Document Number (FOIA) /ESDN (CREST):
CIA-RDP80B01495R000600180004-6
Body:
Apptoved Foc Re lease. 2006111J04 :CIA-RQP80BO1495RQOQ6001800
MEMORANDUM FOR: The Director
13 March 1975
FROM : Deputy Director for Intelligence
SUBJECT : Southeast Asia Military Analysis
REFERENCE : Your Memorandum of 23 August 1974,
Subject: Financial Guidance for 1975
and 1976
1. In the reference memorandum, you asked me to
consider and to submit my recommendations regarding the
shifting to OSR of the positions in OER devoted to Southeast
Asia military analysis.
2. I have taken the liberty of expanding this instruction
to include a review of the entire DDI production office effort on
Indochina military activities which, as you know, includes OCI
as well as OER. Representatives of the offices concerned have
completed a review of the question. I have reviewed their study
and have discussed the various options with the Office Directors
and the NIO/SEA. On this basis, I have decided to reduce the
effort devoted to military analysis on Southeast Asia and to move
it to OSR effective 1 July 1975.
3. Despite the marked change in the tactical and strategic
environment since the January 1973 ceasefire, the Agency continues
to be tasked with the production of reliable and timely intelligence
on Communist and friendly forces in Indochina. There have,
however, been a number of developments which have enabled us
to make significant cutbacks in the resources devoted to intelligence
production on the Indochina military problem. These include a
lessened demand for in-depth research and basic studies on the
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military aspects of the Indochina problem, a significant decline
in collection capabilities and assets, the development of a strong
basic research capability in DIA, and a growing practice of
producing interagency studies which involve a more limited role
for CIA as a contributor to rather than a producer of independent
CIA assessments. The cumulative effect of these factors has
enabled me to reduce my production office resource fitted
to the Indochina military effort from a peak of about I ositions
in 1 ent level rofessional positions in OER
and n OCI.
4. Cutbacks of this size mean, of course, that the much
vaunted "Vietnam dividend" is pretty well spent. I do believe,
however, that by transferring the Indochina military respon ' itv
and refocusing a reduced effort that some modest savings--
positions--could be realized immediately. I would propose to STATOTHR
leave these savings in OER to help it to cope with the increasingly
insatiable demand for economic intelligence.
5. It is mintention to D a small unit
o handle the
ndochina military responsibility. This unit will function primarily
as a producer of current intelligence but would have sufficient
capability to make quality inputs to estimates and interagency
assessments. In short, I envisage an operation that -night be
characterized as "current intelligence plus". To ensure that
this expertise is available, the positions transferred to OSR will
be filled by analysts with long experience on Indochina.
6. Implicit in this arrangement is a decision to rely on.
DIA for the production of basic research and intelligence on
Indochina military. This decision obviously entails some risk,
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and if this risk is to be kept within limits, both Agency managers
and the NIO/SEA must be particularly careful in apportioning
future requests between CIA and DIA for intelligence support.
There is, of course, the possibility that future developments
in Vietnam could increase the demands on us for more in-depth
studies. In that event we would, of course, find whatever
resources were needed to do the job. With a cadre of seasoned
experts in OSR, it would be possible for us to rebuild a basic
research capability--but only after some lead time.
STATOTHR i
DISAPPROVED:
EDWARD W. PROCTOR
Deputy Director for Intelligence
/a : E. co wk
14 MAR 1975
Distribution:
Original - Director (return to DDI)
1 - DDCI
1 - ER
1 - Comptroller
1 - Director/OER
1 - Acting Director/OSR
1 - Acting Director/OCI
1 - C/Management Staff
Approved For Release 2006/11/04: CIA-RDP80B01495R000600180004-6
Approved For Release 2006/11/04: CIA-RDP80B01495R000600180004-6
Approved For Release 2006/11/04: CIA-RDP80B01495R000600180004-6