GENERAL CABELL SPEECH

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CIA-RDP78-03527A000400170044-6
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November 6, 2001
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ERET Approved FQLRelease 2002/01/07 : CIA-RDP78-0352tA000400170044-6 e144' qupw, ;UR'S CAB= responsibilities for ;the National Security, and our understanding of the teamwork which is so vital in carrying out our task. Tirst, the CIA is part of the governmental Intelligence Community. It gets its job done by means of corrobora- tion, work, and assistance from and to other Government agencies. The associations which our people make among their classmates are not only lasting and personal, but help us substantially in this respect. And, finally, I think that the students gain, too, by their association with the CIA representatives. Now, we have arranged a presentation for you today which will de- scribe how and why CIA came into being, and what it does, how it is organized in work, arid where it is placed in the National Security structure of the Government. You will also hear something about our intenZcprtrtmental relationships and overseas activities. But since a large number of you are military officers, before turning the program over to other speakers, I should like to spend a few minutes in dis- cussing some of this Agency's activities. I believe that this subject will also interest those of you who were with other agencies.1-One of the principal tasks assigned to the DireCtor of Central Intelligence that of co-ordination. This task is accomplished/through a variety of methods, from the. formal Intelli- ganneAdvisars_Cemmittee machinery to the informal day-to-day working level opposite-number contact and communication of ideas. This com- munication and exchange of ideas between ourselves and the #ilitary services is enhanced by the assignment to CIA of a good number of military officers and enlisted men. In fact between five and fifteen percent of our personnel are active-duty military people. (Now I am giving a bracket here that is five to fifteen percent rather than the CATE GUT ?2n--- VI ./ l '11PE C11:6 ;',LAS _.5.-__ f;4071'S ilLY O.ASS ?4:------ Iii0 ___42sa ____ 314E:XT REV 41)'----ii---. AUTH; Ha 10.2 1 __,----------1 asom Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 )5.1R SECRET Approved For-Release 2002/01/07 : CIA-RDP78-035244000400170044-6 actual percentage because we think it important that the total Agency strength remain secret.) Now this admixture of civilian and military talent, points of view, traditions, and concepts is healthy. It provides an essential balance to our business. The mixture assists in maintaining mutual understanding and confidence between this Agency and Defense. It alto provides many opera- Ii itberwiae would be awkward, if not impossible, to Approved For Release 2002/01WMIA-RDP78-03527A000400170044-6 SECRET Approved Fonaelease 2002/01/07 : CIA-RDP78-03527000400170044-6 In our leadership role it has taken time to develop understood policies and procedures and get them in working order. There undoubt- edly have been, in this period, some people on both sides who have been. made unhappy or frustrated and who, without much soliciting, bevie'a story to tell. I would like to think that the good points of our eels tionship overcome those more isolated instances, and I hope that when you return to your own service you carry with you an improved under- standing of this Aeeney's role in the overall National Security struc- ture and of its relationship with your own departments. Miany of you on graduation will return to your parent services and assignments Which will prevent you with a need.-to-know about some of our specific operations. I hope you will feel free to call upon us at that time for information. Others of you at some point in your career may have an opportunity to serve with CIA, and I. trust that the brief- ing you get today will give you further insight into the advantages and disadvantages of such an assignment. I will now turn the rostrum beak over to Mr. Baird., our Director of Training, who has organized the pre-. sentation and who will introduce speakers and monitor the question period. Thank you very miah? Next speaker will be the Inspector General, Hr. Lyman B. Kirkpat who will speak to you cn the origin* the mission, and tha structure of CIA. Mk 'MOLD- XXMATPICi Admiral Wooldridge, Gentlemens September 18th, this year, will mark the tenth anniversary of the Central Intelligence Agency, as well as the United States Air Force, :oint Chiefs of Staff, Department of Defense, and the Nations l Security Council. Here is a brief history, a eummary history, of the modern origin of the Central Intelligence concept of the U.S. Government. In 1940, when the Western allies were at their lowest ebb, President Roosevelt asked Col. William J. Donovan, of New York, to take two trips abroad to find out what the true situation was. Col. nonovan, as you may remember, was the Medal-of-Honor winner with the Fighting 69th in World War I and, as a prominent New York attorney, had been very active and interested in international affairs. His first trip went to south- ern Europe, into the Balkins? and he came back and reported on that at a time when many senior Ls. representatives abroad were counselling that the British could not possibly hold out against the Germans. Consequently, later in the year Donovan went back and talked to many of the leaders of the French and British. Be reported to the President that he thought the British would hold out, but that the United States should gird itself for global warfare. And here Donovan's prime interest and information and intelligence of oubversive activities came to the fere and he urged the creation of an intelligence structure of this nature. .3. Approved For Release 2002/6EanCIA-RDP78-03527A000400170044-6 ROL! Approved For-Release 2002/01/07 : CIA-RDP78-03527000400170044-6 He went around and talked to Seoretary of Navy Knox, Secretary of War Stimpson, and Attorney General Jackson, and urged the creation of an organization in the United States Government that would merge intell- igence with the forces of propaganda and subversion. On June 10th, 1941, Donovan proposed a Service of Str4egic Infor- mation be oreated. This organization, he suggested, would have an advisory body composed of the heads of Intelligence of the Army and Navy, and the bead of the Federal Bureau of Investigation, and a representa- tive from the White House. It would have the right to collect and analyze intelligence of the strategic nature independently and it would not interfere' in any way, with the responsibilities of the mutual departments for the collection and analysis of departmental intelligent*. This was the origin of the Office of the Co-ordinator of Information, which combined overt propaganda with researchoanalysis and intelligence with clandestine activities. In June 1942, this office was splits, and there was created from the information portions the Office of War Information, whioh is a predecessor to our current U.S. Information Agency. From the balance of the organization there was created the Office of Strategic Services. From the Office of Strategic Services the modern Intelligence Community inherited certain as3ets. These included some techniques and collection of overt clandestine intelligence. It included certain counterespionage files which had been developed primarily with the assistance of the British: it included some very sound new techniques in research and analysis in basics intelligences there were some skilled personnels and, last but not least, there was a reservoir of relationships with certain key Foreign Intelligence aervices. As a result of this early start, bevertaL-of tha senor officials in the U.S. Intelligence Community during the war started to think *boa a peace-time intelligence service. On August 25th, 1942, Brig. Gen. John MoGruder, later to be Deputy Director of OSS, proposed a Joint Intelligence Bureau under the Joint Chiefs of Staff. This started a period of about two years of intensive thinking, proposals and counter- proposals for a combined Central Intelligence Agency organization. There was considerable discussion as to where this organization should report, Whether it should report directly to the President, whether it should report to the Joint Chiefs of Staff, or whether it should report to the Department of State; and, needless to say, there were very strong views held on the behalf of each of these points. On October 5th, 1944, General Donovan produced a paper entitled 0.4 Proposal for a Permanent World-wide Intelligence Service." Now there were certain basic principles in this paper which it is interesting to note. It proposed that this world-wide intelligence service should have independent oommunications, and Should have an independent intelligence Approved For Release 2002/RWCIA-RDP78-03527A000400170044-6 SECRET Approved For-Release 2002/01/07 : CIA-RDP78-0352A000400170044-6 collection organisation. On the other hand, it stressed the feet that the new organization was in no way to out into the rights of the established departments for the collection, anelysis and dlessmination of their own intelligence, and it proposed that the head of the new organization should report directly to the President. This paper became the basis for further intensive discussion on the subject of an intelligence organisatien. Seoretary of War Stimpson, in his postwar biography written with McGeorgeBundy bad a rather inter- esting comment in this context. read it to yott Stimpson was insistent that no impatience eith its occasional eccentricities should deprive the Army of the profits and oo-operation with Gen. Donovan's Office of Strategic Services. Throughout the war the intelligence activieies of the United States Government remained incompletely co- ordiezted, but, here again, it was necessary to measure the profits of reorganization against its dislocations and on the whole Stimpson thought that the American achievement in this field measured against the condi tions of 1940 was more than satisfactory. A full reorganization belonged to the postwar period. As a result of thielonovan paper of October 1944 the Joint Strategic 8urvey Committee came up with a proposal of its own. This is on emery 18th, 1945.. Maw of its proposals were identical with the Donovan paper. However, in this particular paper, it created a National Intelligence Authority composed of the Secretaries of State, War, and Navy and Cheers of Staff to the President. It proposed an Advisory Board to the new central organization consisting of the heads of all the intelligence services. It also proposed that the new oreanisatien should have a collective rather than an individual responsibility because one of the important parte of the Donovan paper was that the head of the organiza- tion should have the individual responsibility for the presentation of National intelligence to the President. The Joint Strategic Survey Committee paper was in January 1945, and on rebruary 9th, the Chicago Tribune and the Washington Times Herald came out with almost an exact report on the context of the paper. The result of this was that there was a considerable furore in Washingtcn and in Congress there were several Congressional statements to the effect that what had been proposed by General Donovan and by others in the Government was the creation of a peace-time "Gestapo". At any rate the creating plus the war at this point was rapidly coming to a conclusion that was such that no further activity was taken in this regard until after the end of the war. I'm sure we all remember the haste with whioh the United States commenced demobilization and the elimination of its wartime agencies. On September 20th, 1945, the Office of Strategic Services was of- ficially disbaneed. Its Espionage and Gounterespionage or SI Branch together with its Covert Operations Branch or SO ware transferred into a unit called the Strategic Services Unit whioh is placed under the -5- Approved For Release 2002/0114MIA-RDP78-03527A000400170044-6 SECRET Approved For-Release 2002/01/07 : CIA-RDP78-035277400400170044-6 Assistant !ecrotary of War. The Secretary of War made a poll of the various military commands as to whether this unit should be preserved or not. The Navy reported from the Pacific that they had had very little experience with OSS and couldn't comment. Cep. MacArthur commented that the OSS had never appeared in his theater, and therefore his viewe were to the contrary in maintaining it. The CBT theater reported that they bad recieved very many majcr assets from OES as did the European theater and both of those recommended its needednees. At any rate, the decision was made that the SSU, the Strategic Ser- ice unit would be maintained on a stand-by basis pending further devel- opments. A second major portion of the OSS, the Research and Analysis Branch, together with the Presentation Unit were transferred intact to the Department of State and ':,ere they were maintained. The old R Be A today is the basis of what is the Office of Intel) igence Research in State At this point the Secretaries of State, Ar and Navy got together on November 14th, 1945, and established an Intereeeartmental Subcommittee to determine what should be done in regard to a permanent Central Intelli- gence Organization. This subcommittee had, as well ae the Denman, paper of 1944, a paper produced by Ferdinand Eberstadt dated October 22nd, 1945 which proposed among other things the unification of the Army and the Navy, a National Security Council, a National Intelligence Authority, and a Central intelligence Organization. It was just about at this juncture that President Menem started to get impatient and in January of 1946 he called in Admiral Souers, Admiral Lahey and urged on them to come up immediately with an "agreed paper" for the creation of a Central Intelligence Organization. The result of this was the Executive Order of January 22nd, 1946, which created the Central Intelligence Group and President Truman named, at the head of this, Admiral Souers as a temporary head until the Army an Navy and State' Department could agree on a permanent head. The Central intelligence Group was to consist of representatives of the Army and the Navy as well as civilians: it had the power to propose plans for co-ordinations it had the authority to ana3yze and process intelligences and, it was established under a Nation:a:1 intelligence Auth- ority similar to the ones proposed before, coeposed of State, Navy and War, and Chiefs of Staff to the President. Shortly after this proposal the President sent this executive order to Congress and urged that together with the Eberstadt report on unifica- tion they use this as a basis for legislaticn, permanently establishing a Central intelligence Organization. This Organization finally was created exactly a year and a half after the creation of the Central intell- igence Group when on July 25th, 1947, a National Security Act of 1947 was passed setting up the Central intelligence Agency. -6- SECRET Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 OTATSPEC FrenET Approved For_Release 2002/01/07 : dIA-RDP78-0352ZA000400170044-6 Now, In the mean time, in this year and a hslf, there had been an accretion of functions to the Central Intelligence Group--some of these taken from War agencies which were being disbanded, and some functions passed from line agencies who were, at the time, faced with so some major budget cuts. These eccretions ate interesting because they OOMDOSO a certain basis fer the present Organization of CIA. For example, the Strategic Services Unit which had been maintained under the Army was passed over to CIG, and was the brisic nucleus of the present organization which conducts espionage and counterespionage. The Washington Document Center which had been maintained by the Navy throughout the war, was passed over and, together with the German Military Txcument Center from Fort Holibird or the Army, became the for the Forel 7 Documents(f the present organization. So the missions of the Central Intelligence Agency when it was created were fairly well generally delineated by certain National /ntell igence Authority Directives and by the National Security Act of 1947. There re two important aspects of this Act which are worthy of note. First, thc, Act stresses co-ordination responsibility, and in so doing it names the Director of Central Intelligence, and the Deputy Director of Central Intelligence. (You'll note that the word 'Agency' is left off t'ese titles so both Mr. Dulles and Gen. Cabell have a dual responsibility as Director of Central Intelligence and 'Deputy Director of Central Intelligence, at the eame time as the administrative beads of the Agency' The Act also specified that the departmental reeponsi bilities for intelligence would net be affeoteds it was very specific that the new Agency should have no police or eubeeona powers, and then it put In the usual blanket clause that it should perform certain ser- vices of common concern. New this Act together with the National 5ecurity Council Directly and the National Security Council Iletpl;tgeepe Directives, delineates the responsibilities and the missions of the CIA. The distinction be tween NSC Directives and NSCIDis is thins National Security Council .7. Approved For Release 2002/METCIA-RDP78-03527A000400170044-6 25X1A Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 Next 1 Page(s) In Document Exempt Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 vpintir Approved For-Release 2002/01/07 : CIA-RDP78-03524A000400170044-6 You will note that today basically, the organization is grouped under three principal deputies with the Fourth Deputy, responsible for co-ordination activities. Starting at the top on the right of the Director is the 3peoial Assistant for Planning, this mdi- vidua]. is responsible for long-range planning, that is co-ordinating the lou!,-range planning of the various parts of the Agency, and for handlint; such special cross-Agency projects as might be assigned him by the Director. On the left is myself, the Inspector General, whose functions are very much like those of the IG's and the Military periodic inspections of all components* trouble shooting, and acting as an appeal board for individual complaints --he Eaocutive Officer is the usual role. Now, the three deputies organization strting at the right,the Deptvt Director of Plans 25X1 25X1 And then, of course, there is a small Inspection and Review Staff, and a Plans and Co-ordination Staff out of the immediate Office of the Deputy Director, now the Deputy Director for Intelligence. # Central organization is grouped all over the intelligence* analysis and production of the Agency. Under this, reading from your left to right is the Office of Basic Intelligence which puts out the encyclopedias of the Intelligence Community. If you recall, at the start of World War II when we wanted to know military operations there was tremendous scrambling to find the basic bog- formation we needed about countries, beach data* industrial production, railroad systems, and so on. This office, working largely with other agencies ankacting primarily as a co-ordinating mechanism is now pro- ducing the National Intelligence Surveys, a program which will ultimately have basic encyclopedias on every area of the world. The second office listed, the Office of Current Intelligence is the current intelligence office of the Organization charged with produoing the National Current Intelligence, daily and weekly, and charged with back- stopping the Director in his capacity as Intelligence Advisor to the National Security Council. The third office, the Office of Central Reference, is our files and library system, and as such servicee the entire Intelligence Community. Approved For Release 2002/UOREVIA-RDP78-03527A000400170044-6 25X1A SEMI Approved For*Release 2002/01/07 : CIA-RDP78-0352fA000400170044-6 The Central Office, the Office of National Estimates, could probably be appropriately called the pinnacle of the Intelligence Organizatian structurally "la as much as this small office consists cf the Board of National Estimates and their staff, and t'-ic is the office where the fin- al National estimates are written in close collaboration with all of the other intelligence agencies and submitted in draft form to the Director and the IAC who sit down and agree on the final National estimate to be submitted to the policy maker of the Government. The Office of Operations I've already described and its and Organisations have not changed in the last ten years. The Office of Research and Reports is the basic research the Seviet and Sntellite Economy and on certain major industr as well as carrying a very large burden of the responsibility graphic intelligence. And the Office of Scientific Intelligence once again is self descriptive with the responsibility here for research In the basic seiences which is then picked up with each .of the military services, picking It up, at the technological stade where it moves into production. On the left, is the Deputy Director for Support effice. Now, this is the organisati,n which supports the entire Agency from an admin- istrative and logistical point of view. 1115 you'll note, the ADS has the General Council's Office reporting directly to him as well as the Special Su,:vorts Assistant. Now the Special Supports Assistant deserves a sPsolsl mention in as much as that is the individual who ties in and makes sure that our whole clandestine structure is being properly supported by the DDC organization. Mere are four staffs under the Deputy Director for Support* an Audit Staff charged withtthe audit of all our accounts and I'll mention it a little more ful when T mention the Ccm troller* a ucts 1 s ca c rge e respon- a y sep ug t e genoy ealthy; and 4 Mhnagemen to. t erned with seeing that we have an efficient organization, proper management pro- cedures and are operating economically esti efficiently. The DDO has six line offices under him. The Office of Communications is fain l self-descri tive but I should mention here that our Off c- of Approved For Release 2002/0i IA-RDP78-03527A000400170044-6 25X1 25X1 SECIFT Approved For-Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 25X1 Now our Comptrollers Office, as well as having he responsibility of prepari-y the Agency budget each year and defending it or at least serving as the backstop for the Director in defending it before the Congressional hearings, also is responsible for accounting for every dollar that the Agency spends. There has been a fallaoions serth which has travelled *round that the CIA can spend money without accounting for it! That is incorrect,' We try to keep as large a prol.:rtion of our fUnde es we possibly can without jeopardising security on * vouehered basis in which instance the General Accounting Office will audit the ao- counts. On the balance of these accounts our own Auditor inspects the receipts whioh the Comptroller passes over. The Logistics Office is self-descriptive. It should be mentioned that hers, as well as in all of our transportation facilities, we *leo have a large accumulation of equipment and arms which must be maintained for emergency use. Pereonnel Office, which is also charged with the adanis our Career Service System.- * Security Office?now there is an assumption that this is strictly a physical security officet that is not correct. When we were originally organised the Federal Bureau of Investigation commeneed the investiga- tory clearance of our employees, then they dn.-Opp:0d it because they over-worked and needed to get rid of it. They took it up again briefly and then they asked us if we would establish our own organisation perman- ently for investigating and clearing our own employees. This is a re- current and constant procedure, incidentally. We tem the system so that automatically when a person is transferred or promoted his security file Is reviewed; and we have, working together with our counter/ate= gence system, a counterintelligence system iraide tie organisation to maintain as secure as is humanly possible. And, finally the Office of Training charged with the training across the board not only on the research side but on the clandestine side* because we are of the firm conviction that trained personnel are the key to good intelligence operations. That is a very brief descrip- tion of the structure of the Agency. Thank you very (Applause) (Iknow you carildn't see the ohart and during this fifteen minutes (Captain Shaded coffee break, you are welcome to come up and look at the chart. Captain, will you get them back reasonably close to fifteen minutes, please.)--.-----------Coffee Breaks SECRET Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 WPFT Approved For ftelease 2002/01/07 : CiA4RDP78-03527A000400170044-6 Adndral Lo ey Gentlemen: rt'* a pleasure to participate in this program and withoutmore ado l',11 take on where Mr. Kirkpatrick left off. He was talking to you about the structure of CIA: from here on out I'm going to talk about C/A only in so far as it lean articulate part of what we call an intell- igence community. Frankly, that's the only way you can understand CIA because, by itself, it really doesn't make much of any sense. In dollars and in head count it equals only about one eighth of the total investment of the United States in the Intelligence business. An organizational chart of CIA by itself is not very well balanced; that is beceuse it engages In services of common concern, acme of which it does all by itself and other things where it may have only one liaison man assuring himself that the community effort done by somebody else is ade- quate. In other words CIA's work either contributes to the work of the other departments in producing finished intelligence or that part of CIA in which I work, pulls together the work of each of the other departments in order to present the work of all to the MSC and the President. The organisation (if we could have the first slide,) of this community is illustrated on this chart shortly to come before us. A little less light, if we could have it in the room is not a:scrt ef egocentric idea of putting intelligence to the center of the whole washington machinery, so much as to illustrate the subordination cf intelligence to the planning structure. Mow I assume you have had plenty oi' instruetional Literature about the MSC. The president of MSC, shown es a unit on that chart, is at the topt the Intelligence component or feed Into that being the himself, who site not be statute but by directive as an advisor as apposed to a member of the qouncil. That is r lipry luportant proviso because it protects him from having to participate in decisions of policy in what we do about a certain situation and, therefore, his views as to what the situation is or what the eituatioe portends, will never be suspect because somebody thinks he is an advocate for a particular course of action or line of conduct to deal with it. It is also very interesting and unique, as far as r can make out, in governments anywhere in the history of the world to find the head of the intelligence service actually sitting at the final center coert round of governmental decisions. Everywhere else you will find intelligence represented through a departmental cabinet head or chief of staff committee or something else like that. oopied or are about to be copied some other places in this, but th cp e w o wro ity Act wrought very well in seeing intelligence un- d by policy advocacy hes crack at the very top. the rirector, as he speaks there, speaks from not only his authority but from the authority of the Intelligence Advisory Committee, that being composed of the heads of the intelligence services Were the -13- SECRET Approved For Release 2002/01/07: CIA-RDP78-03527A000400170044-6 SECRET Approved FoMelease 2002/01/07 : CIA-RDP78-03527A000400170044-6 kssistant Chief of Staff for the Ar for Intelligence; the same name understand now applied in the Air rorce but was shortly to become obsolete; Director of lag Intelligence; Deputy Director of Joint Staff for Intell- igence; Mr. Hugh Cummings, Special Assistant to the Secretary of State for Intelligence; and the Director. That Is friar military and two civilian as full time members. Actually regularly participating in full is a represent- ative of the AEC and a representative of the Director of the Federal Bureau of Investii!ation. But they talk or participate only on those matters that fall within the cfnfidence of this agency. Under this IC membership there are found committees representing the same groups in each of the functions that Mr. Kirkpatrick ticked off of our intelligence production* In current intenigewe the spot work there is the Watoh Committee; in scientific intelligence there ie_the Scientific Committee, a special one on Guided Missiles, a special one on Atomic Energy; ORR, the Soviet research on economics is baokstopped or supported (/111 talk about it in little more detail) by an Economic Committee; and the HIS Committee for basic intent. genes. That is, each of the medium command responsible offices of CIA, in a sense wear the same kind of double hat tRat the Director does--one, a line lob to run their part of the show, two, a co-ordincating job to see that that sphere or function of intelligence falls within their juri&flction is efficiently and effectively conducted on a community.wide basis as well as within their awn shops. This community is designed to function its struc- tural setup to perform two malor missions.-one is to manage itself and the other is to produce substantive National intelligence. Mr. Kirkpatrick talked about the National Security Council Into i. gence Directives and they are the forms that this management takes. The DCI has no command responsibility obviously over a major general of the Army or the Air Force, or assistant secretary or level person in the State Department. That would gum everything upl The President is the only one who can command. The NM is nothing but a group of the President's prine cipal advisors surrounding him when he slun act, but the Ike and the Dir- ector can recommend. Now in fact, with the exception of one case so far, all NSCID's have gone lip with the unanimous approval of the IAC and have, to all intents and purposes, been rubber-stamped by the NSC thus the IkC might be said to be a self-governing body, which is very nice. The two ones where there was a little difficulty were negotiated with some ease, whether / can make the same kind of statement a year from now after the current attempt to revise all NSCID's has run its course, I don't know. But the fact remains that the Intelligence Cifimunity has taken its own responsibility and done itsmewn work that way, rather than going crying to the *umpire in the White House at an MSC meeting. However, any gain like that has been com- pensated for by a certain rather heavy course. re is a feeling, partioultjly after reorganisation Plana 6 and 7 in the Department of Def se that this is a rather uncontrolled dy, particularly as the senior people on it from Defense are mere star generals and admirals certain people that we call the "palace Approved For Release 2001T : CIA-RDP78-03527A000400170044-6 SECRET Approved For,Release 2002/01/07 : CIA-RDP78-0352M000400170044-6 guara" of the Office of Secretary of Defense have taken a dim view of the IAC as managing itself and think that there cut to be a different scheme wi01 the Departmental Chiefp rather than the Service Intelligence Chiefs Playing a greater role. And secondly, in an effort to produce this unani- mous front before our elders and betteSs at the NSC level we have taken an unconscionable period of time to resolve certain principles. It tea ever twelve months to sort out the assignment of Economic intelligence between State, Military, and C/A, and some fifteen months of haggling to get a Guided MissileIntelligence Sub-committee. I sometimes wonder if we can justify that degree of lethargy in order to get this, but anyway we are aware of it and are working on it on a community basis. Now, turning to substance, theNSC's basic policy paper charges the Intelligence Community, through the Director, with producing an intelli- gence organization capable of gathering the necessary data and analysing it so as to deal with three primary problems. One with indications of hostile intentions giving maximum prior warning against aggressional sub- version, against ourselves, our &lies, or anywhere in the world--the Watch function (which talk about specifically in a, second). The second is the capabilities- of foreign countries to effect our interests, neutral as well as enemy, an., political and economic as well as military. And, finally, a nice neat catch-all just se they won't have any leisure time forcasting potential foreign developments any of them having a bear- ing on U.S. national security. Now, first with respect to the advanced warning function that was cenducted by the Watch Committee of the TAO, backstopped as far as we're concerned by our Office- of Current Intelligence and by similar subdivisions of the Intelligence Agency, the progress In that in the last three or four Tars has been very notable. We have now in constant operation one hundred sixty-eight hours a week a National Indication Center, jointly manned with full access, as far as we can bring it about to all the relevant data on the most expedi- tious means. We have to be careftl in running a Watch Committee- like thie (General Cabell who chairs it pays rticular heed to th Approved For Release 2002/04MMA-RDP78-03527A000400170044-6 SECRET Approved For Release 2002/01/07 : CIA-RDP78-03527*000400170044-6 Liez?a Watch one. The second problem is to be sure that we tie in as well as nossible with our overseas Watch Committees and our friendly allied cnes. A great deal of effort has gone into mal,ing sure that our communications 25X1 Finally, in order to make sure that a scheme like this works you have to harp back to the essential failure of Pearl Harbor, and there, I think, the best unclassified piece I know on it and really the mcst read- able Once is Admiral Theopole's otherwise rather unimpressive book, but his narrative of the sequence of events of intelligence reporting and how each piece was handled is startlingly horrible from this point of view only, as far as from many otherss Had any reasonable captain of infantry, flp.boy, or deck duty officer on a PC had all those pieces of paper on a bridge table in front of him on November 30, he not only could not have failed to predict an attack by the Japanese, but could not have failed to predict that it would come at the Hawaiian Islands and not in Singapore otherwise as its main thrust: Sc we have tried to be conscious of the fact that you're no good unless you've got all the pieces on the table in front of you. And back in 1954 we got through an NSC Directive 543a, which charges, by Presidential Order, all departments and agencies of the Government, not just Intelligence agencies to make fully available to the IAC Watch Committee, gll information and intelligence of reasonable creditability pertinent to its mission and functions, without ITst11,9tA,pri because of source, policy, or operational sensitivity. No one has a right any longer to say, This is classified too high for the Watch Committegan And sec- ondly, on the other side of the fence, to be sure that we will be prepared for what would be a reaction to some U.S. action they are all charged to keep the IAC Watch Committee informed concerning significant diplomatic, political, military, or other courses of action by the U.S. approved for immediate implementation which might bring about military reaction, or hostile actien by the USSR or its allies. Thus we believe we have now a machine.'rating round the clock, manned by competent specialists with access to all the relevant dope, There can be more Pearl Harbors and there cell he &wful ones, but it won't be because somebody hasn't done the advanced work of setting up a system and keeping it constantly in operation. There will be human failures only, but anybody who has better ideas ti as that we can prove this, we are certainly desirous of hearing from V-7.em because we realise that this is a responsibility that transcends all others In It life-or-death significance. Approved For Release 2002/4 ifIA-RDP78-03527A000400170044-6 SECRET Approved For-Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 Now, the next kind of intelligence, (I'll stop just a minute or two to talk about by illustrating an intermediate group) economic intelligence on the Soviet Union. How are we organised in the 8oviet Bloc to do that and, if r could have a quick look at slide two which will horr44y you, slide two (this business which T know nobody can read) is a blow-up of that little EIC business. Here's the EIC with the Secretariat represent. ing not only the IAC agencies, but here we draw in everybody else in the Goverement-eAgriculture, Communication Commiseion, Federal Reserve Bank, and etc. that may have, and under it ? series of functional sub-committees on the Chemical Industry, the Armaments Industry, the Electrical Power Industry, Ship betiding industry, etc. Now take that off, because I don't want anybody pouring around in this kle! of wiring diagram for its own purpose, but what / want to Illustrate is that machinery called for the addition to the Federal payroll of a total of exactly four peoples Two professional and two secretaries who are the Secretariat. Everybody en- gaged in this machine was already on somebody's payroll. The object of the exercise was only to bring them together to see that all the expertees in a given field were focused on a specific problem, whether it be the y of the somewhere ? ng e pot s o settle these V:ings in a forum that is made up of the experts, rather than get a lot of departmental positions sell it on a basis of phony or conflicting intelligence and then have a lot of people who are so senior that they can't possible know any of the details of the problem bagele it out in a "mishmash" of policy and intell- !nonce. Now, finally, to get to the heart of the matter which is the pro- duction of National Intelligence. Now National Intelligence has been defined many times and it's really quite simple because it's defined by its need; we call it that correlated and evaluated information which the highest policy makers of a nation require for their deliberations and decisions. Obviously it overlaps and comprehends a lot of what is also required by the Chief of Naval Operations, or the Secretary of this or that department to run his own department, so they are not exclusive. The statute makes the Director personally responsible for producine Nation- al Intelligence and he could, in fact Mr. Kirkpatrick said, for a while his predecessor; came perilously close te producing it himself or with his own CIA organization. The only trouble with that was, that naturally every- body else sitting around the NSC said, "Well, t at may be what you boys think. It isn't what my boys think." And you hadn't done very much about making an omelet out of the eggs. On the other hand you could require that everything be settled by a pure committee approach, that would he the opposite pull of solution, but the trouble with that is that if you take people who have many motivarious administrative duties and other items and force them to word-chop from scratch, you would get either an inferior product or at minimum you fail to get an integrated product. It would be the military section would be left to the military, end political to the state Department people, and the economic to the arpropriate, and the appropriate to CIA, but there would be no internal cohesion. -17.0 Approved For Release 2002ge1teT: CIA-RDP78-03527A000400170044-6 SECRET Approved ForRelease 2002/01/07 : CIA-RDP78-035277400400170044-6 So hat we have devised is a system under our Board of National Estimates, which we think partakes cf the best or both, in that we have a group impanelled called the Board of National Es.telmates, get the highest salaries that the Civil Service Commission allows, ane have no administra- tive responsibility, no legislative ax to grind; they!te not for or against a balanced budget, for or against any given organisation of the Services, or any particular political policy in the Middle East. They are a jury of elder statesmen, not elder necessarilY in years, but have been selected primarily because cf their dispaesionate judgment, proved and demonstrated in previous walks of life not necessarily intelligence. For example, the head of it, a famous historian, Sherman Mint who did known work in OSS, Research and Analysis during the war and wrote the book--one cf the eost read books on intelligence generally. His vice- chairman, one of Admiral rcolridge's predecessors(le your Commandant; General Bowls; the other naval admiral, Admiral Sherman who Is Director of Naval Intelligence; and we are about to gat an Air Force general, meanwhile General Cabell having taken care of the interests of the Air Force when the other two Services tended to gang up on them in the intelligence business; and a couple of historians; a businessman, an ex-general counsel of the Mutual Security Aolminintratien which is eow ICA; and one appointed Assistant of Secretary of State Linden. The beauty of this board, as I say.,4s its freedom to concentrate on thinking out specific intelligence issue without fear of any pressure being put on it to find one way or an- other, or selling a departmental position down the eiver. At the same time with no problem of administering vast numbers of personnel, attaehb assistants, and ether things that a G-2 or Director er Intelligence has to do, Very briefly, to tick off the sequence of events, how this machine operates, the demand for an estimate normally comes out of either the situation itself such as, the trouble in Syria is plain to everyone who reads the newspaper; or out of the machinery of planning at the NSC offices, where the Planning Board and the NSC staff says "It's abeut time isn't it that we had a look at cur ve would like to bring a revision of it before the NSC in Sovemter. wju. you have a National estimate for the Planning Board of the NSC three weeks before that?" About half of them are thus deliberately scheduled; the ether half are de- veloped to meet situations on the spur of the moment. More nnd more they specifically are requested to deal with options open to America, 'What will be the result if we join the Baghdad Pact Military Committee but don't formally adhere? If we join the Baghdad Pact? If we don't join it at all?" Instead of writing an essay about the Middle Fast it is thus a very pro- poeive document and is of a maximum utility, we hope, to the policy makers either in the departments most closely concerned or in the NSC grouping as a whole. Once you've decided to do an estimate the next thing to get very straight is what we call the terms of reference or the outline. Be sure that we have put down all the questions which, if they could be answered, the policy maker would like ti have answered. Maybe you're not going to .18- SECRET Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 SECRET Approved Fe*Release 2002/01/07 : CIA-RDP78-03524M000400170044-6 be able to answer them; they're very unknown or unknowables, but at least let's be sure we've had a crack at them and toss them around. That is, checked cut with the consumer, the policy user as oell as with the intelli- gence spe6lalist. Then you whack that up according to best Communist tradition from ?soh according to his abilities and you assign the job of producing a contribution to each ef the appropriate agencies and departmental groups, net of writing a draft of that section but of writing a study which norm- ally will be in the order cf five to fifteen times as long as that portion of the ultimate national estimate wi:1 be. Those then come in on a sched- uled deadlinedf the time is awfully short they may actually come in in one day in a form of an oral presentation or some rough notes. And at that point the Board and its staff set things down together and,after reviewing these contributions, produce the first draft. It is normally within the four corners of the.eentributions, but w do not regard ourselves as bound. If t e Air Faroe and Navy, for example, agree that the Soviet Union bomber force in 1960 will be such and such probably they will prevail, but we feel free to argue with them on the basis of the evidence which we've seen and so is the State Department re- presentative or others as the case may be. In other wcrds, there are no preserves in which anyone's particular word is law. Once that draft is whipped into shape it is then eat on by the Board stimatea as a whole by itself. This is where you get this isolation reality, some people might say, at least from what we think mislead- ng pressures tat would exist under other circumstances, and they "murder board" it, as many of you would my, improve it as best as they can, and then kick it back out to all of the DX member agencies who have as much time as one can give them to review it, and then send their chief estim- ator for that topic, normally of a colonel/captain level or one under, to meet with a panel of the Peard and rehash it again from a community ver- sion. At the end of that it goes to the IAC and, let me assure you there, that the members of !AC do not by any means (I have never seen them) rubber.- stamp a document. Sometimes a document will go through with very few changes, but they regard themselves not just as head of their agencies in sitting there, but as a eersonally impanelled group by the President of the NBC of six or eight people, as the ease may be, whose personal judg- ment militantly backed by their departmental expertees is being collectively sought and they wrestle with them and frequently will run meetings very long and very arduously until they get the best possible view. Now, the problem in any such collective effort iehow much do you strive for unanimity?" And we've worked carefully and wrestled with our souls on this for a long time, being very careful to err, if anything, on the side of being sure we set forth clearly and don't vary actual differ- ences of opinion. The worst thing in the world would be to get agreed on what we call "tent language" sufficiently big so everybody would come in under it, but still so placid and meaningless that it doesn't convey any- thing to the reader cr user. At the same time the other extreme would be SECRET Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 SECRET Approved For-Release 2002/01/07 : CIA-RDP78-03521.A000400170044-6 uruiezirable whereby you descended on every captious little matter or phraseology because then you wouldn't telegraph to your ultimate readers, maybe the President, Secretary of State, Secretary of Defense, those in- portant issues on which the community in in fact split; because it's impertant not only that they realise there's a split but they realise that there is something important that they should take into account in making their policy decision. And normally, if the community is reasonably split it leaves to the oolicy maker freedom either to cop for the majority's views or the minority's, or preferably, if he's a good polio-, maker to say, *Well if a reasonable element of the Intelligence Community, for ex ample, thinks that if we go int the Tongking Delta the Chineee Commune lets will move militarily as they did in Koreas therefor whatever we do about the fall of Dien bien Phu had better bo done consistent with an enemy capability to mix it with us in actual hostilities.* When these papers are done they normally constitute and put out for he 10 either the intelligence annex to an NSC paper or stand on their own bottom as useful background for some policy committee. Ny function in sitting on the Planning Board as the little side-kick, so to speak, of the Director sitting on the NSC itself is to be sure that any state- ments of fact, recitals, or others in an MSC paper are not inconsistent with the National Intelligence view of it. Five, four, three years aro had an awful lot of trouble particularly with the top elements cf the Office of Secretary of Defense who had no intelligence offices of its own but had anoawfel lot of views on things. That has now gradually circulated right on up to the top and any agency on the Planning Board that participates directly or through a subordinate department In theointelligence planning Is normally a faithful backer of the intelligence line. But there are the Bureau of the Budget,OK, this, that and the other bogs, maw of which are representated here not in majority, r trust, who occasionally say, "Well, that may be what you think about Soviets having an ineflight rationing capability, but, by God, i don't believe itI And I just reties to see it in a policy planning paper." So the job is not complete sinecure in fighting with them. As far as work on these papers is co corned we're not through when they're done, we constantly do two things with theme one is we conduct a post-mortem of the last paper in process of doing any succeeding paper on aoy country, area, or problem. What did we predict about Algeria eleven monthe ago? How has the situation drifted? Has it drifted faster than ye said, better than we said, or worse than we said? Seccndly, we have a group that meets up at Princeton of guys of calibre of George Cannon and Ate Lincoln and Max Milicon, and Others w o will not work fell time for the Government now, at least like in Abe Lincoln's case stays at the faculty not because of hioself but because of another Arkansas character. But we use them generally as a body of elder statesmen to re- view our work from their wisdom with full access, they're cleared for everything so they can read any background material they want on it and we use them to go over cur problems with us and give us the frankest pos- sible critique which we then pass out to the community. -20- Approved For Release 2002/01360031A-RDP78-03527A000400170044-6 SECRET Approved Fop-Release 2002/01/07 : CIA-RDP78-0352474000400170044-6 I would like to say a word before close cc some prcblems about the Director's actual function at the NSC itself, in addition to speaking for, or promoting and defending the National Intelligence Estimative point of view on a given policy debate* He has a much more far reaching and difficult mission and that is to speak virtually from the hip on Intelligence matters from an intelligence point of view on any matter that is coming before the 0ouncil andoeven more than that, on anything that has happened anywhere in the world during the preceeding week or in two weeks, if the Council hasn't met a week before, as in the form of an intelligence briefing. Now that briefing is prepared in our shcp, but with the closest and most intense effort to make it represent the best expert feeling around the community without tying people down to an actual co-ordinating piece of paper. But, if we're talking about the Soviet 10 announcement, you can be perfectly sure that we don't just it CIA's words into the Direc- tor's mouth, or he himeelf wants to know the best thinking of the Army, and the Navy, and the Air Force, and AEC on such a matter. That is, to my mind, one of the things I like best about President Eisenhower that when he first took over and was revising the NSC machinery and method of operation, he told Bobby Cutler that he wanted every meeting to start with a fifteen munute intelligence briefing. Sometimes they don't start with them but it has been a rare, rare exception when the Director hasn't gotten a chance to have a captive audience, you might say, of the Secre- taries of Treasury, Defense and ro on, knowing how busy particularly are those people who are not concerned directly with the day-.to-day manage- ment of the National Security affair such as the State and Defense, thinking more of the ODM, Bureau of the Budget, Vice-President, and eta., etc. have very little chance to read and absorb themselves from intelli- gence publications, even though obviously availabl: to them. This chance to be held to line and forced to think about the externals of the world situation for fifteen munutes is very constructive and the Intelligence Community can, I think, be rightly proud of him.terrific burden as it is on the Director. Now, I know somebody would like to ask, "Now good have these esti.. mates been?" There's no statistical wow, / think, of giving an honest answer, of course. Since we've had this system there been no major outbreak of hostilities. The Israeli attack on Egypt not being major in my mind in that sense and therefor the great question of "Are the Rus- sians up to trouble now or in the future?" we haven't really been tested on. I think we have been pretty good on most capability pictures despite Allsop 's and other characters's we certainly have not compromieed down our estimates on their projected abilities. We have been up to a year or two behine on particular showi s of a particular weapons, but, as far as their over-all capab:lity is cccerned, I think it's fair to state that our scatter-gram is all around tie line of truth asi hindsight shows it SECRET Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 LAN Approved For Release 2002/01/07 : CIA-R0P78-03527A00040017004476 out. I think where we have been Inadequate is in rorseeing really great soft flexible changes of peee. Nobody, I think, really saw in ad- vance (and certainly no estimate I have seen) how completely Chou-en Lai adopted the soft love-and-kisses line at Undone and went out to woo rather than terrify the people of Asia. No one saw early enough that the Soviet would use its vast stockpile of obsolescent arms ane its ex gess capacity in certain types of production, machine tools, and earth moving equipment to make as big a splash on the underdeveloped areas' economic front as they did. It has been in those things we have been weak rather than on others. Now, rd like to tick off for you, finally in closing, the problems that I think in this area are only parti lrdd. and-remairvwith us, and I hope that MO 41:jr0 us in thinking about the papers you will write this year and the general thinking you were acing at the War Col lege, will bear these i mind, and thst out of your work may come 80'0 hel to us on the line. The first is this question of full disolonure within the U.S. Government; I read you the C Directive about the Watch Committee:, but let me tell you that still it isn't anywhere near as good as it should be. There still is too much of a tendency to chest the cards and say, 'Oh, this is so sensitive, thia is 'Ayes Only', the Secretary of Chief of Staff? and what you're doing then le depriving the desk an the key area expert, who really knows the politics in a given country or some- thing like that of the most valuable intelligence cr information that he oould have to keep abreast of the situation, which is improving but it isn't good enough yet. Secondly, is genuine co..ordination and articulation. We still do too much of what each other does also--there Is pervasive feeling that each chief is entitled to a full rounded intelligence organization and that his intelligence chief doesn't rely on the product of a rival in- telli ence or anization to service his chief, and therefore, we in C/A we re wor ng on ecause sooner or er ngress and its econecy-mindedness is going to straighten it out with a neat ex, and then the United States could get badly hurt! are worried about a problem of interchange with our all SECRET Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 25X6 Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6 Next 1 Page(s) In Document Exempt Approved For Release 2002/01/07 : CIA-RDP78-03527A000400170044-6