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Document Creation Date: 
December 12, 2016
Document Release Date: 
July 24, 2000
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Publication Date: 
October 16, 1958
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PDF icon CIA-RDP80-01237A000100010032-0.pdf100.06 KB
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