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A  REPORT 
TO  THE 
NATIONAL  SECURITY  COUNCIL 
by 
EXECUTIVE  SECRETARY 
on 
/ / 
OFFICE  OF  SPECIAL  PROJECTS 
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NSC    10/1 
June   15,    19^8 
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NOTE   BY  TIE   EXECUTIVE   SECRETARY 
to   the 
NATIONAL  SECURITY  COUNCIL 
on 
OFFICE  OF.  SPECIAL  PROJECTS 
nefersncs  :   NSC  ±0 
•At  Its  12th  meeting  the  national  Security  Council  re- 
ferred NSC  10  back  to  the  NSC  Staff  for  the  preparation  of  a 
substitute  report  reflecting  the  discussion  at  that  meeting. 
Pursuant  to  the  above  action,  the  enclosed  draft 
National  Security  Council  Directive,  prepared  by  the  NSC  Staff 
as  a  substitute  for  NSC  10,  Is  submitted  for  consideration  by 
the  National  Security  Council  at  its  13th  meeting  to  "be  held 
on  Thursday,  June  17,  19^8. 
SIDNEY  V.  SOUERS 
Executive  Secretary 
/ 
Distribution: 
The  Secretary  of  State 
The  Secretary  of  Defense 
The  Secretary  of  the  Army 
The  Secretary  of  the  Navy 
The  Secretary  of  the  Air  Force 
The  Chairman,  National  Security 
Resources  Board
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proposed  national  security  council  directive 
1.   The  National  Security  Council,  taking  cognizance  of  the 
vicious  covert  activities  of  the  USSP,  its  satellite  countries  and 
Comiaunist  groups  to  discredit  and  defeat  the  aims  and  activities  c-. 
the  United  States  and  other  Ve stern  pcuers,  has  deterniined  that,  i: 
the  interests  of  world  peace  and  US  national  security,  the  overt 
foreign  activities  of   the  US  Government  must  be  supplemented  by 
covert  operations. 
2.      The  Central  Intelligence  Agency  is  charged  by  the  Nation- 
al Security  Council  with  conducting  espionage  and  counter-espionag- 
operations  abroad.   It  therefore  seems  desirable,  for  operational 
reasons,  not  to  create  a  new  agency  forj covert  operationsTgbut  in 
tirce  of  peace  to  place  the  responsibility  for   them  within  the 
structure  of  the  Central  Intelligence  Agency  and  correlate  them 
with  espionage  and  counter-espionage  operations  under  the  overall 
control  of  the  Director  of  Central  Intelligence. 
3.   Therefore,  under  the  authority  of   Section  102(d)(5)  of 
the  National  Security  Act  of  19^7,  the  National  Security  Council 
hereby  directs  that  in  tiue  of  peace: 
a.   A  new  office  of  Special  projects  shall  be  created 
within  the  Central  Intelligence  Agency,  and  under  the  policy 
guidance  of  an  Operations  Ad v  1  sory~~C c:nml ttee  to  be  establishes 
shall  plan  and  conduct  covert  operations;  and  in  coordination 
with  the  Joint  Chiefs  of  Staff  shall  plan  and  prepare  for  the 
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b.  A  highly  qualified  person,  nominated  by  the  Secre- 
tary of  State,  acceptable  to  the  Director  of  Central  Intel  li- 
cence and  approved  by  the  Notional  Security  Council,  shall  be 
appointed  as  Chief  of  the  Office  of  Specie*- 1  Projects. 
c.  The  Chief  of  the  Office  of  Special  Projects  shall 
report  directly  to  the  Director  o£   Central  Intelligence.   For 
purposes  of  security  and  of  flexibility  of  operations,  ana  to 
the  maximum  degree  consistent  with  efficiency,  the  Office  of 
Special  Projects  shall  operate  independently  of  other  compon- 
ents of   Central  Intelligence  Agency. 
d.   There  shall  be  established  an  Operations  Advisory 
Committee  composed  of  one  representative  of  the  Secretary  of 
State  and  one  representative  of  the  Secretary  of  Defense. 
These  representatives  shall  be  provided  assistants  and  staffs 
as  necessary  by  their  respective  Secretaries.   The  functions  - 
of  this  Committee  shall  be: 
(1)  To  furnish  authoritative  policy  guidance  on 
covert  operations  to  the  Director  of  Central  I  itolligence. 
/ 
(2)  To  assist  in  the  preparation  of  all  plans  for 
such  operations.   In  disagreements  arising  between  the 
Director  of  Central  Intelligence  and  a  member  of  the 
Operations  Advisory  Committee  over  such  plans,  the  matter 
shall  be  referred  to  the  national  Security  Council  for 
decision. 
e.   The  Director  of  Central  Intelligence  shall  be  re- 
sponsible for:
»' 
/ 
/ 
(1)   Ensuring  through  the  Operations  Advisory  Com- 
mittee that  covert  operations  are  planned  and  conducted 
in  a  earner  consistent  with  US  foreign  and  rdlitary  poli- 
cies and  v/ith  overt  activities,  and  that  plans  for  wartime 
covert  operations  are  also  drawn  up  with  the  assistance 
of  a  representative  o£   the  Joint  Chiefs  of  Staff  and  are 
accepted  by  the  latter  ss  being  consistent  v.Tith  and  com- 
plementary to  approved  plans  for  wartime  military  opera- 
tions. 
(2)   Informing,  through  appropriate  channels,  agen- 
cies of  the  US  Government,  "both  at  hoir.s  and  abroad  (in- 
cluding diplomatic  and  military  representatives  in  each 
area),  of  such  operations  as  will  affect  their*, 
f.   Covert  operations  pertaining  to  economic  warfare 
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will  be   conducted  by ' the   Office   of  Special  projects  under   the 
guidance   of  the  departments   and   agencies   responsible    for  the 
planning   of  economic   warfare./ 
pr.      Supplemental    funds   for   the    conduct   o£  the  proposed 
operations   for  fiscal  year  19^9    shall  be    immediately  request- 
ed.     Thereafter  operational   fun.;.s    for    these   purposes    shall   be 
included   in  ricii.al   Central   Intelligence  Agency  Budget   requests. 
$.      Cc/ert   op?rations,    in   t.lxs    of  war   or  ei.ic-rgency  when  the 
President  directs,    shall  be    conducted   under  appropriate    arrange Lisnts 
"to  be    recor^nded  by   the   Office    of  Special   Projects   in  collaboration 
with   the  Joint  Chiefs   of  Staff  and    approved   by   the   Ketional   SecurJ- 
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3.  -£>.'j  u:.«v")  in  this  d  i  r  .-olive,  "covert.  ope  .-ntiens"  arc  under- - 
toc-d  to  l:^  all  f.jtlvitioi:  (except  -3  notrd  havin)  which  arr  con- 
uct^d  or  yp-jn^cr-id  by  this  Gov-Hriment  c.:rr::;-c  hu-..tlle  forrign 
^st<?3  or  groups  or  In  support  of  friendly  foreign  states  or  groups 
"but  vhich  are  so  planned  end  executed  that  any  U2  Oovennent  re- 
sponsibility for  them  Is  not  evio?nt  to  unauthorized  persons  and 
Lhr.t  if  uncovered  the  U3  Government  can  plausibly  disdain:  any 
responsibility  for  them.   Specifically,  such  operations  shall  In- 
clude any  covert  activities  related  to:   prop^ganis ;  ecoiioraic  war- 
fare; preventive  direct  action,  including  sabotage,  anti -sabotage, 
demolition  and  evacuation  measures.;  subversion  against  hostile 
states,  including  assistance  to  underground  resistance  noven:ents,. 
guerrillas  and  refugee  liberations  groups,  and  support  of  indige- 
nous anti -communist  elements  in  threatened  countries  of  the  £ree 
world.   Such  operations  shall  not  include  ar^ed  conflict  by  recog- 
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nized  military  force3,  espionage,  com  ter -espionage,  and  cover  and 
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6.      This  Directive    supersedes    the   directive    contained    in 
I;SC    },t~S\,   which  is  hereby  cancelled. 
KSC    10/1 
-    *»    -
(Page  5) 
5.  As  used  in  this  directive,  "covert  operations"  are  under- 
stood to  be  activities  (except  as  noted  herein)  which  are  con- 
ducted or  sponsored  by  this  Government  against  hostile  foreign 
states  or  groups  or  in  support  of  friendly  foreign  states  or  groups 
but  which  are  so  planned  and  executed  that  any  US  Government  re- 
sponsibility for  them  is  not  evident  to  unauthorized  persons  and 
that  if  uncovered  the  US  Government  can  plausibly  disclaim  any 
responsibility  for  them.   Specifically,  such  operations  shall  in- 
clude any  covert  activities  related  to:  propaganda;  economic  war- 
fare; preventive  direct  action,  including  sabotage,  ant i -sabotage, 
demolition  and  evacuation  measures;  subversion  against  hostile 
states,  including  assistance  to  underground  resistance  movements, 
guerillas  and  refugee  liberations  groups,  and  support  of  indige- 
neous  anti-communist  elements  in  threatened  countries  of  the  free 
world.   Such  operations  shall  not  include  armed  conflict  by  recog- 
nized military  forces,  espionage,  counterespionage,  and  cover  and 
deception  for  military  operations. 
6.  This  Directive  supercedes  the  directive  contained  in 
NSC  4 -A,  which  is  hereby  cancelled.