389. Memorandum From General Joseph T. McNarney to the Executive Secretary of the National Security Council (Souers)0
SUBJECT
- Recommendation of Dulles Survey Group Report that there be established an Operations Division, with its separate administration, within CIA
At the last meeting of the National Security Council the “Comments and Recommendations on the Report of the Dulles–Jackson–Correa [Page 989] Committee Prepared by the Secretary of State and the Secretary of Defense” were approved with a substantial exception which was to be reconsidered by the representatives of State and Defense. The exception involved the question of whether the administrative services in support of the agreed-upon Operations Division should be separate, as recommended, or derived as at present from a centralized administrative office reporting directly to the Director, CIA.
The representatives of the Secretaries of State and Defense have reexamined this problem and have discussed it with Rear Admiral Hillenkoetter and two of his Assistant Directors who will be responsible for carrying out the recommendations. Based upon a careful reconsideration of the recommendation, and with full weight being given to the views presented by the Director of Central Intelligence and two of his Assistant Directors, the representatives of the Secretaries of State and Defense hereby confirm their recommendation that administrative support of covert and overt operations of CIA should be separate. They thereby reaffirm the recommendation of the Dulles–Jackson–Correa Committee.
They consider particularly desirable separate administrative organizations for the handling of such overt and covert functions as: personnel administration including recruitment (except clerical type personnel for headquarters) personnel security; fiscal, accounting and budgetary functions, including the handling and control of confidential funds; travel abroad; storage and warehousing for clandestine materials; contract administration where the contracts involve clandestine matters; reproducing and photo-copying; and other related administrative matters which require close relationship and knowledge on the part of a minimum number of administrating and operating officials to insure adequate flexibility and security of operations.
They recommend, however, that certain administrative functions which can be efficiently performed in a central administrative office without danger of loss of flexibility or security to covert activities be kept concentrated in such an office. Examples of such functions are: space allocations; procurement of ordinary supplies (except special equipment for clandestine use); legal services; transportation facilities in the United States; and other closely related administrative functions which, with full regard to special considerations of security and flexibility of operations, may be economically and satisfactorily performed in a central office.
The representatives of the Secretaries of State and Defense believe that there now is sufficient overstaffing in the administrative services of the Central Intelligence Agency to permit the separation of the administrative support of overt and covert activities without any substantial [Page 990] increase at present in the allocation of personnel or funds for this purpose.