THE DCI HISTORICAL SERIES CIA SUPPORT FUNCTIONS: ORGANIZATION AND ACCOMPLISHMENTS OF THE DDA--DDS GROUP, 1953-1956 VOLUME I (CHAPTERS I AND II)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00708R000300040001-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 202
• Document Creation Date: December 9, 2016
• Document Release Date: August 18, 2000
• Sequence Number: 1
• Publication Date: July 1, 1960
• Content Type: SUMMARY

Approved For Release 2001/09/04: CIA-RDP90-00708RSe 001-2
CIA Internal Use Only
Access Controlled by
CIA Historical Staff
CIA HISTORICAL STAFF
OGC HAS REVIEWED.
The DCI Historical Series
CIA Support Functions:
Organization and Accomplishments
of the DDA--DDS Group, 19531956
Volume I (Chapters I and II)
Secret
HS-3, vol. I
July 1960
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WARNING
This document contains information affecting the national
defense of the United States, within the meaning of Title
18, sections 793 and 794, of the US Code, as amended.
Its transmission or revelation of its contents to or re-
ceipt by an unauthorized person is prohibited by law.
GROUP I
Excluded from automatic
downgrading and declassification
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SE ~ E
MEMORANDUM FOR: Historical Officers and Writers
in the CIA Historical Program
FROM Chief, CIA Historical Staff
SUBJECT Chronology 1946-65
1. The CIA Historical Staff has recently
compiled and published for your use the attached
Chronology 1946-65, Volumes I and II.
2. You will note that events of historical
interest have been tabulated in four parallel
columns in chronological order--one column each
for international, national, community, and CIA
events. The page is designed to facilitate the
identification of related incidents.
3. The Chronology is not, of course, intended
to take the place of basic documents that would
normally be researched and exploited by the histori-
cal writer. It should, however, be useful in pro-
viding the writer with a quick, general survey of
the events of broad interest that occurred during
a given time period.
4. This Chronology is a first edition based
on data currently avai~ble to the CIA Historical
Staff. Readers having information that would
assist the Staff in refining or correcting entries
in this edition are invited to communicate with the
CIA Historical Staff, 203 Key Bldg., x2621.
5. I trust you will find this tool useful in
your historical research and writing, and I welcome
your comments and suggestions.
25X1A
Chief, CIA :Historical Staff
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0
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Secret
CIA Internal Use Only
CIA Historical Staff
Chronology 1946-65
Volume 11946-SS
Secret
June 1970
Copy N2 6
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 Approved For Release 2001/09/04: CIA-RDP90-00708R000300040001-2
WARNING
This document contains information affecting the national
defense of the United States, within the meaning of Title
18, sections 793 and 794, of the US Code, as amended.
Its transmission or revelation of its contents to or re-
ceipt by an unauthorized person is prohibited by law.
GROUP I
FHClodad from automatic
d-.4and declassification
Approved For Release 2001/09/04: CIA-RDP90-00708R000300040001-2
 Approved For Release 200/"ECGIA-RDP90-00708R000300040001-2
CIA Internal Use Only
CHRONOLOGY 1946-65
VOLUME I 1946-55
HISTORICAL STAFF
CENTRAL INTELLIGENCE AGENCY
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Foreword
This chronology provides the Agency historian with a brief,
factual introduction to the main currents of the two turbulent
decades of world affairs after World War II, when the United
States emerged as leader of the Free World and when the Central
Intelligence Agency evolved as a significant instrument of US
national security policy in the cold war. The chronology
reflects CIA's development and progress not only as a central
agency for the analysis of intelligence information and the
preparation of strategic intelligence estimates but also as
an active, operational member of the US and Allied security
system.
The chronology consists of four parallel columns: column
1 cites occurrences of world-wide significance; column 2,
events of national interest; column 3, developments in the US
intelligence and national security communities; and column 4,
milestones in the evolution of the Agency. Included are
public events of major political, diplomatic, military, and
technological significance, as well as selected intra-Agency
activities.
In format and detail the chronology is necessarily selective
and terse. The historian will, of course, wish to exploit
the many specialized chronologies in his field--both clas-
sified and unclassified. In addition, he will also find
useful the historical compilations prepared by the Library
of Congress for the Committee on Foreign Relations of the
United States Senate such as Background Information Relating
to Southeast Asia and Vietnam, 5th rev ed (91st Congress, 1st
Session, 1969) and A Select Chronology and Background Documents
Relating to the Middle East, 1st rev ed (91st Congress, 1st
Session, 1969). The numerous entries in the Annual Index of
the New York Times provide details on the day-to-day progress
of public affairs; Neville Williams' Chronology of the Modern
World, 1st American ed, New York, David McKay, 1967, is an
important British compilation; Andre Fontaine's two chrono-
logies in his History of the Cold War, New York, Pantheon,
1965, illuminate events from the French point of view; and
the latter part of William L. Langer's An Encyclopedia of
World History, 4th ed, Boston, Houghton Mifflin, 1968,
furnishes a chronological survey of the postwar period in
its broadest historical perspective.
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Page
1946 . . . . . . . . . . .. . . . . . 2
1947 . . . . . . . . . . . . . . . . 14
1948 . . . . . . . . . . . . . . . . 20
1949 . . . . . . . . . . . . . . . . 26
1950 . . . . . . . . . . . . . . . . 32
1951 . . . . . . . . . . . . . . . . 40
1952 . . . . . . . . . . . . . . . . 46
1953 . . . . . . . . . . . . . . . . 52
1954 . . . . . . . . . . . . . . . . 60
1955 . . . . . . . . . . . . . . . _ 68
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Jan-Feb 46)
Global United States
JAN. United Nations Organiza-
tion convenes in initial me(:!t-?
ings in London ;
10 Jan. General Assembly;
17 Jan. Security Council;
1 Feb. Trygve Lie (Norway)
elected Secretary General;
25 Mar. Military Staff
Committee meets first time.
6 JAN. Turkey's Premier de-
nounces Soviet territorial
claim to Kars and Ardahan
provinces.
19 JAN. Iran asks UN to in-
vestigate Soviet interference;
19 Mar. dispute tabled at
Security Council;
25 Mar. Soviet: troops
start to leave Iran;
26 Mar. UN hearings open.
24 JAN. US Signal Corps radar
contact with moon announced.
4 FEB. Romanian government
TGroza) recognized by US;
18 Apr. Yugoslav govern-
ment (Tito) recognized.
- 2 --
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Intelligence Community
Jan-Feb 46
Central Intelligence Agency
22 JAN. National intelligence
organization established by
Pres. Truman:
National Intelligence
Authority (NIA) as policy and
coordinating body,
Intelligence Advisory
Board (IAB) as community com-
mittee,
Central Intelligence Group
(CIG) as operating agency,
Director of Central Intel-
ligence (DCI) to serve in all
three bodies.
23 JAN. Rear Adm. Sidney W.
Souers, USNR (Deputy Chief of
Naval Intelligence), appointed
first DCI by Pres. Truman.
4 FEB. IAB convenes for first
t-i'me, with DCI, State, War,
Navy, and Army Air Forces
reps.; J.S. Lay, Jr., Sec'y.
5 FEB. NIA convenes for first
time with Secretaries James F.
Byrnes (State), Robert P. Pat-
terson (War), James Forrestal
(Navy), Adm. William D. Leahy
(Pres. Truman's representat-
ive), and DCI Souers;
8 Feb. first NIA Direct-
ives (Nos.1 and 2) prescribe
DCI and CIG missions and
functions.
18 Feb. J.S. Lay, Jr.,
appointed NIA Secretary.
6 FEB. Central Reports Staff
CRS activated in CIG with
Ludwell L. Montague (from
State) Acting Chief.
8 FEB. Central Planning Staff
CPS) established in CIG;
18 Feb. 25X1A
(Navy) named Acting 25X1A
Chief; 25X1A
25 Jun. Capt. C.E. Olsen
(Navy) appointed Acting Chief.
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12 FEB. In Argentina's elec-
tion campaign, US issues
"Blue Book" on Nazi wartime
influence in Argentina and
Latin America;
22 Feb. Peron counters with
"Blue and White Book," charg-
ing US Embassy with espionage;
28 Mar. Peron elected Presi-
dent.
15 FEB. Canada seizes 22 as
Sow spies, Royal Investi-
gating Commission announced;
4 Mar. Interim report.
14 FEB. Lt. Gen. Walter B.
Smith succeeds W. Averell
Harriman as Ambassador to
USSR;
26 Apr. Embassy's Minister
Counsellor George F. Kennan
reassigned to,Washington.
5 MAR. Churchill warns of
Soviet "iron curtain," sug-
gests US-British "fraternal
association" in speech at
Fulton, Mo.
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Intelligence Community
20 FEB. State-War-Navy Coor-
dinating Committee (SWNCC)
reconvenes with new Navy
member (John C. Geilfuss);
Apr. new State member and
chairman (Maj. Gen. John D.
Hilldring);
Jul. new War member (Dean
Rusk).
Central Intelligence Agency
14 FEB. first Daily Summary
di'sseminated;
7 Jun. first Weekly Sum-
mary;
10 Jun. Weekly Summary
approved by IAB and placed
under IAB's "common observa-
tion" and advice.
18 FEB.
named CIG's first adminis-
trative officer (actin ); 25X1A
14 MAR. Survey report on OSS
and Strategic Services Unit
(SSU) completed by IAB sub-
committee;
2 Apr. NIA orders SSU
liquidated by CIG by 1 Jul 47;
CIG authorized to absorb
OSS/SSU assets as appropriate;
4 Apr. Col. William W.
Quinn succeeds Brig. Gen.
John A. Magruder_ as SSU Dir-
ector.
26 MAR. FBI (J. Edgar Hoover,
Director) added to IAB member-
ship.
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Apr-Jun 46
5-9 APR. US naval force visits
Istanbul and Dardanelles.
25 APR. Big Four Council of
Foreign Ministers (CFM) recon-
venes in Paris to discuss
peace treaties, upcoming peace
conference, status of Germany;
meetings continue to 15
May, reconvene 15 Jun to 12
Jul.
Present: Byrnes, Bevin,
Molotov, Bidault.
2 MAY. 11-nation Internation-
al Military Tribunal convenes
in Tokyo;
27 indicted as war crimi-
nals.
31 MAY. Pearl Harbor hearings
concluded by Congressional
Joint Committee;
20 Jul. majority and minor-
ity reports released.
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Intelligence Community
APR. State's intelligence
group (inherited from
OSS/R&A) reorganized after
budget cuts by Budget Bureau
and House Appropriations Com-
mittee;
9 Apr. research decentral-
ized to geographical divi-
sions;
23 Apr. Alfred McCormack
(Special Assistant for Re-
search and Intelligence)
resigns;
9 May. William L. Langer
succeeds McCormack, joins IAB.
MAY. Transfer of., FBIS assets
from War to State proposed by
Gen. Vandenberg;
29 Jun. transferred by NIA
to CIG and assigned to Office
of Collection;
17 Oct. moved to Office of
Operations.
pr=Jiln 46
Central Intelligence Agency
9 MAY.- IAB agrees on USSR as 9 MAY. Lt. Col. Claude D.
priority intelligence object- Barton named first Security
ive in CIG 8 and 8/1; Officer of CIG;
19 Jul. CIG's first esti-
mate of Soviet capabilities
and intentions world-wide re-
quested by President Truman;
23 Jul. estimate delivered.
JUN. At War Department, Maj.
Gen. Stephen J. Chamberlin
succeeds Vandenberg as Direc-
tor of Intelligence;
10 Jun. joins IAB.
7 JUN. CIG's first consult-
ants are announced:
(from
State Department and National
War College) on USSR;
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Jun-Jul 46
30 JUN. US national security
and international expenditures
in FY 46 reduced to $46.2 bil-
lion from $84.5 billion in
FY 45.
Military strength reduced to
to 3 million officers and en-
listed men, from .12 million in
FY 45.
1 JUL. US tests atomic weapons
at .Bikini;
1 Aug. Atomic Energy Com-
mission established along with
Congressional Joint Committee
on Atomic Energy;
28 Oct. David E. Lilienthal
appointed AEC chairman;
:L2 Dec. science advisory
committee established.
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Intelligence Community
MID-JUN. Communications intel-
llg-T ence activities reorganized;
CIG and Army Air Forces added
to community board (State-
Army-Navy Communications Board
--STANCIB), renamed US Com-
munications Intelligence Board
(USCIB).
17 JUL. NIA convenes in first
me t nie g with DCI Vandenberg;
26 Jul. NIA establishes
Interdepartmental Committee on
Acquisition of Foreign Publi-
cations, with Librarian of
Congress as chairman, and sec-
retariat in State.
Jun-Jul 46
Central Intelligence Agency
7 JUN. Lt. Gen. Hoyt S. Van-
denberg (Assistant Chief of
Intelligence, War Department
General Staff) appointed. DCI,
replacing Souers; sworn in,,10
Jun.
17 JUN. OSS/SSU assets reor-
ganized in CIG;
SI and X-2 branches merged
into a new Foreign Security
Reports Office headed
by
Jul. Office of Special
Operations (OSO) established
under CIG Assistant Director
Donald H. Galloway;
eorgan-
n amed
23 Jul. Executive Staff
established under Col. J.A.
0 Assistant Executive 25X1A
Director, with Executives for
Control, Operations, Advisory
Council, and Personnel Admin-
istration;
26 Aug. Organization Branch
added.
Executive to DCI;
ized. Col.
26 JUN. DCI's offl
19 JUL. Offices of Collection
inandCIDGis; semination established
10 Sep. combined into a
single OCD.
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Jul-Aug 46
Global
United States
29 JUL. Peace Conference con-
venns-in Paris (29 Jul-15 Oct)
with 21 nations represented;
Oct. treaties conclludeddrLa,
with Italy, Romania,
Hungary, and Finland;
4 Nov. 4-power Council of
Foreign Ministers reconvenes
for final amendments.
8 AUG. USSR renews demand for
joint control of DardanellE:S
with Turkey (revision of
Montreux Convection) ; by US
21-22 Aug. rejected
and Turkey.
2 AUG. Senate votes US adher-
ence to reorganized World
Court (I.C.J.) ept
"domestic' matters.
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Intelligence Community
Jul-Aug 46
Central Intelligence Agency
20 JUL. CIG coordination staff
further reorganized;
CPS replaced by Interde-
partmental Coordinating and
Planning Staff (ICAPS); CPS
personnel re-assigned to OSO
and ICAPS;
Donald D. Edgar named act-
ing chief of ICAPS, 23 Jul.
22 JUL. Central Reports Staff
reorganized as Office of Re-
search and Evaluation (ORE)
with Montague acting head;
10 Sep. Montague replaced
by J. Klahr Huddle (from
State);
27 Oct. ORE renamed office
of Reports and Estimates.
23 JUL. CIG Advisory Council
established for communications
intelligence;
AUG. At State, William A. Eddy
succeeds Langer as Secretary's
Special Assistant for Research
and Intelligence;
1 Dec. Allan Evans named
Director of Office of Intelli-
gence Research.
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Sep-Dec- 46.
15 SEP. Greek civil war re-
newed. '
30 SEP. Nazi war crimes trials
at Nuremberg ended: 3 men ac-
quitted, 19 sentenced by In-
ternational Tribunal, 4 German
organizations indicted, 4 ac-
quitted.
19 NOV. Afghanistan, Iceland,
and Sweden join UN;
16 Dec. Thailand joins UN.
28 NOV. Indo-Chinese war lie-
gins, Haiphong bombed by
French;
20 Dec. Ho Chi Minh govern-
ment evacuates Hanoi.
12 DEC. UN General Assembly
calls for diplomatic boycott
of Spain.
12 SEP. Secretary of Commerce
Henry A. Wallace publicly de-
plores "get tough with Russia"
policy;
20 Sep. Wallace dismissed
by Pres. Truman.
4 OCT. Pres. Truman publicly
pledges US support to a sepa-
rate Jewish state in Palestine.
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Intelligence Community
OCT. Evaluation of CIG by Dr.
Sherman Kent, "Prospects for
the National Intelligence
Service," published in Yale
Review, autumn 1946--first
major critique of US postwar
intelligence in academic
press.
6 DEC. J.S. Earman named acting
Secretary of NIA and IAB, suc-
ceeding Lay;
17 Dec. IAB reconvenes in
last meeting chaired by DCI
Vandenberg.
17. DEC. First major Congres-
sional review of postwar US
Sep-Dec 46
Central Intelligence Agency
1 OCT. CIG's authority for
personnel-clearance investiga-
tions agreed to by IAB.
17 OCT. Office of operations
00) established under Brig.
Gen. Edwin L. Sibert, replac-
ing "B" Deputy, OSO;
intelligence (filed by
Peter
31 DEC. Foreign Documents
Vischer, House Military
Af-
Division (FDD) established in
fairs Committee) urges
per-
00, outgrowth of Army-Navy
manent NIA system under
civil-
Washington Document Center for
ian direction and Congres- captured Japanese and German
sional control. documents.
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Jan-Jun 47
10 MAR. Council of Foreign
Min sters reconvenes in Mos-
cow on German questions;
24 Apr. adjourns without
agreement;
25 Nov. reconvenes in Lon-
don;
15 Dec. adjourns indefini-
tely.
21 JAN. Gen. George C. Mar-
shall, returning from ].5-month
China mission, succeeds; Byrnes
as Secretary of State;
12 May. Under Secretary
Dean Acheson resigns;
1 Jul. Robert A. Lovett
appointed Under Secretary.
12 MAR. Pres. Truman asks US
Congress for aid to Greece and
Turkey ("Truman Doctrine");
23 Apr. $400 million bill
passed by Senate;
9 May. passed by House;
22 May. signed by Pres.
Truman.
5 MAY. French government
Ramadier) dismisses Communist
ministers.
3 MAY. Japanese constitution,
developed under Gen. Mac-
Arthur's sponsorship, goes
into effect.
5 JUN. Secretary of State
Marshall announces European
economic recovery plan
("Marshall plan");
2 Jul. rejected by USSR
and East European satellites
and Finland;
Jul. Paris conference of
16 "Marshall plan" countries
convenes.
30 JUN. US national security
and international. expenditures
in FY 47 reduced to $20.9 bil-
lion from $46.2 billion in FY
46.
Military strength declined
to 1.5 million officers and
enlisted men from 3 million in
FY 46.
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Jan-Jun 47
Central Intelligence Agency
20 JAN. Col. Edwin K. Wright
relieved as DCI Vandenberg's
Executive and named Deputy
Director of Central Intelli-
gence (DDCI).
12 FEB. NIA prescribes re-
quirements on China in Direc-
tive No. 8.
30 APR. Subcommittee on Psy--
chological Warfare (PWC) es-
tablished by SWNCC;
5 Jun. renamed Subcommittee
on Special Studies and Evalu-
ation (SSE).
15 MAY. IAB reconvenes in
fig rst meeting chaired by DCI
Hillenkoetter.
22 JUN. Pres. Truman appoints
three foreign-aid investiga-
tion committees, chaired by
Julius A. Krug, Edwin G.
Nourse, and W. Averell Harri-
man (reports released 9 Oct,
28 Oct, and 7 Nov,respective-
ly).
22 Jul. House of Represent-
atives establishes special
committee on foreign aid
(Christian A. Herter);
23 Dec. Congress, convened
in special session, approves
$540 million for France, Italy,
Austria, and China.
18 APR. DCI's atomic-energy
intelligence coordination
functions defined by NIA Dir-
ective No. 9.
30 APR. Rear Adm. Roscoe H.
Hiillenkoetter appointed DCI
to succeed Vandenberg;
1 May. Hillenkoetter sworn
in, Wright continuing as
DDCI;
12 May. Capt.
_ USN, appointed Exec-
tive Director.
26 JUN. State-OSS map library
and geographic intelligence
functions transferred to CIA,
to be located in ORE as Map
Intelligence Branch, headed
by Dr. 25X1A
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Jul-Sep 47 1
JUL. US "containment" policy 25X1A
toward USSR urged ublicl by
"Mr. X" in
Foreign A airs article on
"The Sources of Soviet: Con-
duct."
11 JUL. Lt. Gen. Albert G.
Wedemeyer sent by Pres. Truman
on mission to Korea and China,
returns 18 Sep.
15 AUG. India and Pakistan be-
come independent Dominions in
British Commonwealth.
2 SEP. Inter-American Mutual
Assistance Treaty, including
anti-Communist security agree-
ments, signed at Rio de
Janeiro conference, first un-
der UN charter.
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Intelligence Community
Jul-Sep 47
Central Intelligence Agency
1 JUL. CIG security staffs re-
organized, renamed Inspections
and Security Staff (I&S);
1 Jul. Col. Sheffield
Edwards appointed CIG Execu-
tive for I&S.
26 JUL. National Security Act
signed creating a single
National Military Establish-
ment (NME) under a Secretary
of Defense, with unified Joint
Chiefs of Staff, War Council,
Munitions Board, and Research
and Development Board;
18 Sep. establishment of
National Security Council (re-
placing NIA), National Secur-
ity Resources Board, and Cen-
tral Intelligence Agency (re-
placing CIG).
26 JUL. Navy Secretary James
Forrestal appointed and con-
firmed as first Secretary of
Defense (sworn in 17 Sep);
21 Aug. three departmental
Secretaries in NME appointed:
Kenneth C. Royall (Army), John
L. Sullivan (Navy), and W.
Stuart Symington (Air Force).
11 SEP. IAB convenes in last
meeting before reorganization
into IAC;
Atomic Energy Commission
member added (Rear Adm. John
E. Gingrich, intelligence and
security director);
NIA issues final directive
on changeover to NSC (NIA Dir-
ective No. 11).
1 JUL. Executive for Adminis-
tration and Management (A&M)
established, replacing Person-
nel and Administration Branch
and ICAPS' management service;
named A&M Execu- 25X1A
tive; covert administrative
matters transferred to OSO,
along with Communications
Division.
29 AUG. Rear Adm. Roscoe H.
Hillenkoetter reappointed by
Pres. Truman to statutory
position of DCI as establish-
ed in National Security Act;
26 Sep. re-sworn in.
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Sep-Dec 47
5 OCT. Communist Information
Bureau (COMINFORM), for coor-
dinating Party activities in
nine European countries, an-
nounced in Moscow.
5 DEC. US embargoes arms ship-
ments to the Middle East.
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Intelligence Community
26 SEP. Pres. Truman's NSC
holds initial organizational
meeting;
12 Dec. first NSC Intelli-
gence Directives issued, out-
lining CIA, departmental, and
IAC responsibilities (NSCID
Nos. 1-6);
1 OCT. W. Park Armstrong, Jr.,
succeeds William O. Eddy as
Secretary of State's Special
Assistant for Research and In-
telligence, representing State
on IAC.
4 NOV. SWNCC renamed State-
Army-Navy-Air Force Coordinat-
ing Committee (SANACC), with
member added for new Depart-
ment of the Air Force;
Aug 48. placed under NSC;
30 Jun 49. discontinued.
20 NOV. Intelligence Advisory
Committee (IAC), replacing IAB,
convenes for first time: DCI
Hillenkoetter, chairman; W.
Park Armstrong, Jr., (State) ;
Chamberlin (Army); Inglis
(Navy); McDonald (Air Force);
Gingrich (AEC); Brig. Gen.
Walter E. Todd (JCS), FBI (re-
presentative absent), and
Prescott Childs (CIA/ICAPS)
secretary;
8 Dec. Maj. Gen. C.P.
Cabell succeeds McDonald (AF),
and William C. Trueheart suc-
ceeds Gingrich (AEC).
Sep-Dec 47
Central Intelligence Agency
1 OCT. Joint Army-Navy Intel-
ligence Surveys (JANIS pro-
gram) transferred to CIA from
NME, reestablished as National
Intelligence Surveys (NIS
program) in Basic Intelligence
Division of ORE;
Joint Intelligence Study
Publishing Board (JISPB) dis-
continued, replaced by ad hoc
committee appointed by IAB
(Sep 47), then by NIS Commit-
tee established under IAC,
(Jan 48), with CIA chairman
and secretariat.
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Jan-Mar 48
Global United States
27 JAN. Smith-Mundt Act signed,
T.rst Congressional authoriza-
tion for US world-wide inform-
ation and cultural activities
program.
16 FEB. North Korean People's
Democratic: Republic (Commu-
nist) proclaimed at Pyong-
yang;
15 Aug. Republic of South
Korea proclaimed, with Syngman
Rhee as president.
25 FEB. Communist coup in
Czechoslovakia, under
Gottwald;
Feb-Mar. "war scare" ru-
mors in Europe.
27 FEB, Finland-USSR mutual
assistance pact proposals re-
vealed;
6 Apr. pact signed;
23 May. Finland's Communist
Minister of Interior dismissed;
1 Jul. Communists lose 11
seats in parliamentary elect-
ions.
15 MAR. In Japan, opposition
party (Democratic Liberals)
formed;
14 Oct. elects Yoshida
prime minister;
19 Oct. Yoshida forms new
government.
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Intelligence Community
13 JAN. NSC redefines of intelligence collect-
ion (NSCID No. 2) and pro-
duction (NSCID No. 3);
25 May and 18 Jan 49.
scientific and technological
intelligence (NSC.ID Nos. 8,
10).
Jan-Mar 48
Central Intelligence Agency
24 Feb.
Thomas
G. C*assady
announced
Chief;
22 Mar.
renamed
Special
Procedures Group (SPG);
18 Jun. SPG replaced
by Office of Special Projects,
chartered by NSC 10/2.
13 FEB. NSC establishes con-
sultants group to survey CIA
and US intelligence community,
with Allen W. Dulles (chair-
man), William H. Jackson,
Mathias F. Correa, and Robert
Blum (Executive Secretary).
Interim reports filed 3
and 13 May 48, final report,
1 Jan 49.
7 MAR. State's Policy Planning
Staff reorganized, George F.
Kennan appointed Director.
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Apr-Jun48
(/
30 MAR. 9th Inter-American
Conference convenes at Bogota,
interrupted by Communist riots,
establishes defense council
and drafts charter for new Or-'
ganization of American States.
(OAS).
18 APR. Italy holds national
elections, Christian Democrats
win absolute majority, against
30% popular vote for Commun-
ist-Socialist bloc;
23 May. de Gasperi and
Sforza form new government.
14 MAY. British mandate in
Palestine ends, state of
Israel proclaimed;
14-17 May. recognized by
US, France, and USSR.
20 JUN. Berlin blockaded
by USSR, against West German
occupation zones; massive US
airlift launched on 26 Jun;
11 Play 49. Soviet blockade
lifted.
3 APR. Foreign Assistance Act
signed, $5.3 billion author-
ized for European economic re-
covery programs (ERP);
6 Apr. Paul G. Hoffman
named head of Economic Coop-
eration Administration (ECA);
28 Jun. appropriations
passed by Congress, signed.
11 JUN. Senate approves "Van-
denberg Resolution," favoring
principle of regional security
arrangements, including
Brussels Pact of 17 March and
proposed North Atlantic; Treaty.
28 JUN. Yugoslavia expelled
from COMINFORM by Soviets.
28 JUN. Displaced Persons Act
signed for admitting 200,000
non-quota DP's from Europe
over following two years.
30 JUN. US national security
and international expenditures
in FY 48 reduced to $16.3 bil-
lion, from $20.9 billion in FY
47.
Military strength declined
to 1.4 million officers and
men (as of 30 Jun 48) from 1.5
million in FY 47.
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Apr-Jun 4 8
Intelligence Community
Central Intelligence Agency
3 MAY. Reference Center (orig-
inally established in ORE,
then moved to A&M) relocated in
OCD, along with Collection and
Dissemination Offices and Cen-
tral Records Division;
18 May. Dr. James M. Andrews
named AD/CD.
16 JUN. IAC's membership
changes: for Army, Maj. Gen.
A.R. Bolling succeeds Chamber-
lin;
3 Dec. Bolling succeeded
by Maj. Gen. S. LeRoy Irwin,
and for AEC, Dr. Walter F.
Colby succeeds Trueheart.
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Jul-Dec 48
6 JUL. North Atlantic Treaty
negotiations begin with 7
sponsoring nations: U'S, UK,
Canada, France, Belgium, Neth-
erlands, and Luxembourg::
3-30 Mar 49. Norway, Italy,
Denmark, Iceland, and. Portugal
added to NATO group;
4 Apr 49. treaty signed;
21 Jul. 49. ratified by US
Senate;
24 Aug 49. ratified by
other nations.
1 SEP. North China People's
Government proclaimed on
Communist radio;
30 Oct. Communist troops
occupy Mukden, win control of
Manchuria;
15 Jan 49. occupy Tientsin;
31 Jan 49. enter Peking.
19 AUG. US denounces Soviet
Consul General activities in
New York;
24 Aug. USSR announces
closing of its consulates in
US, asks same of US in USSR.
2 NOV. Harry S. Truman elect-
ed President, defeating Thomas
E. Dewey (Republican), Henry
A. Wallace (Progressive), and
Strom Thurmond (States'
Rights);
Alben W. Barkley elected
Vice President.
7 NOV. French elections held:
de Gaulle party wins 107 of
:320 council seats, Communists
reduced from 88 to 16 seats.
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Intelligence Community
1 JUL. NSC prescribes charter
for US Communications Intel-
ligence Board (USCIB), in
NSCID No. 9.
AUG. Survey of US internal
security coordination complet-
ed; conducted for NSC by J.
Patrick Coyne (consultant from
FBI) .
Jul-Dec 48
Central Intelligence Agency
1 SEP. Office of Policy Coor-
dination (OPC) established for
15 NOV. Hoover Commission's
Task Force on National Secur-
ity Organization (Headed by
Ferdinand Eberstadt) files
public report of its survey of
NSC agencies, including CIA;
21 Feb 49. Hoover Commission
makes further national secur-
ity recommendations based on
report of Foreign Affairs Task
Force, headed by Harvey H.
Bundy and James Grafton Rogers.
28 Feb 49. Hoover Commission
partially endorses Eberstadt
recommendations.
27 DEC. Capt.
- named acting AD/SO.
31 DEC. ORE Scientific Branch
re-established as separate
Office of Scientific Intelli-
gence, with Dr. Willard Machle
as AD/SI;
14 Feb. OSO's Nuclear
Energy Group transferred to
OSI.
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Jan-Plar 49
25 JAN. USSR announces new
Council for Mutual Economic
Assistance (CEMA, sometimes
abbr. C-OMECON), embracing USSR,
Bulgaria, Czechoslovakia,
Hungary, Poland, and Romania;
11 Feb. Yu4oslavia's exclu-
sion confirmed.
27 JAN. Council of Europe es-
tablished by western foreign
ministers meeting in London;
8 Aug.. Greece and Turkey
added.
FEB. Arrests anf, trials for
espionage and treason in Sovi-
et Bloc:
8 Feb. Cardinal 21indszenty
sentenced in Hungary;
8 Mar. 15 Protestant clergy
sentenced in Bulgaria;
10 Jun. Xoxe and 3 other
ex-ministers sentenced in Al-
bania;
Jun. Hungarian Foreign Min-
ister Lazlo Rajk and others ar-
rested (executed 15 Oct);
13 Nov. Robert A. Vogeler
arrested in Hungary (sen-
tenced Feb 50);
14-16 Dec. ex-Deputy Premier
Kostov and others sentenced
and executed in. Bulgaria.
20 JAN. Pres. Truman's 4-point
program, in inaugural address,
includes technical and finan-
cial aid to economically un-
derdeveloped areas;
24 Jun. program outlined
in message to Congress.
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( 1
Intelligence Community
JAN. NSC membership changes:
Secretary of Treasury Snyder
added;
7 Jan. Dean Acheson suc-
ceeds Marshall as Secretary of
State;
26 Mar. Adm. William D.
Leahy retires as President Tru-
man's Chief of Staff, intelli-
gence briefing duties assumed
by Souers;
28 Mar. Louis A. Johnson
succeeds Forrestal as Secre-
tary of Defense;
10 Aug. Vice President
Barkley added to NSC.
1 JAN. NSC Intelligence
Survey Group (Dulles Commit-
tee) files final. report;
28 Feb. CIA's comments
forwarded;
7 Jul. committee's re-
commendations partially en-
dorsed by NSC. (NSC-50).
MAR. NSC's internal security
coordinating functions reor-
ganized under J. Patrick
Coyne with two interdepart-
mental committees:
Interdepartmental Intel-
ligence Conference (IIC) re-
established under NSC with
members from FBI, Army, Navy,
and Air Force;
Interdepartmental Commit-
tee on Internal Security
(ICIS) established as a new
committee with members from
State, Treasury, Justice, and
the NME, with CIA on an ad
hoc basis.
Jan-Mar 49
Central Intelligence Agency
1 JAN.
Executive Director
25X1A
renamed
Capt.
CIA Executive; A&M Executive
renamed Deputy
25X1A
CIA Executive, responsible for
CIA administrative and support
functions.
18 MAR. Col.
named AD/SO, succeeding
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Mar-Aug 49 (~~
25 APR. German Federal Repub-
lic established at Bonn, draft
constitution signed by West
German and Allied leaders;
23 May. constitution rati-
fied by German states (pro-
claimed 15 Jun);
15 Sep. Konrad Adenauer
elected Chancellor;
9-11 Nov. admitted to Coun-
cil of Europe membership.
12 MAY. Japan's war repara-
tYitans payments terminated;
1-14 Sep. peace treaty sup-
ported by Gen. MacArthur and
Secretary Acheson.
30 JUN. US national security
and international expenditures
in FY 49 increased to $18.9
billion, from $16.3 billion
in FY 48;
US military strength in-
creased to 1.6 million offi-
cers and men, from 1.4 mil-
lion in FY 48.
5 JUL. Adm.-Alan G. Kirk
succeeds Gen. Smith as Ambas-
sador to USSR.
5 AUG. US issues "White Paper"
postmortem report on China's
collapse, announces end of
further aid to Nationalist
combat forces.
10 AUG. National Security Act
amended: NME renamed the De-
partment of Defense, position
of Secretary of Defense
strengthened, Service secre-
taries dropped from NSC mem-
bership, Vice President added,
Chairman of JCS made military
adviser to NSC;
11. Aug. Gen. Omar N. Brad-
ley appointed C/JCS.
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Intelligence Community
20 MAY. Armed Forces Security
Agency (AFSA) established.
1 JUN. National Committee for
Free Europe established,
chaired by Joseph C. Grew.
22 JUL. IAC membership changes:
FBI's representation re-act-
ivated (D. Milton Ladd);
28 Oct. Navy representative,
Adm. Felix L. Johnson (new
D/NI) succeeds Inglis on IAC.
Mar-Aug 49
Central Intelligence Agency
25X1A
Ca
t
17 MAY
.
p
.
25X1A
succeeds Capt.
USN
,
USN, as CIA Ex-
25X1A
ecutive (effective 1 Jun).
20 JUN. CIA Act of 1949 pre-
scribes CIA's personnel, fi-
nancial, procurement, secur-
ity, and related administra-
tive authorities and exemp-
tions.
7 JUL. NSC 50 directs reorgan-
isation within CIA.
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Sep-Dec 49
Global United States
23 SEP. USSR's first nuclear
ex oslosl ion disclosed by Pres.
Truman;
27 Sep. acknowledged by
TASS.
1 OCT. Communist China's
People's Republic proclaimed
in Peking, under Mao Tse-tung
and Chou En-lai;
11 Oct. Chinese Nationalist
government retreats from Can-
ton to Chungking;
30 Nov. to Chengtu;
8 Dec. to Taipei, Formosa;
14 Feb. USSR signs 30-year
mutual aid pact with Communist
China, agrees to $300 million
loan.
7 OCT. German Democratic Re-
public proclaimed in Soviet
zone under Grotewohl and
Pieck;
7 Jun 50. GDR recognizes
Oder-Neisse boundary line in
agreement with Poland.
16 NOV. Shah of Iran visits
US;
30 Dec. joins Pres. Truman
in solidarity statement.
27 DEC. Indonesia's independ-
ence from the Netherlands pro-
claimed at Amsterdam (Sukarno
elected president 16 Dec);
28 Dec. recognized by US.
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cep-Derr 49
Intelligence Community Central Intelligence Agency
28 OCT. Scientific Intelli-
gence Committee (SIC) estab-
lished by IAC under CIA chair-
manship.
15 OCT. CIA's office of Deputy
Director of Central Intelli-
gence (DDCI), vacant since 10
Mar 49, made a statutory po-
sition by Executive Pay Bill
of 49.
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Jan-Feb 50
Global
14 JAN. US consular offices in
Pek ni g seized by Communist
regime.
3 FEB. Dr. Klaus Fuchs, Geer-
man-born British scientist,
detained in London on FBI
tip;
1 Mar. pleads guilty of
atomic espionage for USSR.
14 FEB. USSR signs 30-year
mutual aid pact with Communist
China; agrees to $300 million
loan.
2 JAN. US military protection
of Nationalist China publicly
urged by ex-Pres. Hoover and
Sen. Robert Taft;
5 Jan. rejected by Pres.
Truman ;
12 Jan. Secretary Acheson
warns of Soviet imperialism
in Asia, declares Korea out-
side US "defense perimeter."
19 JAN. Diplomatic boycott of
Spain in ended by US;
27 Dec. base negotiations
and loan of $62.5 million to
Spain and appointment of US
Ambassador (Stanton Griffis).
21 JAN. Alger Hiss convicted
of perjury, having denied in-
volvement in Soviet espionage
in 1937-38.
27 JAN. US military aid ex-
tended to first 8 of 12 NATO
countries.
Mutual defense assistance
agreements signed.
31 JAN. Pres. Truman author-
izes H-bomb development.
10 FEB. US Export-Import Bank
extends $100 million recon-
struction credit to Indonesia;
1 Mar. $20 million to
Yugoslavia;
2 Sep. $150 million to
Mexico.
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Jan-Feb 50
V ViiuiuUi1LLy Central Intelligence Agency
6 JAN. NSC redefines protec-
tion by CIA and community of
intelligence sources and meth-
ods (NSCID Nos. 1.1 and 12);
19 Jan and 3 Mar. assigns
intelligence tasks of exploit-
ing defectors from abroad
(NSCID Nos. 13 and 14).
15 JAN. NSC staff changes:
James S. Lay, Jr., succeeds
Sidney W. Souers as Executive
Secretary.
Souers made Special Con-
sultant to Pres. Truman, and
added to NSC's membership.
17 FEB. IAC's membership
changes: from JCS, Brig. Gen.
Vernon E. Megee, USMC, (new
DD/Intelligence in Joint Staff)
succeeds Gen. Todd.
From FBI, Victor P. Keay
succeeds Ladd as FBI Director's
representative.
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Mar-Jun 50
Global
1.9 MAR. Cuba, Guatemala, and
Dominican Republic cited by
OAS committee for plots and
conspiracies disturbing Car-
ibbean peace;
8 Apr. OAS Council orders
corrective action.
7-r MAR. Judith Coplon (US
ctizen) and Va:Lentin Gubichev
(USSR) convicted of conspiracy
and espionage.
8 APR. US patrol, plane downed
over Baltic;
11 Apr. USSR charges viola-
tion of Soviet territory;
18 Apr. denied by US;
5 May. US condemns USSR.
25 MAY. US-UK-French tripar-
tite declaration on Middle
East supports status quo and
supply of arms both to Israel
and Arab states.
25 JUN. South Korea invaded by
Soviet-organized North Korean
army;
27 Jun. US forces under
General MacArthur committed by
Pres. Truman to repel invasion;
8 Jul. MacArthur redesig-
nated UN commander;
1 Oct. UN forces cross 38th
parallel into North Korea.
27 JUN. Pres. Truman orders
;lth Fleet to neutralize For-
mosa, announces intensified
military aid to Philippines
and Indochina.
30 JUN. US national security
and international expendi-
tures in FY 50 reduced to
$17.6 billion, from $18.9
billion in FY 49.
Military strength declines
in FY 50 to 1.4 mil:Lion offi-
cers and men, from :L.6 million
in FY 49.
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Intelligence Community
Central Intelligence Agency
6 MAR. Dr. H. Marshall Chad-
well succeeds Dr. Machle as
AD/SI.
14 Apr. NSC 68 issued, ad hoc
committee established on US
objectives and programs for
national security.
21 Sep-14 Dec. reports and
directives issued -(NSC 68/1 to
68/4).
25X1A
7 JUN. Dep-
uty Executive, named acting
CIA Executive on departure 25X1A
of succeeded by
16 Oct. 25X1A
28 JUN. NSC meetings taken
over by Pres. Truman;
19 Jul. W. Averell Harri-
man (his Special Assistant
since 16 Jun) added to NSC
membership;
Jul. NSC establishes Senior
Staff to coordinate Korean War
staff work, with represent-
atives from State, DOD, NSRB,
Treasury, JCS, and CIA (DCI),
Marion W. Boggs as Coordina-
tor.
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Jul-Sep 50
4 JUL. Radio Free Europe (RFE)
beams first broadcast to
Soviet bloc countries.
7 AUG. West Germany joins
Council of Europe, meeting at
Strasbourg;
26 Sep. NATO Council, a-
greeing on integrated European
defense command, includes Ger-
man contribution in principle.
23 SEP. McCarran Internal Se-
curity Act passed by Congress
over Pres. Truman's veto.
29 SEP. William C. Foster suc-
ceeds Paul G. Hoffman as ECA
administrator;
4 Oct. Robert A. Lovett
succeeds Stephen T. Early as
Deputy Secretary of Defense.
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Jul-Sep 50
Intelligence Community Central Intelligence Agency
17 JUL. Interagency Defector
Committee (IDC) established by
IAC under CIA chairmanship.
18 AUG. IAC reconvenes, last
meeting chaired by DCI Hillen-
koetter.
12 SEP. NSC membership changes:
Gen. George C. Marshall ap-
pointed Secretary of Defense
to succeed Louis A. Johnson;
12 Oct. DCI Smith replaces
Hillenkoetter;
16 Dec. Charles E. Wilson
appointed head of Office of
Defense Mobilization.
1 JUL. DCI's coordination
staff (ICAPS) renamed Coordin-
ation Operations and Policy
Staff (COAPS), under Prescott
Childs;
Sep. Childs succeeded by
James Q. Reber;
1 Dec. COAPS reorganized
as Office of Intelligence Co-
ordination (OIC), with Reber
as acting AD.
18 AUG. Lt. Gen. Walter B.
Smith appointed by Pres. Tru-
man to succeed R.H. Hillenkoet-
ter as DCI;
21 Aug. William H. Jackson
appointed as Smith's DDCI;
28 Aug. Smith confirmed by
Senate;
7 Oct. sworn in.
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Oct-Dec 50
Global United States
7 OCT. Chinese Communist for-
ces invade Tibet;
Oct. intervene in Korean
war.
NOV. Japan begins rearmament. 1 NOV. Assassination attempted
with creation of quasi-mi.li- on Pres. Truman by two Puerto
tary National Police Reserve Rican nationalists at Blair
to compensate for shift of House.
US forces to Korea.
28 NOV. Greece and Yugoslavia
restore diplomatic ties.
19 DEC. Gen. Dwight D. Eisen-
hower appointed by Pres. Tru-
man to head NATO forces as
Supreme Allied Commander,
Europe, (installed 2 Apr 51
in Paris).
23 DEC. US commits military
aid to Vietnam, Cambodia, and
Laos, in defense agreement
with these countries and
- 38 France.
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Oct-Dec 50
Intelligence Community
20 OCT. IAC reconvenes, first
meeting chaired by new DCI
Smith: Armstrong (State),
Canine (for Irwin, Army), John-
son (Navy), Cabell (Air Force),
Colby (AEC), Megee (JCS), and
Meffert W. Kuhrtz (for Keay,
FBI).
Central Intelligence Agency
13 NOV. CIA's intelligence pro-
duct o offices reorganized:
ORE replaced by Office of Na-
tional Estimates (ONE) under
William L. Langer and Office
of Research and Reports (ORR)
for economic and geographic
intelligence and NIS program,
first under Theodore Babbitt,
then Max F. Millikan,
(4 Jan 51).
Office of Current Intelli-
gence (OCI) established 15 Jan
51 under Kingman Douglass.
OSI remained under Dr.
Chadwell.
7 DEC. Watch Committee (WC)
established by IAC.
1 DEC. Two additional Deputy
Directors established in CIA:
DD/Administration (Murray
McConnel) in charge of admin-
istrative support offices, re-
placing CIA Executive.
DD/Operations' (renamed
DD/Plans, 4 Jan 51) (Allen W.
Dulles) supervising OSO, OPC,
and 00.
13 DEC. DCI's office reor-
ganized: Lyman B. Kirkpatrick
named Smith's Executive Assis-
tant, followed by Joseph
(29 Jun 51)
(29 Nov 51).,
and (Jan 52).
25X1A
25X1A
25X1A
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Jan-Jun 51 11
12 FEB. 14 nations confer on
British-sponsored Colombo Plan
for economic development of
South and Southeast Asia.
18 APR. European Coal and
Steel Community treaty (Schu-
man plan) signed at Paris.
29 APR. Mossadegh takes over
as Iran's prime minister;
30 Apr. Anglo-Iranian Oil
Company nationalized.
25 MAY. British Foreign Office
employees D.D. MacLean and
G.F. Burgess defect to USSR..
6 JAN. Resumption of US mili-
tary aid to Nationalist. China
announced;
20 Apr. increased aid, along
with US Military Advisory
Group, announced.
27 MAR. US and Canada conclude
point civil defense agreement.
4 APR. Senate resolution ap-
proves further US military
buildup (4 divisions) in
western Europe.
10 APR. Gen. MacArthur re-
T
1.ieved of Far East commands
by Pres. Truman; Lt. Gen.
Matthew B. Ridgway named as
his successor;
19 Ap.r..MacArt-hur addresses
Congress in joint. session;
3 May. Senate Armed Ser--
vicEes and Foreign Relations
Committee hold hearings on his
dismissal; concluded 25 Jun.
18 JUN. US and Saudi Arabia
sign defense agreement.
30 JUN. US national security
and international expenditures
increased in FY 51 to y36.1
billion, from $17.6 billion
in FY 50.
Military strength increased
in FY 51 to 3.2 million offi-
cers and enlisted men, from
1.4 million in FY 50.
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1 Jan-Jun 51
Intelligence Community
APR-MAY. CIA given observer
membership on subcommittees
of Interdepartmental Intel-
ligence Conference (IIC), with
FBI agreement;
Nov. ad hoc membership on
IIC reactivated.
MAY. Economic Intelligence
Committee (EIC) established by
IAC.
20 JUN. Psychological Strategy
Board (PSB) established by
Pres. Truman,with Under Sec-
retary of State, Deputy Sec-
retary of Defense, and DCI as
principal members.
22 JUN. NSC re-allocates eco-
nomic intelligence functions
(NSCID No. 15).
AD/SO, - named DAD/SO. 25X1A
25X1A
Central Intelligence Agency
15 FEB. Maj. Gen. W.G. Wyman
succeeds as AD/SO;
1 Jul. Lyman B. Kirkpat-
rick named DAD SO;
17 Dec. named
1 APR. Walter R. Wolf succeeds
McConnel as DD/A.
MAY. Col. Chester B. Hansen
appointed public "CIA
spokesman" and chief of new
Historical Staff;
3 Jul. took over Congres-
sional liaison, assisted by
Walter L. Pforzheimer.
26 JUN. CIA Act of 1949 amend-
ed, liberalizes CIA authority
to employ retired military
officers.
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Jul-Sep 51
10 JUL. Korean armistice nego-
tiations started at Kaeso:ng;
26 Jul. truce agenda agreed
on;
23 Aug. first Communist
break-off of negotiations.
30 AUG. Philippines--US mutual
defense treaty signed in Wash-
ington;
.1 Sep. ANZUS treaty with
Australia and New Zealand
signed in San Francisco;
30 Mar. both treaties
ratified by US Senate.
8 SEP. Japanese peace treaty
signed by 49 nations at San,
Francisco, US-Japan. security
treaty also signed;
20 Mar. US Senate ratifies
treaties.
15 SEP. Greece and Turkey join
NATO, enlarging Allied defense
system to 14 nations.
23 AUG. US and Israel sign
treaty of friendship, commerce,
and navigation.
7 SEP. US and Ethiopia sign
economic-aid treaty.
11 SEP. Deputy Secretary Rob-
ert A. Lovett named Secretary
of Defense succeeding Gen.
Marshall;
24 Sep. William C. Foster
succeeds Lovett as Deputy
Secretary.
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Intelligence Community
JUL. Interagency Priorities
Committee (IPC) for secret col-
lection requirements establish-
ed by IAC.
JUL. IAC's membership changes:
from JCS, Brig. Gen. R.C.
Partridge succeeds Megee; from
Air Force, Maj. Gen. John A.
Samford succeeds Cabell (Nov).
AUG. Bureau of the Budget
gains membership on NSC Sen-
ior Staff.
Central Intelligence Agency
3 JUL. CIA Career Corps plan
scatted to DCI Smith by
Matthew Baird, Director of
Training;
Sep. Career Service Com-
mittee established under DD/A.
17 Sep. DCI endorses report,
but rejects "small elite
corps", favors eventually in-
cluding "all personnel in CIA,
except clerical personnel, on
a career basis".
9 JUL. Western Hemisphere
Dili ion (WH) established in
DD/P as first combined OSO-OPC
area division;
9 Oct. Near East/Africa
Division (NEA) established;
5 Jan 52. area division
mergers completed.
23 AUG. Allen W. Dulles, DD/P,
succeeds William H. Jackson as
DDCI. (Jackson named as DCI's
Special Assistant and Senior
Consultant, continued on DCI's
executive committee.)
Frank G. Wisner (AD/Policy
Coordination) succeeds Dulles
as DD/P, Wisner in turn replac-
ed by Kilbourne Johnston in
OPC.
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United States
10 OCT. Mutual Security Act
signed combining US economic
and military aid. into coordin-
ated 3-year, world-wide anti-
Communist program (W. Averell
Harriman, Director);
31 Oct. $7.33 billion ap-
propriation signed.
25 OCT. Conservatives win in
British elections;
26 Oct. Winston Churchill
returns to power as Prime Min-
ister;
27 Oct. Anthony Eden named
Foreign Secretary?
NOV-DEC. Espionage cases sur-
faced in Eastern Europe:
(1) 20 Nov. US transport
plane downed in Hungary;
2 Dec. denounced by
USSR as "spy carrier";
23 Dec. fliers sen-
tenced then released as US
pays fines, closes two
Hungarian consulates, and bans
travel to Hungary;
(2) 27 Nov. announcement
of Czech Vice Premier Rudolph
Slansky's arrest: for espionage;
(3) 11 Dec. Romania charges
US parachuted two saboteurs in
Oct;
20 Dec. denied by US,,
14 NOV. US and Yugoslavia
sign military aid agreement.
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Oct-Dec 51
Intelligence Community Central Intelligence Agency
23 OCT. NSC defines "scope and
pace" of covert operations in
NSC 10/5.
31 DEC. Raymond B. Allen suc-
ceeds Gordon Gray as PSB
staff director.
28 DEC. Col. L.K. White named
Asst. DD/A under Wolf, effec-
tive 1 Jan 52.
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Jan-Apr 52
Global
5 JAN. India and US sign
5-year technical assistance
agreement.
FEB-JUN. US-Latin-.American
military assistance agreements
concluded: Brazil (15 Feb),
Ecuador (20 Feb), Peru (22 Feb),
Cuba (7 Mar) , Chile (9 Apr) ,
Colombia (17 Apr), and Uruguay
(3 0 Jun).
20 FEB. NATO Council, meeting
in Lisbon, agrees on rearmament
goal of 50 divisions in West-
ern Europe in 1952.
18 JAN. US foreign information
programs reorganized in State
Department as the Internation-
al Information Administration
(IIA), under Dr. Wilson Comp-
ton.
28 FEB. US and Japan sign base
agreement, supplementing 1951
treaty.
12 APR. Gen. Eisenhower resigns
as Supreme Allied Commander,
Europe, effective 1 Jun;
28 Apr. Gen. Matthew B.
Ridgway appointed his succes-
sor.
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Intelligence Community Central Intelligence Agency
1 JAN. DCA's executive commit-
tee expanded:
Loftus E. Becker named Dep-
uty Director (Intelligence)
(DD/I) with supervision over
ONE, OCI, ORR, OSI, OCD, OIC
(1 Mar. 00 added from DD/P).
Stuart Hedden named In-
spector General (IG).
succeeds
Becker as DCA's Exec. Asst.;
Col. L.K. White, new A/DDA.
12 JAN. Information security
subcommittee, headed by Edward
R. Trapnell, established under
NSC's Interdepartmental Commit-
tee on Internal Security (ICIS).
7 FEB. David K.E. Bruce suc-
ceeds James E. Webb as Under
Secretary of State.
1 MAR. Center for Internation-
al Studies (CENIS), headed by
Dr. Max F. Millikan, estab-
lished at M.I.T.
2 APR. George F. Kennan suc-
cee.3s Adm. Alan G. Kirk as
Ambassador to USSR;
3 Oct. declared PNG by USSR.
3 JAN. Dr. Sherman Kent suc-
ceeds Dr. Langer as AD/NE and
Chairman of Board of National
Estimates.
25 MAR. Security Office and
CIA's security policies re-
viewed by J. Patrick Coyne
(NSC staff) for DCI and IG,
report filed Aug 52.
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My-Aug 52
15 MAY. Ethiopia-US technical
assistance agreement signed.
27 MAY. European Defense Com-
mon y treaties and agreements
signed in Paris.
23 JUL. Egypt taken over by
Naguib in military coup;
26 Jul. King Farouk abdi-
cates;
7 Sep. Naguib assumes pre-
miership;
9 Dec. constitution dis-
solved.
1 MAY. American travel to
Commmunist-dominated countries
banned by State Department.
30 JUN. US national security
and international. expendi-
tures increased in FY 52 to
$46.8 billion, from $36.1
billion in FY 51.
Military strength increased
to 3.6 million officers and
enlisted men, from 3.2 million
in FY 51.
20 AUG. USSR announces .5-year
plan, providing 70%, increase
in industrial production.
23 AUG. Arab League: security
pact ratified by Egypt, Syria,
Iraq, Jordan, and Saudi Arabia.
30 AUG. Iranian oil settlement
proposed by US and UK;
24 Sep. rejected by
Mossadegh;
1.6 Oct. Iran breaks rela-
tions with UK.
27 AUG, 3 SEP. Ex--Ambassador
o nn Foster Dulles, adviser to
Pres. candidate Eisenhower,
urges "peaceful liberation" of
USSR's Eastern European satel-
lites and rollback: of Communist
power, rejects co-existence and
containment.
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Intelligence Community
MAY. IAC membership changes:
for Army--Brig. Gen. John
Weckerling succeeds Bolling;
Jul. Col. C.B. Cover-
dale succeeds Weckerling;
Aug. Maj. Gen. R.C.
Partridge succeeds Coverdale.
for JCS--Aug., Brig. Gen.
Edward H. Porter succeeds Part-
ridge.
for Navy--Jun., Rear Adm.
Richard F. Stout succeeds John-
son;
Dec. Rear Adm. Carl F. Espe
succeeds Stout.
25 JUL. IAC establishes Intel-
lig ncee Working Group (IWG)
for economic defense intel-
ligence to support NSC's
Economic Defense Advisory Com-
mittee `(EDAC).
AUG. Adm. Alan G. Kirk suc-
ceeds Raymond B. Allen as PSB
director.
14 AUG. IAC establishes Scien-
.if c-Estimates Committee (SEC),
replacing the Scientific In-
telligence Committee (SIC),
and reconstitutes Joint Atomic
Energy Intelligence Committee
(JAEIC) as a permanent stand-
ing committee of IAC.
May-Aug 52
Central Intelligence Agency
9 JUN. DCI Smith's executive
committee renamed deputies
meeting.
28 Aug. (new
Chief of FI Staff and acting
Chief of operations) added
to committee.
1 AUG. DD/P activities re-
named Clandestine Services
(CS); merger of OSO and OPC
headquarters staffs completed,
renamed Foreign Intelligence
(FI), Political andPsycholog-
ical Warfare (PP), Paramili-
tary Operations (PM), Tech-
nical Services (TSS), Plans
and Program Coordination
(PPC), Inspection, Review,
and Analysis (IRA), and Ad-
ministration.
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Sep-Dec 52
2 OCT. UK explodes its first
atomic bomb off Australian
coast, joins US-USSR "nuclear
club."
15 OCT. Japan strengthens se-
curity forces, establishes Na-
tional Safety Corps and Mari-
time Safety Corps.
31 OCT. Bolivia nationalizes
three largest foreign-owned
tin mines.
1 NOV. US detonates first
hydrogen bomb, at Eniwetok
Atoll.
4 NOV_. Gen. Dwight: D. Eisen-
hower and Sen. Richard M. Nixon
elected President and Vice
President, defeating Democra-
tic candidates Adiai Stevenson
and John J. Sparkman; inaugur-
ated 20 Jan 53.
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Intelligence Community
20 NOV. NSC appointments an-
nounced by President-Elect
Eisenhower: J. Foster Dulles
named Secretary of State and
Charles E. Wilson Secretary
of Defense;
28 Dec. Robert Cutler named
President's Administrative As-
sistant, directed to survey NSC
organization and procedure
(report approved 17 Mar 53).
Central Intelligence Agency
29 SEP. Weekly intelligence
reporting to presidential can-
didates by CIA disclosed;
Nov. National Intelligence
Digest (NID) compiled for
President-Elect.
29 SEP. DCI Smith, testifying
T n -McCarthy-Benton libel suit,
declares belief in security
assumption that "there are
Communists in my own organiza-
tion," as in "practically
every security agency of the
Government";
13 Oct. amends views, tells
House committee that "I have
found no penetration of Com-
munists in ray organization in
the US," but that overseas,
"in the past we have from
time to time discovered one
or two in our ranks."
7 OCT. Col. Stanley J. Grogan
succeeds Col. Chester B. Hansen
as public "CIA spokesman" and
Historical Staff chief.
2 NOV. Photo Intelligence
Div sion established in. CIA,
assigned to ORR Geographical
Research Area.
21 NOV. Pres. Truman's fare-
well address to CIA employees.
29 DEC. DCI made permanent
chairman of US Communications
Intelligence Board.
Armed Forces Security Agen-
cy (AFSA) reorganized as Na-
tional Security Agency (NSA).
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Global United States
27 JAN. British Canberra bomb-
er achieves less--than-a-day
flight from London to Austral-
ia (22 hours).
2' FEB. US Fleet's neutraliza-
tion of Taiwan ended.
28 FEB. Yugoslavia military
collaboration agreements with
Greece and Turkey signed.
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Intelligence Community
24 JAN. President's Committee
of International Information
Activities established, with
William H. Jackson as chair-
man and Abbot Washburn as Ex-
ecutive Secretar ;
30 Jun. report filed;
8 Jul. summary of recom-
mendations published.
29 JAN. Pres. Eisenhower's
NSC convenes for first time.
Secretary of Treasury
George M. Humphrey and Budget
Director Joseph M. Dodge added
to NSC.
FEB. IAC membership changes
under DCI,IDulles' chairman-
ship.
from JCS, Col. Samuel M.
Lansing (alt. for Brig. Gen.
Edward H. Porter);
Sep. from AEC, Charles C.
Reichardt;
Nov. from Army, Maj. Gen.
Arthur G. Trudeau.
16 FEB. C.D. Jackson named
Pres. Eisenhower's Special
Assistant for Cold War Plan-
ning.
2-4 FEB. Dr. Robert L. Johnson
succeeds Dr. Compton as head
of IIA.
27 FEB. Charles E. Bohlen
appointed Ambassador to USSR;
27 Mar. confirmed by Senate.
Jan-Feb 53
Central Intelligence Agency
24 JAN. Allen W. Dulles, DDCI,
succeeds Walter B. Smith as
DCI; appointment by Pres.
Eisenhower announced;
10 Feb. submitted to Senate;
23 Feb. confirmed by Senate;
26 Feb. sworn in.
24 JAN. Lt. Gen. C.P. Cabell,
head of JCS Joint Staff, named
by Pres. Eisenhower to succeed
Dulles as DDCI;
4 Apr. DDCI position re-
established by National Secur-
ity Act amendment, permitting
either a military or civilian
appointee but prohibiting both
DCI and DDCI positions to be
occupied simultaneously by
commissioned officers;
10 Apr. Cabell's nomination
submitted to Senate and
approved;
23 Apr. Cabell sworn in.
FEB. DCI Dulles continues
Smith's deputies meeting as
Executive Committee:
DD/A Wolf, Asst. DD/A White,
DD/P Wisner, and C/OPS
1 May. DD/I Becker replaced
by Robert Amory, Jr.;
30 Mar. Lyman B. Kirkpatrick
named IG;
6 Mar. , O/DD/P;
21 Apr. Huntington Sheldon,
OCI Director;
23 A r. DDCI Cabell, John
.(continued as DCI's
Executive Assistant.)
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Mar-May 53
Global United States
5 MAR. Stalin dies;
6 Mar. Soviet leadership 6 MAR. US and Dominican Repub-
passes to Malenkov; lic ;,sign defense agreement.
Deputy chairmen: Molotov,
Beria, Bulganin, and Kagan-
ovich, with Voroshilov heading-
presidium;
20 Mar. Khrushchev, new
presidium member, replaces
Malenkov as Communist Party
first secretary.
27 MAR. NIKE guided-missile
28 MAR. Libya joins Arab batteries for US air defense
League; announced;
30 Jul. signs base rights 17 Dec. first battery, at
and economic aid agreement. Fort. Meade, announced.
with UK.
10 APR. Dag Hammardkjold
Sweden) succeeds Lie as UN
Secretary General.
15 MAY. Czechs pardon William
N. Oatis, imprisoned in 1951
for alleged espionage activi-
ties.
22 MAY. US and Ethiopia sign
defense treaty.
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Intelligence Community
7 MAR. IAC establishes Adviso-
ry Committee on Foreign Lan-
guage Publications, chartered
by NSC (NSCID No. 16), with CIA
chairman and secretariat.
15 MAR. Air Force advisory com-
mittee on air defense (Project
Lincoln), chaired by Dr. James
R. Killian, Jr., issues public
report on US vulnerability to
surprise attack.
17 MAR. Vice President Nixon
named vice chairman of NSC.
17 MAR. NSC Senior Staff
redesignated Planning Board,
DCI represented by DD/I.
Robert Cutler named NSC
Executive Officer.
6 APR. Arthur S. Flemming ap-
pointed Director of Defense
Mobilization;
11 Jun. National Security
Resources Board (NSPB) re-
placed by Office of Defense
Mobilization (ODM), headed by
Flemming.
27 APR. National security
standards for government em-
ployment revised, replacing
executive order of 21 Mar 47.
12 MAY. Adm. Arthur W. Radford
appointed JCS chairman, suc-
ceeding Gen. Bradley;
2 Jun. confirmed by Senate;
15 Aug. took office.
Mar-May 5
Central Intelligence Agency
17 MAR. DCI Dulles defends
security and integrity of CIA
personnel before Senator
Joseph McCarthy's subcommittee.
Again, 16 Jul to 3 Aug in
subsequent correspondence with 25X1A
McCarth regarding
and Alger Hiss. 25X1A
1 APR. Lyman B. Kirkpatrick
succeeds Stuart Hedden as In-
spector General;
24 Apr. named chairman of
new CIA Career Service Board.
25 May. CIA's career ser-
vice divided initially into 21
occupational-organizational
groups.
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Tun-A g 53
16 JUN. East Berlin labor riots
against government's new pro-
ductivity orders;
17 Jun-12 Jul. Soviet mili-
tary forces intervene.
10 JUL. Beria's dismissal and
arrest on treason charges an-
nounced in USSR;
23 Dec. executed with 6
associates.
11 JUL. Gen. Alfred M.
Gruenther (US) succeeds Gen.
Ridgway as Supreme Allied Com-
mander, Europe.
26 JUL. National Liberation
party in Costa Rica, under
Jose Figueres, wins in presi-
dential and congressional
elections.
27 JUL. Korean armistice agree-
ment signed at Panmunjon.
8 AUG. USSR announces achieve-
ment of hydrogen bomb;
12 Aug. bomb exploded;
20 Aug. announced.
15 AUG. Mossadegh dismissed
by Shah of Iran, replaced by
Zahedi;
20 Aug. Mossad.egh arrested;
8 Nov-21 Dec. tried and
sentenced for treason.
19 JUN. Julius and Ethel
Rosenberg, convicted spies,
executed at Sing Sing.
30 JUN. US national security
and international expenditures
increased in FY 53 to $52.5
billion, from $46.8 billion
in FY 52.
US military strength down
to :3.5 million officers and
enlisted men, from 3.6 million
in FY 52.
15 JUL. US and Japan begin
seciTrity agreement negotia-
tions (agreement signed 8 Mar
54).
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Intelligence Community
20-23 JUL. Congresssional joint
"watchdog" committee for CIA
and US Intelligence proposed
in resolutions by Sen. Mike
Mansfield and Rep. Edna Kelly.
Tun-Aug 5'1
Central Intelligence Agency
1 JUL. Col. L.K. White suc-
cee s Wolf as acting DD/A
(named DD/A 21 May 54).
9 JUL. CIA rejects Sen.
McCarthy's subpena demands,
notifying him that "the policy
of the CIA was to refuse to
allow any employee to appear
before any Congressional
committee."
AUG. Committee on Manpower Re-
sources for National Security,
established by ODM, chaired
by Lawrence A. Appley;
9 Jan. report published.
1 AUG. US Information Agency
(USIA), headed by Theodore C.
Streibert, replaces State's
IIA.
6 AUG. Foreign Operations
Administration (FOA) replaces
MSA for economic aid programs;
Harold Stassen continued-as
NSC member.
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Global United States
12 SEP. Khrushchev named USSR
Communist Party first secre-
tary of Central Committee.
26 SEP. US air and naval base
right's established in Spain
along with US economic and
military aid to Spain.
1 OCT. US and South Korea sign
mutual security treaty.
6 OCT-14 DEC. Vice Pres. Nixon
visits 19 nations in Far East
and Middle East.
12 OCT. US-Greek agreement on
naval and air bases signed.
7 NOV-10 DEC. US airlifts
Chinese Nationalist troops
from Burma to Taiwan.
4-7 DEC. US, UK, and French
summit meeting in Bermuda.
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Sap-Dec 53
Intelligence Community Central Intelligence Agency
3 SEP. Operations Coordinating
Board (OCB) replaces PSB; mem-
bers include Under Secretary
of State Walter B. Smith (chair-
man), C.D. Jackson (as
President's representative),
DOD, FOA, and CIAlrepresenta-
tives.(DCI Dulles, assisted
9 SEP. Guided missiles devel-
opment coordinating committee
established in DOD, headed by
Trevor Gardner.
6 OCT. Survey committee on
community's watch system es-
tablished by IAC (report filed
26 Apr 54).
13-14 OCT. NSC criticism of US
military budgets disclosed,
re-review by JCS undertaken.
5 NOV. Security regulations for
classification and safeguarding
of 21.nformation recodified by
executive order.
14 DEC. DCI Dulles joins
briefings of Mayor's Conference
on National Defense in
Washington.
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Jan-Mar 54
Global
JAN-APR. Defectors from USSR
request political asylum
abroad:
24 Jan. Ras tovorov , in
Japan;
20 Feb. Khokhlov, in Frank-
furt;
13 Apr. Petrov, in Austra-
lia.
7 JAN. Pres. Eisenhower an-
nounces US "massive retalia-
tion" defense strategy;
12 Jan. amplified in. speech
by Secretary Dulles.
21 JAN. Nautilus, first atomic-
powered submar ne,launched at
Groton, Conn;
30 Sep. commissioned..
25 FEB. Nasser takes over
Egypt;
27 Feb. Naguib restored;
17 Apr. Naguib ousted
again.
13 MAR-7 MAY. Viet-Minh forces
in massive assault overcome
French-held Dienbienphu;
1 Apr. invade Cambodia.
10 FEB. Strategic Missile
Evaluation Committee, chaired
by AEC commissioner Dr. John
von Neumann, recommends ICBM
with nuclear warhead;
21 Jun. Atlas development
assigned to Air Research and
Development Command (Brig.
Gen. B.A. Schriever).
26 FEB. Sen. John W. Bricker's
constitutional amendment, re-
quiring Senate approval of US
Executive's foreign agreements,
defeated in Senate, 60-31.
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Jan-Mar 54
Central Intelligence Agency
JAN. Supergrade Review Board
reestablished, under DDCI
Cabell's chairmanship.
1 FEB.
named DCI Dulles' Special As-
sistant for Planning and Coor-
dination and member of his
deputies meeting;
1 Jul. joined by J.Q. Reber
when OIC was liquidated, ab-
sorbed OIC's community coor-
dination staff functions ex-
cept IAC secretariat, which
was transferred to DDI/ONE.
MAR. Congressional leaders
resume criticism of CIA:
Sen. Mike Mansfield publishes
details of alleged intelli-
gence and operational errors,
and calls again for a joint
"watchdog" committee;
2 Jun. Sen. Joseph McCarthy
charges CIA. infiltrated by
Communists;
23 Jun. Rep. Peter
Frelinghuysen, Jr., proposes
a Presidential commission on
foreign intelligence.
1 MAR. Civil Service Commis-
sion discloses 48 separations
from CIA as security risks;
11 Oct. further separations
reported, totaling 75 for CIA
out of US total
of
6,926
security risks
(for
period
28 May 53 to 30
Jun
54).
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Mar-May 54
2 APR. Pakistan and Turkey
sign defense agreement;
19 May. US and Pakistan
sign defense agreement.
10 APR. Iranian petroleum
consortium agreement signed
by eight French, Dutch., British,
and US companies.
5 Aug. agreement with :Iran
announced.
8 MAR. US and Japan sign de-
fense and economic agreements.
19 MAR. US discloses "atoms
for peace" plan, including
proposal for International
Atomic Energy Agency.
8 APR. US and Canada announce
point radar defense plans;
27 Sep. agreement announced
on construction of Distant
Early Warning (DEW) line.
25 APR. US and Iraq announce
defense agreement.
29 APR. India and Communist
Ch-i sign agreement on
Chinese control of Tibet and
"peaceful coexistence";
26-28 Jun. Chou En-Lai
visits India;
19-30 Oct. Nehru visits
China.
5 MAY. Czechoslovakia protests
US propaganda balloons;
15 Oct. Hungary also pro-
tests balloons.
13 MAY-22 JUN. UN 5-power dis-
armament subcommittee holds 19
meetings in London on inspec-
tion system, methods of pre-
venting surprise attack, and
ban on nuclear testing.
17 MAY. State Department dis-
closes Soviet Bloc arms ship-
ments to Guatemala.
20-21 MAY. US signs military
agreements with Honduras and
Nicaragua..
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Intelligence Community
15 MAR. NSC 5412 reaffirms
CIA's action responsi-
bilities in consultation with
OCB and departmental represent-
atives.
Central Intelligence Agency
19 MAR. DCI Dulles, in first
press interview as DCI, crit-
icizes press and US Govern-
ment, "We Tell Russia Too
Much," (U.S. News and World
Report.)
1 MAY. Watch Committee recon-
stituted under CIA chairman-
ship by IAC;
Jul. National Indications
Center (NIC) activated as
community supporting staff.
3 MAY. Robert B. Anderson
succeeds Roger M. Kyes as
Deputy Secretary of Defense
and OCB member.
18 MAY. State Department per-
sonnel advisory committee
(Henry M. Wriston, chairman)
files report, recommends in-
tegration of Departmental and
Foreign Service personnel.
26 APR.
app io nted Assistant DD/P for
PP and PM activities, and
member of DCI's executive com-
mittee (first as - alter- 25X1A
nate, then regularly starting
in Aug.)
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Jun-Aug 54 ~~.?lC.:
2 JUN. Japan's Self-Defense
Force (JSDF) established.
18-29 JUN. Guatemala's pro-
Communist government (Jacobo
Arbenz GuzmAn) overthrown by
insurgent forces from Honduras
under Col. Carlos Castillo
Armas ;
10 Oct. Castillo Armas
elected president.
20?-21 JUL. Indochina armistice
agreements for Vietnam (parti-
tioned at 17th parallel), Laos,
and Cambodia, signed at Geneva
Cori ference .
United States
25 JUN. US Senate resolution
condemns Communist interfer-
ence in Western Hemisphere.
30 JUN. US national security
and international expenditures
reduced to $48.6 billion in
FY 54, from $52.5 billion in
FY 53.
US military strength down
to 3.3 million officers and
enlisted men, from 3.5 million
in FY 53.
5 JUL. US expels three Soviet
embassy aides for espionage.
10 JUL. Agricultural Trade De-
velopment and Assistance Act
approved, including "Food for
Peace" program.
20 JUL. Dr. Otto John, head of
West Germany's Federal Office
for the Protection of the Con-
stitution, defects to East
Germany.
9 AUG. Balkan alliance signed
at Bled by Greece, Turkey, and
Yugoslavia.
26 AUG. Mutual Security Act
re-affirms and extends anti-
Communist programs.
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Intelligence Community Central Intelligence Agency
9 JUN. International Organiza-
tions Division (10) activated
in DD/P.
4-8 JUL. Two investigating
committees on CIA and US in-
telligence established to meet
Congressional criticism:
Task force under Gen. Mark
Clark established by Hoover
Commission on the Organization
of the Executive Branch;
Study Group under Lt. Gen.
James A. Doolittle, announced
by Pres. Eisenhower;
30 Sep. Doolittle Group
report filed (summary of find-
ings disclosed by White House,
16 Oct)..
3 AUG. CIA Career Service es-
tab .il shed .
10 AUG. IAC membership changes:
from Joint Staff, Rear Adm.
Edward T. Layton succeeds Gen.
Porter;
from AEC, Harry S. Traynor
succeeds Colby.
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Sep-Dec 54
3-6 EP. Quemoy and Matsu bom-
barded by Communist China.
8 SEP."Southeast Asia Treaty
Organization (SEATO) defense
treaty signed at Manila by 'US,
UK, France, Australia, N.Z.,
P.I., Thailand, and Pakistan;
four "neutralist" stages ab-
stained, India, Indonesia,
Burma, and Ceylon.
3 OCT. Western European Union
WEU established, West German
sovereignty and rearmament
agreements signed in London by
Allied foreign ministers;
23 Oct. Protocols signed in
Paris admitting Germany to NATO
and terminating Allied occupa-
tion regimes;
29 Oct. US and Germany sign
bilateral treaty.
4 SEP. US Navy P2V patrol
plane downed by USSR over Sea
of Japan;
7 Nov. USAF RB-29 recon-
naissance plane downed off
northern Japan.
9 SEP. US and Libya sign
agreement on economic aid and
military bases.
28 SEP. US requests repatri-
at:~ no of Field family (Noel,
Herta, and Hermann Field) from
Hungary and Poland, imprisoned
since 1949;
16 Nov. release accomplish-
ed?
1 NOV. Algerian war begins.
2 DEC. US and Nationalist
China sign mutual defense
treaty.
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Intelligence Community
4 OCT. Herbert Hoover, Jr.,
succeeds Walter B. Smith as
Under Secretary of State and
OCB chairman;
Dec. Nelson A. Rockefeller
appointed as Pres. Eisenhower's
.Special Assistant for Cold War
Planning and OCB representa-
tive.
8 OCT. Technological Capabil-
it Panel (TCP) , chaired by
Dr. James R. Killian, Jr., es-
tablished by Office of Defense
Mobilization.
11 DEC. Council on Foreign
Economic Policy, under Joseph
M. Dodge, established to
coordinate US Government's
foreign economic planning.
Sep-Dec 54
Central Intelligence Agency
'DEC. Prototype of U-2 high-
at titude photo-reconnaissance
aircraft achieved (first test
flight Aug 55).
19 DEC. House committee, under
B. Carroll Reece, concludes
investigation of foundations, 20 DEC. Counterintelligence
criticizes undue influence in Staff (CI) activated in DD/P.
US foreign information and re-
search programs.
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Jan-May 55
8 FEB. Bulganin replaces Mal-
enkov as USSR chairman;
9 Feb. Zhukov becomes de-
fense minister.
24 FEB. Baghdad pact signed
by Turkey and Iraq;
5 Apr. UK accedes;
23 Sep. Pakistan;
25 Oct. Iran;
21-22 Nov. Council holds
first meetings, with IJS ob-
servers present.
5-7 APR. Winston Churchill
resigns as Prime Minister,
succeeded by Anthony Eden;
Harold Macmillan succeeds
Eden as Foreign Secretary;
20 Dec. Macmillan succeeded
by Selwyn Lloyd.
17 APR. Afro-Asian conference
at Bandung opens.
14 MAY. Warsaw Pact signed,
establishing Soviet Bloc al-
liance and military command
organization, including USSR,
East Germany, Poland, Hungary,
Bulgaria, Czechoslovakia, Ro-
mania, and Albania.
28 JAN. Military defense of
Formosa Strait area authorized
by Congress in joint resolu-
tion;
29 Jan. approved by Pres.
Eisenhower;
5-11 Feb. Tachen Islands
evacuated with 7th Fleet as-
sistance.
12 FEB. South Vietnamese
army training taken over from
French by US Military Assis-
tance Advisory Group (P1AAG).
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Intelligence Community
JAN. 24-hour watch established
in National Indications Center.
28 FEB. US Information Agency
USIA added to OCB membership.
12 MAR. Planning and Coordina-
tio Group (PCG) established
in OCB as coordination channel
for covert actions,-by NSC
5412/1.
19 MAR. Harold E. Stassen ap-
pointed Pres. Eisenhower's
Special Assistant on Disarma-
ment.
APR. Dillon Anderson succeeds
Robert Cutler as Pres. Eisen-
hower's Special Assistant for
National Security Affairs and
NSC executive officer.
10 MAY. Clark Task Force re-
port filed;
29 Jun. submitted to
Congress in summary form.
Jan-May 55
Central Intelligence Agency
FEB. CIA Scientific Advisory
Board established by DCI, un-
der chairmanship of I
with secretariat under
3 FEB. DD/A directorate expand-
ed and renamed DD/Support, to
include Offices of Training
and Communications and a
special administrative staff
for servicing DD/P activities.
Col. White continues as
DD/S.
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1.5 MAY. Austria State Treaty
signe ;
27 Jul. sovereignty restor-
ed;
14 Oct. end of four-power
occupation completed, with de-
parture of US forces.
30 JUN. US and West Germany
sign mutual defense agreement
effective 27 Dec.
30 JUN. US national security
andinternational expenditures
reduced in FY 55 to $42.8
billion from $48.6 billion in
FY 54.
Military strength down to
2.9 million officers and en-
listed men, from 3.3 million
in FY 54.
18-23 JUL. Big-Four summit
conference at Geneva (Eisen-
hower, Bulganin, Eden, Faure).
Eisenhower proposes "open
skies" armament control, with
US/USSR mutual aerial inspect-
ion and exchange of military
blueprints;
16 Dec. his proposal ap-
proved by UN General Assembly.
29 JUL. US reveals earth sat:-
el l e plan for International
Geophysical Year (IGY) in
1957;
30 Jul. USSR announces
s:Wmilar plan.
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Intelligence Community
17 MAY. Senate committee
chaired by Sen. Richard
Russell begins. investigation
of alleged US-USSR bomber gap.
19 MAY. IAC esta3lishes Ad
Hoc Coittee on Information
Processing (AHIP), with
CIA/OCD chairman and secretar-
iat.
30 JUN. US aerial reconnais-
sance over Sino-Soviet Bloc
areas in FY.55 "substantially
increased" over FY 54.
JUL. IAC membership changes:
22 Jul. from FBI, Alan H.
Belmont succeeds L.V. Boardman;
23 Aug. from Army, Maj.
Gen. Ridgely Gaither succeeds
Gen. Trudeau.
1 JUL. International Coopera-
tion Administration (ICA) es-
tablished within State Depart-
ment, replaces independent FOA
and is dropped from NSC member-
ship.
19 JUL. Survey committee on
co ity's guided missiles
intelligence assets ordered by
IAC, under CIA chairmanship;
25 Nov. report filed.
May-Jul 55
Central Intelligence Agency
28 JUN. Dr. H. Marshall Chad-
well appointed as CIA's new
Senior Scientific Represent-
ative abroad;
8 Aug. Chadwell replaced
in OSI by Dr. Herbert Scoville,
Jr., from DOD's Armed Forces
Special Weapons Project.
15 JUL. Construction of new
headquarters installation at
Langley authorized by
Congress, for $46 million;
CIA's temporary buildings
ordered demolished when
vacated.
27 JUL. DCI Dulles' executive
committee enlarged by addition
of Special Assistant, Lt. Gen.
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Global United States
8-1.3 SEP. Adenauer visits
Moscow; West Germany and USSR
establish diplomatic rela-
tions.
15 SEP. Cyprus bans EOKA
terrorists.
24 SEP. Pres. Eisenhower suf-
fers a coronary thrombosis.
18 NOV-19 DEC. India, Burma,
and Afghanistan visited by
Soviet leaders Bulganin and
Khrushchev, economic aid
agreements negotiated.
14 DEC. 16 states admitted
to UN membership from Eastern
and Western Europe, Middle
East, Asia, and Africa (total
76 states).
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Intelligence Community
5 AUG. Reuben B. Robertson,
Jr., succeeds Anderson as De-
puty Secretary of Defense and
OCB member.
Aug-Dec 55
Central Intelligence Agency
AUG. DD/I directorate reorgan-
ized;
1 Aug. ORR's Basic Intelli-
gence Division reconstituted
as a separate Office of Basic
Intelligence (OBI);
12 Aug. OCD renamed Office
of Central Reference (OCR).
SEP. Studies in Intelligence
established in OTR, C.M.
editor, Dr.
Sherman Kent, editorial
board chairman.
26 SEP. Attorney General
Herbert Brownell, Jr., joins
NSC as regular member;
3 Oct. Vice Pres. Nixon
requested by Pres. Eisenhower
to continue holding NSC meet-
ings;
20 Nov. Pres. Eisenhower
holds first NSC meeting since
his illness, at Camp David.
8 NOV. Intermediate-range bal-
listic missile (IRBM) program
assigned to Air Force in coor-
dination with Army and Navy;
17 Nov. Rear Adm. W.F. Ra-
born, Jr., named Navy Coordin-
ator.
28 DEC. "5412/2 Designated
Representatives (Special
Group)" established by NSC
for coordinating covert
actions.
1 DEC. CIA's Congressional
relations transferred to IG's
supervision;
2 Nov. Norman S. Paul
succeeds Walter Pforzheimer
as Legislative Counsel;
Jan 56. IG also made re-
sponsible for liaison with
President Eisenhower's new
intelligence consultants'
board and for supervising
DCI's public affairs office.
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CIA Internal Use Only
Secret
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CIA Internal Use Only
Access Controlled by CIA HistoricaZ Staff
THE DCI HISTORICAL SERIES
CIA SUPPORT FUNCTIONS:
ORGANIZATION AND ACCOMPLISHMENTS OF THE DDA-DDS GROUP
1953-56
VOLUME I (CHAPTERS I AND II)
by
HISTORICAL STAFF
CENTRAL INTELLIGENCE AGENCY
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CIA SUPPORT FUNCTIONS:
ORGANIZATION AND ACCOMPLISHMENTS OF THE DDA/DDS GROUP,
1953-1956
by DCI/HS
Table of Contents
1. Overall Management Matters. . . . . . . . . . . . 1
A. Scope of Support Activities 1953-1956 . . . . 1
B. Management Advice and Inspection in Agency 7
as a Whole . . . . . . . . . . . . . . . .
C. General Direction of Support Services . . . . 14
Deputy Director . . . . . . . . . . . . . . . 17
Special Administrative Support for DD/P . . , 26
Administrative Support for DD/I . . . . . . . 35
Management Improvement Advisory Services
in DD /S . . . . . . . . . . . . . . . .
37
Staffing and Career Service in Support Area 051b
II. Financial Administration of CIA, Fiscal Years
o
1963--4956 . . . . . . . . . . . . . . . . 52
A. Budgeting . . . . . . . . . . . . . . . . . . 52
General . . . . . . . . . . . . . . . . . . . 52
Office of Comptroller . . . . . . . . . . . . 60
Budget Cycles for Fiscal Years 1953-1957. . . 67
Summary . . . . . . . . . . . . . . . . . . . 85
S E C R E T
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B. Accounting for Vouchered and Unvouchered
Funds . ? , _
Accounting Activities of the Comptroller
Audit Staff.
Statistics of Vouchered and Unvouche ed
r
Funds . ? _
III. Manpower Management.
A. CIA Personnel Strength and Other Personnel
Trends, 1953-1956 . ,
?
119
T/O, Ceiling and On Duty Strength. . , ?
119
Pay Policies, Supergrades.
'
B
143
. Career Service Program 1953-1956
?
151
Objectives . , ,
.
151
Career Services.
155
Career Staff . ? ,
P
160
ersonnel Management Advice and Services ?
166
a. Responsibilities
'
166
b. Office of Personnel.
(1) Location of Office of
Personnel. . , , . .
(2) Organization of the
Personnel Office . , ,
174
(a) Planning Staff ? , , ?
176
(b) Personnel Records. ? ,
179
(c) Staffing the Office of
Personnel . , ? _
S E C R E T
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CIA Recruitment Policies and Practices . ? 186
a. Assessment Services.
. 192
b. Recruitment of Junior Officer Trainees
(JOT'S) . . . . . . . . . . . . . . 197
c. Recruiting Clerical Employees. . . ,
. 211
d. Contract Personnel
. . 215
e. Military Personnel .
. 219
f. Recruiting Women for Career Service. . 223
g. Recruiting Non-Whites for CIA Career
Services . . . . . . . . . . . . . . 227
Personnel Utilization Policies and Practices . 233
a. Assignment, Rotation and Career
Planning . . . . . . . . . . . . . . 234
b. Employee Rating. . . . . .
? 243
c. Promotion Policies and Practices
? 246
Personnel Classification Policies and
Practices . .
? 251
Termination Policies and Practices ,
. 258
Career Benefits. ,
. 260
General Trends . ,
. 266
C. Training for Career Service.
' 269
General Considerations
? 269
a. Concept of Training. . . . . .
? 269
b. Problems of Training .
S E C R E T
. 273
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Organization of Training . . . . . . . . . . . 276
a. Location of Office of Training . . . . 276
b. Internal Organization of Office of
Training . . . . . . . . . . . . . . 279
Training Activities . . . . . . . . . . . . . . 291
a. Training Support Activities. . . . . . 292
b. Clandestine Services Training. . . . . 294
c. Courses on Communist and Anti-
Communist Operations. . . . . . . . 309
d. Intelligence Training. . . . . . . . . 311
e. Management and Administrative Training 316
f. Language and Area Training . . . . . . 323
g. Training Program for Junior Officer
Trainees . . . . . . . . . . . . . . 329
Making Employees Available for Training. . . . 336
Staffing the Training Function . . . . . . . . 341
D. Personnel Statistical Tables . . . . . . . . . 347
IV. Logistics Management . . . . . . . . . . . . . . . 364
Security Staff . . . . . . . . . . . . . . . . . . 378
Building Planning Staff . . . . . . . . . . . . . . 381
Planning Staff . . . . . . . . . . . . . . . . . . 385
Administrative Staff . . . . . . . . . . . . . . . 393
Printing Services Division . . . . . . . . . . . . 398
Procurement . . . . . . . . . . . . . . . . . . . . 406
vi
S E C R E T
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Real Estate and Construction . . . . . . . . . . . 411
Supply . . . . . . . . . . . . . . . . . . . . . . 415
Transportation Services . . . . . . . . . . . . . . 423
V. Security Controls . . . . . . . . . . . . . . . . . 441
Mission and Organization of Office of Security . . 451
Personnel Security Activities. . . . . . . . . 461
Physical Security Activities . . . . . . . . . 475
Operational Security Support Activities. . . . 481
Staffing . . . . . . . . . . . . . . . . . . . 486
VI. Communications Support Activities. . . . . . . . . 489
CIA and Other Agencies in Communications Field . . 490
Activities of the Office of Communications . . . . 499
Communications Security Activities . . . . . . . . 502
Support for Clandestine Activities . . . . . . . . 505
Communications Support for Emergencies . . . . . . 510
Supplemental Programs . . . . . . . . . . . . . . . 512
Communications Research and Development Activities 513
Organization and Management of Communications
Activities . . . . . . . . . . . . . . . . . . . 517
vii
S E C R E T
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CIA SUPPORT FUNCTIONS:
ORGANIZATION AND ACCOMPLISHMENTS OF THE DDA/DDS GROUP,
1953-1956
by DCI/HS
1/
CHAPTER I. OVERALL MANAGEMENT MATTERS-
A. Scope of Support Activities 1953-1956
The magnitude of CIA's support activities increased steadily
during the period, money-wise, personnel-wise, and materiel-
wise. Actual expenditures rose from dollars for
Fiscal Year 1953 to dollars for Fiscal Year 1957
with a slight dip in Fiscal Year 1953 when expenditures
2/
dropped to dollars.- The number of civilian
staff employees and military personnel on duty as of December
1952 was nd the number on duty as of December 31,
1956, was With the addition of temporary and part-
time employees, consultants and foreign nationals, the
latter figure is brought to more than The dollar
value of inventories on hand increased from for
Fiscal Year 1954 to for the first half of
4/
Fiscal Year 1957.- Inventories thus increased at a more
1/
This chapter was drafted b n July 1960.
2/
See below, Chapter II,
for discussion of budget cycles.
3/
See below, Chapter III,
personnel strength.
for discussion in trends in
4/
See below, Chapter IV,
for discussion of logistics.
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rapid rate than expenditures or personnel. None of the
increases were as spectacular as those which occured
during the Smith period 1950-1953, when personnel strength
increased two and one-half times and expenditures increased
five and one-half times. 1/
During the period, an important trend is to be noted
in distribution of available funds. Obligations for intel-
ligence activities increased from dollars for
Fiscal Year 1953 to dollars for Fiscal Year 1957
and obligations for cold war activities decreased from
dollars for Fiscal Year 1953 to 25X1A
dollars for Fiscal Year 1957. The principal increase in
intelligence activities was for covert intelligence col-
lection and the principal decrease in cold war activities
was paramilitary activities.2/ Obligations for intel-
ligence activities rose during the period from two-fifths
to three-fifths of all obligations and those for cold war
activities declined from three-fifths to two-fifths.
1/ See "Organizational History of CIA, 1950-1953" (1957)
especially Chapter X; in DCI/HS files.
2/ As explained below, Chapter II, the analysis of obligations
by major activity was based on a distribution of support
costs to the different activities. Intelligence activ-
ities included covert collection, production, overt col-
lection, and reference services. Cold war activities
included political and psychological paramilitary activities.
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The distribution of manpower resources followed similar
trends during the period of those shown above for financial
obligations. Considering staff employees only, however,
the concentration of manpower in intelligence operations
was greater throughout the period than the concentration
of financial resources. At the beginning of the period
two-thirds and at the end of the period three-quarters of
staff employees were in intelligence operations as compared
1/
to one-third and one-quarter in cold war operations.-
The CIA costs for foreign, positive, strategic intel-
ligence activities were estimated by the Bureau of the
Budget in a study for IAC to be only of total 25X1A
government costs for such activities in Fiscal Year 1954.
The CIA costs rose slightly to comprise nearly 25X1A
during the next two fiscal years. As far as this type of
intelligence activity is concerned the main financial burden
was carr:Led by the Defense Departments and related agencies.
As used, the term "positive" excludes by illustration Comsec,
FBI, or internal security activities, and "strategic" ex-
2/
cludes combat or tactical intelligence activities.
l/ Office of Comptroller, CIA Estimate of Requirements
Fiscal Year 1958, Congressional Budget, 1 February
1957, SECRET, p. III-B, in Records Center Job 59-417.
2/ IAC, IAC-D-55/10.1, 9 July 1956, TS #102481
3
S E C R E T
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The statistical trends in the distribution of man-
power resources followed a similar but slightly different
pattern. For example, the figures on staff employees
show a greater concentration of manpower in intelligence
activities throughout the period than there was in money
resources. At the beginning of the period two-thirds and
at the end of the period three-fourths of staff employees
were in intelligence activities. Over the same period,
those in cold war activities dropped from one-third to
one-fourth. l/
The figures for the geographical distribution of staff
employees showed a tendency toward greater concentration
in headquarters as compared with overseas. While in 1953
the DCI had expressed the view that headquarters should
be smaller and the field expanded, 2/ the next three years
did not bring about this development. The proportion
that departmental employees were of the total increased from
1/ Office of Comptroller, CIA Estimate of Requirements
for Fiscal Years 1955 and 1958, Congressional Budgets,
1 March 1954 and 1 February 1957, SECRET, in Records
Center Jobs 58-436 and 59-417.
2/ Office of Training, Remarks of Mr. Allen W. Dulles,
6 November 1953, in Training Bulletin No. 10, 23'
November 1953, SECRET.
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60 to 63 percent during the period, that of United States
field employees increased from 8 to 10 percent, while
that of overseas employees declined from 32 to 27 percent.
In absolute numbers, there were fewer employees overseas
1/
and more in headquarters in 1956 than in 1953.- Reduc-
tions in foreign field strength were heaviest in 25X1A
and the Far East where the end of military occupation and
changed political conditions made it difficult to maintain
staffs as large as they had been at the beginning of the
period.2/ It was difficult to tell in advance where
people would be most needed three or four years later.
Persons were assigned to the places where their services
were in greatest need at the moment.
The fact that the ratio of overseas staff employees
to headquarters staff employees dropped from a little
over one-half to 43 percent may have had some effect upon
the practice of rotation between headquarters and the field.
In theory, if rotation is to be carried out to the fullest
extent, there must be an equal number of positions at
headquarters and overseas. This was the situation in the
1/ See below, Chapter III.
2/ See below, Chapter III.
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Office of Communications and the practice of rotation was
found to be highly successful in that office. l/ The im-
balance between headquarters and the field in the Agency
as a whole reduced the amount of rotation that was possible
from the theoretical point of view, assuming two years as
the standard tour of duty both at home and abroad. Of
course, many headquarters positions involved duties that
had no relation to overseas activities and persons occupying
those positions would not normally expect to be sent abroad.
Planning administrative support for intelligence
activities and for cold war activities continued to pre-
sent serious problems. Unforeseen emergencies arose each
year for which advance planning was difficult. The device
of the contingency fund was effectively used during the
2/
period to meet the financial needs of such crises. As
far as emergency personnel needs were concerned, not much
headway was made in cutting down the time needed for
security investigations, for finding people with unusual
qualifications, or for training promising young people
in the tradecraft of intelligence and cold war operations.
1/ See below, Chapter VI.
2/ See below, Chapter II, for a discussion of the con-
tingency fund and its use during the period.
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A proposal was made to establish an Actions Operations
Unit which would provide a cadre of personnel skilled
in all action aspects of Clandestine Services emergency
operations, but the proposal was only partially imple-
mented during the period. Advance planning was also
difficult to meet emergency materiel needs. To obtain
sterile equipment, especially that of a military nature,
was not possible on the spur of the moment. To stockpile
such equipment also involved many problems because of
the multiplicity of types and the rapidity of obsolescence.
B. Management Advice and
Inspection in the Agency as a Whole
At the beginning of 1953, the management advisory
functions of the Agency were divided among various offices.
The Deputy Director (Administration) was charged with establish-
ing and maintaining a continuous management improvement
program to insure both efficiency and economy of operations
on an Agency-wide basis. While management improvement with-
in their respective spheres was a concern of all of the
offices under the DD/A, the Organization and Methods
Service (O&M) of the Office of the Comptroller was specif-
ically charged with analyzing the organizational structure
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of all Agency components, their functions, methods, and
procedures, with particular attention to personnel needs
and staffing patterns; with furnishing technical and
substantive guidance for utilization of business machines;
with controlling and publishing Agency-wide regulations
and procedures; and with developing a forms control pro-
gram. 1/ Also under the DD/A, the Records Service Divi-
sion of the General Services Office directed the Agency
records management program which included records dis-
position, storage of vital materials, and record keeping
2/
systems.-- Under the DD/P, the Chief of Administration
reviewed operations and activities of the DD/P group in
order to determine where support weaknesses or deficiencies
existed and in order to improve efficiencies and economies.3/
Under the same group, the Inspection and Review Staff was
responsible for reviewing Clandestine Services activities
and programs with a view toward determining the need
25X1A
s
1/
25X1A
SECRET. See below, "Management Improve-
ment . .
. ," for fuller discussion of these activities.
2/
Ibid.
3/
Office of Comptroller, Estimate of Requirements Fiscal
Year 1956, Bureau of the Budget Submission, Functions
and Activities, 15 September 1954, SECRET, in Records
Center Job 58-436.
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for changes in organization and procedures as well as in
operational emphasis. In the Office of the Director,
the Office of Training gave general courses in management,
supervision, and administrative organization and cooperated
with other offices which gave specialized courrjes on finan-
cial, logistics and personnel administration. On behalf
of the Director, the Inspector General (IG) was charged
with conducting investigations throughout the Agency and
with inspecting the performance of missions and/exercise
3
of functions of all CIA offices and personnel. During
the period 1953-1956, the IG made a survey of practically
every office in the DD/A-DD/S group. His recommendations
were the source of many of the organizational changes
made during the period, particularly those which affected
several offices.
After the Management Staff was transferred to the
immediate office of DD/A in April 1954, the DD/A, the IG,
and the Chief/MS met to consider the relationship between
1/
See discussion on training, Vol. 2, p. 269.
3/
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the new MS and the IG. They agreed that it was not feas-
ible to draw a line clearly separating the two functions
inasmuch as the IG, in making over-all inspections, had
to consider management as well as other aspects of the
offices concerned. It was also agreed that the IG would
depend upon MS to provide appropriate management studies
for inclusion in over-all inspection reports. l/ In
practice this arrangement did not work out since the IG
moved much faster than the MS and did not want to wait
for a MS study which might take several months to complete.
In addition, the MS cultivated a customer relationship
and only made a study when requested by a customer office.
The Chief/MS said that he ran a separate shop from that
of the IG.2/ The MS was concerned with management im-
provement within a given office, while the IG ranged
more widely and made recommendations regarding jurisdictional
disputes between offices. 3/
1/
Memorandum for the Record prepared by Acting DD/A,
7 April 1954, MS/IG General Relationship, SECRET,
in O/DCI/ER.
2/
Memorandum for the Record prepared by HS,
Conversation with Mr.
1958
17 October
Chief/MS,
,
re History of MS 1953-1956, SECRET, in HS files.
3/
Office of Training, Training Bulletin No.
ber 1953, Remarks of Lyman B. Kirkpatrick,
OTR files.
12, 23 Novem-
SECRET, in
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The comprehensive character of the management improve-
ment program was revealed by the report on this subject
made to the Bureau of the Budget for the Fiscal Year 1953
by the DD/A.l/ The Agency program used all of the generally
accepted techniques for reviewing operations to determine
the effectiveness and economy of performance. These re-
view techniques included reports, normal supervisory
processes, staff conferences, budget estimates and justi-
fications, surveys and special studies. Every part of
the Agency was involved in the report. The philosophy
of the DD/A was that while any large organization needed
to be supported with staffs, task forces, and other mech-
anisms set up for purposes of planning, coordinating,
or monitoring, the true energy and power of an organization
came through command channels. He thought that a heavy
emphasis should be placed on line management. 2/
1/ Letter to the Director of the Bureau of the Budget
from Acting DD/A, 5 October 1953, SECRET, trans-
mitting report on Management Improvement Accomp-
lishments Fiscal Year 1953, in MS files.
2/ Memorandum for DCI from DD/S, 19 May 1960, Response
to IG's Survey on Career Service. CONFIDENTIAL,
in DD/S files.
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In the Intelligence field the management improvement
report stated that the establishment of improved procedures,
more effective control over the flow of intelligence infor-
mation, and the scheduling of research, had resulted in
increased output, the conservation of manpower and signif-
icant economies.
In the Operations field the report found that organ-
izational and procedural studies conducted for the purpose
of implementing the over-all reorganization had resulted
in improved channels of communication between headquarters
and the field, more efficient administration of support
of operations, more effective manpower utilization, and
more effective operations.
In the Administrative field, the report found that
significant gains had been made in personnel management,
logistical support and in financial and budgetary areas.
Improvement in personnel management was closely linked
with the Career Service Program in all its various as-
1/
pects. The logistical support elements of the Agency
were reorganized in order that an integrated support
1/ See discussion on Career Service program, Vol. 2,
p. 151.
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program could serve all of the Agency in the most effec-
tive, expeditious and economical manner possible. Improved
financial controls were established and further use was
made of electronic accounting machine methods.
Another unit with management advisory functions was
the Office of the General Counsel which during the period
was attached to DD/A-DD/S for administrative purposes.
This Office was called upon to give advice on all high
policy and administrative questions which involved the
interpretation of the basic laws, executive orders, and
National Security Council Directives. It was concerned
with a wide range of administrative procedures which had
to conform with Federal laws and governmental regulations
on such subjects as use of confidential funds, incorpora-
tion budgeting, use of aliens, Federal procurement prac-
tices, civil service pracrices, travel, government sec-
urity of information. As indicated below, it reviewed
all proposed regulations and it reviewed administrative
plans when legal questions were involved. It furnished
legal advice to operating officials on how certain tasks
might be performed and, when the occasion arose, it
warned officials about the legal consequences of acts
that may have been contemplated.
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C. General Direction of Support Services
The beginning of the Dulles administration in 1953
came some six months after General Smith issued his
directive of July 15, 1952, which merged the separate
area divisions of OSO and OPC and created the FI, PP,
PM, and Administrative Staffs under the jurisdiction
of the Deputy Director (Plans). General Smith's concept
of the administrative arrangements which went along with
these changes in the Clandestine Services was based on
the following three principles:
a. The control administrative organization is not
extended separately and in parallel to the op-
erational command system.
b. Officers responsible for operations, insofar as
our resources permit, are allocated personnel,
funds, and materiel adequate for the performance
of the missions assigned to them. They are held
responsible both for the success of their opera-
tions and for the practical and effective expen-
diture of the means allocated.
c. Subject to paragraphs a. and b. above, the Deputy
Director (Administration) is responsible for all
administrative support for the Agency. This re-
sponsibility extends on operational levels to in-
clude appropriate audits and inspections of the
handling of funds and materiel allocated to op-
erating offices .1/
1/ Office of Comptroller, 1955 Bureau of the Budget
Submission Material, SECRET, in Records Center
Job 436.
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The DD/P was responsible to DCI for all clandestine
activities. The Chief of Administration on the staff of
DD/P had a position similar to the G-1--G-4 for a field
army who had no command over the offices rendering ad-
ministrative support but who was responsible for insuring
that such support was arranged and provided for.
During the first year following the July 1952 directive
DD/A worked towards implementing this system. He eliminated
considerable overlapping and duplication. About 200 admin-
istrative-type positions in the clandestine services area
were eliminated and the functions performed by these
people were absorbed with relatively minor expansion else-
where. Integration of overseas activities with the Head-
quarters system remained to be completed. This involved
developing new regulations and indoctrinating and training
personnel to implement them.
DD/A took the position that the resources devoted
to administration should be the minimum that would insure
the success of the mission and not less. He could not
arbitrarily decide that for a given year only a certain
1
proportion of the budget would be expended for administration.-
1/
IS
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There were instances in which to accomplish given missions
practically all of the costs might be called "administra-
tion." All too frequently an operation was unsuccessful
because of failure to provide at the outset a well conceived
administrative support plan and to make timely provisions
for funds and materiel to carry it out.
For Fiscal Year 1953 administrative support provided
by the central administrative offices made up about 11 per-
cent of the total budget. I/ About one-third of this admin-
istrative support was for security. Spread out in some
buildings, the guard service along cost more
than $1,000,000 annually. Support costs under DD/A did
not include all costs of administration. Personnel doing
administrative work were found in all parts of the Agency.
In some cases it was almost impossible to separate admin-
istrative support costs from operational costs.
For Fiscal Year 1956 administrative support provided
by the central administrative offices on a basis comparable
Office of Comptroller, Estimate of Requirements for
Fiscal Year 1955, Bureau of the Budget Submission,
30 September 1953, SECRET, in Records Center Job 436.
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to that mentioned in the above paragraph consititued
about 9 percent of the total budget. 1/ This appears
to represent a scaling down of the proportion of admin-
istrative costs although it must be remembered that the
obligations for Fiscal Year 1956 contained some special
projects which were not in the earlier budget. Certainly
it can be said that there was no increase in adminis-
trative costs as reckoned in this fashion. Of course,
the addition of the Communications and the Training
Offices during the period brought the proportion of sup-
port costs under DD/S to a higher figure, namely 22
percent of the total budget.
Deputy Director
A key figure in CIA's administrative support func-
tions was the Deputy Director in charge of these functions
whose beginnings dated back to 1950 (and whose origins
1/ Subtracting cost of Office of Training and Office of
Communications. These were not included in 1953 ad-
ministrative costs. Figures are taken from Office of
Comptroller, CIA Estimate of Requirements for Fiscal
Year 1958, Bureau of the Budget Submission, 30 Sep-
tember 1956, SECRET, in Records Center Job 59.
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can be traced to CIG and CIA Executive during the period
1/
1946-1950). He served under the title Deputy Director
(Administration) from January 1953 to February 1955 and
under the title Deputy Director (Support) from the latter
2/
date for the balance of the period and beyond.- Through-
out the period he was one of the three "functional" dep-
uties--specifically the principal Deputy Director for
administration and support matters affecting the other
two Deputy Directorates--those for intelligence and clan-
destine services, respectively.
Heading the DD/A and DD/S group from 1953 to 1956
were the following: Mr. Walter R. Wolf as DD/A from
January 1953 until June 30, 1953, (he had served as DD/A
since April 1951), Col. Lawrence K. White as acting DD/A
from July 1, 1953, until May 21, 1954, (he had served as
Assistant DD/A since 1951), Col. White as DD/A (the act-
ing being dropped) from May 21, 1954, until February 3,
1955, when the position of DD/A was renamed DD/S, and
1/ See "Organizational History of CIA, 1950-53" (1957),
especially Chapter X on the DD/A group and its pred-
ecessors.
2/ CIA
and Functions, SECRET.
, Organization
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Col. White as DD/S from that date to the end of the period
and beyond. l/ Col. White thus furnished considerable
continuity to the top leadership of the Agency's support
group during the period from January 1953 to December 1956.
In the immediate office of the DD/A there was an
Assistant DD/A. Col. White held this position from about
December 1951 until May 21, 1954, when he was officially
appointed DD/A. After a lapse of four months the appoint-
ment of Mr. H. Gates Lloyd, senior officer in the DD/P
2/
group, was announced as Assistant DD/A.- Mr. Lloyd
held that position until February 1955 when he was appointed
Assistant DD/S in connection with the reorganization of
that date.
On several occasions during the period under con-
sideration there was a need for an acting DD/A or an
acting I)D/S, during the temporary absence of the senior
official. Apparently, for the period from January to June
1953, Mr. Wolf was not officially absent.3" During his
1/ CIA Notice No. W 19 June 1953, Announcement of
Assignments to a ions, SECRET, and No.
21 May 1954, same subject, SECRET.
2/ CIA Notice No. 26 July 1954, (effective
1 September 1954), SECRET.
3/ According to the P Notices for that period.
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25X1A
tenure as acting and official DD/A, Col. White was absent
on two occasions, from April 19 to the 26th, 1954, and
from August 14 to September 3, 1954. 1/ - During both of
these intervals the acting DD/A was Mr. Lawrence R. Houston,
General Counsel.2/ During the later DD/S period, Col.
White was absent on three occasions: from August 4 to
September 4, 1955; from July 27 to August 13, 1956; and
from August 21, to October 26, 1956.3/ During these three
intervals, H. Gates Lloyd was the Acting DD/S.
As of early 1953 the DD/A was in charge of the fol-
lowing offices which made up the DD/A group: Audit Office
(and Auditor in Chief), General Counsel, Personnel Office,
Security Office, Comptroller, Logistics Office, Medical
Office, General Services Office. 4/ It is to be noted
that at the time DD/P had his own Chief of Administration,
1/ CIA Notices Nos. 15 April and 27
July 1954, SECRET.
2/ Ibid.
3/ CIA Notices Nos. 1 August
1955, 26 July 1956, and 16 August 1956, all CONFIDENTIAL.
4/ CIA Regulation No.~ 20 March 1953, SECRET. In
January 1953, the Security Office was called Inspection
and Security Office (I&S), and the Logistics Office
was called Procurement and Supply Office (P&SO).
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and that the Office of Training and the Office of Com-
munications (transferred from DD/P on March 20, 1953)
were directly under DCI. The Organization and Methods
Service was under the Office of the Comptroller at that
time.
Within the next year and a half there were a number
of shifts and changes made which affected the DD/A group.
In January 1954 the Office of Personnel was transferred
to the Office of DCI on the recommendation of the DDCI.l/
Col. White opposed this move and a year later was vindi-
cated by the transfer back of OP to DD/S. On February 8,
1954, the General Services Office was liquidated and most
2/
of its functions were transferred to the Logistics Office.-
On April 5, 1954, the Management Improvement Staff was
transferred from the Office of the Comptroller to the
immediate Office of DD/A and renamed the Management Staff
3/
(MS.)-
r
25X1A
.
1/
CIA Re ulation No. 18 January 1954, SECRET, and
25X1A
No.
SECRET. Memorandum for the Record, 8 October 1958, Sub-
ject: Interview with Col. L. K. White, DD/S, 6 October
1958, re History of DD/S, 1953-1956, SECRET, in HS files.
2/
CIA Notice No. 8 February 1954, SECRET.
3/
CIA Regulation , 5 April 1954, SECRET.
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As far as organizational matters were concerned,
Col. White held to the principle that there should be a
unified system of support for the entire Agency. He
took the position that there should be a single DD/S and
that no support functions should be set up separately
in DCI.l/ His views were to prevail in early 1955.
While the Assistant Directors of Communications, Personnel,
and Training were nominally grouped with the three Deputies
into what was called in the Agency the "Big Six," actually
the three Assistant Directors were the "Little Three" and
they did not come to morning meetings of the Deputies
through which the Director ran the Agency. Col. White
pointed out that personnel matters were closely linked
with budget, financial, and security matters. In February
1955, the Director, on his own initiative, decided to con-
centrate responsibility for all administrative support
matters in DD/A. It was his idea to merge DD/P/Admin and
DD/A. Col. White talked to DD/P and his Chief of Opera-
tions about the change and at first he met resistance.
Finally DD/P said to Col. White, "You take it." The
1/ Memorandum for DCI from DD/S, 20 August 1956, Subject:
Report of IG on O/DD/S, MS, and OGC, SECRET, in O/DCI/ER.
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Director added, "I'm going to put personnel back under
"Red" (Col. White)." Then the IG said, "If you're going
to do this, why not put OTR and Commo also under DD/A."
General Cabell said about the plan, "I buy that." Then
someone said, "Let's call the office DD/S, after the analogy
of military support functions." The reorganization order
of February 1955 was the result.l/
When DD/S was first organized, Col. White appointed
a number of functional assistants. He had a Special Assis-
tant to DD/S (Logistics), a similar officer for Finance,
one for Personnel, one for Training, and one for Admin-
istrative Career Service. The theory behind these
special assistants was that the DD/S would have to solve
many administrative problems and these specialists would
be in touch with the different office chiefs. Experience
showed that his system meant that the work was handled
twice. In 1956 the IG recommended that the DD/S dis-
continue liaison-type Special Assistants, and instead
develop a small personal staff of carefully selected
25X1A 1/ CIA Notice No. SECRET and Memorandum for in e HS Recuru, 15
files.
25X1A
October 195 nterview with Col,
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generalists qualified to assist him in developing and
coordinating policies of over-all DD/S applications.
The DD/S concurred and indicated that the Special Assis-
tants in his office were being reduced in number. Those
who remained had responsibility for special assignments
but they also functioned as generalists. They had had
overseas assignments or had worked with DD/P organiza-
tions and understood operational and administrative prob-
lems. He was developing a staff of generalists of this
sort who understood the Clandestine Services. I/
The IG's survey of the Office of DD/S made in 1956
implied that the DD/S tried to carry too much of the
support load personally and recommended that the DCI
establish an Executive Director, or Chief of Staff, re-
sponsible for supervising and coordinating activities
transcending the responsibilities of more than one
Deputy. The DD/S regarded this as equivalent to estab-
lishing a fourth Deputy Directorate which would mean
that the Deputy Directors for Intelligence and Plans
would have to look to two Deputies for coordination of
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their total support rather than one and which would comp-
licate rather than simplify existing supervisory and
1/
coordinating mechanisms and procedures.
In a similar vein, the IG recommended that the DCI
relieve the DD/S of personal responsibility for special
assignments, such as the new building, and permit the
DD/S to devote maximum time to the direction of the
twelve offices and staffs reporting to him. The DD/S
said that he thought the new building was appropriately
assigned to the DD/S. While it imposed a heavy load,
it was a job which required continuing high level atten-
tion. Col. White doubted seriously that any other
arrangement would have been less of a headache either
to DD/S or the Director. 2/
During the period the centralization of support
functions remained under the DD/S. The Director did
not appoint a Chief of Staff or take the new building
assignment away from DD/S.
1/ Memorandum for DCI from DD/S, 20 August 1956.
2/ Ibid.
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Special Administrative Support for DD/P
Prior to the reorganization of February 1955, the
Chief of Administration, DD/P, reported to DD/P, not to
DD/A. Under this system it was impossible for the Director
to hold DD/A responsible for all administrative support
matters. There were many projects which were handled
directly by DD/P/Admin. The trouble with this setup was
(1) that DD/P/Admin tended to be a bottle neck through
which the area divisions and staffs had to go to get
services needed and (2) that he had no line control over
support officers. DD/P/Admin was an unnecessary channel
and he did not have authority over the Comptroller and
other support officers upon whom he depended for support
services. By changing the name of DD/P/Admin to Special
Support Assistant and placing him in DD/S, the two dis-
advantages were eliminated. SSA/DD/S became an extension
of DD/S and when SSA went to the Comptroller or to other
support offices he spoke for DD/S. In addition, DD/S
encouraged area divisions to go directly to the support services
1/
as often as possible.-
1/ Memorandum for the Record, 2 June 1960, Subject:
Conversation with Col. L. K. White, DD/S, Regarding
History of DD/S Group, 1953-1956, SECRET, in HS
files, "DD/S History . . . " folder.
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After a year and a half of experience with the SSA
arrangement, the IG proposed a return to the old plan.
In a memorandum for the Director, Col. White defended
the SSA/DDS plan as follows:
The authorities delegated by the DD/P to SSA/DDS
do in a sense require that the SSA "serve two
masters," but the delegations are clearly on ad-
ministrative matters. I feel strongly that a DD/P
administrative staff should not duplicate DD/S
functional components. I believe our present or-
ganization has proven its soundness in this respect...
There is no question in my mind that the present
arrangement whereby the Comptroller furnishes the
budget and fiscal service to the DD/P is in the
Agency's best interest. I do not concur in re-
turning these responsibilities to the DD/P.
SSA representatives have done much to establish a
bond between operations and support and have pro-
vided "spot" assistance in all administrative
fields. Because of physical proximity to the DD/P
offices there has been a tendency for SSA represen-
tatives to engage in some support activities pro-
vided by major offices. This had decreased greatly
and the SSA representatives are devoting their
efforts to assisting DD/P in staffing of sensitive
matters, coordinating and helping on matters in-
volving major policy, and insuring that Clandestine
Services receive adequate, proper and timely support
in their activities. I shall continue to make every
effort to improve this situation.1/
The Director accepted Col. White's position regarding
the soundness of the SSA/DDS system. Part of the secret
1/ Memorandum for DCI from DD/S, 20 August 1956, Subject:
Report of IG's Survey of O/DD/S, MS, and OGC, SECRET,
in O/DCI/ER.
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of the successful operation of the system lay in the
development of a corps of senior support officers who
had served in a variety of positions at headquarters in
both the DD/S and DD/P organizations, as well as in. the
field. Rotation and cross-fertilization brought a better
personal understanding between personnel engaged in Op-
erations, Intelligence, and Support. At the end of the
period about 80 percent of the senior support officers
in DD/S had had such experience.
Career service in support functions was accepted
by Clandestine Services after the reorganization of 1955.
DD/P looked to DD/S components to hire and train support
specialists. This was done on a world-wide basis and it
facilitated the rotation and career development of ad-
ministrative personnel.
In the immediate office of DD/A there was an Assis-
tant DD/A. Col. White held this position from about
December 1951 until May 21, 1954, when he was officially
appointed DD/A. After a lapse of four months the appoint-
ment of Mr. H. Gates Lloyd, senior DD/P officer, as
Assistant DD/A was announced. 1
1/ CIA Notice No.
26 July 1954, SECRET.
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Mr. Lloyd held that position until February 1955 when
he was appointed Assistant DD/S in connection with the
reorganization. The Assistant Deputy Director became
the Acting Deputy Director upon the absence of the DD/A--
DD/S.
During the entire period a post rendering special
service to DD/P was located in the immediate office of the
Deputy Director, called Project Administrative Planning
2/
Staff (PAPS).-" This staff dealt primarily with propri-
etary projects. It provided staff assistance in con-
nection with the development of Administrative Plans
for projects which did not lend themselves to the ordin-
ary regulations regarding accounting and security. In
August 1956 the IG recommended that the Staff as an entity
be abolished, that its function of the preparation of
Administrative Plans be assigned to appropriate DD/P
components, and that technical guidance to DD/P components
in the preparation of Administrative Plans be provided
by the Office of the Comptroller. DD/S opposed placing
l/ Ibid. 25X1A
2/ CIA Notice
Review, SECRET.
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the technical guidance responsibility in the Office of
the Comptroller because the General Counsel, the Chief
of Logistics, the Director of Personnel, and other
officers were concerned with Administrative Plans.
Often high level determinations were involved and the
small staff representing DD/S in advice and assistance
could aid in administrative policy when the objectives
of a project had been determined. Within six months,
PAPS was abolished and its advisory functions were
transferred to the Commercial Staff. l/
As a part of the reorganization of February 1955,
the Commercial Division, DD/P, was reassigned to the
Office of the newly created DD/S, as the Commercial
Staff. Shortly after the transfer, the DD/S requested
the IG to make a survey of the Commercial Staff. The
IG's Office completed this survey in July 1955. It in-
cluded recommendations for clarification of functions,
duties and definitions, and for certain organizational
adjustments which would have amalgamated the Commercial
1/ CIA Notice
SECRET.
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Staff, the Cover Division of DD/P, PAPS, and the Covert
Office of the Office of the General Counsel. 1/ While
as seen above the amalgation was only partially carried
out, the other recommendations were mostly adopted. A
new Commercial Staff functional statement was issued in
February 1957.2/ A new Administrative Plan regulation
(outlining responsibilities and restating definitions
of proprietaries, subsidies and operational investments)
was issued in March 1957. 3/ - The Finance Division was
designated as the official reporting unit for the mone-
tary status of proprietary projects.
The predecessor organizations of the Commercial
Staff were established at a time when the Agency, be-
cause of extreme military and political pressures in the
Far East and Europe, was establishing a relatively large
number of proprietary companies. The unit's purposes
1/ Commercial Staff, History of the Commercial Staff,
1953-1956, submitted to O/DCI/HS, 29 January 1959,
SECRET.
25X1A
25X1A
2/ CIA Re ulation No.- 6 February 1957, Change 2,
no
SECRET.
25X1A
3/ CIA Regulation
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were to oversee the development and operation of such
companies, and of any project operations with commercial
aspects. It also was expected to provide technical and
professional competence in the field of business, to en-
sure that such projects, with their large budgets, were
handled in accord with good business practice and in the
1/
best over-all interest of the Agency.- The Commercial
Staff was both an internal protective device, and a
mechanism for advancing operations through the preserva-
tion of cover, the stretching of funds, etc.
Initially, all new proprietary, subsidy, operational
investment and preclusive buying projects passed through
the Commercial Staff for review, sign-off, comment, and
concurrence before they finally were approved at the
higher levels. With the establishment, in April 1955,
of the Office of SSA/DDS, an initial review of projects
was made by SSA/DDS. Thus, only those new projects
actions which, in the view of SSA/DDS, had commercial
implications were forwarded to Commercial Staff for
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coordination and comment. This development, in effect,
cut the Commercial Staff out of the early planning phases
of many projects, as often plans were drawn and commit-
ments made before projects were presented for SSA/DDS
review and approval. A later requirement, however,
that Administrative Plans accompany Project Outlines
through the Project Review Committee brought the Commer-
cial Staff more actively back into the proprietary pro-
ject planning cycle.
Until April 1957, PAPS continued to have responsi-
bility for the drafting of Administrative Plans. The
Commercial Staff was required to coordinate, and some-
times even draft, appropriated sections of Plans. Over
a period of time, however, PAPS developed a tendency to
develop Plans so detailed in all their aspects that it
often was impossible for case officers, and the project
organizations, to comply and still effectively utilize
the project mechanism for covert operations. Ultimately,
it was realized that there must be a middle ground be-
tween efficient commercial management, and effective
operations.
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The solution of the problem of management of com-
mercial companies was the assignment to the Commercial
Staff the function of advising and assisting Agency com-
ponents in the commercial and business aspects of their
operations as they related to the establishment, opera-
tion, or liquidation of proprietary, investment and
subsidy activities. This concept placed the Staff pri-
marily, although not exclusively, in an advisory and
consulting role, with a capacity for supervision or
direct control of project company management when specif-
ically requested. During 1953-1956, the Commercial Staff
assumed direct operating responsibility for six projects.
In addition, it normally had operating responsibility
for projects in liquidation.
During the period under consideration, and at the
request of the DD/S, an internal study group, with rep-
resentatives from Commercial Staff, Office of the General
Counsel, and PAPS, completed in December 1956 a study of
"Business, Banking and Legal Practices in Covert Projects
under Non-Government Cover." This group pointed up the
continuing need and usefulness of proprietary cover,
and offered a number of suggestions for improving its
use.
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In addition to its frequent relationships with PAPS,
SSA/DDS, and the General Councel's Office, the Commercial
Staff had business with the Audit Staff, Central Cover,
and the Office of the Comptroller. In arranging for
the audit of Agency proprietaries, the Audit Staff fre-
quently levied management and accounting requirements
on the Commercial Staff. The Central Cover Division of
DD/P was concerned with the utility and mechanics of
placing individuals under the cover of business organiza-
tions under proprietary projects. During the period, the
Commercial Staff had to resolve its differences of opin-
ion with Central Cover Division as to procedure and
technique. With the Technical Accounting Staff on the
Office of the Comptroller, the Commercial Staff main-
tained day-to-day relationships regarding systems of
accounts for Agency business organizations.
Administrative Support for DD/I
The DD/I did not have as many and as complicated
administrative problems as the DD/P. A larger propor-
tion of the DD/I personnel were located in headquarters
and most of those in the field were not under the same
strict security controls that characterized the DD/P
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At the beginning of the period both the DD/I and the
DD/P had their own administrative staffs which were de-
signed to maintain liaison with the administrative sup-
port staffs and to expedite the obtaining of financial,
personnel, logistical, communications, and other forms
of administrative support. As has been pointed out
above, the administrative staff of DD/P was transferred
to the 1)D/S under the reorganization of February 1955.
This did not happen to the administrative staff of the
DD/I.
In his 1956 Survey of the Office of DD/S, the IG
recommended that DD/S confer with the DD/I, establish a
program for the rotation of administrative career per-
sonnel between the two areas, and develop other broad
policies designed to incorporate DD/I more fully into
Agency support Planning activities.
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The DD/S conferred with the DD/I regarding the lo-
cation of administrative career people in the DD/I area.
The DD/I preferred to place these administrative people
under the DD/I career services. As a result of this
policy, administrative people in DD/I had limited oppor-
tunities for rotation or promotion as compared with the
administrative people under the Support Career Service.
Administrative people in DD/I soon reached a ceiling
and had no place to go. DD/S could not remedy this sit-
uation as long as the DD/I kept to this policy.
Management Improvement Advisory Services in DD/S
During the first fifteen months of the period
there was some shifting about of the management improve-
ment services within the DD/A area but the backbone of
the services remained the Organization and Methods
Service (O&M) which started out in the Office of the
Comptroller. On February 17, 1953, the standard Agency
correspondence system and forms control program was
transferred from the O&M Service to the Records Service
Division, General Services Office. I/ Shortly afterward
25X1A
1/ CIA Notice No. - 17 February 1953, CONFIDENTIAL.
am S E C R E T
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who had been Assistant Deputy
Director Administration (Special), was made the chief
5/
taff .
of the new staff.
the staff in charge of regulations and notices was shifted
the
from the O&M Service to the immediate office of DD/A.
The O&M Service itself was renamed the Management Improve-
ment Staff (MIS) on November 17, 1953. 2 At the time of
the liquidation of the General Services Division, Feb-
ruary 8, 1954, the Records Management Section and Records
Center Section were transferred to MIS.- On April 5,
1954, the MIS was transferred to the immediate Office
of DD/A, renamed the Management Staff (MS) and enlarged
to include the Regulations Control Staff.-- The new
MS included an O&M Staff, a Business Machine Service, a
Records Management Division, and a Regulations Control
25X1A Staff. Mr.
1/ CIA Telephone Directories, January and April 1953,
SECRET.
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While the MS remained for the balance of the period
in the DD/A--DD/S group, 1/ - there was some discussion of
moving the function to a higher echelon. In 1956 the IG
recommended that the MS be transferred to the Office of
the Director and that it come under the immediate super-
vision of the DDCI or of an Executive Director if such
a position were established. The DD/S held that such
a move would violate the Director's concept of minimizing
the number of component heads reporting to his office and
it would dilute the responsibility of operators. He
knew of no instance in which a Deputy Director had
failed to cooperate with the MS in its present organiza-
tional location and he doubted that it would be more
2/
effective reporting direct to the Director.-
1/ When the DD/A was changed to DD/S on 3 February 1955,
MS instead of being attached to the immediate office
of DD/S was given an independent status as a staff,
reporting to DD/S as did Medical Staff and the Audit
Staff. CIA Notice No. 3 February 1955,
SECRET, in Records Center.
2/ Memorandum for DCI from DD/S, 20 August 1956, Sub-
ject: Report of IG's Survey of O/DD/S, the MS, and
O/GC, SECRET, in O/DCI/ER, in DD/S file.
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Early in the period, three O&M sections were estab-
lished, one each for the DD/P, DD/I, and DD/A--DD/S
areas. This arrangement was challenged in 1956 by the
IG who recommended that the three sections be consolid-
ated into a single staff under the supervision of a
Chief, O&M, reporting to the Chief, MS. The DD/S replied
that sectionalizing the small O&M Staff had been desir-
able because it permitted specialization resulting in
the ability to deal with problems effectively. Special-
ists in management who were daily assigned to an opera-
tional entity found greater acceptance, more freedom of
action and more positive inter-change of ideas than
generalists in management. l/
The Agency management improvement program used all
of the generally accepted techniques for reviewing opera-
tions to determine the effectiveness and economy of per-
formance. These review techniques included reports,
normal supervisory processes, staff conferences, budget
estimates and justifications, surveys and special studies. 2/
1/ Ibid.
2/ Letter to the Director of the Bureau of the Budget
from Acting DD/A, 5 October 1953, SECRET, transmitting
report on management improvement accomplishments Fiscal
Year 1953, in MS files.
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Management studies by the Management Staff were conducted
in collaboration with operating personnel. Internally the
MS used a coordinated "team" approach, bringing to bear
the knowledge and skills of all components of the MS on
problems coming to the attention of any single component.
The Chief of MS designated the O&M representative as the
focal point for using the collaborative approach in manage-
ment studies in each of the three areas: DD/S, DD/I, and
DD/P. In the DD/P area, some surveys were made jointly
with the I&R Staff.l/ The MS also conducted liaison with
Government and non-government organizations in the devel-
opment of new and improved methods and techniques.
The MS collaborated with I&R Staff in making admin-
istrative management studies for DD/P both in headquarters
and in the field. Acting as inspector for I&R Staff, the
MS conducted complete annual types of inspection of selec-
ted headquarters units, including organization, functions
and procedures, personnel utilization and morale, physical
security, records and records management, support evalu-
ation, space layout and general efficiency. Acting as a
1/ Memorandum for C/MS from C/O&M/DD/P Area, 17 January
1955, Management Staff Accomplishments in DD/P Area,
1 January 1954-1 January 1955, SECRET, in MS files.
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member of I&R inspection teams, MS representatives con-
ducted inspections of selected field stations as requested.
Such inspections included fiscal records, cash position,
liaison, personnel utilization and morale, physical sec-
urity, records system condition and procedures, motor
vehicle use, procurement and supply functions, quarters
allowances, living conditions, dependents medical and
educational facilities, headquarters support, space and
field station management.
Table of Organization (T/O) changes were processed
by the O&M Staff. l/ These varied from routine actions
such as the transfer of a single position to major reor-
ganizations. T/O change proposals required study of the
mission and functions, organizational structure, staffing
pattern and deployment of manpower resources. MS was
responsible also for determining the availability of
funds, and coordination with the Comptroller and Assistant
Director for Personnel prior to the preparation of rec-
ommendations to the DD/S for approval or disapproval of
25X1A
1/ CIA Regulation No. 16 April 1954, and
15 May 1956.
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proposed changes. During the period the MS used its
1/
powers to reduce the gap between T/O`s and ceilings.-
A commonly recommended action was the reduction of the
T/O to the level of the ceiling. Among the other objec-
tives of reorganizations were the elimination of over-
lapping responsibilities and the improvement of staff
direction.
The MS made procedural studies for all parts of the
Agency and it claimed that its recommendations resulted
in substantial savings in money, time and manpower and
in improved efficiency. For example, it reported that
the Pouch Service Survey made for DD/P resulted in es-
timated savings to the Agency of over $196,000 per year
through cost reductions in commercial transportation,
per diem and personnel salaries. 2/ - In. collaboration
with the Office of the Comptroller it recommended pro-
cedures which decreased the lag time required for
1/ Memorandum for C/MS from Assistant Management Officer
DD/I Area, 22 December 1954, Progress Report, Calendar
Year 1954, SECRET, in MS files.
2/ Memorandum for C/MS from C/O&M Staff, DD/P Area, 13
July 1956, Management Staff Accomplishment Within the
DD/P Area During FY 1956, SECRET, in MS files.
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recording financial transactions and which reduced post-
ing errors and delinquent accounts. I/ Working with the
Office of Logistics it helped develop procedures for world-
wide control of property and stock accountabilit 2/
y ?-' In
cooperation with the various components of DD/I, it studied
the flow of intelligence documents and recommended changes
in paperwork management which resulted in reduction in
number of personnel handling documents, simplified hand-
ling and filing procedures, elimination of backlog and
overtime, and speeding up of deliveries of documents.3/
The Records Management Staff was responsible during
the period for directing the Agency's records management
program which included: the preservation, transfer and
destruction of Agency records according to approved sched-
ules; the selection and transfer to a repository of those
records (Vital Materials) essential to the operations of
the Agency during an emergency; improvement of record
systems; development of standard procedures, equipment
1/ MS, Major Accomplishments, DD/S Area, 12 October 1955,
SECRET, in MS files.
2/ MS, Accomplishments, Calendar Year 1954, DD/A Area,
SECRET, in MS files.
3/ MS, Major DD/I Area Management Improvements FY 1955,
12 October 1955, SECRET, in MS files.
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and supplies for file maintenance; provision of a forms
control service as a means of reducing the number of forms
used and of improving the forms retained; application of
improved style standards and procedures for preparation
and handling of correspondence; and improvement of admin-
1/
istrative reporting.-
During the period the Records Management Staff con-
ducted surveys in more than two-thirds of the CIA offices
to develop records control schedules. One of the purposes
of these schedules was the saving of office space by the
retirement and destruction of records not in active use
in conformance with the requirements of the Federal Re-
2/
cords Act of 1950.- The schedules were inventories of
the records of each office on which was indicated the
"temporary" or "permanent" character of each file. Tem-
porary records were marked for destruction after varying
lapses of time. The program also included maintaining
storage and reference services for retired records. For
25X1A
1/ CIA Regulation No.~14 July 1951, CONFIDENTIAL,
was the basic regulation on the Records Management
Program during the period. It was explained in
September 1953, RESTRICTED, in Records Center.
2/ Public Law 754.
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this purpose a CIA Records Center was established to
house temporary records for short periods of time and
permanent records indefinitely. During the first part
of the period the Records Center was located in temporary
quarters in Rosslyn, Virginia, but in April 1955 it was
25X1A moved to the installation,
where a building had been especially designed and built
1/
to house CIA records.-
A feature of the Records Management Program was the
designation by each office of an Area Records Officer
who had responsibility for maintaining an internal re-
cords program. 2/ In 1956 the IG recommended that the
designation of such officers be discontinued. The DD/S
stated that he did not believe discontinuance of Area
Records Officers would be practical. Operating Officials
could best avail themselves of the services of the Re-
cords Management Staff through a knowledgeable individual
1/ MS, Records Management Staff, Accomplishments January-
June 1955, 9 August 1955, SECRET, in MS files.
2/ CIA Regulation No.~14 July 1951, CONFIDENTIAL,
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who understood his parent organization and records pro-
cessing.2l/ The Area Records Officer continued to be re-
sponsible for actively supervising the record processing
in his particular office or area daily.
One measure of its accomplishments which the Records
Management Staff used was the amount of records trans-
ferred to the Records Center and the amount destroyed.
Total records in the Center at the end of Fiscal Year
1956 amounted to 27,903 cubic feet, equivalent to 3,488
safe cabinets with a replacement value of over $1,000,000.
Up to this time some 4,875 cubic feet of records had
been destroyed.2/
The Records Management Staff also furnished infor-
mation to the operating offices regarding the Vital Materials
Program. It helped develop Vital Materials Records Sched-
ules for all Agency offices for the deposit of Vital Ma-
terials in accordance with Agency needs and Office of De-
fense Mobilization standards. Deposits were made in the
1/ Memorandum for DCI from DD/S, 20 August 1956, SECRET,
Report of IG's Survey of O/DD/S, MS, and O/GC, in
O/DCI/ER.
2/ Memorandum to C/MS, from Chief/RMS, 16 July 1956, Report
of Accomplishments for the Period 1 January-30 June 1956,
SECRET, in MS files. The MS Chart, Cumulative Receipt
and Disposition of Records at the Records Center by Fiscal
Year, 20 October 1958, SECRET, in HS files, shows the pro-
gram was just getting under way at the beginning of Fiscal
Year 1953. At that time only 2,211 cubic feet of records
were on hand in the Records Center.
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Records Center in the form of microfilm, tabulating
machine cards, and hard copy documents. 1/ In connection
with the annual emergency evacuation exercises (Opera-
tion Alert), offices were asked if the materials were
satisfactory, sufficient, and workable. In 1956 exercise,
no difficulty was experienced in locating and furnishing
asked-for records. 2/
The remaining functions of the Records Management
Staff included forms management, reports management, and
correspondence standards. Many forms were revised and
some were eliminated. The Staff defined and promoted
standards for printing and utilizing forms resulting in
standard sterilization practices, greater utilization
of forms of other Government agencies, improved distribu-
3/
tion of forms, and conservation of supplies of forms.
l/ MS, Records Management Division, Accomplishments
Calendar Year 1954, SECRET, in MS files.
2/ Office of Comptroller, Bureau of Budget Hearings
on FY 1958 Budget, SECRET, in Records Center.
3/ Records Management Staff, Accomplishments January-
June 1955, 9 August 1955, SECRET, in MS files.
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Administrative reports of various components were inven-
toried and appraised and recommendations were made to re-
duce reporting workloads. A handbook was completed on
Correspondence Style Standards and Procedures which de-
scribed :Labor saving practices and established formats and
1/
styles.- Guides on effective letter writing, the use of
form and pattern letters, and correspondence management
were also prepared and disseminated.
The Business Machines Service Staff acted on an
Agency-wide basis as technical advisor on the application
and utilization of business machines and related equip-
ment. It approved purchase or lease of new equipment
and it reviewed the use of such equipment anywhere within
the Agency. 2/ - It was directed to collaborate with the
Machine Division of the Office of Central Reference in
research and development of new machines and techniques
and in giving advice and assistance throughout CIA on
appropriate methods and systems. The Machine Records
Division of the Office of the Comptroller was responsible
1/
2/
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for the development and application of tabulating machine
techniques in the keeping of records, primarily in the
administrative field. It was directed to consult with
the Management Staff on the application of machine methods
to particular situations..
The recommendations of the Business Machines Service
Staff extended to both administrative and operational
activities. In the administrative field it helped revise
the punched-card procedure in the sick and annual leave
field in the Office of the Comptroller, it recommended
use of Flexoprint method for production of Agency supply
catalogs, and it devised procedures for mechanizing the
preparation and maintenance of personnel records. In the
operational field, it developed procedures to apply punched-
card methods to CE operational needs, in collaboration with
OCR it recommended use of Minicard equipment for indexing
and retrieving of intelligence materials, and it directed
the installation of IBM equipment and Flexowriters to
service the Records Integration Division, Foreign Intel-
ligence Staff operational needs. The use of office busi-
ness machines reportedly brought savings in money, time
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and manpower. It also increased the accuracy and the
value of materials processed. 1
-
The Regulations Control Staff was responsible for
assisting in the general development of proposed regu-
latory issuances through advice and editing, assisting
in the formal coordination of proposed regulatory issu-
ances, recommending amendments, revisions or rescissions
of Agency regulatory material, supervising the distri-
bution of regulatory issuances, and maintaining official
records of the coordination and authentication. Its
jurisdiction did not extend to technical publications
for field distribution pertaining only to activities
2/
under DD/P or DD/S for which special security was required.
Among the accomplishments of the Regulations Control
Staff during the period were the incorporation of Confi-
dential Funds Regulations in the Agency regulatory system,
the preparation of a study of regulation distribution
problems, the preparation of a publication of a complete
1/ Management Staff, Business Machines Service, Projects
Completed during Calendar Year 1954, SECRET, Accomp-
lishments, Fiscal Year 1955, 12 October 1955, SECRET,
and Function and Work Accomplishment, 1 July 1955-31
December 1955, 19 March 1956, SECRET, in MS files.
2/. CIA Regulation
SECRET, in Records
Center.
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index of all regulatory issuances, and the processing of
between three and four hundred proposed regulatory
1/
issuances each year.-
Throughout the Agency there was continued interest
during the period in improving the regulatory system.
The DD/S group took the lead in trying to streamline the
regulations so as to simplify reporting and accounting.
Some of the offices under DD/S filled in the gaps and
thoroughly revised the regulations concerning their
activities. This was particularly true of the account-
ing, personnel, and logistics fields. Shortly
after the end of the period under consideration a
special staff began preparing a Regulations Digest for
Small Stations which summarized the regulations in
convenient form and helped guide field/personnel
through the maze of Agency issuances.
1/
2/
Management Staff, Regulations Control Staff, Annual
Review 1954, CONFIDENTIAL, Progress Report, Fiscal
Year 1955, 13 July 1955, SECRET, and Function and
Work Accomplishment, First Half of Fiscal Year 1956,
19 March 1956, SECRET, and Report of Accomplishment,
January through June 1956, 6 July 1956, CONFIDENTIAL,
in MS files.
Work on the Digest was begun in 1957. The first Di-
gest was issued in April 1958. A revision was issued
in 1960.
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Staffing and Career Service in the Support Area
The number of civilian employees in the DD/A--DD/S
group increased from as of December 31, 1952 to
_ as of January 31, 1957. Almost all of this in-
crease came in Communications, Training, Logistics,
Security, and Personnel Offices. 1/ The immediate Office
of Deputy increased three-fold but this was largely the
result of the addition of DD/P/Admire and Regulations
Control. The Office of the Comptroller and the Manage-
ment Staff remained fairly stable during the period.
In relation to the total manpower strength of the Agency,
the DD/S group remained around 30 percent during the
entire period. In other words, it grew about the same
rate as other parts of the Agency.
Each of the six main offices under DD/S had its own
Panel under the Support Career Service Board: Communi-
cations, Comptroller, Logistics, Personnel, Security,
1/ Office of Personnel, Survey Task Force Black Book,
13 December 1954, SECRET, in OP-and Office of
Comptroller, Estimate of Requirements Fiscal Year
1958, Congressional Budget, 1 February 1957,
SECRET, in Records Center Job 59-417.
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and Training. I/ Of the Staffs, just the Medical Staff
had its own Panel, while the others were grouped under the
Administration Career Service Board. As pointed out below,
the Office of Communications was a pilot office for devel-
oping new career service principles.
While the 1960 Survey on Career Service by the IG
was made after the period under discussion, the replies
received from the DD/S components reflected experience
which had been gained during the period 1953-1956. There
was general agreement in the reports of DD/S Office Heads
on the Survey that the IG condemned too strongly the system
and its shortcomings and failed to recognize some accomp-
lishments it had achieved. Most commentators were unwill-
ing to accept the statements or implications that the
career system had failed. There was objection to the idea
that "throughout the Agency career planning is viewed as
a burdensome exercise," that "the Agency has little to
offer young people that will make a career in intelligence
1/ CIA Regulation No
SECRET, 25 May 1953, revised 25
June 1954, revised 25 June 1955, revised 15 December
1955.
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work attractive," and that under the present system there
was little chance for advancement. Implicit in every re-
port was the idea that it would be better to use and
modify existing mechanisms and procedures rather than
scrap what had been achieved and attempt to establish a
1/
completely new system.
1/ Memorandum for DCI from DD/S, 19 May 1960, Subject:
Response to Inspector General's Survey on Career
Service, Tab B, CONFIDENTIAL.
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CIA SUPPORT FUNCTIONS:
ORGANIZATION AND ACCOMPLISHMENTS OF THE DDA/DDS GROUP;'
1953-1956
by DCI/HS
Chapter II. FINANCIAL ADMINISTRATION OF CIA, FISCAL YEARS
1953-19571/
A. Budgeting
General
Responsibility for the financial administration
of CIA continued during the period to be shared by the
Director, the Project Review Committee, the Agency com-
ponents, the Office of the Comptroller, and the Audit
Staff. 1/ Financial management continued to involve three
basic functions: (1) budgeting or planning for securing
and authorizing the use of the financial resources required
to accomplish the program objectives of the Agency;
(2) accounting or controlling the use of the financial
resources and providing the basic records in discharging
the custodial responsibility to the taxpayer through the
Congress, General Accounting Office, and the Bureau of
25X1A
1/ This chapter was drafted by Mr. in March 1960.
2/ Office of Comptroller, Central Intelligence Agency
Budget Process, Formulation, Adoption, Execution,
3 January 1955, SECRET, copy of chart in History of
the Office of the Comptroller, 10 February 1960,
SECRET, in DCI/HS files.
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the Budget for seeing that the funds granted to the Agency
were spent for the purposes intended and within the pro-
visions of Federal laws and regulations; and (3) evaluat-
ing or utilizing financial reports to analyze costs and
program accomplishments in relation to planned operations.
The Director of Central Intelligence continued to
make key decisions regarding the Agency's budget in accor-
dance with general government procedures. He first re-
viewed the summarized office estimates and discussed them
with the Bureau of the Budget for budget ceiling purposes.
He then determined the financial and operating policy and
approved budget allowances for each component within the
budget ceiling agreed to by the Bureau of the Budget. The
submission of Agency estimates to the Bureau of the Budget
and their justification at Bureau of the Budget hearings
were also functions of his office. His approval was then
secured for the changes made necessary by action of the
President on the recommendations of the Bureau of the Budget.
The Director also appeared personally at the hearings
before the appropriation committees of Congress. Finally,
he approved the allocations of the appropriated funds to
CIA components.l/
1/
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The financial administration of CIA was not disturbed
greatly when Mr. Allen Dulles replaced General Smith as
Director of Central Intelligence. A$ Deputy Director of
Central Intelligence from August 23, 1951 to February 26,
1953, Mr. Dulles assisted General Smith in the presentation
of CIA estimates for Fiscal Year 1953 to the Bureau of the
Budget and to Congress. As soon as Mr. Dulles was sworn
in as Director of Central Intelligence on February 26, 1953,
he became fully responsible for the presentation of CIA
Estimates for the Fiscal Year 1954 to Congress.
In making decisions on certain budget matters, par-
ticularly those concerning the DD/P, the Director con-
tinued to be advised by the Project Review Committee. As
of January 1953 the PRC was composed of the DDCI, Chairman,
DD/P, DD/I, and DD/A members, and an Executive Assistant
to the DCL.as Recording Secretary.!/ In March 1955 the
Special Assistant to the DCI for Planning and Coordination
replaced the DDCI as chairman and the IG was added as a
voting member. 2/ The General Counsel and Comptroller were
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named as nonvoting members and the Recording Secretary
was listed without any other designation. These changes
marked the increasing importance of Mr.
the new Chairman, in the top affairs of the Agency. 1/
At the beginning of the period the chief function of
the PRC was the review of projects as it had been from the
time of setting up the committee in 1948. A project was
an operational entity or unit of operations, to which funds
and other resources were allotted for use in performance.
For each project a project outline was required describing
specific objective or objectives, means to be employed,
and support requirements in sufficient detail necessary to
obtain consideration and approval of the project.2/
In preparing a project outline, the originating divi-
sion was directed to cite or quote relevant policy docu-
ments such as NSC directives; State, Defense, JCS or OCB
policy papers; CIA plans and programs; and other documents
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or statements, memoranda, or cables having policy impli-
cations. In addition to the project outline, adminis-
trative plans were required for projects which had to be
conducted under cover or operational circumstances which
did not permit adherence to all relevant Agency regula-
tions and procedures. An administrative plan was a
written document which set forth the authorities and con-
trols which were to govern the conduct of a project entity,
the relationship of the project entity with the Agency,
and internal Agency requirements where it was necessary to
depart from normal Agency requirements. Every proprietary,
large subsidy, and operational investment project required
an administrative plan and other projects might be covered
by an administrative plan when the Deputy Director con-
l/
cerned regarded it as necessary. Except for project
requesting less than $25,000 in any one fiscal year, all
projects required approval by the DCI before they could
receive or spend any funds.
In March 1955, the PRC was also directed to perform
staff functions for the Director in connection with the
1/
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approval of Agency programs. A program was defined as
a major classification of work or effort of an Agency com-
ponent for a fiscal year which involved a comprehensive
plan of stated strategy to accomplish stated objectives.
Programs presented for approval included all new projects
and support activities as well as projects and support
activities that were approved in the prior fiscal year or
years and were being recommended for continuance during
the current fiscal year. 1-/ In making recommendations to
the Director, the PRC was directed to consider from the
point of view of the Agency as a whole all projects, plans,
and operational activities in terms of the following criteria:
consistency of what was proposed with Government policy;
need for what was proposed, including evaluation of the
relative worth of anticipated results; feasibility of what
was proposed, including security considerations; and con-
sonance of what was proposed with budget presentations
and limitations and with support capabilities. 2/ The
1/
2/
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Agency's activities approval system was an integral part
of the budget system in that it was the mechanism by which
the Agency's assigned missions were developed and trans-
lated into terms of manpower, material, and money require-
ments. This approval system also established the device
by which Agency officials, subsequent to the appropriation
of funds, were authorized to spend the resources available
1/
for the accomplishment of the Agency's assigned missions.
At the time that this system was initiated in 1955, only
2/
the activities of DD/P were on a program basis.-
The CIA components were involved at many points in the
3/
budget formulation process. About thirteen months prior
1/
2/
3/
The role of the PRC is presented graphically in
Program, & Resources Control Flow for Fiscal Year 1959
Activities, prepared by Office of Comptroller,
14 November 1958, SECRET, copy in O/DCI/Historical
Staff files. The periods chartered began in September
1956.
It should also be pointed out that it was the responsi-
bility of the PRC to scrutinize proposed projects in
order to determine whether the research about to be
launched with CIA funds did not legitimately fall with-
in the area of Foundation - supported research. . .
Comment by DCI/HS, 1963.
Comptroller, History of the Office of the Comptroller,
10 February 1960, SECRET, in O/DCI/Historical Staff
files. This document is an incomplete introduction
to the subject informally submitted by
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to the beginning of the fiscal year they prepared the
preliminary estimates which were the basis for subsequent
presentations, the first of which was at the hearings held
by the Comptroller. These estimates were over-all office
requirements presented on a program basis and were designed
to help the Director make the final determination as to
direction and scope of the Agency programs. The com-
ponents then compiled detailed justifications of the
allowances made to them by the Director to be used in
preparing estimates to be submitted to the Bureau of the
Budget some eight months before the beginning of the fiscal
year. The supporting document was in much more detail and
was designed not only to present the program requirements,
but to give the organizational and object support of those
requirements. The components then contributed their share
to the Congressional Budget Submission which represented
the budget for the Agency that the President was willing
to recommend to Congress. This presentation was similar
to that of the Bureau of the Budget submission but it re-
flected any changes that the President directed to be made
in the Agency programs or resources. This stage came three
or four months before the beginning of the fiscal year.
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The Agency components were also involved in all three
stages of the execution of the budget cycle.-- They first
made their contribution to the Operating Budget Estimates
which reflected their current estimate of their program
requirements in relation to the plans presented to Con-
gress and the year just being completed. This stage came
less than one month before the beginning of the fiscal
year and formed the basis on which the Director made deci-
sions on the allocation of resources approved by Congress
in the form of an appropriation. The second stage was the
granting of authorities to operating officials to plan and
conduct activities within financial limitations. The
third stage was the review of execution which consisted
of a continuous analysis of actual operations in relation
to planned budgeted operations using accounting and oper-
ating report data.
Office of the Comptroller
The Office of the Comptroller continued to be respon-
sible for the development and administration of the over-
all budgetary and financial program of the Agency. This
involved staff work in connection with the developing and
1/ Ibid.
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justifying to the Bureau of the Budget and the Congress
annual budget estimates; formulating and administering a
program of budgetary execution; and establishing account-
1/
ing and financial policies and procedures.-'
The Office of the Comptroller maintained close liaison
with all offices within the Agency in connection with pro-
cedures involving the internal administration of budgetary
and fiscal affairs.
External budgetary and fiscal activities of the
Office of the Comptroller required coordination and liaison
with Committees of Congress, the Bureau of the Budget,
Treasury Department, General Accounting Office, Departments
of State, Defense, Army, Navy, Air Force, and other govern-
mental agencies. Continued liaison was exercised with
20 March 1953,
25X1A 1/ CIA Regulation No.
revised 18 January 1954, 5 April 1954, 17 February
1956, SECRET, in Records Center; Office of Comptroller,
History of the Office of the Comptroller, 10 February
1960, SECRET, in O/DCI/HS files; CIA, Organization
Charts and Functional Statements, Fiscal Year 1958,
30 September 1956, SECRET, in Records Center Job
59-417.
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budgetary and fiscal officials in other agencies to
insure that financial processing met security require-
ments. 1/
During the period the Office of the Comptroller con-
tinued to exercise great care in safeguarding the secrecy
of the budget. Only those within the Agency who needed
to know were given access to the overall budget estimates
in their various stages.
In dealings with the Bureau of the Budget the Comp-
troller was circumspect regarding the information divulged.
In general, detailed information regarding clandestine
operations was revealed only in personal conversation
between the Director of Central Intelligence and the
Dorector of the Bureau of the Budget. As a high CIA of-
ficial stated the policy, it was inappropriate to provide
detailed answers to Bureau of the Budget officials below
the Budget Director without prior instructions from the
1/
A summary statement of reimbursements and advances to
other agencies during the period may be found in
Office of Comptroller, Submission to Bureau of the
Budget for Fiscal Years 1955, 1956, 1957 and 1958,417.
SECRET, in Records Center Jobs 58-436, 58-437, 59 was
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DCI. He also stated that it was inappropriate to provide
any answers in writing. l/ In
practice these policies were
hard to enforce as the Director of the Bureau of the Budget
relied upon his staff for recommendations regarding CIA's
budget.
In dealings with Congress on budget matters, CIA was
careful to limit its disclosures. The oral proceedings
were all in executive session. Brief summaries, classified
"SECRET," of CIA's budget estimates were furnished only to
members of the small and selected subcommittees of the
appropriations committees of the House and the Senate.
Written answers to some questions asked by members of these
committees were classified "TOP SECRET," were retained in
the custody of CIA and were shown to members of the sub-
2/
committees only on request." The Chairman of the House
subcommittee indicated that the other members of the
1/
Memorandum for the Record from C/Admin/DD/P,
1953, SECRET, in Fiscal Year 1955, Bureau of
Budget Submission Material, in Records Center
28 March
the
Job
58-436.
2/
Memorandum for the Record from C/BD, 3 August 1957,
SECRET, in House Appropriations Committee Hearings
FY 1958 Budget, in Records Center Job 59-417.
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Appropriations Committee would not be authorized to obtain
information about the Agency. He also claimed that there
had been no leaks of information by the members or staff
of his subcommittee. l/
The Comptroller, Mr. Edward R. Saunders, furnished
organizational continuity during the period. His tenure
dated back several years before 1953 and he continued to
serve uninterruptedly as Comptroller during the period and
beyond. 2/ During two official absences of about two months
each, the Acting Comptroller was Mr. hose
3/
regular position was Deputy Comptroller.-
2/
3/
Memorandum for the Record from C/BD, 21 March 1955,
SECRET, in FY 1956 Congressional Material, in Records
Center Job 58-436 and Memorandum for the Record from
C/BD, 29 June 1957 SECRET, in folder cited in foot-
note 2, above.
Mr. Saunders was appointed Comptroller in January 1951.
See CIA General Order No.~January 1951, SECRET,
in Records Center. He began his service in CIA's
financial-management organization in 1946 and from 1943
through 1945 he had served in the Budget and Procedures
Branch of OSS.
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The internal organization of the budgetary, finance
and accounting activities of the Office of the Comptroller
remained unchanged during the period. There were two
staffs; the Technical Accounting Staff and the Program
Analysis Staff, and three line divisions; the Budget Divi-
sion, the Fiscal Division which was concerned principally
with vouchered funds, and the Finance Division which
administered the confidential funds program. l/
The size of the staff of the Comptroller that was con-
cerned with financial administration did not change greatly
during the period. The on-duty strength remained at
slightly less than = for each fiscal year. Of this
Other activities performed by the Office of the Comptroller,
requiring additional personnel, are discussed elsewhere.3/
1/ For other activities of the Office of Comptroller,
see below.
2/ Office of the Comptroller, Bureau of the Budget Sub-
missions for Fiscal Years 1955, 1956, 1957 and 1958,
SECRET, in Records Center Jobs 58-436 58-437, 59-417.
3/ At the beginning of 1953 the Organization and Methods
Service was in the Office of the Comptroller. On
April 5, 1954, the Management Improvement Service (as
O&M had been renamed) was transferred to the immediate
office of DD/A. See above. On February 8, 1954, the
Machine Records Division was re-assigned to the Compt-
roller from the General Services Office, which was be-
ing liquidated. The MRD continued under the Comptroller
to the end of the period and beyond.
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The Budget Division of the Office of the Comptroller
rendered advice and assistance to all organizational com-
ponents of the Agency in the preparation of annual budget
estimates. It analyzed and consolidated data received from
other offices and prepared the annual budget estimates for
the Agency as a whole at each step in the budget process.
It administered and controlled the funds acquired by the
Agency through a planned budget execution program. It also
established and supervised the maintenance of records relat-
l/
ing to the budgetary activities of the Agency.
In 1954 the Budget Division indicated that one of its
objectives for the coming fiscal year was the preparation
and issuance of a budget manual in regulation form to re-
place budget notices. In 1956 drafts of a proposed Agency
budget regulation and three supporting handbook chapters
were prepared and distributed to all offices for coordi-
nation.2/ The necessary approvals were not obtained for
these proposed issuances so the Division has to rely upon
1/ CIA, Organizational Charts and Functional Statements,
Fiscal Year 1958, 30 September 1956, SECRET, in Records
Center 59-417.
2/ CIA, Estimates for Fiscal Year 1958, Bureau of the
Budget Submission, 30 September 1956, SECRET, p. D-3-6,
in Records Center Job 59-417.
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Budget Cycles for Fiscal Years 1953 through 1957
Before taking up the history of each fiscal year, a
few general observations about some of the peculiarities
of CIA's budget process are in order. In view of the
Agency practice of activating new projects to exploit
targets of opportunity whenever fortuitous circumstances
indicated a possibility of success, it was difficult to
anticipate long in advance the exact nature of the finan-
cial support that might be needed. Particularly in the
early part of the period, the Agency requested more funds
that it found later it could use.
Another characteristic of CIA's budget was the dis-
tribution between the fund for operations and the reserve
fund for contingencies. The fund for operations was the
fund for those continuing and planned activities that
could be justified on the assumption that the general
international situation would remain substantially as it
was during the fiscal year which has just been completed.
The fund for operations was backed by experience and by
plans which assumed no startling new developments. The
reserve fund for contingencies, on the other hand, was a
special fund which could not be used unless some new and
unexpected crisis occurred which could not be met out of
regular funds in connection with intelligence and cold war
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"'" 25X1 A
operations. Emergency CIA actions called for by National
Security Council directives required swifter procedures
than the supplemental Congressional appropriation which
took eighteen months. In July 1951 CIA in a submission
to the Bureau of the Budget for Fiscal Year 1952 included
an item of dollars to provide for a con-
tingency fund. l/ The DCI stated that this contingency
fund had the informal concurrence of representatives of
the JCS, and the Departments of State and Defense, after
a review of current commitments and programs in relation
to the international situation.2/ Congress authorized a
contingency fund of this size for Fiscal Year 1952 on the
condition that it could be used as released by the Bureau
of the Budget. When an emergency arose, what usually
happened was the National Security Council directed CIA to
take appropriate action. If CIA lacked the funds to meet
the crisis, it requested the Bureau of the Budget to re-
lease the funds needed from the emergency fund. The
Bureau of the Budget, on its part, was primarily concerned
1/ Letter from DCI to Mr. Lawton, Director of Bureau of
the Budget, 6 April 1951, SECRET, in O/DCI/ER Bureau
of the Budget folder.
2/ Ibid.
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with whether the activity had been contemplated in the
preparation of the annual budget and whether the increase
could be absorbed within the regular funds. An appeal
could be made to the President from a decision by the
Bureau of the Budget. During the period, CIA considered
making an appeal to the President on several occasions,
but the questions were settled by negotiations with the
Bureau of the Budget. In general, the Bureau of the Budget
acted favorably on requests for releases from the con-
tingency fund and the device worked smoothly. 1/
The need for security furnished an additional reason
for the CIA contingency fund. The nature of the objectives
which Congress and the National Security Council set for
CIA and the methods that had to be used to achieve these
objectives demanded concealment of the size of funds
involved. Information regarding the Agency's budget was
obviously a priority target for hostile intelligence
services. It was much easier to conceal a release from
the reserve fund than it was to conceal a request and
hearing on a supplemental appropriation which had to come
1/
Memorandum for the Record, 3 September 1959, Subject:
Conversation with Mr. Comptroller's
Office, regarding CIA's Budget History, 1953-1957,
SECRET, in O/DCI/HS files.
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separately before Congress.
As far as the preliminary estimates and the authority
approved by Congress were concerned, the Budget for Fiscal
Year 1953 was the largest during the period. The call for
the preliminary estimates for this fiscal year to be sub-
mitted to the Comptroller by each Assistant Director was
sent out in August 1951.1/ At this time the various of-
fices thought they needed substantial increases in their
financial sources. OPC and Communications projects were
being activated on an ever-increasing scale.-g/ The
1/ CIA Notice No. 27 August 1951, called for
in Records Center.
Fiscal Year 1953, CONFIDENTIAL,
2/ Office of Comptroller, Historical Notes re: Budget and
Finance Activities, 20 September 1945--28 January 1952,
8 May 1952, TOP SECRET, No. 74650, in O/DCI/HS files.
3/ Office of Comptroller, History of CIA Budget Requests
and Funds Avability, Fiscal Years 1952-1957, July 1959,
SECRET, submitted to Historical Staff, O/DCI/HS.Refer-
ences in following pages on Table will refer to this
document. Since the figures in these tables are based
on accountings made after the preparation of the
Estimates for Fiscal Year 1958 and earlier years, they
do not agree in every case with figures found in the
earlier budget books.
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the offices in the fall of 1951./
The execution of the Budget for Fiscal Year 1953
marked a further scaling down of the Agency's financial
requirements. The rate of obligation for the first half
of the fiscal year was kept low pending the completion of
2/
a thorough internal re-examination of all programs.-
During this same period no releases from the contingency
fund were requested of the Bureau of the Budget. Shortly
after his inauguration on January 30, 1953, President
Eisenhower announced a policy of careful review of federal
expenditures with a view to a balanced budget. The new
Director of the Bureau of the Budget sent a letter to all
agencies on February 3, 1953 regarding economies to be
effected in personnel, construction, and programs. General
Smith had already announced a reduction in the personnel
ceiling and the new Director of Central Intelligence,
Mr. Dulles, continued this policy.3/ As Acting Director,
1/ Ibid.
2/ Office of Comptroller, Draft of letter to Director of
the Bureau of the Budget from DCI, SECRET, attached to
transmittal slip dated 9 March 1953, in Fiscal Year
1955 Bureau of Budget Submission Material, in Records
Center Job 58-431.
3/ Minutes of the Staff Conference Held in Director's Con-
ference Room, 9 February 1953, SECRET, SC-M-13, in
HS files.
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Mr. Dulles sent a request on February 12, 1953 to his
Deputy Directors to review the budget requirements for
the Fiscal Years 1953 and 1954.1/ The revised estimates
showed that an estimated saving of 48 million dollars
could be made for Fiscal Year 1953 and this amount was
transferred from operations to the contingency fund.2/
Since CIA made no requests of the Bureau of the Budget
for the release of funds from the contingency fund during
the balance of the fiscal year, the fund at the end of
the fiscal year amounted t 25X1A
When accounts for the Fiscal Year 1953 were completed
1/ Memorandum for Deputy Directors from Acting Director,
12 February 1953, Subject: Review of 1954 Budget
Requirements, RESTRICTED' in O/DCI/ER, Comptroller file.
2/ Congressional Budget, Fiscal Year 1958, abbreviated
version, SECRET, p. 4, in Records Center Job 59-417.
3/ Table Obligations are defined as amounts of orders
placed, contracts awarded, services rendered and/or
directed, and similar transactions made by or on
behalf of the Agency to individuals, prive organi-
zations, other government agencies, foreign govern-
ments, or legal entities, requiring future payment
upon the fulfillment of prescribed conditions.
19 May 1956, SECRET
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and paramilitary programs by a review committee of the
DD/P.1/ In February 1953 the new Director of the Bureau
of the Budget also asked for a review of the estimates
for Fiscal Year 1954. Bureau of the Budget officials
raised the following hypothetical question, "If the Agency
budget for Fiscal Year 1954 were drastically cut (approx-
imately 25 percent), what would the Director recommend to
2/
riority." The appropriation
eliminate and in what p
finally approved by Congress for Fiscal Year 1954 was for
When the accounts came in they showed the funds obli-
ollars 25X1A
gated for the Fiscal Year 1954 were
1/ Because this review committee recommended the elimi-
nation of so many projects, it was called the "Murder
Board." A reference to it appears in Memorandum for
DCI from C/PPC, 30 March 1953, Subject: Possible 25%
Budget Cut in FY 1954, TOP SECRET WORKING PAPER, Records
1955 Bureau of the Budget Submission Material,
Center Job 58-436. The full records of this review
committee are in the DD/P files.
2/ Memorandum for the Record from C/Adm/DD/P, 28 March
h
1953, Subject: Fiscal Year 1954 Budget Disc1ssionuwith
Bureau of the Budget officials, SECRET, of the Budget Submission Material, Records Center Job
58-436.
3/ See Table.
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dollars, an amount which was fairly close to the appro-
priation for operations and which was 14 million dollars
less than the obligations for the preceding fiscal year.
Actual expenditures were dollars. This marked
the low point in obligations and expenditures for the
period under discussion. A comparison of obligations by
major activities for the two fiscal years shows that about
dollars less was obligated for paramilitary
1/
activities for Fiscal Year 1954 than for Fiscal Year 1953.-
The reduction in obligations for paramilitary activities
was partially offset in the total reduction figure by an
increase in obligations for covert collection of intel-
ligence.
The contingency fund for Fiscal Year 1954 was not
obligated. Z/ While the Bureau of the Budget approved of
releases of nearly dollars from this fund, CIA 25X1A
1/
2/
The obligations for Fiscal Year 1953 by Major Activity
are given in Congressional Budget for Fiscal Year 1955,
SECRET, p. 8 and obligations for Fiscal Year 1954 by
Major Activity are given in Congressional Budget for
Fiscal Year 1956, SECRET, p. 8 in Records Center Job
58-436.
See Table, Reserve for Contingencies, Fiscal Year 1952
through Fiscal Year 1957, in Congressional Budget,
Fiscal Year 1957, SECRET, in Records Center Job
58-437.
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did not find it necessary to use this authority since the
unobligated balance from the appropriation authority for
operations was sufficient to meet the emergencies. An
understanding existed with the Bureau of the Budget that
the contingency fund would be obligated only if other funds
were not available.
The office estimates for Fiscal Year 1955 amounting
to dollars were compiled before Congress passed
the budget for Fical Year 1954. CIA like other agencies
of the government was given by the President a 1955 budget
1/
allowance at the same level as the 1954 appropriation.-
By this time the Korean Armistice had been signed (July
1953). Nevertheless, the DCI presented an estimate for
Fiscal Year 1955 to the Bureau of the Budget in October
1953 which was dollars higher than the 1954
authority. This request for "supplemental" funds was
made on the ground that the operating program was too tight
2/
and inflexible.
The Bureau of the Budget did not approve
1/
Draft of the Opening Statement on the 1955
Presentation to the Bureau of the Budget,
1953, SECRET, in 1955 Bureau of the Budget
Material, in Records Center Job 58-436
Budget
22 October
Submission
2/
Ibid. This was not a supplemental request to Congress
but a request directed to the Bureau of the Budget for
more funds than the President's ceiling.
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of this request for "supplemental" funds and recommended
that the President present to Congress the same estimate
as he had presented for the preceding fiscal year, a. total
reserve fund for contingencies. In defending the estimates
before the subcommittee of the House Appropriations Com-
mittee in March 1954, the DCI proposed that the reserve
fund for contingencies be appropriated on a no-year basis
1/
and the unobliga.ted balance be carried over each year.
CIA officials had earlier explained that this procedure
would produce a. substantial saving in the Government's
cash budget and would reduce the amount of the CIA budget
2/
which had to be hidden in various appropriations.
Congress acted favorably on the idea. of a carry-over and
authorized for the Fiscal Year 1955 the carrying forward
of the sum of dollars which had been originally
3/
appropriated for the Fiscal Years 1953 and 1954. This
1/ Draft of Opening Remarks of the Director for appearance
before the House Appropriations Sub-Committee, 16 March
1954, SECRET, in 1955 Congressional Material, in
Records Center Job 58-436.
2/ Memorandum for DCI from Legislative Counsel, 7 January
1954, Luncheon on 11 January 1954 with Congressmen
Tabor and Scrivner, SECRET, in Ibid.
3/ Office of the Comptroller, Draft of Memorandum for
Appropriation Committees, 7 March 1955, SECRET, in 1956
Congressional Material in Records Center Job 58-436.
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lowest office estimates presented during the period.
Before presenting the budget to the Bureau of the Budget
million dollars for contingency reserve. These were the
less were obligated for paramilitary activities for Fiscal
Year 1955 than for the preceding fiscal year.
The Office Estimates for Fiscal Year 1956 as prepared
in June 1954 were based on actual and estimated obligations
1/
for Fiscal Year 1954 and Fiscal Year 1955 respectively.-
As compiled by the Office of the Comptroller the Office
Estimates for Fiscal Year 1956 totalled dollars 25X1A
of which dollars were for operations and _ 25X1A
dollars were for the reserve fund for contingencies.--
In discussing this request for Fiscal Year 1956 at the
Bureau of the Budget hearings held on October 27, 1954,
General Cabell indicated that the covert collection of
intelligence and political and psychological activities
would be increased slightly over current levels while the
1/
Memorandum for DD/A from C/Admin/DD/P, 11 June 1954,
Subject: DCI Meeting with Director of Bureau of the
Budget, SECRET, in FY 1956 Budget - Covert Collection
of Intelligence (FI Operations) in Records Center Job
2/ See Table.
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activities would be reduced. He added that
it was a matter of long term Agency policy to continue
strengthening covert collection of intelligence by all
means available including scientific means. I/ The Bureau
of the Budget recommended for the first and only time dur-
ing this period that the President present the requested
figure to Congress unchanged. The funds requested were
the same as those appropriated for the two preceding
fiscal years except for a dollar reduction in 25X1A
the contingency fund. CIA's budget was now on a plateau
of cold war operations.
In March 1955 when the Agency defended the request
for Fiscal Year 1956 before the House Appropriations Sub-
committee, it was too late in the Budget cycle to make a
request for new funds to restore the reserve on which
there had been a heavy drain during Fiscal Year 1955.
Such a request should have been started with submission
to the Bureau of the Budget the preceding fall and at
that time the releases from the reserve were yet to come.
The DCI proposed that Congress continue to make the un-
obligated balance of the reserve fund available from year
1/
Statement of General Cabell at Bureau of the Budget
Hearings, 27 October 1954, SECRET, in 1956 Bureau of
the Budget Hearing Material, in Records Center Job
58-436.
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million dollars. Of this carry-over,
Congress voted new appropriation authority for
dollars for Fiscal Year 1956 and provided for a limited
carry-over of unobligated funds amounting to only ~
to year and that it also make available from year to year
unobligated balances from operations for prior years
dollars.1/ 25X1A
which at that time amounted to 25X1A
25X1A
25X1A
went for operations leaving a contingency fund of around
million dollars. For Fiscal Year 1956, funds avail I.e
for operations remained at dollars, the same 25X1A
as for the two preceding years, but with the reduction of
25X1A
the reserve fund the total funds available dropped from - 25X1A
dollars
million dollars for Fiscal Year 1955 to
for Fiscal Year 1956, the lowest figure for the period.
When accounts came in for Fiscal Year 1956, they
showed obligations of dollars as compared with
25X1A dollars for Fiscal Year 1955. These obligations
1/ Draft of Opening Remarks of the Director to the House
SECRET, in
Appropriations Committee, 8 March 1955,
Records Center Job 58-436. Congressional Budget fords
Fiscal Year 1958, 1 February 1957, p.
Center Job 59-417, gives list entitled: "Non-Budgeted
Financial Requirements Presented to the Burear of the
Budget and Released from the Reserve Fund for Con-
25X1A tingencies for Fiscal Year 1955." The total relleaased
amounted to dollars. December 29, 1
was the last approva date listed. The releases thus
came before the Fiscal Year 1956 Congressional Budget
presentation, but not in time to be included in that
presentation. 82
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for Fiscal Year 1956 were, however, dollars
over the original appropriation for operations. As in
the case of Fiscal Year 1955, this excess of obligations
over the original operations authority can be accounted
for by releases from the reserve for contingencies
authorized by the Bureau of the Budget. When the two
funds were combined, obligations equalled the total funds
available. Actual expenditures for Fiscal Year 1956 were
The substantial releases from the reserve fund which
were approved by the Bureau of the Budget for Fiscal
Years 1955 and 1956 required a continued financing of the
1/ See Table.
2/ Congressional Budget for Fiscal Year 1958, 1 February
1957, SECRET, p. II-D, in Records Center Job 59-417.
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operations either from the reserve fund or from an
1/ The
increase in the appropriation for operations.
office estimates of dollars for operations
for Fiscal Year 1957 were based on the assumption that
the appropriation for operations should be increased.
In September 1955 in his appearance before the Bureau of
the Budget the Deputy Director defended the submission of
a request for dollars for operations rather
than the dollars which had been appropriated
for each of the preceding three fiscal years.2/ All
but of this was approved by the Bureau of the
Budget and by Congress. 3/
The releases from the reserve fund likewise had the
effect of depleting the reserve fund since the Agency had
not had time to ask for new authority for Fiscal Year 1956
to replenish the reserve fund. In defending the request
1/ Office of the Comptroller, Memorandum for DD/S from
C/BD, 1 December 1956, SECRET, in Bureau of Budget
Allowances-Fiscal Year 1958 Budget, in Records Center
Job 59-417.
2/ CIA, Estimate of Requirements Fiscal Year 1957, Bureau
of the Budget Submission, 30 September 1955, SECRET,
in Records Center Job 58-437.
3/ See Table.
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for Fiscal. Year 1957 before the Bureau of the Budget in
October 1955, the Deputy Director stated that the con-
tingency fund would be low by the end of Fiscal Year
1956 and he presented the request for new authority to
1/
build this fund up to dollars. On the
recommendation of the Bureau of the Budget, the President
reduced the reserve fund to dollars and Con-
2/
gress concurred in this.
Summary
Looking back over the five fiscal years beginning
with the Fiscal Year 1953 and ending with the Fiscal Year
1957, certain trends stand out. Total CIA appropriations
passed Congress (resources available) dropped from a high
1/
Ibid. and Draft, Statement of General Cabell at Bureau
of the Budget Hearings, 13 October 1955, SECRET, in
Congressional Budget Material FY 1957, in Records
Center Job 58-437.
2/ See Table.
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Section 10 of the Central Intelligence Act of 1949
stated in part:
Section 10.(b) The sums made available to
the Agency may be extended without regard to the
provisions of law and regulations relating to
the expenditure of Government funds; and for
objects of a confidential, extraordinary,
emergency nature, such expenditures to be ac-
counted for solely on the certificate of the
Director and every such certificate shall be
deemed a, sufficient voucher for the amount
therein certified.l/
The CIA General Regulations on Confidential Funds
interpreted this law as meaning that Congress is granting
this extraordinary authority for expenditure of public
funds was voicing its determination to afford the Agency
all of the means that might be required in the performance
of its mission. The Regulation further stated that
Congress, in effect, gave recognition to the following
principles:
a. Intelligence operations require the use
of methods which do not always conform to law or
regulation. No law could be drafted to contain
all of the precise authorities and policies
needed for the conduct of intelligence operations.
infor-
andother
b. Power to iscal
methods
mation revealing the sp
1/
For discussion of this law, see Historical Study ofce
the Usf of theeGeneralfCounsel, January 1953, SECRET, in
of
HS files.
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of intelligence operations, or the identities
of persons so engaged from unauthorized dis-
closure is essential la a secure and effective
intelligence service.-
The law was interpreted as meaning that for the
support of strictly covert operations and for extra-
ordinary or emergency requirements, where the nature of
CIA activities precluded compliance with other statutes
and procedures and normal Government audit by the General
Accounting Office, CIA funds would be expended under the
authority cited above which made the certification of the
Director of Central Intelligence a final accounting to
all outside agencies. This permitted the Agency to con-
duct all audits internally on what it called confidential
or unvouchered funds. Confidential funds were those funds
which did not have to be accounted for in detail outside
the Agency. Instead these funds were obligated and expended
under authorities and regulations prescribed by the
Director of Central Intelligence and were accounted for
to the Department of the Treasury and the General Account-
ing Office without disclosure of details involved solely
1/
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upon the certification of the Director that the amounts
indicated were property expended for confidential
1/
purposes
The Agency interpretation of the law continued to be
that large portions of its headquarters activities, while
highly classified, could be audited securely in confor-
mance with normal Government procedures and were, there-
fore, subject to standard Government law and regulations
and a final audit by the General Accounting Office. The
funds used for these activities were, therefore, called
vouchered funds and it was the responsibility of Agency
officials to see that vouchered funds were used insofar
as operational security and requirements of operations
would permit.2/
All obligations and expenditures, vouchered and un-
vouchered, had to be accounted for, and the degree and
form of accounting had to be the optimum compatible with
the maintenance of reasonable security for Agency oper-
ations and the protection of the sources of intelligence.
This standard was an expression of the belief that ac-
curate and informative financial reporting, as well as
1/ Ibid.
2/ Ibid.
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being a deterrent to the misuse or loss of funds, was a
primary tool for the exercise of efficient management
and direction of an intelligence organization.-
Early in 1953, Mr. Dulles expressed a great concern
regarding responsibilities which went with the financial
powers of the Agency:
President Eisenhower said to General Cabell
and me the other day, very earnestly: "Your agency
has the largest amount of unvouchered funds of any
agency in government. I realize that it is neces-
sary that you have them. But those unvouchered
funds must be a sacred trust; and you must see to
it that there is no abuse of the confidence and
privilege which is reposed in you and in the Agency
in handling those funds." I want that word to go
right through this Agency. I'm going to watch the
use of unvouchered funds with the greatest care
and see that they can be justified in their expen-
diture just as much as other funds, even though we
have V e privilege of not advertising how we spend
them.-
Accounting Activities of the Comptroller
The Fiscal Division of the Comptroller's Office con-
tinued to be responsible for administering the accounting
and pre-audit control of vouchered funds, that is, funds
for which the final audit was performed by the General
1/
Ibid.
2/
CIA Office of
Training,
Training Bulletin No. 5,
31 March 1953,
in OTR files.
Remarks
of Allen W. Dulles, SECRET,
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Accounting Office. The Division, in addition to main-
taining accounting reconciliation and appropriation
reporting control of all CIA and NSC funds, maintained
allotment accounting for all vouchered activities, pre-
audited all vouchered funds expenditures, and prepared
and pre-audited payrolls of all vouchered personnel,
keeping related individual employee records of leave,
income, differentials, allowances, retirement, taxes and
bond purchases. The Division prepared financial reports
as required, performed working liaison with the General
Accounting Office, Treasury Department, Departments of
State and Defense, the Civil Service Commission, and
other agencies on matters relating to vouchered fiscal
activities, and prepared inquiries and replies regarding
General Accounting Office questions and exceptions.
During the period a number of improvements were
made by the Fiscal Division in its accounting systems.
The adoption of better procedures resulted in a decrease
in the lag time for recording transactions, a reduction
in posting errors, a reduction in delinquent accounts
1/
and in the time required to handle them. With the
1/ Management Staff, Major Accomplishments, DD/S Area,
First Half of Fiscal Year 1955, 12 October 1955,
SECRET, in MS files.
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cooperation of the Treasury Department and the General
Accounting Office, the efficiency and security of dis-
bursing operations were improved by use of mechanical
1/
tabulating devices.-
The Finance Division continued to administer the
unvouchered funds program of the Agency in conformance
with the policies and regulations established by the
Director. A Finance Division Procedures Committee con-
tinued to review and approve Finance Division Operating
Procedures, thereby implementing and interpreting regu-
lations, handbooks, Comptroller Notices, and other Comp-
troller Instructions with respect to accounting and
financial matters at the work leve.2/ During the period
a large proportion of the Confidential Funds Regulations
were revised and re-issued in a new format.
Since the overseas activities were supported by
unvouchered funds, the Finance Division supervised the
accounting and pre-audit of these activities. It assigned
1/
2/
CIA Estimates for Fiscal Year 1957, Bureau of the
Budget Submission, 30 September 1955, SECRET, in
Records Center Job 58-437.
CIA Estimates for Fiscal Year 1957, Bureau of the
Budget Submission, 30 September 1955, SECRET,
p. D-4-5, in Records Center Job.
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additional employees and additional certifying officers to
field stations and as a. result established additional
Class A stations, thereby permitting further decentral-
ization of activities to field stations since Class A
stations were of the size and complexity to justify local
accounting with monthly, quarterly, and annual reports to
1/
Headquarters. The Division also increased the number
of visits to field stations by Finance key personnel
resulting in on-the-spot review of financial and account-
ing operations, discussion of problems, and improved
2/
relations between field personnel and Headquarters.
During the period improvements were made in account-
ing systems for proprietary and special projects. An
Agency regulation was developed and issued which set
forth the financial requirements for special projects
(proprietary, subsidy, and others) relating to budgeting,
3/
funding, accounting, and financial reporting. The
2/ CIA Estimates for Fiscal Year 1957, Bureau of the
Budget Submission, be. cit.
3/
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Finance Division extended detailed budget and related
funding controls to several major proprietary projects.
The device of the administrative plan was used to
describe the special procedures needed for a given project.
In very rare cases (for 1954, 2 percent of all projects)
the magnitude or sensitivity of the project made the admin-
strative plan procedures unsuitable and the project oper-
ated under a blanket waiver authorized by the Director. 1/
The Inspector General recommended in 1954 that certain
minimal standards should be established and enforced for
all projects granted blanket waivers, such as: consul-
tation with the Comptroller's staff, avoiding large lump
sum payments to a principal, and requirement of summary
2/
accounting statements from the operations officer.- The
Comptroller pointed out that these recommendations,
although basically sound, might not be applicable to
every project, and it was impracticable and unwise to
attempt to force these few highly unusual projects into
3/
a mold.-
1/ Memorandum for DCI, through DD/P and DD/S from Comp-
troller, 28 April 1956, Subject: Blanket Waivers,
SECRET, in O/DCI/ER, DD/S 1955-1956 file.
2/ Ibid. Annex A, Extract from IG Survey of the Office
of-'the Comptroller, 20 October 1954, TOP SECRET,
No. 103026.
3/ Ibid.
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In cooperation with the Office of Logistics and the
Audit Staff, the Finance Division continued during the
period to develop procedures for financial and accounting
control of Agency property and equipment in depots and 25X1A
1/
field stations.
for management officials, with special attention to value
2/
of property issuances from stores.- In Headquarters
electric accounting machines were used in maintaining
financial property accounting records inasmuch as these
machines were adaptable to the type of work and there was
sufficient volume of such transactions to make their cost
of operation cheaper than that of the manual method. In
a field installation, however, a two year trial of the
machine method for maintaining property records, includ-
ing financial property accounting, disclosed that the
system was not effective in providing current management
1/ On Office of Lpgistics, see pp. 416.
2/ CIA Estimates for Fiscal Year 1958, Bureau of the
Budget Submission, 30 September 1956, SECRET, in
Records Center Job 59-417.
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reports on a timely or realistic basis because of com-
munications problems and the volume of property trans-
actions was not sufficient to justify use of machine
methods. A manual system for property financial account-
1/
ing was then installed in this field installation.-
1/ Bureau of the Budget Hearings on FY 1958 Budget,
26 October 1956, SECRET, in Records Center Job
59-417.
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Audit Staff
During the period the audit functions of the Agency
were clarified and re-emphasized by a number of regula-
tory issuances. A March 1953 statement of the mission of
the Auditor-in-Chief said that he was responsible for the
audit (exclusive of internal audit) of all finance, fiscal,
and property matters not under procedures laid down by the
2/
General Accounting Office. In other words, the emphasis
was on the final audit of all financial accounts involving
unvouchered (confidential) funds. This was a post-audit
which was a verification that the financial records in-
volving unvouchered funds were accurate as compiled under
the supervision of the Office of the Comptroller. Since
two-thirds of the expenditures were unvouchered during the
period this was a major task.!/
In August 1954 a much
1/
CIA Congressional Budget Material Fiscal Year
undated but probably February 1954, SECRET, in
Center Job 58-437.
1957,
Records
2/
CIA Regulation No. 20 March 1953, SECRET, in
Records Center.
3/
See below, p. 113.
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more comprehensive statement of the audit mission was
issued which made it clear that the Auditor-in-Chief was
also responsible for the review of procedures for con-
ducting internal audits of vouchered funds prior to final
1/
audit by the General Accounting Office.- This Regulation
likewise directed the Auditor-in-Chief to report to the
Director any activities of the Agency which he found as
a result of his audit to be uneconomical, inefficient, or
improper and to recommend to the Director and the appro-
priate responsible officials changes in the interest of
efficiency and protection of Government funds and
property.
While there were name changes affecting the auditing
officers, the organizational position of the officers
remained unchanged. From January 1953 to February 1955,
the Auditor-in-Chief and the Audit Office under his
supervision were attached to the immediate office of the
2/
DD/A. The Auditor-in-Chief also supervised the Field
Audit Units. 1/ After the February 1955 reorganization
1/ CIA Re ulation No. 3 August 1954,
SECRET, in Records Center.
2/ CIA Regulation No.- 20 March 1953, Figure 1,
SECRET, in Records Center.
3/ CIA Regulation No. - 3 August 1954, op. cit. 25X1A
1;03
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of the DD/A group into the DD/S group, the Auditor-in-
Chief was renamed Chief, Audit Staff, and reappointed to
the immediate office of the DD/S.1/ The former Audit
Office became the Headquarters Audit Division, Audit
Staff, and the former Field Audit Units became Audit
Staff Branches Offices.
During the period final auditing continued to be dif-
ferentiated from accounting and auditing prior to payment,
from property accountability, from management improve-
ment, and from general inspection, but it was always
closely related to these functions. According to account-
ing theory and practice, the final audit should be inde-
pendent of the pre-audit. The Audit Staff, in making
final audits, was separate from the Office of the Comp-
troller and made an independent check on the pre-audits
performed by the Office of the Comptroller. Both the
Chief, Audit Staff, and the Comptroller, however, were
under the DD/S. The Chief, Audit Staff, reported to the
DCI through the DD/S. These relationships were not
regarded by the Chief, Audit Staff, as limitations on his
l/ CIA Notice No. -
in Records Center.
16 February 1955, SECRET,
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position as an independent auditor. 1/ In property
matters, the Chief of Logistics maintained the property
accountability system and the Audit Staff reviewed the
property accounts. 2/ As the Audit Staff extended the
scope of its audit into a more comprehensive or manage-
ment typo, 3/ its work bordered on that of the Management
Staff and the Inspector General. ?/ The Chief, Audit
Staff, furnished copies of those audit reports to the
Inspector General which he thought might be of interest
to him.
During the entire period, 1953-1956, Major General
was in charge of the Agency audit office,
first as as Auditor-in-Chief, from before 1953 to February
1955, and then as Chief, Audit Staff, from February 1955
through December 1956 and beyond. 5/ After a long career
Chief, Audit Staff, Answers to Questions regarding
the History of the Audit Staff 1953-1956, 6 January
1959, SECRET, in O/DCI/Historical Staff files.
2/ See below, p. 109.
3/ Chief, Audit Staff, Answers, 6 January 1959, loc. cit.
4/ See above, p.103 and Memorandum for the Record by
HFG ebruary 1960, Conversation with Mr. James
Comptroller's Office, SECRET, in O/DCI/HS
files.
appointed Chief, Audit Staff by CIA Notice No. 25X1A
16 February 1956, SECRET, both in Records Center.
otice No. 18-Dranuary 1952 SECRET andwas
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in Army finance, first joined the Agency
in 1951.1/ Mr.
came to the Agency as financial
adviser in July 1951, See Historical Staff, Memo-
randum for the Record, 3 November 1958, Interview
with Chief, Audit Staff, regarding
History of Audit Staff, 1953-1956, SECRET, in
O/DCI/HS files.
Office from before 1953 to February 1955 and of the
Headquarters Audit Division, Audit Staff, from February
1955 until May 1955. 2/ His successor in the latter
office was Mr. , who served from
3/
May 1, 1955,- through December 1956 and beyond.
In performing the final audit of all financial
accounts involving confidential funds, the Audit Staff
continued to make unannounced counts and inspections at
irregular intervals of monies on hand, imprest funds and
other assets; to make periodic bank account reconcil-
iations; to determine whether cash balances were exces-
sive, facilities for safekeeping of cash were adequate,
and reserves established for specific purposes were
1/
2/ CIA Regulation- 28 November 1951, SECRET, and
Notice 14 May 1952, SECRET, both in Records
Center.
3/ CIA Notice No.
Records Center.
was head of the Audit
12 May 1955, SECRET, in
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realistic; and to examine individual financial trans-
actions, payrolls, accountings for advances, and miscel-
laneous expense items. I/ Operating divisions at Head-
quarters took a special interest in audit reports
furnished by the Chief, Audit Staff, and maintained an
active campaign to produce satisfactory replies to items
questioned. Some irregularities were reported involving
considerable amounts of Agency assets but most of these
pertained to older projects which were being liquidated.
The Chief, Audit Staff, stated that a review of all audit
reports made gave assurance that, with minor exceptions,
Agency assets were being accounted for in a satisfactory
2/
manner.-
During the period Audit Staff Branch Offices were
developed in the Far East, in Europe, and in the Middle
East. These branches performed audits at the site and
and as a result of those audits found many things needing
1/
2/
Office of Comptroller, CIA Organization Charts and
Functional Statements, Fiscal Year 1958, 30 September
1956, SECRET, in Records Center Job 59-417
Memorandum for the DCI, through DD/S, from Chief,
Audit Staff, 4 February 1956, Subject: Status of
Audit Program for Calendar Year 1955, SECRET, in
O/DCI/ER.
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correction which would not have been discovered through
the procedures previously in effect whereby accounts were
1/
audited on the basis of records submitted to Headquarters.-
An audit program was developed in coordination with the
area divisions for the audit of all Class A stations and
an inspection of all Class B stations except those which
due to their size or for security reasons it was not con-
sidered advisable to visit.2/ Class A stations, that is,
large stations having an authorized certified finance
officer on duty, were audited semi-annually, and Class F
stations, that is, small stations without an authorized
certified finance officer, were examined at the site
annually, but in view of the fact their vouchers were
submitted to Headquarters monthly for certification, the
vouchers other than those currently on hand at the station
were reviewed annually at Headquarters in the course of
the normal audit of the accounts in the Comptroller's
1/
2/
Chief, Audit Staff, Answers to Questions Regarding
History of the Audit Staff, 1953-1956, submitted to
Historical Staff 6 January 1959, SECRET, in O/DCI/HS
files.
Memorandum for DCI, through DD/S, from Chief, Audit
Staff, 6 February 1956, Status of Audit Program for
Calendar Year 1955, SECRET, in O/DCI/ER.
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office. No site audits were made of those stations in
Soviet bloc countries. Stations that were too small or
inaccessible were also not given site audits. Stations
in Latin America, where there was no Branch Office, were
visited by Chief, Audit Staff.l/
During the period the Audit Staff made a number of
improvements in its auditing of all property accounts.
In 1955 it initiated an audit of financial property
accounting and it placed the audits of property stored
at all Agency-controlled depots and warehouses on an
annual basis. It also audited "in-use" property accounts
in domestic and overseas field stations. It worked
closely with Logistics personnel on inventory, reconcil-
iation, document control and procedural phases of the
property program. 2/ Its auditing of property accounts
included test checking property accounting records to
determine that property purchased or issued to the Agency
had been entered in the property account and the balances
on hand were correct, making spot inventories, and making
1/ Ibid.
2/ Memorandum for DCI from Chief, Audit Staff, 6 February
1956, loc. cit.
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spot inventories, and making spot checks of property in
use to determine whether it was being utilized in ac-
t/
cordance with regulations.
The Audit Staff audited all proprietary projects
once each year with minor exceptions. In a few cases,
the audit was postponed from one year to the next since
satisfactory cover arrangements could not be made in
time. 2/ Proprietary projects were audited by Agency
auditors except when security or other reasons precluded.
1/ Office of Comptroller, CIA Organization Charts and
Functional Statements, Fiscal Year 1958 30 September
1956, SECRET, in Records Center Job 59-417.
2/ Memorandum for DCI from Chief, Audit Staff, through
DD/S, 6 February 1956, Status of Audit Program for
Calendar Year 1955, SECRET, in O/DCI/ER.
3/ Chief, Audit Staff, Answers, op. cit.
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The work of the Audit Staff continued upward during
the period due to an increase in the number of stations
and projects developed within the Agency and the fact
that with improved training and enlargement of the Audit
Staff the audit was extended into a more comprehensive
type than it was earlier. The Audit Staff grew from an
authorized strength at 1 January 1953 M to an autho-
rized strength at 31 December 1956 of ith the
adoption of the overseas program, rotation of personnel
between Headquarters and the field became the established
practice except where health or family conditions made it
1
impracticable.
Statistics for Vouchered and Unvouchered Funds
Something regarding the magnitude of the accounting
and auditing functions of the Agency is revealed by the
statistics for vouchered and unvouchered funds during the
period. These figures also show in a general way for what
2/
activities the Agency used its extraordinary fiscal powers.
I/ Chief, Audit Staff, Answers, 6 January 1959, loc.cit.
2/ Figures for vouchered and unvouchered obligations and
expenditures for Fiscal Years 1953 through 1956 are
taken from Office of Comptroller, Congressional Budgets
for Fiscal Years 1955, 1956, 1957, and 1958, SECRET,
in Records Center Jobs 58-436, 58-437, and 59-417.
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During the period unvouchered obligations fluctuated
but vouchered obligations rose steadily. Unvouchered
For each fiscal year a larger proportion of obli-
gations was unvouchered than of expenditures. The reason
for this was the practice of making expenditures on a
vouchered basis where security permitted even though
obligations were unvouchered. Obligations would ordi-
narily be unvouchered for a project which was budgeted
on unvouchered funds. Some of the expenditures for this
project might be vouchered. The project might use some
equipment from an inventory in a warehouse which the
Office of Logistics obtained by using vouchered funds.
For the Fiscal Year 1953, 74 percent of obligations but
only 60 percent of expenditures were unvouchered.l/
1/
The differences were less for the other fiscal years
in the period but were present in each case. For
the period as a whole 72 percent of obligations and
67 percent of expenditures were unvouchered.
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The classification of unvouchered obligations by
object class for Fiscal Years 1953-1957 show fluctu-
ations and some trends. The largest single item for
every fiscal year was the item, "other contractual
services," which went up and down during the period.
object class included obligations for operational services
rendered by international organizations, foreign contract
agents, informants, private firms, and other govern-
mental agencies. The amount of the item fluctuated
with the fortunes of special projects and with releases
from the contingency fund. It was high for Fiscal Year
1955 because of a number of costly emergency projects
started that year. Obligations for personal services
were the next largest item and these ranged fror
million dollars for Fiscal Year 1954 to
25X1A
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dollars for Fiscal Year 1956. Vouchered obligations for
personal services increased at about the same rate during
the period. Unvouchered obligations for supplies dropped
from dollars for Fiscal Year 1953 to less than
dollars for Fiscal Years 1955 and 1956.
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