RESUME OF BUDGETARY ANALYSIS OF INTELLIGENCE PROGRAMS PLANNED BY THE STAFF OF THE BUREAU OF THE BUDGET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R003500030018-6
• Release Decision: RIFPUB
• Original Classification: R
• Document Page Count: 7
• Document Creation Date: December 19, 2016
• Document Release Date: August 9, 2006
• Sequence Number: 18
• Publication Date: November 17, 1953
• Content Type: PAPER

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RESUME OF aJD(}ETMM ANALYSIS OF INT'LLIODTOI; PRO(RAIt5
PLA 'q'J D 1 TO STAFF' CP THE BURS' AU OF THE HJD GET
As Presented by Mr. Robert Magrs Chief,
International Division# BWreau of the Endget,
Before the Intelligence Advisory Cottsittee
Va %veaber 17a 1953
Int_.__rodn _ on
Members of the executive branch who are outside the inte3iige?cd
cotmunity have been impressed with the continuing high degree of
cooperation among the agencies represented here. Those of us who
work on the National. Security Council Planning Board are benefitting
directly from the improved national estimates program. We also have
1r/ seen evidence that
some of the major so-called intelligence gaps are
being identified and filled on an interagency basis, that duplication-
is being reduced, ands further, that refined priorities are in affect
throughout the community.
Mr. Dodge, Director of the Budget atreau, who has shown a keen
interest in your activities, believes that it is now important that
he and the President look at the total intelligence effort of the
Government. To our knowledge this has not been possible before. The
status report to the National Securing Council has not provided the
President with an overall fiscal perspective of intelligence adtivittet
Staff of the Bureau of the Btsdlet are undertaking an initial 1ud; etax
analysis which will provide the President and Mr. Dodo with a ba-A,v
for making program and bud-letary decisions, and which will, in Mr.,
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Dodge's view, be a desirable addition to the amtinuing critical
self-analysis undertaken by the community.
We have ample indication, apparent particularly during the
committee hearings lest spring, that Congress desires assurance that
Government .de intelligence activities are being given adequate
screening within the executive branch. Until now Bureau offiedale
have been unable to discuss in detail the relationship of one agency's
activities to another, or to disclaim satisfactorily any gross dupli.
cation which might be implied. It seems desirable that the executive
branch fulfill its responsibility before Congress finds it nec ssaxv
to attempt such a review independently,, In view of the above
considerations involving both the President and the Congreseb tct
more specific objectives which I will outline next are of some ?Lrr r'c' ..
. Before I go on to that, I would like to make it perfectfy .Near
at this point that the analysis the Budget Bureau is undertakinr will
deal in "lump sums" and broad categories and will not get into tray
detail of operations which remotely might jeopardize the protection
of sources of intelligence or current substantive evaluationa?
ther,, the interagency summation which will be the immediate pt'odl ant
of the review and the component agencW figures will be made avai:lM llp
outside the Budget Bureau only if and to the extent that it mrpr he
agreed by the agencies represented around this table. It is ftXlly
rec og .sad that certain Intelligence activities are for more sezw i five
than others.
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Objectives of Review
to To determine the present magnitude of the total intellie
effort of the Government.
In this period of prolonged cold war, intelligence activities
loom in security importance alongside the Nation"c armament efforts,
mutual, security program, and atomic energy developments. It is
essential that the President, and the Director in advising him be
able to consider the proportions of our national resources being
devoted to each major security program.
It is not at all unusual for the executive branch or the Congress
to review as a single program related activities carried on by severe I
agencies. A notable example is the research and development prograi
The Congress also demanded last year that the overseas information
activities and budget requests of four agencies be reviewed in sunmar-
forma In another case, the mutual security program, Congress kas
seen fit to provide a package of appropriations for foreign aid
activities carried on by fifteen to twenty separate agencies of the
Goverromento
2. To determine the present Government-wide. distribution of
intelligence resources.
This portion of the reviews which will be a necessary by-product
of objective Taos 1, should reveal the comparative emphasis on differ4e ~t
kinds of intelligence activities. For example, it should highlight
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(1) the overall effort devoted to basic intelligence or national
estimates; (2) the reliance on particular agencies for differing
amity-odde functions; and (3) the relation between the in lay
being spent on aoquisition of raw information and on processing
such infoamatton into useful intelligence.
We understand that the present distribution of resources has
been partially the product of agency needs and more recently of
broader considerations resulting from the efforts of this committee,
It now some wise to azaonine this allocation of resources to insure
that we are buying the most effective overall program with our
intelligence dollars.
3. To identify air remainin oreas of duplication.
Although we know that your interagency machinery has made grey
progress in this respect, continuing surveillance by all concerned
is essential under the current budgetary situation. It is pw.ticu--
lar2y necessary that we all be able to assure Congress more eon-
vinoinglr than in the post thataV unwarranted overlap which sera 1 n,
is being eliminated.
The fulfillment of the above objectives in essentially a
responsibility of the Bureau of the Budget. We expect to review tnji e
o1ose4 the budgets of the agencies In the intelligence comtwti.t r
than we have before. A. a more immediate step, we plan a sr-can
budgetary analysis involving CIA and the State and Defense
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Departments, and perhaps other agencies having substsr:tia7l inte1A3,,ene
aetivit*ro We are impressed with the need for technical uuidsnca a ,d
would appreciate your assistance to make this analysis as useful iii
possible, I have no preconceived notions about the specific procda,e
ty which you might aid us, but those ways which already have occu.xv?ed
to us are apparent in the steps outlined below.
1. Location of Government intelligence work and identificatiesn
of the sources of related funds. Some intelligence activitiaa are,
assigned to agency bureaus and staffs which apparently are quite
remote from the regular intelligence functions Sometimes inte$ligt-'ee
activities are financed from a variety of appropriations made avail.
able to an agency, In order to assure that our swuaary datatru)y
satisfies objective No4 1y, we would hope to have your assistance in
identifying those positions and dollars which Properly should be
included.
20 Development of s classification system to identify *e ';Osq
significant types of intelligence activi . Such categories ed.-d.tttc=tilt
may have to be arbitrarily defined. Bureau staff working alone
however# would not be able to establish a classification scheme . ~ n t
meaningful to you or most useful for our purposes, It might be that
the IAC will wish to initiate the development of a draft fuwtianali
ossification system utdch would be available' without a.W fo nal
IAC endorsements for our joint review with your staffs in two lor
three weekso If rota we hope that you would designate at an ettrly
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date experienced intellipancs analysts from each agency to wcwk with
us on a category breakdown,.
3o Assignment of data to these categories. With the Ciassif..-
cation system in hand, Bureau staff would hope to work with fiscal
and intelligence analysts of each agency in turn to distribute the.
ageneWes positions and funds among the selected categories. Prefeiiabl -
someone from each agency involved should be designated to verve an
a liaison point with the budget office to obtain the necessary del:,
It in our thought that a distribution of fiscal year 1953
information would be the easiest, although it may be possible to
make reasonable estimates far 1954 We are fully aware that marW
allocations will have to be arbitrary, but believe that even 'frouW
cuts" will be helpful,
Summation of data. This will be done by Budget Bureau s If.
Use of Results of the Review
In satisfying the objectives not forth, it is believed that
results of this analysis might be useful:
l4 For the Budget Director and the President for overall
judgment., The Director also should find the results useful in vied g
informed and reeaeuring answers to any informal congressional inq-,t-e-iet
that may be addressed to him during each session.
2e. For Ludget Bureau staff as basis for mere meaeaingfu). revi :r
of intelligence portions of all the IAC agency budget requests in
future years,
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3. For possible use by IAC or its member agencies, but may
might be fully agreed:
s. In explaining to the Congress;, in connection with
future budgets, the fiscal, issues confronting the
community; or
b. In providing the NSC With fiscal data for its eetrd-
annu l status reports,
Timing of Review
Although the need for this review has been apparent for some tip
the pressures of the current budget season have forced us to delay its
initistitsn, We envision an effort which may extend from the middle
of December of this year to the middle of March,, 19%,
Conclusion
I trust that it is now apparent why I have taken the time to
outline for you this step the Bureau is taking. We will value any
assistance you may be able to render, and we Welcome any other
suggestions you may have which would minimise the labor irrealveti Sri 1
improve the validity of the end product. I do believe quite s't ^onre13
that this step will redound not only to the benefit of the Preal-ci nt,
end his Executive office but to the entire intelligence community ;s
wet
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