from specialized sources. Likewise, all management responsibilities for the area are concentrated in my executive staff. The remainder of the functions are vested within the two Offices of the area: the Office of Intelligence Research and the Office of Libraries and Intelligence-Acquisition.

The Office of Intelligence Research consists of six research divisions; five of these are concerned with specific geographic areas, while the sixth is a functional and interregional research division dealing with problems not susceptible to area treatment. The Office of Intelligence Research also directs, controls, and coordinates the work of the production control staff, the external research staff, and the estimates group. The primary function of this Office is to provide long-term analysis as well as interpretation of day-to-day developments for operating and policy officers of the Department who deal with political, economic, informational, and international organizations affairs.

The Office of Intelligence Research relies on the Office of Libraries and Intelligence-Acquisition for the gathering, screening, distributing, and maintaining of intelligence materials and documentary information. These services are also provided to the remainder of the Department and to other Federal agencies.

Within the Office of Libraries and Intelligence-Acquisition are three divisions: (a) the Acquisition and Distribution Division which procures, screens, and distributes to end users a huge mass of raw intelligence from every available source; (b) the Division of Libraries and Reference Services which develops and maintains the Department's central collection of intelligence materials and its library; and (c) the Division of Biographic Information which provides for the collection, evaluation, recording, and maintenance of biographic information on foreign nationals whose careers and activities are significant in the interpretation of political and economic events abroad.

During the 5 years which have elapsed since our organization was established as a part of the Department, we believe we have made considerable progress in building an efficient, dynamic, intelligence organization. Very early in our experience, we learned that, as an intelligence organization, we must use constant vigilance to see that our products and services were actually responsive to the needs of our customers. We also learned that, if an intelligence organization is to be successful, it must not only "deliver the goods", it must, in fact, anticipate the need for them.

To assure the implementation of this principle, we have, over the years, invoked the assistance of several new management techniques. For example, we established an intelligence adviser in each of the major functional and geographic areas of the Department. These advisers not only alert us to policy develop ments but also assist in bringing the intelligence position to bear on policy determinations. We also undertook careful substantive programing designed to shape our intelligence-research products to the major foreign-policy questions confronting the United States. This has resulted in a more orderly planning of our work; it has proved to be an effective means of obtaining the guidance and comment of our "customers"; it has served to coordinate and integrate our research operations. We have made particular efforts to place our products in the form most useful to our customers. All too often in the past, valuable intelligence had been "lost" because it was buried in unwieldy reports. We attacked this problem directly by placing a high premium on brevity, simplicity, and clarity. In the case of complex problems, we required, nevertheless, a brief, succint summary of the findings or conclusions. We encouraged clear-cut, unhedged intelligence estimates. In short we left no stone unturned to put our products in the form most useful to the makers of policy.

Lastly, in order to guarantee that our products met and continued to meet the substantive needs of our customers, we undertook a program-still in its early stages of analyzing consumer reaction to them. By obtaining these reactions, we have learned much of how to make our products more useful, more timely, more effective in the formulation of sound foreign policy decisions.

During this 5-year period, we have also recorded a number of major substantive accomplishments. In accordance with the recommendations of the Hoover Commission, we established an estimates group consisting of mature experts, each possessed of a specialized area or functional skill. This group prepares intelligence estimates of major developments. We greatly expanded our sources of intelligence material, we increased the breadth and depth of our coverage of foreign radio broadcasts, foreign press and publications; we developed an extensive program of collaboration with universities, endowments, and other research organizations both here and abroad.

With the outbreak of hostilities in Korea, we adopted emergency measures to meet the specialized intelligence requirements which inevitably result from a state of hostilities. We were able, on very short notice, to establish an intelligence watch room staffed by our experts alerted for the slightest development of significance to the position of the United States or the United Nations. We established a series of special publications designed for the express purpose of speedily advising departmental officials on up-to-the-minute developments. We immediately initiated an expanded program of oral briefings, including a daily briefing of the Secretary on current developments. We established a special military briefing service. Lastly, through our estimates group, we produced a number of carefully evaluated estimates which have been of major influence both in departmental and interdepartmental determinations.

Any report on the health and progress of the intelligence organization would be incomplete without a reference to its place in the Federal intelligence structurewhich is today, in a very real sense, a team, a team under the leadership of the Central Intelligence Agency. On this team the intelligence organization of the Department has as its particular mission the fields of political, sociological, and certain aspects of economic intelligence. The other intelligence agencies of the Government have equally clear-cut roles. The over-all aim is that the United States shall have in the complex of intelligence organizations all the essential intelligence resources and in the Central Intelligence Agency a means of bringing those resources of knowledge and experience together. The ultimate objective is authoritative intelligence estimates on which the President and the National Security Council can rely in making the vital policy decisions with which they are faced.

This team, like any other, cannot function, authoritative estimates cannot be produced, unless all its members are healthy and capable. I consider that the intelligence organization of the Department of State is in such a condition, and you may be assured that we are resolved to discharge our team responsibilities fully and faithfully.

To carry out this responsibility we are requesting at this time funds sufficient to support 521 positions at an annual salary rate of $2,587,715.

APPROPRIATION REQUESTED

Mr. ROONEY. The request is for an appropriation of $2,587,715, for 521 positions, which is the same as the appropriation and number of positions for the current fiscal year?

Mr. ARMSTRONG. Yes.

Mr. ROONEY. I suggest that you comment generally on the work of the Special Assistant for Intelligence, and call our attention to matters that have developed during the past year which you feel would be of interest to this committee in considering the request for 521 positions.

Mr. ARMSTRONG. Yes, I will be glad to do that.

You have noted that the amount of appropriation and the number of positions are identical with the preceding year.

You would have expected that the workload for the Intelligence Section of the Department would have increased materially as the result of the international developments during the past year, and the latter is certainly true; not only the outbreak of hostilities in Korea in June imposed upon us a very substantial increase in work requirements and work output, but the entire step-up in tempo around the world preceding the Korean crisis and subsequent thereto has imposed upon us additional requirements for delivery of special assistance to the operating parts of the Department.

We have been able to meet those requirements, without an increase, by adopting a number of administrative and management techniques that have made the organization more flexible and have permitted us to serve at a higher rate of speed than might otherwise have been the

case.

HOOVER RECOMMENDATIONS ADOPTED

Mr. ROONEY. Have the recommendations of the so-called Hoover Commission, with regard to this phase of the activity of the Department of State, been fully complied with?

Mr. ARMSTRONG. They have, in full. Every recommendation of the Hoover Commission has been carried out, several of which were already in effect when I appeared before this committee last year, but several additional have been put into effect since that time.

I might mention one or two of them, as they do bear upon our ability to pin-point the requirements of the top officials and the operating officials of the Department.

We have established an intelligence adviser in each of the bureaus and the main functional areas of the Department.

Mr. ROONEY. You did that a year ago, did you not?

Mr. ARMSTRONG. We were in the course of doing that last year; it has been completed in the past year, and we have men in each of those jobs carrying on day-by-day liaison between the consumer, so to speak, and ourselves. We have completed the staffing of the estimating group that the Hoover Commission recommended, and that has been functioning now for months, and has been able to produce a number of significant studies that have been of value to the Assistant Secretaries, the Under Secretary, and the Secretary.

In addition, I and my immediate staff have been drawn more heavily into the immediate office of the Secretary by way of giving him daily a briefing on important developments in the political and sociological scenes and on the developments of the military situation in Korea and elsewhere.

All told, during the year I feel I can safely say that we have moved forward a great deal both from the standpoint of organization and in terms of fulfilling the requirements of the Department's operating officials, and that, I believe, will continue to improve.

FUNCTIONS OF INTELLIGENCE OFFICE

Mr. ROONEY. In view of the fact that we have a new member on this committee, you might briefly state what work you do in the Department.

Mr. ARMSTRONG. Our work is three general kinds: Those are really laid out in the presentation here, as falling into actually seven categories, the first of which is to provide general assistance to the Secretary on all matters where he must deal with intelligence, such as in his membership on the National Security Council which controls the coordination of all intelligence in the United States Government, and being the personal adviser to the Secretary in such matters.

Second, we are responsible for handling what we call intelligence coordination for the Department in intelligence matters, that is, coordination with the three military intelligence services, the Central Intelligence Agency, the Atomic Energy Commission, and to a limited extent, insofar as it affects foreign intelligence, the FBI.

Third, we carry the responsibility for special liaison; that is, obtaining highly sensitive and specialized reports from other agencies for the Department, seeing that they are properly handled within the Department; and we conduct external research activities; that is, trying to

farm out to private institutions, universities, and so on, work that can be done by them which would save the Government the cost of doing it. Mr. ROONEY. What sort of work? I understand and the other members understand, but our new member could not be expected to understand very much from the generalities contained on page 31 of the justifications.

SPECIALIZED RESEARCH

Mr. ARMSTRONG. Well let me be more specific, then.

In the external research function we seek to use the skills and manpower that the universities and the private institutions, research institutions have and which can be brought to bear on problems affecting the Department, primarily those of political, economical, and sociological

Mr. ROONEY. Give us an example.

Mr. ARMSTRONG. An example would be a study of the tribes and tribal customs in Burma, where an anthropologist is required who has been there, lived there, and knows the body of facts that are available and could prepare studies that would not have to be classified but would add materially to our knoweldge of the political scene in Burma. Mr. ROONEY. Do you have universities and research institutions do any work in connection with classified matters?

Mr. ARMSTRONG. In very few instances. We have arrangements with three or four where they have provided the physical facilities, and where they handle classified material, where their staff has been thoroughly investigated by the Department's security people as fully as the employees of the Department.

Mr. ROONEY. Is there an FBI investigation of those people?

Mr. ARMSTRONG. Yes. That would be for whatever the Security Division of the Department requires, which does include full investigation by the FBI.

Mr. ROONEY. In every instance?

Mr. ARMSTRONG. I would have to refer that to Mr. Humelsine, but I think it does.

Mr. HUMELSINE. I do not think so, Mr. Chairman; I mean, using the FBI in each instance. Of course, I cannot speak specifically, but I think it would be quite possible we would put our own security man on the investigation, and we take the responsibility for clearing people for that work just as we do for most of the employees of the Department.

REFERRAL OF CLASSIFIED MATERIAL

Mr. ROONEY. Have you referred any classified material to the Institute for Pacific Relations?

Mr. ARMSTRONG. NO.

Mr. ROONEY. Or any similar organization?

Mr. ARMSTRONG. Not to my knowledge.

Mr. ROONEY. To whom have you referred classified material? Let

us put it that way.

Mr. ARMSTRONG. We have one contract with International Public Opinion Research, Inc.

Mr. ROONEY. Where is that located?

Mr. ARMSTRONG. I believe it is in Princeton.

It is known as the IPOR; it is a classified contract.

We have another one with Harvard University.

We have one with MIT. That is all. Three institutions.

Mr. ROONEY. Do you wish to make any further description of your operations?

Mr. ARMSTRONG. Another large activity is that of collecting and distributing throughout the Department the raw intelligence information that comes in from the field and from other intelligence units. Mr. ROONEY. Where do you get the biggest bulk of your intelligence?

Mr. ARMSTRONG. The bulk of the raw intelligence comes from the Foreign Service, from the entire foreign establishments of the United States, diplomatic and consular. They provide us with most, the largest part, of the raw information that we use.

Additional information comes through the military collection system, through exchange with friendly governments, of which there are few in the category with which we would exchange, and through the collection abroad of a considerable volume of periodicals, newspapers, published magazines of one kind or another.

RELATIONSHIP WITH CENTRAL INTELLIGENCE AGENCY

Mr. ROONEY. Will you explain your relationship to the Central Intelligence Agency?

Mr. ARMSTRONG. Yes. The Central Intelligence Agency is the agency created by statute to coordinate all Government intelligence. We are one of those agencies coordinated by it. We meet with the Central Intelligence Agency, and have been meeting with General Smith, and we have been working with and cooperating with them extremely closely. We engage at certain times in the production of what is called national intelligence by contributing to it the political and politico-economic sections of the intelligence estimates.

Mr. ROONEY. Have you ever been requested by other intelligence agencies to take assignments with regard to that particular matter? Mr. ARMSTRONG. Yes; we have, fairly frequently, and we have complied with the requests.

PERSONNEL FOR BIOGRAPHIC INFORMATION

Mr. ROONEY. How many people do you have working in the Division of Biographic Information?

Mr. ARMSTRONG. We have 53 on duty, and we have an authorization for 53; I think they are all on duty.

Mr. ROONEY. How many officers and how many clerks?

Mr. WILBER. I have it over-all for each office. Is that all right? Mr. ROONEY. No. I am now concerned specifically with the Division of Biographic Information. The reason I ask the question is because I have been noticing it now for several years, and I wonder if by now you should not have the biographies of everybody all over the world and not now need to carry on an office with 53 people each year.

Mr. ARMSTRONG. That is a good question.

Mr. ROONEY. I think it is.

Mr. ARMSTRONG. We have at the present time biographies in our central files on approximately 350,000 people, all foreigners, and we