LETTER TO HONORABLE ALLEN W. DULLES FROM MAURICE H. STANS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R003200200002-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: September 3, 2003
• Sequence Number: 2
• Publication Date: July 23, 1958
• Content Type: LETTER

Approved For se '20,03/10/07 : CIA-RDP80B016764&200200002-5
I. I
? - - ' 1 WHEN WITH ATTACVT
EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON 25. D. C. .
ley dear Mr. Dulles :
Enclosed are six copies of this year's foreign, positive,
strategic intelligence cost estimates together with comparative
summary data for fiscal years 1956 and 1957. The tabulations
have been prepared by the Bureau of the Budget for its on
use and for use by the President's Board of Consultants on
Foreign Intel_igence Activities on the basis of estimates
submitted by the several departments and agencies engaged
in intelligence activities.
Because of the detailed information on covert collection
included in the estimates, the Bureau is not distributing
copies directly to the individual contributors. Rather, we
are again taping the liberty of sending multiple copies to
you as Chairman of the Intelligence Advisory Committee with
the request that you mare whatever distribution you deem
appropriate.
Sincerely yours,
Honorable Allen W. Dulles
Director of Central Intelligence
dashington 25, D. C.
On file OMB release instructions apply.
Approved For Release 2003/10/07: CIS
TS/4SO z4/
f4W90200002t
 Appr~d For R e 2003/10/07: CIA-RDP80B01676R O 00200002-5
GNATURE RECORD AND COVER SHEET
IL-
DOCUMENT DESCRIPTION
REGISTRY
SOURCE
CIA CONTROL NO.
Bureau cf ud rt
16, O4a
DOC. NO. Itr. !u1~ G.
DATE DOCUMENT RECEIVED
DOC. DATE:
COPY NO. C~ 1.
LOGGED BY
NUMBER OF PAGES ;age (6 p
roi,, 1.)
. 1. l;
NUMBER OF ATTACHMENTS
ATTENTION: This form will be placed on top of and attached to each Top Secret document received by the Central Intel-
ligence Agency or classified Top Secret within the CIA and will remain attached to the document until si,ch time as it
is downgraded, destroyed, or transmitted outside of CIA. Access to Top Secret matter is limited to Top Secret Control,
personnel and those individuals whose official duties relate to the matter. Top Secret Control Officers who receive
and/or release the attached Top Secret material will sign this form and indicate period of custody in the left-hand
columns provided. Each individual who sees the Top Secret document will sign and indicate the date of handling in the
right-hand columns.
REFERRED TO
RECEIVED
RELEASED
SEEN BY
OFFICE
SIGNATURE
DATE
TIME
DATE
TIME
SIGNATURE AND OFFICE
DATTE
73
t~ yO 0
3a
? /
e_1
I)r
vl
l
5X1
2~w
t
t
NOTICE OF DETACHMENT: When this form is detached from Top Secret material it shall be completed in the appropriate
spaces below and transmitted to Central Top Secret Control for record.
DOWNGRADED
DESTROYED
DISPATCHED (OUTSIDE CIA)
TO
BY (Signature)
TO
BY (Signature)
WITNESSED BY (Signature)
BY (Signature)
DATE
l
DATE
OFFICE
DATE
Apprni/ad Fnr P
ipagp 2003/10/07 - -
3 0200002-5
TOP SECRET
 Approved For base 2003/10/0';7'"'-'
I
01 P01676413200200002-5
1. This is the fifth in a series of annual reports prepared by the
Bureau of the Budget on estimated foreign, positive, strategic intelligence
efforts. Like earlier reports it is subject to a rather wide margin of
possible error because the existing budget and accounting structure of the
agencies does not permit easy identification of all intelligence activities.
The tables represent estimates which cut across a large number of separate
appropriations and the data cannot be related directly to actual accounting
figures. The precise margin of error, which is most significant in Department
of Defense estimates, cannot be determined but it is probably at least 25%,
meani_ that the real cost of intelligence activity may amount to as much as
25X1
2. Included in this report are summary tables for the past three years
which are intended to give some indication of trends in the total intelligence
progrsm. During these -three years, there has been very little change in the
format of the reports and the criteria which served as their base.
25X1 3. As is evident, roughly I of total intelligence costs are
borne by the Department of Defense. The non-Defense agencies appear to have
achieved a degree of consistency in interpreting the criteria issued by the
Bureau of the Budget and their reports over the past three years evidence a
high degree of stability. For the Defense agencies, however, quite the contrary
is true; here we find large differences in the various reporting categories
from year to year, explained presumably on the basis of varying interpretations
of the reporting criteria. It is hoped that prior to the call for estimates
for FY 1959 more specific guidelines can be agreed upon, so that the consumer in
subsequent years will have a greater assurance that each of the service estimates
are based on common understandings.
i.. For this year's report Army cost and manpower estimates were based
on submissions from the various continental armies, operating agencies, and
overseas commands, using actual cost data and obligations where available.
Navy estimates were based on known commitments for the first half of FY 1958
and then doubling these commitments. They were dram up entirely in Washington
without inquiry from the field. Air Force estimates on the other hand are
largely a compilation of field agency submissions which were based on the latest
financial plans of the contributors.
5. The Department of the Army has spread the cost of additions to capital
equipraent.into categories 1 through 4, whereas the other services reported
these items net of additions to capital equipment.
Approved For Release 2003/10/07 : CIA-RDP80B01676R00320020000#9
 Approved For Release 2003/10/07 : CIA-RDP80BO1676R003200200002-5
Next 3 Page(s) In Document Exempt
Approved For Release 2003/10/07 : CIA-RDP80BO1676R003200200002-5
 Approved For Fuse 2003/10/07: CIA-RDP80B01676 41 3200200002-5
SIGNATURE RECORD AND COVER SHEET
DOCUMENT DESCRIPTION
REGISTRY
SOUR(MaurYCe H. Stars
Bureau of Budget
CIA CONTROL NO.
165046
DOC. NO.
DATE DOCUMENT RECEIVED
DOC. DATE
L
v
COPY NO.
LOGGED BY
NUMBER OF PAGES 5
NUMBER OF ATTACHMENTS
1
ATTENTION: This form will be placed on top of and attached to each Top Secret document received by the Central Intelligence Agency or
classified Top Secret within the CIA and wilt remain attached to the document until such time as it is downgraded, destroyed, or transmitted
outside of CIA. Access to Top Secret matter is limited to Top Secret Control personnel and those individuals whose official duties relate to the
matter. Top Secret Control Officers who receive and/or release the attached Top Secret material will sign this form and indicate period of
custody in the left-hand columns provided. Each individual who sees the Top Secret document will sign and indicate the date of handling
in the right-hand columns.
REFERRED TO
RECEIVED
RELEASED
SEEN BY
OFFICE
SIGNATURE
DATE
TIME
DATE
TIME
SIGNATURE AND OFFICE
DATE
ER
A7&
/0D
EO/DCI
25X1
c2 Q.1,
6
.~
b
V
0
~A
gA
NOTICE OF DETACHMENT: When this form is detached from Top Secret material it shall be completed in the appropriate spaces below and
transmitted to Central Top Secret Control for record.
DOWNGRADED
DESTROYED
DISPATCHED (OUTSIDE CIA)
TO
BY (Signature)
TO
BY (Signature)
WITNESSED BY (Signature)
BY (Signature)
DATE
DATE
OFFICE
DATE
FORM NO
I APR S5 26 . 26 USE PREVIOUS EDITIONS. TOP SECRET
TOP SECRET
 Approved For Release 2003/10/07 : CIA-RDP80BO1676R003200200002-5
EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON 25, D.C.
My dear Mr. Dulles:
In reference to NSC Action No. 1978, representatives of the
Bureau of the Budget have discussed NSC Intelligence Directive
No. 1 with General Cabell, General Truscott, and Mr. Robert Amory.
The discussions were most helpful in providing necessary background
information with regard to several aspects of the directive; in
addition, our representatives suggested certain modifications
which were understood to be acceptable to General Cabell for
further consideration at an appropriate level.
Our primary concern, as you know, centered upon the relation-
ship of the Director of Central Intelligence to the new U.S.
Intelligence Board. The Bureau has long supported the principle
of increased coordination of intelligence activities, and we
welcomed the opportunity to discuss with your staff how the new
NSCIDs relate to this objective. We do have some continuing concern
about the language of NSCID No. 1, but since it does appear that
present members of the USIB have a clear and common understanding
as to the responsibilities which will now be vested with the
Director of Central Intelligence for coordination of our foreign
intelligence activities, we are prepared to withdraw our previously
expressed reservations with respect to paragraph 2a. In the case
of future revisions, however, we would hope that the Bureau of the
Budget would be afforded an early opportunity to participate in
order to assist in minimizing possible future ambiguities.
The composition of the new USIB has given us some concern,
although we realize that it reflects accurately current intelligence
capabilities within the Government. In view of possible organiza-
tional changes which may ensue under the Defense reorganization
program, we feel that the membership of the Board may be a proper
subject for consideration at a later date.
Approved For Release 2003/10/07 : CIA-RDP80BO1676R003200200002-5
 Approved Release 2003/10/07: CIA-RDP80B0*6R003200200002-5
EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON 25, D. C.
My dear Mr. Dulles:
In reference to NSC Action No. 1978, representatives of the
Bureau of the Budget have discussed NSC Intelligence Directive
No. 1 with General Cabell, General Truscott, and Mr. Robert Amory.
The discussions were most helpful in providing necessary background
information with regard to several aspects of the directive; in
addition, our representatives suggested certain modifications
which were understood to be acceptable to General Cabell for
further consideration at an appropriate level.
Our primary concern, as you know, centered upon the relation-
ship of the Director of Central Intelligence to the new U.S.
Intelligence Board. The Bureau has long supported the principle
of increased coordination of intelligence activities, and we
welcomed the opportunity to discuss with your staff how the new
NSCI>s relate to this objective. We do have some continuing concern
about the language of NSCID No. 1, but since it does appear that
present members of the USIB have a clear and common understanding
as to the responsibilities which will now be vested with the
Director of Central In-*"elligence for coordination of our foreign
intelligence activities, we are prepared to withdraw our previously
expressed reservations with respect to paragraph 2a. In the case
of future revisions, however, we would hope that the Bureau of the
Budget would be afforded an early opportunity to participate in
order to assist in minimizing possible future ambiguities.
The composition of the new USIB has given us some concern,
although we realize that it reflects accurately current intelligence
capabilities within the Government. In view of possible organiza-
tional changes which may ensue under the Defense reorganization
program, we feel that the membership of the Board may be a proper
subject for consideration at a later date.
Approved For Release 2003/10/07: CIA-RDP80B01676 032, 0Q"-5 ,
BOB
to
DCI
re
 Approved For ease 2003/10/07 : CIA-RDP80B0167*3200200002-5
General Cass'-dy, Staff Director of the Presidentts Board of
Consultants on Fo:'eign Intelligence Activities, has been apprised of
our discussions, and it is our understanding that General Hull concurs
in the above conclusion with respect to paragraph 2a. Because of the
wording of NSC Ac-:,ion No. 1978, however, you may wish to check with
him formially.
Sincerely yours,
Director'
Honorable Allen W.. Dulles
Director of Central Intelligence
Washington 25, D. C.
cc: Honorable Gordon Gray
General J. E. Hull
Approved For Release 2003/10/07 : CIA-RDP80BO1676R003200200002-5
 Approved Fo Iease 2003/10/07: CIA-RDP80BO16 0320021001002
SIGNATURE RECORD AND COVER SHEET
DOCUMENT DESCRIPTION
REGISTRY
SOURCE
BurOBudget
CIA CONTROL NO.
165100
DOC. NO. -
DATE DOCUMENT RECEIVED
DOC. DATE 11 Se t
11 Sept 58
COPY NO. #1
LOGGED BY
NUMBER OF PAGES
EAG
NUMBER OF ATTACHMENTS
None
ATTENTION: This form will be placed on top of and attached to each Top Secret document received by the Central Intel.
ligence Agency or classified Top Secret within the CIA and will remain attached to the document until sl,ch time as it
is downgraded, destroyed, or transmitted outside of CIA. Access to Top Secret matter is limited to Top Secret Control
personnel and those individuals whose official duties relate to the matter. Top Secret Control Officers who receive
and/or release the attached Top Secret material will sign this form and indicate period of custody in the left-hand
columns provided. Each individual who sees the Top Secret document will sign and indicate the date of handling in the
right-hand columns.
REFERRED TO
RECEIVED
RELEASED
SEEN BY
OFFICE
SIGNATURE
DATE
TIME
DATE
TIME
SIGNATURE AND OFFICE
DATE
ER
9,-
DCI log
NOTICE OF DETACHMENT: When this form is detached from Top Secret material it shall be completed in the appropriate
spaces below and transmitted to Central Top Secret Control for record.
DOWNGRADED DESTROYED
DISPATCHED (OUTSIDE CIA)
TO
BY (Signature)
TO
BY (Signature)
WITNESSED BY (Signature)
BY (Signature)
DATE
Approved For R
DATE
elease 2003/10/07 : CIA-RDP80BO1
OFFICE
76R003200200002-5
DATE
TOP SECRET
TOP SECRET
 TOP SECRET
41 AOFP&./ed or se 2003/10/07: CIA-RDP80B01676 3200200002-5
SIGNATURE RECORD AND COVER SHEET
DOCUMENT DESCRIPTION
* 2 Attachments: T/S 165046 (Cpy #4) and
REGISTRY
SOURCE
DD/S
T/S 165046/a (Photo Cpy #4)
CIA CONTROL NO.
T/S 141167
flOC. NO.
.
DATE DOCUMENT RECEIVED
DOC. DATE 7 1958
COPY NO. 1 of 4
LOG
2
NUMBER OF PAGES 1
NUMBER OF ATTACHMENTS
2*
ATTENTION: This form will be placed on top of and attached to each Top Secret document received by the Central Intel-
ligence Agency or classified Top Secret within the CIA and will remain attached to the document until sl,ch time as it
is downgraded, destroyed, or transmitted outside of CIA. Access to Top Secret matter is limited to Top Secret Control
personnel and those individuals whose official duties relate to the matter. Top Secret Control Officers who receive
and/or release the attached Top Secret material will sign this form and indicate period of custody in the left-hand
columns provided. Each individual who sees the Top Secret document will sign and indicate the date of handling in the
right-hand columns.
REFERRED TO
RECE VED
RELEASED
SEEN BY
OFFICE
SIGNATURE
DATE
TIME
DATE
TIME
SIGNATURE AND OFFICE
DATE
DD/S
s~
8 r
7
o91s'
X
" DCI
L
2
25X1
25X1
NOTICE OF DETACHMENT: When this form is detached from Top Secret material it shall be completed in the appropriate
spaces below and transmitted to Central Top Secret Control for record.
DOWNGRADED
DESTROYED
DISPATCHED (OUTSIDE CIA)
TO
111.
BY (Signature)
TO
BY (Signature)
WITNESSED BY (Signature)
BY (Signature)
DQ,TE
Approved For Re
DATE
lease 2003/10/07 : CIA-RDP80BO16
OFFICE
6R003200200002-5
DATE
TOP SECRET
 Approved For Release 2003/10/07 : CIA-RDP80BO1676R003200200002-5
T/S 141167
TOP SEC 51T
7 July 1958
25X1
25X1
25X1
25X1
25X1
25X1
25X1
MEMORANDUM FOR: Director of Central Intelligence
SUBJECT : Report by the Bureau of the Budget on Foreign,
Positive, Strategic Intelligence Costs for FY 1958
1. This memorandum is submitted for your information only.
2. The attached report has been reviewed. There is a minor differ-
ence of Obetween the total shown for CIA and the correct amount, re-
sulting primarily from a misunderstanding of our report. In addition, there is
a small difference of six (6) in the number of personnel, due primarily to a cler-
ical error in the compilation of the report in the Bureau. For general purposes
of the report, however, to reflect the general magnitude of the Agency the totals
are satisfactory. Of particular interest in reviewing this report are the compar-
ative figures shown for the Fiscal Years 1956, 1957, and 1958. It will be noted
that CIA costs in intelligence have increased from a proximate) in
FY 1956 to in FY 1957 and in FY 1958. This is in ac-
cordance with the predictions made several years ago that intelligence operations
in the Agency would continue to grow rather slowly. In reviewing the amounts
reflected. in the summary for other agencies, however, two are of particular
interest. The reports reflect the growth of the intelligence costs in the Navy
from abouti in FY 1956 to 0 in FY 1957, and
in FY 1958. During the same period the Air Force figures reflect a reduction
from I in FY 1956 tol in FY 1957, and in
FY 1958.
3. On the personnel side the Navy reflects increases comparable to
the increases in dollars, from and
in FY 1958. The Air Force does not, however, reflect such wide varia-
tion, the variation being d 0 in
FY 1958. A peculiar variation in personnel strength is also reflected in the NSA
figures for the three fiscal years which does not parallel in any way the variation
in dollar amounts.
4. It is requested that a copy of this report be furnished the Comptroller
for retention inasmuch as there will no doubt be many references to it by the Bureau
of the Budget during the course of the current fiscal year
L. K. White
Deputy Director
Approved For ReleaseP3/eA-RDP8d~E~B9S#003200200002-5
ii~~ ('.>.w 1 of d
25X1
25X1
25X1
25X1
25X1 25X1
25X1
25X1