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

Department of State Intelligence

                           

90. Letter From the Secretary of State's Special Assistant for Research and Intelligence (McCormack) to Secretary of State Byrnes

Washington, April 23, 1946.

//Source: Department of State Bulletin, May 5, 1946, pp. 778-779.

Dear Mr. Secretary: The series of Departmental Orders issued yesterday,/1/ relating to the intelligence organization within the Department, provide for dismembering the Office of Research and Intelligence and transferring its functions to a group of separate research divisions under the Political Offices, and they contain other organizational provisions that I regard as unworkable and unsound. I had hoped that the compromise proposal worked out by Colonel Tyler Wood, which appeared to meet all points of substance raised by the Political Offices, would be found acceptable, and I was therefore disappointed to find that the orders as issued conformed almost exactly to the so-called "Russell Plan," proposed by the Assistant Secretary for Administration last December.

/1/For texts, see ibid., May 12, 1946, pp. 826-828. Other than the orders themselves, no record of Byrnes' decisionmaking on the matter has been found.

I realize how difficult it has been for the Secretary to decide an issue on which the Department has been so divided in opinion, in view of the enormous burden that the Secretary has been carrying. I am convinced, however, that while the plan adopted will give needed reinforcements to the Political Offices, and in that respect will be beneficial, it will make impossible the establishment of a real intelligence unit within the Department; that it will weaken the Department vis-a-vis the military components of the National Intelligence Authority, who already have the advantage of a three to one representation in the Central Intelligence Group, as compared with that of the State Department; and that it will prevent the carrying out of the long-range plans for post-war intelligence which you and I had in mind when you asked me to come into the Department.

The Department must go before the Senate Appropriations Committee within two or three weeks to present its case for restoration of the appropriations cut made by the House of Representatives, affecting the intelligence organization. Feeling as I do that the organization as now to be set up is unsound and not in the best interests of the Government, I cannot conscientiously present the case to the Senate, and I believe that the best interests of the Department and the Government will be served by my immediate resignation.

I therefore submit my resignation, with the request that you release me at once./2/ It is my hope that, by replacing me with a man who has not been a party to the internal differences of the past six months, the Department may contrive in some way to salvage the intelligence organization which it took over from the Office of Strategic Services. In spite of serious losses of personnel and many other difficulties that it has encountered since October 1, 1945, it is still an effective intelligence unit. In my opinion, because of demobilization of other intelligence units that were functioning in war time, it is the best remaining asset of the Government in the foreign intelligence field.

/2/Acting Secretary Acheson accepted McCormack's resignation on behalf of Byrnes, who was away from Washington. The text of Acheson's letter to McCormack is ibid., May 5, 1946, p. 779. See the Supplement. For Acheson's views on the controversy, see his memoirs, Present at the Creation, chapter 18.

I am grateful to you for the efforts that you have made to work out an organizational arrangement that would meet the views of all parties concerned and for the personal support and good advice that you have given me since I have been in the Department.

With all good wishes,

Sincerely yours,

Alfred McCormack/3/

/3/Printed from a copy that bears this typed signature.

91. Minutes of the Eighth Meeting, Advisory Committee on Intelligence

Washington, December 3, 1946, 4:30-5:30 p.m.

//Source: 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, Box 94. Secret.

PRESENT
Mr. Eddy, SA-E (Chairman)
Mr. Braden, A-Br
Mr. Russell, A-R
Mr. Hickerson, (for A-D)
Mr. Evans, OCL (Executive Secretary)

[Here follow agenda items 1-3 on unrelated matters.]

4. Allocation of Space in the New War Department Building

Mr. Hickerson raised the question of the proper disposition of the geographic research divisions should the geographic offices move to the New War Department Building. He felt that many advantages would result if the research divisions could be located with their geographic offices so as to facilitate close integration of work and plans. Mr. Braden felt that such an arrangement would greatly assist in tieing DRA into the operation of ARA. The Chairman indicated that the intelligence organization appreciated the force of these arguments and had already reported to the Administration that its first priority choice for a new location would be the placing of a major part of the whole organization in the same building with the geographical offices. He pointed out, however, that there were other considerations which must be kept in mind: first, a balance must be preserved between the advantages of closely associating the geographical research divisions with their offices and the necessity for the geographical research divisions to be closely associated with one another and with the coordinating and servicing elements of the intelligence organization. It would seriously diminish the effectiveness of the research divisions if they were to be widely separated from one another, from their reference and collection services, and from the coordinating functions; secondly, current developments were proving beyond dispute that a major effort was in view outside the Department to force the transfer of the intelligence research organization back to CIG. This effort would be greatly helped by any arrangement of the organization which weakened its effectiveness. For these reasons, the organization had proposed that the proper balance be maintained by moving the organization pretty much as a whole into the same building with the geographical offices.

It was AGREED that this matter was of serious importance; that the plans for moving required careful consideration; and that A-R should be requested to call together representatives of the geographic offices and the intelligence organization to explore the best available solution to the problem.

92. Memorandum From the Secretary of State's Special Assistant for Research and Intelligence (Eddy) to the Acting Assistant Secretary of State for Administration (Peurifoy)

Washington, January 27, 1947.

//Source: 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, Box 94. Confidential.

SUBJECT
Functions of the Advisory Committee on Intelligence (ACI)

As is set forth in Departmental Regulation 183.5,/1/ effective July 1, 1946, the Special Assistant, with the advice of the ACI, is charged with the responsibility of implementing the Department's intelligence objectives and policies. Under the "Russell Plan" the ACI is the bridge between the Special Assistant and the four Geographic Research Divisions, but since the resignation of Mr. Russell,/2/ as well as during preceding weeks, a series of incidents has made me question whether the ACI can continue to perform that function. The next regular monthly meeting of the Committee will fall on Tuesday, February 4, and I should like at your early convenience to talk with you about the issues involved since you will be taking Mr. Russell's place on that Committee.

/1/Department of State Bulletin, September 8, 1946, p. 471.

/2/Russell resigned as Assistant Secretary of State for Administration effective January 20.

In brief, the authority and representative character of ACI has been questioned by ARA and NEA, and instructions regarding security, approved by the ACI, have been rejected by their two Research Division Chiefs. Furthermore, in the case of one Office Director, negotiations have been initiated directly by him with the Director of Military Intelligence of the War Department with regard to an NIA Directive, which would seem to me to certainly be covered by DR 183.5-I(c).

It would not seem to me useful to reconvene ACI nor to go through the motions of securing its concurrence unless it is understood throughout the Department that the ACI has competent jurisdiction on at least three points:

(1) Supervision of the research and intelligence projects on the technical side.

(2) Common security measures applicable to all operations and personnel in Research and Intelligence, including the Research Divisions, to insure confidence of the intelligence services of other departments who will otherwise decline to distribute to us their secret materials. (In certain intelligence centers there is already a segregation of material which is kept from the State Department members on the grounds that we cannot maintain security precautions necessary to an intelligence organization.) Special security measures have been approved by ACI, but they have been rejected or ignored by certain units of our research organization. I have had no reply to the enclosed memorandum to Mr. Braden./3/

/3/Not attached and not found. At the end of the source text the attachment is identified as a memorandum from the Office of the Special Assistant to the Secretary of State for Research and Intelligence, October 18.

(3) Liaison with the National Intelligence Authority and with its member intelligence agencies on matters of positive intelligence.

Since I was appointed with the approval of Mr. Acheson to serve during the pleasure of the preceding Secretary of State, it would seem to me essential that I should make this situation known to Mr. Acheson at an early date if this office is to function at all, no matter who may replace me. In view of the intimate association of the present Department Intelligence plan with Mr. Russell's office, I would prefer to consult with you before reporting to Mr. Acheson or calling another meeting of the ACI.

William A. Eddy/4/

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

93. Memorandum From the Secretary of State's Special Assistant for Research and Intelligence (Eddy) to the Under Secretary of State (Acheson)

Washington, January 30, 1947.

//Source: National Archives and Records Administration, RG 59, Records of the Department of State, Records of the Bureau of Intelligence and Research: Lot 58 D 776, Birth of the Intelligence Organization in the Department of State. Secret.

SUBJECT
Organization for Research and Intelligence in the Department of State

I. The Problem

To realign the organization under the Special Assistant to the Secretary for Research and Intelligence so that he may more effectively discharge his responsibilities.

II. Conclusions (See Appendix I for discussion)/1/

/1/Not printed. See the Supplement.

1. The Research and Intelligence organization has operated since July 1, 1946,/2/ under the "Russell Plan." The principal feature of that plan is the division between the Special Assistant and the Geographic Offices of authority over the basic research activities of the organization. The effective operation of an intelligence organization under such conditions has proved unworkable and impracticable.

/2/For the regulations giving effect to the Russell Plan, see Department of State Bulletin, September 8, 1946, pp. 465-471. These regulations revised and amplified an earlier set of orders that had entered into force on May 1, 1946; see ibid., May 12, 1946, pp. 826-828.

2. The Special Assistant is charged with the responsibility to the Secretary for planning and implementing a positive foreign intelligence program and for maintaining all interdepartmental liaison in that field with other intelligence services. In order to accomplish that mission, he should have specific responsibility for:

(a) The control and direction of intelligence research and the collection and dissemination of intelligence materials. The Office of the Special Assistant should receive all intelligence materials coming into the Department which, in his opinion, are necessary for the preparation of the most complete, accurate and timely intelligence.

(b) The preparation and dissemination of daily or periodic intelligence summaries, as required.

3. The Special Assistant should also have the authority to adopt such security measures within the intelligence organization, in addition to departmental security regulations, as may be required by the nature of the work and to assure effective cooperation from other intelligence services.

4. The Advisory Committee on Intelligence, established to assist the Special Assistant, should be reconstituted so as to be more represent-ative. It should be composed of the Special Assistant, as Chairman; the Directors of the two Offices subordinate to him; the Office Directors or their representatives from the Geographic Offices; the Director of SPA or his representative; and a representative designated by each of the following: A-B, A-T, and A-P.

5. The Subcommittee on Programs and Priorities of the Advisory Committee on Intelligence should be dissolved, since its concept derived from the theory of the "Russell Plan" and its important functions should more properly be performed within the intelligence organization.

III. Recommendations

It is recommended that:

1. The geographic research divisions (DRA, DRE, DRF, and DRN) be transferred from the Geographic Offices to the organization under the Special Assistant.

2. Departmental regulations be amended and appropriate orders issued to implement the conclusions stated above and to provide the organization indicated on the following chart./3/

/3/Not printed. See the Supplement.

William A. Eddy

94. Memorandum From the Acting Assistant Secretary of State for Administration (Peurifoy) to the Under Secretary of State (Acheson) and Secretary of State Marshall

Washington, January 31, 1947.

//Source: National Archives and Records Administration, RG 59, Records of the Department of State, Records of the Office of the Assistant Secretary of State for Administration, Subject Files 1944-1947: Lot 53 D 28, Box 11. Secret. A handwritten note on the source text by Acheson reads: "I strongly recommend approval of the attached proposal. D.A." At the bottom of the source text Marshall wrote: "O.K. G.C.M."

At my request, Colonel Eddy prepared the attached plan/1/ for the reorganization of the intelligence activities in the Department. I assigned a man from my staff to work with Colonel Eddy.

/1/Not found, but presumably the same as or similar to Document 93 or the implementing memorandum cited in footnote 2 below.

I recommend the approval of this plan by you and the Secretary. If this is approved, it might be desirable to call the members of the Staff Committee to meet in your office and inform them of the Secretary's decision as you did on the budget situation./2/

/2/See the February 5 memorandum from Marshall to Peurifoy on Organization for Research and Intelligence in the Supplement. (National Archives and Records Administration, RG 59, Records of the Department of State, Records of the Bureau of Intelligence and Research: Lot 58 D 776, Birth of the Intelligence Organization in the Department of State)

JEP

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From the Strategic Services Unit to the Office of Special Operations