DEAR MR. SAUNDERS:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01237A000100010032-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: July 24, 2000
• Sequence Number: 32
• Publication Date: October 16, 1958
• Content Type: LETTER

ADDRESS
THESECRETARY Approved For Release 2002/08/13 : CIA-RDP80-01237AO04100010032-0
WASHINGTON 21. D. C.
DEPARTMENT OF STATE
WASHINGTON
October 16, 1958
CONFIDENTIAL
The following represent the recommendations of the
Department of State concerning the development and presen-
tation of State's intelligence costs for reporting to the
Bureau of the Budget and to the President.
It is recommended that:
1. The report be prepared on the basis of past year
data rather than on a projected basis.
2. The report be prepared on the basis of obligations rather
than on the basis of projected cost estimates.
3? The present general instructions of the Bureau of the
Budget, except for (1) and (2) above, be unchanged.
4. The summary annual report be annotated to provide
clarification of the items reported. (Probably for
State one footnote would suffice to explain that the
amount shown includes all Political and Economic
activities in overseas posts.)
For State, and probably for other Departments and. Agencies,
the major problem is the difficulty in differentiating between
"intelligence" and "operations". For example, political and
economic activities in the field can be considered entirely
"operations", yet practically every report, telegram., or other
correspondence or material submitted by these units has present
or potential intelligence value. These activities are both
"intelligence" and "operations" - the proportion of each could
be estimated only by an arbitrary determination.
We engaged
D oa 9nt No. __ - ....
Reriew at this daeueaenrt qy CI ttnt;
deter
E. R. Saunders troller 'snF itFnt
, Comptroller j, pi t;~s rav cA;ectfpst to tlotaet
CIA
Central Intelligence Agency, C1 't ;anxaiti. 1-IftnRatian of
Washington 25, D. C. arterust iI3i rest remain
dass>?ice nt T$ s it
Avt? asi : tttt 10-2
It a+Irains nathinr at CIA
CONFIDENTIAL isaR geYiQv~er 25X1
State Dept. declassifi jOt1e PdeRra1btpp?UM 90 6IA-RDP80-01237A000100010032-0
 Approved For Release 2002/08/13 : CIA-RDP80-01237A000.100010032-0
CONFIDENTIAL
We engaged in considerable discussion concerning the
possibility of refining or clarifying the definition of
intelligence. The determination was that any such refinement,
meaning a restriction or expansion of the definition, could
not have practical value for all agencies. It must be
recognized that although "intelligence" is inherent in most
Foreign Service "operations" of the Department of State, it
is not possible to segregate clearly the two functions.
Consequently, it is impossible to determine to any worthwhile
degree of accuracy the proportion of intelligence costs in
the political and economic reporting functions.
In lieu of estimating an arbitrary and inaccurate division
of political and economic costs into "intelligence" and
"operations", either none or all of the costs should be
reported as intelligence. It is our conclusion that all
political and economic costs should be reported as intelligence
costs provided that the summary report is annotated to that
effect.
Sincerely yours,
bseph T. Bartos
Director, Executive Staff
Bureau of Intelligence and Research
CONFIDENTIAL
Approved For Release 2002/08/13 : CIA-RDP80-01237A000100010032-0