16. Memorandum From the Assistant Director for Administrative Management, Bureau of the Budget (Stone) to the Director of the Bureau of the Budget (Smith)0

SUBJECT

  • Attached Letter from Joint Chiefs of Staff Relating to the OSS Executive Order1

On receipt of this letter I asked Arnold Miles to call General McFarland to tell him that the Order had already been signed. Arnold reminded McFarland that in their discussion it was made clear that the Order was not submitted for formal clearance but for information and for comments if any. Miles also reminded him that the President might sign the order at any time. McFarland agreed this was the case.

McFarland stated that one of the Joint Chiefs raised the question as to whether this was the correct time for this action and instituted a study of the matter for that purpose. McFarland said that the study would be continued and Miles asked that we be kept informed of any matters which required action.

It was made clear to McFarland that the signing of the Order does not freeze the intelligence situation but clears the ground for consideration of the problem in its entirety.

Stone

P.S. Donovan was out of town, so I talked to Louis Ream, his deputy. He took it very calmly and will cooperate in arrangements.2

  1. Source: National Archives and Records Administration, RG 51, Records of the Office of Management and Budget, Series 39.19, OSS Organization and Functions. No classification marking.
  2. Not found.
  3. The postscript, apparently by Stone, is handwritten.