FINANCES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R001700110139-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: May 22, 2003
• Sequence Number: 139
• Publication Date: March 25, 1952
• Content Type: MF

Approved For Release 2003/06/03 : CIA-RDP80R01731 FM12eo139-3
2,5 March
1ZI ORADUM FQR a DO/A
SUM T s r inanceas
1, The DCI has asked me to k on a study for
which I a need to know, among other things,, the
s*ouuts of our deposits, and 4other in dollars or
other currency,* tnrou gat the r r1d. Will you plesc
give as such a I st as of any. recent convenient date
on an s thy" basis?
2. With respect to each deposit, I xat kn
a of the aced me the naaaae and place of the de i-
withdrawal pers. 3
na't~rg or
haa eig
o
it-
and w
h
pf~
y~
j
j
,, ~
?
star,a~ letters o1 credit should be treated as d o$Its.
3. The abate, of cawse$ includes overt
as covert funds.
Stuart men
Inspector O*nOzsx
Approved For Release 2003/06/03 : CIA-RDP80RO1731 R001700110139-3
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Approved For Release 4003106103 CIA:
D017T0110139
25 March 1952
Our budget is divided into two major categories, one part
covering our normal intelligence operations and one part covering
cold war operations which we perform under NSC directive.
Our normal intelligence operations are budgeted for 1953 at
These are activities which we can budget as any
business can budget its affairs. We know the job we have to do
and the facilities and personne:L we need to do it. This job
involves first the collection of intelligence not otherwise
collected by Government. We do this by all known means; principally
by means of spies, monitoring of foreign broadcasts, collection an-1
study of foreign political, scientific and economic documents,
inducing and interviewing defectors, and intervievring returned
scientists and travelers from behind the Iron Curtain. Secondly,
it involves the evaluation and analysis of the intelligence we
collect and the intelligence which we receive from all other
Government intelligence collecting agencies, particularly the
Departments of State and Defense; and thirdly, it involves the
preparation and dissemination of both current intelligence and
of the National Estimate, which is the end product of the intelli-
gence operation.
We are a central intelligence agency. We therefore make no
attempt to collect intelligence in competition with any of the otl_er
intelligence agencies of Government. Our major collection expenses
are, therefore, in the field of espionage. As we receive the int-,-lli
gence collected by other agencies, we must analyze it, evaluate i ,
Approved For Release 2003/06/03 : CIA-RDP80R01731 R001700110139-3
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marry it to intelligence collected from other sources including our
own' and redistribute it to the interested agencies of Government.
This requires people and costs money, but we can estimate with
reasonable certainty what it will cost and our estimate for next
year is approximately
Our second major activity is to conduct the cold war. This
is a job we have not asked for and would prefer not to undertake.
We realize, however, that we are the only agency in Government t:iat
can do this job covertly as it must be done and have therefore
accepted it dutifully, however reluctantly. It is, however, a task
which we cannot budget for with accuracy. Its performance depends
not only upon what we are asked to do by the Psychological Strategy
Board but upon what our enemies do. For example, an extension
military activities
greatly increase the demands upon us in this field. Targets of
opportunity, as well as targeis of necessity, will determine how muc'i
effort we should make and how much the effort will cost. a 9e believe
back to Congress for a supplemental budget if we are suddenly ca .led
upon to step up our activities in this field, and our cover wouk_ be
endangered if we did so. We have therefore budgeted and are request=
your approval of the full
but we have ourselves devigraaecL
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There will simply not be time to go
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731 R001700110139-3
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only as the Director of the Budget may from time to time approve
upon our demonstration to him of the necessity of using it. We
asked for a similar reserve in our 1952 budget and received
To date we have called upon the Director of the
Budget for and have received approval of only
25X1
of this 25X1
reserve. We have before the Director of the Budget at this mom?nt
a request for an additional
stockpiling of arms, munitions and materiel to replenish our
depleted stocks and support our operations and so that we will
have available the means to step up guerrilla warfare, particularly
political and psychological warfare;
25X1
of t.is 25X1
requested for so-called cold war operations,
is earmarked for guerrilla warfare;
warfare, including a denial program on strategic materials;
million for general support operations, maintenance of bases, tr inin2,
etc. Forty percent of the total is for the purchase of materiel-
It may all be used, or very little of it may be used. To the extent
that it is not used, it is non-recurring. We may be able to save the
25X1 full reserve of
but, if you are going to ask us to
finance the cold war activities of Government, it would be short-
sighted not to make the full amount available if needed. We kner.r
that our enemy is spending many times this amount in cold war acL.iviti?s
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