Historical Documents - Office of the Historian

PSB M–1

Washington, July 2, 1951.

Functions of the Board and Staff

1.: Initial discussion was based on the agenda proposed in the memorandum of 1 June 1951 from Mr. Dulles to the Director of Central Intelligence.2 In view of Mr. Gray’s appointment, discussion of the proposed interim procedure (Tab A of that memorandum) was not necessary. The proposed functions and organization of the Staff (Tab B) was passed over as it was considered a non-controversial paper. The basic difference of view brought out in General Magruder’s and Mr. Sargeant’s papers was discussed briefly but no decision or recommendation was made. It was agreed that Mr. Gray should have an opportunity to discuss the matter with various interested people before forming an opinion.
2.: General Smith stated his view that the principal factor missing in our psychological set-up at the present time is a “master plan” similar to the plan of the Combined Chiefs of Staff in the last war when it was decided to concentrate first on Germany and then turn on Japan. He pointed out that everything else would logically flow from such a plan and that economic programs, covert missions, and VOA policies should be related to it.
3.: General Smith felt that the PSB and its Staff should work on the preparation of this master plan and act as a high-level project review board to allocate missions to the various agencies and to survey the effectiveness of operations in progress.

Funds, Space, and Personnel

4.: The Board agreed that Mr. Gray and his Staff should be physically located on “neutral ground” apart from any one of the participating agencies.
5.: It was understood that Mr. Peel of CIA would assist Mr. Gray in working out with Mr. Finan of the Bureau of the Budget3 and representatives of State and Defense the necessary arrangements regarding funds and office space for the Board and Staff. General Smith agreed to try to make certain slots available for the immediate hiring of some high-level consultants to be assigned to the PSB.

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Relations With Other Groups

6.: The relation of the Board to the NSC was discussed briefly, and it was understood that the Board would occupy a position somewhat similar to that of the Senior Staff, reporting directly to the NSC. Coordination with the Joint Chiefs of Staff would be effected through their representative with the Board, Admiral Stevens.
7.: The supporting role of the O/PC Consultants and Mr. Barrett’s Psychological Operations Coordinating Board was mentioned and the possibility was raised of combining these two groups while preserving separate overt and covert staffs. It was agreed, however, that no change should be made at the present time inasmuch as both groups were operating satisfactorily.

Scope of “Psychological Operations”

8.: The point was made that the scope of the Board’s responsibility is very broad and covers every kind of activity in support of U.S. policies except overt shooting and overt economic warfare.

Source: National Archives, RG 59, S/S–NSC Files: Lot 62 D 333, PSB Minutes. Secret. This was the first meeting of the PSB. It was held in the DCI’s conference room.↩
A copy is in the Central Intelligence Agency, Executive Registry, Job 80–R01731R, Box 33, Folder 1089.↩
William F. Finan, Assistant Director for Administrative Management, Bureau of the Budget.↩

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