106. National Intelligence Directive No. 40

POLICY ON LIQUIDATION OF THE STRATEGIC SERVICES UNIT

REFERENCES

a.
The Executive Order of 20 September 1945, subject: “Termination of the Office of Strategic Services and Disposition of Its Functions”
b.
C.I.G. Directive No. 11

Pursuant to paragraph 1 of the letter from the President dated 22 January 1946 which designated this Authority as responsible for planning, developing and coordinating the Federal foreign intelligence activities so as to assure the most effective accomplishment of the intelligence mission related to the national security,2 the following policies and procedures relating to the liquidation of the Strategic Services Unit (SSU) are announced:

1.
The national interest demands that the complete liquidation of SSU shall not be accomplished until it is determined which of its functions and activities are required for the permanent Federal foreign intelligence program, and should therefore be transferred to the Central Intelligence Group or other agencies in order that its useful assets may not be lost. Such determination and transfers shall be made and the liquidation of the remainder of SSU shall be completed as promptly as possible and prior to 1 July 1947. The Director of Central Intelligence shall issue the necessary directives to effect the liquidation. He will make recommendations to this Authority as to the intelligence activities permanently required in the peace-time effort.
2.
During the period of liquidation the SSU should be administered and operated so as to service,3 to the extent practicable, the intelligence agencies subject to our coordination. The Director of Central Intelligence shall issue the necessary directives to the Director of SSU required to accomplish this mission. In addition, the Director of SSU will make available to the Director of Central Intelligence, upon his request, any facilities [Page 273] and services of SSU which may be useful in the performance of an authorized function of the Central Intelligence Group.
3.
The Director of Central Intelligence will be responsible for determining which funds, personnel and facilities of SSU are required for the performance of an authorized function of the Central Intelligence Group. Such funds, personnel and facilities of SSU will then be transferred to an appropriate War Department unit. The Director of Central Intelligence will be responsible for making the necessary administrative arrangements and for issuing the necessary directives to the Director of SSU.
4.
The War Department will take the necessary budgetary action to carry out this program.
5.
The War Department shall retain the right to determine what portion of War Department funds, personnel and facilities can be made available to SSU by the War Department.

  1. Source: National Archives and Records Administration, RG 218, Records of the Joint Chiefs of Staff, Leahy Papers, No. 132. Confidential. The draft version of the directive was discussed at the IAB meeting on March 26 (see Document 144) and at the NIA meeting on April 2 (see Document 145).
  2. Document 105.
  3. Document 71.
  4. At the NIA meeting on April 2, Secretary of War Patterson suggested at this point the insertion of the phrase “within your capabilities.” The NIA approved, but the language apparently was subsequently modified to read “to the extent practicable.” See Document 145.