be published as uncoordinated Intelligence Memoranda, in order to avoid the vexations and delays of inter- departmental coordination. These "memoranda" were generally descriptive rather than analytical in content; some of them ran to as many as 100 pages in length. Finally, most of those papers that ORE did coordinate as national estimates were actually a m�nge of cur- rent and descriptive reporting, with little, if any, analytical or estimative content. 30/ The comment of the NSC Survey Group on this situation was that ORE had conspicuously failed to � 22 � SECRET .ry .4 - � -..7:Approved for Release: 2018/07/24 C00669377.:- 1: Approved for Release: 2018/07/24 C00669377 SECRET produce national intelligence estimates and instead had busied itself with producing "miscellaneous re- ports and summaries which by no stretch of the imag- ination could be considered national estimates."31/* C. Five Proposals for Remedial Action The situation described above still existed when Bedell Smith and William Jackson took office in October 1950. They were then cognizant of five separate proposals for remedial action, made by John Bross, William Jackson, John Magruder, Ludwell Montague, and William Donovan (in chronological order). These proposals were similar in most respects, although there were significant differences among them. All recommended the creation of a well-qualified body to be concerned solely with the production of national intelligence estimates. Each contributed in some respect to the solution devised by Smith and Jackson, the creation of the Office of National Estimates. * ORE held that anything that it chose to produce was, ipeo facto, national intelligence. - 23 - SECRET cApproved for Release: 2018/07/24 C00666377 �..7`7",--k-r,-4-f-et-r- � �-tet,oct--:, ; $4, Approved for Release: 2018/07/24 C00669377 SECRET During the summer of 1948, John Bross* inves- tigated CIA for the Eberstadt Committee** and came to the following conclusion: The greatest need in CIA is [for] the establishment at a high level of a small group of highly capable people, freed from administrative detail, to concen- trate upon intelligence evaluation. The Director and his assistants have had to devote so large a portion of their time to administration that they have been unable to give sufficient time to analysis and evaluation. A small group of mature men of the highest talents, having full access to all information, might well be released completely from routine and set to thinking about intelligence only. Many of the greatest failures in intelli- gence have not been failures in collection, but failures in analysing and evaluating correctly the information available.32/*** * Bross, a New York lawyer, had been in OSS. Later he was recruited by Wisner for OPC. From 9 September 1963 until his retirement in January 1971 he was Deputy to the DCI for National Intelligence Programs Evalua- tion (NIPE). ** The Commission on Organization of the Executive Branch of the Government ("the Hoover Commission") established a Committee on National Security Organiza- tion headed by Ferdinand Eberstadt. That Committee's principal recommendation was for the creation of the Department of Defense. *** Bross had consulted Montague. His conception of a small group of mature men released from admin- istrative responsibilities and set to thinking about the substance of intelligence was derived from Montague's conception of the role of the Global Survey Group within ORE. 33/ - 24 - SECRET ..Approved for Release: 2018/67/24 C60669377 fig Approved for Release: 2018/07/24 C00669377 SECRET Bross's concept was reflected in the recommenda- tion of the Eberstadt Committee that there be estab- lished in CIA, at the top echelon, an evaltiatibtrbFarcr or section composed of competent and ex- perienced personnel who would have no administrative responsibilities and whose duties would be confined solely to intel- ligence evaluation.34/ Bedell Smith had certainly read this recommenda- tion by the Eberstadt Committee. ' It is likely that he had read also Bross's more extended treatment of the subject.* The remedy proposed by William Jackson in the report of the NSC Survey Group was similar, though less explicit. It was premised upon a return to the distinction understood in early 1946, between the production of national intelligence estimates and the performance of "services of common concern."** Out of ORE there should be created two bodies: "a small, high-level Estimates Division," concerned * * See Volume II, p. 16, and p. 38, below. See p. 13, above. � 25 � SECRET 1 Approved for Release: 2018/07/24 C00669377 Approved for Release: 2018/07/24 C00669377 SECRET solely with the production and coordination of national estimates, and a "Research and Reports Division" to perform such research services as it might be agreed could best be performed centrally. The remainder of ORE's activities -- and personnel -- should be dis- carded.35/ The text of the Survey Group's report shows that, when Jackson proposed this "small, high-level Estimates Division," he had in mind the "small organization of highly qualified individuals" that Admiral Souers had intended the Central Reports Staff to be.36/ Montague had spent an afternoon with Jackson explaining his "National Estimates Staff" (CRS) concept and how it had been lost in ORE.37/ Montague was pleased, of course, when the NSC Survey Group adopted his proposal, first made in 1946,* but he feared that the Group's emphasis on the "collective responsibility" of the IAC would * See p. 13, above. Since then Montague had pro- posed the same plan three times -- in October 1946, April 1947, and August 1947 -- without effect.38/ � 26 � SECRET .. Approved for Release: 2018/07/24 C00669377.: ... 4i Approved for Release: 2018/07/24 C00669377 SECRET 7. nullify the Lovett doctrine* and reduce national estimates to the level of joint estimates.39/ In approving NSC 50, however, the NSC rejected the idea of "collective responsibility" while endorsing the idea of "a small, high-level Estimates Division" and a separate "Research and Reports Division."40/ The direction given by the NSC could have been met by making the Global Survey Group of ORE the nucleus of a "National Estimates Staff" directly subordinate to the DCI -- which is, in simple terms, what finally was done in November 1950.** Within ORE it was generally supposed that that was what the NSC Survey Group had intended. Admiral Hillenkoetter, however, left it to ORE to decide how to comply with the NSC's direction*** -- and ORE had no interest in reforming itself.41/ The "organizational realignment" that the ADRE proposed, and that IcAps and Hillenkoetter accepted See Volume I, p. 48. See p. 54, below. See Volume I, pp. 97_98. - 27 - SECRET .4fApproved for Release: 2018/07124C00669377 Approved for Release: 2018/07/24 C00669377 SECRET without question, was designed to preserve ORE'S existing structure and practices while pretending to comply with NSC 50. Within the six regional divisions of ORE,* the editors, whose function it was to render into acceptable English the scribblings of the analysts, were solemnly declared to be divi- sionalestimates staffs" producin4 "high-level estimates" (as well as all the other miscellaneous publications of their divisions). The Assistant Director's routine administrative meeting with his Division Chiefs was declared to be the "Estimates Production Board" (although it never considered the substance of any estimate). Three odd elements of ORE were declared to be the "Central Research Group" (although these disparate elements never had a common chief and never functioned as a group),m42/ Thus * These divisions had previously been called branches, as on' p. 21, above. ** They were the Map Division (a specialized research and production unit), the NIS Division (an editing and coordinating mechanism without research capabilities), and the General Division (which handled special intel- ligence). - 28 - SECRET Approved for Release: 2018/07/24 C00669377-$.;,11: att5W Approved for Release: 2018/07/24 C00669377 SECRET the prescribed words were used, but nothing whatever was changed.* CIA's obvious refusal to comply with the intent of NSC 50 as regards �RE while pretending to have done so, provoked John Magruder's staff study, alias "the Webb proposals."** Magruder's draft NSC direc- tive provided for the establishment in CIA (not in ORE) of a "National Intelligence Group" to be com- posed of a "National Estimates Staff" and a "Current Intelligence Staff." The strength of the group was not to exceed 100, of whom no more than 20 might be from the departmental intelligence agencies; the rest would be CIA employees. The chief of the group, representing the DCI, would be advised and assisted by full-time representatives of the members Of the IAC. These IAC representatives would play an active part in framing terms of reference, obtaining respon- sive and timely departmental contributions, and * Montague dissociated himself in writing from any responsibility for this palpable fraud.43/ ** See Volume I, pp. 101-103. - 29 - SECRET -Approved for Release: 2018/07/24 C00669377 -f , Approved for Release: 2018/07/24 C00669377 SEUK.E.1 reviewing draft estimates. The members of the IAC would themselves participate actively in advising the DCI on the initiation and adoption of estimates.44/ Magruder's plan would certainly have satisfied the requirement of NSC 50 for a small estimates office distinctly separated from any CIA research activity. Incidentally, it was in effect a revival of Admiral Souers's projected Central Reports Staff, which would have had both current intelligence and estimates branches under a chief advised by full-time IAB representatives.45/ Thus Magruder's plan may have been derived from NIA Directive No. 2 and CIG Administrative Order No. 3, although Magruder was certainly capable of devising an identical plan for himself. Montague's plan of 1946 and Magruder's plan of 1950 were both derived from a common source, the known intent of JIC 239/5, JCS 1181/5, and the Presi- dent's letter of 22 January 1946. John Magruder had been a stroqg advocate of JIC 239/5. He was probably responsible for Robert Lovett's exposition of the doctrine that the DCI - 30 - SECRET ET !oPro Approved for Release: 2018/07/24 C00669377 SECRET should have the deciding voice in the IAC.* He was not an enemy of the DCI's prerogative -- rather the contrary -- but he was outraged by the contumacy of CIA as represented by ORE, ICAPS, and Hillenkoetter. That outrage no doubt affected the tone and style of his original staff study. The "corrected copy" (from which the preceding paragraph is derived) was probably truer to his essential thought. He was making an earnest effort to obtain for the depart- mental agencies an effective voice in national in- telligence estimates, but also to ensure that they made an effective contribution to such estimates -- which they had not been doing. Because he sought an active role for the departmental agencies, he was denounced by CIA as an advocate of the "board of directors" concept46/ -- which he certainly was not. Such was the state of mutual sensitivity and incom- prehension that �existed between CIA and the depart- mental agencies when General Smith.took office. In late August 1950, Lawrence Houston presented both versions of Magruder's staff study to General * See Volume I, pp. 41-42 and 48. � 31 � SECRET :;i44111*..ill,RApproved for Release: 2018/07/24 C00669377 Approved for Release: 2018/07/24 C00669377 SECRET Smith as evidence of a current effort on the part of State and Defense to impose-their will on the DCI, curbing his independence of judgment.47/ On 3 Octo- ber Jackson recommended Magruder's "corrected" version to Smith as "sound."48/ Smith adopted the essential substance of Magruder's proposal, though with impor- tant variations. One of William Jackson's first acts as DDCI was to call on DeForest Van Slyck for a plan for an office of estimates. Van Slyck was a personal friend of Jackson. He was also Montague's deputy as Chief of the Global Survey Group, ORE. He invited the partic- ipation of Theodore Babbitt, ADRE, as a matter of courtesy, and of Montague, because he knew that Montague already had a plan in mind. What Jackson got on 10 October 1950 was the sixth edition of Montague's plan of 1946 for a "Na- tional Estimates Staff." As such, this plan was essentially identical with Magruder's, but it went into greater organizational and procedural detail. In particular, Montague elaborated every procedural step in the production of a national intelligence - 32 - SECRET �,,,Approved for Release: 2018/07/24 C00669377: Approved for Release: 2018/07/24 C00669377 SECRET estimate, from the perception of an NSC Staff re- quirement through final adoption by the DCI with the advice and concurrence (or dissent) of the members of the IAC. And Montague set forth explicitly the Lovett doctrine,* as Magruder had not.49/ Furthermore, Montague warned Jackson that in the circumstances of 1950 this plan could not be made effective unless and until positive action was taken to ensure the satisfaction of four prior conditions, to wit: (1) Action to make sure of the avail- ability of research support from the de- partmental agencies adequate as to both timeliness and content. "This condition cannot be met at present." (2) The establishment of a research office in CIA capable of providing like support in fields of "common concern" (scientific, economic, geographical). (3) The recruitment of requisite sen- ior personnel. "The contemplated Office cannot be adequately manned with personnel now in CIA." (4) Thorough indoctrination of the IAC agencies in the new cooperative con- cept and a new start in relations with them. "This plan will not work except on a basis of mutual confidence and coop- eration in the national interest."50/ * See Volume I, p. 48. - 33 - SECRET Approved for Release: 2018/07/24 000669377 _ Approved for Release: 2018/07/24 C00669377 SECRET Montague's plan provided the basis for the procedure adopted by the LAC on 20 October* and for the initial organization of the National Estimates Staff** -- but not for the Board of National Estimates. His conditions were met during the next few months, except the first, which was only half met. The de- partmental agencies became willing to render research support, but the doubtful reliability of their con- tributions remained a continuing problem. On 13 October 1950, William Donovan urged upon Bedell Smith, apparently not for the first time, the importance of establishing in CIA an "Evaluation Group" composed of men of "experience and imagination and constructive intellect." Donovan suggested that 'the group might consist of a mature scholar (e.g., William Langer), a strategist familiar with the uses and capabilities of all of the various military services, a scientist with current knowledge of new inventions, and two or three broad-gauged men of affairs. (No * * See Volume II, pp.34-35. See pp. 54-56, below. - 34 - SECRET _ . :Approved for Release: 2018/07/24 C00669377 �ro,""" � .11k2 � :;�;, 1 Approved for Release: 2018/07/24 C00669377 SECRET professional intelligence officers need apply.) A "working committee" familiar with "the skills of research and analysis" would "collate the informa- tion" for submission to the Group, but "final evalua- tion" would be the group's responsibility. To im- pose that duty on the analysts would be "like a cashier being his own auditor."51/* Donovan conceived of this "Evaluation Group" as being at the apex of a CIA "R&A Branch" obviously analogous to the R&A Branch in OSS -- or to a properly manned and competent ORE! It should be remembered that William Donovan never had any use whatever for the interdepartmental coordination of estimates -- in contrast to William Jackson, for whom such coor- dination was the primary consideration. * In August 1941, when Donovan established the Research and Analysis Branch, COI (later OSS), he put it under the direction of a collegial body of eminent scholars called the Board of Analysts. He probably intended this board to review and pprove the intelligence production of R&A, but itInever, functioned in that wayv.52/ Donovan's proposal of 13 October 1950 may have been a modified revival of his original idea of such a board. - 35 - SECRET Approved for Release: 2018/07/24 C00669377,--... Approved for Release: 2018/07/24 C00669377 SECRET In arguing for the "collective responsibility" of the IAC, Jackson contended that no one man could bear sole responsibility for a national intelligence estimate. Bedell Smith could and did accept such personal responsibility -- but he may have seen in Donovan's proposal a way to obtain for himself the reassurance of the collective judgment of a highly qualified group independent of the IAC, free of departmental bias or other institutional predilec- tions,* and dedicated solely to the service of the DCI in his role as the deciding voice in national estimates.** Bedell Smith never imposed his personal view on any estimate, but on one notable occasion he did adopt, as his personal position, the position recommended to him by his board, in preference to the majority view of the IAC:53/*** * Such as, for example, a predilection in favor of information collected by OSO, or of the findings of OSI's research. ** Smith can have had no other reason to create the Board of National Estimates. The interdepartmental coordination of opinion contemplated by Jackson could have been accomplished without it. The creation of the board implied the exercise of independent judgment by the DCI. *** See pp. 74-75, below. - 36 - SECRET " 774,Zes_rit�,.. :Approved for Release: 2018/07/24 C00669377 Approved for Release: 2018/07/24 C00669377 SECRET D. The Board of National Estimates At his first formal meeting with the IAC, held on 20 October 1950, General Smith announced that, at the earliest practicable date, he would establish in CIA an Office of National Estimates. In his jud=ment (and intention) that office would become "the heart of the Central Intelligence Agency and of the national intelligence machinery."54/ It would include a "panel" of 5 or 6 outstanding men. Smith was trying to get Admiral Leslie Stevens* to head the panel and General Clarence Huebner** to be a member of it, possibly the head if Stevens were not available.55/*** * Stevens was then Deputy Director of the Joint Staff for Subsidiary Plans, a position that he proved to be unwilling to leave. Smith had known him as Naval Attache in Moscow. ** At the time of his retirement in 1950, Huebner was the commanding general of all US forces in Europe. Smith had known him as the forceful combat commander of the 1st Division and V Corps. *** Jackson omitted any reference to this "panel" in his official minutes of that meeting -- which suggests that he did not want to emphasize the idea to the mem- bers of the IAC. Smith's statement was recorded, how- ever, in Colonel Howze's notes for General Bolling. Howze seems to have been more impressed by the names of Stevens and Huebner than by the significance of the creation of such a "panel." � 37 � SECRET Approved for Release: 2018/07/24 C00669377 SECRET The "panel" was, of course, the Board of Nation- al Estimates. Smith's announcement regarding it on 20 October evidently reflected his adoption of the recommendation in Donovan's letter of 13 October.* But when Jackson explained the idea to Montague a few days later, he used the language of Bross's re- port to the Eberstadt Committee in 1948,** Montague was struck by that because it was also the language of his own description of an ideal Global Survey Group, written in 1947. Thus the idea of the Board of Na- tional Estimates was derived from both Donovan and Bross. It was this idea that made the Office of Nation- al Estimates significantly different from, and superior to, any organization that had yet been devised for the production of intelligence estimates for use at the highest level of government. Indeed, more than 20 years later, the Board of National Estimates, as a group of experienced senior officers freed from all * The number of members specified (5 or 6) was iden- tical with the number suggested by Donovan. ** See p. 25, above. - 38 - SECRET . . Approved for Release: 2018/07/24 C00669377 -- 0910040 0444 Approved for Release: 2018/07/24 C00669377 SECRET administrative responsibilities, distractions, and biases, in order to concentrate on the substance of intelligence, is still (1971) unique in all the world. On 20 October 1950, General Smith had Leslie Stevens or else Clarence Huebner in mind to head this board, but in the event it was William Langer who was appointed to be Assistant Director *for National Es- timates and Chairman of the Board of National Estimates.* Before 20 October, Smith had been interested in ob- taining Langer's services in some unspecified capacity, presumably in ONE; Donovan's letter of 13 October had been prompted by a telephonic inquiry from Smith re- garding Langer.56/ Who, then, had proposed Langer to Smith? Donovan evidently had not, although he heartily seconded the nomination. Neither had William Jackson, who had a different idea.** It might have been Allen Dulles or Park Armstrong. * Stevens was unwilling to accept the position. Huebner would come only as a consultant. That status was then deemed necessary in order to protect his military retired pay and perquisites. * * See p. 42, below. - 39 - SECRET Approved for Release: 2018/07724 C00669377,r 1 Approved for Release: 2018/07/24 C00669377 SECRET Langer, 54 in 1950, was a native of Boston and a Ph.D. of Harvard University (1923). Since 1936 he had been Coolidge Professor of History at Harvard. He was a member of the Board of Analysts, COI, 1941-42, and Director of the Research and Anal- ysis Branch, OSS, 1942-46.* For two months in 1946 he was Special Assistant to the Secretary of State and the State Department member of the Intelligence Advisory Board. Langer was embarrassed by Smith's invitation to come to CIA. He had just returned to Harvard after a nine-year absence**; he was unwilling to ask for further leave. Smith, however, appealed directly to the President of the University, stress- ing, no doubt, the state of national emergency and the possible imminence of World War III.*** * Including seven months after R&A's transfer to State. ** Since 1946, he had been working on The Challenge of Isolation and The Undeclared War for the Council on Foreign Relations. *** This appeal had been used by President Truman to persuade Smith himself to become DCI. Smith used it to persuade several reluctant men to come to his aid at CIA. See Volume II, pp. 7 and 10. - 40 - SECRET - . � �Approved for Release: 2018/07/24 C00669377-,,, Approved for Release: 2018/07/24 C00669377 SECRET Grudgingly, Langer was granted leave for one more year.57/ He took office on 8 November. The estab- lishment of ONE was formally announced on 13 November. Until 22 November, however, Montague remained in charge of the production of national intelligence estimates. 58/ Bedell Smith took a great personal interest in the Board of National Estimates, selecting its members himself with care. (They were to be the counsellors on whom he would rely in his lonely responsibility for the substance of national estimates.) He fre- quently consulted their judgment, apart from their formal submission of estimates, and he probed to discover whether any significant divergence of opinion existed among them, concealed by their consensus.59/ In addition to Huebner and Langer, three other men were designated from the beginning to be members of the Board of National Estimates. They were Sherman Kent, Ludwell Montague, and DeForest Van Slyck. Montague and Van Slyck were already on deck. Kent was in Washington as a consultant as early as 20 November,60/ but his obligations to Yale University - 41 - SECRET .11461,44414-.4,--Trai. --,t,Approved for Release: 2016/07/24 C00669377i Approved for Release: 2018/07/24 C00669377 r44:1! � 7;P: prevented him from accepting a full-time appointment until 12 January 1951. Kent, 47 in 1950, was a native of Chicago, a Ph.D. of Yale University, and Professor of History at Yale. He had been a section and division chief under Langer in the R&A Branch of OSS, and Langer's deputy and successor as Director of intelligence research in State. During the fall of 1946, he was a member of the faculty at the National War College. During the first nine months of 1947 he wrote Stra- tegic Intelligence, as a Guggenheim Fellow.61/ There is reason to believe that Kent had been Jackson's choice to be Assistant Director for National Estimates, but that Jackson's intention had been temporarily frustrated by Smith's appointment of Langer. Jackson never approved of Langer.62/ He esteemed Kent as an outstanding authority on intel- ligence.*63/ When Kent reported for full-time duty, * They became acquainted in 1949, when Jackson reviewed Strategic Intelligence for the New York Times. Jackson opened that book with prejudice, expecting nothing much from a professor and less from one who had served in OSS. He was agreeably surprised and greatly impressed. There- after Jackson excepted Kent from his generally poor opin- ion of professors. - 42 - SECRET ,111. � 'Approved for Release: 2018/07/24 C00669377 L. Approved for Release: 2018/07/24 C00669377 SECRET A. in January, he was made Deputy Assistant Director with Jackson's promise of the eventual succession./ Kent did succeed Langer as Assistant Director, on 3 January 1952.* Ludwell Montague, 43 in 1950, was a native of Richmond, a graduate of the Virginia Military Insti- tute, and a Ph.D. of Duke University. He had been Assistant Professor of History at V.M.I. when called to active duty in Army G-2 in 1940. He was the first Secretary of the US JIC, 1941-43, and senior Army member of the JIS, 1943-45; Assistant Director, CIG, in 1946; and Chief of the Intelligence Staff, ORE, 1946-47, and of the Global Survey Group, ORE, 1947-50. He had also been CIA member of the NSC Staff, 1947-50.65/ Concurrently with his appointment to the board, Montague was continued as the CIA member of the NSC * Kent held that office for 16 years, until his re- tirement on 1 January 1968. Langer became one of the "Princeton Consultants" (see pp. 50-51, below). He resigned that position in 1963, when he perceived that there might be a conflict of interest between it and his position as a member of the President's Foreign Intelligence Advisory Board. - 43 - SECRET -41. Approved for Release: 2018/07/2'4 C60669377: Approved for Release: 2018/07/24 C00669377 SECRET Staff. That had the advantage of keeping the board directly informed of the intelligence requirements of the NSC. Montague's particular concern was to ensure that national intelligence estimates were responsive to such requirements. Having just dis- tinguished himself before General Smith by produc- ing ORE 58-50 overnight and six fully coordinated NIE's in four weeks,* he became very impatient of the tendency of his academic colleagues to indulge in self-gratifying talk when decision and action were required. They considered their discussions of the profound issues of War and Peace to be more important than the immediate needs of the NSC, which they re- garded with disdain as merely bureaucratic.66/** Van Slyck, 52 in 1950, was a native of New York City and a Ph.D. of Yale University. After nine years as a member of the Yale history faculty, he quit the academic world in 1929 to seek his fortune in investment banking. Eventually he became See Volume II, pp. 27-29 and 36-38. ** See pp. 58 and 76-77, below. Montague remained a member of the Board for 20 years, until his re- tirement on 31 July 1970. - 44 - SECRET 41: %T. Approved for Release: 2018/07/24 C00669377: !.. _ Ims*' Approved for Release: 2018/07/24 C00669377 SECRET a partner in Fahnestock & Company, in charge of economic research. From May 1942 to July 1945, he served in A-2, at one time as chief of current intelligence, ultimately as a Far East specialist and estimator. During the last three months of his military service, July-September 1945, he was an executive assistant to the Commanding General, AAF, concerned with demobilization plans. After these wartime experiences, Van Slyck found it hard to settle down to humdrum investment banking. In March 1946, Kingman Douglass, then DDCI, persuaded him to come to CIG. Thereafter he served as Montague's deputy, generally minding the store in CIG/CIA while Montague went off to the NSC Staff and elsewhere. Jackson is likely to have selected Van Slyck for the board, not as an experienced intelli- gence officer, but as one whom he had known in New York as a "man of affairs."* He made an outstanding contribution as a remarkably perceptive critic of other men's drafts. He was particularly concerned * See p. 51, below. - 45 - SECRET Approved for Release: 2018/07/24 C0066937 F,,, . Approved for Release: 2018/07/24 C00669377 SECRET 1011PO4, to distinguish between what was reasonably well sup- ported by evidence and what was mere surmise.67/* Lieutenant General Clarence Huebner, 62 in 1950, reported for duty on 19 December, as a consult- ant.** He was a native of Kansas who had enlisted as a private soldier in 1910, had been commissioned in 1916, and had proved himself to be a forceful combat commander on D-day in Normandy. Personally esteemed by his colleagues, he had little to con- tribute to their discussions, but was useful in other ways. As a distinguished soldier, he enjoyed the confidence of the JCS as well as the DCI; he had privileged access to US military information that would otherwise have been inaccessible to the Board.*** And if any IAC representatives from the. Pentagon ever got out of hand, a growl from General * Van Slyck remained a member of the Board for 10 years, until his retirement on 29 October 1960. ** During General Smith's time, all of the military members of the Board were in this status, as was then deemed to be necessary in order to protect their re- tired pay and perquisites. * * * See Volume V, pp. 36_37. - 46 - SECRET .Approved for Release: 2018/07/24 C00669377.7-1;:_ _ Approved for Release: 2018/07/24 C00669377 SECRET .,�.' ;%.� Huebner was sufficient to restore good order and military discipline.68/* Calvin Hoover, 53 in 1950, was the sixth mem- ber of the Board to report in, on 20 December. A native of Illinois and a Ph.D. of the University of Wisconsin, he had been Professor of Economics at Duke University since 1927. He had served with Langer in the R&A Branch, OSS, 1941-44, and after that with the US Group, Control Council, Germany, in 1945. During 1948 he was Chief of Economic In- telligence for the Economic Cooperation Administra- tion in Europe. As a distinguished student of Soviet as well as German affairs, Hoover had a substantial contribution to make, but he remained a member of the Board for only eight months.** The seventh member to arrive, on 8 January 1951, was Maxwell Foster, a Boston lawyer esteemed * Huebner remained a member of the Board until 30 June 1954, when he was 66. ** Hoover resigned on 31 August 1951, but then be- came one of the "Princeton Consultants" (see p. 50, below). He resigned that position in December 1969, when he was 72. - 47 - SECRET ,!ikpProved for Release: 2018/07/24 C00669377- Approved for Release: 2018/07/24 C00669377 SECRET by Jackson as a skillful drafter, and also, no doubt, as a practical "man of affairs," He soon came to resent what he regarded as Langer's tendency to over- ride his colleagues, himself in particular,69/ and resigned on 30 June 1951, after less than six months. Raymond Sontag, 53 in 1950, was the eighth member of the Board to report for duty, on 16 Janu- ary 1951. He was a native of Chicago, a Ph.D. of the University of Pennsylvania, and Professor of History at the University of California at Berkeley.* He was a specialist in German foreign relations, particularly Nazi-Soviet relations. During 1946-49 he had been Chief of the German War Documents Project in the Department of State. Sontag was magisterial in his coordination of national intelligence estimates. He conducted the meeting with the IAC representatives as though it were a seminar and the representatives his students. Any of them who attempted to stick to his Departmental brief was made to look like an idiot. Having * He had been a member of the history faculty at Princeton, 1924-41. - 48 - SECRET Approved for Release: 2018/07/24 C00669377 SECRET I �:� thus led all to concur in his own conclusions, Sontag then went before the LAC as their spokesman -- and let no ignorant major general dare to quibble with the agreed conclusions of the substantive experts! General Smith must have inwardly enjoyed watching Sontag overawe his IAC colleagues. He never lifted a �finger to protect them from the Professor.* When Sherman Kent became Assistant Director, in January 1952, Sontag was made his Deputy.** Sontag's appointment completed the original Board of National Estimates. In contrast to Donovan's prescription (one scholar, one strategist, one scientist, two or three "men of affairs"), Smith's original Board consisted of four eminent professors, one distinguished combat commander, one lawyer, and two men experienced in the interdepartmental coor- dination of intelligence estimates. It should also * The author imitated Sontag's IAC technique with some success until Allen Dulles became DCI and put him down.70/ ** Sontag resigned from the Board on 20 June 1953, but then became one of the "Princeton Consultants," a position that he still holds (1971). - 49 - SECRET 14! , v_i_,,,,,i.f.o,kpproved for Release: 2018/07/24 _C00669377,y;1;;.-t,7 Stils.4.14:47 Approved for Release: 2018/07/24 C00669377 SECRET be noted that five of the eight held doctorates in history, excellent training for the exercise of critical judgment on the basis of incomplete evidence. The six other men whom Smith subsequently ap- pointed to the Board were Lieutenant General William Morris (April 1952 to August 1952), Vice Admiral Bernard Bieri (June 1951 to May 1953), Ambassador Nelson Johnson (December 1951 to June 1953), Dr. Edgar Hoover (January 1952 to June 1954), James Cooley (August 1952 to May 1970), and Lieutenant General Harold Bull (October 1952 to December 1957). Because some of these fourteen men replaced others, the total number of Board members present at any one time during the Smith period never ex- ceeded eleven. Ihe number was ten at the time of General Smith's departure, in February 1953. E. The "Princeton Consultants" Smith and Jackson had no confidence in the judgment of intelligence analysts, whether in CIA or in the Departmental agencies. Jackson regarded them all as bureaucrats out of touch with reality. He shared Donovan's conception that a board composed � 50 � SECRET Approved for Release: 2018/07/24 C00669377 SECRET of "men of affairs" was needed to subject the findings of the analysts to the test of credibility in the light of practical experience. When he realized that the Board of National Estimates was being filled up with professors (the sort of people Langer knew), he was disgusted. In his estimation professors were even more out of touch with reality than were intel- ligence analysts! 71/ When Smith and Jackson found it impossible to recruit for the Board "men of great prestige with practical experience,"* they conceived of creating another body of such men, who, while not available for full-time service, might be willing to meet occasionally to give counsel on the most and difficult estimative problems. This Board" would meet in Princeton.72/** It known as "the Princeton Consultants." important "Consulting came to be * These are Jackson's words for what Donovan meant by "men of affairs." ** The basic idea was to get away from the bureaucrat- ic atmosphere of Washington. Since "men of affairs" would, of course, come from the Northeast, Princeton would be a convenient midpoint. Besides, Princeton is a pleasant place and Jackson had a home there. - 51 - SECRET -..,::Approved for Release: 2018/07/24 C00669377..,�3 Approved for Release: 2018/07/24 C00669377 SECRET 1 F. What Jackson meant by "men of great prestige with practical experience" is indicated by the names of the first three men chosen for this group: Van- nevar Bush, George Kennan, and Hamilton Fish Armstrong./* The other original members of the Princeton group were Alexander Standish, a partner in J. H. Whitney & Company, Barklie Henry, a director of various corp- orations, and Burton Fahs, director of humanities for the Rockefeller Foundation.74/ The first two were evidently Jackson's friends, the third Langer's.** Jackson intended these consultants to exercise, in relation to the Board of National Estimates, the corrective authority that the Board had been intended to exercise in relation to the intelligence analysts. Their knowledgeable comments would set the professors * Bush, 60, had been a professor, at M.I.T., but was also a practical scientist, an inventor. He had been Chairman of the Research and Development Board in the Department of Defense and in 1950 was President of the Carnegie Institution in Washington. Kennan, 46, was an outstanding Foreign Service officer and a specialist in Soviet and German affairs; he had been Minister-Counsel- lor in Moscow while General Smith was Ambassador. In 1950 he was at the Institute for Advanced Study at Princeton. Armstrong, 63, had long been a close col- laborator with Allen Dulles in the Council on Foreign Relations and was Editor of Foreign Affairs. * * Fahs had been Chief of the Far East Division, R&A Branch, OSS, under Langer. - 52 - SECRET ��� , pproved for Release: 2018/07/24 C0066937/4&440�'-'4011""4421L'Ill':64". Approved for Release: 2018/07/24 C00669377 SECRET straight; their concurrence would give prestige and authority to national intelligence estimates. Langer had a different view of the relationship. He saw these consultants as eminent men whose views were certainly worthy of respectful consideration, but they were not responsible to anyone for the substance of national intelligence estimates; The Board of National Estimates was responsible, and should there- fore exercise final judgment, subject only to the responsibility and consequent authority of the DCI.75/ Ironically, the consultants came to value the information that they obtained from ONE more highly than ONE valued the advice that it obtained from them. The ultimate irony, in view of Jackson's preconceptions, is that the Board of National Es- timates is now (1971) composed predominantly of professional intelligence officers, former analysts, while the consultants are, for the most part, pro- fessors.* * The intelligence professionalism of CIA today (1971) is far superior to anything known in 1950. - 53 - SECRET ii:IApproved for Release: 2018/07/24 C60669377 Approved for Release: 2018/07/24 C00669377 SECRET t. The Naticnal Esti7.ates Staff All of the Office of National Estimates below the level of the Board came eventually to be known as the National Estimates Staff. Langer was authorized to draft from ORE anyone he wanted for ONE. He began, on 15 November, by taking a complete unit, the Global Survey Division, which was then composed of Ludwell Montague, DeForest Van Slyck, Ray Cline, Paul Sorel, Willard Matthias, and George Jackson.76/ Montague and Van Slyck be- came members of the Board; Borel became Langer's Executive Officer.* Soon afterward Langer drafted additional men and women from ORE. They had been recommended to him individually by Montague, Van Slyck, Cline, and Jack Smith** as the persons in ORE who were best suited to ONE's requirements. * Borel subsequently became DADNE for administra- tion (1952), a member of the Board (1956), Assistant Director, Central Reference (1957), Assistant DDI (1963), Director, Intelligence Support Services (1966), Special Advisor to the DDI (1967), and Director, Foreign Broadcast Information Service (1969). ** Smith had been Chief of the Publications Division, ORE. He subsequently became a member of the Board (1957), Assistant Director, Current Intelligence (1962), and Deputy Director, Intelligence (1966). - 54 - SECRET (b)(1) (b)(3) Frk;4! A pproved for Release: 2018/07/24 C006693774.i. Approved for Release: 2018/07/24 C00669377 SECRET In the circumstances of that time, a call to ONE was regarded in ORE as an invitation Ark.77/ to enter Noah's By 29 November 1950 there were (b)(1) people in (b)(3) (b)(1) ONE including four Board mem-(b)(3) bers.* An eventual strength of 70 was then contem- plated.78/ Montague's plan for an "Office of Estimates"" provided for a current intelligence division, five regional divisions, and a general division. The first would edit and publish the CIA Daily Summary, maintain secure custody of specially sensitive mate- rials, and operate a CIA situation room and after- hours watch.*** The regional divisions would be composed of area specialists who would follow the * Langer, Kent (as a consultant), Montague, and Van Slyck. * * See p. 32, above. *** These had been functions of the Publications Division in ORE. The current intelligence function was included in ONE in order to assure the estimators of access to sensitive current information, partic- ularly the highest-level State Department cables, and also to ensure that current reporting would be guided by estimative judgment. - 55 - SECRET -a pproved for Release: 2018/07/24 C00669377&�1.''.141{411:-,Ad-proved for Release: 2018/07/24 C00669377c: , ::.::.�:�;�;!:�'�:. � Approved for Release: 2018/07/24 C00669377 SECRET 301. Ibid., IV, 3-4, as corrected by LouiseDavison with regard to the number of the NIA Directive. 302. Ibid., IV, 4-5. 303. Ibid., IV, 6-7. 304. Louise Dickey Davison, Draft history, "The t, Office of 0 erations: Overt Collection, 1946-1965," DDI Historical Series, DCS- Appendix A:1 t 305. G Administrative 0 er No. 22, 17 Oct 46, !/HC-300, item A-10. 306. Jackson and Claussen, Organizational Nietory (133, above), IV, 11. 307. Lawrence White to Ludwell Montague, Nov 70. re 308. A. B. Darli g's interview wi Kingman Douglass, 28 May 52, HS/HC-800, Vol. I. 309. A. B. Darli 's interview wit Richard Helms, 10 Nov 52, s/HC-800,.Vo1. II. 310. Walter Pforzheimer to Ludwell Montague, 1 Jul 71. 311. Author's comment. 312. Davison, op. cit. (304, above), Appendix A. 313. Louise Davison to Ludwell Montague, 10 Mar 71. 314. Ibid. Mrs. Davison's source was George Carey. 315. Dulles, Jackson, and Correa, Report to the NSC (7, above), pp. 93-105. 316. Louise Davison (313, above). 317. Memo from the Acting ADO (John M. Sterling) to the DCI, "Dulles Committee report con the Office of Operations " 14 Feb 49, Exec- .')utive Registry, File 13. - 205 - SECRET *4Wiiaik Approved for Release: 2018/07/24 000669377 Approved for Release: 2018/07/24 C00669377 SECRET 318. NSC 50 (40, above), pp. 8-10. 319. Ibid. 320. SC-M-1, 18 Dec 50 (10, above, Envelope 1). 321. Jackson and Claussen, Organizational History (133, above), IV, 48-51. 322. Ibid., IV, 55. 323. Ibid. 324. Ibid., IV, 62. 325. Ibid., IV, 64-65. 326. DDI Diary, 10-14 and 31 Jan, 1, 8, and 10-12 Feb 52 (121, above). 327. Minutes, Director's Meeting, 11 Jun 51 (211, above). 328. Ibid., 22 Apr 52. 329. W. B. Smith, Report to the NSC (113, above). 330. William Jackson to Ludwell Montague (62, above), para. 10. - 206 - SECRET