BUDGETARY ANALYSIS OF INTELLIGENCE PROGRAMS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R003500030007-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 6
• Document Creation Date: December 19, 2016
• Document Release Date: October 24, 2006
• Sequence Number: 7
• Publication Date: December 10, 1953
• Content Type: MISC

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CONIFTDEN TAT,
*"'j IAC-D-77
Budgetary Analysis of Intelligence Programs
1. At its meeting of 17 November 1953, the IAC, after dis
cussing the subject with representatives of the Bureau of the
Budget, 4ppoihted an ad hoc committee of Agency representatives
to develop a classification system, or systems, which would be
useful in the review or survey of intelligence budgets (IAC-M-129).
The representatives have held four meetings, at one of which
Bureau representatives were present, and have agreed on suggested
categories for the survey (attached as the annex to Tab A).
2. At its meeting of 24 November, the IAC charged the ad riot
committee with considering, in addition to a classification system,
the other methods of review suggested by the Bureau, as well as
the Bureau's stated objectives (IAC-M-130). The committee's
agreed comments on these aspects of the subject are included in
the draft memorandum from the DCI to Mr. Macy (Tab A).
3. Mindful of the Bureau's desired timing, the ad hoc com-
mittee suggests that this matter be considered by the IA C at its
meeting on 15 December and recommends that the IAC approve
Tab A and its dispatch to the Bureau of the Budget.
secretary
IAC-D-77
10 December 1153
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INTELLIGENCE ADVISORY COMMITTEE
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CONFIDENTTAT, Vn+;
DRAFT TAB A to
MEMORANDUM FOR: Mr. Robert M. Macy,
Bureau of the Budget
IAC-D.77
SUBJECT: Budgetary Analysis of Intelligence
T
1. The Intelligence Advisory Committee, laving considered
your presentation of 17 November, recognizes/hat, despite the
difficulties involvd ip a of all budgets ?/pertaining to intelli-
gence, this-Ls a ecessarp Deese if the president is to be informeci
of the total cost of intelligence as he views all other aspects of the
national security program of the government.
2. The IAC recognizes also that Congress and others outside
of intelligence have not to date been fully aware of the interdependence
of and effective coordination between the various agencies of the
government participating in the intelligence program. Insofar as
an examination of the present distribution of resources will assist in
the understanding of this interdependence and coordination it would
be helpful.
3. The IAC understands from discussion with Bureau repre-
sentatives that internal security programs are excluded from this
survey and that the survey will not be used in connection with4 gp-
propriations.
4. The review may reveal what might at first appear to be
areas of unprofitable duplication. We foresee the dangers of
pointing up conclusions without the detailed analysis and under-
standing of functions which may be characteristic of the IAG and
its member agencies, who live with the problem from day to day.
5. In order to offset these dangers, we heartily support
the Bureau's view that we should work closely together. Accord-
ingly, the IAC has developed a classification list (attached) which
seems the most significant and meaningful feasible classification
of intelligence activities to assist the analysis proposed by the
Bureau of the Budget.
DRAFT
CONFIDENTIAL
TAB A to
IAC-D-77
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CONFIDENTIAL
data appropriate to the several agreed attached categories. E a .t...
TAB A to
IAC-D-77
6. We recognize that subcategories n~t,e be desirable
as the Bureau of the Budget proceeds to obtain the departmental
;(concerned, the IAC invites the Bureau to call upon it at any time
that it believes the IAC can facilitate or contribute to the survey.
It would be appreciated if the Bureau's findings would be made
available to the IAC.
As the survey proceeds in the departments or agencies
ALLEN W. DULLES
Director of Central Intelligence
TAB A to
DRAFT IAC-D-7 E'
CONFIDENTIAL
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?.W CONFIDENTIAL VhWV
Annex A to
Tab A to
IAC-D-77
10 December - 4
Suggested Categories for the Survey of Intelligence Budgets
1. The major categories should be restricted to the classi-
cal classification of intelligence, namely: collection, production
and dissemination.
2. The category "collection" should be divided as overt and
covert.
3. Intelligence activities under the category "production"
should be further classified as follows:
a. Political, cultural and sociological
b. Ground Forces
c. Naval Forces
d. Air Forces
e. Economic
f. Scientific and Technical
g. Geographic
4. No attempt has been made to classify "production" or
the subdivisions of "production" as basic, current, and national
intelligence. Such a division, if made, would be unrealistic,
inasmuch as in some agencies the employment of personnel on
these respective categories of intelligence will vary with the
intensity of international relations and crises. There is no
formula thus far discovered or used among the agencies which
could indicate the actual allocation of total resources to those
categories of intelligence.
Annex A to
CONFIDENTIAL Tab A to
IAC-D-77
10 December 195-1
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~'' CONFIDENTTAT.
Annex _A to
Tab A to
IAC-D..77
10 December
5, The category "dissemination" for thi Po~e shoal
inrltiela. -- ,
:__-_-7 ... ,w.avaa~la,J117" Q].str r3t1t10
and libraries." I
f til-,?
-C-0 t'vL4ta
in connection with these activities
whether b
i
ll
,
y
nte
i
gence or by operations, which serve purposes other than intell?.
gence,. the approximate intelligence cost should be broken out
and listed. This is particularly applicable to certain problems
in collection, but is not necessarily restricted to collection.
In CIA,
translation is e-,g a part of Collection
A
_
Army prefers a more restrictive definition of "disse natior"
/as bein
th
t i
g
a
ntelligence activity which involves solel the
conveyance of intelligence information and finished intelli-
en
g
ce
-2-
CONFIDENTIAL
Annex A to
Tab A to
IAC.?D-77
10 December 1,9-m
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