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

404. Memorandum From the Acting Executive Secretary (Lay) to the National Security Council⁰

Washington, December 14, 1949.

SUBJECT

• The Central Intelligence Agency and National Organization for Intelligence

REFERENCES

A.

Memo for NSC from Executive Secretary, same subject, dated October 10, 1949, with enclosed Progress Report by the Director of Central Intelligence¹

B.

NSC 50²

C.

NSC Actions Nos. 237 and 231³

The enclosed memorandum by the Under Secretary of State with respect to the reference Progress Report by the Director of Central Intelligence on the implementation of paragraph 6 of NSC 50 is circulated herewith for the information of the National Security Council.

In accord with the suggestion in the last paragraph of the enclosure the Director of Central Intelligence is being requested to submit a further report on the organization he plans to adopt in furtherance of paragraph 6 of NSC 50 when that has been determined, including a review of other steps contemplated to achieve the objectives outlined in paragraph 5 of NSC 50.

James S. Lay, Jr.

Enclosure⁴

Washington, December 13, 1949.

Memorandum From the Under Secretary of State (Webb) to the Executive Secretary of the National Security Council (Souers)

SUBJECT

• The Central Intelligence Agency and National Organization for Intelligence, NSC 50 and Progress Report on NSC 50, October 7, 1949

The receipt of the Progress Report of the CIA is acknowledged.⁵ Although it is noted that no action has been requested by the Director of Central Intelligence, the Department of State makes the following comment on the report, specifically with reference to paragraph 2 (2).

In paragraph 6 of NSC 50, the Council approved the recommendation of the Survey Group that out of the present Office of Reports and Estimates of CIA “there should be created (a) a small estimates division which would draw upon and review the specialized intelligence product of the departmental agencies in order to prepare coordinated national intelligence estimates and (b) a research and reports division to accomplish central research in, and coordinated production of, intelligence in recognized fields of common interest.” The purpose of this organizational change was to facilitate the accomplishment of the objectives set forth in paragraph 5 of NSC 50, dealing with the production of national intelligence. The Council recognized, however, that there might be other methods of organization which would accomplish the same objectives.

The report indicates that the Director has elected to adopt an alternative method of organization to accomplish the objectives outlined in paragraph 5, but that the exact nature of this reorganization has not been fully determined.

In view of the responsibility of the National Security Council for the implementation of NSC 50, perhaps it would be helpful to all concerned if the Director reported further on the organization he plans to adopt in furtherance of paragraph 6 when that has been determined. Such a report might extend to a review of other steps contemplated to achieve the objectives outlined in paragraph 5.

James E. Webb ⁶

0. Source: Truman Library, Papers of Harry S. Truman, President’s Secretary’s Files. Top Secret. A copy was sent to Hillenkoetter.
1. See Document 400 and the source note thereto.
2. Document 384.
3. Regarding NSC Action No. 231, see footnote 2, Document 385. NSC Action No. 237 is not printed. (National Archives and Records Administration, RG 273, Records of the National Security Council, Record of Actions, Box 55)
4. Top Secret.
5. Memo for NSC from Executive Secretary, same subject, dated October 10, 1949. [Footnote in the source text; see footnote 1 above.]
6. Printed from a copy that indicates Webb signed the original.