The Central Intelligence Agency Recent Titles in Understanding Our Government The Environmental Protection Agency: Cleaning Up America's Act Robert W. Collin THE CENTRAL INTELLIGENCE AGENCY tiQti Security under Scrutiny Edited by Athan Theoharis with Richard Immerman, Loch Johnson, Kathryn Olmsted, and John Prados Understanding Our Government Greenwood Press Westport, Connecticut • London Library of Congress Cataloging-in'Publication Data The Central Intelligence Agency : security under scrutiny / edited by Athan Theoharis with Richard Immerman... [et al.]. p. cm. — (Understanding our government, ISSN 1556-8512) Includes bibliographical references and index. ISBN 0-313-33282-7 (alk. paper) 1. United States. Central Intelligence Agency. I. Theoharis, Athan G. II. Immerman, Richard. III. Series. JK468.I6C465 2006 327.1273—dc22 2005020914 British Library Cataloguing in Publication Data is available. Copyright © 2006 by Athan Theoharis, Richard Immerman, Loch Johnson, Kathryn Olmsted, and John Prados All rights reserved. No portion of this book may be reproduced, by any process or technique, without the express written consent of the publisher. Library of Congress Catalog Card Number: 2005020914 ISBN: 0-313-33282-7 ISSN: 1556-8512 First published in 2006 Greenwood Press, 88 Post Road West, Westport, CT 06881 An imprint of Greenwood Publishing Group, Inc. www.greenwood.com Printed in the United States of America The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z39.48-1984). 10 9 8 7 6 5 4 3 2 1 Contents Series Foreword IX Acronyms xi Introduction xvii Athan Theoharis 1 • A Brief History of the CIA 1 Richard Immerman U.S. Intelligence from the Revolution through World War II 2 The Dissolution of OSS and the Origins of the CIA 3 The Creation of the CIA 9 The Early Years of the CIA, 1947-1949 11 The Central Intelligence Agency Act of 1949 and Reorganizing the CIA 14 The Origins of CIA Covert Operations 15 The Directorship of Walter Bedell Smith 18 The Directorship of Allen Dulles 22 CIA Covert Operations during the 1950s 25 The Origins of CIA Technical Intelligence—the U-2 and CORONA 28 The Bay of Pigs Invasion 34 The Directorship of John McCone and the Cuban Missile Crisis 37 The CIA and the Vietnam Crisis 40 The Nixon Presidency and the CIA 46 Watergate and the Church and Pike Committee Investigations 49 The Post>1975 Debate over the CIA 52 The Iranian Hostage Crisis 54 v * Contents President Reagan "Unleashes" the CIA 57 The Iran-Contra Affair 59 The End of the Cold War and the Collapse of Communism 61 Afghanistan, Iraq, the Balkans—and the CIA's Post-Cold War Role 63 A New Threat—Islamic Terrorism 67 The September 11, 2001, Terrorist Attack 70 The Second Iraq War 71 Reorganizing the Intelligence Community 79 2. The Liaison Arrangements of the Central Intelligence Agency 85 Loch Johnson The Organizational Framework of American Intelligence 85 The National Security Council 86 The Director of National Intelligence 86 Accountability 88 The Organization of the Central Intelligence Agency 89 Cultures in Conflict 90 The Directorate of Intelligence (DI) 90 The Directorate of Operations (DO) 90 The Directorate of Science and Technology (DS&T) 91 The Difficulties of Managing the CIA 92 CIA Liaison within the Executive Branch 93 The White House 93 The Policy Departments and Agencies 94 The Intelligence Community 95 Dikes to Contain Centrifugal Forces 96 Gorillas in the Stovepipes 97 Liaison Challenges within the Executive Branch 98 Value Added 98 The Importance of Marketing 99 Rapport, Yes—Politicization, No 101 CIA Liaison with the Legislative Branch 102 A Failure to Communicate 103 The Key to Successful Legislative Liaison: Executive Branch Cooperation 105 The Barrier of Excessive Secrecy 106 Member Motivation 107 Reporting Requirements 108 Co-optation 109 CIA Liaison with Foreign Intelligence Services 110 The Raison d'Etre for Intelligence Cooperation 110 The Scope of Foreign Intelligence Liaison 111 Counterintelligence Liaison 113 vi Contents * Covert Action Liaison 113 The Risks of Foreign Liaison 114 Liaison with International Organizations 116 3 • A World of Secrets: Intelligence and Counterintelligence 121 John Prados Early Cold War 123 Intelligence Comes of Age 127 Technological Spying: The U-2 and Other Interception Projects 127 The Cuban Missile Crisis 130 The CORONA Project and Communications Interception 131 The Polyakov Defection and HUMINT 131 The Directorate of Science and Technology 132 Vietnam 134 Retrenchment and Reagan 138 The Team B Exercise 138 The People's Republic of China 139 Soviet Defense Capabilities 141 Central America, the Nicaraguan Contras, and Afghanistan 144 1985—"The Year of the Spy" 145 Brave New World 146 The New World of Snakes 148 The Counterterrorist Center 148 The Clinton Presidency and the New Terrorist Threat 149 The September 11, 2001, Terrorist Attack, the Iraq War, and the Intelligence Reform and Terrorism Prevention Act 152 4 • A New Agency: The Origins and Expansion of CIA Covert Operations 155 Athan Theoharis Origins of CIA Covert Operations: NSC 4A, NSC 10/2 156 Office of Policy Coordination and the Central Intelligence Agency Act of 1949 158 Iranian and Guatemalan Coups 159 NSC 5412 162 South Vietnam, Laos, Indonesia 164 Bay of Pigs and Operation MONGOOSE 167 Assassination Planning: Congo, Dominican Republic, South Vietnam, Chile 169 Congress for Cultural Freedom, National Student Association, Operation CHAOS 172 Hughes-Ryan, Angola, Intelligence Oversight Act 176 vii * Contents Iran-Contra 179 Terrorism, al Qaeda, the Kean Commission 185 5 • Lapdog or Rogue Elephant? CIA Controversies from 1947 to 2004 189 Kathryn Olmsted The Creation of the Agency and the "Internal Security" Ban 190 The 1950s: Unquestioned Support 192 The 1960s: A New Era of Scrutiny 193 Operation CHAOS 195 The Kennedy Assassination and CIA Conspiracy Theories 196 The CIA and Watergate 198 The Post-Watergate Investigations and the "Year of Intelligence" 202 Frank Church and the "Rogue Elephant" 203 Otis Pike and the Imperial Presidency 206 Watchdogs and Whistle-Blowers 208 Internal Conflicts: Team B, the Helms Perjury Case, and the Nosenko Affair 211 The "Year of the Spy" 213 The CIA and Iran-Contra 215 Dark Alliance: The CIA and Drugs 221 The Failure of Intelligence before 9/11 222 The "Sixteen Words" and Intelligence Manipulation 225 Conclusion 229 6 • Biographies of Important CIA Administrators 231 Richard Immerman with Kathryn Olmsted, John Prados, and Athan Theoharis 7 • Chronology of Key Events 307 Athan Theoharis Annotated Bibliography 337 Athan Theoharis Index 357 About the Editor and Contributors 373 viii Series Foreword Since the founding of our country in 1776, the U.S. government has trans formed significantly. Changing societies and events, both domestic and in ternational, have greatly affected the actions and development of our country. The Industrial Revolution, World War II, the civil rights movement, and the more recent "war on terrorism" are just a few of the events that have changed our government and its functions. Depending on the needs of our country at any given time, agencies are developed or terminated, their size and/or budget increased or decreased, or even transferred to another department within the government, in order to meet policy makers' objectives. Whether an inde pendent agency or part of the fifteen executive branch departments overseen by the president and the cabinet, each is given specific responsibilities and all are formed to fulfill an important role for the country and its people. The Understanding Our Government series was developed to offer an in- depth view of the most powerful, controversial, and misunderstood agencies of the U.S. government and how they have changed American society and, in some cases, the world. Well-known agencies frequently in the media spotlight, such as the Central Intelligence Agency and the National Aeronautics and Space Administration, are included, as well as lesser-known, but important, agencies such as the Bureau of Indian Affairs and the Forest Service. Written by experts on the particular agencies, including former employees or advisory committee members, each volume provides a historical overview of an agency and includes narrative chapters describing such aspects as organization, pro grams, significant events, controversies, key people, and influence on society, as well as additional topics tailored to the particular agency. Subjects vary greatly among the different titles. Depending on readers' interests or needs, some will be able to find information including the Central Intelligence Agency's role in the Cuban missile crisis, as well as its history of covert ix
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