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Minute Sheet WSSEEEcREr
October 23rd, 1951.

Mr. M:
Mr. Ignatieff. &lt;

Mr—LePan ■ brr
Mr. Gampbell.&amp;C

There are three supplementary questions
which came up during my talks in Ottawa which I
forgot to include in my earlier memo on Wiser
matters.

First, External Affairs has received no
information on the discussions between General
Walsh and A.V.M. Miller about the possibility of
distinguishing between routine flights to or
over Canadian territory with atomic weapons and
politically significant flights. I told- them
that we had heard here from the State Department
that progress was being made, and I think that
they will get after the Airforce in Ottawa.
Secondly, Mr. Dean's speech and some other
public statements, especially Senator Lodge's
proposal that atomic weapons be used in Korea,
had caused a slight concern in Ottawa that we
might be confronted with an early proposal.
I found that the messages I had sent just before
leaving for Ottawa, based principally on Mr.
Lovett's speech of October 15th (copy attached),
had removed this concern for the time being,
and I was not pressed on the point at all.

Thirdly, I brought up the questions which
had been mentioned in the Wiser Consultations
and in other connections about the point at which
the Government would feel compelled to consult
Parliament if an act of aggression took place.
Mr. Pearson was very emphatic that the Government
had and would exercise the authority in case
of need to authorize without parliamentary consultation the use of facilities in Canada for
operational purposes by the S.A.C., as well as
to permit the Canadian contribution to the Integrated Force to go into action. He and others
stated flatly that there was no constitutional
obligation to consult Parliament even about a
declaration of war and that the political obligation was to summon Parliament as promptly as
possible if it was not in session when the
emergency arose.

/N
HHW: mgm

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                    <text>Canadian Foreign Intelligence History Project
GAC ATIP A-2022-00326
GAC Special Registry File 29-1-1-Canada Part 2

DEA Glazebrook to Heeney 26 October 1951
"Memorandum on a Canadian Secret Intelligence Service"
23 October 1951

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Urk,
L,(41 A, 11
,,
-

eJOA d••)

fence Liaison ( 2)/G.deT .Glazebrook/ML
October 26, 1951.

jA,
/.

TOP SECRET

4, ?

MEMORANDUM FOR MR.

You will recall that when Mfr. Easton was
here in July he made some suggestions as to the manner
in which a secret intelligence service could be established
in Canada.
We had previously discussed this question several
times in general terms , but, with Mr. Easton 's ideas as a
starting point, we were able to draft the attached memorandum.
It is intended to indicate the purpose of a secret intelligence service , the way in which it could be organized,and
the job it would do.
It is not intended to be an argument
in favour of such a service , but merely to outline the
problem.
2.
I should like, if you agree, to hand copies of
this memorandum to Mr. Robertson and to Superintendent
McClellan.
No doubt various suggestions will be made
which would lead to a further draft and at that stage the
question might be brought up for decision.
3.
If it were decided that a secret intelligence
service was to be started in Canada, I think there is no
doubt that it would have to be placed within this Department.
Mr. Easton suggested that, if there were tentative approval,
it would be useful to send one or more officials to make a
more detailed study of M.I .6 and consequently more detailed
suggestions for the Canadian service . Perhaps concurrently
we could set up here a small office group as suggested in
the memorandum . At some early stage also it would be
necessary to send personnel to M.I .6 for training.
4.
As you know , this is the only form of intelligence
in which Canada has not participated . I am not arguing in
favour of it, although I think it would have advantages, but
rather suggesting that it would be helpful to reach a
decision on whether or not we should initiate an S.I.S.

r•r
Defence Liaison Division ( 2)

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F:

•r•

TOP SSCBET
October E3, 1951.
MUMANDUIii ON A CANNADIAH SLCB&gt;sT
INTSLLIG-12 1
3 ,MMIM

"Sector, my heart and manful spirit urge
me to go near. the swift-raring ships, and
spy out all ... To thee I will prove no
vain spy ... for I will go straight to the
.camp., until I may ooze to the ship of
Memnon where surely the chiefs are like
to hold council."
- Iliad, Book Z.
"It seems to us to boil down to this: when
all the mystery and glamour Is- removed,
espionage consists simply of finding a guy
who knows sanething you want to know and
having him tell'you about it."
- The Nett Yorker.

I

INTRODUCTION

It may be assured that, for an indefinite period,
the first intelligence requirement of Canada and other
Western powers will be a knowledge of the potential of
Soviet armed might and the intention to use it. Closely
allied with this requirement is a need for intelligence
on the Soviet.oapability of causing internal disruption
within the borders of non-Communist States, and . the
particular targets within- Canada against which these
weapons may be directed.
Through diplomatic missions and service attaches
abroad, Canada enjoys the usual facilities for the overt
collection of intelligence. But the intelligence which
can be obtained by observers .of this.kind is limited.
Valuable intelligence is to be obtained by clandestine
methods, and,this nay be more valuable.precisely because
it is protected from the passive observer.. At present
we obtain'somie .olandestine intelligence'through countere1
spioaage.; but have -so- tar. made. no. attempt to collect
intelligence by the use of a secret intelligence service ••
:that ie, a servioe-'uaacknouledged by the. governnent but
devoted on itim- behalf to the collection or intelligence
by secret agents working where inch intelligence is to be
-found.
The purpose of these notes is to ezamine in what way
such a service is - a. unique ,.
provider of Utelligenoe s' how
it might'benefit the Government of Genada, and ho*- such
a service could be 'established and operated.

, ',

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.

II

TO VAM OF A SECRET INTB 11

1 ' 11 SEMCE

There are many historicalreferencesto the use
of espionage by great powers faced with rivals to their
power s and it is mentioned by both Xenophon and Caesar.
Yore modern examples ere to be found in Walsin-*- to
operations for Elizabeth against Spain , where many- of
the advanced techniques used bear comparison with the
methods of present day Sgrvicee ;Biohelieu+s•extensive
organisation under .
the Mminenoe grise „ Pore Joseph;
and Frederick the Greatfi and Napoleon Bonaparte•s
effective services . The present intelligence services
of the great powers have continued without a break at
least since the first World War , and the,Soviet Secret
Services made their appearance shortly after the
revolution. Since the clandestine collection of intelligence is largely unacknowledged and often unrecorded,
and since nevertheless there are numerous historical
references to it, it is perhaps hot unreasonable to
.assume that gover=ents have made use of it throughout
history.
Within the limitations of what is possible , a•seoret
intelligence service will provide the particular information which is demanded of it . Since it does not
rely- upon chance observation or fortunate encounter, is
actively and.not passively engaged in the collection of
intelligence , it can be asked -to provide precisely that
,information which a government may require at any given
time. It does not, as it were, stand with a basket and
wait for windfalls.: it climbs into the tree by night and
picks what is required.

V/

It must also be emphasised that the intelligence which
a secret service is able to provide will usually be continuing, since once informers become involved it is not
easy for ' them to disengage themselves even if they wish
to do so. Most other sources of intelligence tend to be
sporadic or haphazard , but a secret intelligence service
will maintain a continuity of intelligence which will refleot whatever changes may take place in the target of its
operation. It is not therefore a question of the sudden
appearance of a Gouzenko who ceases to be a useful source
of intelligence when his interrogation is completed. A
source of this kind is of great value, but his usefulness
is enormously increased if he remains within the enemy vamp
and continues to provide information on the intentions of
our opponents . It is to this end that a secret intelligence
service works, and though it will rarely secure an informer
as well placed as Gouzenkc was, it will provide a continuous flow ofintelligence of as high a calibre as.circumstanoes permit:

I

It is of course ,
true .that .
diplomats and service
attachis do provide a regular-service of information from
posts abroad. ' But if these observers stay within their
terms:bf reference their opportunities for collecting intelligence are limited and must largely consist of what is
freely told them (with the occasional useful indiscretion)
or what they can openly observe. A clear example of, the'.
essential difference between this kind of information and
the intelligence provided by a secret intelligence service
may be found in a case which occurred in Switzerland during

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30

the last war.
A German foreign office official who
performed regular courier duties between Berlin and
Berne was induced by a secret intelligence service to
work for the allies.
For a great part of the war he
brought regularly to agents of that service on his
courier runs a continual provision of German secret
official documents which could only have been obtained
by these clandestine methods.
If this is compared with
the limited information which might perhaps have been
obtained via Van Papen from the Turkish Foreign Office
through diplomatic channels, the value of the clandestine
method is apparent.
The unique value of intelligence provided by a
clandestine service then is simply this:
it is information which a goverment -does not wish to be known because
a knowledge.of it in the hands of an outsider is damaging
to its interests.
It is precisely this information which
is worth having.
III

THE VAIBE OF A SECRET INTELLIGENCE SERVICE TO CANADA

There would now appear to be valid reasons why Canada
should play a part in the collection of secret intelligence
by the formstion'of secret service of limited size and with
limited objectives.
The security of Canada cannot be properly maintained
against penetration by Soviet agents unless the agency
charged with this defence is informed of the organisation,
methods, activities and personnel of the two chief Soviet
intelligence services. Both these services are world-wide
and the fluid international character of their operations
is shown clearly enough in the case of Iguacy Witzak alone,
where a Soviet agent carrying false Canadian papers worked
in the United States against targets in Japan.
Information which is obtained today concerning Soviet intelligence
operations in Western Europe may prove in the future to
be of direct value to the security of Canada.
Because of the effective contribution made by the
Special Branch of the R.C.M.P. in the field of counterespionage, information directly and immediately concerning
the security of Canada is made available to Special Branch
of K.I.5 and the F.B.I. ( the Security Services of the II.g,
and the U.S.A.) in return for similar information exchanged
by Special Branch.
Some general information concerning
Soviet intelligence operations outside Canada is also
made available to Special Branch, but there remains a
great deal of valuable intelligence of this kind which
f✓ does not find its way to Ottawa because there is no
Canadian service directly concerned with operations of
this kind outside the borders of Canada.
A Canadian secret
intelligence service would be able to command an exchange
of this intelligence in scme.detail, and since counterespionage operations are most successfully mounted from
the fullest knowledge of the latest targets and methods
of the enemy, Special Branch would in this way be assisted.
Experience has shown that a close working relationship between a security service, whose operations are

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. 40

defensive, and an offensive intelligence service is
invaluable and ,greatly-benefits both* services, An
outstanding example of this was to be- seen in the
handling of the .German agent "Garbo w in the United
Kingdom during the last Var. This agent - and indeed
the whole German agent network In.angland - was brought
under the control or M.I.5 without the knowledge of the
German service concerned. The network was- used to
present a deceptive plan to cover the Overlord landings
and was highly effective. The agent "Garbo"_was
originally recruited on the European mainland by M.I.6,
the British Secret.Intelligence'Service, and handed over
to M.I.5 to operate in London. "Garbo•s " regular visits
from London to his immediate'German masters in the
Iberian Peninsula were assisted by the M:I.6 organisation
within that area. Without the facilities of both services
the operation would have been severely hampered. There
can similarly be little doubt that a Canadian secret
intelligence service would assist the Special Branch in
its defensive operations and substantially contribute
to the security of the dominion.
It has been noted that Canada is able to exchange
counter-intelligence with-the U.&amp;., and the U.S.A. However,
Canada is not at present able to provide foreign intelligence and consequently the return fram other centres
is not as fall as Canada*s international position would
seem to require. Direct_participdtion by Canada in the
field of foreign intelligence would almost certainly
ensure an adequate and more certain provision of intelligence to Ottawa from other goverments - most
particularly if we were to assume in stages responsibility
for a limited geographical area from which other friendly
services might be eventually disposed to withdraw.
Our
position in friendly bargaining would then become more
firm than it is at present.
37

A CAAADIAF . SCCEET .IA4.'ELLIMN'CE SERYICE
(i) The Target
An intelligence service cannot be created
in a vacuum. It is an offensive weapon and
must be directed towards a specific target.
Certain.basio principles of operation ( largely
designed to protect the organisation from
disgster.) will apply to most clandestine
services, but the organisation will need to be
designed to attack the particular targets designated by the country it serves. It is
therefore essential to decide.- If only in general
terms, what the target of a Canadian secret intelligence service .might be.
Canada has not -at present the facilities
or manpower to attempt the collection of intelligence on a world-wide scale. Nor should we
attempt to compete with existing and well
established friendly services, but rather to
J assist and complement them. Our object therefore
would presumably be a service covering only a

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5*

limited geographical area, but producing
sufficient original intelligence from that
area to command a reciprocal and larger.
supply of intelligence from other oentres with
which we should exchange our products.
A
Canadian secret service would therefore operate
its agents in a limited field, but would be the
recipient of intelligence from world-wide
sources controlled by other services.
Intelligence from- its own and other sources would
be received centrally in Ottawa and distributed
in a useable form to government departments.
An area not inconveniently placed geographically, comparatively easy to operate in,
and with a limited number of -intelligence targets
within its confines,
There
would not seem to be any other area so ideally
suited as a target for a Canadian secret intelligenoe service.
First.- it is_a_geographioal
entity and one in which'
1
1'
!-- _K 2 -The way
of life in the different countries is usually
sufficiently similar to enable representatives
to be moved easily from one country to another
without costly and time-consuming refresher
courses.
The area is large enough geographically
for it to represent a substantial contribution
on Canada's part and to ensure an adequate exchange with other intelligence services operating
in other part's of the world; but because of
IL __
-1-=
_ 6
w
and the conoentration of cultural and economic life in the capitals,
it can be covered mainly_by representatives in--the capital cities.
-"
1 -_ !
On
the whole therefore intelligence can•be gathered
with a comparatively modest budget. and it seems
to be an
a well within the scope of Canadian
potential.
There is an additional final advantage:
although it is an interesting and de"loping area,
it is not a vital one at present, and consequently
not likely to overtax our resources in the early
stages.
A minimum of five representatives with staff
would be required, posted perhaps as follows:
T

Additional representation in the subsidiary
capitals might be necessary. Within this framework the organisation would attempt:
(a) Penetration of local Communist Parties.

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6.
(b) Counter-intelligence directed against
. Soviet and satellite secret services.
(c) Collection of political, economic and
military intelligence from the countries
concerned.
All further recommendations in these notes will be
made on the assumption that this limited target could
be acceptable, since it is not possible to make any
valid recommendations without some concrete objective
in view.
(ii) The Organisation - Stage I
An examination of the structure of a secret
intelligence service - of its working conditions,
expenditures, equipment, personnel, techniques, etc..
will be a necessary preliminary.
Air Commodore J.
Easton of the British Secret Intelligence Service
(M.I.6) has suggested that one or two senior Canadian
officials should spend some time examining the facilities
of the British Service, and on the basis of this
examination report to Ottawa on the probable requirements of a Canadian Service.
A similar investigation
was made by representatives of another dominion and
their report resulted in the formation of a secret
intelligence service which is now already in operation.
We should be well advised to take advantage of this
offer.
1$aston has also_informed ns that 3[.I.6 have
'
T

-_MF

I
The question of the secret financing of an intelligence
service is complex. An examination of this problem,
together with that of what gover= ent department
should provide the cover essential for such a service,
has been veiled in the decent obscurity of an appendix.
We need only note here that sooner or later funds
will have to be provided, and that the provision of
them will be equally tiresome later as now.
Once the preliminary report had been accepted
and financial problems resolved, recruiting and the
training of staff could begin.
Canada has very few
trained intelligence officers.
A certain mininum
knowledge can be acquired from a training course,- but
a capable officer can be made by only experience in
the field under careful guidance. Y.I.6 has offered
to train Canadian staff both in training coursesand- y subsequent employment in oll
b
This would be the best training ominadte.
A minlaup
of two and preferably three years overall training would
be required to produce officers capable of assuming
the responsibility of directing operations from a field
station.
It is of course essential that people selected
for this training should be of high calibre, and salaries
and conditions be designed to attract such men.
Once the minimum two-year training period for
officers had begun, Y.I.6 should immediately be asked
to provide copies of all intelligence,reports produced

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?.
by
To receive this intelligence a small Canadian
centre would be established in Ottawa - probably
as part of a division of the Department of
External Affairs (see Appendix ).
This centre
would consist almost entirely of clerical staff
and would begin to build from the material received
the essential intelligence records vital to the
Canadian service when it began its operations.
While there are few trained Canadian intelligence
officers , there exists a considerable number of
able Canadian women clerks who have had years of
experience in secret intelligence work during World
War II both in M.I.6 headquarters and in the field.
A number of these could easily be reassembled.
There are also one or two Canadian women officers
at present .
employed by M.I.6, and no doubt one of
these could be reclaimed to run the centre in its
early stages.
Collation and distribution to goverment departments of the intelligence received frm M.I.6's
.• .
could begin within a few
months . Thos the housing , primitive machinery, and
records of the service would have begun and would
continue in much this form for two years.
Once the
machinery was operating satisfactorily in Ottawa
and govel , ent departments are accustomed to handling
this type of intelligence regularly , Canada would
probably wish to ask M.I .6 to provide intelligence
from other geographical areas of greater interest.
Thus , apart from the training of a limited
number of officers , Stage I•of the organisation
envisages no commitments outside Canada but should
begin to provide a useful flop of intelligence from
United Kingdom sources.
No doubt at sane point
during this stage relations would also be established
with the Central Intelligence Agency in Washington.
(iii) The Organisation - Stage II
The second stage of the organisation.of a
Canadian secret intelligence-service - the commitment
_ — of_officer$_to the field l
We can confidently anticipate that requirements in other parts of the world would cause
M.I.6 to welcome an opportunity to withdraw their
officers.
Thus we would inherit a well-established
group of informants , and while there would certainly
be some casualties, and while Canadian officers
would wish to develop new sources, it would be shortsighted not to build on the existing facilities.
In two to three years , when the centre in
Ottawa had become established, trained Canadian in.
telligence officers would begin to return from M.I.6,
during which time they would also have been required
to learn
Some of these
of'f'icers would be retainWto staff the headquarters

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s.15(1) - International

8.

in Ottawa; and others, with clerical staff
drawn Prow the existing staff in Ottawa. would
be posted to,j
These postings could
take place over a period as long as a year
until eventually the whole area was covered as
suggested earlier in_these notes with a minimum
__ of five stations at
Simultaneously arrangements would be made for a
close working relationship with the representatives of M.I.5 ( the British Security Service) in
■
The Canadian intelligence
officers' would work, of course, under the direction
and instruction of the headquarters in Ottawa.
Reports received would not only be distributed to
Canadian government departments, but also to
M.I.6 and C.I.A. headquarters in London and Washington
in order to ensure the fullest reciprocal return for
Canada of intelligence from all quarters of the world.

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TOP SEMT
A P•P E N D.1 X

COM AND FINANCING
The cover, and consequently the subordination, together with the financing of a secret
intelligence service present perhaps the most
difficult problem.to be faced because all its
facilities and operations will in the end depend
upon this. A- secret intelligence service ideally
has certain essential requirements and it will be
advisable to examine a minimum of these and attempt
to apply them to the Canadian governmental structure.
(i) A secret intelligence service must be secret.
This means that it must be absorbed as an
entity within an existing and overt organisation, and that only a minimum of people within
that organisation should be aware of its
functions. Public knowledge should never go
beyond the fact that a secret intelligence
service exists.
(ii) In order -to make ( i) above possible, a secret'
intelligence service should have certain admitted
and overt functions which it can and does perfalm
openly on behalf of the goverment, These functions
must fell within the general scope of the organisation to which it is attached and should be of a
nature to allow its officers to perform their
true and secret work with the minimum of .impediment.
(iii) The organisation to which a secret intelligence
service is attached must have representatives
abroad.
(iv) A secret intelligence service should be headed
by one senior official who has direct access to
a Minister. Control of operations by a committee
is absolutely Impossible. A committee of interested departments can be formed to indicate
intelligence requirements and priorities, but
the control of operations in the field must be
solely in the hands of the'service and its head:
(•) The finances of a secret intelligence service
cannot be opened to the detailed scrutiny of the
machinery of a Treasury. First, because security
requirements forbiitit, and secondly because the
nature of the operations of a secret intelligence
service are such that an examination of this
kind is largely profitless. The salaries, living
allowances, pension contributions, eta. of career
officers can be handled openly as a part of the
finances of the parent organisation to wwhich the
service is attached:- but a large part of the

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r=

IDS 29-1-1=CANADA vol.2 020

20

expenditures of a secret intelligence service
cbnsist of payments, bribes and rewards for
secret agents in the field.
There can be no
hard criterion by which payments of this kind
can be judged.
Frequently a wealthy agent
working for ideological reasons will provide
very high-grade intelligence and require no
payment beyond reimbursement of his out-ofpocket expenses:
on the other hand an agent
providing routine but useful intelligence may
have financial difficulties and must be paid
at a higher rate.
Payments of this kind must
of course be examined by the headquarters of
the service and.measured against the intelligence forwarded, but eventually the control
of expenditures must rest upon the high integrity of the officers in the field.
These requirements can now be applied to the
Canadian scene.
Point ( iii) above immediately limits
the number of departments capable of acting as the
'parent• organisation:
for practical purposes it
limits the choice to the Department of External Affairs
and the Department of National Defence.
Of these two ,
the former is by far the better choice because its
missions abroad offer adequate facilities for covering
an intelligence staff in the field.
The office of a
service attache abroad cannot easily absorb a staff
of some half dozen persons without arousing comment,
nor can an intelligence officer necessarily be expected
to hale the service background which may prove essential
for an adequate maintenance of his cover story.
External Affairs can also meet the requirements set out as ( i) above, though the overt functions
of the intelligence.officer in a mission abroad will
require careful consideration because they should if
possible be consistent with the functions of the
division within External Affairs in Ottawa which is to
act as the parent body.
How these requirements are to
be met must be a matter for later decision.
The salaries and allowances for career
officers and clerical staff would in this case be
provided by the Department of External Affairs and
their financial status need be no different from that
of other staff.
It is extremely difficult, without
detailed and up-to-date knowledge of present MJ A
operations_
:
Ato estimate the number
of persons who would be required initially and hence
the expenditures involved.
The following figures can
only be a very rough estimate:
In Stage I
In the Ottawa Centre
In training by M.I.6

-

1 woman officer
5 clerical staff
10 officers.

0003

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IDS

1-1-CANADA vol.2 021

3.

In Stage II
In the Ottawa Centre
_
In the field

-

5 officers
10 clerical staff
- 10 officers
10 clerical staff.

The increase of 5 officers in Stage II might be met by
the recruiting of acne Canadian officers or British
officers now resident in Canada who were fully trained
in World War II.
A few of these might be persuaded to
join a Canadian intelligence service.
The chief problem which remains is how to
obtain funds for the actual operations of the service.
However they are obtained, they certainly cannot be
accounted for publicly, and it would therefore seem
inevitable that eventually a vote of secret funds would
be required.
Initially, however, some temporary financial
arrangement with M.I.6 might be ;considered.

000073

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