DEAR ALLEN:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79S01057A000200070043-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 8
• Document Creation Date: December 16, 2016
• Document Release Date: April 16, 2001
• Sequence Number: 43
• Publication Date: September 9, 1954
• Content Type: LETTER

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State Dept. declassification & release instructions on file
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In accordance with the Report of the survey of USIA's
Intelligence Needs and Assets the Department has examined whether,
through the curtailment of other activities of its intelligence organi-
zation or elsewhere, the necessary funds could be provided for the
recommended increased intelligence support to USIA, and agencies
with related intelligence requirements. The Department has found
that no such curtailment is possible.
The foregoing statement is submitted in order that CIA
may proceed with the implementation of the Report, pending a
reexamination of the method of financing the NIS Program.
Budget estimates in support of an expanded NIS
program in the Department have been submitted to the CIA
Comptroller at his request, in two parts: one relating to intelli-
gence on international communism; the other concerning intelligence
on selected segments of foreign societies, media research and
analysis, foreign propaganda, impact of factors affecting public
opinion and pertinent descriptive detail on foreign localities. The
Comptroller suggested this segregation of estimates in view of your
request that and I discuss, in the near future,
the location of responsibility for intelligence on international
communism.
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sincerely yours,
W. Park Armstrong, Jr.
The Honorable
Allen W. Dulles,
Director, Central Intelligence Agency.
2430 "E" Street, N. W. ,
Washington 25, D. C.
State Dept. declassification & release instructions on file
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eptember 15, 1954
On August 31, 1954, 1 transmitted to you budget estimates
for expansion of the Department's NIS Program, involving additional
Fiscal Year 1955 financing for intelligence on International Communism
and for increased intelligence support for U:.-JA and agencies with
related intelligence requirements.
- ince that time, the Department's NIS Coordinator,
Mr. Daniel Clinton, has been asked by
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of your Agency to arrange the submission of an alternative budget
statement, relating to support for USIA and agencies with related
intelligence requirements, to be based on different terms of reference than
was the former statement. Accordingly, the revised statement is
25X1A attached and justifies the sum of The
previously submitted estimate for intelligence on International
Communism remains unchanged.
It will be appreciated if you can keep us advised, from time
to time, as to the status of this budget estimate. If any further infor-
mation is required, we will, of course, be pleased to furnish it.
{-sincerely yours,
25X1A
John F. Killea
Director, t:xecutive Staff,
Intelligence
Central Intelligence Agency,
2430 "E" Street, N. W. ,
25X1A Washington 25, D. C.
1-~ ttachment
r:C : CIA
I- CIA
Mr. Clinton - (MR
Mr. Evans - OiR
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Location of Primary Responsibility for
Research in International Communism
Problem:
1. To reexamine whether State or CIA should have primary
responsibility for research in the field of international communism.
Discussion:
2. Histor : Prior to the reorganization of CIA as a result
of the Dulles Report in the fall of 1950, some efforts had been
made, through an informal interagency committee, to bring to-
gether those researchers in the IAC agencies who were following
international communism. This coordination was not productive of
research studies, though it was no doubt beneficial to the mem-
bers to exchange ideas on this subject.
3. The Deputy Director of Central Intelligence,
Mr. Jackson, in 1951 wrote to the Special Assistant for Intelli-
gence, Department of State, recognizing the responsibility of
the Department for conducting research on international com-
munism to meet the requirements of all agencies and stating
that research in this field by the former Office of Reports and
Estimates was discontinued.
4. Consequent upon this, it is understood the Department
established a T/O of about twenty to deal with the subject. How-
ever, due to budgetary difficulties, the special staff on this
subject never exceeded ten and, something over a year ago, due
to budget reductions, it was reduced to one person. It should be
recognized, however, that area researchers have normally taken
account of the communist movement in the countries of their
concern, such matters being a part of the political life of the
countries.
5. In the spring of 1952, the Office of Intelligence
Coordination undertook discussions with Mr. Angleton and
others of the then OSO (now FI) regarding means of meeting
their needs in this field in connection with a more general exami-
nation of ways of meeting the intelligence research needs of the
operational offices, then OPC and OSO. As a result of discussion
between Mr. Angleton, State/OIR (Mr. Evans), and OIC, as well
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as for other reasons to be noted shortly, Mr. Angleton came to
the conclusion that research in this field should be centered in
CIA. A major factor in his conclusion was the problem of
handling CE information.
6. After the establishment of
I I it was normal procedure for that office-to
seek to mee intelligence needs by existing intelligence organi-
zations, if at all possible, and only in the event that the other
intelligence agencies had not or could not produce the research
was it undertaken inlI Since that time, =has requested
the State Department to produce studies required for operational
purposes. Although bequests for political reviews in this
field (notably as in IR 6165) have been successful, requests for
detailed basic research under terms described in paragraph 9
below have not met with equal success because of limited
personnel available.
7. Production Outside of State: Among the service intelli-
gence agencies it is understood that the Navy and Air Force
follow international communism only to the extent necessary to
support their respective counterintelligence and internal security
requirements. G-2, Department of the Army, apparently main-
tains similar coverage and, in addition, has one analyst of its
Western Branch devoting full time to the international communist
problem as affecting that area.
8. Within CIA, intelligence on international communisn is
produced by:
(a) A unit whose mission is to provide
staff supervision over
It should be noted that the mission o is
I Iunit does not require it to conduct basic intelligence
research on a subject which essentially is one of common
concern. Nor is it staffed to provide such service. The
lack of such service from intelligence production elements,
however, has compelled it to produce research materials
on the Communist Party internationally, primarily as
exchange materials.
(b) Country Desk analysts in OCI of DDI, who deal
with international communism on a fragmentary, country-
by-country basis within the limitations of OCI's internal
needs. Such production is not adequate to meet those
needs.
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(c) I Iwhich provides operational intelli-
gence support for the clandestine services by conducting
research when other intelligence units cannot or will
not, has under this circumstance produced research on
international communism, notably on Guatemala.
9. A Refined Statement of What is Needed: In connection
with the efforts of to make clear to the Department
of State what it required or i s purposes. a statement of terms
of reference was prepared. This was used in connection with
the preparation by the Department of State of a prospectus on
what research would be undertaken to implement the USIA
Survey in the field of international communism. It is thought
by DDP to be an improvement upon their own statement of needs
and is in addition recognized by OCI and ONE as sufficiently
comprehensive to meet the needs which they see also. It should
serve, therefore, as the terms of reference for international
communism research, wherever the research is undertaken
10. U. S. Agencies' Interest in the Subject: While the
State Department has been recognized as having the dominant
interest in this field and the primary responsibility for production,
the Department has not apparently (judging from the deployment
of its personnel resources) considered this subject to be of as
vital concern to meet departmental needs as other subject matter.
The interests of CIA have been most marked in the DDP area.
ONE and OCI have stated that more coverage is needed to meet
their needs.
11. In addition, in the last two years, the PSB and the OCB
have indicated requirements, particularly as a result of the
activities of I Iwhen he was in the Government
in connection withi
SC 144, which requests
surveys of the Communist par n all. Latin American countries.
The recent USIA Survey shows that Agency to have an important
interest in research in this field. Whereas the military may
likewise have certain unfulfilled needs, particularly in their
psywar divisions, they have not been as emphatic in their ex-
pression of their needs as those listed above.
12. Capabilities for Research in International Communism:
It is generally considered that the State Department's files in
this field are, going back some seven or eight years, the most
complete extant in the Government except in the field of counter-
espionage where along with its entree into the files of
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other agencibs such as the FBI, is the most complete. Neither
State, DDP, nor OCI, or any other part of CIA, has personnel
available to conduct, along with their other assignments, the
extensive research which has been outlined as required. In
addition, DDP is not disposed to undertake basic intelligence
research as a service of common concern.
13. Ideal Characteristics of Research in International
Communism: If the Government is to attack this subject
aggressively and adequately, it would appear that in addition
to the development of a staff especially devoted to this type of
research, two arrangements are essential: (a) all-source
research; (b) integration with CE information. The second
cannot be accomplished in the State Department. Their product
could, perhaps, though somewhat awkwardly, be integrated
with CE information within the Agency. The Agency's policy
regarding all-source research as contrasted with the Depart-
ment's policy in the management of special intelligence would
seem to indicate that this condition could be met more readily
in the Agency.
14. Financial Considerations: Pending the outcome of
the reexamination of the current policy followed by the Agency
in reimbursement for NIS work conducted by the Department of
State, there appears to be no distinction between such reimburse-
ment for NIS on international communism and for other NIS
work.
15. The Alternatives: It would appear that the case for
leaving the primary responsibility for production in this field
to the Department of State rests on two main considerations:
(a) That the subject matter would normally be con-
sidered as falling under the functional assignment made
to the State Department in NSCID- 3 j
(b) That the Department has amassed extensive
files in this field;
16. It would appear that the case for transferring the
primary responsibility for production in this field to the
Agency rests on three main considerations:
(a) That, by virtue of its long-expressed need for
expanded research for operational purposes, CIA
would do a more aggressive job;
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(b) That all-source research could be best conducted
in the Agency;
(c) That the integration of such research with CE
information can be accomplished most efficiently within
the Agency.
17. If the primary responsibility in this area were
assigned to the Agency, and there was no other fundamental
change in NSCID-3 assignments, the work of the area divisions in
"R" would still have to involve some work on international com-
munism because it is an integral part of political research.
Furthermore, it is anticpated that the military would want to
retain personnel such as they have in this field. It might well
be in due course that by virtue of a concentration and emphasis
by a special staff in CIA that the other agencies would gradually
come to rely more exclusively on such work and decrease their
efforts. A CIA staff would need to accept the obligation to honor
the requests and guidance of the various users.
Conclusion:
18. On balance, it appears that it is advisable to arrange
for the transfer of primary responsibility in the field of inter-
national communism from the Department of State to CIA.
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