111. Memorandum From the Assistant Director of the Federal Bureau of Investigation (Ladd) to the Director of the Federal Bureau of Investigation (Hoover)0


  • National Intelligence Authority

I attended another meeting of the Central Intelligence Group of the National Intelligence Authority on the afternoon of May 14, 1946. On this occasion, as I advised you in my memorandum of May 13, 1946,1 a preliminary [Page 278] draft was drawn up of an interim agreement for the handling of the intelligence coverage for the world on an interim basis. In this directive as presently drawn, it is recommended that those activities of SSU in Central Europe, but not the Balkans, be transferred in toto to G-2 of the Theater Command for the use of the military government.

It is further provided that G–2 will cover world-wide intelligence on an interim basis, this to be decreased and turned over to the FBI at such time as the FBI is ready to assume world-wide intelligence coverage.

It is provided that ONI shall have world-wide coverage for the purpose of obtaining naval intelligence material.

It is provided that G–2 have world-wide coverage for obtaining military intelligence.

It is proposed that the FBI continue in the Western Hemisphere for the fiscal year 1948 as at present, covering economic, financial, political, and subversive matters, and that it expand its operations to world-wide coverage at the earliest practical date, and that a new Delimitation Agreement be drawn up between ONI, G–2, and the FBI to be concurred in by the Director of the National Intelligence Authority, delimiting and removing G–2 from all except the military intelligence field at such time as the FBI is able to assume jurisdiction in any given area.

It is also provided that the intelligence activities be coordinated by a head to be designated by the Director of the National Intelligence Authority which is to be concurred in by the Directors of the FBI, G–2, and ONI, and the head of Foreign Correlation of the State Department (this would be Fred Lyon), that this head when appointed should be assisted by a subcommittee on a permanent basis representing G–2, ONI, the head of Foreign Correlation of the State Department (Fred Lyon), and an Assistant Director of the FBI.2

A further meeting of the Central Intelligence Group is planned for 3:30 PM, Wednesday, May 15, 1946, for the purpose of going over the final draft of this proposal. It is pointed out in this proposal that the reason for the urgency is the fact that the various agencies will have to prepare in the immediate future their budget requests for 1948. It is also set forth in this directive that the activities of SSU shall be completely liquidated throughout the world; including their Washington, D.C., staff, at the earliest practicable date, within 90 days if possible, and that the files of X–2 shall be turned over to the nearest American Consulate inasmuch as the State Department advises they are valuable for reference purposes in granting visas. The files in Washington are to be turned over to the [Page 279] Central Intelligence Group for such disposal as the Group will deem necessary after a study of these records.

As a matter of interest, Colonel Cunningham stated at this meeting that on the Monday following the newspaper article by Stuart Alsop relative to the directive liquidating SSU and recommending the FBI for world-wide coverage, Jimmy Murphy of SSU was fired. The reason for this was that it had been learned that he had arranged for a subordinate official of SSU to plant the story with Alsop in order that that article might be written.

There is no use providing for FBI to take over or assume world-wide intelligence coverage for we are not going to do it. The most I will agree to now is to stay in the Western Hem. for 1 year. I am more & more certain that this is a project we must get out of. The trouble we had in Germany; Japan; & refusal of Souers to supply us with daily Int.[elligence] Survey; & Inglis protest re. Amer. Mag. article based on an agreement entered into with British unbeknowing to us—all tend to show what a headache we would have. We would be carrying most of the work with none of the full authority to get it done properly.3

  1. Source: National Archives and Records Administration, RG 263, Records of the Central Intelligence Agency, Troy Papers, FBI Documents. No classification marking.
  2. Neither this memorandum nor the draft “interim agreement” subsequently mentioned have been found.
  3. At this point there is a marginal note in Hoover’s handwriting asking “What is to be the purpose of this?” and suggesting that “just another position” or “more ‘brass’” was being created. Hoover added that he thought Souers was supposed to be in charge.
  4. The last paragraph was handwritten by Hoover.