Foreign Relations of the United States, 1969–1976, Volume XXXVIII, Part 2, Organization and Management of Foreign Policy; Public Diplomacy, 1973–1976

64. Memorandum From the President’s Assistant for National Security Affairs (Scowcroft) to President Ford¹

Washington, undated.

SUBJECT

• Intelligence Reorganization

The following are the details of the plan we discussed with you yesterday concerning the establishment of a new Intelligence Policy Review Committee.²

1. The NSCIC would be abolished and replaced by the Intelligence Policy Review Committee (IPRC). This Committee would be directly subordinate to you through the NSC. It would be chaired by the Assistant to the President for National Security Affairs, and include as permanent members: (a) the Secretary of State; (b) the Secretary of Defense; (c) the Chairman, Joint Chiefs of Staff; (d) the Director of Central Intelligence and (e) the Director, Office of Management and Budget. In addition, as observers, invited to participate as indicated by the particular subject matter, would be: (a) the Secretary of the Treasury; (b) the Counsel to the President; (c) the Attorney General; (d) the Chairman, PFIAB; and (e) the Director, FBI.

2. The Intelligence Policy Review Committee (IPRC) would have the following responsibilities: (a) to conduct a periodic review of national intelligence priorities and requirements; (b) to review the production of finished intelligence from the standpoint of relevance to policy concerns and overall quality; (c) to review annually the consolidated foreign intelligence budget, and to review the five-year projected budget; (d) to review the activities of all components of the intelligence community with regard to any malfeasance or misconduct; (e) to review annually, and more frequently if necessary, the program of the 40

Committee. In each of the foregoing areas of responsibility the IPRC would be authorized to require reporting from the relevant agencies and to make recommendations to the President and the NSC.

3. The IPRC would establish working groups as necessary to carry out the staffing of its responsibilities and to provide a working relationship with parallel committees or groups established within the intelligence community.

Simultaneously, the intelligence community’s overall leadership would be consolidated along the lines of Mr. Colby’s modification of Option IV:³

1. For the intelligence community a new Executive Committee would be established to replace the EXCOMM (NRO); the Intelligence Resources Allocation Committee, and absorb their functions; and to absorb part of the functions of the United States Intelligence Board (USIB). The EXCOMM would be chaired by the Director of Central Intelligence, and include the Deputy Secretary of Defense (Intelligence) and the Deputy Secretary of State (or the Under Secretary for Political Affairs). It would report to the President through the IPRC.

2. A second Deputy Director of Central Intelligence would be appointed with primary duties in the area of intelligence community coordination.

3. The USIB would be redesignated the National Intelligence Board, and would concentrate its work on substantive intelligence matters.

The 40 Committee

No changes would be required for the present in the 40 Committee, but it would now have some subordination, in terms of policy review, to the new IPRC; it would remain directly under your authority for operational purposes.

Committee on Domestic Terrorism

As we discussed, it would be difficult to assign the problem of domestic terrorism to the 40 Committee. As a first step, however, you could direct the Attorney General to establish an Interagency group to take over this area, and link it to the NSC through the participation of State, Defense, and the Assistant or Deputy Assistant to the President for National Security Affairs.

Next Steps

Most of the foregoing can be implemented immediately by a new memorandum from you to replace President Nixon’s memorandum of November 5, 1971. While the main features of the new organization could be thus authorized, it would be advisable to direct some more detailed plans within, say, 30 days from now. In other words, your directive would establish the foundation, but the working arrangements would be confirmed by you after some further staffing.

Attached is a draft to implement the contents of this memorandum.⁴

1. Source: Ford Library, James E. Connor Files, Box 57, Intelligence Community Subject File, Intelligence Community Decision Meetings, January 1976. No classification marking. The memorandum bears a handwritten date, January 11, and a handwritten notation, “Close Hold.” Printed from a copy that was not initialed by Scowcroft.
2. According to the President’s Daily Diary, a meeting on intelligence reorganization was held between 2:05 and 5:30 p.m. on January 10 in the White House Cabinet Room. In addition to the President, the meeting was attended by Rockefeller, Kissinger, Rumsfeld, Simon, Levi, Brown, Colby, Scowcroft, Lynn, Buchen, Marsh, Raoul-Duval, Associate Director of OMB for National Security and International Affairs Donald G. Ogilvie, Cheney, Counsel to the Vice President Peter J. Wallinson, Staff Assistant Raymond J. Waldmann, and Hyland. (Ibid., Staff Secretary’s Office, President’s Daily Diary) A briefing memorandum for the meeting was prepared by Marsh for Ford, January 9. (Ibid., John O. Marsh Files, Box 55, Intelligence Subject File, Intelligence Reorganization, Meeting with President, 1/10/76) No other record of this meeting has been found.
3. Option IV is summarized in Document 62. For Colby’s modifications, see Document 63.
4. Attached but not printed.