LETTER TO THE HONORABLE DEAN RUSK FROM JOHN A. MCCONE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000400100011-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 15, 2016
• Document Release Date: April 19, 2004
• Sequence Number: 11
• Publication Date: March 11, 1965
• Content Type: LETTER

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Honorable Dean wok
rotary of State
hington, D. C. 2,3320
Dean:
DP80B01676R004100100011-7
11 MAN 196';
discussions with the Bureau of the Budget a problem ha.
aricin with respect to the Agency's production of intelligence on
the economies of non-Communist countries. The Bureau appears
to interpret the Agency'. lintted research and production in this
area as contrary to the provisions of DCII) No. 3/1 (Production
and Coordination of Foreign Economic Intelligence), which allocates
primarz production responsibility of economic intelligence on
foreign countries outside the Sine-Soviet Bloc to the Department
of State. At the same time, this directive provides that each
department or agency. . . shall maintain adequate research
facilities to accomplish its departmental intelligence production
mission, and. . may make such studies as it believes necessary
to supplement intelligence produced by other depart:lents and
agencies. Paragraph 7c. of NSCID No. 3, which discusses the
CIA's responsibilities for producing economic intelligence on the
Sino-Soviet Bloc, states that the CIA may produce such other
intelligence as may be necessary to discharge the statutory
responsibilities of the Director of Central Intelligence.
While continuing to recognize the Department's primary respon-
sibility for the production of Free World economic intelligence, I
him found it necessary to develop within CIA a limited capability
for all-source economic analyses on non-Communist countries.
Part of the need to create this capability grew from the discharge
of CIA's responsibility for providing intelligence on Communist
?u conoxnic activities in non-Communist countries.
ency's responsibility to produce,
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evel? timely all-source economic intelligence on
opments in non-Communist areas precludes, as a
r, our relying wholly on the other intelligence
of the community. Lastly, or the Director of
elligence, I must maintain within the Agency the cape-
obtaining immediate all-source economic intelligence
aring on critical national policy question. and also blears that
e within the Agency the competence to evaluate the economic
intelligence on nee-Communist areas obtained from the Depart-
ment and other agencies upon which we are dependent.
We have found it helpful to reinforce the Department's economic
contributions to National Estimates particularly since 1961 When
the Department consciously reoriented its economic intelligence
effort away from more basic research toward direct support of
policy officials in the form of brief departmental reports and
memoranda. It le my understanding that the redaction in the
Department's capability for economic intelligence research on
non- Communist countries has stemmed aot only from this reorienta
tion but also from the transfer to CIA. at Mr. Iiilsrnan's request,
at the Department's NIS production responsibilities.
We understand the adjustments that the Department has made
La this field and believe that the people concerned, both in this
Agency and in the Department, are fully aware of the economic
intelligence produced in their respective organisations.
Ike,* Informed the Bureau of the Budget that my responsibili-
ties as DCI require that I znsintaia such limited capability as we
have developed for all-source analyses of the economies of non
Communtit countries, and / have also had the matter brought to
attention. The proliferation of new nations, particu-
larly in Africa, and the increasing challenge of Communist initia-
tives in these newly emergent nations has brought about a sharp
Increase in the demands, at the highest government levels, for
economic intelligence. In my view, it is necessary for the
Department and CIA to continue at least their present joint pro-
duction capabilities on non-Cemmunist area. if we are to respond
to national economic intelligence needs of urgent concern. This
could not be done if the capability of either the Department or of
the CIA in this field were reduced.
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My purpo in writing you is to insure that you are aware of
ray views on the importance of maintaining both State and CIA
production capabilities at no lower than present levels and to
Inform you that I am advising the Bureau of the Budget that we
consider DCII) No. 3/1 properly interpretable as permissive of
those intelligence production activities.
Distribution:
Orig. and 1 - Addressee
1- DCI
ER,
1 - DD/I
2- AD/RR
1 0/BPA.M
D/DCl/NIPE
1'.
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28 Jan 65)
Sincerely,
Jelin A McCone
Director
CORM
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