MEMORANDUM FOR: THE HONORABLE ROBERT CUTLER FROM ALLEN W. DULLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R000900090008-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: June 27, 2012
• Sequence Number: 8
• Publication Date: October 12, 1953
• Content Type: MF

Declassified in Part -Sanitized Copy Approved for Release 2012/06/27 :CIA-RDP80R017318000900090008-0
?~ ~c~~; ~~ xQns~rahle .ktc~bert ~.~t~?~~~'
siat Assiatar~C to tie P ~eideat
1. ~e s~ate~-+~~'~ c~srtc~x'x~.in~, the prre~sosed traasr~++r.n rab4.e
t~, transaaitted ~y yauz ~att~r i~f 1~ >~ept~:~bes I~S~,
es.re~iy studied. 'I'he Ce~ttr~-! Intelligen?~~: ~erscy Teas s
xzd zx~aj~-r ~,m#e~rest i~ the ae+c~x.rity and c~eFen~atb~3.fty c?~
sus, pa~ticzslarly transr~eeatx~ic co~~+i:eak~:iceos.
y, axzy f'orei,~n c~~vn~srsh~tp or ct>ntr~l r~ corn~u~-.catic~s
e v~hieh are v#tal to the t#nited `-tattes ~~rese~ts a ~hreaYt t=~ the
cog and depeociz~bility of those facilities amid, ccase~,uentiy tca the
nsti~ ~~~ ~x~ani~arly, amy increase ix3 cs~atr~l car inter~st by
fflrsf~a hnsi~ees or fina~cia~ circles in an. Axx~crican s~x~,aa~.~atien can-
t;rlixt~ each CC9~ixeliG9i~iQies creates a. i~ttential ?r slc. '~s a~ exa~e,
a-xe e~lc ~~ y faced with. a busiaaess I~~cy ciocl~ion ~eta-eex~
taro t?~p~ra + f3litfes required to meet corn~a~titiar. might b~ `~#~r:xted
b1r #,he ves~a,~t that a certain. ccaur$e v~c~uld ~rt-rrn~te the ~sai~nal
w+~~sld praba~ily be ixtadvfble tci live :~xach xnfur~rnati4re
c+~s~raia~ ~e ~tioxsal i~a#e~rest if forei.~xt e1.eents ,ac~c~fri be is ~. ~c~si.-
t~ lteteet~t thereh~. 'rJarip~e.s Covezar~eat s~encias with acz ixiterest
cQaz~,unicatons d~ irk oa a4 ~;~assi?ied ~a.ss trig.
Asa~eesrfc~, ce~xx~pa-.ni.es, and an. interat3esli~i~ ref forei ixxterES~:s with
each c,e-ax~ies sniff cox9dprs~rnise the secnritg infcarxnatio~x~. involved.
3. Accardi3y, ws b,e~ieve it is .it33p~rt~e~t that the seyrity
insplicatti,flx of a xxeerger be catrefuily studied is detait by the izzter-
rs~r#.ed a~eacies prior tce reconunendfag at+~tictixe'~~- the GcPernxAent ire
ceetticm ;ere~-fth.
AD/C:HMMcC/KM
OGC:LRH:jeb
R ew~itten by A~D:meo (12 Oct. ' 53}
cc: DCI (2}
AD/C w/basic
OG C
Admin Files
STAT
Declassified in Part -Sanitized Copy Approved for Release 2012/06/27 :CIA-RDP80R017318000900090008-0
 Declassified in Part -Sanitized Copy Approved for Release 2012/06/27 :CIA-RDP80R017318000900090008-0
~:~ -~MORANDUM FOR: ~ nl~,,,~o~ -
Attached is a redraft of the letter to
dir. Cutler, couched in more general terms. I
'believe, however, it raises the issue as
clearly as general McClelland.'s draft. He,
incidentally, also agreed t4 any such changes.
LACE R. SOIISTf)l~
general Counsel
tr 1
~c~ ~e e.~
7 October 1
(DATE
Declassified in Part -Sanitized Copy Approved for Release 2012/06/27 :CIA-RDP80R017318000900090008-0
 e
Declassified in Part -Sanitized Copy Approved for Releas'~eg 2012/06/27 :CIA-RDP80R017318000900090008-0 `
Security [nformatfon
CENTRAL INTELLIGENCE AGENCY
WASHINGTON 2S, D. C.
MIIed0>3,AND~IM F'QR: The $onorable Robert Cutler
Special Assistant -to the President
1. The memorandums concerning the proposed transocean cable
and radio merger, transmitted by your letter of l~ September 1953,
has been carefully studied. The Central Intelligence Agency has a
direct and mayor interest in the security and dependability of
communications, particularly transoceanic communications.
2. ~ rally, any foreign ownership or control of communications
facilities presents a threat to the security and dependability of
those facilities and consequently to the national defense,
ear. Similarly, any increase in control or interest by
foreign 'business or financial circles in an American organization "r?~`
creates a potential risk. As an e~?aacple, an American con~par~y faced ~+?"'
with a business policy decision between two types of facilities
required to meet competition might be informed by the E~overnment
that a certain course would promote the national interest. It
would probably be inadvisable to give such information concernin
g
the national interest if foreign elements would be in a position to ~ '"'`'
Various government agencies. with an interest ~"'~
in the field of communications do w~-rk on a classified basis with
American companies, and an intermeshing of foreign interests with
such companies might compromise
th
security information involved.
~
t~
3?
believe it is e~~~.'yr important that the ?a~?s~~.; implications
of a merger be studied in detail by the crested agenciQS prior to
any.-.,gp~' ~~' the~erffar = , --= _, --? - in connection
~`' therewith. ' f~''
SECRET
security Information ~ ~; ~~~,
`...-
Declassified in Part -Sanitized Copy Approved for Release 2012/06/27 :CIA-RDP80R017318000900090008-0
 Declassified in Part -Sanitized Copy Approved for Release 2012/06/27 :CIA-RDP80R017318000900090008-0
~~~~I~~TIAL'~.
Security In~ormatiori
~~~ ~5 1953
MEMQRANIDUM FQR: Deputy Director of Central Intelligence
SUBJECT: Proposed Transocean Cable and Radio Merger
1. By Routing Slip dated 18 5eptemt~er 1953, you requested me to prepare
comments for the DCI on an enclosure, subject as above, to a letter from the
White House. My comments are contained herein and I attach a draft of a sug-
gested reply to the letter from the White House for such use as you may care
to make of it.
a. The general subject of merger of communications companies is
extrexriely complicated and one of the most controversial Congress has
had to deal with. It has been given consideration in one form or another
many times in the last twenty-five years and there are many, many,
thousands of pages of testimony given before Co gressional committees.
Congress has yet to act on the question of n-verger of companies handling
transocean communications by radio and cable.
b. I have read through as much material as the brief time available
has permitted. I note from your remark on the Routing Slip that the letter
from the White House asked if GIA has an interest in the proposed merger
of RCA and I. T. & T. Therefore, I recommend that the DCI avoid mention-
ing all of the many controversial matters except those directly affecting CIA.
These are discussed below.
is ~~ ~If~~~g ~
Security incrrnation ,
.~
Declassified in Part -Sanitized Copy Approved for Release 2012/06/27 :CIA-RDP80R017318000900090008-0
 Declassified in Part -Sanitized Copy Approved for Release 2012/06/27 :CIA-RDP80R017318000900090008-0
Q
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