THE SECRETARY OF DEFENSE WASHINGTON JUL 6 1951 FOR THE PRESIDENT Subject The Establishment of a Defense Intelligence Agency DIA On 18 January 1961 following actiOn by the National Security Council President Eisenhower approved most cf the recommendations of a special committee under the Chairman- ship of Mr Lyman B Kirkpatrick on Foreign Intelligence Activities of the United States Government One of the principal recommendations was that the Secretary of Defense should take appropriate action to bring the military intelligence organiza- tion within the Department of Defense into full consonance with the concept of the Defense Reorganization Act of 1958 The Kirkpatrick recommendations are generally supported by the findings of other studies which have been made within over the last few years looking toward improvement in intelligence activities 1 On the basis of previous studies and extensive investigation of the various intelligence organizations it was found there is considerable overlap and duplication in the intelligence effort and as a result a maldistribution of critical intelligence resources Over-all direction and management of DoD's total intelligence effort becomes a very difficult if not impossible task Indeed the fragmentation of effort creates barriers to the free and complete interchange of intelligence information among the several components of the Department of DefenseThis problem apparently is greatly accentuated by the critical interrelationship of intelligence estimates and the deter- mination of military requirements Today the military depart- ments develop separate intelligence estimates which exert a EXCLUDED FROM AUTOMATIC 000 DIR 5200 10 DOES no'r APPLY substantial in uence on the identification and justification of their own force requirements This process may well mean that the estimates and requirements statements of the separate Services do not provide the optimum basis for developing the total military posture of the United States The principal objectives sought were to eliminate these deficiencies and to strengthen the capacity of the Department of Defense to carry out its principal intelligence mission -- the collection and production of military intelligence Upon careful evaluation the organizational solution which seemed to offer the most promise for achieving these objectives and for implementing the many Kirkpatrick Committee recommendations applicable to the Department of Defense is the creation of a Defense Intelligence Agency This solution should also facilitate DoD's support of the entire national intelligence community In particular the DIA should provide improved intelligence support to the Joint Chiefs of Staff and the unified combatant commanders Moreover this solution is consonant with the expressed intent of the Congress in adopting the McCormack Amendment to the 1958 Defense Reorganiza- tion Act More effective management and allocation of critical intelligence resources should be obtained with considerable savings in personnel publications and facilities The concept and plan of the DIA has been developed on the basis of recommendations submitted by the Joint Chiefs of Staff and endorsed by the Secretaries of the military departments The DIA will be responsible for the operation of a large part of the intelligence resources now assigned to the separate Services and the Joint Staff It will also review and coordinate the intelligence functions retained by the military departments DIA will assume the vital task of supplying military intelligence to the major com- ponents of the Department of Defense the United States Intelligence Board and other organizations in the national intelligence community It will not however interfere with conduct of the intelligence activities in the unified and specified combatant commands which will remain under the operational control of their respective com- manders It is contemplated that under the general supervision of I DIA some major intelligence activities such as personnel plant and installations security and intelligence training will be retained by the military departments Nothing in charter or terms of reference affects any of the functions of the National Security Agency NSA Five alternative locations for DIA were considered 1 Under the Joint Staff Under one of the military departments 3 Directly under the Chairman 4 In the Office of the Secretary of Defense and Under the JCS After consideration of the possible advantages and disadvantages of each of the first three alternatives none appeared to offer a viable solution The final choice lay between 4 and 5 Alterna- tive 4 would establish a large operating organization in a staff office of the Secretary of Defense and would increase the number of offices which report directly to the Secretary Moreover the intelligence function is inextricably linked to the strategic planning functions of the JCS and to the combatant responsibilities of the unified commanders On balance I have concluded that the best solution is to place DIA under the Joint Chiefs of Staff On 30 June 1961 at the request of Dr Killian a formal briefing on DIA was given to the Foreign Intelligence Activities Board Yesterday Dr Killian stated that he and other members of the Board were favorably impressed with the proposed plan and recommended its early adoption n z a lm cc Attachment 11 Financial Summary Increase Increase in in FY 62 NOA Strength in millions Arm Personnel and 05M 285 000 1618 Procurement 552 Total 2170 Navy and Marine Corps Personnel and Dan 131 000 619 Procurement 800 Total- 1 19 Air Force Personnel and'OsMI 63 327 329 Procurement #25 Total 754 TOTAL Personnel and 05M 2566 Procurement 1222 Total 479 327 4343 WIED MM l i a This document must not be 1 reproduced without permission Page of Pages of the originating office 00py of 100 Copies WM MI NEG FiEtr r ParEEna-nt -I 3 in EFFIEE OF THE PRESIDENT WW NATIENALEECIJRITY WASHINGTON $17 313f1 _Jirl-u-i 9 1 fitredid I5 - 54 '3 El n-3 15 1-41 - - i5Lg'l- I I i -1 731 in 751 I 14 Ilh'ii -- I I - 1 ffT'iI-f r Ami-5 - -- ii-Ed 11 - - Pursuant tE rEquEEt frEm thE DEpErtmEnt Er the ArEy End w1th thE Er thE' Department of thE Er REG 4 Conrdinatiun Ef FErEign IanrmEtiEE '15 hErEby dEwngrEdEd frEu thw dr CEnridEnt1E1 tE 13 JAFES S LAX Jr ExecutivE Secretary DECLAS IFIED Auth aw L- Em DatE' 1333 - - m o'im SECURITY COUNCIL -- fig WE 13 5 31151 -irir a' - err-M f December 9 1947 NOTE BEQEHF-EXECUTIVE SECRETARY g a i-r INFORMATION MEASURES v g SANACC 304 11 stt mgs gg ggpp NSC Action No 'll e at i 3 At its Second meeting the National Security Council re- ferred SANACC 304 11 toathe National Security Council Staff for revision in the light of the comments at the meeting The enclosed report has been prepared pursuant to that di- rective after consultation with representatives of the Departments of State the Army the Navy and the Air Force and of the Central'Intelligence Agency It is recommendedithat the National Security Council approve the enclosed report and authorize its submission to the President with'the recommendation that he approve the_ Conclusions contained therein and direct that they be implemented by all appropriate executive departments and agencies of the U 8 Government under the coordination of the Secretary 3g 1 537-1135 SOUERS Executive Secretary Distr bution he President - The Secretary of State The Secretary of Defense - The Secretary of the Army The Secretary of the Navy The Secretary of the Air Force The Chairman National Security Resources Board NSC 4 1 - -- --I- - a -- n-tn-u-I-a hi n u a n ia-n J- -v-H