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Foreign Relations of the United States 1945-1950 Emergence of the Intelligence Establishment Department of State Washington, DC

From the Strategic Services Unit to the Office of Special Operations

                           

110. Letter From the Director of Central Intelligence (Souers) to the Director of the Federal Bureau of Investigation (Hoover)

Washington, April 19, 1946.

//Source: Central Intelligence Agency Historical Files, HS/CSG-2227, Job 83-00739R, Box 2, Folder 3. Secret; Personal.

Dear Mr. Hoover: With reference to your letter of April 16/1/ concerning your Special Intelligence Service in the Western Hemisphere, I have been informed at the White House that the President has passed the word to the Congressional committee that it is his desire that this activity be continued by you. I have also been informed by members of the Appropriations Sub-Committee that the item covering these activities will be inserted in your Appropriations Act in an appropriate manner.

/1/Not found.

This should clear up the confusion which developed.

With all good wishes,

Sincerely,

Sidney W. Souers/2/

/2/Printed from a copy that bears this typed signature.

 

111. Memorandum From the Assistant Director of the Federal Bureau of Investigation (Ladd) to the Director of the Federal Bureau of Investigation (Hoover)

Washington, May 14, 1946.

//Source: National Archives and Records Administration, RG 263, Records of the Central Intelligence Agency, Troy Papers, FBI Documents. No classification marking.

SUBJECT
National Intelligence Authority

I attended another meeting of the Central Intelligence Group of the National Intelligence Authority on the afternoon of May 14, 1946. On this occasion, as I advised you in my memorandum of May 13, 1946,/1/ a preliminary draft was drawn up of an interim agreement for the handling of the intelligence coverage for the world on an interim basis. In this directive as presently drawn, it is recommended that those activities of SSU in Central Europe, but not the Balkans, be transferred in toto to G-2 of the Theater Command for the use of the military government.

/1/Neither this memorandum nor the draft "interim agreement" subsequently mentioned have been found.

It is further provided that G-2 will cover world-wide intelligence on an interim basis, this to be decreased and turned over to the FBI at such time as the FBI is ready to assume world-wide intelligence coverage.

It is provided that ONI shall have world-wide coverage for the purpose of obtaining naval intelligence material.

It is provided that G-2 have world-wide coverage for obtaining military intelligence.

It is proposed that the FBI continue in the Western Hemisphere for the fiscal year 1948 as at present, covering economic, financial, political, and subversive matters, and that it expand its operations to world-wide coverage at the earliest practical date, and that a new Delimitation Agreement be drawn up between ONI, G-2, and the FBI to be concurred in by the Director of the National Intelligence Authority, delimiting and removing G-2 from all except the military intelligence field at such time as the FBI is able to assume jurisdiction in any given area.

It is also provided that the intelligence activities be coordinated by a head to be designated by the Director of the National Intelligence Authority which is to be concurred in by the Directors of the FBI, G-2, and ONI, and the head of Foreign Correlation of the State Department (this would be Fred Lyon), that this head when appointed should be assisted by a subcommittee on a permanent basis representing G-2, ONI, the head of Foreign Correlation of the State Department (Fred Lyon), and an Assistant Director of the FBI./2/

/2/At this point there is a marginal note in Hoover's handwriting asking "What is to be the purpose of this?" and suggesting that "just another position" or "more 'brass'" was being created. Hoover added that he thought Souers was supposed to be in charge.

A further meeting of the Central Intelligence Group is planned for 3:30 PM, Wednesday, May 15, 1946, for the purpose of going over the final draft of this proposal. It is pointed out in this proposal that the reason for the urgency is the fact that the various agencies will have to prepare in the immediate future their budget requests for 1948. It is also set forth in this directive that the activities of SSU shall be completely liquidated throughout the world; including their Washington, D.C., staff, at the earliest practicable date, within 90 days if possible, and that the files of X-2 shall be turned over to the nearest American Consulate inasmuch as the State Department advises they are valuable for reference purposes in granting visas. The files in Washington are to be turned over to the Central Intelligence Group for such disposal as the Group will deem necessary after a study of these records.

As a matter of interest, Colonel Cunningham stated at this meeting that on the Monday following the newspaper article by Stuart Alsop relative to the directive liquidating SSU and recommending the FBI for world-wide coverage, Jimmy Murphy of SSU was fired. The reason for this was that it had been learned that he had arranged for a subordinate official of SSU to plant the story with Alsop in order that that article might be written.

There is no use providing for FBI to take over or assume world-wide intelligence coverage for we are not going to do it. The most I will agree to now is to stay in the Western Hem. for 1 year. I am more & more certain that this is a project we must get out of. The trouble we had in Germany; Japan; & refusal of Souers to supply us with daily Int.[elligence] Survey; & Inglis protest re. Amer. Mag. article based on an agreement entered into with British unbeknowing to us--all tend to show what a headache we would have. We would be carrying most of the work with none of the full authority to get it done properly./3/

/3/The last paragraph was handwritten by Hoover.

 

112. Memorandum From the Director of the Office of Controls (Lyon) to the Chief of the Division of Foreign Activity Correlation (Neal)

Washington, July 1, 1946.

//Source: National Archives and Records Administration, RG 59, Records of the Department of State, Intelligence Files, Bureau of Administration, 1942-51: Lot 79 D 137, Folder SSU, Box 2. Secret.

Jack:

I met with General Vandenberg/1/ the afternoon of June 28. During the conversation the subject of cover for SSU came up.

/1/Vandenberg became Director of Central Intelligence June 10.

The General told me he was the first to recognize the dangers inherent in any system of State Department cover. He said, however, that in his opinion there would be several cases where it would be practically imperative to have such cover. He told me he would see to it that the requests for cover were kept to a minimum. He suggested that he be permitted to make all such requests directly to me rather than through any other channel in the Department. I explained to him the difficulties we had encountered within the Department in obtaining agreement on cover. He seemed to be aware of these complications and obstacles.

He told me he had very concise ideas concerning the organization that would be required to handle the CIG work. His plans call for the complete liquidation of OSS but he intends to use certain of the talent developed by them during the war. At the moment, it is contemplated that SSU will be operated by CIG. In other words, this is a departure from the original plans for CIG, i.e., they are to become an operating as well as a coordinating agency. Of particular interest was his statement to me that he intended to use to a greater extent the Office of Controls and FC in particular, rather than go through some of the other channels that had been established by Colonel McCormack.

I give you the above for your information and for discussion with me when we get together after the leave period.

 

113. Letter From the Director of Central Intelligence (Vandenberg) to the Director of the Federal Bureau of Investigation (Hoover)

Washington, July 3, 1946.

//Source: Central Intelligence Agency Historical Files, HS/CSG-2227, Job 83-00739R, Box 2, Folder 3. Top Secret.

Dear Mr. Hoover: I deeply appreciate your cooperation in expressing approval of my proposed N.I.A. Directive in your letter of 2 July./1/

/1/Not found, but quoted in full in Ladd's July 22 memorandum to Hoover. (National Archives and Records Administration, RG 263, Records of the Central Intelligence Agency, Troy Papers, FBI Documents) See the Supplement. The proposed NIA Directive is National Intelligence Authority Directive No. 5, Document 160.

With reference to your comments on the statement contained in the Discussion to N.I.A. 4, you will note that it was amended to read as follows:

"This does not, of course, preclude the use of specialized departmental personnel under rigid central control as mutually agreed to by the Director of Central Intelligence and authorized departmental officials."

This amended version was intended to clarify the meaning of the sentence in view of the point which you raised your letter of 25 June./2/ It is my intention to employ in the operation in question the best qualified personnel from all possible sources. It is therefore entirely conceivable that I would like to use on specific missions specially qualified personnel of Government departments other than State, War and Navy. I realize, however, that any such arrangement would have to be agreed to by the responsible officials of those departments, as indicated in the above amended sentence. I hope that this amendment clarifies the meaning to your satisfaction.

/2/Not found, but quoted in full in Ladd's July 22 memorandum to Hoover; see footnote 1 above.

With reference to the second paragraph of your letter of 2 July, I am very pleased to concur in your offer to withdraw from Central and South America provided you are willing to postpone withdrawal until the Central Intelligence Group is adequately organized and staffed so that we may arrange an orderly transfer with a minimum of interruption. As evidenced by N.I.A. support for your 1947 budget for this activity, it is anticipated that this will involve continued coverage of that area by you for the better part of that fiscal year. With your cooperation to this extent, I am sure that we can work out an orderly transition. I also hope to discuss with you at some later date the possibility of my utilizing the services of some of your experienced personnel.

With kindest personal regards, I am

Very truly yours,

Hoyt S. Vandenberg/3/
Lieutenant General, USA

/3/Printed from a copy that indicates Vandenberg signed the original.

 

114. Memorandum by the Director of Central Intelligence's Executive (Wright)

Washington, July 11, 1946.

//Source: Central Intelligence Agency Historical Files, HS/CSG-2154, Job 83-00739R, Box 3, Folder 19. Secret. The memorandum is addressed to "All C.I.G. Personnel Concerned."

SUBJECT
Activation of the Office of Special Operations

REFERENCE
N.I.A. Directive No. 5

1. The Office of Special Operations is activated this date.

2. This Office will be responsible for the performance of the functions assigned to the Director of Central Intelligence in paragraph 4-a of N.I.A. Directive No. 5./1/

/1/Paragraph 4-a of NIA Directive No. 5 made the Director of Central Intelligence responsible for the "Conduct of all organized Federal espionage and counter-espionage operations outside the United States and its possessions for the collection of foreign intelligence information required for the national security."

3. The Office of Special Operations will be organized and operated as directed by the Director of Central Intelligence.

4. Colonel Louis J. Fortier, USA, is relieved from duty as Assistant Director and Acting Chief of Operational Services and assigned to the Office of the Director pending relief from assignment to the Central Intelligence Group.

5. Colonel Donald H. Galloway, USA, is announced as Assistant Director for Special Operations in charge of the Office of Special Operations.

6. Captain William B. Goggins, USA, is relieved from duty as Assist-ant Director and Acting Chief of the Central Planning Staff and is assigned as Deputy Assistant Director for Special Operations.

7. Mr. Kingman Douglass is relieved from duty as Assistant Director and Acting Deputy Director and is assigned as "B" Deputy for Special Operations.

8. The following personnel are assigned to duties as indicated below:

Commander George B. McManus, USNR, Office "B" Deputy for Special Operations
Mr. Richard H. Crowe; Office "B" Deputy for Special Operations
Mr. Walter Pforzheimer, Administrative Division
Miss M. Gertrude Dove, Administrative Division

For the Director of Central Intelligence:

E.K. Wright/2/
Colonel, GSC

/2/Printed from a copy that indicates Wright signed the original.

 

115. Letter From the Director of Central Intelligence (Vandenberg) to the Director of the Federal Bureau of Investigation (Hoover)

Washington, July 19, 1946.

//Source: Central Intelligence Agency Historical Files, HS/CSG-2227, Job 83-00739R, Box 2, Folder 3. Top Secret. The letter is dated July 19, 1946, which has been changed by hand to July 22. The latter date, in turn, has been annotated by hand, "must be [July] 19."

My Dear Mr. Hoover: I acknowledge receipt of your letters of July 8/1/ and July 15, 1946./2/

/1/Not found, but quoted in full in a July 22 memorandum from Ladd to Hoover; see footnote 1, Document 113.

/2/Not found.

I appreciate very much your offer of assistance and the suggestion that we work out immediately a program for the transfer of secret intelligence responsibilities in Central and South America. Accordingly, I designated certain officials, who have conferred with Mr. E.A. Tamm on 18 July, to discuss the general policies for this transfer, the details of which will be developed in subsequent conferences./3/ It is understood that Mr. Tamm will furnish the names of your representatives, and designate the time when these conferences can commence.

/3/See the July 18 memorandum from Galloway to Vandenberg and a July 17 memorandum from Galloway to Tamm (both in Central Intelligence Agency Files, HS/CSG-2227, Job 83-00739R, Box 2, Folder 3) in the Supplement.

In the discharge of its intelligence functions, FBI has acquired many advantages which will facilitate uninterrupted continuance of intelligence operations. Since our immediate aim is to relieve FBI at the earliest possible date, I believe it essential that the accomplishments of FBI in gathering intelligence information, and administrative facilities be made available to CIG insofar as is practicable. With this principle, I am certain that I have your agreement and cooperation.

Since FBI has the authority and responsibility to conduct intelligence operations in this area until June 30, 1947, unless previously relieved by CIG, I recommend that your field staff be maintained at the level you determine necessary for operations until we advise that withdrawal is feasible. As agreed, I have designated representatives who will study existing FBI coverage and collaborate with your own officials in devising an orderly detailed plan for transfer. It is my recommendation that FBI personnel should remain at each field station for a time after the arrival of my representatives in order that the successors may enjoy the benefits of the Bureau's experience in each country.

Copies of intelligence reports in the field and in Washington, prepared by the FBI, would be of the greatest value to CIG. It was agreed that field reports would be turned over to my representatives. I am confident that specific reports in your Washington Office will be made available to me whenever we consider it necessary. Our field officers should also be acquainted by your special agents with local contacts and sources of information which you have developed, and arrangements worked out for possible further utilization of these persons. Your advice on the handling of such informants, and safeguards against untrustworthy individuals, will be greatly appreciated. It is understood that these details are agreeable to you.

Administrative facilities now existing in the field will be of considerable advantage to the continuance of operations. I refer to office furniture and equipment, vehicles, radio communication apparatus, and the like. To replace such equipment would entail delay which would be difficult to justify. It is understood that such a transfer is agreeable to you except in the case of photographic equipment, and I concur in your retention of this apparatus. I will also arrange replacement in kind locally for the radio communication apparatus which you will leave in the various stations, as agreed upon.

With regard to your letter of July 15, 1946, I request that you reconsider the withdrawal of your personnel in the Dominican Republic and Costa Rica. It would be most unfortunate to leave these posts vacant even for a short time. I am sure our representatives can devise an early relief for these particular posts and I am confident you will agree to this.

In outlining the general policies and agreements herein, I have stressed the principle of orderly withdrawal without hiatus, bearing in mind our several responsibilities to the Government in this important work. You and your representatives have been most cooperative and I desire to express my sincere appreciation.

With all good wishes,

Sincerely yours,

Hoyt S. Vandenberg/4/
Lieutenant General, USA

/4/Printed from a copy that bears this typed signature.

Continue with Document 116