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Approval of clandestine and covert operations

The Directorate of Plans (DDP) was created in 1952, taking control of the Office of Policy Coordination, a covert action group that received services from the CIA but did not go through the CIA management. The other main unit that went into the Directorate of Plans was the Office of Special Operations, which did clandestine intelligence collection (e.g., espionage) as opposed to covert action.

Approval of clandestine and covert operations came from a variety of committees, although in the early days of quasi-autonomous offices and the early DDP, there was more internal authority to approve operations. After its creation in the Truman Administration, the CIA was, at first, the financial manager for OPC and OSO, authorized to handle "unvouchered funds" by National Security Council document 4-A of December 1947, the launching of peacetime covert action operations. NSC 4-A made the Director of Central Intelligence responsible for psychological warfare, establishing at the same time the principle that covert action was an exclusively Executive Branch function.

Period of committee supervision and relative autonomy

"CIA's early use of its new covert action mandate dissatisfied officials at the Departments of State and Defense. The Department of State, believing this role too important to be left to the CIA alone and concerned that the military might create a new rival covert action office in the Pentagon, pressed to reopen the issue of where responsibility for covert action activities should reside. Consequently, on June 18, 1948, a new NSC directive, NSC 10/2, superseded NSC 4-A.

"NSC 10/2 directed CIA to conduct "covert" rather than merely "psychological" operations, defining them as all activities "which are conducted or sponsored by this Government against hostile foreign states or groups or in support of friendly foreign states or groups but which are so planned and executed that any US Government responsibility for them is not evident to unauthorized persons and that if uncovered the US Government can plausibly disclaim any responsibility for them. NSC 10/2 defined the scope of these operations as: "propaganda; economic warfare; preventive direct action, including sabotage, demolition and evacuation measures; subversion against hostile states, including assistance to underground resistance movements, guerrillas and refugee liberations [sic] groups, and support of indigenous anti-Communist elements in threatened countries of the free world. Such operations should not include armed conflict by recognized military forces, espionage, counter-espionage, and cover and deception for military operations."

Note that guerilla warfare was outside this statement of scope, but such operations came under partial CIA control with NSC 10/5 of October 1951. See "Psychological Strategy Board" below.

To implement covert actions under NSC 10/2, OPC was created on September 1, 1948. Its initial structure had it taking "guidance from the Department of State in peacetime and from the military in wartime, initially had direct access to the State Department and to the military without having to proceed through CIA's administrative hierarchy, provided the Director of Central Intelligence (DCI) was informed of all important projects and decisions. In 1950 this arrangement was modified to ensure that policy guidance came to OPC through the DCI. During the Korean conflict the OPC grew quickly. Wartime commitments and other missions soon made covert action the most expensive and bureaucratically prominent of CIA's activities.

"Concerned about this situation, DCI Walter Bedell Smith in early 1951 asked the NSC for enhanced policy guidance and a ruling on the proper "scope and magnitude" of CIA operations. The White House responded with two initiatives. In April 1951 President Truman created the Psychological Strategy Board (PSB) under the NSC to coordinate government-wide psychological warfare strategy." It should be noted that the concept of putting special operations under a "psychological" organization paralleled the military's development of United States Army Special Forces, which was created by a Pentagon unit called the Psychological Warfare Division.

"NSC 10/5, issued in October 1951, reaffirmed the covert action mandate given in NSC 10/2 and expanded CIA's authority over guerrilla warfare" The PSB was soon abolished by the incoming Eisenhower administration, but the expansion of CIA's covert action writ in NSC 10/5 helped ensure that covert action would remain a major function of the Agency.

"As the Truman administration ended, CIA was near the peak of its independence and authority in the field of covert action. Although CIA continued to seek and receive advice on specific projects ...no group or officer outside of the DCI and the President himself had authority to order, approve, manage, or curtail operations.

Increasing control by CIA management

"The Eisenhower administration began narrowing CIA's latitude in 1954. In accordance with a series of National Security Council directives, the responsibility of the Director of Central Intelligence for the conduct of covert operations was further clarified. President Eisenhower approved NSC 5412 on March 15, 1954, reaffirming the Central Intelligence Agency's responsibility for conducting covert actions abroad" A series of committees, containing reprresentatives from State, Defense, CIA, and sometimes the White House or NSC, reviewed operations. Over time and reorganizations, these committees were called the Operations Coordinating Board (OCB), NSC 5412/2 Special Group or simply Special Group, Special Group (Augmented), 303 Committee, and Special Group (Counterinsurgency).