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                  <text>DL(2)/E.R. Rettie/crad
EXTERNAL AFFAIRS

_Jb
) . ! _W • \

AFFAIRES EXTERIEURES

MEMORANDUM
Mr. McCardle

TO

A

SECURITY
SituriH
DATE

FROM
Da

E.FL Rettie

REFERENCE
Rifirence

SUBJEa
Sujat

Status and Future of the Joint
Intelligence bureau.

S E C R E T
October 1 5 , 1965.

NUMBER
Numiro
DOSSIER

FILE
OTTAWA
MISSION

ENCLOSURES
Annum

DISTRIBUTION

In considering the documentation on this question,
including Mr. Houde's October 6 draft (on which you asked
for my comments), I have become more convinced than ever that
certain arguments against the incorporation of some or all of
JIB into this Department should be exhaustively considered
before a final decision is made as to what our departmental
recommendation should be. Although these arguments may not be
new, nor indeed necessarily persuasive, I think they should be
restated.
A major and natural reaction oi members of this Depart2.
ment is that the personnel of JIB would for the most part be
a very welcome and substantial addition to our research facilities,
The need for such an addition has long existed and there can be
no doubt that the expert and non-rotational staff of JIB would
orovide continuity and background for a departmental research
branch which we could only with difficulty find elsewhere.
Indeed rauch of the work which JIB has perforvaed for this Department in the Dreparation of background papers has been precisely
that which this Department would itself have undertaken if it "
had had the staff to do so. Nevertheless, my impression is that
this Department has a much more acute requirement for research
and continuity in political fields than in economic fields (where
there are several other government departments and agencies to
assist us). I am doubtful whether JIB personnel could ever be
expected, especially t1ose without forei.n service experience,
to'develop into a body to meet this need. It is a problem
which I believe this Department will sooner or later have to
solve by hard decisions'as to the allocation of our limited
staff of Foreign Service Officers.
.2

Ext. 407A/B1I.
(Admin. Services Dlv.)

000829

�- 2 -

SECRET

3.
It is also evident that economic research has not been
the whole function of JIBfs work concerning this Department.
Quite apart from the strictly military aspects of JIB's
intelligence work, there have been areas of their responsibility
such as the Arctic programme and debriefing of defectors,
travellers, etc., which we would not normally regard as falling
under the rubric of research. That is to say, the intelligence
produced by these JIB operations would be of interest to this
Department, but would not fall within the conceivable ambit of
our External operations. It seems unlikely to me that these
activities could ever become the responsibility of this Department, even though administratively we could find some means for
permitting JIB to continue to function as a semi-autonomous
unit of this Department, at the same time I doubt whether
certain of these functions such as the interrogation of defectors
and travellers, etc. could simply be transferred to any other
government department. So far as I can gather, military
intelligence would not be interested in the broad range of
the enquiries encompassed within this programme, although they
might have particular interests to pursue. The same would, I
think, apply to the RCMP.
k*
This leads me to suggest that from some other points of
view as well, there might be something to be said for maintaining
some or all of JIB in an autonomous role. The major argument
perhaps is that JIB best approximates to an objective collector
and producer of intelligence with little or no tendency towards
tailoring its product to the policy objectives of particular
government agencies. I do not suggest that the fear of such
tailoring need loom large in our considerations because if we
are sensible there would be no conscious attempt to influence
JIB's judgment. On the other hand, unconscious direction can
be quite as insidious and damaging to the output of an intelligence agency. There might never be an actual clash of viewpoints such as our American friends experienced before CIA was
firmly established as the principal United States organ in the
field. Nevertheless, there is something in favour of an
autonomous JIB as a long term measure to prevent any one agency
of government attempting to capture (even unwittingly) a central
intelligence role suited to its own particular objectives.
5.
A somewhat related argument is that the Department of
External Affairs is only one of a number of non-military
departments and ayencies of government that have an interest in
JIB output. The Departments of Trade and Commerce and Finance,
the Bank of Canada and occasionally other government departments
as well, can all claim to rank as substantial consumers of JIB
products. 7hilst I see no particular harm in bringing JIB

/3

�- 3 -

SECRET

within our Department's control, I can equally see that a tendency
would perhaps"develop to have it serve our interests (e.g., in
the political fields mentioned in paragraph 2 above) in priority
to those of other consumers. Naturally, we could assume that
the end results might not be undesirable insofar as our Department,
in economic matters, normally tends to reflect the substantive
views of others rather than our own. Nevertheless, the possibility
of occasional friction and waste motion cannot I think be entirely
ruled out.
6.
I think the two foregoing arguments reinforce the concern
which the Department must feel at the prospect of inviting a
more public identification with an existing intelligence organ.
Although some administrative arrangements to disguise that
identification night be possible, I think our departmental image
as a whole, both in relation to foreign governments and to
Parliament, might tend to suffer. Generally speaking, I think
Canadian interests.would be best served if the intelligence
community could remain as diffuse as it now is, provided of
course that it is properly coordinated and directed.
— &gt;

i

7

• _ &gt;

J.

7.
If these considerations are valid, the best answer might
be to have a non-consumer of intelligence assume responsibility,
on an agency basis, for the operation and administration of JIB
(or such t&gt;art of it as is not' absorbed in the military intelligence
structure).
B.
There are some less elevated considerations which
militate in the same direction as well. If JIB were to become
autonomous (apart of course from policy control by the IPC and
perhaps day-to-day direction by JIC), this Department would
achieve certain advantages:
(a) The justification of budgetary provision for the
JIB would be mounted, not by External Affairs as
sole proprietor of the agency, but rather by a
consortium of interested departments which could
speak with increased authority to the Treasury
Board*
(b)

on the assumption that the Director of JIB would
continue to hold a seat on the JIC, a possibly
inevitable confrontation between a military and
a civilian approach to a given intelligence or
policy problem .'ould tend less to become a bilateral confrontation between the Department of
External Affairs and National Defence Headquarters.
/4

000831

�- 4 -

(c)

SECH

The channels of communication between ourselves
and foreign intelligence communities would presumably continue to benefit from the existence of
a JIB channel with all its advantages of expert
knowledge, continuity of personnel and relative
absence of preoccupation with policy concerns.
This admittedly suggests a degree of overstaffing in
our liaison arrangements but one which would commend
itself to any organization such as this Department or
National Defence which suffer from the usual problems of
rotational staff.

(d) Although we might assume that morale problems in either
our Foreign Service or in JIB would not arise with
the incorporation of the latter, I am not too sure that
this would in fact prove to be the case. Indeed,
although it may be somewhat unfair of me to quote him,
Mr. J^owen himself stated a bare four y^ars ago "inevitably.
JI3 staff would tend to be regarded as inferior in status
to career FSOs. with all the resulting morale problems
with existing^difiiculties in recruiting good quality
new staff*. There might also be from time to time a
reverse feeling of envy in the Foreign Service directed
towards the non-rotational, easy livinp: of the desk
officer in the JIB "Res§arch Branch" of the Department.
I need not remind you of the long tussle in the State
Department over the same sort of problem regarding
rotational and non-rotational staff.
9,
As you can see from the foregoing, I am not yet persuaded
that JIB's incorporation into External Affairs would be entirely
a good thing. An additional argument which can also be recently
attributed to Mr. Bowen, but x&gt;/bich I am not yet competent to
offer an opinion on, is that the transfer ''would be construed by
CIA and the Pentagon as reflecting a reduced Canadian interest in
intelligence for defence, and raore emphasis on t'^ose activities in
which cooperation is less close". I suppose the same effect
might result from creating an autonomous role for JIB, although
at the same time CIA at least might have a friendly feeling
towards something a little closer in Canada to its own image in
the USA.

3.A. Rettie,

000832

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