[SPEECH TO THE CHAIRMAN REGARDING NATIONAL SECURITY]

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R001400140002-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 16
• Document Creation Date: December 15, 2016
• Document Release Date: September 6, 2002
• Sequence Number: 2
• Publication Date: January 1, 1947
• Content Type: SPEECH

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DOSUMENT 1o, .._....___._~~_
140 CHANGE 111% CLASS. [}
1. 4-1
CLASS, `.'C i TS S
IJCXT REV! W' Li4V L
MR. CHA I RMAN, AUTIu fill jo
DATEI.~., p~~! R viEwEB~,~
X77
F 1 RST, 1 WANT TO EXPRESS MY SINCERE
APPRECIATION FOR THE SPECIAL CONSIDERATION
YOU ARE GIVING ME AND MY AGENCY.
BEFORE MAKING MY FORMAL PRESENTATION
i DESIRE TO AVAIL MYSELF OF THE PRIVILEGE
GRANTED AT MY LAST APPEARANCE BEFORE A
CONGRESSIONAL COMMITTEE; THAT IS TO TALK
W \
OFF THE RECORD:' IT 10 MY SINCERE DESIRE
TO SPEAK MOST FRANKLY TO YOU; BUT TO DO SO
MY REMARKS MUST BE "OFF THE RECORD %%.
AS THEY
DEAL WITH MATTERS OF VITAL INTEREST TO THE
NATIONAL SECURITY. I INTEND TO FOLLOW THIS
BROAD OUTLINE I N MY PRESENTATION) FIRST) A
SHORT REVIEW OF THE FOUNDATION OP THE
CENTRAL INTELLIGENCE GROUP AND ITS ASSIGNED
MISSION) SECOND A SRI CF DISCUSSION OF THE
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TOP SECRET
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 IUP [.,,
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ORGANIZATION PROVIDED TO CARRY OUT THESE
MISSIONS; THIRD f A BROAD STATEMENT OF OUR
BUDGETARY REQUIREMENTS; AND FOURTH, SOME
EXAMPLES OF'a THE EFFECTIVENESS OF THE
ORGANIZATION 1~ OR I N OTHER WORDS) CONCRETE
EVIDENCE OF THE VALUE THE G?QV.ERhl,*Ct4T HAS
RECEIVED FOR MONIES EXPENDED DURING THE
CURRENT FISCAL YEAR.
PRIOR TO WORLD WAR 11 THE tAR, NAVY AND
STATE DEPARTMENTS EACH HAD A L i MI TED NUMBER
OF PERSONNEL ENGAGED I N THE PRODUCTION OF
INTELLIGENCE. THERE WAS NO POSITIVE METHOD
BY WHICH THE PRODUCT OF THESE THREE DEPARTMENTS
COULD BE ASSEMBLED AND VIEWED AS A WHOLE.
EACH CASE THE I NFORMAT I ON FURNISHED WAS SLANTED
TOWARD THE NEEDS AND POL I D I ES OF THE PART 1 CU-
LAR DEPARTMENT. FEW EMPLOYEES WERE WILLING
,rf)P C1`f`,RFT
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QENCE CAREER. SPECIALIZATION I N THIS DIRECTION
USUALLY MEANT A Q&6Q-SUQ FOR THE I NO I V I DUAL.
THE DISASTER AT PEARL HANSOM AND THE INVESTI-
Q A T I O N S WHICH FOLLOWED PROVED CONCLUSIVELY
THAT THE INTELLIGENCE AVA I LASLE TO THE VARIOUS
AGENCIES OF GOVERNMENT MUST SE CENTRALIZED I F
NATIONAL INTELLIGENCE I S TO SE PRODUCED FOR
THE PRESIDENT AND THE POL i C Y-UAK I NQ MEMSERS
OF THE GOVERNMENT. IT FURTHER PROVED THAT
THE I NTELL I GENCE ACTIVITIES OF EACH DEPARTMENT
MUST SE CAREFULLY CONTROLLED AND THE RESULTS
OF THEIR ACTIVITIES CAREFULLY ANALYZED FROM
AN OVER ALL NATIONAL VIEW POINT ) RATHER THAN
THE SPECIALIZED NEEDS OF THE DEPARTMENT.
LACKING CONGRESSIONAL DIRECTIVE TO PROVIDE
THIS CENTRALIZATION, ON 22 JANUARY 1946 THE
PRESIDENT) DY DIRECTIVE TO THE SECRETARIES OF
1 up ! EC;i F-'"
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8 TATE~ M'Aft ~ AND NAVy.0 CREATED THE NATIONAL
I NTXL.L. 1 OENCE AUTHORITY TO CONSIST or THE
SECRETARIES Or STATE WAR
NAMj A PERSONAL
REPRESENTATI+vE OF THE PpVS1DENT 6" THIS CASE
ADMIRAL LEAHY> AND A D I RECTA
* ?F CENTRAL
~ NTiLL. 1'QEMCE TO S I T AS A Npty~v-OT 1 NQ 11~tEM?S~:-
Toils DIRECTIVE FURTHER PROVIDED A CENTRAL
INTELLIGENCE GROUP UNDER A DIRECTOR or CENTRAL
1 NTEL.L I QE M C E W H I C H WOULD I MP
LEIWISNT THE POLICIES
ESTA?
LISHE
-D ?Y THE NATIONAL INT
ELL / iiEI+dCE
AUTHORITY . THE
? AUTHC91~t TY WAS OI 1'IECTED TO PLA1~DEVELOP AND COORDINATE ALL FEDERAL.
FORE t Qlyi
INTELLIGENCE ACTIVITIES SO AS TO ASSUME THE
MOST EFFECTIVE ACCOMPLISH&4ENT or THE !l4TELL
QENCE MISS 1 +GN RELATED TO THE NATIONAL SEC UP 1 't'Y.
LIG
ADMIRAL SIDNEY V. BORERS
HEADED A 00CUO or
SELECTED PERSONNEL, DETAILED ?Y
THIS' TN~g
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WET-
HE FIRST DIRECTOR of CENTRAL INTEL
ENCE
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DEPARTMENTS TO STUDY THE PROBLEM POSED I N
CENTRALIZING THE I NTELL I GENCE Or THIS GOVERN-
MENT. FROM JANUARY U N T I L LATE JUNE 1946 T H I S
SMALL GROUP WAS ENGAGED IN PLANNING FOR THE
OPERATIONS TO BE UNDERTAKEN BY THE CENTRAL
1 NTELL 1 6MENCE GROUP. 1 WAS DETAILED ON 10 JUNE
1946 TO REPLACE ADMIRAL SOUERS BECAUSE OF
H I S RETURN TO C I V I L LIFE,
ON $ JULY 1946
THE NATIONAL INTELLIGENCE AUTHORITY BY WRITTEN
DIRECTIVE, GAVE ME THE FOLLOWING M155 i OHS 3
A. ACCOMPLISH THE CORRELATION AND
EVALUATION OF INTELLIGENCE RELATING TO
THE NATIONAL SECURITY AND THE APPROPRIATE
DISSEMINATION WITHIN THE GOVERNMENT OF
THE RESULTING STRATEGIC AND NATIONAL
POLICY INTELLIGENCE.
I.
PLAN FOR THE COORDINATION OF SUCH
OF THE ACTIVITIES OF THE INTELLIGENCE
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AGENCIES OF THE DEPARTMENTS OF STATE
l
WAR/ AND NAVY AS RELATE TO THE NATIONAL
SECURITY AND RECOMMEND TO THE NATIONAL
INTELLIGENCE AUTHORITY THE ESTABLISHMENT
OF SUCH OVERALL POLICIES AND OBJECTIVES
AS W $ LL INSURE THE MOST EFFECTIVE ACCOiw.P '
PL I SHMENT OF THE NATIONAL I NTELL 1 4MENCE
MI SS I ON.
2.
PERFORM FOR THE BENEFIT OF THE
DEPARTMENTS SUCH SERVICES OF COMMON
CONCERN AS CAN BE MORE EFFICIENTLY
ACCOMPLISHED CENTRALLY.
2.
CONDUCT ALL ORGANIZED FEDERAL
ESPIONAGE AND COUNTER-ESPIONAGE OPERATIONS
OUTSIDE THE UNITED STATES AND ITS POSSES-
SIONS
, FOR THE COLLECTION OF FOREIGN
INTELLIGENCE INFORMATION REQUIRED FOR
THE NATIONAL SECURITY,,
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I.
CONDUCT ALL FEDERAL MONITORING
OF PRESS AND PROPAGANDA SROADCASTS OF
FOREIGN POWERS REQUIRED FOR THE COLLECTION
OF INTELLIGENCE 1 NFORMAT 1 ON RELATING TO
THE NATIONAL SECURITY.
e. U.NDEpRTAKE SUCH RESEARCH AND ANALYSIS
AS MAY BE NECESSARY TO DETERMINE WHAT
FUNCTIONS 1 N THE FIELDS OF NATIONAL
SECURITY I NTELL I GENCE ARE NOT BEING
PRESENTLY PERFORMED1 AND TO FURTHER
CENTRALIZE SUCH RESEARCH AND ANALYSIS
ACTIVITIES AS MAY SE MORE EFFICIENTLY
00 EFFECTIVELY ACCOMPLISHED CENTRALLY.
THE OPERATING EXPERIENCES OF THE PERIOD
JANUARY TO JULY 1i 4 6 INDICATED THE IMPRACTI-
CABILITY OF DEPENDING UPON THE PERSONNEL AND
SERVICES FURNISHED OY THE VARIOUS DEPARTMENTS.
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THEREFORE, ON 30 JULY 19 4 6, THE THREE SECPtE-
TAR / ESI WITH THE CONSENT OF THE SECRETARY OF
THE TREASURY/ ESTAOLISHED A CENTRAL WORKING
FUND UNDER MY CONTROL TO BE UTILIZED IN THE
DIRECT HIRING OF PERSONNEL AND THE FURNISHING
OF S.ERY.!-. .1>E:S ..,tslECES:SyA-RY FOR THE EFF #+C-#aNT OPE#tA*!"::
T I ON Or TIWE GROUP. AS A RESULT OF THIS ACTION
E
FUNDS I N THE AMOUNT OF SIXTEEN MILLION DOLLARS
1bl 4!!30,'11 +Q/ WERE MADE AVAILABLE TO THE GROUP
FOR ITS OPERATION FOR THE MCOWAINDER OF THE
FISCAL YEAR 1147. THESE FUNDS WERE FURNISHED
AS FOLLOWS;
WAR $1s~ Boo coo
NAVY 250 000
*TATE 1, 0 0 0 0
T* ACCOMPLISH THE MISSION *SS ONED~ U
HAVE ORGANIZED & AY GROUP INTO FOUR MAJOR OFFICES
W`14 S;-+,6Ll
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THE OFFICE OF OPERATIONS AND THE OFFICE Or
SPECIAL OPERATIONS TO PROVIDE FOR THE COLLEC-
T I ON OF i NTELL I GENCE INFORMATION NOT FURNISHED
BY THE EXISTING DEPARTMENTS OF GOVERNMENT
THE OFF 1 CE Or REPORTS AND ESTIMATE* TO FULFILL
.MV . M:1 SS.1 ON. OF EVALUATION ANA CO$REi.AT4 ONS AND
THE OFFICE OF COLLECTION AND 01SSEMINATION TO
PROVIDE FOR THE COLLECTION OF INFORMATION FROM
THE OTHER DEPARTMENTS AND THE PROPER DISSEMINA-
T 1 ON OF THE INTELLIGENCE PRODUCED BY THE GROUP.
THESE OFFICES PROVIDE FOR EXPLOITING ALL
SOURCES OF INFORMATION - BE THEY OPEN THAT IS
AVAILABLE FROM OTHER INTELLIGENCE AGENCIES
BOOKS) RADIO BROADCASTS PUBLISHED DOCUMENTS,
NEWSPAPERS, AND PERIODICALS / OR BE I T i NFORMA"'
T 1 ON WHICH MUST SE OBTAINED BY CLANDESTINE MEAN!
THE LATTER GENTLEMEN FRANKLY PLACES THE
UNITED STATES FOR THE FIRST T I M E I N ITS HISTORY
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I N THE BUSINESS or SPYING.
IT IS RECOGNIZED THAT THE AVERAGE
AMERICAN DOES NOT ACCEPT CLANDESTINE OPERATIONS
AS BEING COMPATIBLE WITH THE AMERICAN STANDARDS
OF FAIR PLAY.
HOWEVER, 1 F YOU GENTLEMEN
THAT INDICATED A HONEY-COMB I NQ OF
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GOVERNMENT BY 25X1
AGENTS OF AN ALLEGED FRIENDLY POWER,$ I FEEL
SURE NO QUESTION WILL BE RAISED BY YOU AS TO
THE NECESSITY OF PROVIDING SECURITY FOR OUR
COUNTRY, WE MUST KNOW AS FAR IN ADVANCE AS
POSSIBLE WHAT THE PLANS OF OUR POTENTIAL
ENEMIES ARE WHAT THEIR ABILITIES MAY Be TO
WAGE WAR 1 AND WITH WHAT TECHNOLOGICAL DCVELOP-m
MENTS THE NEXT STRUGGLE MAY BE RENDERED MORE
TERRIBLE THAN THE USE OF ATOMIC ENERGY ON
DEFENSELESS CITIES OR BACTERIOLOGICAL WARFARE
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AT ITS GREATEST DEVELOPMENT. THESE FACTS
CANNOT BE OBTAINED BY NORMAL OPEN METHODS OF
COLLECTION. THEY CANNOT BE HAD MERELY FOR THE
ASK 1 N G.
IHAVE ASKED THIS COMMITTEE TO APPROVE A
0or
TH t S ~ GENT. EMEND 1 S MOST NECESSARY SINCE I THE
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COST OF )AtNTAtMtNG AN AGENT IN ANY COUNTRY IS
A FA 1 R Y CONSTANT FIGURE, BY KNOWING THE TOTAL
a
AMOUJ IT OF MONEY AVAILABLE TO US ~ RUSSIAN
y
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1NTELL1GENCE/ THE NKYD1 AND ITS COUNTERPARTS
IN OTHER COUNTRIES )COULD WELL ESTIMATE THE
EFFECTIVENESS OF MY ORGANIZATION AND TAKE
SUCH COUNTER-MEASURES AS_*WERE DEEMED NECESSA0gY,.
THIS
4.
I S 251
RODUQHLY SPOKEN INTO TWO _ MAJOR CLASS # F t GAT i ONS
(1
THESE FUNDS
ARE PLACED WITHIN THE FOLLOWING PROJECTS
AND UNVOUCHERED FUNDS I N THE
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1(jP SEcR[T
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1 AM SURE YOU GENTLEMEN W 1 LL DESIRE AN
EXPLANATION AS TO THE rNECESS 1 TY FOR SUCH A
LARGE PORTION OF OU ' SUDQET of 1 NG PLACED I N
THE UNVOUCHERED CA?EOORY 1 HAVE . ONE SAS ! C
REASON FOR TH I S- 'THAT is SECURITY, e y THE USE
Or UNVOUCHERED rUNDS $ CAN WORE NEARLY INSURE
r
THE SAFETY OF ;irAY 1 NO I V ! DUAL EMPLOYEES-
ESPECIALLY AGENTS ASROAD WHOSE VERY LIFE
DEPENDS ON /IT, AND CAN SECURE EQU 1 OMENT AND
SUPPLIES WITHOUT REVEALING THE PURPOSE FOR
WHICH THESE ITEMS WERE ASKED.
FOR EXAMPLE
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GENTLEMEN AN AVERAGE PAYROLL OF A FEDERAL
EMPLOYEE I N ITS PROCESSING CAN BE SEEN BY A
M! N I MUM OF THREE HUNDRED ! ND I VII DUALS ANY ONE
OF WHOM MIGHT BE AN ENEMY AGENT, I HAVE
ESTABLISHED WITHIN MY ORGANIZATION THE SAME
CONTROLS OVER EXPEHD I TURF OF FUNDS THAT AIRE
REQUIRED I N THE USE OF VOUCHERED FUNDS. THE
SECURITY FACTOR I S MET ,`BY THE CAREFUL CONTROL
OF MY OWN EMPLOYEES, "AT I S MY INTENTION THAT
A MAJOR PORTION OF THE UNVOUCHERED FUNDS BE
EXPENDED OVERSEAS. AGAIN ~ BY THE USE OF THESE
FUNDS I CAN PROTECT TO A GREATER EXTENT THE
OPERATIONS OF OU$ AGENTS.
WHEREVER POSSIBLE
I N THE CONTINENTAL UNITED STATES VOUCHERED
FUNDS WILL BE :USED TO THE SAME EXTENT AMC
UNDER THE SATE CONDITIONS THAT ANY OTHER
GOVERNMENT AGENCY EXPENDS ITS FUNDS. 1 MIGHT
POINT OUT GENTLEMEN THAT THIS 1 !S I N DIRECT
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CONTRAST TO THE FUNDS UTILIZED BY THE INTEL"'
LIGENCE AGENCIES OF THE FOREIGN POWERS, IN
PRACTICALLY ALL CASES THE SECRET INTELLIGENCE
OF FOREIGN POWERS I S FA NANCED WITH NO CHECKS
EXCEPT THE TRUST OF THE COUNTRY IN THE
I N D I V I D U A L S EMPL O YL'D BY THE INTELLIGENCE
CONTROLS AND DEFENSES FOR EXPENDI-
TURES ARE PRACTICALLY LACKING, OUR VOUCHERED
FUNDS ARE EXTENDED I N A RATIO OF APPROXIMATELY
FOR P E RSONAjW
SERVICES AND
THE DETAILS Of THESE APPROPRIATIONS ARE
AVA I LAB?LE AMC) HAVE BEEN CAREFULLY REVIEWED BY
FOR ALL OTHER PURPOSES.
SELECTED REPRESENTATIVES OF THE BUREAU OF THE
BUDaEtf:: 1 WILL GLADLY ANSWER SUCH DETAILED
QUESTIONS AS YOU MAY DESIRE AT THE END Or THIS
PRESENTATION.
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I FEEL / AND I KNOW THE NATIONAL I N T E L L I "'
QENCE AUTHORITY FEELS! THAT WE HAVE ALREADY
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MADE GREAT ADVANCES I N THE COORDINATION , OF
INTERDEPARTMENTAL INTELLIGENCE.
MADE GREAT STRIDES I N PLANNING FOR THE
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EXPLOITATION OF INFORMATION OBTAINED FROM 25X1
ALL THESE MATTERS I CAN ELABORATE ON TO THE
EXTENT YOU DESIRE.
I ALSO WANT YOU TO KNOW SOMETHING OF OUR
CLANDESTINE OPERATIONS APPEALING I N THE
1
INTERESTS OF SECURITY FOR YOUR DISCRETION.
(PRESENT BRIEF STORY OF S O OPERATf'ON.,
Top SE
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