SPECIAL INTELLIGENCE SERVICE OF THE FEDERAL BUREAU OF INVESTIGATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64-00658A000100130009-5
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 20, 2016
• Document Release Date: May 15, 2007
• Sequence Number: 9
• Publication Date: February 12, 1946
• Content Type: REPORT

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February ]2 i lgl~6
RE: SPECIAL INTELLIGENCE SERVICE OF THE
L O
ORIGIN AND DEVEL0P9dENT
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The Special Intelligence Service of the Federal Bureau of Investigar
tian has been operating throughout the Vi'estern Hemisphere since June 2?~, 19I~O,
Qn that date Assistant Secretary of State Adolf A, Berle, Jr. directed a
memorandum to the Director of the Federal Bureau of Investigation and the
heads of the Office of Naval Intelligence and ~i.litary Intelligence Division
advising that the President had informed him that he wished the FBI to be
responsible for f areign intelligence work in the ~'estern Hemisphere. The
President also stated that the FBI might be called in by the State Department
on special assignments outside the Western Hemisphere. A written directive
was signed by the president an January 6, 1g1~2, stating that in accordance
with previous instructions the Federal Bureau of Investigation had set up a
special intelligence service covering the Western Hemisphere and that in order
to have all responsibility centered in the Federal Bureau of Investigation in
;this field, he approved the arrangements and instructed that the heads of all
governmental departments and agencies clear directly with the Federal Bureau
of Investigation in connection with any intelligence work within the sphere
indicated. The Director of the Federal Bureau of Investigation was authorized
and instructed in this Directive to convene meetings of the chiefs of the
corresponding services operating in the Western Hemisphere and to maintain
liaison with all intelligence agencies operating within the Western Hemisphere.
Supplementing the Presidential Directive, a Delimitation Agreement
was signed by the Director of the Federal Bureau of Investigation, the Director
of Naval Intelligence and the Assistant Chief of Staff, G-2, on November 25, 19112,
This agreement provided that the FBI would be responsible for, among other
things, the obtaining in the Western Hemisphere, with the exception of the
Republic of Panama, economic, political, industrials financial and subversive
inf ormation and also information concerning movements, organizations-and
individuals whose activities are pre3udicial to the interests of the IInited
States by reasons of espionage, sabotage or otherwise. It was agreed that
the Military Intelligence Division and the Office of Naval Intelligence would
be responsible for a continuation of the work normally outlined for and
executed by ~Bilitary anci Naval Attaches, as well as the collection of military
and naval information which would be needed by the Army or Navy.
The Delimitation Agreement regarding clandestine radio stations was
signed February 6, 19t~3, by the Directors of the FBI, ONI and. G-2, providing
that the-M~.litary Intelligence Division be responsible for the establishment of
a net~rork~to locate clandestine radio stations in Latin America and that the
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FBI ~rould be responsib7~ for taking the action considered most advisable
after concurrence of MID and 4N2 regarding clandestine stations which had
been located by the FBI or by the technical network established by G-2.
Based on the Presidential Directive and the Delimitation Agreement
the Federal Bureau of Investigation has developed a plan of operation which
today effectuates complete coverage of all farms of secret intelligence
and counterintelligence in the ~Pestern Hemisphere.
There is established in the American Embassies of each of the Latin
American countries a Federal Bureau of Investigation representative under
the title of Legal Attache (in Mexico and Haiti Civil Attache) who is in charge
of the secret intelligence operations of the Federal Bureau of Investigation
~t the particular country. The necessary assistants are provided as Assistant
Legal Attaches or under some other nominal title such as Vice Consul. Adequate
clerical, stenographic and technical aides are provided in the office of each
Legal Attache. The Legal Attache, in addition to his supervisory dude s~
maintains close liaison with the Ambassador and other Embassy officials, with
the Military and Naval Attaches and with other intelligence groups where
desirable and possible. The work of the office of the Legal Attache is sup-
plemented by the necessary undercover operatives who function ostensibly as
American businessmen or under soi~te other appropriate cover but:~rho provide
their information to the Legal Attache through appropriate secret means for
coordination with all other information obtained.
In intelligence operations it is obvious that on many occasions
speed is of the essence in providing the secret intelligence information ob-
tained to officials in ~~Tashington. In this connection there is maintained i.n
the offices- of the Legal Attache in thirteen of the Latin American countries
a complete radio transmitting station which is in regular continuous contact
with the Federal Bureau of Investigation headquarters in ~(ashingtan. These
transmitters are available to the Ambassador as well as to the Military and
tdaval Attache in the event of an emergency and have been so utilized on a
number of occasi.?ns with benefit to the United States government.
There has been developed a system of open liaison with police de-
partments in Latin America through assignment of FBI liaison agents to these
departments and the training of Latin American police officials in t~lashington.
This liaison has been exceedingly productive in the counterintelligence field
as evidenced by the conclusive action taken against German and Japanese sub-
versive agents in Latin America during the war period. This liaison has also
produced exc~~dingly effective results in the field of positive intelligence
particularly with reference to native subversive movements and the local politi-
cal situation. Valuable sources for positive intelligence have been obtained
which have never before been available to the United States government. At pres-
ent the FBI maintains Police Liaison Agents in fourteen cities located in
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twelve countries of Latin America. There is stationed in Ottawa, Canada, a
Special Agent who is in liaison with the Royal Canadian Mounted Police.
The prime factor, of course, in the success or failure of an intelli-
Bence or counterintelligence organization is the adequacy of the confidential
informant coverage available to the organization. During the periad of opera-
tion by the Federal Bureau of Investigation in Latin America, a comprehensive
and all-inclusive confidential informant plan has been developed. At the
present time the Special .Agents in the SIS field are operating approximately
3,C1pQ active confidential informants and sources of information throughout
Central and South America. These informants range from Latin American Presi-
dents or their relatives, Cabinet DSinisters, Military Officials, bankers,
industrialists' police officers, merchants, customs officers, etc.r to the
+-man an the street," that is, cab drivers, dock workers, bartenders, etc.
Also adequate secret coverage has been developed of the diplomatic establish-
ments of foreign powers as well as among foreign nationality groups in Latin
America.
Es Tana a and Counteres Iona e. The espionage services of all mayor
countries o e wor open ate an a wor dwide basis both in peace and in war
and, therefore, continuous counterespionage vigilance is an absolute necessity.
The counterespionage operations and the action taken by the Federal Bureau
of Investigation during the war periad demonstrated the importance of the in-
formation attained in Latin America and other areas of the world in connection
with the internal security of the United States. The Axis agents who physically
operated in Latin America endeavored to obtain information concerning or from
the United States and transmitted it through drop boxes in Spain or other
neutral Gauntries to Germany or Japan. At present the necessary counterintelli-
gence coverage is being maintained not only to insure that the Germans are not
able to again engage in anti-United States activities but also to obtain the
information concerning the activities of other countries of the world in the
espionage or intelligence field. It is known for instance that the Russians,
the $ritish and the French are all interested in establishing intelligence
networks in Latin .America and of Course appropriate coverage of their activities
is maintained.
Secret Political Activities. International political intrigue and
political eve opments n the Latin erican countries are of outstanding ira-
portance and interest with respect to present intelligence Gaversge and, there-
fore, continuous and Close attention are given to them by the Federal Bureau
of Investigation. The nature of the operations of the FBI representatives and
the development of undercover confidential informants and agents makes possible
the obtaining of secret political intelligence vrhich is not available to the
diplomatic representatives of the United States Government. This field of in-
telligence, because of the proximity to the United States of Latin America and
the vital interest to the United States Government in that area, is of outstanding
importance.
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Anti-United States Activities in General,. The United Sta#,es must
be informs o e ac vi ies o a i s po en al enemies, of subversive
ideological attacks against the United States any place in the warld, and can-
cerning the activities of all foreign influences 3.n ax~y country, particularly
in Latin America, in view of our paramount interest there. Coverage in these
fields is maintained throughout Latin America in order that the efforts to
combat United States influence from any source may be promptly detected..
Communist Movement. Although the Communist movement may be obliged
to employ eren ac ice in particular countries, there is every evidence
bf a singleness of objective, that is, to bring about Communist control. The
Communist movement is extensive in Latin America and receives well deserved
attention from the Federal Bureau of Investigation, particularly with reference
to organizations], structure of Communist Parties in Latin America, propaganda
and educational activities of the Party, Communist infiltration of labor,
Communist activities among the foreign nationality groups and Communist front
organizations.
Economic Information. The obtaining of economic information in
foreign coun rise ur ng peace or war must receive attention approximating that
given to obtaining military and naval data if a eountryts potentiality for
modern warfare is to be determined. The attitude of a country~s industrialists
as well~as the activities of its scientists and technicians and the existence
of raw materials and production facilities must be determined, Coverage in
secret eCOriomiG inte113.gence, as contrasted to that normally carried an by
the Commercial Attaches, is maintained in Latin America. For instance,
extensive work is now being done in connection with ferreting out hidden Axis
assets in Latin America and in determining whether any aersets have been moved
from the Axis countries to Latin America far the purposes of concealment and
future use.
S ecial Investigations. As a result of the establishment of the
special in Bence ne wor n Latin America, the Federal Bureau of Investiga-
tion has been able to carry on a number. of vital special imrestigations for
the various departments of the United States Government. Security checks have
been made of the facilities in most of our Latin American embassies and two
Special Agents of the FBI are presently making security checks of the embassies
in other parts of the world. Surveys of the major plants and industrial
facilities were made throughout Latin America ~ the war at the specific
request of the Array and Navy. One hund~d and tvPe~ity-six facilities were
surveyed and appropriate recommendations made for their protection.
The FBI has undertaken on request of the State D~~3artment, special
security aria intelligence coverage in connection with internation,~,-c~erences
held in Latin America. Numerous investigations have been made at the request
of the United States Ambassadors in the various countries. A complete survey
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with reference to the platinum industry in Colombia, one of the leading.
countries in platinum production in the world, was made during the war at a
time when it was believed considerable platinum was being smuggled to the
Axis. Investigations have been made far numerous other governmental agencies,
such as an investigation of the lack of security on the initial flight of the
8-29 bombers to China, a check an a Chinese narcotic ring in bdexico for the
Treasury T~epartment, and a check on counterfeiting of United States money in
Ecuador, etc.
LIAISON OFFICES IN THE EASTuRN HEMISPHL+'RE
In addition to the above-outlined operations in Latin America, the FBI
has special. agents stationed in a number of Eastern Hemisphere countries to
act in liaison not only with United States governmental intelligence agencies
but with foreign intelligence agencies. fihese liaison agents aye able to insure
the expeditious securing of information which is vital to the internal security
of the United States and necessary to the jurisdiction and responsibilities of
the FBI in the United States and-Latin America. It is not passible to completely
separate foreign and domestic intelligence; for instanc8, the statements made
by and the activities of Jacques 1?uelos, the Communist leader in France, had a
profound effect on the Communist movement in the United States. The handling of
intelligence connected with the various foreign nationality groups in the United
States vitally depends upon information from their home countries which is,
of course, obtainable only in foreign intelligence fields. The detection of
enemy espionage agents in the United States, of course, should begin by the
detection of their departure from their home countries and their activities
should be follamred throughout the various countries in which they may travel
on their way to the United States.
In Latin America through the war period the AxLs subversive movements
were principally operated out of the Iberian Peninsula and the communications
system utilized by the Axis agents touched on many other Eastern Hemisphere
countries. The handlin; of counterespionage operations against the Axis
subversive attacks in both Latin America and the United Statds necessitated a
prompt abtaina.ng of information from the European Continent as well as other
places in the world. The FBI Liaison Agents in the Eastern Hemisphere
facilitated the obtaining of this information which was and continues t o be
an absolute necessity in connection with the? jurisdiction and responsibilities
of the Federal. Bureau of Investigation in the ~Iestern Hemisphere.
There are now stationed Legal Attaches and FBI Liaison Agents in the
American Embassies in Paris} France, Rome, Italy, Lisbon, Portugal, Madrid,
Spain and Landon, England, and with the Un3.ted States Army in Manila, Philippine
Islands and Tokyo, Japan.
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