112. Memorandum From the Director of the Office of Controls (Lyon) to the Chief of the Division of Foreign Activity Correlation (Neal)0

Jack:

I met with General Vandenberg1 the afternoon of June 28. During the conversation the subject of cover for SSU came up.

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 [Page 280] 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.

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