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Conducting Black Operations in the Corporate IT Theatre
About the Author
Born: 30/03/1892
Died: 14/01/1973
With the signing of the directive on coordination of foreign intelligence on
January 22, 1946, a peacetime national intelligence system was finally
established. In fact, however, it existed only on paper. OSS had been broken up
and dissolved. The Strategic Services Unit remained in the War Department as a
potential nucleus of a clandestine intelligence capability, but at that point no
one was certain of how or even whether it would be absorbed into the new
national intelligence structure. A mechanism for producing "strategic and
national policy intelligence" had yet to be devised, and there was not yet even
a common definition of the term.
Beyond the generalities, there was no agreed view of how the new system
should operate or even of what it should do. President Truman had his own idea
of what the new arrangements could do for him, reflecting mainly his concern to
be kept informed in a way that ensured that all of the relevant information was
put together in a single package. Apart from this, his interest in the
intelligence set-up seemed to be limited. The armed forces had been the prime
movers of the effort to set up a centralized intelligence capability but they
would soon begin to show signs of alarm that the new system was becoming too
independent. The Department of State wanted to exert major influence on the
Central Intelligence Group but seemed uncertain about how to do so, perhaps
because it was still in the middle of its own bruising battle over
intelligence. Secretary of State Byrnes feared that the new arrangements would
enhance Admiral Leahy's role in foreign policy, to the detriment of the
Department's.
Truman appointed Rear Admiral Sidney W. Souers as the first Director of
Central Intelligence on January 23, 1946. As Deputy Director of Naval
Intelligence, Souers had been one of the architects of the system that came
into being with the President's directive. He had written the intelligence
chapter of the Eberstadt Report, which advocated a unified intelligence system
and apparently had made a significant impact on Forrestal. Toward the end of
1945, when the competing plans for a national intelligence system were
deadlocked, Souers' views had come to the attention of the President, and he
seems to have played a role in breaking the impasse. Working with Clark
Clifford, he helped turn the Three Secretaries' proposal of January 7 into the
directive signed by the President on January 22.
On the same day that he appointed Souers Director of Central Intelligence,
Truman named Admiral Leahy as his personal representative on the National
Intelligence Authority (NIA). Leahy heretofore had played a significant
behind-the-scenes role on intelligence matters. From now on, he was a somewhat
more visible as well as influential figure.
The documentation on Souers' tenure is limited, and partly because he was so
briefly in office (serving less than 5 months), and partly because the
intelligence structure was still so rudimentary. What has been found seems
adequate to trace major trends, but there is a change in the quality of the
surviving documentation, which begins to be more formal and bureaucratic, a
change that becomes even more marked as the institutional development of the
intelligence system continues under Souers' successors.
Although there were latent conflicts over fundamental intelligence issues
from the beginning, these conflicts were muted under Souers' directorship. A
reserve officer, he had been anxious to return to private life but was
prevailed upon to serve as Director of Central Intelligence while a "permanent
director" was sought. Both his personal style and the nature of his
responsibilities at that point made it possible for him to avoid or at least
minimize controversy. At the same time, having been through the controversy
over the founding of the system, Souers was aware of the potential for
disagreement and tended to move carefully. All of these tendencies were
reinforced by his awareness that he was dependent on the State, War, and Navy
Departments for personnel and funds. His approach was perhaps best summed up
in National Intelligence Authority Directive No. 1, which declared that "The
Central Intelligence Group shall be considered organized and operated as a
cooperative interdepartmental activity, with adequate and equitable
participation by the State, War and Navy Departments."
Souers had gone to work the last week of January. One of his first jobs was
to organize the Central Intelligence Group, but even before that he had to
write its charter. He did so in NIA Directive No. 1, in effect a set of
instructions to himself, which laid out the basic guidelines for the operation
of the national intelligence system. In two of its provisions, the directive
foreshadowed later controversies. Paragraph 2, which provided that "The Central
Intelligence Group will furnish strategic and national policy intelligence to
the President and the State, War and Navy Departments" marked, at least
symbolically, the beginning of the debate over national intelligence estimates
and over whether CIG should be a large research and analytical agency or a
small but expert estimative staff. Similarly, paragraph 3 of NIA Directive
No. 1 encapsulated another future debate. It provided that "All recommendations,
prior to submission to this Authority, will be referred to the [Intelligence
Advisory] Board for concurrence or comment... If any member of the Board
does not concur, you will submit to this Authority the basis for his
non-concurrence at the same time that you submit your recommendation." In a
sense, this was the starting point for the long-running contest over the
respective powers of the Director of Central Intelligence and the departmental
intelligence chiefs that was fought out in the Intelligence Advisory Board and
its successor, the Intelligence Advisory Committee. Whether the IAB/IAC was a
board of directors or simply an advisory panel was an issue that was still
being debated 4 years later.
The inauguration of the new intelligence system also marked the beginning of
its two deliberative groups, the National Intelligence Authority and the
Intelligence Advisory Board. The former held three meetings during Souers'
directorship, the latter four. In general, their records during the Souers'
period tend to be briefer and "drier" than in later periods, when a fuller
record of the discussions (and eventually a transcript) were introduced. In
any case, the proceedings of both bodies are important sources both at this
and later periods, and the records of the NIA during its approximately 18
months of existence especially so because they provide a record of Cabinet-level
oversight of the intelligence structure.
During Souers' tenure there also began the series of National Intelligence
Authority Directives which provided the basic charters for the intelligence
system during its formative period. While these are formal documents, they
tend to reflect the main issues and concerns, at least of an institutional
and procedural nature, with which the intelligence system was grappling. The
discussions of the draft directives in the NIA and the IAB, despite the
latter's penchant for becoming involved in detail, provide significant insights
into how intelligence issues were approached.
Souers' organizational problems were in one sense relatively simple. His
main concerns were to have a planning group that could sort out the problems
and issues that had to be addressed and a reporting group that could provide
a nucleus for the "strategic and national policy intelligence" function. All
of this could be and was done with a small staff. Souers' problem was that
the staff (and the funding) had to come from the State, War, and Navy
Department, and there seems to have been a constant struggle to ensure a flow
of qualified personnel to CIG.
NIA Intelligence Directive No. 2 of February 8, 1946, drafted for the
Authority by Souers and his colleagues, assigned two "first priority" tasks
to the new Director of Central Intelligence. One of them, "conducting a
survey of existing facilities for collection of foreign intelligence
information, and submission of appropriate recommendations," was the charter
for the planning process on which Souers understandably put so much emphasis.
To achieve this objective, he established a Central Planning Staff responsible
for "planning for the coordination of intelligence activities related to the
national security, and... preparing recommendations regarding the establishment
of such over-all policies and objectives as will assure the most effective
accomplishment of the national intelligence mission." In this initial phase,
the Planning Staff seems to have been occupied mainly in preparing studies
on a wide variety of proposed functions and real or perceived intelligence
problems. There are some indications that at the outset Souers would have
preferred to conduct the planning process by interdepartmental committee but
that the problem of getting adequate committee staffing from all concerned
agencies led him to rely increasingly on his own Planning Staff.
The second of the "first priority" tasks laid upon Souers was the "production
of daily summaries containing factual statements of the significant developments
in the field of intelligence and operations related to the national security
and to foreign events for the use of the President."
Although there was little question that the President wanted some kind of
daily digest of information (in his own mind it seems to have been one of the
main reasons he established a national intelligence system), the President's
summary gave the National Intelligence Authority its first contentious issue.
At the Authority's first meeting on February 5, Secretary of State Byrnes
raised the problem and "pointed out that he is responsible for reporting to
the President on matters of foreign policy."
Byrnes was not mollified by Souers' explanation that his reports to the
President, based on intelligence dispatches, would be "purely factual" and
not imperative or offer advice or by a subsequent explanation by Admiral
Leahy of why the President wanted the summaries. The Authority decided to
defer action "pending further study by Secretary Byrnes." Byrnes then discussed
the matter with the President and at the NIA's second meeting on February 8
(see the Supplement) and told his colleagues that the President had assured
him that "only factual statements were desired" in the summaries. The Authority
thereupon agreed to describe them accordingly in NIA Directive No. 2. The daily
summary appeared for the first time the following week.
For the preparation of summaries and other substantive intelligence papers,
Souers established a Central Reports Staff, which was intended from the
beginning to produce estimates but which had to devote much of its energy
and resources to the preparation of summaries. During Souers' directorship,
it had not been decided whether the Central Reports Staff should try to
develop a separate research capability of its own or whether it would
remain a small group of experts who would work closely with the departmental
intelligence agencies, drawing on their resources and synthesizing their
products. But there was a hint of the future in the Intelligence Advisory
Board meeting on April 8, 1946 (Document 146). After a discussion of the
State Department's difficulties in securing budgetary support for its
fledgling intelligence organization, and against the prospect of the Russell
Plan's dispersal of the analytical units to the policy offices, both the
Army G-2 (who would shortly become the Director of Central Intelligence) and
the Chief of Naval Intelligence suggested that perhaps the time had come for
the State Department to transfer the research and analysis function it had
inherited to the Central Intelligence Group.
In his valedictory report to the National Intelligence Authority on June 7,
1946 (Document 154), Souers laid out the agenda for his successor. He
indicated that the initial planning and organizing phase had been completed
and that the Central Intelligence Group should begin operation of centralized
common services as soon as possible. He alluded to the inauguration of the
Presidential summaries, but declared that "the primary function of C.I.G in
the production of intelligence, however, will be the preparation and
dissemination of definitive estimates of the capabilities and intentions of
foreign countries as they affect the national security of the United States."
Finally, Souers asserted that "the National Intelligence Authority and the
Central Intelligence Group should obtain enabling legislation and an
independent budget as soon as possible, either as part of a new national
defense organization or as a separate agency." This last recommendation became
one of General Vandenberg's first and highest priorities when he succeeded
Souers a few days later.
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