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

51. Memorandum From the Director of the Bureau of the Budget (Smith) to President Truman⁰

Washington, November 28, 1945.

SUBJECT

• Developments in Intelligence Field

The development of the government-wide intelligence system envisioned in your letter of September 20 to the Secretary of State needs further personal assistance from you.

As you recall, there have been some half dozen proposals made by General Donovan, the Joint Chiefs of Staff, Mr. Gibson and the Secretary of the Navy (Mr. Eberstadt), in addition to the plan which you approved. All of these proposals arrived at findings and conclusions very similar to those which formed the basis of the plan which you have ordered. Among these plans there is no essential difference of opinion as to what our weaknesses were before and during the war, or as to what our objectives should be in the postwar period.

There is, however, some difference as to the methods for achieving these objectives. Under the plan which you have approved, first priority is given to the development of a coordinated government-wide system and such secret intelligence operations as may be undertaken are operated on as adjunct. In this way secret operations are placed in their proper relationship to a general and much more comprehensive system of intelligence. Further, they would be confined to these activities which the State, War and Navy Departments mutually agree are needed from time to time. Under the various other proposals, centralized secret operations are made the backbone, with other intelligence neglected or subordinated to it.

The State Department’s efforts to proceed along the line of your letter of September 20 have been hampered by the continued advocacy of the alternative central agency proposals. In my opinion, it is desirable for you to discuss with the Secretary of State the progress made in the creation of suitable permanent interdepartmental machinery, heading up to the State Department. You might also ask him to propose such additional action by you as may be necessary at this time to supplement your letter of September 20.

Harold D. Smith ¹

0. Source: National Archives and Records Administration, RG 51, Records of the Office of Management and Budget, Director’s Files, Series 39.27, Intelligence. No classification marking. Drafted by L.W. Hoelscher on November 28 and cleared by Schwarzwalder and Miles. Hoelscher sent an accompanying memorandum to Smith that concludes that proposals for an intelligence system are still confused with secret intelligence operations and that the Department of State should be the leader in efforts to develop a postwar intelligence program. (Ibid.) See the Supplement. Smith’s diary for November 28 gives an account of the meeting with the President at which he handed over the memorandum. (Roosevelt Library, Papers of Harold Smith, Box No. 4, Conferences with President Truman, 1945) See the Supplement.
1. Printed from a copy that indicates Smith signed the original.