Created: 1/9/1961

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Gordon Gray

Special Assistant to the President

Sixth Report to the President by the President's Board of Consultants on Foreign Intelligence Activities dated0 (Recommendation on' "Organization and Management of CIA's Clandestine Services")

Memorandum for Director of Central Intelligence, same subject, from Mr. Cordon Gray, dated0

compliance with yourubmit the followingcompilation of my previous reports on the varioushave been taken In response to the two recommendations made

by the Board on8 and As you requested, the following compilation la so arranged as to identify those actions which were taken or conaidered in connection with the Third Report of the Board as distinguished from action* which were taken or considsred in connection with the Sixth Report of the Board.

Third Report to the President by the President'sConsultants on Foreign Intelligence Activities, dated Octoberand presented to the President onollowing recommendation:

"The present mission of the Plana Group of the CIA be reviewed with consideration given to relieving that Groop



of, and placing elsewhere In the Agency, theor the review ofeporting on nd evaluating) the Political,nd Para-Military operations of the Agency,or the formulation of the intelligencend recommendationa apon which the plans for such operations are baaed. "

The text of the report of8 to the Preaideat explained aome of the reasoning of the Board resulting in this This report referred to "some of the virtually autonomous functions assigned to thisnd atstea, "From evidence we have seen, it is our feeling that within this frame of reference, the Plana Group (for the Agency) may be incapable of making objective appraisals of its own Intelligence Information as well aa of its own operations when it ia involved in Cold War activities which are the aubjecte of ita own reports. We are concerned about the implications of this not only because of possible impacta on the programs of the Agency but, more importantly, because of the influenced which may be brought to bear on foreign policy determinations which, in large meaaure, may be baaed upon Agency reporting."

The Board of Consultants may have felt that therereater degree of autonomy or independence possessed by the Deputy Director for Plans (Plana Group) than actually existed. Final reaponsi-bility and authority for all activltiea of the Clandestine Servicea rest with me as Director of the Central Intelligence Agency. Itact that theay take action on behalf of the Director, but in the case of operations under2 only after the necessary policy guidance has been obtained from2 Committee.

It ia particularly important to note that before CIA Cold) activities are initiated all available Intelligence, including National Intelligence Eatlmatea, which are produced by the Intelligence Community, is taken into account. Further, while it ia true that in covertajor source of information on the accomplishments of the project may be clandestine, we analyze all available information from all sourcea to guard against subjectivity or aelf-aerving reports.

The present Deputy Director (Plans) aaaumed his position on Januaryhortly after the Third Report waa submitted to the Preaident. He at onceomplete review of the mlaslon and organization of the Clandestine Servicea. In concert with this the

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Inspector General of the Agency waa engaged ln reviewing the overall organization of tha Clandestineartherrogram for Greater Efficiency within the Agencyhole in order toontinuing effort to Improve Its organization and method* of operation, rogram and other aspects of the Board's Third Report were discussed at the meeting of the Boardon esult of these severalumber of organizational changes were made and many others were considered but rejected for various valid reasons. The main objective of these changes was to improve the efficiency of the Clandestine Services. ew Assistant Deputy Director (Plans) for Psychological and Paramilitary Operations was appointed to assist then the operational direction of activities in these functional fields. An Operational Services grouping was created, combining and centralizing the direction of several elements which perform functions of common concern to all the Operating Divisions and Staffs. The Inapection and Review Staff,as abolished and the Inspector General of CIA made solely responsible for the comprehensive review of the activities and operations of the Clandestine Services, reporting directly to me.

7. The planning system within the Clandestine Services was revised soreater distinction is made between operational planning directives and budgetary estimates. The revised system calls for an initialperational plan containing guidance and direction for the operating divisions and etaffa for the forthcoming fiscal year. From this the divisions and staffs can prepare their more detailed Operational Programs which go forward for review and approval by the Project Review Committee which reports directly to me. The budget and fiscal requirements are generatedy-product of these Operational Programs, Finally, Related Mission Directives, also based on the Operational Plan and Programs and the particular situation in the area concerned, set forth more precise and realistic objectives and tasks for each field station.

8. In addition to the above these reviews of the mission and organization of the Clandestine Services highlighted the following aspects of its work which merited further attention and study and on which action has been or is being taken;

Agency's responsibility for the coordinationclandestine activities abroad

of more authority ta the field

Deotmtttti etion ia PrtservcifM tttjotfi t


emphasis on political action inareas

of our capability for "covert

records mechanization.

In this major effort to improve the organization of the CS but most especially the methods andway business is transacted--thend his Staff have kept in mind the recommendation of the Board quoted above. Several of the changes made are responsive to

this recommendation.

9. The second part of the Board's recommendation waa concerned with the location of responsibility for the formulation of intelligence estimates and of recommendations upon which plana for operations are based. It suggested that such responsibility not be located in that portion of the Agency which is responsible for planning operations,

problem of insuring the provisionalid andbaae for operational planning purposes has been givenwithin CIA during the development of theplanning cycle. The Board'sael, has been metprocedures described below.

for Psychological, Political and Paramilitaryla not based on intelligence provided solely by the DD/P. The

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primary source of intelligence for planning purposes Is the Offlosj of National Estimatea (ONE). Pre sentrocedures provide for the use of ONE guidance throughout the entire planning cycle. TheSerrlces General Plan, DD/P's basic planning document, derives from current NTE'a the contingencies against which clandestine activities tnuat be directed. Moreover,projects are tested againstNEE's or,urrent or relevant NEE Is not available or time is sufficiently urgent tooordinated NEE impoaaible, an ONEmemorandum is obtained.

There are further independent checks of PP/PM projecte internally within CIA. Such projects are generally reviewed by the Project Review Committee which ia presided over by the Director or Deputy Director of CIA and la widely repreaentative of the Agencyhole, including the Deputy Director for Intelligence, the Deputy Director for Support, and the Inspector General.

Significant PP/PM projects having political import and involving substantial expenditureshorough review and concurrence by

the Department of State and by2 group, before final approval by the Director. Such concurrence ia sought on the basis of relevantavailable to the Agencyhole. While PP/PM projects may be recommended by the DD/P, action thereon in all significant caaea ia not possible until internal and external procedures, aa described above have been satisfied. Thus action is not taken on intelligence orfrom thelone.

14. The Sixth Report to the President by the President's Board of Consultants on Foreign Intelligence Activltiea, datedthe following comraenta and recommendation:

"Organization and Management of CIA's

"Based upon an exchange of correspondence between the National Security Council and this Board ine have continued to follow developments relating to needed improvements in the organization and management of CIA'a Clandestine Servicea. ew significant changes have been made in this area In recent months, we believeay can be found to organize these Services along more simplified and efficient lines. While we appreciate that the miaaiona assigned to the Clandestine Servicea are


complex, we axe hopeful that, through the continuing studies being made by OA's Deputy Director /Plana, these Services will be organised ln such manner as to eliminate unnecessary duplication of effort and achieve increaeed effectiveneaa.

15. oncurred with theae com mef the Board andthe continuing studies being made by thef thethe Clandestine Services and the methods and procedurea employedout the mission of the CS had aa principal objectives theof unnecessary duplication and the achievement of increaaed As noted by the Board and aa reported above in thisthe CS were

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these organizational changes, revision and simplification of certain basic procedures, and clarification of the functions andof both staff andmponents we made progress toward our objectives. It is important to realize that thisontinuing process and one which must be carried outrogressive basis with the least possible disruption of current activities.

The* CS accomplishes its mission throughrescribed geographical area and through other components responsiblerescribed function without geographical limitations. This approach is required because of the complexity of the tasks and broad, interests of the CS. Under these arrangements it is inevitable that some duplication exists but it should not be Inferred that all suchis unnecessary. We make every effort to reduce duplication to that which is unavoidable if we are to assure that all our responsibilities are dischargedompetent and secure manner.

The rolea of the Special Staffs recently have been further clarified and delimited with the objectiveof eliminating duplication and relieving the staffs of the responsibility for any activity which can properly be performed in the operating diviaiona. m satisfied that the Special Staffs have unique and important functions of common concern

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aad world-wide application thai can not be acccaxrpllshed ln tha ating dlvlaloaa. It la as* course essetttial that thee* functions ara cnreraUy Identified and that mil' officers of the CS claariy understand precisely which activities axe the responsibility of th* Special Staff a. To accomplish this the Deputy Director (Plans) is now revising th* functional statements of the Staffs which will concentrate on their four basic functions, vis.:

activities including certain forms ofpromulgation of doctrine, development ofand the'provision of expert advice andthe several functional fields,

plans for and assisting in thefunctional programs involving activities ln twogeographic areaa.

in the evaluation of the productionof the CS.

18. As an additional measure to prevent poasible duplication the Deputy Director (Plans) further modified the staff organisation in the area divisions to eliminate separate Foreign Intelligence, Counter Intelligence and Covert Action sections. These divisions now have centralized operations staffs.


30. In order to make the moat effective um of owr reaonxces In the performs.sic* of cartalo important functloaa the Deputy Director (Plans) Is developing standing operating procedural which will be followed for specific activltiea. Planning, for example, willoint endeavor of the Projects and Programs Group, the Special Staffs, and the Operating Divisions under the general supervision and guidance of the Senior Planning Officer. This planning community will Insure that the talents of appropriate officers and the capabilities of all interested components of tha CS are brought to bear on specific problems. appropriate operating procedures will delineate tha capabilities of properly qualified officers and components in the research and evaluation functions. This is an economical way to do the Job since it will permit effective planning, research, evaluation, etc. withoutumber of small units formally established for these'functions.

21. The Deputy Director (Plans) believes the changes he haa made in the past two years in the organization structure and the way of doing business in the CS have corrected deficiencies and that the situation in this regard ia now satisfactory. oncur in this belief. This doea not imply that we have achieved auch perfection in these important matters that no future modifications will be dealrable. We may require further adjustments to meet new situations. We must strive progressively to improve our methods and simplify our structure where feasible. To meet these requirementa the Deputy Director (Plans) will continue to study the organization and procedures of the Clandestine Services and take such action aa may be required to contribute to our goal of greater efficiency in the Clandestine Servicea/-^ /


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