ANNUAL REPORT OF THE CENTRAL INTELLIGENCE AGENCY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00269R000700010001-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 65
• Document Creation Date: January 4, 2017
• Document Release Date: April 28, 2005
• Sequence Number: 1
• Publication Date: January 1, 1967
• Content Type: REPORT

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S CA . Y E A 1, 96)
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(#1)Origi.-Qa1 w/cys #1 and #2 - Addressee
2 October 1967
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Mr. J. Patrick Coyne
President's Foreign Intelligence
Advisory Board
Executive Office Building
Washington, D. C.
Dear Pat:
Per my telephone conversation with Russell Ash, I am
enclosing herewith two copies of the Central Intelligence Agency's
Annual Report to the President's Foreign Intelligence Advisory
Board.
Sincerely,
%s% John A. Eros
I 1 w/ cy #3 - Dj r
#3 w/cys #4 anls-51/$_B
#4 w/cy #6 - ER via DDCI and ExDir
Copies 1 and 2)
O/ D CI/NIPE:dm
Distribution:
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30 September 1967
CENTRAL INTELLIGENCE AGENCY
Annual Report to the
President's Foreign Intelligence Advisory Board
A. Organizational. Arrangements . . . . . . . . . . . .
B. Total Cost Figures and Manpower Totals
at Headquarters and in the Field, with
Projections for Each of the Succeeding
Five Years . . . . . . . . . . . . . . . . . . . . .
C. Training .
D. Intelligence Collection Requirements . . . . . . . .
E.
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2. Information Handling and Retrieval Systems . 61
G. Intelligence Production
1. Current Intelligence Analyses . . . . . . . . . 69
2. National Intelligence Estimates . . . . . . . . 75
3. National Intelligence Surveys . . . . . . . . . . 78
4. Geographic and Geodetic Intelligence . . . . . . 81
F. Processing of Raw Intelligence
1. Photographic Interpretation . . . . . . . . . .
5. Economic Intelligence . . . . . . . . . . . . .
6. Military-Economic Intelligence . . . . . . . . .
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0. Legal . . . . . . . . . . . . . . . . . . . . . . . . .
P. Legislative . . . . . . . . . . . . . . . . . . . . . . 197
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A. ORGANIZATIONAL ARRANGEMENTS
A great deal of progress was made during the year in
Agency-wide application of the Planning, Programming and Budgeting
System. (PPBS), in response to Bureau of the Budget requirements.
A major step in this regard has been the increasing awareness that
PPBS is not simply a "budget exercise" but is in fact a valuable
management tool. Properly understood and applied, the techniques of
this system can help greatly in judgment processes involved in
allocating the right resources in the right measure to tasks undertaken
by Agency components; it can be even more helpful, perhaps, in the
equally demanding problem of determining where efforts should be
discontinued, where projects should be halted, where resources should
be reassigned, and where we must accept the risks of not knowing or try-
ing to know all the answers. PPBS cannot solve the problems of intelli-
gence gaps, the ideal allocation of resources, nor the effective
coordination of all U. S. intelligence activities, but it can bring many
of the elements vital to informed decision-making into sharper, and
hence more useful, focus, even of this kind.
An integral part of PPBS is in-depth studies of selected
activities. In FY 1967 we did a variety of these, among which were
the length of overseas tours, media/ propaganda operations
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(continuing), some parts of our air support capabilities, the training
of entering professional careerists and clandestine collection activities
changes were made as a result of these special studies, but we are
far better informed and far more confident of what we are doing and
how our resources are allocated.
The attached organization charts show:
1. Central Intelligence Agency: Organization and
Functions (to Deputy Director level)
2. Office of the Director
3. Deputy Directorate for Plans
4. Deputy Directorate for Intelligence
5. Deputy Directorate for Science and Technology
6. Deputy Directorate for Support.
No significant
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Deputy Director for
Intelligence
overt intelligence collection and processing.
Intelligence research and analysis. Exploita-
tion of imagery (photographic) information.
Production of estimative and current intelli-
gence, including national estimates.
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Central Intelligence Agency
ORGANIZATION & FUNCTIONS
STRENGTH
(as of 30 June 1967)
TOTAL AUTHORIZED:
DIRECTORATE STRENGTH: (in parentheses)
Director of
Central Intelligence
Deputy Director
Executive Director-Comptroller
Deputy Director for
Science and Technology
Research and Development in support of
Agency missions. Technical collection.
Processing and production of technical and
scientific intelligence.
Deputy Director for
Support
Support Services, including Personnel, Medi-
cal, Security, Training, Finance, Logistics,
Communications, and Emergency Relocation
and Records Center.
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Deputy Director for
Plans
Covert intelligence collection. Covert op-
erational activities.
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Organization & Functions
OFFICE OF THE DIRECTOR
Produces National Intelligence Estimates and
other special estimates. The Director of
National Estimates chairs the Boar of Na_
tional Estimates.
Office of
The Inspector General
Conducts inspections, investi-
gations and audits on behalf
of the Director.
Director of
Central Intelligence
Deputy Director
Executive Director-Comptroller,
Office of
General Counsel
Provides legal advisory services.
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Office of
Legislative Counsel*
STRENGTH
(as of 30 June 1967)
COMPONENT STRENGTH: (in parentheses)
TOTAL AUTHORIZE
Deputy to the Director for
National Intelligence
Programs Evaluation
Reviews and evaluates programs of the in-
telligence community as a whole on behalf
of the Director of Central Intelligence.
Office of
Planning, Programming
and Budgeting
Maintains Congressional liaison.
Provides legislative advisory serv-
ice.
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Develops and administers Agency-wide PPB
system. Monitors manpower controls. Pre-
pares and executes Agency budget and main-
tains liaison with Bureau of the Budget.
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Organization & Functions
DIRECTORATE OF INTEIIIGENCE
STRENGTH
(as of 1 July 1967)
TOTAL AUTHORIZED:
COMPONENT STRENGTH: (in parentheses)
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Information Requirements Staff
Liaison with Intelligence Community
collectors and processors on Agency
intelligence requirements, collection
problems, and collection guidar~
Central requirements register.
Office of
Current Intelligence
Current and special in-
telligence analysis. Cur-
rent intelligence support
to the President and
other senior officials.
Administers the Opera-
tions Center.
Office of
Strategic Research
Strategic military and
military-economic igteL
ligence.
CIA
Operations Center
Office of Basic and
Geographic Intelligence
Production of National
Intelligence Surveys and
related basic intelli-
gence. Geographic in-
telligence.
Office of
Economic Research
Foreign Broadcast
Information Service
Foreign Broadcast and Press monitor-
ing and reporting. Translating Services.
D
eputy Director
for
Intelligence
Director of
Intelligence Support
Coordination and management of
and CRS.
Committee on Imagery Requirements
and Exploitation. Committee on Doc-
umentation.
Imagery
Analysis Service
Departmental photo-
graphic interpretation.
Central
Reference Service
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Dissemination of intelligence mate-
rials. Biographic intelligence. Pu
lications acquisitions.
National Photographic
Interpretation Center
National photographic
interpretation.
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Organization & Functions
DIRECTORATE FOR SCIENCE AND TECHNOLOGY
STRENGTH
(as of 30 June 1967)
Deputy Director
for
Science and Technology
TOTAL AUTHORIZED
COMPONENT STREN in parentheses)
Office of
Research & Development
Basic and applied R&D in scientific and
technical fields.
Office of
ELINT
Office of
Scientific Intelligence
Scientific and technical intelligence pro-
duction.
Technical support and guidance; R&D on
collection devices and electronic counter-
measures.
Office of
Special Activities
Develops and operates certain highly sensi-
tive technical collection programs.
Office of
Special Projects
Develops and operates extremely sensitive
collection programs.
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Foreign Missile and Space
Analysis Center
Analyses and current reporting on foreign
missile and space events.
Office of
Computer Services
Central computer center for administrative
applications, data storage and retrieval and
scientific computations.
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Special Support
Assistant
Organization & Functions
DIRECTORATE FOR SUPPORT
Deputy Director
for
Support
STRENGTH
(as of 30 June 1967)
TOTAL AUTHORIZED:
COMPONENT STRENGTH: (in parentheses)
Support Services Staff
Agency regulation of Publication Control,
Directorate Information Processing, and
Agency records management.
Office of
Communications
World-wide cryptographic communications
for CIA and other a encies. Communica-
tions R&D.
Office of
Security
Personnel and physical security investiga-
tions; internal counterintelligence programs;
countermeasures programs in domestic and
foreign establishments.
Office of
Personnel
Personnel procurement; central personnel
management and planning. Operates bene-
fit and service programs (insurance, etc.)
Office of
Logistics
Procurement, warehousing, distribution, ac-
countability and disposition of equipment
and supplies; real estate and construction
activities; printing; mail, courier, and other
administrative services.
Office of
Medical Services
Professional medical services including ex-
aminations of applicants and employees;
medical support to Agency operations.
Office of
Training
Training programs and materials for Agency
and other intelligence personnel. Operation
of training facilities.
Office of
Finance
Financial operations of the Agency including
accounting systems and controls, auditing
and disbursing.
56995 9-67 CIA
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B. TOTAL COST FIGURES AND MANPOWER TOTALS
AT HEADQUARTERS AND IN THE FIELD, WITH
PROJECTIONS FOR EACH OF THE SUCCEEDING
FIVE YEARS
These comments are designed to explain and qualify the
resource (fund and manpower) projections presented in the attached
tabulations covering the period FY 1967 - FY 1972. Only the
FY 1967 data are actual and the projections for FY 1968 are based
on the Agency's budget submission to the Congress. Projections for
FY 1969 are based on the budget being submitted to the Bureau of the
Budget in late September 1967. Projections for FY 1970 - FY 1972
have been derived from the Program Memoranda submitted to the
Bureau of the Budget in June 1967 to serve as that part of the Agency's
Five-Year Forecast of proposed activities and related resource
.requirements.
As in last year's report, these projections are divided
into the six Program Categories of the Agency's Planning, Program-
ming and Budgeting System, and are further subdivided into U. S. and
overseas.
Projections for Agency activities in Southeast Asia are
included, but it is of budgetary significance that we do not include
funds for the Revolutionary Development Cadre program in Vietnam
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C. TRAINING
During the year we achieved our goal for recruit-
ment for the Career Training Program and placed Career Trainees
A major development in the CT Program was
The evaluation of the management training program given
experimentally to an entire Office was inconclusive. The results,
however, justified consideration of a second trial program for an entire
Office. In keeping with the President's instructions concerning planning,
25X1 programming and budgeting,flselected employees attended external
training in this field. In addition, the Agency has developed an internal
PPB course which will be run for the first time in September. Another
management area of special interest to the USIB has been automatic
data processing training. In addition to employees taking part-time
academic training, employees were sponsored for external ADP
training andemployees attended our newly designed internal
courses.
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As a result of last year's implementation of a major
foreign language policy, the Agency has engaged in an intensive
language proficiency testing drive. We now have a much more
accurate picture than before of our total language capabilities in
terms of tested proficiencies. In compliance with the policy, Agency
components also prepared a first set of foreign language competence
requirements by position, which will be reviewed and updated
annually. In-house language training activity showed an increase
of 76 per cent in total student hours over the previous fiscal year,
which can in large part be attributed to the new policy.
The final report of the Instructional Systems Study Group,
which was established last year to conduct a survey of new training
systems, particularly Program Assisted Instruction (PAI), finds
that PAI can be applied effectively to CIA's training courses on a
selective basis and that Computer Assisted Instruction, as a long-
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term development, can be a good way of meeting future training
requirements. Agency personnel took an internal course
in programmed instruction and developed eight useful programs.
During FY 1968 we expect to devise additional programs for courses
or parts of courses.
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D. INTELLIGENCE COLLECTION REQUIREMENTS
During the past year, the Agency's entire intelligence
collection requirements process was intensively studied by a task
force under the direction of the Inspector General. The findings and
recommendations of this task force are still under study, but certain
of the recommendations have already been put into effect. The require-
ments process continues to be focused in the Information Requirements
Staff (IRS), formerly called Collection Guidance Staff, of the Director-
ate for Intelligence. The IRS, however, has now been made responsible
for assisting both the Deputy Director for Intelligence and the Deputy
Director for Science and Technology in matters relating to the
collection of information, and serves as the central requirements
mechanism for the intelligence-producing components of both
Directorates.
To develop common standards, procedures and action
among Agency intelligence-producing components and the IRS in the
requirements process and to assist line supervisors in carrying out
their responsibilities for validation of their analysts' needs, an
Information Requirements Advisory Group (IRAG) has been established
with the Deputy Directors of each of the intelligence production
offices as members. The Advisory Group will review problems
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arising out of the requirements process and recommend remedial
actions or programs; it will also devise means of achieving the most
efficient use of collection resources.
The capabilities of existing and oncoming collection
systems continue to outstrip the ability of the processing and analytical
elements to absorb and use the increasing volume of raw information
in production relevant to key intelligence problems. The findings
of the task force make it clear that adequate control over requirements
is essential to hold in check the increasing flood of irrelevant or
secondary material which obscures or replaces the really useful data.
It is also clear that adequate control over requirements is a task
involving management at all levels, and requiring a variety of inter-
related actions by different elements of the Agency. The IRS occupies
a focal point in this task, but cannot, by itself, accomplish the desired
results. Increased emphasis is therefore being given to the responsi-
bilities of production office supervisors for critical review and
selective validation of analysts' requirements. Through the IRS and
IRAG mechanism, performance in the field of information require-
ments will be monitored with the general objective of guiding the
responses of collection systems toward higher priority information
needs and away from information which is irrelevant, redundant, or
of marginal benefit to the production process.
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guidance and requirements will continue to be modified in accordance
with considered judgments of the value of acquired information versus
its costs to the collection, processing and production resources of
the Agency.
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F. PROCESSING OF RAW INTELLIGENCE
1. Photographic Interpretation*
a. Results Obtained
During FY 1967, the National Photographic
25X1 Interpretation Center (NPIC) received a total
25X1 of operational film from satellite and aircraft coverage.
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surface, with special emphasis on the USSR, the European Satellite
countries, China and Southeast Asia.
Additional coverage of Southeast Asia, China,
most of the earth's
North.Korea and Cuba was provided by
resulting from
Total film input increased
received special attention. Input from this source is now being
exploited by the Center with no special difficulties.
the preceding year, but
* This report covers activities of both the National Photographic
Interpretation Center, an activity operated by the Agency in coopera-
tion with DIA, and the Imagery Analysis Staff (IAS), an Agency
component reporting directly to the Deputy Director for Intelligence,
CIA.
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Immediate reports were prepared on all missions,
and detailed reports were made on many significant targets. A total
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were produced, including
produced by IAS.
Imagery analysis support was provided to key government officials,
special committees, consultant groups and individual analysts. A
scale models were prepared for
the various briefings, including a number of boards which were
released by the Secretary of Defense for use by public media.
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b. Effects of the Joint Imagery Interpretation
Review Group (JIIRG) Findings
The adoption of the recommendations contained
in the JIIRG report has directly affected the activities of NPIC. Since
this new policy will require extensive implementation and will have
far-reaching consequences, its full effects will not become apparent
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for some time. The following actions, however, have already been
low
(1) The Imagery Analysis Division was
separated from the Center, although it is still located in the same
area and uses common support facilities. It was reconstituted as the
Imagery Analysis Staff, reporting directly to the DD/I, and charged
with providing direct imagery analysis support to CIA.
(2) A Planning Task Force, consisting of
three senior officers of NPIC has devoted several months to the study
of procedural and organizational problems in order to enable the
Center to fulfill its responsibilities under the National Tasking Plan
most effectively. This task force has determined a number of areas
which need study in greater depth and such studies are under way.
They include the need for increased emphasis on planning, an
effective mechanism for analysis and control of requirements, a more
effective method for organizational control, and a realignment of
the organizational structure in order to integrate the imagery
analysis cycle and provide a proper grouping of service and support
elements.
(3) The Center has established close and
continuing contacts with DIA officials in the imagery analysis field.
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That organization is kept informed of NPIC's major management
decisions and policies. DIA has agreed to train new NPIC photo
interpreter personnel at military facilities, which will eliminate the
need to maintain duplicate capabilities. NPIC has invited DIA to
assign certain hard-to-find technically-skilled personnel in the fields
of photogrammetry, planning and management, and ADP to NPIC as
part of the national effort. The Center has also indicated to DIA that
occasions could arise when special project financing, with DoD funds,
might be requested to meet specific agreed requirements which
extend beyond NPIC's normal program plans or responsibilities.
(4) Additionally, NPIC is furnishing
support to the Committee on Imagery Requirements and Exploitation
(COMIREX) in terms of providing membership on the various sub-
committees, administrative and clerical support, and space. The
Center is reviewing data and preparing for the establishment of the
National Data Base of imagery-derived information. Studies have
been undertaken and proposals submitted for standardized formats
to be used in the publication of basic PI reports and for issuing
updated reports.
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F. PROCESSING OF RAW INTELLIGENCE
2. Information Handling and Retrieval Systems
Information processing systems in the Central
Reference Service (CRS), formerly Office of Central Reference,
underwent intensive study and reassessment during the last three
quarters of FY 1967 in preparation for a comprehensive reorganization
and streamlining of the entire central reference function. This activity
was but one phase of a general plan for restructuring and realigning the
Agency's intelligence production offices and their supporting specialized
service functions. The objective is to increase the resources allocated
to production, to reduce the investment in support by curtailing non-
essential services and to increase the efficiency and responsiveness of
the service and support elements.
CRS is being reorganized from an office of loosely
associated, functionally aligned components into an integrated
system of geographically-oriented operating divisions supported by
a streamlined basic services group. The reorganization is accom-
25X1 panied by a
reduction in manpower between FY 1967 and
FY 1969. The major new innovations will appear in the Information
Services Group '(ISG), composed of five geographic divisions and the
CIA Library. The Document Systems Group (DSG) supports the ISG
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with electronic data processing, document and photographic acquisition
and dissemination, and document storage, retrieval and copy service.
The geographic division is the basic operating unit
in the new structure. There will be five such divisions: USSR, Far
East/Pacific, Europe, Near East/Africa, and Western Hemisphere.
Each division will operate on an all-source basis, performing integrated
processing of both documentary and graphic materials, whether from
25X1 collateral or codeword sources. They will produce intelli-
gence information and provide reference services covering foreign
installations and organizations and subjects/commodities/concepts/
events.
CRS will implement in its geographic divisions a standard,
shallow indexing system supported by digital computer processing.
25X1 This system will be used to control that portion of the documents
received annually which meet stringent selection criteria for retention
in the central reference system. Although the bulk of the material
selected for retention will receive only shallow treatment, that pertain-
ing to the USSR and China will be indexed to a deeper level.
installations information will continue to be controlled in hard copy
dossiers. All generated index records will be processed on CRS' IBM
360/30 computer.
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The reorganized CRS incorporates many of the
concepts and techniques developed in Project CHIVE. The principal
work remaining to be done on CHIVE involves test and evaluation of
the indexing system and its associated
software package. Evaluation
package cannot begin until at least the spring of
1968, the earliest estimated date for delivery of the package. The
China Operations Group, reduced in strength and reconstituted as
purely an experimental techniques test facility, will perform the
required tests and evaluations, the objectives of which will be to
and to determine whether the system is economically realistic under
CRS' reduced manning levels.
During November 1966, CRS began operating its own
IBM 360/30 computer. By July 1967, some 170 punch card applications
had been converted to digital computer processing. Use of the
computer has increased efficiency in the processing of the large
punched card indexes to stored material and has decreased the man-
power and machine time formerly required to perform the job. The
computer has also provided the base for developing the initial capa-
bility to process information generated in the new shallow indexing
system.
determine the technical performance of the indexing system
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compatible sub-systems.
The system permits professional employees to devote
their time to exploiting the use of the information.
(Reporting on processing of counterintelligence
information is contained in section K. 6. )
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G. INTELLIGENCE PRODUCTION
1. Current Intelligence Analyses
At White House request, the President's Daily Brief
has been shifted from close-of-business production and is now timed
to be available to the President wherever he may be, at the start of
each day before he reads the morning newspapers. The schedule
enables personal review by the Director of Central Intelligence at the
close of each working day and review of overnight changes and additions
by a senior Office of Current Intelligence (OCI) officer before publica-
tion.
Partly as a result of PFIAB recommendations, all
finished intelligence memoranda now not only identify the office of
origin, but indicate for the reader the extent of coordination within
CIA and throughout the intelligence community. The number of one-
time joint papers is increasing, and there are some regular jointly-
prepared periodicals such as the monthly CIA-DIA assessments of
bombing effectiveness in North Vietnam and of strategic weapons
systems in Cuba.
OCI continues the weekly report on potential crisis
situations, inaugurated during the preceding year in support of the
Senior Interdepartmental Group.
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The CIA Operations Center, managed by OCI for the
DD/I, now maintains 24-hour staffing in the National Military Com-
mand Center and assigns officers to the Operations Center of the
Department of State during crisis situations. These individuals
expedite exchange of information and obtain the operational data
required to produce comprehensive "net" finished intelligence for
certain senior policy-making customers. The Operations Center
has expanded its secure communications net, adding LDX Facsimile
to the National Security Agency
and access to the Department of State Automated Terminals System.
The Arab-Israeli crisis of May and June 1966
afforded an excellent example of the flexibility which the Operations
Center gives OCI for current intelligence reporting in crisis situations.
on a 24-hour basis, and brought into OCI representatives, who could
contribute the specialized inputs of estimative, operational, military
and economic intelligence elements.
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Similar task forces have been pulled together in the
Operations Center
he task forces have produced
situation reports as often as every hour, around the clock.
As the year ended, OCI was making preparations,
in coordination with the new Office of Strategic Research (OSR), to
maintain a capability for immediate reaction to reporting and analysis
requirements on military developments. The creation of OSR, which
will centralize all DD/I military, military/scientific, and military/
economic expertise, removed from OCI its Military Division, which
provided the OCI "in-house" capability for finished current reporting
in this field. Procedures have been developed, however, to ensure
that OSR expertise will be available on a 24-hour basis, along the
lines successfully evolved over more than a decade for OCI's inter-
face with the economic experts in OER.
OCI continues to produce comprehensive daily and
weekly situation reports on Vietnam. The weekly and monthly situa-
tion report originated as publications of a Vietnam interdepartmental
intelligence subcommittee. The monthly survives in the form of
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monthly statistical tables appended to the daily Sitrep; the daily and
the weekly are both produced by OCI for the Directorate of Intelligence.
The Scientific and Technical Intelligence Report
(Brief) was continued as the primary outlet for quick formal reporting
OSI continued to publish timely and detailed articles in
the monthly Scientific Intelligence Digest.
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The Daily and Weekly Surveyors continued to be well
received. These publications contain brief scientific and technical
items and OSI comments on subjects of immediate interest to the
intelligence community as well as other government agencies.
During the past year OSI responded to numerous
requests for timely intelligence information,
for the Office of Telecommunications Management, Office of the
In addition, OSI prepared a paper of widespread
current interest
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