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

288. Note by the Executive Secretary (Souers) to the National Security Council⁰

Washington, June 15, 1948.

NSC 10/1

OFFICE OF SPECIAL PROJECTS

Reference: NSC 10

At its 12th meeting the National Security Council referred NSC 10 back to the NSC Staff for the preparation of a substitute report reflecting the discussion at that meeting.¹

Pursuant to the above action, the enclosed draft National Security Council Directive, prepared by the NSC Staff as a substitute for NSC 10, is submitted for consideration by the National Security Council at its 13th meeting to be held on Thursday, June 17, 1948.

Sidney W. Souers ²

Enclosure³

PROPOSED NATIONAL SECURITY COUNCIL DIRECTIVE

1. The National Security Council, taking cognizance of the vicious covert activities of the USSR, its satellite countries and Communist groups to discredit and defeat the aims and activities of the United States and other Western powers, has determined that, in the interests of world peace and US national security, the overt foreign activities of the US Government must be supplemented by covert operations.

2. The Central Intelligence Agency is charged by the National Security Council with conducting espionage and counter-espionage operations abroad. It therefore seems desirable, for operational reasons, not to create a new agency for covert operations, but in time of peace to place the responsibility for them within the structure of the Central Intelligence Agency and correlate them with espionage and counter-espionage operations under the overall control of the Director of Central Intelligence.

3. Therefore, under the authority of Section 102(d)(5) of the National Security Act of 1947, the National Security Council hereby directs that in time of peace:

a. A new Office of Special Projects shall be created within the Central Intelligence Agency, and under the policy guidance of an Operations Advisory Committee to be established shall plan and conduct covert operations; and in coordination with the Joint Chiefs of Staff shall plan and prepare for the conduct of such operations in wartime.

b. A highly qualified person, nominated by the Secretary of State, acceptable to the Director of Central Intelligence and approved by the National Security Council, shall be appointed as Chief of the Office of Special Projects.

c. The Chief of the Office of Special Projects shall report directly to the Director of Central Intelligence. For purposes of security and of flexibility of operations, and to the maximum degree consistent with efficiency, the Office of Special Projects shall operate independently of other components of Central Intelligence Agency.

d. There shall be established an Operations Advisory Committee composed of one representative of the Secretary of State and one representative of the Secretary of Defense. These representatives shall be provided assistants and staffs as necessary by their respective Secretaries. The functions of this Committee shall be:

(1) To furnish authoritative policy guidance on covert operations to the Director of Central Intelligence.

(2) To assist in the preparation of all plans for such operations. In disagreements arising between the Director of Central Intelligence and a member of the Operations Advisory Committee over such plans, the matter shall be referred to the National Security Council for decision.

e. The Director of Central Intelligence shall be responsible for:

(1) Ensuring through the Operations Advisory Committee that covert operations are planned and conducted in a manner consistent with US foreign and military policies and with overt activities, and that plans for wartime covert operations are also drawn up with the assistance of a representative of the Joint Chiefs of Staff and are accepted by the latter as being consistent with and complementary to approved plans for wartime military operations.

(2) Informing, through appropriate channels, agencies of the US Government, both at home and abroad (including diplomatic and military representatives in each area), of such operations as will affect them.

f. Covert operations pertaining to economic warfare will be conducted by the Office of Special Projects under the guidance of the departments and agencies responsible for the planning of economic warfare.

g. Supplemental funds for the conduct of the proposed operations for fiscal year 1949 shall be immediately requested. Thereafter operational funds for these purposes shall be included in normal Central Intelligence Agency Budget requests.

4. Covert operations, in time of war or emergency when the President directs, shall be conducted under appropriate arrangements to be recommended by the Office of Special Projects in collaboration with the Joint Chiefs of Staff and approved by the National Security Council.

5. As used in this directive, “covert operations” are understood to be all activities (except as noted herein) which are conducted or sponsored by this Government against hostile foreign states or groups or in support of friendly foreign states or groups but which are so planned and executed that any US Government responsibility for them is not evident to unauthorized persons and that if uncovered the US Government can plausibly disclaim any responsibility for them. Specifically, such operations shall include any covert activities related to: propaganda; economic warfare; preventive direct action, including sabotage, anti-sabotage, demolition and evacuation measures; subversion against hostile states, including assistance to underground resistance movements, guerrillas and refugee liberations groups, and support of indigenous anti-communist elements in threatened countries of the free world. Such operations shall not include armed conflict by recognized military forces, espionage, counter-espionage, and cover and deception for military operations.

6. This Directive supersedes the directive contained in NSC 4–A, which is hereby cancelled.

0. Source: National Archives and Records Administration, RG 273, Records of the National Security Council NSC 10/2. Top Secret. Addressed to the Secretaries of State, Defense, Army, Navy, and Air Force and the Chairman of the National Security Resources Board. The typed date on the cover sheet of June 18 has been changed by hand to June 15.
1. See Document 283.
2. Printed from a copy that bears this typed signature.
3. Top Secret. The draft directive closely resembles an earlier version, dated June 10, which was sent to the NSC Consultants for comment in a June 11 memorandum from James S. Lay, Jr., the Assistant Executive Secretary. (National Archives and Records Administration, RG 273, Records of the National Security Council, NSC 10/2) See the Supplement.