Table Of Contentand
Intelligence
Counter-Intelligence
Operations
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Publishedby Allrightsreserved.Nopartofthispublicationmaybereproduced,
BisonBooksLtd storedinaretrievalsystemortransmitted,inanyform,byanymeans,
176OldBromptonRoad electronic,mechanical,photocopyingorotherwise,withoutthe
LondonSW50BA writtenpermissionofthepublisher.
England
ISBN0-86124-368-4
Copyright©1987BisonBooksLtd PrintedinHongKong
CONTENTS
CHAPTER
1
The Postwar Scene
6
CHAPTER2
Early Operations
22
CHAPTER3
The Battle for Intelligence
38
CHAPTER4
CIA Intervention
52
CHAPTER5
European
Activities
68
CHAPTER6
Struggle for the Third World
82
CHAPTER7
Indochina
106
CHAPTER8
Backyard Policies
126
CHAPTER9
Spying in the Seventies
144
CHAPTER 10
Tools oftheTrade
160
CHAPTER 11
Current Conflicts
172
Index
191
THE
POSTWAR
SCENE
The 14August 1945markedtheendofWorld New York in 1932. He had travelled exten-
War n, yet since that time a more secretive sively before the war in Italy and Germany
war has prevailed: the conflict between the as well as in Britain and France. A British
security services of the two superpowers, MI6 (Secret Intelligence Service) officer of
theUnitedStatesandtheSovietUnion. The the time said of him: ‘We can do more
activities of spies have sometimes been through Donovan than any otherindividual
presented as heroic and evenromantic, but ... he can be trusted.’ After Pearl Harbor
this secret war has been a bmtal parade of Donovan’s office changed its name and
ruthlessness, deceit andcallous corruption. jurisdiction: he now became head of the
The United States' Central Intelligence Office of Strategic Services (OSS) and his
Agency(CIA)wassetupasadirectresultof headquarters moved to London. Bythe end
American intelligence operations during ofthe warthe OSS employed 13,000people
World War II. In 1941, President Franklin D and had a budget of $37,000,000. There
Rooseveltrealizedthe needfora co-ordina- were four departments beneath Donovan -
torofintelligenceto protectthe interests of Support, Secretariat, Planning, and Over-
theUnitedStates, andheappointedWilliam seas Missions. Each ofthese tiers spawned
J Donovan (known in some circles as 'Wild a further array ofsectionsknown as 'opera-
Bill') to the position. Donovanwas from the tion groups'. Many future directors and
right background for the job. He had been deputy directors of the CIA started their
decoratedinWorldWarI, wasamillionaire, spying careers working for the OSS.
had served as assistant attorney general in TheOSShadgrownlargelyoutofthevital
the JusticeDepartment andhadalsorun as wartime need for overseas intelligence but
the Republican candidate for governor of Donovan was convinced of the need to re-
tainasimilartypeoforganizationforpeace- above:PresidentFranklin
time activities. In 1944he wrote a memo to DRoosevelt,whosetup
the President urgingthat 'the talent should theOfficeofStrategic
not be dispersed’. Service chiefs and J Services(0SS)inl941.
EdgarHoover(headoftheFederalBureauof, AfterWorldWarII,theOSS
Investigation - FBI) were not so keen to wouldevolveintothe
endorse a rival organization to their own modernCIA.
intelligence services. In some quarters it left:WilliamJ Donovan,
was muttered that Donovan was trying to millionaireheadofthe
create a ‘super spy organization’ and 'an OSSthroughoutitsfour
all-powerful intelligence service’. Unfor- years’existence.Known
tunatelyforDonovanRooseveltdiedinApril as‘WildBill’,Donovan
1945. Donovan’s style, the wildness noted mademanyenemies,and
inhisnickname, hadwonhimmanypower- bothheandhis
ful enemies including Harold Smith, the organizationquicklyfell
Budget director in President Truman's new fromfavorafter
administration. The OSS was disbanded Roosevelt’sdeathinApril
1945.
and some of its numerous departments
were reallocated within the State and War
Departments. Other sections of the OSS
simplyceasedtoexist. Theretainedunitsof
the OSS drifted for some time. Their new
parent organizations were unsure how to
KGB/CIA
usethem andtherewaslittle supervisionor
knowledge of quite what these ex-OSS
groups were up to.
By September 1945 Navy Secretary
James Forrestal realized that this state of
affairs could not continue for much longer.
He asked New York lawyer Ferdinand
Eberstadt to submit a report which would
define US requirements in the field of intel-
ligence. Eberstadt compliedand concluded
that the United States needed a 'machine
capableofwagingwaraswellaspeace’ As
.
a result ofthis report President Truman set
up the Central Intelligence Group (CIG),
warninghoweverthat 'this countrywanted
no Gestapo under any guise .’ The
. . .
TrumandirectivecameintoforceinJanuary
1946 AsacheckontheactivitiesoftheCIG,
.
Truman constructed a four-man command
group made up of the Secretaries of State,
War, and the Navy, and Truman’s personal
representative. It was to this group, known
as the National Intelligence Authority, that
the CIG had to report. To celebrate the
founding of the CIG Truman held a bizarre
party,presentinghisguestswithblackhats,
cloaks and wooden daggers - it seems
rather odd that an organization that was
only supposed to collate information and
not to spy should have been feted by the
President in this way.
The CIG’s first director, Admiral Sidney
Souers, did not take the job too seriously
8
THE POSTWAR SCENE
left:SoviettyrantJoseph
Stalin(secondfromright)
entertainsdiplomatic
representativesofhis
BritishandAmericanallies
in 1945.Smiling'Uncle
Joe'didnotshareWestern
hopesforademocratic
Europeafterthewar,and
by1947thewartimeallies
werebitterenemies.
left:HarrySTruman
succeededRooseveltas
USPresidentin 1945.
Duringtheimmediate
postwaryearshepresided
overthefoundationofthe
currentAmerican
intelligenceset-up,
includingtheCIAandthe
NationalSecurityCouncil
(NSC).
either. He left after six months to become gence organization, the Strategic Services above:LieutenantGeneral
presidentialassistantforintelligenceaffairs. Unit. Thisunitconsistedof1000people, 600 HoytSVandenberg,who
His replacement, however, was of a differ- of whom were attached to overseas field tookcontroloftheCentral
ent caliber. Lieutenant General Hoyt stations. IntelligenceGroup(CIG)in
Vandenbergwasanephewoftheinfluential Other departments brought under the summer1946andsoon
RepublicanSenatorArthurVandenbergand control of the CIG included the Office of turneditintoaflourishing
intelligenceandespionage
had ambitions to gain himself a fourth star Operations (OO), whichwasresponsiblefor
organization,the
and make something ofthe CIG in the pro- collecting information from American
immediateforerunnerof
cess. Within a very short space of time volunteers overseas, and the Foreign theCIA.
Vandenberg was able to recruit 300 extra Broadcast Information Service (FBIS). The
men. He also campaigned for the right to CIG also managed to liaise with the State
collectintelligenceinLatinAmerica, which Department and built close links with the
had formerly been the task of the FBI. In fledglingcode-breakerswhoseorganization
August 1946 Vandenberg succeeded in was laterto become known as the National
gaining controlfromtheWarDepartmentof Security Agency (NSA). At this stage the
the ex-OSS espionage and secret intelli- CIG had a staff of 2000.
9
