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In late November, the President told me that he had decided to establish by Executive Order the Directorate of Central Intelligence (DCI) as of January 1, 1946, and intended to name me as director. He told me one of the reasons for his decision was that he knew I found the notion of an American SS as repugnant as he did.
I told the President that unless the DCI was given authority to deal with significant Soviet intelligence efforts in the United States, such as the Manhattan Project, I would reluctantly have to decline the honor of becoming director, DCI.
The President said it was politically impossible for him to publicly or privately take any responsibili
ty for counterintelligence activities within the United States from Mr. Hoover and the FBI and give it to the DCI. He then pointed out in the draft of the Executive Order establishing the DCI the phrase “and perform such other activities as the President may order.”
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He said that if I were DDCI, he would order me to “investigate and deter any efforts by any foreign power to penetrate the Manhattan Project, or any such activity, and to report any findings and any actions taken, directly and only to him.”
The President said that he did not feel that Mr. Hoover would have any need to know of these orders. The President also said that in none of his conversations with Director Hoover had the subject of “Operation OST” come up, either by name, or as a general subject such as the rumor that we have been sending Germans to Argentina. The President said he found this odd, as I had told him FBI agents were in Europe attempting to question you, and others, on the subject. The President said he did not understand Mr. Hoover’s particular interest in Operation OST, as it is none of the FBI’s business.
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At this point in our conversation the President again offered me the directorship of the DCI. I informed the President that if I could name Lieutenant Colonel Ashton as deputy director, DCI–Western Hemisphere, with overall responsibility for Operation OST, and you as DDDCI-Europe, with responsibility for Operation OST in Europe, I would accept the honor he offered.
The President told me to tell you and Colonel Ashton that he feels confident you both can establish an amicable, cooperative relationship between the DCI and the FBI while at the same time keeping secret those matters which do not fall within the FBI’s areas of responsibility or interest.
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He also said to send you his best wishes.
With best personal regards,
Sidney W. Souers