Foreign Relations of the United States, 1950–1955, The Intelligence Community, 1950–1955

63. Memorandum From the Executive Secretary of the National Security Council (Lay) to the National Security Council¹

Washington, April 9, 1951.

SUBJECT

• NSC 10/3 and NSC 10/4²

REFERENCE

• A. NSC 10/2³
• B. Memos for NSC from Executive Secretary, subject: “NSC 10/3” and subject: “NSC 10/3 and NSC 10/4”, dated February 6 and March 30, 1951, respectively⁴

The enclosed memorandum by the Director of Central Intelligence on the subject reports is submitted herewith for consideration by the National Security Council of the proposal contained in paragraph 1 thereof.

Accordingly, it is requested that each Council member indicate his action with respect to the proposal contained in the first paragraph of the enclosure by completing and returning the attached memorandum form.⁵

Furthermore, if the proposal in paragraph 1 of the enclosure is approved,⁶ it is requested that all copies of NSC 10/3 and of the reference memorandum of March 30 be returned to this office in accordance with the recommendation contained in paragraph 2 of the enclosure.

With respect to NSC 10/4, it is suggested that further Council consideration of that report be deferred until additional recommendations regarding it are submitted by the Director of Central Intelligence at a later date, as indicated in the last paragraph of the enclosure.

It is requested that special security precautions be taken in the handling of this material and that access be limited to individuals requiring the information contained herein in order to carry out their official duties.

James S. Lay, Jr.

Enclosure

Washington, April 9, 1951.

Memorandum From Director of Central Intelligence Smith to the National Security Council⁷

SUBJECT

• NSC 10/3 and NSC 10/4

1. As a result of a conference held on 5 April 1951 by the Deputy Secretary of Defense Lovett, Under Secretary of State Webb, General Bradley, and the undersigned,⁸ it was agreed that the differences among the interested agencies with regard to the proposed changes in NSC 10/2 could best be composed by substituting for paragraph 4 thereof the following:

“4. In time of war, or when the President directs, all plans for covert operations shall be coordinated with the Joint Chiefs of Staff. In active theaters of war where American forces are engaged, covert operations will be conducted under the direct command of the American Theater Commander and orders therefore will be transmitted through the Joint Chiefs of Staff unless otherwise directed by the President.”

2. Accordingly, it is recommended that NSC 10/3, and the commenting paper thereon by the Joint Chiefs of Staff, dated 27 March 1951,⁹ be withdrawn.

3. If this recommendation is accepted by the National Security Council, the basic directive for covert operations by the Office of Policy Coordination of the Central Intelligence Agency (NSC 10/2) will remain in effect with paragraph 4 thereof changed as indicated in paragraph 1, above. This document leaves something to be desired but it is workable. Discussions relative to the details of authority and responsibility, which appear inevitably to follow any significant change, can thus be minimized. Those which cannot be avoided when two or more agencies of Government are cooperating in pursuit of a common objective can be continued indefinitely on the staff level without militating against the effectiveness of important operations now in progress.

4. Further recommendations regarding final action on NSC 10/4 (Responsibilities of CIA with Respect to Guerrilla Warfare) will be submitted at a later date when it is determined to what extent, if any, these responsibilities can be transferred or decentralized to other agencies of the Government.

Walter B. Smith

¹⁰

1. Source: Truman Library, Harry S. Truman Papers, President’s Secretary’s Files, Subject File. Top Secret.
2. For a draft of NSC 10/3, see the attachment to Document 43. For NSC 10/4, January 16, see Document 42. NSC 10/4 was withdrawn on December 13, after the approval of NSC 10/5; see Document 90.
3. For text, see Foreign Relations, 1945–1950, Emergence of the Intelligence Establishment, Document 292. This text cites the 1951 revised language of paragraph 4 that includes the added final phase “unless otherwise directed by the President.” See footnote 6 below.
4. Lay’s February 6 memorandum to the National Security Council transmitted the NSC’s draft directive on NSC 10/3 along with a memorandum from Under Secretary Webb outlining the views of the Department of State. Lay’s memorandum also indicated that the National Security Resources Board concurred in the proposed directive. (National Archives, RG 273, Policy Papers, NSC 10/3, Box 3) Lay’s March 30 memorandum has not been found (see footnote 6 below).
5. Not found.
6. Truman approved the proposal for a new paragraph 4 of NSC 10/2 in an April 16 memorandum to Lay. In a handwritten note he added: “It is a proper suggestion. I approve it.” (Truman Library, Papers of Harry S. Truman, President’s Secretary’s Files, Subject File) Lay informed the Council by memorandum of April 16 that the statutory members of the Council had approved the new paragraph 4. This settled the controversy between CIA and the JCS (see Document 42) and draft NSC 10/3 was withdrawn. The President’s copy of Lay’s April 16 memorandum bears a handwritten notation dated May 25, 1951, by Rose A. Conway, Administrative Assistant in the President’s office, indicating that copies of NSC 10/3 and Lay’s memorandum of March 30 had been returned to Lay for destruction.
7. Top Secret.
8. The conference is described in Montague, General Walter Bedell Smith as Director of Central Intelligence, p. 207.
9. Not found.
10. Printed from a copy that indicates Smith signed the original.