NATIONAL INTELLIGENCE AUTHORITY MINUTES OF MEETING HELD IN ROOM 214, DEPARTMENT OF STATE BUILDING, ON WEDNESDAY, 16 OCTOBER 1946 AT 11:15 A. M.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00951R000400020045-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: December 8, 1998
• Sequence Number: 45
• Publication Date: October 1, 1946
• Content Type: MIN

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Secretary of State f.or Research and intelligence.
Assistant Secretary of State Donald Russell
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NATIONAL.INTELLIGENCE AUTHORITY.
Minutes of MeetinP, held in Room 214,
De artment of State as-L
.on Wednesday,_ b October g , at 11:15 a.m
MEMBERS PRESENT
Acting Secretaryof State Dean Acheson, in the Chasir
Secretary of. War Robert P. Patterson
Secretary of the Navy James Forrestal
Fleet Admiral - William. D, Leahy,
Personal Representative of the President
General Hoyt B. Vandenberg,
Director OP Central Intelligence
ALSO PRESENT'
Under Secretary of the Navy John L. Sullivan
William A Eddy Special Assistant to the
Mr. John D. Hickerson, Department or State
Mr. Dean Rusk,, War Department
Captain Robert L.,.Dennison, USN
Mr. 'Edward R Saunders, CIG
SECRETARIAT
Mr. James S. Lay, Jr., Secretary, N.I,A.
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S E C R E T
1., CENTRAL INTELLIGENCE GROUP BUDGET FOR FISCAL YEAR 1948
SECRETARY ACHESON said that he had received a recommenda-
tion by the CIG3udget Review Board that the NIA approve and
sign an authoriz :tion to the Director of Central Intelligence
to submit a budget of spegi?fied amount for the fiscal year 19+8:
He said that Genexia1?Vandenberg; had been asked to talk to the
NIA about this recommendation.
GENERAL VANDENBERG explained that he did not think the
NIA wanted a detailed discussion'of this proposed budget, but
he had brought men along who could explain any point the NIA
questioned.
SECRETARY FORRESTAL asked how much money the CIG planned
to spend during the. current fiscal year.
GENERAL VANDENBERG stated the amount now available to CIG
for the,, conduct of present operations. He explained that many
of the CIO personnel, were now being paid by the participating
departments rather than by CIG. In 19+.8 it was proposed,. that
CIG would reimburse the departments fpr any personnel assigned
to CYG. He felt-that this was proper since CIG would be submit-
ting a separate budget for 19.48
SECRETARY ACHESON asked whether this meant that the pro-
posed budget was not based upon the present Presidential
directive establishing NIP and CIG.
GENERAL VANDENBERG stated that the proposed bud?;rt was
based on the present Presidential directive, He said that it
was de6igne4 to cover CIG activities which would grow out of
existing NIA directives.! He explained that it was visualized
that this budget would necessarily be larger than normal during
the period of training and establishment of overseas operations.
Once personnel had been established in overseas posts, expenses
would only be required to take care of normal turnover of
personnel. It was contemplated, therefore, that this might be
the highest budget CIG Mould have to submit.
SECRETARY PATTERSON,asked for an explanation of Ghe
breakdown of vouchered and unvouchered funds.
GENERAL VANDENBERG explained that this contemplated
using vouchered funds for domestic activities and unvouchered
funds for all foreign activities. He said they used this basis
for vouchered funds in an effort to approximate the basis used
by other Government departments. He said thatthheswwou.lda?iike to
keep unvouchered funds to a minimum necessary o security.
SECRETARY ACHESON asked what the proposed budget would be
if personnel were not assigned from departments on a reimburs-
able basis.
GENERAL VANDENBERG said that he was unable to estimate
such a. figure since he did not know how many GIG personnel would
be service personnel or others assigned from departments, He
explained that this budget was based on the total personnel
required, including any service personnel. at their comparable
civilian grades and salaries.. He said that if NIA so desired,
.he would attempt to make another guess, but explained that it
would be very difficult to arrive at a more accurate estimate,
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at this time.
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ADMIRAL LEAHY.a.greed that this budget was bound t'o'b
nothing more than a guess.
SECRETARY ACHESON believed that-the budget prople would
raise the point that the' reimbursable feature in this budget
would undoubtedly create some duplication between CIG and the
departmental budgets.
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GENERAL VANDENBERG stated that this point had already been
discussed with the Bureau of the. Budget.
ADMIRAL LEAHY questioned the size of the estimate for
Personnel and Administration.
ranted that this figure might look large,
but ex : a' ne a , wa"s designed to furnish support for all
CIG activities at home and abroad. He said that CIcJ had used
the experience of the Joint Logistics Plans CommittL.o and the.
Army Service Forces, which indicated that 25% for '1~i1_pport was
the best planning figure. This proposed budget was based'on
the assumption that CIG would not depend on the departments for
any supplies or support. Therefore, the CIGfigure was actually
less than the normal-25 planning: figure. Of this, a large
proportion would be engaged in communications work alone. In
addition, all suppliers and services for"all CIG offices are
included in the figures shown ' f,or Personnel and Adiiiinistration.
ADMIRAL LEAHY expressed the belief t,~et many of the func-
tions enumerated were now being performed ty existing agencies
who might be able to handle CIG requirements more economically.'
said that this procedure would be-ques-.
tionable since it would Jeopardize security in the purchase and
shipment of supplies; He also noted that the'actu.a number of
personnel engaged in normal.procurement, supplies, _p rsonnel,
and medical activities was actually very small for the size of
the organization..
ADMIRAL LEAHY'then expressed the feeling that L.he budget
for Research. and Evaluation looked rather large.
SECRETARY FORRESTAL asked -how many people, OSr11 )i,nnd engaged
in similar activities,.
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MR, RUSSELL said that OSS had at one time all- Al. 1,400
engaged in research. He explained, however, that i.l, state
Department had taken over the remainder of that . or;-,?; ization
and, therefore, State's research personnel should 1.., =eided to
the CIG figure if they were to be compared with OS, .
noted that OSS had not at.temp#.rl to?.cover
Latin ral MacArthur's theater, as C]_+_T would do.
He also explained that the.departments had asked CI.G to in-
vestigate taking over the Washington Document Center, CIG had
also been asked to establish an information center. He said
that the Research and Analysis Branch of OSS had been used only
because it was considered the best norm for estimating purposes,
except that GIG would cover much more territory in their
activities.
ADMIRAL LEAHY asked what the Washington Doentnent Center
GENERAL VANDENBERG explained that this unit was exploiting-,
documents from Japan for certain intelligence purposes. He
explained that it was not a permanent unit, but will probably'
complete its work in about a year and a half.
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MR. RUSSELL asked if CIG could not call its office some-
thing, other than Research and Evaluation. He explained that
this name was so similar to that used by the State Department
that it might cause difficulty in obtaining appropriations
since it would appear to involve duplication.
GENERAL VANDENBERG agreed that he would change the name of
the CIG office.
ments.,1 He noted that both he and the members of the Intelli-
gence Advisory Board were watching that point very carefully.
.national slant. He noted that even when CIG receives finished
intelligence from the departments, CIG still has to analyze it
and find out whether it is pointedup from a national point,of
view. Each agency normally prepares intelligence from its own
departmental viewpoint.". There must, therefore, always be in
CIG a research unit which looks at the intelligence from the
viewpoint of all departments rather than any one. He assured
NIA that CIG was not going to do the same research done by the
departments, but rather would cover marginal areas and fill gaps
not covered by any department.
MR. EDDY stated that originally the figure for. CIG
Research and Evaluation had struck him as being rather large.
Further examination indicated thdLtCIG w4;s being, asked to do
research on,,large areas which .rio department can do. He thought
that CIG might well have to build up its research.organization
to the size indicated in. the budget.
GENERAL VANDENBERG.assured the NIA that CIG had no intent
to infringe upon the fields of primary interest to the, depart-.
MR. RUSSELL noted that if the CIG budget was based an, the
former OSS Research and Analysis Branch, this would create
complications, since the State Department has already asked
for funds for the successor to.that Branch.
GENERAL VANDENBERG explained that CIG had not used OSS,as
a basis in order to establish a similar or duplicative unit
CIG had only used O5S as an example of the research personnel
required to cover certain areas of the world: He explained that
CIG'required_this research personnel to put together the
finished intelligence from the departments plus information
collected by CIG itself, and to give all this material a
SECRETARY FORRESTAL asked what Congressiona"cS~-~
General Vandenberg had appeared before.
GENERAL VANDENBERG said that he had always appeared before
,the Appropriations Committee.
COLONEL HARRIS explained that the,plan was to hide the
CIG budget in the various departmental budgets. Then at an
agreed time, as arranged by the Bureau of the Budget, General
Vandenberg would appear before the Appropriations Committees to
ADMIRAL LEAHY asked what objection the NIA would have to
authorizing the Director of Central Intelligence to proceed to
attempt to obtain the proposed budget. He thought that if this
amount could be obtained it could certainly be used judiciously
in furnishing intelligence services. If there was a possibility
of obtaining this amount, he thought General Vandenberg should
at least try to get it. If the budget should be out, It would
then be necessary to out the cloth to fit the reduced amount.
justify the CIG budget as a unit.
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in answer to a question by Secretary'
Forres , only two individuals in the Bureau of the
Budget saw the integrated CIG budget.
GENERAL VANDENBERG explained that both of these men have
been investigated for security by CIG.
SECRETARY PATTERSON asked what the final form of the CIG
budget would be. He wondered whether it would appear anywhere
as so many dollars-for CIG activities.
GENERAL VANDENBERG said that it would appear nowhere in
that form.
SECRETARY FORRESTAL said.it was his understanding that it
would be buried in the budgets of the various depar i menbs
GENERAL VANDENBERG confirmed that this was tlir' arrangement
which had-been wdrked out with the concurrence of t,ti Bureau of
the Budget.
SECRETARY ACHESON,'in answer to.a question.by Admiral
Leahy, said.that this meeting. had been called at his request.
He had thought.. it would be wise,' before approving hwlget of
this size, to have a clear idea as to wny this action l.iad been
taken. He thought that the discussion had been vei. , !ir--lpful in
that regard.
SECRETARY FORRESTAL stated that the ;impor.tant 'Ili i..jig, as
he was sure General Vandenberg realized, was that C]( ;hou_ld
screen the use of its money, particularly its persoi:iji-l., so that
there wouldbe no.revulsion in the next Congress.
MR. RUSSELL then made a helpful suggestion as t the
basis for estimating the proportion, of vouchored and a.r~vouchored
funds.
THE NATIONAL' INTELLIGENCE AUTHORITY:
ApproV,ed and signed a memorandum authorizing tho Director
of Central Intelligence to submit a budget of specified
amount for the fiscal year 19+8;
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