Foreign Relations of the United States, 1945–1950, Emergence of the Intelligence Establishment

121. Memorandum From the Director of the Federal Bureau of Investigation (Hoover) to Attorney General Clark⁰

Washington, August 8, 1946.

I have been advised by Mr. Tamm of his discussion today with you relative to the letter addressed to you under date of August 8th and bearing the signatures of Messrs. Patterson, Acheson and Sullivan and Admiral Leahy, relative to the transfer of the intelligence functions performed by the Federal Bureau of Investigation in Latin America to the Central Intelligence Group.¹ I am addressing to you separately today a memorandum outlining in detail the developments with reference to this situation since the Central Intelligence Authority obtained a Presidential directive establishing itself as an operating unit in the collection of intelligence information, and General Vandenberg, pursuant to that directive, indicated his desire to take over the coverage of Latin American intelligence.² Mr. Tamm has advised me of your desire to agree to the tentative schedule for the transfer of intelligence functions to CIG in so far as it is practicable and possible, in view of your feeling that the President has undoubtedly approved the attached action recommended by Mr. Patterson and the co-signers representing the State and Navy Departments and the White House.³

It is noted that this schedule proposes that the Central Intelligence Group will take over the coverage of designated Latin American countries on February 15, 1947, will take over a second group on April 1, 1947, and the balance of the Latin American countries on May 15, 1947. If you insist on my complying with this schedule, I will, of course, have no alternative but to agree to it. I desire to point out to you, however, that I had anticipated insisting with General Vandenberg that the Central Intelligence Group take over the first group of offices on September 15, 1946, a second group on November 1, 1946, and the balance of the Latin American offices on January 1, 1947. I contemplated this action in order, first, to return to the domestic service of the FBI as promptly as possible the experienced Bureau Agents who have been operating the intelligence service in South America. It is unnecessary for me to point out to you again the dire need which the Bureau has at this time for special Agents, and I feel that since the Central Intelligence Group desired to take over the Latin American coverage, the sooner the Bureau Agents return to their domestic duties, the better off the Bureau will be.

Since my representatives in Latin America know of the contemplated program of General Vandenberg—the State Department has already advised all of its Latin American Ambassadors of the proposed CIG program—it is a matter of considerable difficulty to keep the interest of the Bureau personnel in Latin America at an efficient level. Since these men know that their assignments as intelligence agents in South America will shortly terminate, they rapidly, as a matter of human nature, lose interest in a job which they consider is now finished and their interests naturally turn to their new assignments and responsibilities in the United States. I feel, consequently, that the quality of the Bureau’s performance in Latin America will probably decline because of the diminishing interest on the part of Bureau Agents in these assignments. I think that in the interest of efficiency it is highly desirable to transfer these men to their new duties and the duties in which their interests will now lie as soon as possible. I think, conversely, it is highly desirable, since the CIG desires to go into the Latin American field, that they take over their responsibilities as soon as possible.

A third element which enters into a decision upon this subject is the fact that undoubtedly, and despite their assurances to the contrary, the Central Intelligence Group, will definitely endeavor to proselyte Bureau personnel presently serving upon intelligence assignments. The Bureau’s representatives in the Latin American field are men of outstanding qualifications with exceptional backgrounds and they have performed very meritorious service in the Latin American field. It is logical to assume that the Central Intelligence Group will endeavor to secure the services of these people. I feel that the sooner the Bureau brings these people back to the United States, the less danger there is of the Bureau’s losing the services of experienced personnel, which it so vitally requires in the domestic field at the present time.

I do not believe that the General Vandenberg group can contend that they are unable to take over the Latin American intelligence duties until next year because of their inability to obtain personnel. Certainly when the Bureau was instructed to establish a Latin American intelligence service, no latitude was allowed for any extended period of personnel recruitment and the Bureau virtually overnight placed in the Latin American countries an operating, efficient intelligence service. A recent organization chart of the Central Intelligence Group indicated that a staff of some 90 persons is presently assigned at the seat of Government in Washington. This staff is about tenfold that which the Bureau has utilized to operate a Latin American intelligence service. In addition, I have been informed that the personnel investigative division of the Central Intelligence Group has been investigating about 187 applicants for positions each month. Recently General Vandenberg advised the National Intelligence Authority that he contemplated having the services of 3,000 people in his organization by the end of the current fiscal year, of whom 1900 would be engaged in secret intelligence. General Vandenberg advised that in addition to the $12,000,000.00 made available to him for the fiscal year 1947, he would need $10,000,000.00 for his operations during the current year and expressed the view that he might have to secure an independent budget rather than operate from funds made available by the State, War and Navy Departments. It seems to me, consequently, that the Central Intelligence Group is not confronted with any personnel problems and apparently is financially able to carry on their operations. I think it is rather interesting to note that when the Federal Bureau of Investigation prepared an estimate for a worldwide intelligence system, we contemplated the use of 650 Agents at an annual cost of about $10,000,000.00 a year.

I feel, consequently, that the Central Intelligence Group should be required to take over the Latin American intelligence in three stages—taking over the first group of offices in their proposed schedule on September 15, 1946, the second group on November 1, 1946, and the final group on January 1, 1947. While I, of course, will do whatever you desire in this situation, I do want you to know that I feel very strongly that the Central Intelligence Group, having sought the coverage of intelligence in the Latin American field, should be required to assume promptly the responsibility for this coverage.

I am returning herewith the original letter addressed to you by Messrs. Patterson, Acheson, Sullivan and Leahy and the attachment referred to therein.

0. Source: National Archives and Records Administration, RG 263, Records of the Central Intelligence Agency, Troy Papers, FBI Documents, Box 8, Folder 18. No classification marking.
1. Document 120.
2. Dated August 8; not printed. (National Archives and Records Administration, RG 263, Records of the Central Intelligence Agency, Troy Papers, FBI Document, Box 8, Folder 18)
3. Document 120.