NSC SEMI-ANNUAL SUPPLEMENTARY STATUS REPORT ON THE FOREIGN INTELLIGENCE PROGRAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00750A000700070044-8
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 9, 2016
• Document Release Date: September 21, 1998
• Sequence Number: 44
• Publication Date: March 2, 1954
• Content Type: REPORT

CIA 36337-e Copy No.A2
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2 March 1954
NSC Semi-Annual Supplementary Status Report
on the Foreign Intelligence Program
1. Attached is a copy of subject report as re-
produced by the National Security Council Secretariat.
2. This report is based on IAC-D-55/6 (Second
Revision), 10 February 1954, as modified by the IAC
at its meeting on 16 February (See IAC_M_141, paras.
2 and 3).
Secretary
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2 March 1954
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February 19, 1951+
Pat 8 - THE FOREIGN INT#L GEP?CF ROGR
(Prepared by the Central Intelligence Agency and
concurred in by the Intelligence Advisory Committee)
(This report states the most significant changes which
occurred during the period June 30 - December 31, 1953;
it supplements the full report on the status of the program
on June 30, 1953, issued as No. 9, NSC 161,)
,
Pace
I.
Objectives . . . . . . . . . . . . . . . . .
1
II.
Coordination . . .
3
III.
National Estimates . . .
3
IV.
Political, Social and Cultural Intelligence .
~+
V.
VI.
Military Intelligence . . . . . . . . . , .
Economic Intelligence . . . . . . . . . . .
5
VII.
Scientific and Technical Intelligence . . .
5
VIII.
Psychological Intelligence . . . . . . . .
5
IX.
Basic Intelligence . . . , . . . . . . . .
6
X.
Warning of Attack , .
6
XI.
Collection . . . . . .
7
XII. -
Support and Collation Facilities .
10
I. OBJECTIVES
1, National Security Act
For the purpose of coordinating the intelligence
activities of the several Governmental departments and
agencies in-the interest of national security, it shall be
the duty of the Agency, under the direction of the National
Security Council-- --
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(1) to advise the National Security Council in
matters concerning such intelligence activities of
the Government departments and agencies as relate to
the national security;
(2) to make recommendations to the National
Security Council for the coordination of such intel-
ligence activities of the departments and agencies
of the Government as relate to the national security;
(3) to correlate and evaluate intelligence re-
lating to the national security, and provide for the
appropriate dissemination of such intelligence within
the Government using where appropriate existing
agencies and facilities: Prov}A.,gd, That the Agency
shall have no police, subpoena, law-enforcement
powers, or internal-security functions.: Provided
furth, That the departments and other agencies of
the Government shall continue to collect evaluate,
correlate, and disseminate departmental Intelligence:
And_nrovied,f t r, That the Director of Central
Intelligence shall be responsible for protecting
intelligence sources and methods from unauthorized
disclosure;
(4) to perform, for the benefit of the existing
intelligence agencies, such additional services of
common concern as the National Security Council de-
termines can be more efficiently accomplished centrally;
(5) to perform such other functions and duties
related to intelligence affecting the national security
as the National Security Council may from time to
time direct.
2. NSC 162/2
h 10:
Develop and maintain an intelligence system cap-
able of :
(1) collecting and analyzing indications of
hostile intentions that would give maximum prior warn-
ing of possible aggression or subversion in any area
of the world;
(2) accurately evaluating the capabilities of
foreign countries, friendly and neutral as well as
enemy, to undertake military, political, economic, and
subversive courses of action affecting U. S. security;
(3) forecasting potential foreign developments
having a bearing on U. S. national security.
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II. COORDIATO T
1. When the IAC agencies concurred in the last re-
port (issued as No. 9, NSC 161), they pointed out that the
effects of budget cuts then recently imposed on intelligence
activities could not be assessed at that time. Since then,
the agencies have experienced the effects of budget re-
ductions and have been endeavoring to meet the situation
by shifting assets or curtailing activities considered to
be least urgent from the viewpoint of immediate require-
ments. The effect of this curtailment has not been com-
pletely apparent during the period under review. The most
serious effects of budget cuts have been felt in the col-
lection activities of the Foreign Service and even these
are being met, at least partially, by alternative activities.
2. Collectively, the agencies at the request of
the Bureau of the Budget, have developed a suggested list-
ing of categories of intelligence. activities as an aid to
the Bureau in its proposed budgetary analysis of intel-
ligence programs. This analysis should, among other re-
sults, aid the agencies in their continuing appraisal of
the costs of the foreign intelligence program.
3. Two Director of Central Intelligence Directives
were issued, and one revised, with the concurrence of the
IAC, during this period. DCID 7/1 establishes procedures
for insuring that all non-governmental individuals offering
foreign intelligence information are referred to CIA for
exploitation in accordance with NSCID-7. DCID 3/5 refines
procedures for the production of national intelligence
estimates. DCID +/2 was revised to include, in the priority
list of critical national intelligence objectives, Soviet
and Satellite capabilities and intentions for conducting
clandestine attack by mass destruction weapons.
III. NATIONAL F,IP
1. During the period of this report, the IAC approved
19 national intelligence estimates. These estimates have
been increasingly responsive to the requirements of the
NSC Planning Board. For example, in large part as a result
of the needs of the Planning Board for intelligence sup-
port in the formulation of policy, 6 national estimates
were produced dealing with the Soviet Bloc. In addition,
the NSC concern with the emergency situations in Korea and
Indochina resulted in the production of one estimate on
the former area and 3 on the latter.
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2. The IAC undertook 2 pioneer-type estimates during
the period of this report. The first was a general esti-
mate of the world situation over a 2-year period. This was
published in the third quarter of 1953. The second esti-
mate deals with the implications of increasing Soviet
nuclear weapon capabilities on the policies of selected
non-Communist courntries, This estimate is scheduled for
publication in the first quarter of 1954. Both of these
estimates are designed to provide intelligence support
for NSC broad, long-range planning.
3. Another current effort is designed to relate more
directly the work of collection and research activities to
the needs of the policy makers for national intel]igence.
At the direction of the IAC, the Board of National Esti-
mates is preparing recommendations for revising directives
on national intelligence objectives.
IV. POLITICAL, SOCIAL ?ANI CUL TI A IN'JELLIGENQ
The quality of analysis by the staffs producing
political, sociological and cultural intelligence has been
fully maintained and even improved. In part, the pressure
of demands on reduced staffs has been met by a stepping-
up of the long-term trend toward the merging of economic,
political, and sociological analysis in dealing with in-
dividual intelligence problems.
V. MILIT,Aa IN' ELLIGENQE
1. General
Currently, the Intelligence Community is seeking
to exploit fully presently available intelligence techni-
ques, both in production and in collection. Nevertheless,
coverage remains inadequate in critical areas, such as:
enemy war plans, early warning of attack, order of battle,
enemy localized military and para-military intentions,
military equipment development and production, guided mis-
siles, tactical atomic weapons, and technical and scientific
military developments. Substantial improvement in the
military intelligence field will depend largely upon the
increase in the scope and effectiveness of all intelligence
collection operations and the development of new collection
techniques, now being explored, against military intelligence
targets.
2. Qperatlonal Inte1ige nce
The best source of intelligence concerning enemy
units in Korea was cut off by the signing of the Armistice.
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Insufficient intelligence is available on the movement or
location of Chinese armed forces. The augmentation of U. S.
intelligence personnel in Viet Nam should result in some
improvement in reporting from that area.
3. largetir}g
Initial production of target materials for the
highest priority Air Force targets is almost complete for
the U.S.S.R. and is progressing satisfactorily for the
Satellites and approach areas. Only about one-half of the
comparable materials for highest priority Navy (all-weather)
targets have been placed in production.
VI. ECONOMIC INTELLIGENCE
1. The recent revisions of economic policy and plans
in the Soviet Bloc countries have led to an increase in the
flow of Soviet and Satellite data on production, trade,
and consumption, a considerable amount of which has been in
absolute terms. These new data should permit improved
estimates on rates of development and trends in particular
sectors of the Bloc economies.
2. Intelligence needed for enforcement of economic
defense measures has been improved during the last six
months by the operation of interagency organization to (a)
provide rapid collation and analysis of intelligence on
illegal transactions with the Soviet Bloc, (b) speed the
dissemination of intelligence to appropriate action agencies,
and (c) improve the receipt of information on priority
requests to the field.
VII. SC IENT IF iC_ AND TECHNICAL INTELLIGENCE
Phe bases of estimates of Soviet progress in the
field of atomic energy have improved in that recent addi-
tional scientific data have been receiv
VIII. PSYCHOLOGICAL INTELLIGENCE
1. Progress has been made in inter-agency coordina-
tion of psychological intelligence through panels and working
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4
groups for such operations as the Operations Coordinating
Board activities in support of Ambassador Lodge in the
U.N. 8th General Assembly.
2. Further progress has been made in refining re-
quirements for field collection facilities so that their
reporting will emphasize subjects such as rumor, minute
personality details, and opinions, which are pertinent in
Psychological intelligence.
3. The IAC has established, on a temporary basis, a
Resistance Intelligence Committee to coordinate the pre-
paration of studies of anti-Communist resistance and re-
sistance potential in the Soviet Orbit.
IX. BASIC INTF'LL IGENCE
1. National Intelligence Surveys (NIS) now complete
represent one-third of world-wide coverage, most of which
is on the JCS high priority areas.
2. Increasing emphasis is being given to revision of
published NIS under the maintenance program, and to the
production of Chapters I (Summary Brief).
3. The NIS Committee has authorized a survey of all
NIS users for guidance in the long range development of
the Program. The survey is now being conducted by the
several IAC agencies.
X. WARNING-OF ATTACK
1. The enemy's choice of the type of attack and the
origin of his attack greatly affect our early warning capa-
bility. For early warning of air attack, we are largely
dependent on radar and forward observation stations in
lieu of "inside" sources which in the past have frequently
been available for warning that an enemy was about to
decide to go to war. However, generally our advance warn-
ing largely depends on the sifting of masses of material
in our search for those indications of enemy activity which
suggest that they are taking measures to implement a
decision to attack. We are exploiting all available sources
of information and constantly striving to develop new and
improved means of detection of attack.
2. In October 1953 the IAC established an ad hoc com-
mittee to review, in the light of the present international
situation, the mission and operating procedures of the IAC
Watch Committee. Progress has been made in revising the
"mission and functions" of the Watch Committee, including
detailed methods of operation and nature of support.
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XI. COLLECTION
1. The Foreign Service
25X1X4
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The flow of informa-
tion from the Iron Curtain areas is deficient, but this
dificulty stems from limitations imposed by the Orbit
governments rather than from lack of field resources. In
other areas, there has been a significant drop in the
quantity of materials received, but there has not yet been
noted much basic change in the quality of current political,
sociological, and economic reporting.
There have been interruptions attributable to
temporary dislocations of personnel. In addition, deficien-
cies have been noted in the following fields;
,a. Peripheral reporting on the European Satellites
of the USSR.
J. Reporting of a background and analytical
nature.
r. Biographic reporting.
d. Procurement of publications other than re-
gular subscriptions, particularly from London and Rome.
Meanwhile, progress has been made in providing
the field with guidance instructions in political and
economic fields; most important posts have been covered ex-
cept in the Latin American area. In response to instruc-
tions, worthwhile contributions are now being received
from most posts in support of psychological intelligence
activities.
3. OversQQs Commgnds
Overseas commands continue to be a primary source
of information on Communist armed forces. The cessation of
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hostilities and loss of contact with enemy forces in Korea
has,of course, resulted in a sharp decline in the flow of
information on North Korean and Chinese forces.
1+. Aerial Reconnaissance
Recently, the Armed Services have been enabled to
take more advantage of their reconnaissance capability.
This capability continues to improve; research is progress-
ing in various fields of reconnaissance techniques. It
should be recognized that this capability must be exercised
within the framework of policy considerations of other
than an intelligence nature.
The photo interpretation capability is improving,
though it is still short of being completely satisfactory.
25X 1X7
Additional Central Asian transmitters are being mnnii-nrar
6. Foreign Radio Broadcasts
a. Monitoring
Coverage of Central Asia and the Baltic
states, previously reported as being less than desire is
being substantially improved
Propaganda An_avsis
A new series, "Radio Propaganda Reports
"
,
was initiated to meet the requirements of estimating offices
and psychological warfare activities for more numerous and
more specialized propaganda studies on substantive intel-
ligence problems.
7. Foreign Materials and EouiBment
Collection of Soviet Bloc items from both overt
and covert sources continued to increase and was substantially
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higher than for the comparable period in 1952. Items of
captured enemy material obtained in Korea prior to the end
of military operations are being analyzed and should provide
a flow of intelligence information over the next year. Im-
proved methods for the collection and exploitation of such
material in any future active theaters of war are under
intensive study. Of special interest has been the technical
exploitation of Soviet airdraft, communications,equipment,
and machine tools.
the implementation of NSC 1b9 rias been znhilatieu. c~)nln'+U
NSC 66/1 has been supplemented by NSC 169,
which provides a basis for a considerable expansion of pro-
grams concerned with monitoring of Soviet jamming and related
25X1X4a 9. 25X1X4a
As a result of economic
reporting from Pfloscow has shown an appreciable improvement.
Expansion of this program to include the Satellites is
underway.
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10. Foreign Languagg.Publications
Guidance of the collection of foreign language
publications by the Foreign Service has been strengthened
by assistance from CIA, as has the Washington processing
and distribution of such publications. The assignment of
XII. P T AND COLLATION JPZILITIL
1. Library t e
Lexical inventories for most of the languages
of intelligence interest, and annotated lists of intel-
ligence serial publications produced by some of the member
agencies, have been prepared.
2. InduUtri i Infor,~m o i
Indexing by tabulating machine methods to
speed the analysis of data is two-thirds complete for the
Soviet Union. Coding and indexing of end-product references
was recently begun for East Germany, with China to follow.
3. Foreign Radzo Fie, uci,; envy Usage File
Under authorization of NSC-169, CIA is esta-
blishing a "clearing house" for the collection, maintenance,
and evaluation of data on foreign usage of the radio
25X1D0a spectrum. A central file of radio frequency data collected
established and maintained, Analysis 'and evaluation of the
information contained in this central file will be under-
taken, and the results made as accessible as is consistent
with the best interest of the Government.
4. Extern Res arch
The External Research Staff, Department of
State, is stepping up its function of apprizing the Intel-
ligence Community of economic, political and related re-
search on foreign areas sponsored by foundations, universi-
ties, and individual scholars. It is preparing periodical
inventories of similar research sponsored by the Federal
Government and reports on research on psychological and
unconventional warfare.
The EIC has compiled an inventory of govern-
ment sponsored external economic research projects on the
Soviet Bloc for the period January 1, 1952, through
September 30, 1953.
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