COMPILATION BY THE IAC OF A SPECIAL BUDGET ANALYSIS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R000800050006-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 14, 2016
• Document Release Date: June 5, 2003
• Sequence Number: 6
• Publication Date: September 14, 1954
• Content Type: MF

Approved For Release 2003/06/13 : CIA-RDP80R01731 R000800050006-7
CENTRAL INTELLIGENCE AGENCY
WAQW1 Nl:rf%K1 OR I1 r
k 14eI r. K 5-1110:3 G
5-9763a)
14 September 1954
MEMORANDUM FOR:
DEPUTY DIRECTOR/INTELLIGENCE
SUBJECT:
Compilation by the IAC of a Special
Budget Analysis
REFERENCES:
a.
Letter to DCI from Director, Bureau
of the Budget, dated 3 Sept 54
b.
(ER 5-9763)
Copy of letter to Director, Bureau
of the Budget, from DCI, dtd
13 Sept 54 (ER 5--9763a)
1. Please note the attached letter from Mr. Hughes
dated 3 September respecting the compilation by the IAC
of a special budget analysis summarizing by Member Agency
the e56 budget estimates for overt intelligence collection
activities which are the direct responsibility of the
Members of the IAC, and the Uirectorts reply thereto.
2, The Director has asked that this matter he
discussed in Executive Session at an early IAC Meeting,
and that you speak to General Cabell to determine whether
all Members should be present at this Session,
25X1
F.xe tive Assistant
to the Director
Attachments:
References a. & b.
MA 4-<
s3 I7-1-98 A- __ iVIF. W K.- ~ 25X1
Approved For Release 2003/06/13 : CIA-RDP80R01731 R000800050006-7
 Approved For Release 2003/06/13 : CIA-RDP80R01731 R000800050006-7
ER 5-9763a
13 SEP 1954
fir. Rowland Hughes, Director
Bureau of the Budget
Executive Office of the President
Washington 25, D. C.
Dear Mr. Hughes:
I appreciate your letter of 3 September
regarding bringing certain Intelligence budget
matters before the IAG.
Your proposal will be presented at an
early meeting of the IAC,, and after this meet-
Ing. I will be in further touch with you.
Sincerely,
Allen W. Dulles
Director
I Iii (10 September 1954)
t r- ut oad
Orig - Addressee
1 - DCI
1 - Reading
1 - ER ar/ey,i a,u e.
1 - VXL Chrono
1 - DD/I w/bask/,t- ?4--,,A uc,_ c~uo CEO '-o-?
Approved For Release 2003/06/13 : CIA-RDP80R01731 R000800050006-7
 '7C
Approved For Release 2003/06/13: CIA-RDP80R01731 R00800050006-7
EXECUTIVE OFFICE OF THE PRESIDENT
SEP- 2
My dear Mr. Dulles:
The recent brief review of the "intelligence community" by
Budget Bureau staff, together with the fiscal compilation, has pro-
vided me with a helpful background of the scope and content of our
entire foreign intelligence effort. It has been similarly useful to
Mr. Cutler and Mr. Lay.
This study, of course, was addressed to fiscal year 1954, and
did not attempt to identify the future budget requirements of intelli-
gence activities. While our survey will give us more perspective for
reviewing certain 1956 budget submissions, it also has pointed up the
need for a broader approach to intelligence programs than provided by
the regular budget "call", (Budget Bureau Circular A-11, revised
August 9, 195). Specifically, I have in mind that the Intelligence
Advisory Committee might compile a special budget analysis summarizing
by member agency the 1956 budget estimates for those overt intelligence
collection activities which are the direct responsibilities of the
officers comprising the Committee. As illustrated by the attached
form, the activities to be reported would be those identified as "overt
collection" in the recent study. Estimates of budget requests probably
will be required in some programs (e.g. military attaches) where parts
of the costs are not under the purview of the IAC member, and/or when
the 1956 budget requests are not yet firm.
I am addressing this request to the Committee, through you as its
chairman, rather than to the heads of the executive departments and
agencies concerned, because of the obvious need for a joint review and
evaluation of those proposed activities. The most significant part of
the analysis should be a simple exposition by the membership on: (1) the
interagency arrangements, supplemental to the NSC Intelligence Directives,
which will be used to produce an effective and coordinated overt intelli-
gence collection program in 1956; (2) an evaluation of the sufficiency of
the several agencies' requests in the light of that program; and (3) the
areas of activity which may require altered emphasis and/or modified
coordination in the near future.
Approved For Release 2003/06/13 : CIA-RDP80R01731 R000800050006-7
 Approved For RJease 2003/06/13 : CIA-RDP80R01731 R000800050006-7
In determining the request outlined above, we have been impressed
with the continuing problems of intelligence collection, some of which
came to my specific attention during the past year. At one point we
understood that the IAC had undertaken or had considered undertaking
an overall study of overt collection. These considerations, together
with the interest in this and other aspects of intelligence community
cooperation which has been evidenced by the rest of the Executive Office
and the Congress, led us to focus special attention on this problem at
this time.
I wish to make it clear that, while this analysis will be a guide
to us for arriving at 1956 allowances for regular appropriations, it
will not affect existing appropriation structure or the submissions of
your respective agencies to the Congress.
I have not attempted to spell out the exact details of the requested
analysis, but Mr. Macy and the staff of the International Division are
prepared to answer any questions which may be raised by this letter. In
order to be most helpful, the material should reach me by November 1, 1954.
Your cooperation and that of all the IAC members will be greatly
appreciated.
Sincerely yours,
Director
Honorable Allen W. Dulles
Director
Central Intelligence Agency
Washington 25, D. C.
Approved For Release 2003/06/13 : CIA-RDP80R01731 R000800050006-7
 Approved For Release 2003/06/13 : CIA-RDP80R01731 R000800050006-7
1956 Budget Estimates
(In thousands of dollars)
Overt
Collection
Activity
Armor Navy
Man Man
Years Dollars Years Dollars
AF CIA State Total
Man Mari Man Man
Years Dollars Years Dollars Years Dollars Years Dollars
Domestic
' recify)
Foreign
Attaches & Foreign
Service
Other (specify)
TOTAL
Approved For Release 2003/06/13 : CIA-RDP80R01731 R000800050006-7