LETTER TO DR. JOHN N. ELLISON FROM SAMUEL V. WILSON

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01133A001200040014-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 16
• Document Creation Date: December 15, 2016
• Document Release Date: August 21, 2004
• Sequence Number: 14
• Publication Date: March 15, 1975
• Content Type: LETTER

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DCI/IC 75-025
,r'R !QI5
Dr. John N. Ellison
Professor of Economics
Industrial College of the Armed Forces
Washington, D. C. 20319
I am pleased to learn about your efforts at the Industrial
College of the Armed Forces in providing a program of instruction
that enables your students to focus on the managerial challenges
encountered within the intelligence community.
To assist your students in undorstanding the role that the
Intelligence Community Staff plays in supporting the Director of
Central Intelligence as the leader of the United States foreign
intelligence effort, you will find attached an unclassified statement
regarding the Staff. There are sufficient copies of this background
paper for each of your students.
My staff and I welcome the opportunity to participate in a
panel discussion with your study group on its visit to the Central
Intelligence Agency on 21 April 1975.
Sincerely,
Samuel V. Wilson
Lieutenant General, USA
Deputy to the DCI for the
Intelligence Community
Attachments
As stated
Distribution:
Original - addressee
1 - D/DCI/IC chrono
l - Jr. Rpaisf-ru
STAT 1 - 115Apr75
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DEPARTMENT OF DEFENSE
INDUSTRIAL COLLEGE OF THE ARMED FORCES
WASHINGTON. D.C. 20319
Mr. Alfonso Rodriguez
Director of Training
Central Intelligence Agency
Washington, D.C. 20505
Dear Mr. Rodriguez:
OvfL l~eyi
~,14~7R 107c
For the last few years, the curriculum of the Resident Course of
the Industrial College of the Armed Forces has included a Group Study
Project (GSP) which explores various aspects of the "Intelligence
Community." The GSP program is designed to provide the students a
better understanding of the unique managerial challenges encountered
within various intelligence activities. This academic year, the study
project will be focused primarily on problems associated with the
management of intelligence resources. A plan for the study program
including a s~~-.ement of the research questiun (copy aLtached) has been
developed as a point of departure to facilitate student study and
analysis of the intelligence community.
This year 18 students, under the direction of Dr. John N. Ellison,
Professor of Economics and Colonel Harry George, USAF will participate
in the GSP program. The method of instruction will include attendance
at seminar sessions with expert panelists from the intelligence community
and visits, where possible, to intelligence activities in the area.
Last year, students participating in a similiar course of study
visited the Central Intelligence Agency for briefings which covered
many facets of the Agency's management function." This was an extremely
valuable contribution to the students' understanding and appreciation
of the Agency's operating policies and of the interrelationships that
exist with other members of the intelligence community. Therefore, we
would like to request your assistance in providing a similar opportunity
for this year's study group to visit the Agency on 21 April 1975.
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NSMS
Mr. Alfonso Rodriguez
This visit is scheduled as one of the final sessions of the study project.
It is intended, as in prior years, to focus on the Agency's management
techniques, operational and resource allocation problems as well as the
specific management role of the DCI.
Informal discussions have been initiated with Mr. Bengt C. Herder
of your staff. If our request to visit the Agency is favorably viewed,
final arrangements would be consummated with Mr. Herder.
Thank you for your consideration of this matter and for your
continuing interest in this unique aspect of our academic program.
Sincerely,
EDWARD A. McGOUGH, III
Major General, USAF
Deputy Commandant
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CROUP STUDY PROGRAM (CSI')
Group Study
Project lIE Management of. Intelligence Resources
Faculty Director: Dr. John N. Ellison
Asst. Director: Colonel Harry E. George, USAF
Chairmen: Mr. William D. Morgan
Mr. John H. Tennant
DOD Consulting, Vice Admiral Earl F. Rectauus, USN
Authority: Deputy Assistant Secretary of Defense (Resources and
Management)
Objectives - Understand the nature of the intelligence and the means by
which it is developed, exploited, and managed within the
U.S. National Security Structure.
Become familiar with the orI?enizations constituting the
national intelligence con-runity 'and with the executive role
of the Director of Central intelligence in policy formulation
and execution.
- Become aware "f recent organizational changes designed to
enhance the quality, scope, and timeliness of intcll.i%ence
information for decision-making.
Gain familiarity with the recurrent managerial problems
encountered in the allocation of the intelligence re:.curces
for priority National Security Purposes.
Background
.The'quality of national security policy and decisions ultimately depends
in large measure upon the soundness of the knowledge on which they are base(i.
A significant portion of this knowledge is derived from "intelligence sources,"
that is, information about foreign nations or areas that have passed through
processes of collection, evaiuaticn, analysis, integration and i:iterpretation.
Intelligence, to be useful must' be adequate, t. r.aly, and reasonably. acciirat:e.
.It must be well.-coordi.i'ated, quickly and properly disseminated, and considered
by dacisionmakers within a carefully constr.tlnt:ad context of values and n'.:) j-c Lives.
It neither pre.deceriines nor impler"ents policy. But there is always the darer
that It may in effect do both, by virtue of its central importance as a basis
of rationale for policy foriiulat1_ou and action.
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Traditionally Americans, as a rule, have held ambivalent attitudes
,oward intelligence processes and products. While admitting the necessity
of learning as much as possible about hostile *or unfriendly nations, they have
also viewed espionage as somehow "dirty" or unfair, especially in peacetime.
As a result, there have been periodic cycles in the degree of public support
for intelligence activities which have reflected dynamic changes in the public
viewpoint with resriect to the National Security Position of the United States.
And despite the va:,cly increased need for early warning of foreign activities
inimical to our interests, there are some who suggest that a huge intelligence
system in an otherwise open society may be more of a threat than a shield
to democracy and individual liberty. Still others, less feartul of the
intellige.ncc process, nevertheless, criticize its product as incomplete or
inadequate, and warn of a dangerous "intelligence gap." In addition, sympathetic
observerb point to managerial problems inherent in coordination and rational
allocation of intelligence resources among'competitive elements of the intelli-
gence community and among diverse sets of priorities imposed by the users of
intelligence. It is in this context of competition for claims on available
intelligence resources that the major managerial challenges are centered.
The unique functions of intelligence organizations, together with the clog:-:d
nature of their institutional structures, combine to diminish the effectiveness
of traditional means of management control. 'Thus, unique administrative and
managerial approaches must be devised andipractited in order to insure the
effective utilization of intelligence resources toward the production or
information essential to vital national decision-making prccesses.
Awareness of these -conceptual and managerial ambiguiLi_es itas uy LtO tC-e,!A5
removed them. Rat`zr, it hac-focused attention on the adi,antages, problems,
and dangers of intelligence - and on the massive growth of the American
intelligence community since World ;gar Il. As a result, certain principles
have evolved for the conduct of American intelligence activities. A statement
of the principles, as listed in 1961 by the Senate Subcommittee on National
Policy Machinery, included the following:
1. The free world needs intelligence activities to assure its
survival. Intelligence is as important as armed strength. In this age of
pushbutton weapons, intelligence is more than ever our first line of defense.
2. Intelligence operations are instruments of national policy. They
must be subject to effective and continuing higher, review and coordination.
This includes a weighing of gains against risks.
3. The collection and evaluation of intelligence is a job for pro-
fessionals. Intelligence organizations should be tight, centralized,
responsive, and to the greatest possible extent anonymous.
4. Officials who depend upon intelligence must be professional in
handling the problems which it raises.
2
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The conduct of diplomacy must be insulated from sensitive intelli-
, operations. Intelligence is a source of information for diplomacy -
a part of it.
6. Public revelation of sensitive intelligence is never a harmless act.
It both jeopardizes the normal conduct of foreign relations and compromises
the sources of vital intelligence. If public statements have to-be made at
all, they m>>st be made only in response to overriding national interest
and on the responsibility and under the control at the outset of one high
authority.
.7. The golden word of intelligence is silence. More can be lost by
saying too much, too soon, than by saying too little, too slowly.
Simple adherence to these principles does not, in itself, guarantee either
excellence in intelligence or its proper utilization. They represent only
part of a structure whose soundness depends no less on organizational effective-
ness and human behavior. For the United States, an elaborate intelligence
organization and a corps of professional intelligence experts are relatively
recent institutional developments. Perhaps this is why there is so much
uneasiness about the American intelligence community and why so many fears
that it may escape its proper legal bounds.as t1te servant of national. policy.
Thus, much contemporary criticism emanates from the lack of concensus as to
the formal as well as the precedent determining limits of "legitimate"
intelligence functions. In addition, viws with respect to interpreting
these bases are subiect to the influence of NrtuValliltb Views of the status
of U.S. strategic position in the world and r cnl.g_..ng political^and ideological
ori_enta_ion_s .
In the period since it was established at the end of World tsar II, the
national intelligence community has undergone a number of major organizational
and procedural shifts and reforms. The most recent of these was President
Nixon's November 1971 reorganization' of the intelligence community. This
effort to improve the effectiveness and efficiency of the national intelligence
effort was based on an exhaustive analysis conducted by the staffs of the
National Security Council, Office of Management and Budget, and other
executive branch agencies including elements of the intelligence community.
Its effect is still not entirely clear, although the changes implemented would
at the very-least seem to make the community more responsive to the unique needs
of the new Chief Executive. In addition, the expansion of the role of the
.Nation Intelligence Community Staff is evident and has had some impact on
coordination within the intelligence structure.
One uncertainty in the present scene, however, is the possible influence
of the Executive Branch and Congressional Branch inquiries into domestic and
international intelligence organizations, on the traditional structures,
functions and resources availabilities. While some consideration will be
given to these developments, the major concentration will be devoted to more
fundamental aspects of intelligence resources allocation.
In this group study project, "The Management of Intelligence Resources,"
thus will attercpt to analyze fundru:rental orh.cnizaLloual. and functional
developments in the community and to uctermilne how they may have affected
the quality and eftcctivenetis of national intelli;',:tcce. Concomitant with
this consi&i @I'l~~l F2+li~e c R~Q4/~4~/ 4b E1tR411'$4 c1ti AEAQ1~'tQ~O~?@1Ayc7ing:
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Research Question
"What policies should DOD initiate and pursue to assure the maximum
effectiveness in the allocation of resources in order to avoid-operational
overlap and unproductive resource competition with other bureaucratic
elements of the U.S. intelligence community?"
Conduct of the Course of Study
A total of nine periods, plus a portion of the Unit IV orientation
period, will be devoted to this Group Study Project. After the GSP
orientation on the first day of Unit V, the nine periods will be devoted
to panel sessions and seminars (including one local area visit). Luncheons
with panelists will be arranged for all periods conducted at ICAF. In
addition, a special period will be conducted by the student chairman, devoted
to the analysis and written repo--t preparation (28 April).
i ?
The written report will represent a comprehensive analysis of the
research question, including alternatives and limited to no more than 20
double spaced typewritten pages. Details concerning the format, content,
on d d.i str_ ti cn of the CS P f1 1 t'ritt:_n report wi 1.1 be nrnca t ed diiri.no
the Unit V orientation period, 21 March.
Neither typing assistance nor support from Visual Aids will be available
for student reports. However, Visual Aids will instruct anyone interested in
the use of ne:?' equipment designed to facilitate student preparation of
vu-graphs. Mr. Owen, of Visual Aids, is available to meet with interested
.students in Room 122, to explain and demonstrate this new equipment.
Essential Reading
The basic text for the course is Intelli^ence and National. Security:
Chaffing A ne cts of the Poli Flaking Process in the Nixon Adniinistrat' cn,
a volume prepared for the Defense Intelligence Scit?iol by Captain James
Lucas, USAF. Sufficient copies of this study for most students in this
GSI' have been reserved at the charge-out desk of the ICAF library. .Each
student should dram an individual. (.;:p,, and return it to the library at the
conclusion of the course. Students .c-hoold read the entire book during the
period of the GSP. It should prove especially useful. in preparing material
for the written report. Attention is directed to the bibliography as an
important source for further research.
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A second important source of material. is a collection of classified
documents, assembled specifically for this GSP, in the ICAF Classified library.
These can be obtained from the librarian there simply by asking for the materials
collected for CSP E;'?tanagement of Intelligence Resources," (Dr. Ellison).
All students should examine these materials and familiarize themselves with-
them.
An annotated bibliography of readings is attached to this memorandum.
The books listed therein are available in the ICAF library or via inter-
library loan. The more important references, including those containing
assigned readings, will be placed on the reserve shelf in the library
reading room on the second floor.
For further reference, a copy of DOD Directive 5115.1, "Assistant
Secretary of Defense (Intelligence)," 18 January 1972, and a list of
"National Intelligence Community Abbreviations" together with additional
supporting materials is attached. .11
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ILLEGIB
ILLEGIB
Program for
Industrial College of the Armed Forces
Study Group
0845
0900
- 0910
.0910
- 1000
.1000
- 1020
1020
- 1120
1120
- 1200
1200
- 1300
Approved F}
Friday, 19 April 1974
IC Staff Conference Room 6E-0703
Visitors Arrive
at Main Entrance
Welcome and
Introduction
"The Resource
Management Role
of the Director
of Central
Intelligence"
Coffee Break
Panel Discussion
Final Remarks and
Discussion
Dutch Treat Luncheon
in Rendezvous Room
Mr. Alfonso Rodriguez
Director of Training
Intelligence Community
Staff Director
LEGIB
ILLEGIB
ST
Director, Collection and
Processing Assessment
Group, IC Staff
ST
ST
Director, Product Review
Group, IC Staff
1ST
Director, Management,
Planning and Resource
Group, IC Staff
Mr. William E. Colby
Director of Central
Intelligence
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10 April 1975
THE INTELLIGENCE COMMUNITY STAFF
The Intelligence Community Staff (ICS) was established to
support the Director of Central Intelligence in his role as the senior
US intelligence officer--the man personally designated by the President
to provide leadership and to coordinate the foreign intelligence activities
of the national intelligence community.
The present IC Staff had its beginning in a small National
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Intelligence Programs Evaluation or NIPE Staff which was established
in 1963 to look at Community problems. This nucleus was expanded
in early 1972 into the Intelligence Community Staff with a far broader
mission. However, in spite of its name, it, like its predecessor, NIPE,
was still for the most part, manned by CIA officers. WheniDr. Schlesinger
became DCI in early 1973, he reorganized the Staff to make it representative
of the entire Community.
The present IC Staff is a blend of CIA professional personnel,
active duty intelligence officers from the military services, civilian
representatives from NSA, DIA, and the State Department, ;plus a few
individuals drawn from private industry. Although housed in the CIA
Headquarters Building, the IC Staff support to the DCI is clgarly in a
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community sense, and it deals with all agencies and departments on an
equal basis, the Central Intelligence Agency being one among several.
The purpose of the Intelligence Community Staff is to provide
continuing support to the Director of Central Intelligence in the discharge
of his responsibilities for planning, reviewing, evaluating, and improving
all US foreign intelligence activities and for submitting recommendations
to the President concerning the allocation of all intelligence resources
as assigned to him in National Security Council Intelligence Directives.
The functions of the IC Staff include:
a. Establishing and maintaining procedures for the systematic
evaluation and improvement of Intelligence Community efforts in
analysis and production, in collection and processing, and in
developing recommendations for resource allocation.
b. Providing a focal point for the identification and resolution
of planning, management and procedural problems of importance
to more than one organization of the Intelligence Community.
c. Preparing annually the National Foreign Intelligence
Program Recommendations for submission to the President by the
Director of Central Intelligence concerning (a) the resources required
for execution of Community responsibilities for the provision of
t ~.1
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foreign intelligence, (b) the evaluation of Community performance,
(c) means of improving Director of Central Intelligence oversight of
the Community, and (d) issues meriting Presidential attention.
d. Conducting in-depth studies in important Community problem
areas and develop policy proposals and action recommendations as
appropriate.
e. Preparing for the Director of Central Intelligence periodic
statements of objectives, forecasts of the future intelligence
environment, and listings of foreign intelligence priorities, as
such may be required for Community guidance.
Establishing and participating in a Community-wide
resource review process including related program and performance
evaluations, research and analysis; developing methodologies to
support such evaluations.
Establishing a system for relating Community resource
expenditures with responses to key intelligence needs of national
level users in order to enhance both the responsiveness of the
products and the effectiveness and efficiency of resource application.
Fostering development of a coordinated Community effort
0 improve analytical techniques and methodolol
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i. Reviewing and assessing the performance of the Intelligence
Community in providing warning of and responding to crisis situations,
and recommend ways to improve the quality, scope and timeliness of
the intelligence products provided both to high-level and to operational
field consumers.
Working with Department of Defense agencies on behalf of the
Director of Central Intelligence to enhance mutual contributions
between national intelligence activities and the operational
intelligence activities which support the readiness of the military
forces.
k. On behalf of the DCI, maintain oversight of and evaluate
the performance of the committees of the United States Intelligence
Board.
1. Maintaining continuing liaison with the President's Foreign
Intelligence Advisory Board and supporting the DCI in his responses
to the Board.
m. Supporting the DCI in his participation in National
Security Council Intelligence Committee (NSCIC) activities and
providing the chairman of the NSCIC Working Group.
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n. Participating in, and providing secretarial support for
the Intelligence Resources Advisory Committee (IRAC).
o. Preparing presentations as appropriate for use by the
DCI in his Congressional appearances.
Monitoring Federal legislative actions which affect the
functioning and effectiveness of the Intelligence Community.
q. On behalf of the DCI, monitor inputs from intelligence
organizations requested by such special commissions, committees
and panels as may be appointed by the President and/or the Congress
to investigate programs or activities with which intelligence products
or intelligence organizations are involved.
The IC Staff is organized to support the DCI in the four primary
areas of his Community responsibility- -resources management, collection
and processing, production and analysis, and planning, reviewing and
evaluating.
The IC Staff is directed by the Deputy to the Director of Central
Intelligence for the Intelligence Community (D/DCI/IC), designated by
the Director of Central Intelligence. The Staff is operated as a separate
entity, not a part of the Central Intelligence Agency staff structure. The
D/DCI/IC reports directly to the Director of Central Intelligence.
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On April 21st a group of 18 officers from
the Industrial College of the Armed Forces will
be coming to the building for briefings. This is
a special study group concerned with resource.,
management of the intelligence community.
They are being briefed by various senior officers
in the Community including Danny
Graham, and Rectanus (for Hall).
has already briefed them on the Intelligence
Community.
STAT
of OTR is making the arrange-
They will meet in our tank for three
hours on the afternoon of Monday 21 April. He
would like the IC Staff to put on a 2-hour
presentation emphasizing resource management
(1:15 - 3:15). He has arranged for the DCI to
speak to them starting at 3:15.
Last year a similar group came and was
spoken to by Admiral Harvey for one hour with
a panel discussion during the second hour with
1They
TAT would like a similar arrangement this year.
Would either one of you be willing to kick off
this session? If so, I will ask Lucas to line up
the program.
Yes
No
See me
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