COORDINATION OF ECONOMIC, PSYCHOLOGICAL, POLITICAL WARFARE, AND FOREIGN INFORMATION ACTIVITIES (NSC ACTIONS NOS. 1183 AND 1197)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R004300080023-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 19, 2016
• Document Release Date: July 15, 2005
• Sequence Number: 23
• Publication Date: February 14, 1955
• Content Type: MF

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#xEcUT'CV . ,FfIGL OF Tl P - - 1EHT
Bureau mf the budget
W a s hiagl onZ %, D. C.
February 14, 1955
Her'
arable Alien Dulles
Honoratble Robert Anderson
Subject: Coordination of Lconomic,
and g'oreiga b for%tion Atti,
197)
Attached for each of you e=
report on the above subject which was
held in my office on Wede sday, Februar
ram, Messrs. Cutler, Rockefeller,
attached draft which was typed up by Gene
In sending the memorandum fcerwari
g comment:
arfare,
not had time to digest "our product", but . seems
e at first reading to express with sufficient clearness a
rationale for filling the continuing need referred to page 6.
The "product" seems to me: (1) to observe the' asic principle
integration; (2) to avoid the generally recognized error
implicit in the old PSS; (3) to avoid interfering in the line
eponaibility between the President and his responsible
Cast members; (4) to deal with the needs which l earlier
expressed -- (a) the infusion of bmagiaative and dynamic ideas
into coordinated agency planning; (b) closer, high-level atten-
tion to the OCB operation; (c) a smaller, high-level group to
act on respective covert matt
o reserve for sore study the relationship of the
PCB to B in the overt field (page 7). This relations:
hard to express clearly in words. `#
Mr. Rockefeller and I likewise each have a few ,pc
e to expr*#Siou than to what the three of us agreed upon Jointly
as incorporated in the revised draft. However, I think it would be
advisable to follow General Cutler'a suggestion that if it were per,
aibl+e to make the, GC3 meeting short on Wednesday,
oup could convene afterward at my office as we did last week.
. 11g3
I
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Mr. Rockefeller is sleo particularly anxious to move as rapidly as
resuse there Is much work dtat he should doin that he
o move ahead with until his plern of operation is at up.
Accordingly, I "I keep the time open and as soon on Wednesday
as you finish your meeetin I al l1 be prepared to start with you here
on the consideration of the enclosed draft.
/a/ l wla . tugbes
or
cc: General Cutler
oc ke,
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t
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SEC l . T Z-IZ-55 Revision
IDUM J OR THE P.1Us ENT
Coordination of XconotrAc, Psychological, Political
a, snd Foreign information Activities (NC Actions
'os. 1183 and 1197)
you indicate
ou assigned this study to the Bureau of the Budget,
s primary purpose should he to answer two
questions: (1} What is the present status of this work and how are
sibilit es placed, and (2) What were my recommendations for
improving planning methods and effectiveness?
On November 24, 1954, 1 reported to you an the fir
by supplying you with (1) a chart and. narrative descripti
indict
:one of agencies involved, committee membership
i to be In exist
la*Adwd, and #2) a summary
organization as it thorn e
iste?., Copies
proble
he
together
with a copy of my memorandum of transmittal to you, have been supplied
of the 7; ational Security Co%
he Secretary
of the Treasury. the Director of Central Intelligence, and the Chair-
man, 3oint Chi,
Two closely related organizational studies were conducted
concurrently with our review. One was
activities made for you by Mt. William H.
dy of our :
y was
The other was the
study conducted by Mr. Joseph M. Dodge of our organization for plannir
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3ECR, T
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and coordinating foreign economic policy. This
ducted in aloe
ration with the Bureau of the Bud
Advisory Cormxniitt.e on Government Organization.
Study was con-
ad with your
At your request, the budget Bureau and the Advisory Committ
on Government Organization
arrently working with Mr. Dodge to
develop for your Consideration a pattern of organizati for the con-
duct of foreign assistance programs. This matter is scheduled to be
disposed of seen as it lLnv siv
your request in the near future
on foreign aid programs in fiscal year 1956 and subsequent
In additi
The appointment of Mr, Dodge as Special Assistant to
which affect the subject ter of this report:
the
for foreign economic affairs and the establishment of the
Council on Foreign Economic Policy.
The appointment of Mr. Nelson Rockefeller as Special
President to provide leadership on your behalf in
'allowing recent decisions have boon made
the development of increased understanding and cooperation among all
peoples and in reviewing and developing methods and programs by which
the various departments and agencies of the Govern
orntribute to such coops
n and under standing .
The assignment to a spec
a which must effect
effectively
d by Mr.
Rockefeller of responsibility for coordinating the implementation of
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E G t: T
 s E c t; 4r
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3 -
e contained in NSC 5505/1 and NSC 55$2/ I .
r+aorg"nations, l sift
above mention
d like to recommend further proposals for
v;ing planning mat-hods and effective
roosted us to study:
t ion in connection with plans coon
U. Supporting actions.
Onneiction with Plans Coos
methods and.
~nd foreign infer
I with to indicate certain existing
The NSC, Planning
staffs o
sibles
pt
, is
one security polo
President.
f O Conomic, p*ycholol
agencies. (assisted by
eveloping rotor
for consideration by the NSC and transmitt
sPIA
Ibility for dev
no under approved national security policy.
(Z) When the President has approved a
open rat
curt policy,
recommended by the N$C, the agencies of Government which have functions
aeecution are pri-rily responsible to him for devising
plans and
uch p
ECRE
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The Operations t oordt
rosponsibiiit
(a)
responsible. whenever the President transmits
to it an approved national socu
the agencies which have June
policy as to the coord tt
Operation
such policy and as
eeution of such op*rxtional
advising w
tothe14
on of
ter paxtmental.. aspects
a developed by sich agencies
y and coordinated ex-
tin
proposals for action within the framework of Asa
policies in response to citing
OCR to to ass]
curity
tion of
stblee agencies in the implementation and
t in the formulation
(b) Under NSC 5412, the Central Well
charter for covert opera
of major progr
security
coordination of
Later this p peer, it is reed
to remove any conflict with the
Committee :referred to
ecommedded below to, b
covert work.
to the P1
CC 5412 be amended
sd to the
C EZ T
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 S c r
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(4) As indicated above, the President recently approved the
establishment of a Special DISC Committee under the Chairmanship of
Special Assistant Nelson Rockefeller to coordi
of policies contained U MSC 5505Y I and NSC 5502/1. Besides the Special
Assistant as Chairman, this Special Committee is composed of the Under-
Secretary of State, the Deputy Secreetar
h of who
)n* by deputies appointed by
priate of representatives of the Depart:
i s Administration, the V. S.
include, reviewing current programs and developing no
of actions taken thereunder., making evaluative p
ad departments and agencies. The duties of this Special Committee
ove-mentioned national security policies, ensuring coo rdinat
at through the National Security Council, etc.
mechanism was established in th
by the above?msntioned national security policies.
to car ry
taus* of need
:d attention to developing tho,(preponderantly
covert programs, and the coordination of actions t reundsr,
ations exclusively cove
, through working committees repr
to implementat
, and the Director
ant
participatior
ce the Foreign
gena y, and other
y Operating Plans" t.
his
programs proposed by such agencies to carry out approved "country"
SECRET
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 SECRET
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.6
policies. In the case of operations exclusively covert, such
coordination is effected by the Central IMolligonce Agency, subject to
sight as prescribed in NSC
As stated above, the working up
implement national security policies waste with
responsible therefor. But there is a continuing need
d programs dynamic,
A programs to
pri
ad iaaginativ
to diagnose precisely bow best to most the overall problems
country or area., to bring into balalane
sources ovaailable to
Utilize U. S. private arganiss
given
groups and foreign public and private!, orsanisations. The promotion
vs pI*Onin
should
on the beat intelligence available
aspects of a problen
'Ways effectively to
eign individuals and
coordinating economic, pay
political warfare, and foreign information activities ao as to
further international cooperation and understanding
Communist throat, to strengthen friendly ties with the V. S.,
promote the freedom, wellbeing
improve the o
f opinion.
It is believed that a
responsibility for meeting the need just
would aid and develop pl
.ty of the individual man,
level
should be given
both overt and covert fields.
R . T
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SICa T
list this objective, it is rsC
mentioned rl ial Owedtteo, chaired
e"k Of CCB, Where, it stot be
body i14 be a VVVWI
at might, - ant to its a
tixa to time the
ZA the covert field, the
working
to '
(s) with r e to 550/1
/ 1a
xVe to. is :swe 120M policies,, Witting such
aqws"l egeneeiss. to WKWO p a motive action;
'rte aw l-aa tio be taken sr a sr r*tio *l
i`:
ice a te-ltio to
agereeeie. In the
responsible obatmol ,for sooxdinattOU
as t Plan*
000 e Created
by
It Voka$,
pin by the respective,
a-ti . sec .ty policies.
CaI'T
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q7ersti
SECRET
a-
ag rnails
ita t work of
inns
restricted
u
in as tioa . purity po
tt ]r. security "liab
with the
tiaag ftev k" P
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I,
tvit. n to the
iii
out
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comittow
1ify
ibili
vark wi be oimod
in the Pril
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It Iit
d sir b
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8 April 1953
PVTEMCRANDUM FOR: The Director of Central Intelligence
SUBJECT : Suggested Comments on the Rockefeller
CommitteeIs Recommendations on Foreign Affairs.
1, The basic premise in the foreign affairs paper prepared
by the President's Advisory Committee on Government Organization
is stated on page 1, paragraph 3, quoted below:
"The Committee considers it of the highest importance
that the Secretary of State have sole responsibility su ject
to the President) for the formulation and control of foreign
policy and that he be freed from foreign program operations
in order that he niay concenrate onhis primary unction."
(I would assume that an unstated and related premise is
that State is,from a current "political" standpoint less able than
the proposed new agency to justify the necessary budget and defend
the operations before the Congress.) Mr. Rockefeller's covering
letter states that these reconnendations have been cleared with
the Secretaries of State and Defense, the Director for Mutual
Security and certain other interested departments and agencies.
In the light of these facts, it may be appropriate to limit our
comments primarily to those facets of the proposals which have a
bearing upon CIA and its operations.
2. Regarding the recommendation for the establishment of a
new foreign operations agency to handle the most important foreign
assistance and economic operations of the United States, I suggest
we state that:
"CIA considers that centralization of foreign economic
activities should. be helpful.. Under the proposed consolidated
setup, it should be somewhat easier than at present to obtain
advice and guidance in the field of covert economic warfare.
It is noted that the program for aid to escapees, which is just
getting under way at State, will be turned over to the new
agency. CIA has an interest in seeing that the escapee program
operates as successfully as possible because of its value in
defector inducement, and is glad to note that the Rockefeller
Committee has given appropriate attention to its continuance."
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3. The second major recommendation involves the establishment
of a new foreign information agency consolidating the most
i=,ortant information, cultural and educational exchange programs
of State, MSA, et al. It is suggested that the following may be
an appropriate comments
"The very important question of the placement of responsi-
bility for the conduct of psychological (propaganda) activities
in the medium-to-light-gray field is not specifically dealt
with in the paper. Both State and MSA, as well as CIA, have
been engaged in the conduct of operations in this particular
field. Accordingly, it is recommended that (especially since
the Jackson Committee has not yet reported its views) the
description of the proposed new information agency*should be
in sufficiently general and flexible terms to allow for the
assumption of certain activities in this field as deemed
appropriate."
4. The question of the transfer of IIA functions out of State
into the new information agency may be foreclosed on the basis of
the statements quoted. in paragraph 1 above; however, if you consider
it appropriate, you may wish to add the following comment:
"The transfer of the IIA responsibilities from State to a
new agency may create new rroblems in an attempt to solve old
ones. For example, the provisions which are made for measures
of State (and. Defense) review and approval of all "plans and
policies" related. to foreign military, economic and information
programs" * * * to assure that in their conception and execution
such plans, policies and proposals are consistent with and ,/
further the attainment of foreign policy and military policy objectives.
*Such procedures will -- if faithfully carried into effect -- give
rise to a most formidable task of 'coordination,' with all of the
attendant delay, frustration, indecision, compromise and missed
opportunities for timely action. There is a respectable body of
opinions which holds that most of the criticisms leveled at the
IIA have resulted from reasons that could be corrected without
removing these activities from the Department of State. Moreover,
it is felt that the removal will result in serious problems of
administration due to ambiguous channels of command which would
be avoided if the activities were left within the Department of
State."
A- -z. / c ~ a . awa
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/-Presumably these points have been taken into account --
since they are so evident -- and presumably it must have been
the conclusion that other considerations are of overweighing
si gnif icance.7
5. There is one apparent ambiguity in the language of sub-
paragraph b. at the top of page 14. This paragraph provides that
"regional staffs (of the two new agencies) should be established
only in cases where there is a regional organization or multilateral
activity of sufficient importance to warrant the establishment of
a diplomatic mission." As I read this language the exception
provided is so broad as to open up the possibility of the estab-
lishment of regional staffs in every country, for we have diplomatic
missions in every country. I believe that the language should be
entirely rewritten with a view to clarifying the meaning, which I
would judge to be an attempt to eliminate or drastically cut down
regional staffs abroad.
6. A final point which has occurred to me is that the chief
of the new information activity will be of sufficient importance
to be entitled to membership in the PSB. The contrary is provided
on page 13 where the language of the third paragraph authorizes him
to "attend meetings of PSB when appropriate." I suppose there must
have been some consideration given to this point and it may be that
there was a deliberate intention to exclude the chief of the new
agency from membership -- but in any case I should think that his
exclusion would over a period of time result in more difficulties
than it would avoid.
Attachment (1)
Subject report
,
Acting Deputy Director
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