197. Memorandum for the File0

On 16 July Mr. Clifford met Mr. Houston and Mr. Lay from the Central Intelligence Group, in his office and discussed with them a proposed bill for the establishment of the Central Intelligence Agency. Commander Elsey was also present.

The basis of the discussion was the draft bill1 which had been submitted by General Vandenberg to Mr. Clifford for comment, and Mr. Clifford’s memorandum in reply of 12 July 1946.2

Mr. Clifford pointed out that it was not the President’s original intention that a new agency be created3 and he remarked that it appeared that the proposed bill was departing from the President’s intention by establishing a separate and sizeable government agency. Mr. Clifford also remarked that the President had intended that his letter of 22 January 1946 would provide a workable plan for the Central Intelligence Group. Mr. Clifford than asked if experience had shown that the plan outlined in the President’s letter was not workable.

Mr. Houston and Mr. Lay discussed at some length the administrative difficulties which the Central Intelligence Group has had due to its being a step-child of three separate departments. They stated that experience showed that enabling legislation was necessary in order that the Central Intelligence Group could operate as an integrated organization. They also informed Mr. Clifford that experience had shown that the Central Intelligence Group should become an operating agency with a large staff of Intelligence experts.

After lengthy discussion, it was agreed by all present that the original concept of the Central Intelligence Group should now be altered; experience had shown that it would be ineffective if it remained only a small planning staff and that it must now become a legally established, fairly sizeable, operating agency. Mr. Clifford stated that he would discuss this new concept with Admiral Leahy and the President.4

There followed a detailed examination of the draft bill in light of the comments and criticisms made in Mr. Clifford’s memorandum of 12 July. [Page 526] Mr. Houston and Mr. Lay agreed that all of Mr. Clifford’s points were well taken and they agreed to rewrite the bill incorporating his suggestions.

It was apparent during this part of the discussion5 that neither Mr. Houston nor Mr. Lay had given much thought to the words which they had used in drafting the bill. Both stated that large parts of it had been extracted from other proposed legislation or other documents relating to Intelligence. In their hasty preparation of the draft in this scissors-and-paste method, they had failed to grasp the essential point that the National Intelligence Authority should be a planning group and the Central Intelligence Agency an operating group.

Mr. Clifford pointed out to them the probable opposition which a proposed bill would arouse if great care and thought were not given to the choice of words used.

Mr. Houston and Mr. Lay will prepare a new bill and send it to Mr. Clifford for comment.

G.M.E.
  1. Source: Truman Library, Papers of Clark M. Clifford, National Military Establishment: CIA. No classification marking.
  2. Not printed. (Ibid.) See the Supplement. A later draft is printed as an enclosure to Document 201.
  3. Not printed. (Truman Library, Papers of Clark M. Clifford, National Military Establishment: CIA) See the Supplement.
  4. This phrase which read, “Mr. Clifford pointed out that it was the President’s original intention that a new agency not be created” was amended by hand.
  5. No record of Clifford’s proposed discussion with Truman and Leahy has been found.
  6. The phrase “during this part of the discussion” originally read “during the lengthy part of the discussion”; it was amended by hand.