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104-10118-10427

•

2025 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992

Organization and activities of the

Deputy Director (Research)

Development Projects Division - special Projects Branch

As recommended, the special Projocts Branch of DPD plus tho

necossary supporting units have been transferred to DD/R.

Technical Services Division

Further study did not commend implementation of the Working

Group's recommendation that all ISD reseaich and dovelopment be

placod under DD/R. Tho DD/P made a substantial argument in favor

of leaving all of TSD undor his control la order to insure close and

intimato relations with the operating unite. Further, an argument of

almost overwhelming proportions indicated that the DD/R already had

some very major rosponsibilities without taking on the diverse and

generally unrelated responsibilities of TSD.

Other Research and Development

After considerable additional study it was decided to transfer all

ELINT to DD/R, except for the direct command of certain field units

which under all circumstances should be left under the station chiefs.

Research and development in suppost of NPIC would fall under DD/R

for those very advanced items, but not for current production require-

ments.

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•

Part I

Coordination

Tho staff of the Assistant for Coordination has continued to work

on the same basis as formerly and continues to be constituted of

assigneos from other agencies. There appears to bo progress in

,achieving closer later-agency coordination, but whether this is due

to the work of the Coordination Staff of to the DCI's personal interest

In this subjact would bo hard to determine.

Princeton Consultants to ONE:

This group has been continued.

National Photographic Interpretation Center

The Executive Director has personally kept under review the work-

load of NPIC. NPIC is recruiting in anticipation of an increased work-

Caliber of Personnel

The now DD/I is cognizant of this problem and is taking steps to

Improve the caliber of the persoanol.

Morger of ONE and OCl

It has been decided not to morge these offices.

Preparation and Dissemination of Memoranda

Tos many uncoordinated memoranda are still being circulated.

The practice of asking other departments to preparo memoranda bas

not been adopted.

White House Relations

(This matter was bandled orally by the Working Group and con-

sequently the comments will be handled similarly.)

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Research on International Communism

The DD/I has established a special staff under an experienced

intelligence officer for this purpose, and this staff is getting gradually

organized.

Offico of Scientific Intelligence

OSI le remaining under DD/1, but DD/R will eventually open his

careor servico to those who wiah to join it.

DD/R's Operational Responsibilition

It has been firmly establishod that DD/R will operate those pro-

jecta which he develops, We believe that DD/R has implemented some

of the principles in the special annex of the Working Group report.

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-= d

Organization and Activities of the

_ Intelligenco Community

National Indications Center - Watch Committee

Genoral Cartor, the new Chairman of the Watch Committee, bas

mado a thorough revlow of ita activitles and NIC operations. Stepa

have boen taken to see that NIC is proporly manned with the right

personnel, and the Department.of State is being constantly reminded

of Its obligations in this regard. We also belleve that the mothods of

oporations of the Watch Committee have sow been aligned in accord-

ance with the objoctives of the Working Group.

CIA Relationg with the Department of State

Since the issuance of the Working Group report, a spocial team

composod of a senior representativo from the Agency and from the

Department of State have studied the entire problem of "cover." They

inchedestherForegn Servicondonignation Anew agroement has been

reached on the handlisg of State communications. Since the production

of the Working Group report the level on which COMINT policy is

handled in CIA has been raised to that of Assistant Deputy Director.

State's Counter Communism Office

The proposal for the creation of such an office in the Department

of Stato appears to have come to naught.

Stato's Operational Center

Tho State Operational Centor also appears to have como to naught.

State at White House Briefings

The Dopartment of State does not attend the White House briefings.

Receipt of Top Classification Messages

Tho DCI has taken up with the White House the necessity for being

Included in the dissemination of all top classification messages.

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1. The organizacion of the DCI/DDCI's office is currently under study.

2. The Audit Staff is removed from the DD/S area and placed under

the Inspector General.

3. The Conipirolle: is remove from the DD/3 area, given greatly

expanied responsibilities, ari will report directly to the DCI/

DDCI's office.

* The General Counsel's office is removed from under the DD/S,

will resume responsibility for Congressional relations, and will

report directly to the DCI/DDCI's office.

5. The Office of Operations is disbanded. Contact Division to DD/P

as nucleus for Domestic Division. Foreign Documents Division

to be combined with OCR Library. Foreign Broadcast Information

Division to be independent unit reporting directly to DD/I.

6. Position of Assistant DD/P for Covert Action abolished.

7. Assistant DD/P for Paramilitary and Air Support Operations created.

8. Central Support Staff under DD/P created. This will draw together

such support as personnel, logistics and budget and will also take

over technical support from those operating units of TSD which

remain in the DD/P, e.g., secret writing, audio operations, etc.

The Central Support Staff will also absorb the present Operational

Services Staff and certain other activities.

9. A Special Task Force is created for such operations of a magnitude

that transcends the capabilities of one division.

1C. The International Organizations Division and Covert Action Staff

are combined, putting together our largest activities in this field.

11. A Domestic Division is created. This will absorb as its nucleus

Contact Division of CO from the DD/I, the Commercial Staff, the

Air Proprietary Branch irom DPD, ultimately the management of

CAT from the DD/S, and those aspects of cover which involve

contacts with the U.S. business community.

12. A Deputy Director for Research is created. This organization will

take over the Office of Scientific Intelligence from the DD/I, Special

Projects...:m DPD, all research and development from TSD, and

other research and development activities currently located in various

units of the Agency such as the Office of Communications, NPIC, etc.

SEPRES

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March 29, 1962

MEMORANDUM FOR THE RECORD

SUBJECT: Notes on discussions between myself, Carter, Kirkpatrick

Coyne and ichuyler ia review of report of the kirkpatrick

Committee

Following recommendations call for further consideration and

possibla modification.

1. Offico of the DCI

1. Page ll - Coraptrollor

Terme of Reference of the Financial Policy and Budget

Committee under the Comptroller and the Executive Committee

as provided hereafter must be clarified to provide continuing

program review by a senior committee as par: of an orderly

program and budget process.

2.: Dífico of Coordination.

Differences between Kirkpatrick and Schuyler position

as outlined in the report and Coyne's position should bo

considered and recorciled. Page 3, Item C. Responsibility for

SIGINT policies and resulting international arrangements as a

responsibility of this office should be further considered.

3. Publie relations directive should be issued on policy of

speech making and public appearances by Agency employees,

Including DCI and the Deputies.

4. Page 6. Reduction of forcs consideration should be given

with continuing 3-man management review committes (such as

• the Kirkpatrick Committee) exploring for the DCI and the DDCI

ways and means of eliminating duplication and consolidating

functiona, eliminating unnecessary activities, with the objectivo

of developing better organization at lesser cost and with

fewer personnel.

5. 6. B. Terms of Reference for the Executive Director and

the selection of this man should be discussed between McCone

and Carter at an early date.

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11. Offico of DD/P

1. Page 9: Important to move on an Asgistant DD/P for

Paramilitary operations and air support. There is

continuing criticiam of the Agency for lack of professionaliam

in these activitles, most particularly airborno.

2. Domestic Division.

Care must be exercised and the merger of Contact

Division with tha balance of the Domestie Division and

also care must bo axercised to bo sura that the Domestle

Dirision "gathers up" all fragments of ClA's activities

disporsed throughout the United Statea with the excopiion

of Security Division.

3. Doputy Chief of tho Division of British Commonwealth

Definition of this office must be worked out to avoid

confusion with respect to small British areas such as Hong

Kong, Singapore, British Guiana, etc. The purpose of

this office probablj so handle Commonwealth versus Colonial

Office affairs.

4. CLA/Stato Relations.

Review of salary allowances, expense accounts,

living conditiong, etc., of ClA agents under State cover

versus Foreign Service Cificers comparable conditions

abould be made and il criticism legitimate, corrective

measures should be taken without impairing abilitynstiters

of Station to handle special costly situations which might

bo dono by specille authorization, Also audit and control

of personal expenses of COS must be developed immediately.

IlI. Office of DD/I

1. Caster and McCone should agree on aclection of a DD/I,

Deputy DD/I and Chief of OCI as initial step in improving personnel

within this offico.

2. Merger of O/NE and OCI should be delayed until new

DD /I is installed and makes bis recommendations.

-2-

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3. National Board of Estimates should be revlewed and

Improved where necesgary and consideration given to formation

of a special group within O/NE to analyze on a continulag basis

objectives of soviet/Sino Bloc, international communism and

their pursuit of their cold war activities and in their efforis to

establish world domination. Note: Thie ofiice previously

existed directly under DD/I but was abandoned a few months

ago.

4. Proper llalson with finance, State Departmont, and

- agreud mothods for DCl to brie! NSC as provided by law

should be worked out.

5. National Photographic Interpretation Center. Pago 19:

Note this requires immediate study, possibly by USIB.

Fear that the work load on the NPIC will overwhelm it and as a

result it will be unablo to process vast amount of laformation

during months of May through September should be quickly studied

and arrangements made through USIß to disperse read-out to SAC

and Army St. Loula Center if doing so neceagary to keep our

processing and rad-out on a current basis.

This matter

considered of greatest importance.

IV. Elements of DD/R

1. It should be recognized that Deputy Director for

Research is a cover and this office not necessarily confined

to research but should be tadied with operationed responsibi-

lities. Also most important project under DD/R is OXCARI,

therefore DD/R must bo restrained from taking on collateral

activities so fast that OXCART will suffer. The DD/R

responsibilities will cover all phases of Agency responsibility

and activity in NRO which may or may not include the actual

operation of OXCART. It will include intelligence input into

OXCARI and CORONA and SAMOS planning, irrespective of

where operations rest.

2. Location of Oil should be resolved.

3. Interrelationship between DD/R and DD/P to provide

staff support and particularly the Cl production should be

established by directive of Deputy DCI.

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4. With respect to page 23, certain operational responaibl

lities ahould pass from bali to DD/P upon completion of

research and developinent; however a study should be mado to

determine whether the many fully iniegrated operational activities

such as OX CANT and some fully integrated ELINI operations

should not be permanently under DD/R who is to have both

oporational and research and development responsibilities.

Considerations of OXCART

1. Rosponsibility for all phasea of OXCART are to follow

the direct supervision of Sec/Del and DCI by agreement with the

OD, Charyks as AR/Sec. Def., will be executive head of NRO, DD/R

will be his Deputy and by assignment will bo responsible for all

phases of OXCART.

2. Details of operations, as contrastod to RED, will bo

worked out at a later dato.

3. NSC directive agreed OXCARI tatke are responsibility

of Special Group and question of augmentation is a matter for Spectal

Group, not ClA, to decide.

-=.

4. DD/R should be charged with the responsibility of

mobilizing and utilizing all necessary resources of DD/I, DD/P and

DD/S and General Counsel in performance of DD/R's assigned respon-

sibility as Deputy Director NRO and manager of OXCART project.

5. Question of uao of Air Force officers versus civillang

must be decided by higher authority, likewise the question of operational

responsibility between that of CLA or DD/R or personnel secanied from

the Air Force versus direct Air Force operation must be decided by DCI

and Sec/Def. and the President after careful consideration of all issues

and problems relating to this matter.

6. Because of imminence of commencement of test

flights immediate careful attention should be given to all aspects of

the cover story as certain iaforination concerning the plane will

become krown when it is observed in FAA (hat other) radar

V. National Indications Genter Watch Committee

1.

Appointment should be made next week for General

Carter and myself to viait the NIC and the DLA Centers and

observe the latch Committee operationa and make a judgment

as to whether this organization is properly set up and

efficiently operatiag, and to rosolve differences between

Mr. Coyne and Usia.

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2. White House brlefings should continue; a subatitute

for MI. Amory should ba arranged until a more adequato

arrangement is provided: Daily baleiings of Bundy, Clifton

and Taylor and an occasional briefing of the President by

DCI slould suffice.

JOHN A. MCCONE

Director

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6 April 1962

MOMORANDUM FOR: Director of Central Intelligence

SUBJECT

: Final Raport of Working Group os Organization

and Activities

1. I have the honor to present herewith the final report of the

working group which you established in January to consult with you and

advise on the organization and activities of the Central Intelligence

Agency, and of its relationship with other agencies in the intelligence

community. This report reflects the views of the working group and is

divided into two parts. The first part deals primarily with the organiza-

tion of the Central Intelligence Agency and reflects the unarimona views

of the working group. The second part contains comments and recom-

mendations on areas dealing with the work of the Ceptral Intelligence

Agency and activities of the intolligenco community in which the working

group was either unable to agree or felt that considerably more study

was needed before action was taken.

2. For the record I would note that the working group held its

first session on January 3 and met on 35 different days beiween that date

and its final session with you on March 28. During its work the group

had approximately 100 briefings. Most of these briefings dealt with the

organization and activities of the Central Intelligence Agency, but also

included a full day spent with the Department of State in addition to several

briefing on State Department activities and ite relations with CIA; approxi-

mately ona-half day spent in the Pentagon in addition to other briefings

by the Defense Intelligence Agency; and a full week spent visiting SAC,

NORAD and other activities in the United States. We were briefed by

the head of evary major coraponent in the CIA with the exception of three

DD/P area divisions whose briefings had to be excluied because of the

pressure of time. However, we feel that having heard from four other

area aivisions the working group had a knowledge of the activities and

problems of these units. In addition to the 100 briefings, the working

group had more than ten executive sessions in which it discussed and

debated at great length its findings and conclusions. Finally, there were

17684

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some 20 meetings with yourself, and with senior Agency officials to

discuss our findings and conclusions. These includeu at least two

sessions with each of the Deputy Directors and with the Assistant

Director for National Estiriates and the Assistant Director for Cur-

rest Intelligence.

3. The attached report does not purport to be complete or ex-

haustive in any respect, but rather it is an aide memoir to recall to

mind our oral discussions and to rocord some of the reasons and

philosophy behind our recommendations.

Lyman B. Kirkpatrick

CC: DDCI

Attachment

Report wad read by;

DD\R

DDIS

ADISI

DD|P

cys-destroyed

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PARI I

This section deals primarily with the organization

of the Central Intelligence Agency and represente

the vow of the entire Working Group.

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OFFICE DE THE DEI

Organization of Lola Fifice

die recoiamend that the organization of the DCI's office be

changed in order to provide mora effective support to the DCI, a

systersatized control of messages both oral and written, and a

clear delineation of the responsibilitios of the assistants to the

DCI. In this connoction we would urge that a secretariat be

created, that the head of this secretariat asalga lodividual re-

sponsibilities to esch of the personal assistants to the DCI, that

dally staff meetings be held for a full exchange on the activities

of the staff, and that all personnel in the Agency be advised as

to how to keep the DCI's staff informed properly of the activities

of the Agency.

Compiroller

We recommend that the Comptroller's office be brought

out from under the DD/S, report directly to the DCI'a office and

receive full authority for fotal fiscal control of the Agency..

We recommend that the Comptroller be desigaated Chair -

man of a Financial Policy and Budget Committee composed of

the appropriate senior officers of the Agency. We believe that

seeker

D

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•

such a committee should be kept fully and currently informed of

all Agency activities, and in order to be effective should meet

regularly and submit ita reports to the DDCI and DEI.

Inspector General

We recommend that the Audit Stalf be combined with the

staff of the Inspector General and that the merged staff report to

the DCl's office.

We belleve that the size of the Inspector General Staff

should ba increased with qualified professional personnel assigued

from their respective componente in order to perform more

frequent aspections of Agency unite. We urge inspections at

least ánnually of major operations and of field stations.

General Counsel

We recommend that the Genoral Counsel'e staff be

removed from the organization of the Deputy Director (Support)

and report directly to the office of the DCI. In such a position

the General Counsel should reaume the responsibility for the

direction and guidance of the work of the Legislative Counsel,

which is currently the responsibility of the Inspector General.

up)

reveal

filesere.

-2 =

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.

-

Cable Secretariat

le have examined the Cable Secretariat which la currently

• located in the office of the DCI and reporta to the Executive Officer.

We believe it should continue to be in the office of the Director under

the careful superviaion of the Executivo Director. Wo aro con-

cerned that as it now operates requirements for cables have not

been adequately coordinated, and cables have been disseminated

too often on the judgment of junior officero. We believe this neede

careful study.

Contracts

-

D

contracts for such activitios as TSD and DPD, and that those

contracts currently in existence should be revlowed and that all

such future contracts should be passed on by the DCI's office

prior to approval.

Personnel Assignmenta

We believe that the DDCI and DCI should be the final

approving authority for all assignmente to positions of Chief

or Deputy Chief of Offices (DD/? Divisions and Staffe) or o1

field stations and bases, both foreign and domestic.

ныно.

..-

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We beliove the DCI's office should also review all assiga-

mento in the middle management echelon with particular reference

to insuring the proper language qualifications, operational training

and suitability.

Publie Relations

We recommend that the present aystem of public relations

by the Agency be changed. While we see the necessity for the

DCI to have an assistant in his office handling relations with the

public media, we belleve that every effort should be made to

minimize the amount of publicity that CIA receives.

We strongly secommend that the present practice of

giving background briefings to newspapermen cease and that

CIA give Information to the press only where ClA hae something

which for oporational reasons should be released on an unattri-

butable basis. We urge that no public speeches be given by

Agency officials.

Reduction in Force

We recommend that the DCI and DDCI insure that the

present reduction in force in the Agency include senior officers,

particularly supergrades who are no longer as efiective as thay

should be in their assignments.

With

SECRET

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Handling of Communications Other Than Cables

We note that under present arrangements communications

other than cables are handled by the Records Integration Division.

of DD/P, which is not always fully coguizant of the interests of

non-DD/P parts of the Agency. We recommend that the entire

system of handling lacoming and outgoing commualcations be

subjected to further study with a view to insuring adequate dis-

-

semination of all communications, particularly in DD/I, DD/R

and DD/S, which may have need for prompt receipt of such

material.

Exocutive Director

We have not tried to spell out the responsibilities of the

Executive Director, Inasmuch as we believe this to be primarily

a matter that should be tailored to the personal preferences of

tho DCI and DDCI and how they wish to operate their office and

the Agency. We urge, however, that special attention be directed

to the avoidance of a straight vertical line of commaad; l.e., all

problems should not have to pass through each of the three officers.

executive Committee

We recommend the creation of an Executive Committee

to be chaired by the DDCI and consist of the four Deputies, the

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Comptrollor, and the Assistant to the DCI for Coordination and

Intelligence Community Guidance. Thia Commitioe, from a

policy standpoint, would review proposed major projects and

maintain a continuous roviow of all major activities and maño

appropriate recommendations thereon to the DCI. This Com-

raittes would replace the present Project Review Committee.

Include

?

Delite

-Assia Coord.

6

SHERET

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ORGANIZATION AND ACTIVITIES OF THE

DEPUTY DIRECTOR (PLANS)

to

Office of the DD/P

Vie commend the decision of the DD/P to abolish the position

of the A/DDP/A, and believe that the restoration of the previous

organization with just the DD/P and COP in the line of command

in the front office will result in a clear delineation of responsibili-

ties and more efficient operations.

The Staffs

We studied at some length the staffs in the DD/P. We con-

sidered a possible merger of the FI, Cl and CA staffs. We also

studied proposals for divesting the staffs of all operational reaponsi-

bilities. We believe that while both are desirable objectives, neither

are practicable under present circumstances. We therefore urge

that the FI, CI and CA staff functiona be drawn closer together

under the Chief of Operations and that these organizations insofar

as practical act in the classical sense as staffs for the DD/P. We

further believe that the Operational Services Staff, the Central Staff,

and the resicual of the Cover and Commercial Staff, after the changes

recommended below are completed, be transferred to the Central

Support Staff which is proposed.

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jerger of Covert Action Staff and Interrational Organizationa Division

The DD/P has advised us of his desire to morge the Covert

Action Stall with the Insernational Crganizatioas Division. While

this is contrary to the trend of divesting stafis of operational duties,

we nevertheless do not observe any major reasons against such a

merger and believe that it should be tried out in accordance with

the DD/p's wishes.

Central Support Staff

We recommend that the DD/P draw together into a Central

Support Staff control of personnel and other support mattera cur-

rently decentralized to the divisions and staffs in order to locate

these functione directly under him.

Special Task Force Operations

We recommend the creation of an organizational entity to

Do known as "Special Task force Operations' reporting directly

to the DD/P, which shall be activated and deactivated upon need,

and which shall be the command inschanism for handling such

projects as the Cuban operation which demands the creation of an

organization from Agency-wide assets.

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Assistant to DD/P for Paramilitary and Air Support Operations

We recommend the creation of an office in the DD/P to be

known as Paramilitary and fir Support Operations, under the

direction of an Assistant DD/P, to develop the capability for covert

paramilitary and air support operations. We suggest that the bulk

of this new organization be located at [10 J where it will have

facilities for organization and training. Such a move will also relieve

the burden on the headquarters building. We recommend that the

individual to head this organization be drawn from military service

and be a senior. Colonel or a Brigadier General with wartime para-

military experience. Having in mind the total disestablishment of

the DPD in its present form, we recommend that the Air Support

Branch of DPD be transferred to the new Paramilitary Office of DD/P.

Domestic Division

We endorse the proposal to create a Domestic Division. We

strongly urge that the new Domestic Division utilize the Contact

Division of 00, which is to be transferred from the DD/I to the DD/P,

as the nucleus for field work in the United States. We also believe

that this Domestic Division should take over those functions of the

Cover and Commercial Staff presently carried out by the Commercial

Group, plus all those activities of the Cover Division which involve

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SECRET

contacts with domestic organizations in the United States such as

business and foundations. This would involve the transfer to this

Domestic Division of the Air Proprietaries Branch of DPD, and of

the responsibility for the management of CAT from the DD/S, and

of managing Fairways Corporation. In consolidating CAT and Fair-

ways into the Air Proprietaries Branch we wish to draw attention

to the necessity of having the right man to head this branch.

We would also urge that a complete review be made of the

Agency'a present and future requirements for air proprietaries and

that a statement of the requirements be provided the Air Proprietaries

Branch indicating exactly what may be needed in all parts of the world.

With the creation of the Domestic Division we urge that the DD/P

examine the requirements levied by DD/P components on the Office

of Security fo, operational support and if possible reassign these

requirements to the Domestic Division in order to relieve the Office

of Security for its more important responsibilities in regard to the

security of CLA.

Operational Aids Unit

The DD/P should have a new unit charged with the following

functions:

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a. Residual ISD activities not transferred to DD/R.

b. Preparation of "operational characteristica" for new

or improved equipment desired to be developed by DD/R.

c. Close contact with DD/R activities involving dovelop-

ment of iteme for DD/P.

d. The conduct of rigorous field tests of these iteme

before they are released to divisions for operational use.

We recommend that all of the research and development responsi-

bilities currently in TSD be transferred to DD/R. Remaining unito

in TSD should be tranaferred to the new DD/P division recommended

above; e.g., Audio Support less Research and Development, Photo-

graphic Support less R & D, Special Assistance, Intelligenco,

Personnel, Authentication, and Graphic Arts Reproduction. We

note, however, that DD/P himself would prefer to retain under bis

own responsibility the R & D function as it pertaina to specific items

to be used by individual agents (audio devices, incendiary iteme, etc.).

Deputy Chief for British Commonwealth Affairs, Western European

Division

We recommend the creation in the Western European

Division of a second Deputy Chief for Britiah Commonwealth Affaira.

We suggest that this Deputy Chiel havo ao hie line responsibilities

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all matters involving C

Further, this officer should

have full control authority over.

L

24

and all other componenta of the Agency, including the DD./I, should

keep this officer advised on a daily basis L

24

- 0_

1.

War Plans

Because of the vital importance of war plans to the Agency's

relations to the Joint Chiefs of Staff, we recommend that the War

Plans Croup receive direct support from the DDCI, even though it

should remain organizationally as a part of the Central Support Staff

of the DD/P.

Police Programs

We are convinced that United States Government support to

the police in friendly nations can provide great benefits to the

United States and that some of these benefits will assist CLA in its

work.

The President has recently indicated to AID that he wishes

this program to receive strong eupport. We balieve that CLA should

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give it greater support than it has previously received. We recom-

mend that the police group in the CI Staff receive such augmentation

as is necessary, and that Project L

24

I be transferred from the NE Division to the CI Staff.

Liaison with Department of State

We urge that the DD/P centralize liaison with the Department

of State and maintain careful records of all discussions betiveen the

Agency and State Department officials. We note that nearly every

area division chief has a weekly meeting with his counterpart in the

Department but that under the present system there is no organized

method for keeping the central management of thé DD/P informed

of what takes place at these meatings.

Advice to State on Black Propaganda

We recommend that the DD/P. develop procedures which will

insure that other appropriate agencies of the government (Department

of State, Defense, White House and USIA) are kept appropriately

informed of black propaganda activities which otharwise might be

misunderstood and believed to be legitimately the views of a foreign

power.

We have in mind our discussions with the Department which

heard expressed concern that the Department was unaware of certain

black propaganda activities relating to Communist China and conse-

quently was led astray.

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CIA Personnel Under State Cover

We recommend that ClA personnel under the Department of

Stato cover make greater efforts to truly live their cover.

We. believe

in this connection that the DCI should receive assurances from the

DD/P, after proper study, that CIA allowances for rents, servants

and entertainment are in line with comparable State Department

allowances.

"Legitimate" E

cover

We recommend that the Agency more and more place people

under L 08 I cover by the "legitimate" method of recruiting

Individuals, having them L

and be L

08

]

J: and ioliow through a

normal L 08 Icareer. CIA should obviously keep L

O 8 Jadvised concerning these individuals, work with L

o 8 J on their assignments which will be mutually beneficial,

and covertly train them. By this method such individuals will be

under true L 08

Icover and will not only be unknown to

other intelligence services, but also to their colleagues in L

08

].

- 14

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to an on a --

Latin American Cperations

We urge that the Agency give high priority to supporting

the expansion of activities of Latin America, and insure that the

proper level of competence is assigned to these important posts.

American Friends of the Middle East

We recommend that the project for support of the organization

known as the American Friends of the Middle East, which is cur-

rently being run by the NE Division, be transferred to the IO Division

inasmuch as it now transcends NE Division area responsibilities and

has activities in Africa, or, if it is determined that AFME activities

are not worth the Agency's support, that the project be abolished.

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ORGANIZATION AND ACTIVITIES OF THE

DEPUTY DRECTOR (INTELLIGENCE)

Office of the DD/L

We have carefully reviewed the organization and activities

of tho DD/l's Immediate office and believe that with the addition

of a full time deputy ho will be able to assert the degree of

Influence on the management of the unite under him required for

sound operations. At present his three office assistante provide

good staff work in this revlow, but we did observe that a con-

siderable amount of the Intelligence produced in the DD/I area

la revlowed at so higher a lovel than office chief, lf that.

• We recommead that the DD/I establioh in his offico a

focal point through which all intelligence, processed or unevaluated,

going to the White House must How. I for reasons of urgency a

report is sent to the White House prlor to evaluation, we recom-

mend that a special notice to the effect that it is unevaluated be

attached to the report and thai an evaluation follow to report at

the earliest possible moment.

Board of National Estimates

The Office of National Estimates should be strengthened by

the addition of one top-level foreige affairs expert to the Board of

Estimates, and if obtainable a top-level scientist and a top-levol

economist.

We also belleve that the Board would benefit by the

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• *

addition of an individual experienced in business in the international

fleld, provided one of sufficient caliber could be found who would

be willing to spend two or three years on the Board of Estimates.

Control of Estimates.

We urge that the DCI utilize the USIB to control the

schedullag and to liait the number of National Estimates.

Office of Operatione

We recommend that the Office of Operations be abolished,

that the Contact Division be transferred to DD/P to be the nucleus

of the Domostic Division.

The DD/I has advised us that with the transfor of Contact

Division, Office of Operationg, to the DD/P, he is considering

closer integration of the Foreiga Documente Division and the

Foreign Broadeast Information Division. These units have a lot

In common: both proceas unclassified information, both have

considerable language capability. We believe such an integration

should be considered. On the other hand, the Assistant Director

for Central Reference believes very strongly that the Foreiga

Documents Division should be assigned to OCR. He advances as

reasons: that the procurement of foreign documents are arranged

by OCR: that the dissemination of the FDD product is handled by

OCR; that OCR through its relations with the Library of Congress

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and other agencies is in a good position to assist in coordinating

the exploitation of foreign documents. We urge that the DD/I

integrate FDD and FBID into the most compatible area of the

DD/I organization.

Support of Cenis

Support for the Center for International Studies (CENIS)

at MIT is currently being handled by the DD/P. If auch support

is worth continuing, and we question this, we recommend that

it be transferred to the DD/I's office.

TEll He

18

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ORGANIZATION AND ACTIVITIES OF THE

DEPUTY DIRECTOR (SUPPORT)

Security Office

We recommond that the burden on the Security Office for

support of the DD/P be reviewed (see DD/P section). In the

meantime, we ballove that a careful look at the Securlty Office

is necessary to insure that the volume of work it is carrylug

Is not in any way jeopardizing its primary responsibility of

'insuring that every possible measure is taken to koep the Agency

Becure.

We recommend that all security clearances be centralized

undor tha Office of Security; e. g., clearances that are isaued

by DPD, OCI, NPIC, and other Agency components. While we

would leave the policy of granting clearances with the appropriate

officials, we beliove that the Office of Security should maintain

a centralized index for special clearances and do all of the

processing of theso clearances.

Audit Staff

We recommend that the Inspection and Audit Staff check

regularly on activities in the Löckheed plant wrich are of vital

concern to the Agency.

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DPD Support

We recommend that the DDiS be given the rosponsibility for

•support to all projecta under the control of DD/R, providing of

course the necossary security safeguards, aud that in the future

no parallel support mechanism be dovoloped in the Agency.

Automatic Data Processing

Wo believe the Automatic Dais Processlag Stall can

properly remain under the DD/S insamuch as thie la a support

mechanism, although we strongly recommend that the DD/S

1a consultation with other deputies concernod direct this stall

to aggressively pursue the objective of automation in the Agency

In such a way as to insure tho ultimate compatability of auto-

matic data processing systems throughout the intelligenco

coramunity..

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ORGANIZATION AND ACTIVITIES OF THE

DEPUTY DIRECTOR (RESEARCH)

The Offico of the Deputy Director (Research) having already

been created, we now make the following recommendations as to

those units which should be included under this Deputy.

Devolopment Projocts Diviion - Special Projecte Branch

We recommend that the Special Projects Branch of DPD

plus the necessary supporting elements, including those projects

supporting the Department of Defense in advance reconnalasance

programe, bo placed under DD/R.

Technical Sarvices Division

We recommend that all ISD research and development

be placed under DD/R.

Other Research and Development

We recommend that the extent to which research and

development for SIGINT collection equipment, including agents'

SIGINI equipment, air-borne collection, etc..

should be transferred

to DD/R, be left as a matter for negotiation and agreement between

DD/I and the Director of Communications.

We recommend all research and development in support of

NPIC be transferIed to DD/R.

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..

PARI L

This section contains comments and recommendations on areas

of the work of the Central Intelligence Agency and activities of the

Intelligence community in which the working group was either unabla

to agree, or felt that considerably more study was neoded before

action is taken. These views are presented herewith so that they

may assist and guide those who may be asked to pursue these matters

further.

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Coordination

le note your intention to abolish the present office of the

Assistant for Coordination and to create in its stead an Assistant

to DCI for Coordination and Intelligence Community Guidanco.

With the exception of Mr. Coyne, we are fully in accord. We set

forth below our concept of the principal functions of this Aasistant.

a. He should bo the DCI's priacipal advisor on coordina-

tion matters within the community and his personal representative

in dealing on such matters with top officials of the community.

b. When so directed he should represent the DCI in

negotiations and diecussions on intelligence matiors with appropriate

offletals of foreign governments.

C. He should be responsible for development of Comint

and Elint policy insofar as this is an Agency function.

d. He should keep continually under revlew the general

extent and direction of the intelligence efforts of the community to

insure that such efforts fully and effectively support national policy,

submitting reports and recommendations to DCI as appropriate.

e. He should correspondingly maintain a continuing

review of activities and efforts of the Agency to insure that they

remala fully and effectively coordinated with the activities and

efforts of other members of the community.

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1

We do not concluer it practicable at this tine to suggest the

number or qualificaticas of supporting staff officers for this

Assistant. We feel, however, that he will need a group of such

officers and that they should be of particularly high caliber and

broad experience. The functions we visualize for thia office are

highly Important for the community and for CIA. They have not

been adequately handled in the past. The Assistant should be given

whatever staff tha full development of his role may later require.

Ms. Coyne does not concur in this recommendation. He dis-

agrees with (a) the proposed organizational placement and title of

the recommended office, because this would perpetuate the present

Ineffective arrangement of the Coordination Office now in existence

and would not provide the recommended office with the stature required

to assist the DCI in fulfilling his heavy responsibilities throughout

the Intelligence Community; (D) the limitations in the functional

concepts of the office, as outlined above. Further, he does not con-

cur in this recommendation because it does not distinguish sufficiently

the internal CIA operating functions of the DDCI from the community-

wide functions which the recommended office must perform if the

DCI is to execute effectively his principal mission as assigned in

the President's Directive of January 16, 1962. Mr. Coyne believes

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that if the office is established along the lines recommended above,

it will be incapable of effectively assisting the DCI in performing

his principal Presidentially-assigned responsibilities of (a)

coordinating and effectively guiding the total U. S. foreign intelli-

gence effort; (b) establishing necessary policies and procedures to

assure adequate coordination of foreign intelligence activities at all

lovels; (c) maintaining a continuing review, with the heads of the

Departments and Agencies concerned, of the programs and activities

-..

of all U. S. agencies engaged in foreign intelligence activitles; and

(d) assuring efficiency and effectiveness, and avoiding undesirable

duplication in the total foreiga intelligence effort.,

Ms. Coyne will

submit his recommendations on this subject at a later date.!

Princeton Consultante to ONE

Mr. Coyne recommends that this group be disbanded based on

advice from principal concerned officers of the Agency that the group

makes no contribution to the intelligence estimating effort. The other

members feel that on balance the group should be continued.

National Photographic Interpretation Center

We are concerned about the capability of NPIC to handle what

may be a greatly increased volume of work in coming months. We

- 25 -

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recommend that as a matter of priority the USIB have this matter

reviewed and insure that any increased flow of raw material does

not result in slowing down the prompt and complete processing so

urgently required.

Caliber of Personnel

We believe that the DD/I should devote some considerable

offort to improving the caliber of personnel in his offices. Although

we did not make a study in depth, we believe that there is a serious

problem in this regard in OCI and that steps should be taken under

the new management of OCI to improve the caliber of supervisory

personnel and thus improve the morale of that office.

\ Merger of ONE and OCI

We studied at some length the feasibility of merging the Office

of National Estimates with the Office of Current Intelligence. We

found the Office of Current Intelligence eager for a merger, the

Office of National Estimates strongly opposed. The DD/I was inclined

to favor it, but foresees certain personnel difficulties. We do not

believe that such a merger would be wise unless it was well esta-

blished that the result would be the creation of better national estimates

and current intelligence dailies and weeklies. The DD/I feels that

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he should be given at least sixty days to explore this proposal and

to prepare his recommendations. We concur.

Mr. Coyne does not agree with the above paragraph and in lieu

thereof recommends that the ONE and OCI be merged now. He

believes that such merger will result in improved intelligenco

products to support the national policy makers.

Preparation and Dissemination of Memoranda

We have noted considerable unhappiness in the Department of

State because ONE and OCI have established the practice of distri-

buting throughout the community, and to the White House, uncoordinated

memoranda on intelligence matters. These memoranda are prepared

as "think pieces", but the Department of State feels that they often

seem to influence policy at high levels. We think the Department

of State has a point, and we urge that such memoranda be carefully

restricted to circulation within the Agency unless or until they have

been coordinated acrosg-the-board.

We also urge that the DCI adopt the practice of asking othor

agencies to prepare such memoranda if the subjects fall within the

purview.of their responsibilities; e.g, the Department of State on

strictly political matters.

We believe that, at a minimum, when

CIA is asked for a memorandum that inquiries should be made of

- 27 -

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other departments to determine whether such a memorandum hasn't

already been prepared or might be in the process of preparation.

White House Relationg

We are concerned about Agency relationships with the White

House insofar as handlag of intelligenco matters le concerned. We

would like the opportunity to discuss this with you orally before

framing recommendations.

Research on International Communiam

We are concerned about the reported inadequacy of research

done on International Communism. At the present time some is

done in the DD/I area in both OCl and ONE, some is done in the DD/P

area in the International Communism Division of the Counter Intelli-

gence Staff, and some is done in the State Department in the Special

Studies Group of INR. The DD/I expressed himself as believing

this was sufficlently covered. The Chief, CI Staff believes it is

insufficiently covered. Representatives of the Department of State

urged that greater expertise be brought to bear on the subject.

Inasmuch as it will fall squarely on the shoulders of the DCI if not

enough is being done, we urge that the matter be reviewed by the DCI

at an early date to satisfy himself that all necessary research in this

field is being accomplished.

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Office of Scientific Intelligence

On the new chart we have shown OSI as a division under DD/R

since we understand this to be'your desire. We feel, however, that

OSI in its major activities is more closely linked to DD/I than to

DD/R and therefore more properly belongs under DD/I. DD/I himself

strongly supports this view and urges that he retain OS!. We bolieve

that if this is approved, scientista in OSI should be membera of DD/R's

career service, subject to transfor between OSI and units of DD/R as

i te

might be agreed between the deputy directors concerned.

DD/R'a Operational Responsibilities

We have some concern relative to your intention to have DD/R

caxry into the operational phase his responsibility for certain major

projects involving complex and coordinated operations which are

highly sensitive and where a mis-step could have serious national

or international repercussions. DD/R's key people will be mostly

scientists, technological experts or leaders in specialized develop-

ment fields.

Such individuals on the average have no professional

intelligence operating experience and little background or interest

in detailed operational problems requiring thorough inter-agency

coordination, painstaking and tedious follow-up actions and careful

attention to

security details. DD/P, on the other hand, has a number

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•

of top-light people who for some years have dealt almost exclusively

with just such problers.

•

We recognize all the difficulty, in the course of a project of this

typo, of shifting responsibility from one deputy to the other; and we

realize that development must also lap over into the operational

phase. We suggest having as a general rule (but granting that oxcep-

tons will arise) that when operation beglas the responsibility for the

operations should be the DD/P's, but that DD/R should retain his

responsibility for seeing that the equipment he has developed continues

to function properly. There is here attached a specially classified

annex.

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i

ORCANIZATION AND ACTIVITISS OF THE

INTELLIGENCE COMMUNITY

National Indications Center - /atch Committee

We have examined quite carefully the National Indications

Center, its organization, its capacity to support fully the Watch

Committee, and its relations with other departments and agencies.

We note that opinions within the community concerning NIC and its

functions vary widely - from the feeling that it should be abolished,

or combined with DIA indications center -- to the belief that it is

entirely satisfactory in its present situation. We do not fully sub-

scribe to either of these views.

The functions of the Watch Committee, and NIC, with their

terms of reference, were developed prior to the time when DIA was

created. Now DIA has developeda strong capability to provide both

early warning and indications of approaching crises to the community.

Its capacity in this regard will develop even further in the months

ahead.

We are awaro that USIB is now considering the Fitch Committee

Report. But we doubt that few if any members of that Committee

were intimately aware of the full capacity of DIA and of its future

plans. We note that General Carroll was reluctant to be drawn into

the Committee's deliberationg.

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Wo rocommend, therefore, that except as noted below, NIC

operations be allowed to continue as they are for the next three or

four months. At that time we recommend a thorough review of the

Watch Committee and NIC operations, particularly in the light of

DIA's capabilitios and activities, with a view to redefining the

reaponsibilities and functions of NIC as may then appear desirablo.

Mr. Coyne disagrees and recommends that the NIC be abolished

now, and that the DIA be assigned the national strategic warning

function and that its personnel complement be enlarged to include

representation from appropriate members of USIB. Mr. Coyne

points to reasons outlined in his memorandum to the DCI dated

Fobruary 5, 1982.

We do believe that the National Indications Center should be

properly manned and should receive both the high caliber of per-

sonnel at the proper grade and the number of personnel to perform

its function promptly and efficiently. In this connection the Depart-

ment of State has no representatives at NIC at present and the DCI

should ask the Secretary to remedy this situation immediately.

We would suggest a change in the present method of preparing

the Watch Committee report. If NIC is adequately manned, we see

no reason why it should not draft, 24 hours in advance, the weekly

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dEUKLT

Watch Committee report, circulate it to all agencies for considera-

tion prior to discussion at the Watch Committee meeting when it

could be decided upon in final form and reproduced and disseminated.

Related to the Watch Committee -- but also an important aspect

of all coordinated intelligence community reports -- we believe that

substantive disagreements should be encouraged and even spelled

out in Watch Committee reports; that NIEs and SNIEs rather than

being suppressed or covered by watered down language as is some-

times the case today, in all cases should reflect the consensus of

views of the intelligence community. If there are differing minority

views on the part of one or more agencies, including CIA, these

should be spelled out in appropriato footnotes.

CIA Relations with the Department of State

We examined the relations of CIA with the Department of State.

Several matters of concern in this area are mentioned in the section

on the DD/P. We would note that "covering" for the Agency poses

certain problems for the Department in its relations with the Congresa.

These include such items that attract Congressional interest as:

the number of officers in each Embassy, particularly the political

section; the designation oé CIA officers asL24]; the CIA role in

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!.

HET

handling State communications, etc. In these areas we recommend

close liaison be maintained with State on Congressional matters and

that whenever possible State be given a helping hand with the appro-

priate Congressional committees on these matters.

We are particularly concerned that the f 24

tions of CIA personnel [ 24

2 designa-

J, particularly [J, are no

revealing. We recommend that the Agency arrange with State to

L..

24

7 designations.

The Department of State indicated concern about the level in

CIA on which Comint policy matters are handled, and also noted that

on occasions there appears to be lack of coordination within CIA on

Comint policy matters. This factor is one of the reasons why we

recormend raising the level of Sigint policy matters to the Assistant

to the DCI for Coordination and Intelligence Community Guidance.

State's Counter Communism Office

We reviewed with some intereat the proposed creation in the

office of the Deputy Under Secretary for Political Affairs of the

Department of State of a strategy group for combatting communisin.

While the full scope of its function is as yet unclear, wa believe that

CIA should follow the developments in this office closely as its

activities will have considerable bearing on the work of the Agency.

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State's Operational Center

We reviewed with some interest the embryonic operational

center which the Department of State is developing. We found that

this is an interesting development and would obvlously have bearing

on the intelligence community.

State at White House Briefings

We recommend that in accordance with the present practice of

a representative of the Defense Intelligence Agency attending the

briefings of the White House staff by CIA, that a representative of

the Department of State also be invited to attend these meetings.

Receipt of Top Classification Meysagea

We recommend that the DCI take up directly with the President

the problem of roceiving all pertinent messaged dealing with foreign

affairs which might have any bearing on intelligence estimates or

reports, or on covert operations. We have particularly in mind

such communications as between the President and Khrushchev, etc.

We believe that it is important for the DCI to see such messages in

order to give proper guidance to the intelligence and operational

activities of the Agency.

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•

THE WHITE HOUSE

WASHINGTON

Apr11 3, 1962

MEMORANDUM FOR: Mr. Lyman B. Kirkpatrick

Inspector General

Central Intelligence Agency

In the course of our discussions as members of Mr. McCone's

Working Group on Intelligence and in our March 28 meeting with

Me see contented that I did not concur

In the

section of the draft report which we

discussed with the DCI and the DDCI.

In Iine with the foregoing, 1t would be appreciated 1f

you would:

1) Amend the second sentence of the section to read:

"With the exception of Mr. Coyne, we are fully in accord.

2) Add at the end of the section a new paragraph

reading as follows:

"Mr. Coyne does not concur in this recommenda-

tion.

He disagraes with (a) the proposed

organizational placement and title of the recommended

office, because this would perpetuate the present

Ineffective arrangement of the Coordination Office

now in existence and would not provide the recommended

office with the stature required to assist the DCI

in fulfilling his heavy responsibilities throughout

the Intelligence Community; (b) the limitations in

the functional concepts of the office, as outlined

above. Further, he does not concur in this recommenda-

tion because it does not distinguish sufficiently

the internal CIA operating functions of the DDCI

from the community-wide functions which the recommended

Office must perform 1f the DCI 1s to execute

effectively his principal mission as assigned in

the President's DIrective of January 16, 1962.

Mr. Coyne believes that if the Office 1s

established

along the lines recommended above, it will be in-

capable of effectively assisting the DCI in performing

his principal Presidentially-assigned responsibilities

of (a) coordinating and effectively guiding the total

U. S. foreign Intelligence effort; (b) establishing

necessary policies and procedures to assure adequate

coordination of foreign intelligence activities at

all levels; (c) maintaining a continuing review,

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"with the heads of the Departments and Agencies

concerned, of the programs and activitles of all

U.S.

agencies engaged in foreign intelligence

activities; and (d.) assuring efficiency and

effectiveness, and avoiding undesirable duplication

In the total foreign intelligence effort.

coyne will submit his recommendations on

subject at a later date.

I would appreciate receiving a copy of the revised report

of the Worldng Group at your earliest convenience.

3. Pshich Syra

J. Patrick Coyne

2

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APPROVED FOR RELEASE 1993

CIA HISTORICAL REVIEW PROGRAM

23 October 1962

10/25, 2

MEMORANDUM FOR: Director of Central Intelligenco

SUBJECT:

After Action Report on the Findinge

of the Working Group

This is with reference to the memorandum of 6 April

1962 which presented you with the final report of the Working

Group which you established in January to consult and adviso

on the organization and activities of the Central Intelligence

Agency. This report indicates the action which has been

taken on the findings of the Working Group, and ll no action

has boen taken the reasons therefor. The comments here

aro in the same order as they appeared in the report of the

Working Group.

Lyman B. Kirkpatrick

Executivo Director

Attachment

CC: DDCI

LBK:jrc: Retyped gmk (23 Oct.

62)

Distribution:

Orig - Addressee w/att

1 - DDCI w/att

1 ~ Exec. Dir. w/att

+- Extra

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!.

(C231

Operational Aids Unit

This recommendation was rendered inapplicable in view of the

decision not to transfer ISD to DD/R.

Deputy Chief for British Commonwealth Affairs, Western European

Division

As recommended, this position has been created and is now

occupied by Mr. John Caswell. A review will shortly ba mado to

determine the degree of control that this unit has over liaison.

War Plang

As recommended, the DDCI is giving full support to the War

Plans Group, and is assisted in this effort by the Executive Director.

Folice Programs

As recommended, CIA is giving the police program greater

support. An Agency Officer heads the police program in AID, and

he has been provided an Executive Officer by the Agency. Project

(ENDOMORPH will be transierred to the CI Staff.

Liaison with the Department of State

The DD/P has centralized the control of liaison with the Depart-

ment of State and careful records are now maintained of all discussions.

Advice to State on Black Propaganda

The Chief, CA Staff, is now charged with advising State, and

other departments where appropriate, of any black propaganda activi-

ties that might be misinterpreted by the U.S. Government if they were

presumed to be legitimately the statement of anather government.

CIA Personnel Under State Cover

The DD/P is making a thorough review of State cover directed

toward insuring that ClA personnel are not out of line in their various

allowances with their State Department colleagues.

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Assistant to DD/P for Paramilitary and Air Suppost Operations

We recommend the creation of an office in the DD/P to be

known as Paramilitary and fir Support Operations, under the

direction of an Assistant DD/P, to develop the capability for covert

paramilitary and air support operations. We suggest that the bulk

of this new organization be located at Isolation where it will have

facilities for organization and training. Such a move will also relieve

the burden on the headquarters building. We recommend that the

individual to head this organization be drawn from military service

and be a senior. Colonel or a Brigadier General with wartime para-

military experience. Having in mind the total disestablishment of

the DPD in its present form, we recommend that tha Air Support

Branch of DPD be transferred to the new Paramilitary Office of DD/P.

Domestic Division

We endorse the proposal to create a Domestic Division. We

strongly urge that the new Domestic Division utilize the Contact

Division of 00, which is to be transferred from the DD/I to the DD/P.,

as the nucleus for field work in the United States. We also believe

that this Domestic Division should take over those functions of the

Cover and Commercial Staff presently carried out by the Commercial

Group, plus all those activities of the Cover Division which involve

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all matters involving liaison with the British or with Canadian,

Australian and New Zealand intelligence services except matters

concerned with Sigint and Comsec. Further, this officer should

have full control authority over liaison exchange of information

with the British and the above mentioned Commonwealth services;

and all other componenta of the Agency, including the DD/I, should

keep this officer advised on a daily basis of liaison relations with

the British services?

War Plans

Because of the vital importance of war plans to the Agency's

relations to the Joint Chiefs of Staff, we recommend that the War

Plans Croup receive direct support from the DDCI, even though it

should remain organizationally as a part of the Central Support Staff

of the DD/P.

Police Programs

We are convinced that United States Government support to

the police in friendly nations can provide great benefits to the

United States and that some of these benefits will assist CIA in its

work. The President has recently indicated to AID that he wishes

this program to receive strong support. We believe that CIA should

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give it greater support than it has previously received. We recom-

mend that the police group in the CI Staff receive such augmentation

as is necessary, and that Project ENDOLORPH (police training

school) be transferred from the NE Division to the CI Staff.

Liaison with Department of State

We urge that the DD/P centralize liaison with the Department

of State and maintain careful records of all discussions betiveen the

Agency and State Department officials. We note that nearly every.

area division chief has a weekly meeting with his counterpart in the

Department but that under the present system there is no organized

method for keeping the central management of thé DD/P informed

of what takes place at these meatings.

Advice to State on Black Propaganda

We recommend that the DD/P develop procedures which will

Insure that other appropriate agencies of the government (Department

of State, Defense, White House and USIA) are kept appropriately

informed of black propaganda activities which otherwise might be

misunderstood and believed to be legitimately the views of a foreign

power.

We have in mind our discussions with the Department which

heard

expressed concern that the Department was unaware of certain

black propaganda activities relating to Communist China and conse-

quently was led astray.

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CLA Personnel Under State Cover

We recommend that CIA personnel under the Department of

State cover make greater efforts to truly live their cover. We believe

in this connection that the DCI should receive assurances from the

DD/P, after proper study, that CIA allowances for rents, servants

and entertainment are in line with comparable State Department

allowances.

"Legitimate" Foreign Service Cover

We recommend that the Agency more and more place people

under Foreign Service cover by the "legitimate" method of recruiting

individuals, having them take and pass the Foreign Service exams

and be commissioned in the Foreign Service ana follow through a

normal foreign Service/career. CIA should obviously keep the?

Department/advised concerning these individuals, work with the

Department on their assignments which will be mutually beneficial,

and covertly train them. By this method such individuals will be

under true Foreign Service/cover and will not only be unknown to

other intelligence services, but also to their colleagues in the

Foreign Service.

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Watch Committee report, circulate it to all agencies for considera-

tion prior to discussion at the Watch Committee meeting when it

could be decided upon in final form and reproduced and disseminated.

Related to the Watch Committee -- but also an important aspect

of all coordinated intelligence community reports - we believe that

substantive disagreements should be encouraged and even spelled

out in Watch Committee reports; that NIEs and SNIEs rather than

being suppressed or covered by watered down language as is some-

times the case today, in all cases should reflect the consensus of

views of the intelligence community. If there are differing minority

News on the part of one or more agencies, including CIA, these

abould be spelled out in appropriato footnotes.

CIA Relations with the Department of State

We examined the relations of CIA with the Department of State.

Several matters of concern in this area are mentioned in the section

on the DD/P. We would note that "covering"' for the Agency poses

certain problems for the Department in its relations with the Congress.

These include such items that attract Congressional interest as:

the number of officers in each Embassy, particularly the political

section; the designation oí CIA officera as(FSRs; the CIA role in

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handling State communications, etc. In these areas we recommend

close liaison be maintained with State on Congressional matters and

that whenever possible State be given a helping hand with the appro-

priate Congressional committees on these matters.

We are particularly concerned that the Foreign Service designa-

tions of CIA personnel under State cover, particularly ESR, are 20

revealing. We recommend that the Agency arrange with State to

cover ClA personnel equally with FSS and FSO designations.

The Department of State indicated concern about the level in

CIA on which Comint policy matters are handled, and also noted that

on occasions there appears to be lack of coordination within CIA on

Comint policy matters. This factor is one of the reasons why we

recommend raising the level of Sigint policy matters to the Assistant

to the DCI for Coordination and Intelligence Community Guidance.

State's Counter Communism Office

We reviewed with some interest the proposed creation in the

office of the Deputy Under Secretary for Political Affairs of the

Department of State of a strategy group for combatting communisin.

While the full scope of its function is as yet unclear, wa believe that

CIA should follow the developments in thia office closely as its

activities will have considerable bearing on the work of the Agency.

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