COMMISSION REPORT ON INTELLIGENCE ACTIVITIES A REPORT TO CONGRESS JUNE 1955

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CIA-RDP61-00017A000200040001-6
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RIPPUB
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K
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79
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December 22, 2016
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March 27, 2009
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1
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Publication Date: 
June 1, 1955
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REPORT
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Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 4 z a COMMISSION ON ORGANIZATION OF THE EXECUTIVE BRANCH OF THE GOVERNMENT COMMISSION REPORT ON INTELLIGENCE ACTIVITIES A REPORT TO THE CONGRESS JUNE 1955 Document No. 01 NO CHANGE In Class. ^ DECLASSIFIED ~19 1i1 (?epi If 3--5' At Alt, L1 c Class. CARANGG.ED TO: TS S 7lT) A ,. Auth; "'i' lvleMp~ 4 Apr 77 DD 77- 77 763 D8tA. -, o. 7 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 LETTER OF TRANSMITTAL June 29, 1955 Dear In accordance with'Public'Law lOS Eighty-third Congress, approved July 10, 1953, the Commission on Organization of the Executive Branch of the Government submits herewith its Report on Intelligence Activities. The Commission has-had . the.. services of.an able Task Force presided over.by General. Mark W.-Clark, President, The Citadel. Respectfully, S/ Herbert Hoover Chairman The Honorable The President of. the Senate The-Honorable The Speaker of the House of Representatives Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 page INTRODUCTION ..... ....................................< PREFACE ................................................ i iii PART I. - COMMISSION REPORT ............................ 1 .PARV,11; TASK FORCE REPORT ............................ 3 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 INTRODUCTION The investigation. into? the' Intelligence. Activities of the Government was performed by a Task Force under the Chairmanship of General-Mark W. Clark, President, The Citadel, and comprising the members listed below: CHAIRMAN CLARK, Mark Wayne. General, U. S. Army (retired). ~.. United States Military Academy. Now President, The Citadel, Charleston, South Carolina. In World War II commanded Allied ground forces in Italy and effected first large-scale surrender of a German field command in Europe. June 1945, Commander-in-Chief of U. S. Occupation Forces in Austria and U. S. High Commissioner for Austria. Deputy to U. S. Secretary of State in London and Moscow with Council of Foreign Ministers negotiating Austrian treaty. May 1952, Commander-in-Chief, Far East Command, serving simultaneously as Commander-in-Chief,' United Nations Command$ Commanding General, U. S. Army Forces, Far East, and Governor of. Ryukyu. Islands. July 1953, signed Korean armistice agreement for United Nations. MEMBERS CONOLLY, Richard Lansing. Admiral, U. S. Navy (retired). Brooklyn, New York. Served at. sea throughout World War I and awarded Navy Cross. In World War II commanded Destroyer Division Six; served in Office of Chief of Naval Operations and on staff, Commander-in-Chief, U. S: Fleet. Postwar duties included Deputy Chief of. Naval Operations, U. S. Naval Advisor. to European Advisory Commission, President of Naval'War College. Now President, Long Island University. HOLLINGS, Ernest Frederick. Lawyer. Charleston, South Carolina. The Citadel and University of South Carolina.. During World War II, served in African and European Theaters with UJ. S. Army. Former member South Carolina State Legislature. Now Lieutenant Governor, State of. South Carolina. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 KEARNS, Henry. 'Manufacturer, inventor and executive. Orange Oaks Ranch, La'Verne, California. University of Utah. Past President., U. S. Junior Chamber of Commerce; Vice President, Chamber of Commerce of,- the United States; and Director, Tournament of Roses Association. Chosen as "California's Most Useful Citizen,".1944. Fellow, American Institute of, Management. RICKENBACKER, Edward Vernon. Aviator. New York, New York. Inter- national Correspondence School. In Wo-ld War I commanded 94th Aero-Pursuit Squadron, personally credited with 26 air victories. World War II activities included special missions for Secretary of War-to nine foreign countries and areas. U. S. and foreign government awards include Congressional Medal of Honor. Formerly executive with American Airways, Aviation Corporation, and North American Aviation. Since 1933, with Eastern Air Lines, Inc. as general manager and president; now Chairman of the Board. RUSSELL, Donald Stuart. Lawyer. Spartanburg, South Carolina. University- of South Carolina and University of Michigan. Practiced. law in-,Spartanburg. Formerly member Price . Adjustment Board, War Department; Assistant to Director of Economic Stabilization; Assistant to Director of War Mobilization; Deputy Director, Office of War Mobilization Reconversion; Assistant Secretary of State. Now President, University of South Carolina. STAFF DIRECTOR CHRISTIANSEN, James George. Major General, U. S. Army (retired). University of California, United States Military Academy. Former Chief of Staff, Army'Ground Forces; Commanding General- 2nd Armored Division, Ft. Hood, Texas; Commanding General,, 6th Aamaored-Divisign, Ft. Leonard Wood, Missouri; Chief Engineer., Far East Command; Chief of Military Assistance Advisory Group, Rome, 'Italy. The Commission wishes to express its appreciation of the services and'divotion of the members of the Task Force and to , record its appre- . ciation for the information and assistance provided , by the officials of the various Federal agencies. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 PREFACE The Task Force on Intelligence Activities, under the Chairmanship of General Mark Wa Clark, found. it. necessary for some bf its members to visit foreign countries to study these activities abroad as well as at home. Their investigations . inevitably involved matters-,of extremely classified... character to which they -were given full access a The Task Force has, therefore, prepared two reports an unclassified one bearing on the' administration and the coordination of- toe intelligence services of the 'Central Intelligence Agency and the 'services of the Army, Navy, Air Force, and State Department. The other report, bearing the highest security classification was substantially related to the national security. This report was sent directly to the President and was not considered by the Commission because of its extremely sensitive content. Therefore this Report of the Commission deals only with the unclassified Task Force Report. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 PART I COI&ISSION REPORT The Task.Force, in order to give assurance to the Nation that all segments of the Intelligence Activities are efficiently carried out and that the expenditures are properly administered, recommends that a permanent ".Watch-Dog" Committee be created. They recommend that such a Committee-be created. from members of the Senate and House, together with eminent, citizens serving part time as needed, to be appointed by. the President. The Commission believes, however, that whit: mixed oigreisional and Citizens Committees for temporary service are useful and helpful to undertake specific problems and to investigate and make recommenda- tions, such Committees, if permanent, present difficulties. We therefore make the-following recommendation Recommendation a..That the-President-appoint a committee of experienced private citizens, who...shall have the responsibility to examine and report to him periodically on the work of Government foreign intelligence. activities. This dommittee should also give such information to the public as the President may direct. The committee should function on a part time and per diem basis. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 b. That: the Cofgress consider creating a Joint Congressional Committee on Foreign Intelligence, similar to the Joint Committee on Atomic Energy.. In such case, the two committees, one Presi- dential and the other Congressional, could collaborate on matters of special importance to the national security. Other measures requiring legislation or,of"fan administrative character are. recommended by the Task Force and we suggest these for the consideration of the Congress and 'the Departments concerned. The unclassified report, of the Task Force requires no detailed review, and we therefore include it in full as Part II of this. report. Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 POT 11 Task Force Report on INTELI,1Gx i 4QE ACTIVITIES in the FEDERAL GOVET TNT Prepared for the COMMISSION ON,Q tGANIZATION OF THE E,XECUTIV.E BRANCH OF THE GOVERNM1 NT by the TASK FORCE ON INTELLIGENCE:.. AiC 'IVIT ES . MAY 1955 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 CONTENTS Page Task Force Personnel ..... . . O . . O ? . . . . . ? . O q . . . . ? ? .... . . .. 0 0 0 i Acknowledgments ........................................... i Letter of Submission ...................................... iv Preface . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . Y i . . . . O . 0 0 . .. .. O . . Introduction Y .. . 0 0 0 0. 0 . . . . .. O . . . . . . ... . 0 . ... . O . q ? 8 q . Y 0 0.0 . Scope of the Studies ...................................... Organization of the Task Force x "Intelligence" - A Definition ............................. xviii THE INTELLIGENCE CMIUNITY - NATIONAL LEVEL ......... 1 The National Security Council .................... 1 The Central Intelligence Agency .................. 3 II THE INTELLIGENCE COMMUNITY - I) i,PAI-I'lIk(ENTAi LEVEL ..... 5 Department of Defense ..J.QY ...................... 5 Office of Special Operations (030) 5 Joint Chiefs of Staff .. .............0.......... 5 Department of the Army ........................ 6 Department of the Navy ........................ 9 Department of the Air Force ................... 12 Department of State .............................. 13 Federal Bureau of Investigation (FBI) ...........,. 16 III - FOREIGN INTELLIGENCE 18 Evolution of Our Plans V .......................... P t W 18 os ar Organization u...Y............ Y. q........ 19 Functions Divided ,...........0.....0 ............. 20 - INTELLIGENCE PERSONNEL AND SECURITY ...q......9...... 22 Character of the Present Working Force ........... 22 G-2 Personnel and Security .:..................... 23 ONI Personnel ........0 ...................... 24 Air Force Intelligence Personnel ................. 25 Industrial Security Q ............................. 26 Individual Security Cases .................. 0..... 27 V - "WATCH-DOG" COMMISSION .............................. 29 Agency Gets Wide Exemptions ...................... 30 Would Study Complaints .......................... 32 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Page VI - FUNCTIONAL INTELLIGENCE ............ ........ ....1,,, 34 Map Procurement .................................. 34 Intelligence Libraries ... .............e......... 34 VII - CONCLUSIONS AND RECOMMENDATIONS .................... 36 Administrative Flaws Noted ...................... 37 Data on Soviet Bloc Inadequate .................. 38 Recommendations with Respect to Personnel ....... 39 Recommendation No. 1 ............................ 39 Recommendation No. 2 ........e..........-........ 40 Recommendation No. 3 ,...:~e ............... ...... 41 Recommendation No. 4 wr.a ...............e.......a 43 Recommendation No. 5 ...........e ................ 44 Recommendation No. 6 ...............,.....;...,e0 45 Recommendation No. 7 ..............0..o.........gr 46 Recommendation No. 8 ........................... 47 Recommendation No. 9 ....,....e....d...e....,.... 48 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 COMMISSION ON ORGANIZATION OF THE :CUTIVE BRANCH OF THE GOVEMTAENT TASK FORCE ON INTELLIGENCE ACTIVITIES Mark W. Clark, Chairman Richard L. Conolly Ernest F. Hollings Henry Kearns Edward V Rickenbacker Donald S. Russell TASK FORCE STAFF J. G. Christiansen, Director John J. Dubbelde$ Jr., Deputy Director Dorothy H. Davis, Staff Assistant CONSULTANTS Charles C. Blakeney Lee E. Cooper Richard A. Ericson Robert - J. Foley Paul L. High Michael M. Karlene Henan 0. Lane. John L. McGruder Eugene L. Miller Oliver Lloyd Onion Richard P. Ovenshine Henry E. Richter Terence J. Tully SECRETARIAL STAFF Gertrude T. Dixon Marie K. Smith ACKNOWLEDGMT The Intelligence Task Force wishes to acknowledge the complete cooperation it received from all the officials"and members of their staffs throughout the departments and agencies surveyed, and believes that it was accorded free access to the "raw" intelligence material necessary to carry out its investigative duties. i Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 The enthusiasm and interest which the personnel engaged in intelligence activities displayed in their work was gratifying to the members of this task force and its staff. Their full coopera- tion enabled us to complete our assignments within the allotted time. The chairman and the staff director are most appreciative of the support rendered "bar- the executive staff of the President and other government officials who appeared and were interviewed and gave us their : time and the benefit of their knowledge; and of the help of the executive staff of the Commission, particularly John B. Hollister, W. Hallam Tuck., Francis P. Brassor, and Clara Demuling. Without Miss Demul:ing's able assistance, the job of obtaining security clearances for the task force and staff would not have been accomplish- ed in time to permit completion of our survey. The chairman also is deeply obligated to and most appreciative of the valued support and contributions of his colleagues on the task force, the members of the staff, and the able consultants. The task force further wishes to express its deep gratitude for the valuable aid of those public-spirited individuals who gave freely of their time., and who by their objective approach to the problem and their government experience materiaUy enlightened our members. We are especially grateful for the advice and the benefit of the wide experience of Major General William J. Donovan, former Chief of the Office of Strategic'Services; J. Edgar Hoover, Director of the Federal Bureau of Investigation; William H. Jackson., former Deputy Director Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 of the Central Intelligence Agency; General W. Bedell Smith, former Director of the Central Intelligence Agency; Major General Charles A. Willoughby, former Assistant Chief of Staff, G-2, Far East Corm nd; and others, Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 COMMISSION ON ORGANIZATION OF THE EXECUTIVE BRANCH OF THE GOVERNMENT Washington, D. C. May 1955 The Honorable Herbert Hoover Chairman, Commission on Organization of the Executive Branch of the Government, Washington 25, D. C. My dear Mr. Hoover: We have the honor to present to you the reports of the Task Force on Intelligence Activities of our Government. In these reports, the task force analyzep'the national intelligence effort and makes recommendations with a view to correcting the weaknesses, improving the quality, and ixcreasing the efficiency of this vital operation. The aggressiveness of the Soviet bloc, their methods of infil- tration, subversive activities, and propaganda employed in the cold war now in progress, as well as the difficulty of penetration of their security barriers, point up the fact that our intelligence effort must be the best in our history, This, added to the advent of nuclear weapons, together with their advanced delivery systems,, has made adequate and timely intelligence imperative to our national security. The task force is fully aware of the grave responsibility implicit in its assigned mission. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Security requirements have made it necessary that the task force depart in some degree from the form of the report prescribed by the Commission. Two reports are submitted: one, unclassified; the other, classified TOP SECRET, with certain separate appendices which require, additional clearance. In submitting these reports, we wish to express our personal appreciation for the wholehearted and enthusiastic cooperation given us by the departments and agencies surveyed. Respectfully submitted, Mark W. Clark, Chairman Richard L. Conolly Ernest F~ Hollings Henry Kearns Edward V. Rickenbacker Donald S. Russell Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 For self-preservation, the defenders of a free world need complete, prompt, and continuing information on the plans and potentialities of those who would enslave it. Nations and people who value liberty and a sovereign national existence in a free world now look to the United States for leadership and inspiration in their struggle to safeguard these inherent rights In the historic family of nations, this country ranks as a com- parative newcomer. In the early days of the Republic -- not so long ago as the world measures time -- our people felt comfortably distant from the hotbeds of foreign intrigue and conflict. Transportation and communication facilities in the days of clipper ships and the pony express were so limited and so slow that they fostered a serene assurance of isolation and geographical protection against possible aggressors. Technological developments and political realignments in modern times inspire no such sentiment as that which once led a famous Denver editor to evaluate news on the premise that "a dogfight in Champs Street" was worth more space in his paper than war in some minor country:`. abroad, Our early ...philo'sophg.of-,peace...srtill prevails, but within our generation and for our own protection, organized intelligence has been forced upon us by the rapidly shrinking world of electronics, nuclear weapons and planes which travel at supersonic speed. Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The United States emerged from World War II as the political leader in free world affairs and the outstanding military power. The advent of atomic bombs, together-with the development of advanced methods for their delivery, intensified the need for adequate and timely intelligence so that we might fulfill our responsibilities in international affairs and insure our own survival. Effective intelligence has become increasingly necessary for our protection against the propaganda, infiltration, and aggressions of the Communist leaders. By trial and error, study, and skill, we have made progress; but we must not labor under any complacent delusions. There is still much to be done by our intelligence community to bring its achieve- ments up to an-acceptable-level. The task force is cognizant of the grave responsibility assign- ed to it. It recognizes the fact that it would be false economy to stint on some phase of the intelligence operation and thereby run the risk of another costly and tragic surprise like Pearl Harbor. On the other hand, it is desirable and proper for us to insist that the substantial expenditures our country makes in this field are worth while and that the whole intelligence output is efficiently handled and gets adequate results. The recommendations of the task force are presented from the viewpoint that in time of` a cveF- ,must' t oat be? pied-fot^ 1Vd1* but also must do our utmost to prevent war. Adequate and timely intelligence is the most effective and economical means of attaining these objectives. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 The machinery for accomplishing our intelligence,objectives, hereafter called the intelligence community when referred to as a whole, includes the Central Intelligence Agency, the National Security Council,, the National Security Agency, the Federal Bureau of Investigation, and the intelligence sections of the Department of State,, of the Array, the Navy, and the Air Force, and of the Atomic Energy Commission. Some of these agencies approach or exceed the operations of the CIA in functions:and in expenditures-. However, since CIA is charged with the overall responsibility for coordinat- ing the output of all intelligence forces, the task force gave special attention to the work of that agency. Our investigations showed that the sensitive and vital work of the intelligence community is being led by a group which is sincere and dedicated to the service of the nation. We,discovered no valid ground for the suspicion that the CIA or any other element of the intelligence family was being effectively contaminated by any organized subversive or'Communistic clique. Charges were made by some individuals..alleging a few members of the intelligence community were poor 'securiity, risks-. All such capea, except those obviously without-marit were investigated by proper authority, or invest~ga- tions are in the process of being made. On the basis of its comprehensive studies, the task force feels that,the American people can and should give 'their full confidence and support to the intelligence program, and contribute in every Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 possible way to the vital work in which these agencies are engaged, We found the Director of Central Intelligence to be industrious, objec- tive, selfless, enthusiastic, and imaginative. We are convinced, however, that in his enthusiasm he has taken upon himself too many burdensome duties and responsibilities on the operational side of CLP s activities.. The task force feels that certain administrative flaws have developed in the CIA, which must be corrected to give proper emphasis and direction to its basic responsibilities. The major aim would be greater concentration on the collection of intelligence information from our primary target - Russia and her satellites, and Communist China. The task force is deeply concerned over the lack of adequate intelligence data from behind the Iron Curtain. Proper directional emphasis, aggressive leadership, boldness, and persistence are essential to achieve the desired results. The glamor and excitement of some angles of our intelligence effort must not be permitted to overshadow other vital phases of the work or to cause neglect of primary functions. A majority of the task force is convinced that an internal reorganization of the CIA is necessary to give assurance that each of these functions gets adequate attention without diversionary interest. The task force further is concerned over the absence of satis- factory machinery for surveillance of the stewardship of the Central Intelligence Agency. It is making recommendations which it believes will provide the proper type of "watch dog" commission as a means of Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 reestablishing that relationship between the CIA and the Congress so essential to and characteristic of our democratic form of government, but which was abrogated by the enactment of Public Law 110 and other statutes-relating to the Agency. It would include representatives of both Houses of Congress and of the Chief Executive. Its duties would embrace a review of the operations and effectiveness not only of the CIA, but also of all other intelligence agencies. One of the aims in the creation of a compact commission of this type would be to keep the public assured of the essential and trust- worthy accomplishments of our intelligence forces, and to,enlist public support-'and participation in the intelligence effort. Action of this sort is needed to promote a general awareness and appreciation. among the people of the significance and objectives of the intelligence program. There is ?a corollary demand for clarifica- tion of misunderstandings which have arisen in the public mind, largely as a result of the misapplication of secrecy. However, it must be recognized that intelligence operations require a large element of secrecy as an essential to success The intelligence community should draw more widely on the available pool of retired citizens with wide previous business experience,in the foreign field, and among retired military personnel who have specialized over a long period in the intelligence field. It should develop a more attractive program of career incentives for its officials, and of benefits for its overseas employees. Recommendations to,achieve these 'desirable results are being offered by the task'force. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 SCUD OF THE STUD?ES Early Instructions Initially, this task force was- instructed by the Commission on Organization - ofthe Executive Branch of the Government (hereafter referred to as the Hoover Commission or the Commission) to study and make recommendations as to the structure and administration of the Central Intelligence Agency. Later, those instructions were changed by the Commission to embrace studies of all intelligence operations. of the Federal Govern- ment and recommendations for changes necessary to promote economy, efficiency, and improved service in this field. The task force gave thorough consideration to the decision of the Commission to broaden the scope of the studies. It found at least twelve major departments and agencies engaged in intelligence in one form or another. In addition, ten or more minor agencies or activities expend public funds directly or indirectly in behalf of the intelligence effort of the Government. Thus, under the broad definition of its terms of reference, the task force was-confronted with the Herculean job of studying and reporting on more' than a score of major and minor departments and agencies. It quickly'. became evident that any attempt to spread its investigations over such a large area would mean that only sketchy results could be achieved within the allotted time. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Task Force Procedure Revised The most pressing need under present conditions is for officials in important positions in,.Government, parti6ularly those responsible' for foreign policy,. to have readily available full and factual'.foreign intelligence. (The word "foreign" as used here denotes the target of information as distinct from the geographical source). Accordingly,'the task force suggested to the Commission that,.the best results could be obtained if the dimensions of the inquiry were' limited to certain key departments and agencies. This proposal was approved by the Commission with the understand- ing that the task force would determine which of the intelligence services, activities, an4,functions of the agencies surveyed it con- sidered essential; those not necessary, or of similar nature and requiring consolidation in the public interest;.those non-essential and competitive with private enterprise; aid those representing duplication or overlapping of work between agencies. Under this revised program, the. task force would cover, among other matters: 1. The intelligence functions of the National. Security Council. 20 The value and effectiveness of the information supplied by the operating agencies. 3. The effectiveness of the coordination of intelligence acti- vities. 4. The organization, procedures, methods, and performance of' the Government agencies in the field of intelligence. 5. An examination of the operation and physical plant of~th agencies as to economy, adequacy, effect on efficiency, and utilization. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 6. The various programs of the agencies in such fields as training, research and development, stockpiling, reference material, and security. 7. Personnel policies and manpower utilization. 8. All programs and procedures for the collection, development, and dissemination of intelligence information within the Government, including, collection apparatus and dissemination media. 9. Effectiveness. of , the coverage by the various agencies of their specific areas. of assignment, and extent of teamwork between these agencies. Two Reports Prepared In the preparation of this report, the task force was motivated ,y a sincere desire to..present as complete an account of its findings as considered judgment indicated would best serve the public interest. Certain other facts and recommendations prepared by the task force have been omitted from this report on the ground that their disclosure publicly might give aid and comfort to our potential enemies or might jeopardize our national defense and security. These findings have been incorporated in a separate, highly-classified., comprehensive report which has been placed in the hands of the Chairman of the Commission. Teams Make Firsthand Studies Abroad In order to obtain a clearer picture of intelligence operations, two teams. were sent abroad for-on-the-spot investigations. Each team was composed of a member or members of the task force and members of Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 the staff. One group visited the European sector and the other went to the Far East. These staff groups held conferences with the senior United States representatives and, -seior- military commanders in-tihe countries visited. The visits and discussions provided the task force with firsthand information which could have beefs obtained in no other fashion. The conclusions reached.-and the recommendations contained in this report, and in the more comprehensive report to the Chairman of the Commission, reflect the benefit of those personal tours of inspection. Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 ORGANIZATION OF THE TASK FORCE Security Impact on the Selection of'Personnel The Task Force on Intelligence Activities was the last investiga- tive group authorized by the Hoover-Commission. The director and deputy of the staff assumed their duties. on October 1, 1954. The limited pool of available personnel in this country with prior experience in the intelligence field influenced to some extent'the structure of the staff and its methods of operation. The task force personnel and staff had to be screened carefully for background security and possible prejudicial interest arising from prior association with departments and agencies embraced in the survey. Before' a member of the task force or staff could have access to any material, a security background'investigation was'conducted and the individual declared by proper authority to be eligible for access to "Top Secret" information. In each case where the inquiry involved access to atomic energy data, a time-consuming special clearance was obtained, It was found that each department and agency had developed its own criteria, practices;, and standards, for clearance The task force adopted a policy in conformity with the policies and requirements of the department or agency involved in each specific inquiry. In the interest of security and economy, the task force also decided to keep its staff as compact as possible. Sensitive material generally was studied on the premises of the agencies. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Staff Organization After careful consideration by the task force of various possible methods of organizing the staff and its work, it was decided that the most practical course would be to assign teams composed of one or two staff members to study specific agencies, and to delegate to other teams specific across-the-board survey functions. Individual task force members were assigned across-the-board responsibilities parallel- ing the work of designated staff teams. Thus, all task force members were in a position to interject their influence and guidance in the staff activities and at the same time obtain valuable firsthand knowledge of the overall problem. Procedures for Gathering Data The task force and staff had the ;benefit of detailed briefings by top officials and employees of each agency studied. These brief- ings were characterized by informality. Oral questions and answers usually were employed. In some instances, however, copies of pre- pared briefings were furnished to the staff for ready reference. Discussions were had with many echelons of personnel in each department and agency, from the clerks up to and including the heads of the executive departments. In the execution of its extensive undertaking, the task force in certain areas found it necessary to employ the "sampling" method, particularly in the case of the study of activities overseas. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The task force also received ecpert advice from many individuals no longer in Government employ, but who previously occupied positions of prime responsibility in the development of our Sresent intelligence operations and organization. Some of these witnesses appeared' before the task force at no expense to the Government and at considerable personal sacrifice. Their help and suggestions were of inestimable value. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The fate of the nation well may rest on accurate and complete intelligence data which may serve as a trustworthy guide for top- level governmental decisions on policy and action in a troubled world, where so many forces and ideologies work at,cross purposes, The Congress had clearly recognized the importance of the role of intelligence in our national security. It has authorized expenditures by appropriate departments and agencies to carry on this work comprehensively. Immediately after World War II, at the suggestion of the Chief Executive of our Government, the Congress approved the creation of the Central Intelligence Agency to coordinate the intelligence activities of the various government departments and agencies in this field, in the interest of national security. In order-to evaluate the extent and effectiveness of intelli- gence as carried out under present conditions and under the present organization, the Task Force on Intelligence Activities found itself confronted at the outset with the problem of arriving at a common understanding and agreement on the meaning of the word "intelligence," as applied to its own areas of work and investigation. In the search for an acceptable definition as applied to our special field of study, it was found that each department or agency surveyed had-its own "pet" definition. Many of these definitions were lengthy and involved use of words requiring additional interpre- tation or delimitations to get at their precise application. xviii Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The task force sought a definition as simple and clear as possible and arrived at the following: "Intelligence deals with all the things which should be knowh:in advance of initiating a course of action.'' Useful for our purpose also, as a supplemental and extended defini- tion, is that given in the Dictionary of United States Military Terms for Joint Usage: "INTELLIGENCE - The product resulting from the collection, evaluation, analysis, integration and interpretation of all available information which concerns one or more aspects of foreign nations or of areas of operations, and which is immediately or potentially significant to. planning." Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 I THE INTELLIGENCE COMMUNITY NATIONAL LEVEL THE NATIONAL SECURITY COUNCIL The function of the National Security Council is to advise the President with respect to the integration of domestics, foreign, and military policies relating to the national security so as to enable the military services and the other departments and agencies of the Government to cooperate more effectively in matters involving national security. The Council is composed of the President, the Vice President, the Secretaries of State and Defense, the Director of the Foreign Operations Administration, the Director of the Office of Defense Mobilization, the secretaries and under secretaries of other executive departments and military departments when appointed by the President, to serve at his pleasure. The Council, in addition to performing such other functions as the President may direct, for the purpose of coordinating more effectively the policies and functions of the departments and agencies of the GQ.vern- ment relating to national security, subject to the direction of the President, shall: 1, Assess and appraise the objectives, commitments, and risks of the United States in relation to our actual and potential military power, in the interest of national security, for the purpose of making recommendations to the President to meet these problems. 2. Consider policies on matters of common interest to the departments and agencies of the Government concerned with the national 1 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 security, and make recommendations to the President on these matters. In order to accomplish its mission, the National Security Council has at its disposal several groups which function in varying degrees within the field of national intelligence. Duties of Special Assistant to the President The Council is linked closely to the President, not only because the Chief Executive is chairman and a member of it, but also because of the designation by him of a Special Assistant to the President for National Security Affairs who, as a member of the White House Staff, has constant and direct access to the President and enjoys his com- plete confidence. This Special Assistant to the President is, in fact if not in name, the Executive Officer of the NSC and is chairman of the highly important Planning Board of the NSC. He personally briefs the President on national security affairs, and with the President's approval prepares the agenda for the NSC meetings. This Special Assistant to the President does not preside at any NSC meeting, but sits (just beneath the Council itself) at the apex of the NSC administrative machinery. Progress in National Intelligence Policies The National Security Council has issued several intelligence directives. They express the policy by which the intelligence effort is guided and coordinated; establish, within the intelligence community, committees for the fulfillment of specific intelligence functions; and pinpoint the responsibility for specific duties in designated fields of intelligence. Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The national intelligence policy, as expressed in these directives, calls for integration of all departmental intelligence relating to national security through a process of coordination of effort by the Director of Central Intelligence and correlation of intelligence by the Central Intelligence Agency. Other groups have been established as appendages to the Council,, through some of which intelligence, advice,, and recommendations have been received by the Council for its use in advising and making recom- mendations to the President. THE CENTRAL INTELLIGENCE AGENCY The Central Intelligence Agency, created by the National Security Act of 1917, is charged with the responsibility of coordinating., evaluating, and distributing intelligence data affecting the national security. The Director of Central Intelligence gives advice and recom- mendations to the National Security Council on such matters. The CIA.well may attribute its existence to the surprise attack on Pearl Harbor and to the post-war investigation into the part intelligence or lack of intelligence played in the failure of our military forces to receive adequate and prompt warning of the upending Japanese attack. That investigation of events leading up to the "day of infamy" impressed upon Congress the fact that information necessary to anticipate the attack actually was available to the Government; but that there was no system in existence to assure that the information,, properly evaluated, would be brought to the attention of the President and his chief advisers so that appropriate decisions could be made and timely instructions transmitted to the interested military commanders. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 It also demonstrated that in the pre-war Government organization no single official was responsible for whatever failure of intelligence was involved; and the blame for the military surprise fell, justly or unjustly, on the military commanders present and immediately involved in the debacle. Therefore,, in 1917, when legislation for a national intelligence organization was being considered, there was a widespread feeling among members of the Congress that responsibility for the coordination of the production of national intelligence, as distinguished from departmental intelligence, and for its dissemination, roust be centered at one point. Creation of the Central Intelligence Agency, with its director charged with the coordination of the intelligence effort, was authorized to fill this need. The Director of Central Intelligence, in the performance of this responsibility, receives pertinent information from all branches of the Government engaging in collection of intelligence, including the Atomic Energy Commission. The Central Intelligence Agency Act of 1949 provides for the administration of the Agency and grants the Director wide autonomous authority, Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 II THE INTELLIGENCE COMMUNITY -- DEPARTMENTAL LEVEL DEPARTMENT OF DEFENSE Office of Special Operations (OSO) Authority, Responsibility, and Functions The responsibility of the Secretary of Defense for intelligence activities in the military services is not specifically defined in leg5lation or executive order, but is implicit in the following provision of the National Security Act of 1917: "The Secretary of Defense shall be the principal assistant to the President in all matters relating to the Department of :Defense. Under direction of the President, and subject to the provisions of this.Act., he shall have direction, authority, and control over the Department of Defense.IL The Assistant to the Secretary of Defense (Special Operations) was designated to fulfill a requirement for staff participation and representation in matters affecting defense and national intelligence efforts. His authority and responsibilities are set forth in various directives and memoranda of the Secretary of Defense. The organization is small and is neither intended nor prepared to exercise administrative control over day-to-day intelligence activities of the armed services. Joint Chiefs of Staff Joint Intelligence Unit As an adjunct of the Joint Chiefs of Staff, there is a Joint Intelligence Committee composed of the intelligence chiefs of the Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 members of the Joint Chiefs of Staff. The committee members are: the Deputy Director for Intelligence of the Joint Staff, who acts as com- mittee chairman; the G-2 of the Army; the Director of Naval Intelligence; and the Director of Intelligence, Air Force. The Deputy Director for; Intelligence of the Joint Staff heads the Joint Intelligence Group, performing the intelligence functions and duties assigned to him by the Joint Chiefs of Staff through the Director of the Joint Staff. Inasmuch as the Joint Chiefs of Staff and the Joint Staff are within the Department of Defense, the Joint Intelligence Group supports the Secretary of Defense in intelligence matters. Department of the Arne Responsibilities of the Assistant Chief of Staff, G-2, Intelligence The AC/S, G-2, under supervision of the Deputy Chiefs of Staff - and of the Comptroller of the Army, within his scope of responsibility - plans, coordinates and supervises the collection, evaluation and dissemination of intelligence information pertaining to the war potential, topography, military forces and military activities of foreign nations, and the strategic vulnerability of the United States and its possessions. The AC/S, 0-2, also gives staff guidance and coordination to the Counter-Intelligence Corps (CIC) and to the Army Intelligence Center (AIC). Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Attache ,system Array efforts in the intelligence collection field are carried out largely through its Attache Syrsten which maintains stations in many foreign countries. Officers are assigned in the Attache System on a highly selective basis in conformity with rigid requirements acrd standards established for candidates for this type of duty. After selection,, officers are assigned to language and intelli- genee schools to prepare them for their assignments, G-2 Training Interest G-2's training interest lies principally in the areas of policy guidance and planning. The training division establishes the policies under which intelligence and language schools operate, and monitors their program. Elements of the division also monitor training programs in the intelligence field, which are conducted by the various field commands and agencies, to insure conformance with G-2's guidance, counter-Intelligence Corps This Corps operates under the command of a major general, who is also, in effect, a deputy of AC/S, G-2, for CIO matters, However, while the Corps commander is responsible for certain administrative and security functions, he does not exercise a true command control over the personnel of the Corps. Based on the principle that security is a function of command, elements of the Corps generally are assigned to field units and operate directly under command of the unit to which they are assigned, Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 The mission of the CIC is to ferret out any treason, sedition, subversive activity or disaffection, and to detect and prevent enevV espionage or sabotage within the Array Establishment and its area of jurisdiction. In the pursuit of their primary functions, members of the Army's Counter-Intelligence Corps acquire some intelligence data, and these are fed into the intelligence system. Relationship to Other Agencies G-2 operates generally in a healthy atmosphere of cooperation and understanding in its relationship with other segments of the intelli- gence community. Committee, subcommittee, and working groups provide for ready interchange of material, practices., methods., and other pertinent intelligence information. Much of the effectiveness of this system is achieved through personal contacts. Material of an urgent nature can be disseminated throughout the intelligence community through these contacts without being delayed to await scheduled committee meetings. There is positive evidence of an aggressive willingness and desire among those engaged at the working level to promote the overall intelligence effort. Language Training Program Language training for the Attache System and for the Foreign Area Specialist Training (FAST) is conducted at the Army Language School in Monterey, California. Use also is made of the Naval Language School in Washington, D. C., and civilian colleges. The Army conducts language courses for CIO personnel at Fort Holabird, Maryland. Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Department of the Navy Office of Naval Intelligence (ONI) The Office of Naval Intelligence is part of the organization of the Office of the Chief of Naval Operations. The Director of Naval Intelligence is designated as an Assistant Chief of Naval operations, and reports directly to the Vice Chief of Naval Operations. He also has a direct responsibility to the Secretary of the Navy. Under the authority and direction of the Chief of Naval Operations, the Director of Naval Intelligence is required to administer, operate, and maintain an intelligence service fulfilling the intelligence and counter-intelligence requirements of the Department of the Navy for the purpose of: 1. Informing the Naval Establishment of the war-making capabilities and intentions of foreign nations, 2. Providing the Naval Establishment with the intelligence needed for plans and operations. 3. Warning Naval authority of threats to security of the Naval Establishment. ?i. Providing the Naval contributions to joint, national, and international intelligence. 5. Promoting the maximum intelligence readiness of the operating forces and other components of the Naval Establishment. 6. Coordinating the intelligence effort of the Naval Establishment. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 7. Developing and promulgating, subject to approval of the Secretary of the Navy, policies for the protection of classified matter, including such policies applicable to industrial security. 8, Advising the Chief of Naval Operations concerning all matters relating to Naval intelligence and security policies for the protection of classified matter. Organization in the Field In the field, three organizations assist in carrying out the intelligence mission of the Navy: 1. Naval District Intelligence Officers, who are under ONI's management control and operate in the continental United States and in certain outlying areas, 2. Intelligence organizations within the forces afloat, which, although directly under their respective commanders, are still under ONI's technical supervision, 3. The Naval Attache System, which also is under juris- diction of the ONI. The primary functions of the District Intelligence Officers are the conduct of counterintelligence and the implementation of security policies. The District Intelligence Officer serves on the staff of his Naval District Commandant, and in certain designated districts has additional duty on the staff of the commander of the sea frontier in which his district is located. The Naval District Intelligence Offices are the major source of domestic counterintelligence of special concern to the Navy. In the forces afloat, each area, fleet, type, and task force com- mander,, and all flag officers exercising command have a staff intelligence 10 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 section, This is headed by an intelligence officer who is responsible for the collection, processing, and dissemination of intelligence for the command. ONI supports their intelligence requirements and assigns them collection missions within their capabilities to execute. Naval Attache stem Naval attaches and their staffs are officially a part of ONI, but they also have.a responsibility to the ambassador or minister who is the `chief of the diplomatic mission to which they are assigned. Normally, attaches are stationed only in those countries which are of primary Naval interest to ONI, Each of the ambassadors to countries having ports of call for our Naval elements would like to have a naval attache to take care of many problems arising from these visits and the attendant shore leaves, Administration Administrative work in the Office of Naval Intelligence is handled by the Assistant Director of Naval Intelligence, Administration. Man- power and management surveys are conducted continuously by this division to maintain efficiency and econovr: throughout::0NI. "Special -Duty On~ytt Most of the military personnel assigned to intelligence duties are line officers, not specialists. The Military Personnel Act of 194.7.made provision for intelligence specialists in the Regular Navy. However, since by law none of these "Special Duty Only" officers may succeed to command,, and since command is the usual stepping stone to flag rank, the "Special Duty Only" class of service is unpopular among line officers. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Department of the Air Force Organization for Intelligence Work The civilian staff of the Secretary of the Air Force includes a Special Assistant for Intelligence who is responsible for review' and evaluation of all matters pertaining to plans, policies, and programs relative to the Air Force intelligence program. He is also charged with supervision and ultimate review of the personnel security program, both military and civilian. The Deputy Chief of :Staff, Operations, is responsible for the Air Force intelligence activities, communications activities, and atomic energy matters, The Department's Inspector General is responsible to the Chief of Staff, USAF. Among his other duties, he conducts investigations of matters involving.major crimes, violations of public trust, subversive activities,' sabotage and espionage; and performs related counter- intelligence functions for the Department. The Director of Intelligence, Headquarters, USAF, is directly responsible to the Deputy Chief of Staff, Operations. This organiza- tional relationship places him in a position subordinate. to a Deputy Chief of Staff. The interposing of an echelon between,:the_ major intelligence element of the Air Force and the Department's Chief of Staff. and certain other functional Deputy Chiefs of Staff, such as the Comptroller, affects adversely the efficiency of staff operation. Elevation of the Director of Intelligence to the level of Deputy Chief of Staff would greatly enhance the prestige of intelligence in the Air Forced Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 This is a desirable and appropriate step in view of the tremendous importance of intelligence in the overall mission of the Air Force. Air Force Intelligence 'T'raining Recognizing the need for continuing intelligence training, the Air Force has established such a program for officers and airmen, embracing courses ranging from those of an introductory nature to those appropriate for staff officers in higher headquarters. In addition to the service schools, college facilities are used for language training and special studies. Training courses also are available for Air Force reserve personnel. The Air Force training program generally is adequate for current requirements, even in technical areas where the personnel turnover is heavy. Periodic studies should be made, however, to assure the adequacy of training facilities in relation to worldwide staff requirements. The staffing of foreign posts with inadequately trained personnel may be not only uneconomical, but might result also in the loss of opportunities to collect intelligence. DEPARTMENT OF STATE Responsibility for Foreign Pol4ey A primary function of the Secretary of State is to act as principal adviser to the President in the determination of American foreign policy and to implement and supervise its execution by diplomatic means. By virtue of the authority the Secretary exercises over all the activities of the Department and the Foreign Service, he derives principal support for the accomplishment of this task from the 13 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Under Secretaries, the Administrator of the Bureau of Security and Consular Affairs, the Special Assistant-Intelligence, and the Director of the Policy Planning Staff. The Special assistant-Intelligence, with rank equivalent to that of an Assistant Secretary, develops and implements a coordinated program for foreign intelligence for the Department and for producing reports essential to determination and execution of foreign policy. Effect of Diplomacy on the Overall Collection of Intelligence The task force has recognized the incompatibility in method between the practice of diplomacy and the more direct and active operations incident to the collection of intelligence and the conduct of cold war. While all contribute to the end in view, conflicts between them must be resolved, usually on a high level, and always in the national interest. It must be realized that diplomacy is not an end in itself; that, while political ends must be served and unjustifiable risks avoided, the collection of intelligence is a'vital element in the fight to preserve our national welfare and existence. Instances have come to the attention of the task force where too conservative an attitude has prevailed, often to the detriii nt of vigorous and'timely action in the field. Creation of the Intelligence Area Prior to World War II, intelligence for the support of American foreign policy was produced by the inadequate research staffs of departmental policy offices which had many other duties to perform. 14 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Creation of the Intelligence Area of that Department, by Executive Order 9621 of September 20, 1915, recognised the need for improving the quality of intelligence demanded by the tense international situation. The Secretary of State is a member of the National Security Council, The Intelligence Area provides staff assistance to the Secretary and senior policy officers of the Department of State, and maintains liaison with the other members of the intelligence community in the discharge of the Department's responsibility in the total intelligence program of the Government. Better Quarters Needed The Intelligence Area maintains its offices and records in a converted apartment building, which does not constitute satisfactory quarters for this special type of work. The cost of adequate security measures consequently is high. Existing plans for an addition to the New State Building, if approved under the provisions of Public Law 519, would improve working conditions and efficiency, produce savings through the vacating of leased spaces, and reduce costs of security, maintenance, and miscellaneous services for this branch of the intelligence effort. 15 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 FED AL BUREAU OF INVESTIGATION (FBI) A Bureau of Investigation was created, under jurisdiction of the Attorney General of the United States, by Executive Order of July 26, 1908. The policies now followed in the administration of the Federal, Bureau of Investigation were established in 1924, and in July 1935, this agency became known as the Federal Bureau of Investigation, In view of the limited activities of the FBI in the positive and foreign intelligence fields, a detailed study of this agency was not made:, However, its functions in the counterintelligence effort were studied with deep interest by the task force, in order to fill out the intelligence picture. We found the Director of the FBI, through his forcefulness, initia- tive, and managerial ability, to have developed his agency into a model organization of its kind. We are confident that in the FBI we have a most effective counterintelligence service. FBI Responsibilities in Counterintelligence Among other assigned responsibilities, the FBI has jurisdiction over investigations relating to espionage, sabotage, treason, and other mat- ters pertaining to the internal security of the United States. This jurisdiction places the FBI directly in the field of counterintelligence, Executive Order 1050 (May 27, 1953), which established the security procedure covering gall persons seeking the privilege of employment or privileged to be employed in the departments and agencies of the Govern- ment," provides that; "All investigations conducted by any other agencies, which develop adverse information involving loyalty or information showing coercion of an employee to act contrary to the interests of the national security, shall be referred promptly to the Federal Bureau of Investigation for a full field investigation.'; 16 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Relationship to Other Departments and Agencies The Director of the FBI - along with the Assistant Chief of Staff, G-2, Department of the Army; the Director of Naval Intelligence, Depart- ment of the Navy; and the Director of Special Investigations, the Inspector General, Headquarters, U. S. Air Force - is a member of the Interdepartmental Intelligence Conference (IIC) rich is responsible for the coordination of the investigation of all domestic espionage, counterespionage, sabotage, subversion, and other related intelligence matters affecting internal security. The IIC Charter does not disturb the responsibilities of the member agencies, but makes mandatory such action by those agencies as is necessary to insure complete investigative coverage of this field without duplication of effort, through appropriate exchange and coordination of information and action among the various pertinent agencies and departments of the Government, 17 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 III FOREIGN INTELLIGENCE Evolution of Our Plans Traditionally, Americans are a peace loving people. But, a philosophy of peace is no guarantee of peace. In a tortured world where greed, intrigue, and lust for power exist, protection of liberty and assurance of survival lie in alertness and strength. Alertness in- volves adequate intelligence data on which to base adequate preparedness. From the beginning, the United States has tried consistently to maintain relationships with other countries openly and to refrain from participation in secret treaties. This principle likewise established the early pattern for the conduct of our intelligence activities. The collection of information concerning political and military policies and plans of foreign governments was accomplished openly and with the full knowledge of the foreign powers. The work was performed through the offices of our diplomatic representatives abroad and accredited military attaches. A substantial volume of material was collected., but there was no machinery at home to pull this information together into a cohesive mass and to draw from it logical conclusions upon which to base national policy and future plans. On duly 11, 1941, the Chief Executive,, in his capacity as Commander- in-Chief of the Armed Forces, established an Office of the Coordinator of Information to "collect and analyze information data, military or otherwise, which may bear upon national defense strategy; to interpret and correlate such strategic information; to make it available to the President and such other officials as the President may determine, and to carry out, when requested by the President, such supplementary 18 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 activities as may facilitate the securing of strategic information not available to the Government.?' This office came into being only five months before Pearl Harbor. Through a process of evolution, there finally emerged the Office of Strategic Services as an operating agency of the Joint Chiefs of Staff, This organization remained intact until the end of World War II. Post-War Organization In the fall of 194, the Chief Executive wrote to the Director of Strategic Services requesting recommendations as to the organization of a post-war intelligence organization. The director submitted a plan for the creation of a central intelligence service, The plan placed the proposed central intelligence service in the Executive Office of the President and called for the appointment by the President of a Director of Intelligence who would discharge and perform his functions and duties under the direction and supervision of the President, It also provided for the establishment of an Intelligence Advisory Board consisting of the Secretaries of State, War, and Navy, and such others as the President deemed necessary. The duties of the board would be to advise and assist the Director of Intelligence. The plan placed in the hands of the Director the work of coordinating, collecting, evaluating, and disseminating intelligence for national pur- poses. It also recognized that various departments of the Government should have their own intelligence bureaus for the collection and process- ing of such information and material as might be needed in the performance of their daily functions and duties. Each of these bureaus would be under the sole control of its department head and would not be encroached upon or impaired by the functions granted to any other governmental in- telligence agency, 19 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 The plan further contemplated that in'time of war or unlimited emergency, all programs of such an agency in areas of actual or pro- jected military operations would be coordinated with military plans and be subject to the approval of .the Joint Chiefs of Staff; or in case of the consolidation of the armed services, under the supreme commander. Functions Divided Under the pressure of prompt dissolution of wartime agencies, the Chief Executive, on September 20, 19L5, divided the functions, personnel, and physical resources of the Office of Strategic Services between the State Department and the War Department. The research and presentation element was transferred to the State Department, to be absorbed or liquidated so that the element would cease to exist on December 31, 1945. On January 22, 1946, the Chief Executive created the National. In- telligence Authority consisting of the Secretaries of State, war, and Navy, and the President's personal representative, to plan, develop, and coordinate Federal foreign intelligence activities so as to assure the most effective accomplishment of the intelligence mission for national security. This Presidential directive also created a Central Intelligence Group (CIG) under the direction of a Director of Central Intelligence (DCI), designated by the President to assist the National Intelligence Authority (NIA) and to be responsible to it, The directive specified that the head of CIO would sit as a member of the NIA. It charged the Central Intelligence Group with the task of correla- ting, evaluating, and disseminating intelligence relating to the national security; with coordinating such activities of the intelligence agencies of the State, War, and Navy Departments as related to the national security; and with ps rforming other services of common concern. Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 By the National Security Act of 1947, as amended (Public Law 2S3, 80th Conge., July 26, 1947), the Congress established a National Security Council (Nsc) which took the place of the old National Intelli- gence Authority; and created under the National Security Council a Central Intelligence Agency (CIA) with a Director of Central Intelli- gence (DCI) as its head. The National Intelligence Authority ceased to exist. Under the provisions of this Act, the National Security Council established an Intelligence Advisory Committee (IAC) made up of the various intelligence chiefs, to advise the Director of Central intelli- gence in his efforts to coordinate the intelligence activities of the nation. 21 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 N INTELLIGENCE PERSONNEL AND SECURITY Character of the Present Working Force The methods used for selection of personnel were reassuring in the light of suspicions which have been voiced that subversive and communistic elements were readily infiltrating into these sensitive jobs, Our in-- vestigatiors indicated that the intelligence leadership in all branches is alert to its responsibility and is functioning under strict rules designed to prevent any such infiltration. One flaw in the present system, however, seems to be the absence of a general plan for a periodic review of the security status of every person after employment in intelligence activities, to guard against the possibility that some employee who was completely dependable and honorable when starting work might have changed character, fallen from grace, or succumbed to alien blandishments or some personal weakness such as strong drink or sexual perversion. The task force makes recom- mendations to minimize this hazard. The continuing need for skilled civilians in certain categories of intelligence work suggests further use of the appointment method under Schedule A of the Civil Service program by some intelligence units. Policies and procedures to give assurance of security of personnel follow a standard pattern in all of the agencies concerned (FBI, ONI, G-2, AFOIN, CIA, and State) and are generally adequate. The major obstacle in this area is the load thrown upon investigative agencies in providing personnel clearances. Backlogs exist in all agencies, and the time re- quired for complete clearance checks and.full background investigation Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 runs as high as fifteen months. Such long delays hamper certain phases of the intelligence program to which these prospective employees are to be assigned, and some potential intelligence personnel are lost to the intelligence community. They grow tired and restive at the long wait and accept other offers of employment. G-2 Personnel and Security All military assignments to G.2 are made by The Adjutant General (TAG) in a manner similar to other assignments. Idthin G-2, however, there are certain key billets in which G-2 has a special interest. In such cases, selection of qualified personnel to meet specific requirements is made from nominations by TAG. With only a few minor exceptions, the quality of personnel in G-2 was found to be of an exceptionally high order. Contact with officers in this field indicated that they were alert to their obligations and duties. Personnel records of those who may have had experience in intelli-. gence are clearly marked so that such men are not lost to the system and may be made available readily for future assignments in this work. Most senior officers wish to retain attachment to their basic branches of service, but feel that an intelligence assignment is beneficial to their career, Regulations and necessary implementing procedures for compliance with Executive Order No. 10501, titled "Safeguarding Official Information in the Interests of the Defense of the United States" are in effect and are well observed.. Personnel attached to G-?2 are security conscious to a high degree. Poster and lecture programs help to keep them continually alert and ever conscious of their responsibility. 23 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 ONI Personnel Security policy in the Navy is vested in the Secretary of the Navy. Preparation of security policies has been delegated, through the Chief of Naval Operations, to the Director of Naval Intelligence. Administrative work in the Office of Naval Intelligence is in the hands of the Assistant Director of Naval Intelligence, Administration. Manpower and management surveys are continuously conducted by this division to maintain both efficiency and economy throughout ONI. In addition to ONI, three other offices have responsibilities in certain phases of security. They are the Bureau of Personnel, in matters of military personnel security; the Office of Industrial Relations, in matters concerning security among civil service personnel within the Navy; and the Office of Naval Material, in matters of industrial security. Each was surveyed and appeared to be functioning adequately. The major portion of military personnel assigned to intelligence duties are not specialists; they are line officers. Provision was made in the Military Personnel Act of 19)7 to include intelligence specialists in the Regular Navy. However, since by law none of these "Special Duty Only" officers may succeed to command, and since command is the usual stepping stone to flag rank, the "Special Duty Only" class of service is unpopular. The present tour of the Naval attache is two years. Because of personnel limitations, it has not been possible to send all Naval attaches to language schools. Many attaches are just getting proficient in the language of the area to which they have been assigned at the end of the tour, 24 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The other two services use the three-year tour, and so does the ONI. It would seem logical to bring the Naval attache's tour in line by making it three years also. Air Force Intelligence Personnel Air Force security operations are centered in the Office of the Deputy Inspector General forSecurity. The Deputy Inspector General has two directorates that of the Office of Special Investigations, and of the Air Provost Marshal, with the functions of security divided between these directorates. The Office of Special Investigations is responsible for conducting all personnel background investigations within the jurisdiction of the Air Force and for forwarding final reports on completed investigations to interested commanders for appropride action. Close liaison is maintained with the Federal Bureau of Investigation, Civil Service Commission, and other investigative and law-enforcement agencies. Regu- lations have been published for the purpose of establishing uniform policies and procedures for the personnel security investigation and clearance of Air Force military and civilian personnel requiring access to classified information. There is some reluctance now on the part of career service personnel in the Air Force to take assignments or to specialize in intelligence work because of the limited opportunities to reach the grade of general officer 25 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 in this field. If the Director of Intelligence had seater :Lat?tude in the selection of personnel, an improvement in this ;enera l attitude night be achieved. The service would be more attractive if some of the highly trained officers he would select could anticipate eventual elevation to the grade of general officer. Because of Civil Service restrictions, the Air Force also has exper- ienced difficulty in cbtaining civilian personnel suitable for special intelligence duties. Certain specialists, such as analysts, need great technical skill and long experience, are generally in short supply and reluctant to be placed under Civil Service. Civil Service exemptions for a limited number of such experts would help the Air Force to overcome this deficiency more readily. Industrial Security The intelligence units of the armed services realize fully that vital secrets placed in the hands of private industry must be amply pro- tected without sacrificing efficiency or hampering production. "The Armed Forces Industrial Security Regulation" (AFISR), dated January 15, 1953,, and issued by the Department of Defense, is the current directive governing security in this area. Instructions to contractors regarding the handling of classified material are set forth in a Department'of De- fense publication bearing the title "Industrial Security Manual for Safeguarding Classified.Information< (ISMSCI). AFISR effectively coordinates the industrial security activities of all military agencies engaged. in procurement operations. Prior to its issuance, agencies operated individually under their own departmental directives and supervision. AFISR fixes responsibility for plant super- vision, designates procedures for clearance of both facilities and individuals, and eliminates duplication of effort and uncertainty over 26 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 After a plant has received agency clearance, it is eligible to ac- cept classified material from any agency The agency which is having the work performed in that plant and which gave the clearance for 'that work, is responsible for the contractors obedience to the security instructions. A serious weakness in the industrial personnel security program arises from the fact that an individual who has been declared to be a security risk, although removed from work of a classified nature, might still be retained in the same plant. Becc.use he has daily personal contact with employees engaged in sensitive production and enjoys freedom of movement wi thin the plant, such an employee still would have access to material and information of great value to a potential enemy of this country. The military departments are aware of the situation and have recom- mended legislation to correct this deficiency. The task force commends such a proposal and feels that this loophole in our security barriers should be closed promptly. Individual Security Cases In the conduct of this survey, the task force assiduously endeavored to keep its effort focused and to expend its time and resources in the accomplishment of the specific duties assigned to it by the Hoover Commission - to study and investigate the present organization and methods of operation of the members of the intelligence community, and to deter- mine what changes, if any, would he necessary or desirable. Although detailed study of the policies, functions, and procedures of the d pa +liMeubs and agencies collecting and handling intelligence data, as outlined to us by the Commission, did not primarily entail the in- vestigation of the security angle of every individual engaged in intelligence, we recognized the fact that the character of personnel affects these intelligence functions, and we faced squarely the issue of individual cases under suspicion or brought to our attention from 27 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 various sources. A number of names came to us with supposedly deroga- tory information or merely with derogatory implications. When any such information or any name was brought to our attention from any source concerning individuals employed in the intelligence field, or even if not so employed, every case except those obviously without merit was referred to the Federal Bureau of Investigation, or, where appropriate, to the responsible intelligence agency, or to both, with a request for a report? Up to the time this report was prepared, some replies to our in- quiry developed information to the effect that the records contained no adequate basis for suspicion of the individuals as security risks`. Some replies indicated that the individuals were under investigation and that the investigations were continuing, One of the individuals is on leave without pay, pending completion of an investigation now in process and appropriate disposition. 28 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 The task force fully realizes that the Central Intelligence Agency, as a major fountain of'intelligence for the nation, must of necessity operate in an atmosphere of secrecy and with an unusual amount of freedom and independence. Obviously, it cannot achieve its full purpose if subjected to open scrutiny and the extensive checks and balances which apply to the average governmental agency. Because of its peculiar position, the CIA has been freed by the Congress from outside surveillance of its operations and its fiscal accounts. There is always a danger that such freedom from restraints could inspire laxity and abuses which might prove costly to the American people. Although the task force has discovered no indication of abuse of powers by the CIA or-other-intelligence agencies, it nevertheless is firmly convinced, as a matter of future insurance, that some reliable, systematic review of all the agencies and their operations should be provided by Congressional action as a checkrein to assure both the Congress and the people that this hub of the intelligence effort is functioning in an efficient, effective, and reasonably economical manner. Within the Armed Services- Committee, there is a liaison channel between the Congress and CIA which serves a worthy purpose, but which cannot include private citizens in its membership and has not attempted to encompass the wide scope of service and continuity which this task force considers essential for "watch-dog" purposes. 29 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The task force recognizes that secrecy is necessary for proper operation of our foreign intelligence activities but is concerned over the possibility of the growth of license and abuses of power where disclosure of costs, organization, personnel, and functions are pre- cluded by law. On the other hand, sporadic investigations in this field might inadvertently result in unauthorized disclosure of classified infor- mation to the detriment of the intelligence effort. Periodic audits or studies by some qualified, impartial agency would remove both of these dangers and would also allay any suspicions and distrust which have developed in the public mind by the complete secrecy of these operations. Such a procedure also might serve to shield our intelligence program from unjustifiable attacks upon the agencies concerned, and enhance public confidence and support of this vital work. The Central Intelligence Agency Act of 1949 legalized the administrative procedures for the Agency. It was passed by the. Congress on the unanimous recommendation of the Armed Services Committee. Agency Gets Wide Exemptions The Act exempts the Agency from compliance with any provision of law limiting transfers of appropriations; any requirements for publication or disclosure of the organization, functions, names, official titles, salaries or numbers of personnel employed by the Agency; and any regulations relating to the expenditure of Govern- ment funds. 30 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 The widespread conviction among Members of Congress that this situation should be corrected is indicated by the fact that more than a score of resolutions have been introduced in the current session calling for a review or watch over our intelligence activi- ties, usually by a large joint committee of the two Houses. The task force, however, envisions as the groper agency for this watch-dog job a small, permanent commission modeled after the Commission on Organization of the Executive Branch of the Govern- ment - a bipartisan group including members of both Houses of Congress and distinguished private citizens appointed by the President. Members chosen from private life to serve on this proposed watch-dog commission should come from a select group of loyal, qualified, and public-inspirited citizens who command the respect and confidence of the American people. Comprehensive periodic studies of the foreign intelligence activities of the United States would be made by the commission, with special attention to the questions of whether the assigned work of these intelligence agencies is being carried on efficiently and effectively; whether there is any unnecessary overlapping or duplication of effort between civilian and military intelligence agencies; whether the staffs are of 'a size justified by their assigned functions and producing the intelligence required for the security of the nation; whether expenditures are within budget authorizations and in keeping with the expressed intent of the 31 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Congress; whether fiscal policies and procedures are in conformity with sound accounting principles and practices to the maximum extent possible; whether any of their activities or policies are in conflict with the foreign policy aims and program of the United States; and whether the effort of any of these intelligence agencies is being dissipated or adversely affected by assignment of added functions alien to intelligence. The commission would require a all permanent staff, with the usual provisions for employing attorneys, experts, consultants, and auditors, for expenses and for compensa- tion of members and employees. It would be empowered to hold hearings and to subpoena witnesses, under adequate safeguards to prevent the public disclosure of classified defense information which it might receive; but would have the authority to demand and receive from any source any information it might need for its own use. The overall aim'would be. the promotion of aggressive. leadership which mould unify the intelligence effort, make it more productive, and inspire a higher spirit of teamwork through elimination of petty competitive jealousies. Would Stud* Complaints The proposed commission should hold itself available to receive and to study all complaints against any of our intelligence agencies; to maintain a familiarity with the activities of these agencies as a safeguard against the abuse of their proper functions; to consider requests of the agencies for legislation, and, where advisable, to 32 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 support the needs of the intelligence community before the Congress, and advise the Congress on the effects of proposed legislation on our intelligence effort. An integral part of its duties would be reports of its findings and its recommendations to the President and to the Congress anpualiy and at such other times as might be appropriate or necessary. QOne of the fundamental purposes of these reports would be to keep the public informed, within the bounds of security,, of the value. and the vital accomplishments of the intelligence oomm pity and provide an angwer to unfounded complaints and criticisms which have tended to arouse fears and distrust of the intelligence effort in the minds of the people.. 'Public support thus engendered certainly would improve the effectiveness of 'the intelligence operations, and foster public parti.cpat.ion in the collection of overt intelligence. data. The people who support these operations are entitled to assurance that the Investment is paying dividends; With such assurance,, they would develop an enthusiasm and alertness which could bring in valuable information at times to. supplement the work of the regular intelligence forces. 33 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 VI FUNCTIONAL INTELLIGENCE Map Procurement The task Force found map requirements and production for intelligence purposes well coordinated. Through the years, there has developed by mutual cooperation among the departments and agencies, a committee whose primary function is to prevent dupli- cation in map procurement. There is established-within the Bureau of the Budget an Examiner of Surveys and Maps, who coordinates all map-making programs.to avoid duplication and overlapping of functions. The system seems to be efficient and effective. Trustworthy and up-to-date intelligence cartography is one of the major elements utilized in intelligence operations. The cost of this phase of the work is substantial, but we found this expense to be justified by the results achieved. Intelligence Libraries On the basis of visits made to the-intelligence libraries maintained by the military services., the CIA, and the State Department, the task force believes that these libraries in general are efficiently..ope?ratedo There is a workable system in effect among the agencies for notification of availability and exchange of information. There has been considerable discussion of the idea of putting all the material in the possession of all intelligence agencies in one central library, 34 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The value of a library depends an the ready accessibility of its material to the users.. its use and effectiveness declines when those who heed it must become Involved in complicated procedures and delays in obtaining mate r:a al, The taskforce feels that a central library would foster the developmen:t'of private desk-side libraries and the retention by indi- viduals of material for protracted periods, with the resultant denial or delay in access to others., Establishment of a central library, therefore, seems impr.4cticableo However, for the purpose of providing ready reference and more facile access to the various intelligence data by any department or agency, the task force suggests that all departments within the efense Establishment;Arad the Department of State adopt the single- index system based on the intelligence subject code now in use by the CIA and the Air Force libraries. The value of such a standardized ,procedure probably would be well worth the expense involved" Various elements in the intelligence family have..come up with divergent definitions and interpretations of certain words and phrases in common use by the intelligence community; The resultant confusion could be eliminated by standardization. To that end, the task force proposes that the National Security Council produce an agreed glossary of terms and definitions and provide for periodic review of this glossary, 35 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 VII COICLUSIONS AND RECOMMENDATIONS In summarizing its findings and its recommendations., the task force at the outset found, in general, that the intelligence effort is being pursued in a diligent and dedicated manner. It noted throughout the intelligence community an atmosphere of urgency and a desire to get on with the job of breaking through security barriers erected by our potential enemies. However, instances of inefficient practices were disclosed, and recommendations to correct them have been made,, The domestic counterintelligence effort was found to be effec- tively coordinated among the departments and agencies concerned. Positive direction and mutual support are provided through the operations of the Interdepartmental Intelligence Conference and the Interdepartmental Committee on Internal Security. Specific responsibility in the domestic area of each counterintelligence agency is established partially by statute, and is further defini. tively specified by a WDelimitatlons Agreement" to prevent over- lapping and.duplication of effort, Recommendations covering overseas counterintelligence opera- tions, carried out by the military service* and the Central In- telligence Agency, are contained in our classified report. 36 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The domestic security and counterintelligence functions of the Federal Bureau of Investigation were found to be conducted efficiently and effectively,, This Bureau renders competent and highly cooperative assistance to other Government intelligence agencies and performs an essential and important function in the overall intelligence effort, The National Intelligence Survey is an invaluable publication which provides the essential elements of basic intelligence on all areas of the world. While its production involves an extensive and expensive efforts all members of the intelligence community derive an immediate benefit from the contributions they make to it and profit from the final product6 There alas ys will be a continuing requirement for keeping this survey up to dates Administrative Flaws Noted The task force concluded that the legislation and organizational setup for intelligence punr?posee are soundly conceived., but that ad. m nistrative flaws are in evidence. Accordiscsglys it has pointed most of its suggestions in that direction. Failure to produce certain elements of intelligence has been due in part to the restrictive effects of some of our national attitudes and policies toward the collection of intelligence so necessary for effective resistance to Soviet aggressions, Also among some of those responsible for implement tion of our foreign policy by diplomacy and negotiations, there seem- to exist an abhorrence to anything that might lead to diplomatic or even protocol compiicatione0 3? Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 This negative attitude usually at the desk level,, mt times has stifled initiative and action in the collection of intelligence, Some of these of orts if permitted to proceed properly, might have brought direct and immediate results and made positive contributions to the national welfare that Mild have justified the attendant poli- tical risks and possible inconsequential diplomatic embarrassment, Data. on. Soviet .Bloc Inadequate Security measures adopted by the Communists have been provokingly conceived and boldly employed, They have been quite effective in com- parison with our security measures, which have permitted the collection of vital.secrets in this country with relative ease? The information we need, particularly for our Armed Forces, is potentially available, Through concentration on the prime target we must exert every con- ceivable and practicable effort to get it, Success in this field de- pends on greater boldness at the policy level, a willingnesa;to accept certain calculated political and diplomatic risks, and full use of technological capabilities, The task force is of the opinion that the Director of Central Intelligence should employ an Executive Director, or echigf of staff, of the Agency so that the DCI might be relieved of the chore oftmany day-to-day administrative and operational problems,, and thus be able to give more time to the broad, overall direction of the Agency and the coordination of the entire intelligence effort,, 38 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Recommendations with Respect to Personnel The effectiveness of oar national intelligence effort is measured to a large degree by the character and ability of the personnel, both mi .itaiy and civilian,, w ng ,g d in this work. The diligent and dedi. cated effort, of the 1r telligew e community was evident to the task force, Some probier however, exist in the personnel management field, These problems, taken collectively, seriously affect the morale;, the availabilityo and the quality of the intelligence personnel. The task force presents detailed recommendations later in this report, with a view to improving the prestige of the civilian analyst; developing weal career incentives in intelligence, relieving the critical shortage of qualified intelligence personnel by tapping the valuable pool.,of.retired civilian business men with experience abroad, and of especially trained and qualified retired military personnel; broadening the base of civilian employment to provide greater flexi- bility of recruitment, of the best qualified individuals; improving the conditions of servi e of CIA. personnel, stationed abroad, and increasing the salaries of certain key officials in CIA. RECOMMENDATION NOd 1 THAT THE CENTRAL INTELLIGENCE AGENCY BE RHORGANIZED. INTERNALLY TO PRODUCE GREATER EM?] ASIS ON C1+R.TAIN OF ITS BASIC STATUTORY FUNCTIONS;* AND *Details and supporting factual matter relating to this recommen- dation are contained in the separate classified report of the task force,, They cannot be incorporated in this public report for security reasons 39 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 THAT THE DIRF:"a-:DR OF CENTRAL INTELLIGENCE EMPLOY AN EXECUTIVE OFFICER OR "CHIEF OF STAFIN, OF THAT AGENCY, RECOMMENDATION NOS 2 THAT A SMALL, PERMANENT, BIPARTISAN COMMISSION,. COMPOSED OP MEMBERS OF BOTH HOUSES OF THE CONGRESS AND OTHER PUBLIC-SPIRITED CITIZENS CON'NNMANDING THE UTMOST NATIONAL RESPECT AND CONFIDENCE, BE ESTABLISHED BY ACT OF CONGRESS TO MAKE PERIODIC SURVEYS OF THE ORGANIZATION, FUNCTIONS, POLICIES, AND RESULTS OF THE GOVERNMENT AGENCIES HANDLING FOREIGN INTELLIGENCE OPERATIONS; AND TO REPORT., UNDER ADEQUATE SECURITY SAFEGUARDS., ITS FINDINGS AND RECOMMENDATIONS TO THE CONGRESSg, AND TO THE PRESIDENT, ANNUALLY AND AT SUCH OTHER TIMES AS MAY BE NECESSARY OR ADVISABLE. THE PROPOSED '*WATCH-DOG* COMMISSION SHOULD BE EMPOWERED BY LAW TO DEMAND AND RECEIVE ANY INFORMATION IT NEEDED FOR ITS OWN USE, IT MOULD BE PATTERNED AFTER THE COMMISSION ON ORGANIZATION OF THE EXECUTIVE BRANCH OF THE GOVERN- MENT (HOOVER COMMISSION)o APPOINTMENTS BY THE PRESIDENT OF PERSONS FROM PRIVATE LIFE TO THE PROPOSED COMMISSION SHOULD BE MADE FROM A SELECT LIST OF DISTINGUISHED INDIVIIXJALS OF UNQUESTIONED LOYALTY, INTEGRITY, AND ABILITY., WITH RECORDS OF UNSELFISH SERVICE TO THE NATIONO 10 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 The tremendous importance to our country of the intelligence function, and the unpublicized and selfless duties performed, de- mand that the prestige of this function # and of the personnel in- volved, be recognized through the use of adequate career incentives and benefits to encourage full development ox talent within the intelligence commxnityo R,E3O1 ENDATION NO. THAT THE ESC IT IVE PAY BILL OF 1949 BE AMENDED TO INCREASE THE ANNUAL SALARY OF THE DIRECTOR OF CENTRAL INTELLIGENCE TO THE EQUIVALENT OF THE PAY OF THE DEFCTY SECRETARY OF DEFENSE (N $20,,000); TO BRING THE COMPENSATION OF THE DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE UP TO $17,,500.9 THE SAME AS THAT OF MOST UNDER SECRETARIES OF THE EI ICUP]VE BRANCH AND TO PROVIDE OPERATING DIRECTORS OF AREAS OF RESPONSIBILITY IN INTELLIGENCE WITH PRO- PORTIONATE SALARIES] AND THAT THE CHIEFS OF THE VARIOUS INTELLIGENCE UNITS OF THE MILITARY SERVICES BE ELEVATED IN THE ORGANIZATIONAL STRUCTURE TO THE IEVEL OF DEPUTY CHIEFS OF STAFF IN THE ARMY AND THE AIR FORCE, AND DEPUTY CHIEF OF NAVAL OPERATIONS IN THE NAVY$ AND 41 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 THAT THE CENTRAL INTELLIGENCE AGENCY ACT OF 19149 BE AMENDED TO PROVIDES A. ADDITIONAL MEDICAL AND HOSPITAL BENEFITS AND SER- VICES FOR DEPENDENTS OF CIA EMPLOYEES WHEN STATIONED OVERSEAS, SIMILAR TO THE BENEFITS AUPHORIZFM FOR DEPENDENTS OF MEMBERS OF THE FOREIGN SERVICE. B. STATUTORY LEAVE BENEFITS (AND ACCUMULATION OF LEAVE) FOR EMPLOYEES OF CIA OVERSEAS., AS NOW APPLIED TO MEMBERS OF THE FOREIGN SERVICE. Retired civilg' ns with long business experience in the foreign field constitute a possible source of important contria. butions to the intelligence effort., and this resource shoad be exploited fully, There is also a valuable reservoir of retired military personnel with foreign experience which might well be utilized. One major advantage in the exploitation of these groups would be the speed with which they could be fitted into the intelligence picture because they would come in with a large part of the necessary training already behind them, 42 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 RECOMMENDATION NO. 4 THAT THE CENTRAL INTELLIGENCE AGENCY ACT OF 1949 BE AMENDED TO AUTHORIZE EMPLOYMENT BY THE CIA OF RETIRED MILITARY PERSONNEL OF THE ARMED SERVICES WITHOUT AN ARBITRARY LIMITATION ON THE NUMBER OF SUCH EMPLOYEES (THE LIMIT NOW IS FIFTEEN) AND WITHOUT REGARD TO THE LAW LIMITING THEIR COMPENSATION; EXCEPT THAT SUCH PERSONNEL. SHOULD BE AUTHORIZED TO ACCEPT EITHER THEIR MILITARY RETIREMENT PAY PLUS ANY DIFFERENCE BETWEEN THEIR RETIRED PAY AND THE PROPER PAY OF THE OFFICE THEY MOULD HOLD IN CIA OR THE PROPER PAY OF THE OFFICES BUT NOT BOTH? AND THAT THE DEPARTMENT OF DEFENSE MAKE EXTENSIVE USE OF SCHEDULE A OF THE CIVIL SERVICE REGULATIONS (NON=COMPETITIVE APPOINTMENTS) IN THE EMPLOYMENT BY THE MILITARY SERVICES OF CIVILIAN INTELLIGENCE ANALYSTS AND OTHER SPECIALISTS IN ORIIER TO PROVIDE THE NECESSARY FLEXIBILITY IN THE RECRUITMENT OF QUALIFIED CIVILIAN PERSONNEL (TO INCLUDE RETIRED CITIZENS WITH WIDE PREVIOUS BUSINESS EXPERIENCE IN THE FOREIGN FIELD) AND TO FACILITATE THE INTERCHANGE OF SUCH PERSONNEL BETWW ZONE OF INTERIOR COMPETITIVE. SERVICE AND THE OVERSEAS EXCEPTED SERVICE. 43 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The task force is satisfied that the personnel security pror~xm and procedures within the intelligence community are adequate to minim ze the possibility of security risks and to make extremely unl.ike1y their employment in sensitive positions .in? the intelligenc,' agencies except in the procedure for sys- temat c .re.ch.eok.i,r, g.. of all, per-sonn,el to make sure that the passage of_ time h0. ,not. altered the trustworthiness of any .employee, and to make certain that hone has succumbed to some weakness of intoxicants or sexual perversion,, or developed some ,other shortcoming that would disqualify him from further sensitive work, The Federal Bure..u of Investigation has adequate safequards against such a danger RECOMMENDATION NO. TR(T MEASURES $E INSTITUTED IN ALL AGENCIES FOR RECHECKING THE SECURITY STATUS OF ALL PERSONNEL ENGAGED IN INTELLIGENCE ACTIVITIES AT PF,RIODIC INTERVALS NOT TO EXCEED FIVE YEARS IN ANY INDIVIDUAL CASE; 44 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Our Government and its intelligence forces are not fully exploiting the possibilities of valuable military and technological data potentially available in scientific reports and technical publications issued in foreign countries, The State Department now is charged with this duty,, Under this arrangement,,, we lack adequate collection facilities and staff experts to evaluate the material, RICO ,TIONN NO, 6 THAT THE RESPONSIBILITY FOR PROCUREMENT OF FOREIGN PUBLICATIONS AND FOR COLLECTION OF SCIENTIFIC INTELLIGENCE BE REMOVED FROM THE STATE DEPARTMENT AND PLACED IN THE HANDS OF THE CIA,, WITH AUTHORITY TO APPOINT SUCH SCIENTIFIC ATTACHES AS MAY BE NECESSARY TO CARRY ON THIS 'HARK ABROAD. 45 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Efficient handling of intelligence information deTnde modern quarters for the personnel and the records. The Central Intelligence Agency, after eight years of operations still lacks such facilities, RECOMMENDATION NO. 7 THAT THE CONC tESS APPROPRIATE AS SOON AS PRACTICABLE THE FUNDS NECESSARY TO CONSTRUCT ADEQUATE HEADQUARTERS FACILITIES FOR CIA IN OR NEAR WASHINGTON, D.C. 46 Approved For Release 2009/03/27: CIA-RDP61-00017A000200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 The task force believes not only that great care r'ist be taken in the seletion of highly qualified persons, bath technologically And intelligence-wise, for, the group super. vising atomic energy intelligence data, but that changes in the .group should be made as infrequently as possible, RECOI NDATION NO. 8 THAT STEPS BE TAKEN TO INTRODUCE HIGHLY SELECTIVE METHODS OF CHOOSING MEMBERS Off' THE COORDINATING COMMITTEE ON ATOMIC ENERGY INTELLIGENCE, NOT ONLY TO GET THE BENEFIT OF SERVICE BY THE MOST COMPETENT INDIVIDUALS, BUT ALSO TO ASSURE TANG TENURE IN THIS IMPORTANT ASSIGNMENT, 47 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Lack of adequate linquietic preparation often has proved to be a serious handicap to our representatives abroad, This became painfully apparent during the Korean War, The ability to write and speak the language fluently., and to interpret foreign words and idioms accurately always helps an American to get around in an alien land., to win the confidence of its People,., and to understand theme RECOMMENDATION NO. 91, THAT A COMPREHENSIVE., COORDINATED PROGRAM BE DEVELOPED TO EXAND LINQUISTIC TRAINING AMONG AMERICAN CITIZENS SER- VING THE INTELLIGENCE EFFORT; AND THAT THE DEPARTMENT OF DEFENSE EXPAND AND PROMOTE LANGUAGE TRAINING BY OFFERING CREDIT TOWARD RESERVE COM- MISSIONS TO ROTC STUDENTS AND DRILL. CREDIT 1 RESERVE PERSONNEL FOR COMPLETION OF SELECTED LANGUAGE COURSES, Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6 25X1 i SENDER WILL CHECK CLASSIFICATION TO OTTOM UNCLASSIFIED CONFIDENTIAL CENTRAL INTELLIGENCE AGENCY OFFICIAL ROUTING SLIP TO NAME AND ADDRESS INITIALS DATE 2 DTR 3 4 5 6 ACTION DIRECT REPLY PREPARE REPLY APPROVAL DISPATCH RECOMMENDATION COMMENT FILE RETURN CONCURRENCE INFORMATION SIGNATURE Remarks : Attached is the DTR copy of the Clark Committee Re ort per your request to Please return copy to this office when you finish reviewing it. I- ~ T~ I '777 FOLD HERE TO RETURN TO SENDER FROM: NAME, ADDRESS AND PHONE NO. DATE DTR----------11, T-31 10/16 UNCLASSIFIED CONFIDENTIAL F I OR M . 23 ( Replaces Form 30-4 which may be used. Approved For Release 2009/03/27: CIA-RDP61-00017AO00200040001-6