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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

                           

116. Letter From the Director of the Federal Bureau of Investigation (Hoover) to the Assistant Secretary of State for American Republic Affairs (Braden)

Washington, July 22, 1946.

//Source: National Archives and Records Administration, RG 59, Records of the Department of State, Decimal File 1945-49, 101.5/7-2246. Personal and Confidential.

My Dear Mr. Braden: I am informed that a circular wire was sent to all Ambassadors in Latin America by the State Department concerning the plans of the Central Intelligence Group for taking over intelligence coverage in Latin America and the withdrawal of the FBI from that field./1/ I have noted that the Ambassadors were informed that in view of the forthcoming taking over by the new organization on a world-wide basis, it is my opinion that all FBI personnel be withdrawn from Latin America. I wish to advise that this is not entirely accurate. When the Federal Bureau of Investigation secured its appropriation for the operation of the Special Intelligence Service in Latin America during the fiscal year 1947, the Central Intelligence Group did not have a field operating unit and it was not understood that they planned to set up such a unit. Upon learning of the issuance of the directive by the National Intelligence Authority authorizing the Central Intelligence Group to set up a field force for the purpose of securing intelligence on a world-wide basis, I wrote General Vandenberg, the head of Central Intelligence, inquiring as to whether the Federal Bureau of Investigation should withdraw from the Latin American Intelligence field. General Vandenberg advised that it was the desire of the Central Intelligence to take over the Latin American coverage and it was, of course, necessary for me to make immediate plans for the withdrawal of the FBI personnel now in Latin America./2/

/1/Not found.

/2/Document 115.

I have also noted that the Ambassadors were informed by the State Department that a gradual transfer is being proposed of intelligence coverage from the FBI to the CIG, perhaps with absorption of some of the present FBI personnel into the new Central Intelligence organization. I must advise that there is no understanding or agreement with regard to the transfer of FBI personnel to the CIG and I cannot acquiesce in any such transfer as there is an urgent need for the trained personnel in Latin America in connection with the discharge of FBI responsibilities within the United States.

With best wishes and kind regards,

Sincerely yours,

J. Edgar Hoover

117. Memorandum From Acting Secretary of State Acheson to the Members of the National Intelligence Authority

Washington, August 5, 1946.

//Source: Central Intelligence Agency Historical Files, HS/CSG-2227, Job 83-00739R, Box 2, Folder 3. Top Secret. Drafted by E.O. Briggs. Covered by an August 5 note signed with Acheson's typed initials, addressed to Secretaries Forrestal and Patterson and Admiral Leahy, asking that the memorandum be discussed at the NIA meeting on August 7. The covering note also contains a footnote stating that a copy of the memorandum was given to the CIG Assistant Director for Special Operations by Assistant Secretary Braden on August 6.

SUBJECT
Replacement of FBI Personnel in Latin America by Personnel of the new Central Intelligence Group

Federal Bureau of Investigation agents who since 1940 have been performing security intelligence functions in Latin America are scheduled to be replaced by personnel of the now Central Intelligence Group under General Vandenberg. A schedule (copy attached)/1/ has been drawn up by the CIG for discussion with Mr. Hoover, calling for progressive assumption of intelligence functions between February 15 and May 15, 1947. In the meantime, however, orders have been transmitted by the FBI directing that the respective offices be closed and FBI personnel be withdrawn.

/1/Not found attached to the source text but probably the same as the schedule attached to the letter from Vandenberg to Braden, July 29. (Ibid.) See the Supplement.

There is grave danger in this situation that the excellent FBI organization in Latin America may disintegrate before it can be taken over by new personnel of the CIG. This would be a major blow to the effectiveness of our security intelligence work in the Latin American field, from which it might take us many years to recover.

Since the withdrawal movement started, messages of concern, apprehension or alarm have been received from every American Ambassador in Latin America, testifying to the excellent work accomplished since the establishment of the Legal Attaché service of the FBI in Latin America, and recommending with the utmost urgency that the change-over be gradual and orderly. The Ambassadors have in particular recommended that no FBI personnel be withdrawn until successors have arrived and have had sufficient time and opportunity to familiarize themselves with the work.

The Department of State shares in every respect the views expressed by our Ambassadors in the field. When a similar step was contemplated last year, Secretary Byrnes sent a letter (Top Secret, November 30, 1945--copy enclosed)/2/ to the then Director of the Bureau of the Budget, in which he stated:

/2/Not found.

"The situation is so serious...that I recommend as strongly as I can the immediate provision of sufficient funds to enable the Federal Bureau of Investigation to maintain its security intelligence service in the other American republics until a definitive decision shall have been taken on the over-all integrated intelligence plan and that plan put in effective operation." (Underscoring supplied.)/3/

/3/Printed here as italics.

The integrated plan referred to by Secretary Byrnes has now been adopted, but it has not yet been put "in effective operation". In order to safeguard the existing organization and to provide for an orderly transition, it is urgently recommended that a Presidential directive be sent to the Federal Bureau of Investigation, covering the following points.

1) In effecting the transfer of responsibility for security intelligence operations in Latin America from the Federal Bureau of Investigation to the Central Intelligence Group, it is essential that the turnover be orderly and that the existing FBI intelligence organization, together with its facilities, equipment and records, not be impaired.

2) No FBI personnel now serving in Latin America should be withdrawn until after replacement CIG personnel have arrived. There should then be a period of time, deemed by the American Ambassador concerned to be sufficient, for the new personnel to familiarize themselves with the nature, scope and details of the work, prior to the departure of FBI personnel.

3) In some cases, present FBI personnel may desire to transfer to the CIG. This should be facilitated, and the opportunity should be afforded for all such personnel considered by CIG to be qualified to transfer to the CIG rolls.

I consider the foregoing to be of the utmost urgency and importance in connection with national security.

118. Minutes of the Fifth Meeting of the National Intelligence Authority

Washington, August 7, 1946, 10:30 a.m.

//Source: National Archives and Records Administration, RG 218, Records of the Joint Chiefs of Staff, Leahy Papers, No. 132. Top Secret. The meeting was held at the Department of State.

PARTICIPANTS

Members Present

Acting Secretary of State Dean Acheson, in the Chair
Secretary of War Robert P. Patterson
Secretary of the Navy James Forrestal
Fleet Admiral William D. Leahy, Personal Representative of the President
Colonel Donald H. Galloway, USA, representing the Director of Central Intelligence

Also Present

Assistant Secretary of State Donald Russell
Assistant Secretary of State Spruille Braden
Colonel William A. Eddy, Special Assistant to the Secretary of State for Research and Intelligence
Colonel Charles W. McCarthy, USA
Captain Robert L. Dennison, USN

Secretariat

Colonel Donald H. Galloway, USA, acting for Mr. James S. Lay, Jr., Secretary, N.I.A.

1. Withdrawal of F.B.I. Representatives From Latin America

Mr. Russell stated that the Department of State was very much concerned over the intention of the Federal Bureau of Investigation to withdraw its representatives from Latin America prior to the time that the personnel of the Central Intelligence Group could properly replace them./1/ He outlined the understanding of the Department of State that the F.B.I. was obligated to remain in Latin America until June 30, 1947, if necessary.

/1/See Document 117 and the minutes of the third meeting of the Department of State Advisory Committee on Intelligence, August 6, in the Supplement. (National Archives and Records Administration, RG 353, Records of Interdepartmental and Intradepartmental Committees--State Department, Lot File No. 122, Records of the Secretary's Staff Committee 1944-47)

Admiral Leahy indicated that that was the understanding of the National Intelligence Authority, and he was surprised to learn that the F.B.I. was withdrawing its representatives from the Dominican Republic and Costa Rica by August 16. He inquired as to whether or not General Vandenberg had been informed.

Colonel Galloway stated that General Vandenberg had been informed and that he had requested the Director of the F.B.I. to reconsider his decision and to retain his personnel until the C.I.G. representatives could adequately replace them. However, Mr. Hoover had informed General Vandenberg that this was impracticable.

Mr. Braden stated that he had made efforts to induce the F.B.I. to keep its personnel in these two countries without avail, and that he had also been informed, on August 6, that the F.B.I. was contemplating withdrawing their personnel from Haiti, El Salvador, and Tegucigalpa on 30 September.

Colonel Galloway informed the N.I.A. that the C.I.G., by withdrawing an operative from a European post, was prepared to send him immediately to Costa Rica to replace the F.B.I. agent being withdrawn from that locality; that the Department of State had been advised to this effect, and that the only thing that was preventing the departure of this C.I.G. operative was the processing of his papers by the Department of State.

The National Intelligence Authority:

Directed the representative of the Central Intelligence Group to draft a letter, for the signature of the members of the Authority, to the Attorney General, requesting him to direct the F.B.I. to retain its personnel in the Latin American countries to which presently assigned until C.I.G. personnel could properly replace them. It was also desired that a period of turnover be provided for so that the new organization could be properly oriented and be given contacts in each country.

The meeting adjourned at approximately 11:00 a.m.

119. Draft Letter From President Truman to Attorney General Clark

Washington, August 7, 1946.

//Source: Central Intelligence Agency Records, Job 83-00764R, Box 1, Folder 5. No classification marking. According to Document 122, the letter was drafted by Secretary to the National Intelligence Authority Lay and approved by all members on the understanding that it would be sent if necessary. It appears that the draft was never used.

Dear Mr. Attorney General: Under date of August 8, 1946, the members of the National Intelligence Authority communicated to you a request that the Federal Bureau of Investigation personnel presently charged with intelligence coverage in Latin America be retained at their posts until the representatives of the Central Intelligence Group can take over in an orderly and efficient manner./1/

/1/Document 120.

It is my desire that in the national interest this request be granted.

Sincerely,

Harry S. Truman/2/

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

Continue with Document 120