PROPOSAL TO PERMIT THE STRENGTHENING OF INTELLIGENCE ACTIVITIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R003500030026-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 13
• Document Creation Date: December 19, 2016
• Document Release Date: October 24, 2006
• Sequence Number: 26
• Content Type: MISC

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r '~w
PROPOSAL TO PERMIT THE STRENGTHENINQ L
OF INTELLIGENCE ACTIVITIES
Problem:
1. To determine ways and means whereby the DCI can
ensure that the intelligence components which make up the
federal intelligence system obtain sufficient budgetary sup-
port to be able to undertake such intelligence activities as
relate to the national security.
Discussion:
2. It is clear that the intent of the Act and the NSCIDs
is that the Agencies represented on the Intelligence Advisory
Committee are to operate insofar as possible as a system,
interrelated and interdependent. While the Act and the
Directives accord due respect to the fact that the individual
intelligence agencies must meet their departmental responsi-
bilities, the separate agencies are to be so managed as to
achieve coordinated intelligence in the interest of national
security.
3. The injunction in the Law that the Central Intelligence
Agency (and therefore, in NSCID-l, the Director, with the
concurrence or dissent of the IAC) is to recommend to the
NSC measures necessary for the coordination of such in-
telligence activities as relate to the national security has a
positive implication: that those activities are to be made
stronger, more effective, and more efficient. A weakness
developing with respect to any of the agencies is immediately
the concern of the responsible intelligence chief. If the
weakness will affect the national security, it also becomes
the concern of the DCI, In some such cases, the weakness
can be corrected by the responsible chief alone; in others,
the correction may transcend his ability, in which event the
support of the DCI and the IAC, or the NSC, may properly be
required.
ORI/ : 'F Pages
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4. By virtue of Mr. Armstrong's letter (see Tab B, which
was discussed by the IAC on 15 September 1953, IAC-M-1Z1) a
point has been reached where we must examine whether or not a
Congressional or departmental decision to reduce an intelligence
activity which relates to the national security can remain solely
a departmental matter. While this particular case involves a
weakening of certain activities in the Foreign Service, comparable
reductions in military agencies' reporting capabilities or in the
intelligence agencies' production capabilities might well have
similar adverse effects on the national security.
5. In order for the federal intelligence system to be main-
tained in a healthy state and its integral parts balanced insofar as
possible, it appears that two courses of action would be desirable-
a) Where departmental intelligence activities are clearly
a need of the department but are deemed also essential to the
DCI's responsibility toward the national security, the DCI,
after consultation with the IAC, should provide appropriate
support in the presentation of such budget items to the Bureau
and the Congress and, if necessary, to the department or
agency concerned when it comes to allocation of its appropri-
ation among the various components of that department or
agency. This would ensure that the Bureau of the Budget,
the Congress, and the department or agency, in considering
a departmental appropriation, would have full cognizance of
the national security implications of functions which other-
wise might be thought to be exclusively to meet departmental
needs.
b) Where the department or agency has been performing
or should perform services (in addition to those required
for departmental use) for the benefit of CIA and the community,
the DCI, in cooperation with the department or agency should
define the needed services. The DCI might, by mutual under-
standing, then budget for these additional services and re-
imburse the department or agency for such.
6. To date, CIA has not, by and large, carried out the
procedure described in 5 (a) above. CIA has been in certain in-
stances operating on the thesis set forth in 5 (b) above. The Agency
has reimbursed the State Department for the following intelligence
services:
a) National Intelligence Survey, in order to carry out
for the DCI in the most efficient way his responsibility for
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NIS. (While thus far CIA has not similarly reimbursed the
military intelligence agencies for NIS production, it would
be better, both from the point of view of the Congress and
the DCI, if CIA budgeted for their research also.)
b) External Research Staff, on the ground that such
coordinating effor%t could be best operated out of the
Department of State and for the benefit of the community,
including CIA.
c) Political and cultural biographic intelligence for
services rendered to CIA, while at the same time CIA
discontinued similar biographic intelligence which it had
earlier developed.
7. In none of the foregoing instances was CIA specifically
directed by the NSC to reimburse the Department of State for ser-
vices rendered, though in the external research case the concurrence
of the Psychological Strategy Board was sought and obtained. As far
as is known, CIA has not provided funds to the military intelligence
agencies for services rendered, although at one point during the
last year, G-2 was favorably considering the possibility of re-
ceiving NIS funds along the line of the State Department arrangemen.
8. Inasmuch as we can expect in the future new difficulties
to arise both with respect to strictly departmental intelligence ac-
tivities and those which serve the community, it would be helpful
if there would be a statement of policy from the NSC within which
framework the agencies could collaborate. A revision of NSCIDs
1 and 2, as follows, would provide such policy direction:
a) Revise NSCID 1, paragraph 11, to read:
" The intelligence organizations, within the limits of their
capabilities, shall provide, or procure, such intelligence
as may be requested by the Director of Central Intelligence
or by one of the other departments or agencies. Where such
requests involve additional expenditure of funds, reimburse-
ment following agreement between the heads of the responsible
organizations shall be provided in accordance with 31 U. S. C.
686, as follows: by the DCI when the request serves the
needs of CIA or the intelligence community; or by another
solely by the request Advance planning will be achieved
for these purposes to allow the preparation of necessary
budget estimates to include the funds for reimbursement.
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b. NSCID 2, paragraph 4, to read:
"The collecting and reporting facilities of each of the
agencies shall be utilized so as to avoid unproductive
duplication and uncoordinated overlap and to ensure /within
budgetary limitation;-/ within the capabilities of the intelli-
gence community that full flow of intelligence information
which is the major need of all departments and agencies
for the accomplishment of their respective missions.
(Deletion in brackets, insertion underlined.)
9. The foregoing revisions mean as follows: The depart-
ments will budget for a minimum which they judge necessary to
meet their responsibilities. That which CIA identifies as ad-
ditional services, which are over and beyond the minimum and
are required to meet intelligence needs of CIA and the community.
will be budgeted for by CIA. Such funds, when allocated to CIA,
will be used to reimburse the department or agency for the ad-
ditional services. This does not mean that the responsibility for
rendering the services will be transferred to CIA. There already
exists a statutory procedure which shall be used when appropriate
whereby the responsibility for rendering services may be trans-
ferred to CIA, i. e., CIA may (a) carry out such services of
common concern as directed by the NSC, or, (b) perform such
other functions and duties as the NSC may direct. Such direction
would normally take the form of a new NSCID or the revision of
an old one which has already placed functional responsibility.
Recommendations:
10. That the IAC agree in principle to the following:
Where departmental intelligence activities are clearly a
need of the department but are deemed also essential to the
DCI's responsibility toward the national security, the DCI,
after consultation with the IAC, should provide appropriate
support in the presentation of such budget items to the
Bureau and the Congress and, if necessary, to the depart-
ment or agency concerned, when it comes to allocation
of its appropriation among the various components of
that department or agency. This would ensure that the
Bureau of the Budget, the Congress, and the department
or agency, in considering a departmental appropriation,
would have full cognizance of the national security impli-
cations of functions which otherwise might be thought to be
exclusively to meet departmental needs.
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11. That the IAC approve the following procedure to implement
the foregoing policy:
The DCI shall, in cooperation with the departments or agerw iEa
individually or collectively as neces ar}~f define those departmental
intelligence activities which see *e rly a need of the department or
agency concerned -h are4deemed also essential to the DCI's
responsibility to the national security. Thereupon, those definitions
shall be submitted to the IAC for consultation. The DCI shall be
provided sufficiently in advance of the department or agency's
presentation to the Bureau and the Congress with the necessary de-
partmental budget data to permit him to provide appropriate support
to the Bureau and the Congress. Upon approval of appropriations
by Congress, the recipient department or agency shall make avail-
able to the DCI at the earliest possible date the tentative departn entaj
allocation for the intelligence activities in question, in order that the
DCI may, if necessary, make an appropriate presentation to the
department or agency concerned.
1Z. That the IAC concur in the proposed revisions in the
NSCIDs 1 and 2 as follows:
NSCID-1 The intelligence organizations, within the limits of their
para. 11 capabilities shall
between the heath mf +l,a ursement following agreement
additional expenditure of funds reimb ere such requests involve
provide, or procure, such intelligence as may
be requested by the Director of Central Intelligence or by one of
the other departments or agencies Wh
solely o eGlllc needs are serv
by the re neat. Advance plannin?
purposes to allnxr +t, will be achieved for the s
b e intelligence community;
or?
y another denartrna?t
request serves the needs of CIA or th "r "Tae "'1 wuen the
- + aj?+z, dzlons shall be rovided
in accordance u,;th '41 rr Ze P
NSCID-2
para. 4
----?~ iusaas for reimbursement.
The collecting and reporting facilities of each of the
agencies shall be utilized so as to avoid u productive duplication
and uncoordinated overlap and to ensure /within budgetary
limitations/ within theca abilities of the intelli ence communit
that full flow of intelligence information which is the major need
of all departments and agencies for the accomplishment of their
respective missions. (Deletion in brackets, insertion underlined.)
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13. It is recommended that the IAC concur in the following
procedure to implement the foregoing NSCID revisions:
The DCI shall submit, after consultation with the
departments or agencies individually or collectively as necessary,
to the IAC a statement of those services in addition to those re-
quired for departmental use which are of benefit to CIA and the
community, with a statement of his intention to budget for those
additional services. This is to ensure that there is agreement
on the need of the community, the need of the CIA having been
previously defined by itself. The Director will also make clear
his intention, having received a Congressional appropriation in
pursuance of such budget request, to reimburse the appropriate
department for the additional service.
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IAC-M-12.
15 Septemt~er
Approval of Minutes
1. Action: The Minutes of 8 September 1953 (IAC-M-lZO)
were approved.
The Significance of the New
Indonesian Government
(SE-51)
2. Action: Approved as amended.
Probable Soviet Bloc
Courses of Action
Through Mid-1955
(NIE-95)
3. Action: Agreed that the Board of National Estimates
will incorporate changes expressing the sense of the IAC discus-
sion in a new draft. An attempt will be made to secure approval
by contacting IAC members. Failing this, another meeting by
the Committee will be held on this estimate.
Proposal to Strengthen
Certain Intelligence
Information Collecting
Activities (IAC-D-73)
4. Action: The members agreed that the specific problems
of foreign publication and map procurement raised in Mr. Armstrong's
letter (Tab A to the document) were of concern to their agencies and
that maintaining the flow of publications and maps at approximatel-r
present levels was essential to their operations. The Director
announced that he would consult the Director of the Bureau of the
Budget with reference to CIA providing funds as an emergency
measure to support those publication and map procurement positions
being abolished as a result of Foreign Service budget reductions.
The longer range considerations involved in this problem of inadec;uate
funds for intelligence collecting activities were postponed for con-
sideration by the IAC at a later date.
IAC-M-1Z1
15 September
SECRET
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IAC-D-73
kau
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CEH
WRL
FILE
I TELLIGENCE ADVISORY COMMITTEE
PROPOSAL TO STRENGTHEN CERTAIN INTELLIGENCE
INFORMATION COLLECTING ACTIVITIES
1. The State Department, through the letter from Mr. Armstrong
to the Acting Director of Central Intelligence (attached at Tab A),
sets forth a framework in which the Director of Central Intelligence
could provide financial support for collection activities beyond a
stated minimum which the Department can provide under its budget.
2. It is believed that the action in this case is of funda-
mental importance to the future of the federal intelligence system
as well as of vital importance to satisfy the immediate needs of
the government.
3. The DCI has instructed the Secretary to submit to the
IC for its consideration the attached study (Tab B) containing
recommendations for IAC action in this matter. This study was
pr pared by the Office of Intelligence Coordination.
JAMES Q. REBER
Acting Secretary
CONFIDENTIAL
IAC-D-73
9 September 15 53
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(s) In Document Denied
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TAB B to
CONFIDENTIAL IAC-D-73
Security Information 9 September 1953
INTELLIGENCE ADVISORY COMMITTEE
PROPOSAL TO STRENGTHEN CERTAIN INTELLIGENCE
INFORMATION COLLECTING ACTIVITIES
Problem:
1. To prepare for the IAC recommendations with respect to the
problems which the recent budget cuts in the Foreign Service pose
for the intelligence community. (See Tab A)
Discussion:
2. It is clear from the Act and from the NSCIDs that the IAC
was intended to be a structure, that the DCI and the IAC, while pay-
ing due respect to the requirements to meet departmental responsi-
bilities, were also to be concerned about so managing the separate
parts as to benefit the whole and to attempt to strengthen the system
and the facilities within it for national security purposes. It
follows that it is a major responsibility of the DCI to advise the
National Security Council, therefore, of a development which weakens
substantially the facilities on which the system rests.
3. The Department of State letter is a proper action in advising
the DCI of such a weakening of a facility under its administration.
4. In pursuance of the letter and spirit of the law and the
NSCIDs, it becomes appropriate and necessary for the DCI to
appraise in consultation with the IAC the damage to the work of.the
agencies individually and in their collaboration, and to recommend
to the National Security Council, with the concurrence of the IAC,
action which will permit the correction of this weakness.
5. While the DCI in the past has without benefit of specific
direction from the NSC allocated funds to another agency (the State
Department) for research production in support of NIS in order that
a government-wide program may proceed even in the face of
TAB B to
IAC-D-73
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'Wk TAB B -.o
IAC-D- 73
9 September 1953
inadequate funds for the Department, there have been also instances
of financial support to certain intelligence collection activities of the
Foreign Service in order to strengthen where again departmental
funds were lacking.
6. NSC direction is essential in respect of the present
problems:
a. because of the far reaching implications of the
policy framework proposed by the Department in the
subject letter both for the Foreign Service and possibly
for collection activities of other agencies;
b. because the supplying of funds in that regard
might appear to or actually threaten the State Department's
responsibility for administering the intelligence collection
activities of the Foreign Service; and
c. because of the probability that agreement with
the policy proposal of the Department and its implementa-
tion in any substantial way might be construed as a viola-
tion of the intent of Congress in its reduction of funds for
the Foreign Service.
7. Accordingly, it would be wisest to approach this problem
in terms of the amendment of relevant NSCIDs. Specifically,
NSCID 1, paragraph 11, might be revised to read:
"The intelligence organizations /within the limits of
their capabilities/ shall provide, or procure, such intelli-
gence as may be requested by the Director of Central
Intelligence or by one of the other departments or agencies.
The Department of State or the Department of Defense shall
take appropriate measures to obtain the necessary funds
from the Congress or from the Director of Central
Intelligence to carry out this function.. (deletion in brackets,
insertion underlined).
TAB B to
IAC-D- p3
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TAB B to
IAC-D-73
9 September 1933
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NSCID 2, paragraph 4, should be revised to read:
The collecting and reporting facilities of each of
the agencies shall be utilized so as to avoid unproductive
duplication and uncoordinated overlap and to insure
//within budgetary limitations / that full flow.of intelli-
gence information which is the major need of all depart-
ments and agencies for the accomplishment of their
respective missions. The Department of State and the
Department of Defense shall take appropriate measures
to obtain the necessary funds from the Congress or from
the Director of Central Intelligence in order to carry out
this function."
8. It should be noted that this provision is not entirely new
but appears in a slightly modified form in NSCID 10 dealing with
collection of foreign scientific and technological data" which
was approved 1/18/49, whereas NSCIDs 1 and 2 were approved in
the early part of 1948. The relevant part of NSCID 10 reads as
follows:
"In order to provide for the collection of the data
which is the responsibility of the Department of State,
the Department of State shall take appropriate measures
to obtain the necessary funds from the Congress or from
the agencies served, other than the Department of Defense
(underlining supplied), and will appointras practicable
specially qualified scientific and technical personnel to
selected U.S. missions for this collection responsibility."
$ Pllbu
9. It should be noted that the Department of State's proposal
represents a budget allocation for positions only for fiscal 54. It
,cannot, of course, insure that the same personnel will be available
normally in the future. Thus the Department could increase out of
its own budget such personnel or, in the face of new budgetary
restrictions or other factors, reduce such personnel. None the
less, it will be observed that the opening paragraph of the
Department's letter hazards that "'this reduction will no doubt
TAB B to
-3- IAC-D-73
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TAB B to
IAC-D--73
9 September 1953
continue in effect in subsequent years, and will therefore have a
long term effect on the functions of the Foreign Service, including
the collection of intelligence information from overt sources."
It could be argued that were the Department's policy framework
agreed to, the Department might then in the future restrict its
budget requests in the field of identifiable intelligence. information
collecting activities, depending on the DCI to provide the necessary
financial assistance. Thus it might be desirable to explain to the
NSC that it is the intention of the Department of State as a normal
.matter to budget for at least the present minimum established in
the annex to the policy proposal (Tab A) and that CIA may in the
future be required to support the differential between that minimum
and the needs of the community. Because of the "historical fact
of limited budgets for military intelligence activities in time of
peace,. this same point may have applicability for these services
in the future.
Recommendation:
10. That the IAC concur in the submission to the NSC of the
amendments to NSCIDs 1 and 2 as outlined in paragraph 7 above.
TAB B to
-4- IAC-D -73
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