MEMORANDUM FOR: DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE FROM L. K. WHITE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01048A001500040005-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 26
• Document Creation Date: December 27, 2016
• Document Release Date: December 27, 2012
• Sequence Number: 5
• Publication Date: October 19, 1965
• Content Type: MF

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19 October 1965
MEMORANDUM FOR: Deputy Director of Central Intelligence
The attached staff study, "Organizational Place-
ment of. the Board .and Office of National Estimates," should be
considered along with several other important points.
In an 8 September 1965 memorandum on
"Reorganization of DD/I, "Ray Cline specifically recommended the
transfer of the Office of Scientific Intelligence from DD/S&T to DD/I.
This memorandum also proposed a reorganization of DD/I along regional
lines. In an 8 October 1965 memorandum on the same subject, Ray
recommended as a first step toward reorganization along regional lines
the merger of the ONE Estimates Staff with the Area Staffs of the Office
of Current Intelligence. Ray told me, and I believe he also told you,
that unless the ONE and OSI questions are satisfactorily resolved, which
I understood to mean under his control, he was not interested in
remaining as the DD/I for the long pull. I have not made any study of
the pros and cons of OSI being in DD/I versus DD/S&T. However, I
understand that the Director does not wish to give this question serious
consideration at this time. Neither have I made any detailed study of
Ray's proposal to reorganize DD/I along regional lines, although it does
appear to have merit.
If the recommendations which I have made in
the attached staff study are approved, this will be a serious blow to
Ray's morale. It is, however, only one leg of the empire which he
wishes to build, the other two being the transfer of OSI and FMSAC to
DD/I and reorganization along regional lines. If my understanding of
the Director's wishes with regard to OSI is correct and if the Director
wishes to approve my recommendations, I suggest that you advise Ray
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that OSI and FMSAC are to remain in DD 5&T at least for the time
being. I
It then follows that reorganization along regional
lines should be postponed until Ray's successor has been chosen and
we have had time to study the regional reorganization independently.
STAT
Att: Staff Study
L-~V tl UL~- ~ C, L Lim
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MEMORANDUM FOR:
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(DATE)
FORM N0. REPLACES FORM 10-101
1 AUG 54 I O I WHICH MAY BE USED.
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UNCLAS IFIED GONFIDENTIAL X SECRET
SENDER WILL CHECK CLASS TION TOP AND BOTTOM
UNCLASSIFIED FIDENTIAL X SECRET
CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
I
ExDir
2
DDCI
s
DCI
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks
FOLD HERE TO RETURN TO SENDER
FRO
DATE
FORM N0. 7~7 Use previous ditions (40)
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MEMORANDUM FOR: Director of Central Intelligence
SUBJECT Reorganization of DDI
REFERENCE DDI Memo for DCI, 8 September 1965, Same
subject
1. This memorandum contains a recommendation in
paragraph 20 for your approval.
2. In referenced memorandum, I reported to you on our
studies of the DDI organization, and made a recommendation
for implementing the first of my two main conclusions. That
memorandum had to do with reconsolidating non-operational
intelligence research and analysis activity under the DDI.
3. This memorandum deals with the second conclusion,
that finished intelligence production components of the DDI,
insofar as functional specialties allow, be placed under
unified direction and organized geographically--with these
area-oriented components closely linked by exchange of staff
with the Area Divisions of DDP.
4. In its earlier days, intelligence production activities
were wholly unified under one direction--an Office of Research
and Evaluation. The main components of that office were the
regional divisions (WE, EE, NEA, FE, LA, and Northern). The
output of these divisions was supervised and coordinated by
three staff components responsible for basic, current, and
estimative intelligence.
5. It soon became apparent that the demands of the
times required a distinct grouping of specialists, first of
economists and soon thereafter of scientists. As these
specialists developed capabilities and were increasingly
called upon to meet the demands upon the Agency for economic
and scientific analyses, they grew in numbers requiring their
organization into separate offices. Regional coverage of both
of these groups was heavily on the Sino-Soviet Bloc.
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6. The organization of an Office of National Estimates
came with the advent of the Korean war and of General Smith
as DCI. As first conceived and operated, ONE had the dual
mission of producing NIEs and Current Intelligence, drawing
upon a common staff (loosely compartmented into a general,
specialists, and support groups) to accomplish its mission.
The General Group was the immediate support element of the
Board of National Estimates.
7. Early in his administration as Chairman of the Board
of National Estimates, Dr. William Langer made clear to the
DCI that he had taken the job with the understanding that he
would concentrate on national estimates and would not be
distracted from that assignment by reason of having also to
supervise current intelligence production and to administer
any staff beyond that needed to produce NIEs. Hence, the
separation of current reporting from ONE in 1951, and the
basis for the development of OCI as we know it today.
8. While the separation of ONE and OCI was made on
rather adventitious grounds, it was supportable on more valid
grounds in view of the actual production of these offices.
OCI production scrupulously avoided estimative language,
limiting itself to comments which served to help the reader
place the reported item in perspective. ONE largely limited
its production to inter-agency (USIB) papers, NIEs. At first
there were no ONE staff memoranda, and for a long time they
were neither as numerous nor as widely circulated as they now
are. Little coordination between ONE and OCI was necessary,
and necessary coordination was easily accomplished under the
aegis of the DDI.
9. In the years since the separation there have been a
number of studies examining the pros and cons of the
reunification of ONE and OCI. Some aimed strictly at achieving
economies or administrative efficiency; others aimed at
producing better intelligence. None conclusively reflected
unanimous views. And since the burden of proof never shifted
from those who wanted unification to those who held for the
status quo, and because the DDI budget never was reduced to
the point making unification mandatory, it did not occur.
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10. Four factors of significance lead me to conclude that
it is now timely to reopen this question: the changed
character of consumer demand; the expanded scope and nature
of our analytical effort; the need for resilience and reserve
in our production; and, the desirability of regionalization
of Agency organization. As is evident, cause and effect are
merged in these points. This makes them no less compelling.
11. Changed character of consumer demand. With the Kennedy
Administration, and Cuba, came a marked shift in consumer demand
for our intelligence production. International developments
and the Johnson Administration have confirmed and extended
this trend. The demand for defense policy support is reflected
in our expansion of the Military Research Area of ORR, the
Military Division of OCI, and the ONE Military Staff. The
more general change in demand now requires us to produce spot
evaluations over a wide range of subjects. This calls for
expertise over the entire world area as well as competence in
international politics, economics, science, and military
affairs. US operational information is now considered a
normal ingredient of many of our products, since only by its
inclusion is the consumer provided needed perspective. Often
our spot evaluations, oral or written, are the most important
Agency input to the Government's policy making process.
Indeed, because of the limitations and special purpose of the
NIE, the spot evaluation may be the Agency's only input.
12. Expanded scope of analytical effort. The collapse
of time avai ab a for production has been accompanied by an
expansion of its scope. People want to know more things about
more countries. A demand which was once satisfied by
generalizations has now been replaced by one requiring detail
and interrelationship. This has led to the creation of new
components--a natural byproduct of specialization--and to a
creeping expansion of coverage by each component--a natural
response to a felt need to satisfy demand. Thus scope, content,
reliability, and urgency of intelligence need, whether in the
form of estimates, current items, or even research reports,
tend to compel a component, which formerly took pride in the
uniqueness that justified its birth as a separate entity, to
have its own comprehensive coverage. The advent of photography
as a major data source affecting the work of every component
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has accelerated this trend. In this situation, the requirement
of management for coordination in order to produce an
authoritative pronouncement means that the intelligence product
of today bears increasingly the "chop" of all parties having
either responsibility for its creation or competence to
influence its substantive message.
13. Need for conservation of resources. The manpower and
time requirements of mu tip a han ing of the two- to threefold
increase of incoming information over the past ten years, and
of producing and coordinating the intelligence based upon that
information, have reduced our resilience to meet changing
situations and our reserve to meet added loads below what it
might be if we were operating under new organizational forms.
If many shops handle the same information in order, as the
saying goes, "to look at it from a different point of view and
for a different purpose," we are bound to pay a high price in
manpower. Some of this is unavoidable under any circumstance,
and some desirable even if it could be avoided. But it is
unlikely that the duplicate handling that can and should be
avoided can in fact be eliminated without new tries at
organizational forms designed to do just that.
14. Other management considerations are significant also.
Consider, for example, the impact of consolidation upon
flexibility in managing careers and in providing career
opportunities. Now ONE, OCI, OBI, and OCR largely decide
independently if and when to advance one of their analysts
within available headroom. An officer working his way well
up in one office without having had experience in another
finds it very difficult to "lateral over" into a vacant
position under the control of a career service not his own.
Yet it is not uncommon for the DDI to be approached either,
by such a.n officer or his office head with a request that
suitable alternative employment be found for a man still in
mid-career though he may have attained senior grade.
15. Desirability of regionalization of Agency organization.
Finally, the steps contemp ate in the merger of the an
OCI staffs would, when finally carried to their ultimate goal,
provide a largely regional or area-oriented structure which
would facilitate close coordination with the Area Divisions
of DDP and with the key operating components of the Department
of State, which are mainly regional.
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16. While I am thus persuaded that our aim should be the
consolidation of regionally oriented staffs, I am mindful that
we should minimize the disruptive affects on personnel and
operations which often attend organizational changes. Hence,
having decided our course, we should evolve toward the goal
and not seek its attainment by revolutionary change. Too much
is good about our present organization to risk its impairment.
In other words, the advantages of change must not be eroded
by the cost of bringing change about.
17. First phase. Our first step, therefore, should be
to place the 0 E a -a staffs and OCI under single management.
This will affect ~ people now located organizationally as
follows:
Activity
Direction
Administrative
Production Control
NIC
Subtotal
Soviet & Eastern Europe
Chinese & Far East
South Asia & Near East
Western Europe & Africa
Latin America
Subtotal
* Not included are the Board of National Estimates and the
CIA Operations Center. Adjustment has been made for recent
transfer of OCI Graphics Division to OBI for merger with
OBI Cartographic Division.
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18. Second phase. Our second step would involve the
development of new machinery for relating meaningfully the
work of area analysts wherever located in DDI (see TAB G:
Comparative Spectra of Geographical Organization). This would
be an extension of what we have begun doing for China: the
organization of a China Intelligence Group, and the selection
of China as the CHIVE test area for OCR. This phase would
also recognize the interdependence of DDP and DDI by exchanging
representatives between the DDI area divisions and the proposed
DDI area affairs divisions. (Closer organizational ties, such
as a merger of DDP and DDI, seem to me inadvisable, at least
for a long time. The sheer size of any combined group would
make for especially difficult management problems. The validity
of the time-honored separation of the "ops" function from the
evaluations function has in no way been diminished by our
experience in recent years. But closer ties than exist today
are desirable and should work to provide DCI with an improved
performance on the part of both DDP and DDI.)
19. Third phase. This step would involve a review of the
implications of moves taken and a modification of our future
course to the extent deemed advisable. If further consolidation
on an area basis was indicated, individual analysts and some
components would be moved from the functionally organized units
of the DDI.
20. In view of the above considerations, I recommend:
. That you approve the timely merger of the ONE
Estimates Staff with the Area Staffs of OCI,
leaving the Board of National Estimates intact
but thereafter drawing its staff support from
the combined staff. I see no reason in this
proposal for any change in the position of the
Board in the Agency organization. It could
report to the DCI directly and exclusively,
report exclusively through the DDI, or it could
have a "dotted line" of direct communication to
the DCI as at present.
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That further action required to reorganize DDI
with a greater regional orientation be endorsed
in principle but that specific steps in this
direction be deferred pending an evaluation of
the effects of the ONE - OCI merger.
STAT
Deputy Directo for Intelligence
Recommendation in para.. 20 APPROVED:
Director of Central Intelligence
Attachments
O/DDI:PABorel:nl:7 October 1965
Distribution:
Orig. - DDI
1 - ER
1 - O/DDI Chrono
1 - PAB Chrono
1 - 0/DDI Organization File
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TAB A: Proposed Grouping of Offices under DDI Direction
TAB B: Present Organization of ONE
TAB C: Present Organization of OCI
TAB D: Present Organization of OBI
TAB E: Present Organization of OCR/BR
TAB F: Proposed National Intelligence Evaluations and
Estimates Group
TAB G: Comparative Spectra of Geographical Organization
SECRET
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SECRET
Proposed Grouping of Offices Under DDI Direction
SECRET
National Intel I i Bence
Evaluations
and Estimates
Group
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^ ? ? 1
SE~R~r
QfFICE OF NAtiONAL ESTIMATES
Director of
National Estimates
Panel of
CONSULTANTS
Chairman
Board of
National Estimates
Board
of National Estimates
.Deputy Director of
National Estimates
Soviet Unio
East Europe
May 1965
5I618 6-65.
Military/
Technical
W e:fern
Europe
SUPPORT STAFF
Publications
Section
Information
Control
Reading Room
folio
America
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OFFICE OF CURRENT INTELLIGENCE
DIRECTOR
OF
CURRENT INTELLIGENCE
NATIONAL
.INDICATIONS
CENTER
PRESENTATION
STAFF
SINO-SOVIET
BLOC AREA
EASTERN
EUROPEAN
SATELLITES
DIVISION
SOVIET
DIVISION
MILITARY
DIVISION
INTELLIGENCE
INFORMATION
STAFF
CHIN!{/ASIAN
SATELLITES
DIVISION
WESTERN
EUROPE
DIVISION
WESTERN
AREA
SECRET
CIA
OPERATIONS
CENTER
ADMINISTRATIVE
STAFF
LATIN
AMERICA
DIVISION
FAR EAST
DIVISION
ASIA-AFRICA
AREA
AFRICA
DIVISION
NEAR EAST
DIVISION
GROUPf
Excluded from
ausomatic downgrading
and decldssificasion
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OFFICE OF BASIC INTELLIGENCE
USSR-Europe
Far East
Near East-Africa
Western Hemisphere
Technical Support
All-Source
Chapter I (General Survey
Geographic
Transportation
Political and Sociological
Economic
Military
Regional
~- Western Hemisphere Procurement
Special Research Reference
USSR Processing
Europe
Far East-Pacific
Near East-Africa
Publication
Division
Publication Prochactia~
Publication Re
Graphics Suppor
GR'~?
C^~rr:,,rzLia~ aa~
dc:lassi':is:~;i~
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SECRET
Schematic of National Intelligenee Evaluations & Estimates Group
of the directorate of Intelligence
?irector
IV?tional Evalu?tions
& Estimates
~r
C~~~r?S Coordi~?ti?~,
~~etio
Soviet Chinese youth Asi? dVestern Europe L?ti
stern Europe F?r East Ne?r E?st ~ Afric? Aaneroc~
Aff?irs Aff?irs Aff?irs Aff?irs Affairs
Each regional component to initially include staffs {or the production of estimates, current
intelligence and basic intelligence, and exchange staff representation with DDP area divisions
In later phases elements of biographic intelligence, and regional research, and additional basic
components to be integrated also.
iv T
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COMPARATIVE SPECTRA OF PRESENT GEOGRAPHICAL ORGANIZATION
PROPOSED tNTELLtGENCE STUDY GROUPS
USSR CHINA FE NE AFRICA WE LA
DDI COMPONENTS
OCI SOY EE jSAT. CH1NAlA51dN SAT.
ONE/STAFF SOV /EE FE
ORR/DI ASIA NE
ORR/DA
ORR/MRA
OCR/CHIVE
OBi/GD
FBIS
DCS
DDP
USSR
USSR
USSR/EE
DDP SR
NOTE: Size of block bears no relation to number of onalysts
49214
fE NE AFRICA WE LA
NE AFRICA WE LA
AFRICA
EE
USSR and CHINA
SECRET
CHINA
WE
NEA
LA
FE
EUR. WH
ME/AF/WE/LA
AFRICA
wE wH
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