INDEX

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00965R000200140078-9
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 46
• Document Creation Date: December 16, 2016
• Document Release Date: February 26, 2004
• Sequence Number: 78
• Content Type: REPORT

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 Approved For Release
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I. WITH RESPECT TO CIA ORGANIZATION AND ADMINISTRATION
II. WITH RESPECT TO PERSONNEL
III. WITH RESPECT TO CIA AUTHORITY, POLICY, COORDINATION AND OPERATIONS
IV. WITH RESPECT TO CIA SECURITY
V. WITH RESPECT TO FISCAL AND BUDGETARY PROCEDURES
VI. WITH RESPECT TO INTELLIGENCE PRODUCTION AND COORDINATION
VII. WITH RESPECT TO "WATCH-DOG" GROUPS
TOP SECRET
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TOP SECRET
WITH RESPECT TO CIA ORGANIZATION AND ADMINISTRATION
TOP SECRET
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 Approved For Release 204,W/ P91-00965R000200140078-9
RECOMMENDATION: That the Covert Intelligence and "cold war" functions of
the Deputy Director (Plans) be assigned to separate Deputy Directors whose
areas of responsibility shall be administratively and logistically self-
supporting. (Recommendation No. 1 of Public Report; pages 33, 34+, 50, 68
and 72 of the Top Secret Report; pages 13, 39) 56 and 58 of Appendix II.)
CIA COMMENT: This recommendation is, in actuality, two separate recommenda-
tions which are not necessarily interdependent:
1. The separation of intelligence from cold war functions.
2. The self-containment of administrative and logistical support.
With respect to the first of these two items, it should be noted
that such separate organizations were existent in CIA until 1952. At that
time, under a reorganization plan formulated by General Walter Bedell Smith,
the two organizations were merged under a single Deputy Director but maintained
separate Staff elements to cover each of the separate functional responsi-
bilities. The experience of CIA during the period of separate operation
prior to 1952 proved the operational disadvantages of attempting to conduct,
on a secure and efficient basis, two world-wide clandestine organizations,
each compartmented from the other.
We do not feel the separation of support responsibility from the
Clandestine Services impairs the principle of security compartmentation, since
the number of people who "need to know" the information will be essentially
the same however organized. Organization of separate supporting elements for
each of the Clandestine Services would be both a costly duplication and one
which would not bring about as effective support.
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Ur 11L
RECOMMENDATION: That the part of Agency Directive of 15 July 1952 appointing
area division chiefs as executives of the Director of Central Intelligence
and providing for direct dealing with him and Senior Representatives be
rescinded. (Pages 11, 56, and 58 of Appendix II.)
CIA COMMENT: This directive has been reviewed and rescinded.
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RECOMMENDATION: That "cold war" operating deputy director be designated
as the CIA representative on OCB to free the Director of Central Intelligence
for Agency intelligence functions. (Pages 34+, 70 and 73 of the Top Secret
Report.)
CIA COMMENT: The Director serves as the Central Intelligence Agency
representative on the OCB by virtue of specific Presidential directive.
Instructions issued under this directive enjoin the DCI to participate
personally at OCB meetings to the greatest extent possible. In view of
the function of the OCB, the level of representation from other departments
and agencies, and the range of CIA interests in OCB matters, this is a
proper requirement. This participation is not unduly burdensome on the
Director, since he has a special assistant who devotes his full time to
this activity.
In addition, the Deputy Director (Plans) is closely associated
with such OCB activity in that CIA members of OCB working groups are drawn
from Clandestine Services personnel. The Deputy Director for Plans relieves
the Director of one substantial demand on his time, in this connection, by
serving as the Agency representative on the Plans Coordination Group of
the OCB.
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 Approved For Release/ DRET-RDP91-00965R000200140078-9
RECENDATION: With respect to Agency as a whole. That remainder of
Agency be reorganized with Director of Central Intelligence, Deputy Director
of Central Intelligence, an Executive Director, a general secretariat,
necessary staff sections and offices of administrative and logistic services
and an operating Deputy Director (Intelligence) with seven offices thereunder
as follows: Office of Basic Intelligence (now Basic Intelligence Division,
Office of Research and Reports); Office of Reference & Liaison (now Office
of Collection and Dissemination); Office of Collection (now Office of Opera-
tions); Office of Scientific Research (now Office of Scientific Intelligence);
Office of Economic and Geographic Research (now Office of Research and Reports);
Office of Current Intelligence (OCI); and Office of National Estimates (ONE).
(Pages 35, 36, 42, 46, 49, 50, 69, 70 and 73 of Top Secret Report.)
CIA COMMENT: We concur with the creation of an Office of Basic Intelligence.
This has been accomplished by the elevation of the appropriate division of
the Office of Research and Reports to Office status.
The balance of this recommendation consists of suggesting that
four of the six names of offices under the Deputy Director (Intelligence) be
changed. We believe that a better name for the Office of Collection and
Dissemination would be the Office of Central Reference, and have made that
change. We do not concur that the Office of Reference & Liaison is appropri-
ate because this Office conducts little liaison. We see little to be
accomplished in the other name changes. We would point out that changing
the name of a major component in a government agency is costly and results
in considerable confusion and waste over a period of some time. Inasmuch as
these offices have been so named for several years, we do not believe the
name changes worth-while.
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UP
RECOMMENDATION: That CIA re-establish the Office of Executive Director.
(Pages 31, 32, 69 and 73 of Top Secret Report.)
CIA COMMENT: Under the present organization the Director and the Deputy
Director have, in effect, three Executive Directors in the Deputy Directors
for Plans, Intelligence and Support. To interpose another command echelon
would not necessarily relieve the Director of any work load and might merely
interpose a further echelon between the operating staffs and final action.
Any failure now to delegate is not due to the lack of an organizational
mechanism, but rather is due to the inherently delicate nature of CIA's
problems which demand active participation by the Director. Further study
is, however, being given to this suggestion.
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RE0EAIDATION: That a comprehensive internal management survey of the
Agency be conducted by CIA following recommended reorganization. (Pages 50
and 73 of Top Secret Report.)
CIA COAMT: We presently have three concurrent programs in effect. The
Inspector General conducts a component by component survey of CIA, paying
particular attention to management problems. The Deputy Director (Plans) has
a staff complement specializing in inspection and review of clandestine
operations. Lastly, a Management Staff under the Deputy. Director (Support)
concerns itself with the corrective phases of management and administrative
systems. Further, we are considering the pros and cons of bringing in a cleared
group of management engineers to advise us on organization. Here it should
be noted that an intelligence agency, for security and other reasons, cannot
be organized on the lines of a commercial undertaking, and few management
engineers have the background for giving competent advice in the intelligence
field.
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T
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TOP SECRET
RECOMMENDATION: That Congress be requested to appropriate funds to construct
adequate CIA housing facilities in or near Washington. (Recommendation No. 7
of Public Report; pages 52, 53) 54+, 71 and 74+ of the Top Secret Report.)
CIA CONIMENT: This has been done. Congress appropriated funds for a building
and site acquisition.
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TOP SECRET
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RECOMMENDATION: That status of three major operating Deputy Directors be
changed from CS (GS-18) to Public Law Presidential appointee at $16,000
per annum. (Pages 31l, 35, 66, 69 and 72 of the Top Secret Report.)
CIA COMMENT: We concur in the recommendation that the pay scales of the
senior officials of the Agency be increased. The recommendation that the
status of the operating deputies be changed to Public Law Presidential
appointees is questioned. Certain of the deputies carry on operations of
a highly classified, nature. It would be unwise in each case to seek Senate
approval, particularly where an individual's background and competence in
clandestine operations would have to be reviewed. We have received no
indication of any Senatorial desire to review CIA appointments other than
the Director and Deputy Director of Central Intelligence.
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RECOMMENDATION: That the Executive Pay Bill of 19+9 be amended to increase
the annual salary of the Director of Central Intelligence to the equivalent
of the pay of the Deputy Secretary of Defense (now $20,000); to bring the
compensation of the Deputy Director of Central Intelligence up to $17,500,
the same as that of most Under Secretaries of the Executive Branch; and to
provide operating directors of areas of responsibility in Intelligence with
proportionate salaries. (Recommendation No. 3 of Public Report; pages 66
and 75 of the Top Secret Report.)
CIA COMMENT: Salary adjustments were included in the Executive Pay Bill.
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Up KL
RECOMMENDATION: That CIA Act of 19+9 be amended to authorize employment of
n 15 now authorized) retired officers or warrant officers of the armed
services; and to authorize CIA personnel dependent medical benefits and
leave accumulations equivalent to Foreign Service members. the Top t
3 and L of the Public Report; pages 61, 65, 66 and 74 Report.)
CIA COMMENT: The Agency would welcome a liberalization of Section 6(f)(2)
of the Central Intelligence Agency Act of 19+9 (Public Law 110, 81st Congress,
as amended) which authorizes it, notwithstanding any other legislation, to
employ and pay 15 retired commissioned or warrant officers of the armed
services. An increase of the total authorized to a new total of between
25 and 50 would allow greater flexibility in our personnel program. It
should be pointed out, however, that the present restriction is mitigated,
inasmuch as it pertains only to officers retired for longevity. The Agency
has some former officers of the regular services retired for physical or
combat disability, some serving as senior officials.
CIA has made considerable strides in the past three years in
establishing a career service program. Extensive use of retired commissioned
officers who, in view of age and experience, would only be willing to con-
sider relatively senior assignments must be tempered by a consideration of
the possible adverse effects on the morale of regular career employees.
We concur in granting Foreign Service benefits for dependents,
medical assistance and leave accumulations to CIA personnel. It is believed
that proposed legislation on the awarding of career service benefits to
Federal employees stationed abroad will authorize the granting of these
privileges.
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4EPW
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Top SECRET
RECo fENDATION: That the program for training of specialists in covert
intelligence collection and for the development of linguists be intensified.
(Recommendation No. 9 of the Public Report; pages 1.5, 57 and 59 of Appendix II.)
CIA COlMENT: We concur in the necessity for the training of specialists in
covert intelligence and the development of linguists. The Doolittle Study
Group made identical recommendations and the Agency has given this matter
intensive study. Five new covert training courses have been created during
the last year. A mandatory quota of five per cent of all Clandestine Service
personnel are in training at all times.
Our capabilities in language training have steadily expanded.
In addition to a great variety of part-time programs, we have available
approximately one hundred full-time intensive courses in nearly forty
languages, and thirty to forty integrated area-language programs. Approxi-
mately eight per cent of the personnel in the intelligence producing offices
are receiving pertinent training at all times. A program of incentive awards
has been adopted to stimulate interest in acquiring and maintaining proficiency,
particularly in languages of those countries of major intelligence interest.
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TOP SECRET
WITH RESPECT TO CIA AUTHORITY, POLICY, COORDINATION MID OPERATIONS
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RECOMMENDATION: That the proposed annual Psychological Warfare budget and
allocations be submitted for NSC approval and subsequent changes presented
by Director of Central Intelligence to the Planning Coordination Group of
the OCB. (Page 58 of Appendix II.)
CIA COMMENT: This recommendation is not consistent with the character and
functioning of the NSC as it has been established. The NSC is an organ for
the formulation of basic general policy and it does not have the time and
staff which would be required if it were to consider details of budget and
funds allocation. In development of its Psychological Warfare budgets,
this Agency is careful to conform to policy established by the NSC, and
to request NSC authorization for any proposed action which is not covered
by existing policy. In addition, it is the current practice of the Director
of Central Intelligence to keep the NSC closely informed concerning
Psychological Warfare programs.
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RECOMMENDATION: That the NSC interpret provisions of paragraph 4b,
NSC-j 12 1 as it affects the several members of the intelligence community.
(Pages 55, 57 and 59 of Appendix II.)
CIA CO4MENT: Paragraph 4b of NSC 5412/1 reads, "Informing through appropriate
channels on a need-to-know basis, agencies of the U. S. Government, both
at home and abroad, including diplomatic and military representatives, of
such operations as will affect them."
The CIA has been scrupulously careful to keep other Government
agencies appropriately informed of its activities insofar as they may be
concerned therewith. This obligation has involved a difficult balance
between the proper range of interest of another agency and the restrictive
principle of "need-to-know". We are aware, from time to time, that individual
judgments in individual cases may have failed to find the proper balance of
these considerations. We are trying constantly to remedy and prevent these
instances, but we do not see how further generalized interpretation of this
provision by the NSC could give substantial help in this problem. It is
essentially a case by case issue. It should be noted that as standard
procedure we provide individual briefings for ambassadors and other Department
of State personnel; the Department of Defense commanders, chiefs of military
missions, attaches and other important staff officers.
Further, a special group under 5412 now coordinates these projects
and this body includes the Deputy Secretary of Defense and Under Secretary
of State.
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TOP SECRET
RECONmENDATION: That all National Security Council, Intelligence Advisory
Committee and Director of Central Intelligence directives be reviewed by
the Intelligence Advisory Connnittee to establish clearer areas of responsi-
bility and to facilitate allocation of tasks commensurate with capabilities
and responsibilities. (Pages 24, 25, 68 and 74 of the Top Secret Report.)
CIA COMMENT: This has been done.
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TOP SECRET
WITH RESPECT TO CIA SECURITY
TOP SECRET
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RECOMMENDATION: That responsibility for procurement of foreign publications
and collection of scientific intelligence be shifted from State to CIA and
that CIA appoint scientific attaches as necessary. (Recommendation No. 6
of Public Report; pages 37, 4+2, 70, 74+, 239 and 244 of the Top Secret Report.)
CIA COMMENT: This has been satisfactorily worked out.
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RECOtMENDATION: That Scientific Estimates Committee be abolished and there
be established under the Intelligence Advisory Committee a Scientific Intel-
ligence Committee with appropriate subcommittees to insure community-wide
coordination. (Pages L+2, 70, and 71i- of the Top Secret Report.)
CIA COMMENT: We are in general agreement with this recommendation and are
currently trying to strengthen the Joint Atomic Energy Intelligence Committee
and the Guided Missiles Intelligence Committee, both of which must work in
close conjunction with any Scientific Intelligence Committee. These matters
are under active consideration in the Intelligence Advisory Committee.
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TOP SECRET
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Top 04/05/13
RECOMMENDATION: That espionage and counter-espionage program be intensified.
(Pages 3b, 57 and-58 of Appendix II.)
CIA COMMENT: We not only concur in this but are assiduously pursuing such
a course. We have established a Counter-Intelligence Staff for the purpose
of giving greater organizational emphasis to the counter-espionage part of
the program, thus in effect placing espionage and counter-espionage on a par
with each other and stimulating a more intensified effort throughout the
entire Clandestine Services mechanism.
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TOP SECRET
RECOMMENDATION: That intelligence employees be removed from employment pend-
ing final determination of cases when sufficient doubt raised during the conduct
of an investigation. Findings and disposition of those cases reported as still
in process at conclusion of survey should be reported to the President.
(Pages 280, 281 and 283 of the Top Secret Report.)
CIA COMMENT: This Agency has adhered carefully to the provisions of Executive
Order No. 10450 which provides for the suspension, with or without pay, of
Federal employees when a reasonable doubt exists as to their security status.
Agency handling of employees under investigation because of sub-
stantive allegations concerning their loyalty or security qualifications for
employment in sensitive positions is dictated by the provisions of Executive
Order 10450. Such employees are placed on a leave status, with pay if the
allegations are eventually refuted, without pay if the allegations are sus-
tained and the employee is terminated.. Normal reporting procedures, as estab-
lished in Executive Order 10450, are followed in these cases, and information
is furnished to the Civil Service Commission or the Federal Bureau of Investi-
gation, Department of Justice, as appropriate. Therefore, the status of
such cases is available to the President through the executive agencies he
has designated.
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RECOIENDATION: That all agencies recheck security status of intelligence
employees at periodic intervals not to exceed five years. (Page 283 of the
Top Secret Report.)
CIA CO MENT: This is being done by CIA. (See page 20.)
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TOP SECRET
WITH RESPECT TO FISCAL AND BUDGETARY PROCEDURES
orp
I ~E
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RECO1' NDATION: That submission of budgets to the CIA Project Review Committee
by the area division chiefs be discontinued and budget for each covert component
be prepared under supervision of its chief and submitted for the component to
the Project Review Committee. (Pages 47, 57 and 59 of Appendix II.)
CIA COMMENT: This recommendation is based on a separation of Agency "cold
war" and "covert intelligence" functions with which this Agency does not con-
cur. However, in relation to the existing organization, the Clandestine
Services planning and programing system is designed to assure that the pre-
liminary program and budget recommendations of the Area Divisions will be
fully reviewed by the Deputy Director (Plans) and his staff and submitted by
the DD/P as an integrated Clandestine Services program.
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TOP SECRET
RECOMIIeMATION. That the number of auditors of the regular CIA Audit Staff
be increased materially. (Pages 52, 57 and 59 of Appendix II.)
CIA COMMENT: We concur. This also was recommended and approved as a result
of an internal organizational survey.
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ECRET
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TOP SECRET
WITH RESPECT TO INTELLIGENCE PRODUCTION AID COORDINATION
OP SECRET
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RECOMMENDATION: That CIA devote special attention to the production of
atomic energy intelligence. (Pages 208, 216 and 220 of the Top Secret Report.)
CIA COMMENT: CIA and the intelligence community have long ago agreed that
the highest priority be accorded the following objectives (underscoring
supplied):
"Soviet development, production, disposition, and employment
of weapons and other components of weapons systems requisite for
nuclear attack on the United States and/or key U. S. overseas instal-
lations or for defense of the Soviet Bloc against air attack. Particu-
lar reference is made to the development, production, and employment
of: (1) nuclear weapons; (2) delivery systems, including aircraft,
guided missiles, and related base facilities; and (3) the components of
the Soviet air defense systems.
"Soviet capabilities, plans and intentions for the clandestine
delivery of nuclear, biological, or chemical weapons."
Continuous attention at the highest level is directed to seeing that this
program is energetically implemented.
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RECOMMENDATION: That the Atomic Ener Commission's intelligence responsi-
bility be defined by NSC directive. rages 42, 219 and 220 of the Top Secret
Report.)
CIA COMMENT: The intelligence responsibilities of the Atomic Energy Commission
have been reviewed and it is not believed that an NBC directive is necessary.
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RECO}viENDATION: That the Atomic Energy Commission define responsibilities
and functions of its Division of Intelligence. (Pages 210-212 and 220 of
the Top Secret Report.)
CIA COMMENT: See comments on previous recommendation, page 26.
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RECOMMENDATION: That steps be taken to introduce highly selective methods
of choosing members of the coordinating committee on atomic energy intelli-
gence, not only to get the benefit of service by the most competent individuals,
but also to assure long tenure in this important assignment. (Recommendation
No. 8 of Public Report; pages 207-209, 213-215, 218 and 220 of the Top Secret
Report.)
CIA COMMENT: The CIA has always pressed for the assignment of the best quali-
fied personnel to the Joint Atomic Energy Intelligence Committee. The record
of the Committee in the matter of continuity and length of tenure appears
very favorable, as shown by the following tabulation.
REPRESENTATIVES
TENURE IN YEARS
CIA
3
1,
3, 4 (incumbent)
ARMY
2
!}, i
ft
NAVY
1
8
It
AIR FORCE
2
5, 2
STATE
2
7, 1
It
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RECOMMENDATION: That the atomic energy portion of National Intelligence
Estimates be reviewed to emphasize development of increased capabilities
to obtain intelligence on Soviet wartime use and that the National Intel-
ligence Estimates reflect full extent of available knowledge. (Pages 217-
220 of the Top Secret Report.)
CIA COMMENT: The CIA Board of Estimates is already doing this. Further, the
Board is not only going into the Soviet wartime use of atomic energy, but is
working on peace-time application. It goes without saying that every effort
is made to'have the National Estimates reflect the full extent of available
knowledge.
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TOP SECRET
RECOMMENDATION: That intelligence community recognize the Soviet Union as
a primary target and take concerted action to break this vital intelligence
block. (Pages 33-35, 49, 68, 247, 248 and 254 of the Top Secret Report.)
CIA COMMENT: CIA and the entire intelligence community has invariably
accorded the Soviet Union the highest priority as a target of intelligence.
This is reflected in the Priority List of Critical National Intelligence
Objectives issued 28 September 1950, revised 12 June 1952, 4 August 1953,
and 14 December 1954. Appropriately, Communist China has been accorded
comparable status with respect to its capability to initiate hostile actions
against the Free World. The means of obtaining and the production of inter
ligence on the Soviet/Sino Bloc is a problem always under continuous scrutiny,
and is now limited mainly by the factor of human ingenuity.
0 EGRE
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RECOMMENDATION: That the Intelligence Advisory Committee act to develop
new intelligence collection/production techniques and insure exchange of
resulting information. (Pages 236-238, 240 and 24+ of the Top Secret Report.)
CIA COMMENT: Compliance with this recommendation will be accomplished in
conjunction with the Intelligence Advisory Committee action outlined on
page 30.
'EGRET
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RECOMMENDATION: That positive measures be taken to increase quantity and
improve quality of intelligence, with emphasis on the target area, to
include revision of existing directives assigning collection/production
responsibilities. (Pages 236-238, 240 and 244 of the Top Secret Report.)
CIA COMMENT: This has already been covered in the comments on recommenda-
tions contained on pages 14, 30 and 31.
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RECOMMENDATION: That the Department of State's programs for expansion and
integration of the Foreign Service and acceleration of language and area
training be pursued vigorously. (Page 254+ of the Top Secret Report.)
CIA CONR NT: Any effort by another Department to accelerate language and
area training would be of assistance to the intelligence community.
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RECOPM ENDATION: That an agreed glossary of intelligence terms be produced
and reviewed periodically. (Pages 227, 228 and 244 of the Top Secret Report.)
CIA COMMENT: CIA has compiled a glossary of intelligence terms. Action will
be taken through the Intelligence Advisory Committee to secure acceptance of
such a glossary as the authoritative dictionary of intelligence nomenclature.
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RECOMMENDATION: That the Intelligence Advisory Committee consider the adoption
of a single library index system based on CIA's Intelligence Subject Code now
in use. (Pages 303, 304 and 305 of the Top Secret Report.)
CIA COMMENT: We concur. The adoption by the entire intelligence community
of an index system based on CIA's Intelligence Subject Code has been promoted
vigorously over the past few years.
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RECOMMENDATION: That senior military commanders in the field be given greater
flexibility in their use of information on a "need-to-know" or "eyes onlytt
basis, with due regard to protection of the source. (Pages 307-309 of the
Top Secret Report.)
CIA COMMENT: We are not aware of any complaints on restrictions on use of
information supplied. It is true that on occasion material produced from
highly sensitive sources or delicate operations must be handled with utmost
care, but the CIA is fully cognizant of the obligation and responsibility to
get information to that senior officer responsible for action and policy.
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RECOMMENDATION: (by the Hoover Commission)
a. That the President appoint a committee of experienced private
citizens, who shall have the responsibility to examine and report to him
periodically on the work of Government foreign intelligence activities.
This committee should also give such information to the public as the
President may direct. The committee should function on a part time and
per diem basis.
b. That the Congress consider creating a Joint Congressional Committee
on Foreign Intelligence, similar to the Joint Committee on Atomic Energy.
In such case, the two .committees, one Presidential and the other Congressional,
could collaborate on matters of special importance to the National security.
(sole specific recommendation of the Hoover Commission, pages 1-2 of the
Public Report.)
RECOMMENDATION: (by the Clark Task Force) That a small, permanent, bi-
partisan commission, composed of members of both Houses of the Congress and
other public-spirited citizens commanding the utmost national respect and
confidence, be established by act of Congress to make periodic surveys of
the organization, functions, policies, and results of the Government agencies
handling foreign intelligence operations; and to report, under adequate
security safeguards, its findings and recommendations to the Congress, and
to the President, annually and at such other times as may be necessary or
advisable. The proposed "watch-dog's commission should be empowered by law
to demand and receive any information it needs for its own use. It should
be patterned after the Commission on Organization of the Executive Branch
of the Government (Hoover Commission). Appointments by the President of
persons from private life to the proposed Commission should be made from a
select list of distinguished individuals of unquestioned loyalty, integrity,
and ability, with records of unselfish service to the Nation. (Recommenda-
tion No. 2 of Public Report, pages 312-317 of the Top Secret Report.)
CIA COMMENT: The President has appointed a permanent Board of Consultants
on Foreign Intelligence Activities which has been continuously active for
the past year and a half. The Congress now has regularly established sub-
committees of both Armed Services and Appropriations in both Houses.
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WITH RESPECT TO ttWATCH-DOG" GROUPS
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