JOINT INTELLIGENCE ORGANISATION

I refer to the Agendum dated 10th June, 1947, and Supplementary
Agendum dated 10th September, 1947, submitted to members of the
Ministerial Committee constituted by Cabinet to consider the
detailed functions, organisation, establishments, and estimates of
expenditure of the Joint Intelligence Organisation, approval in
principle to which was given by Cabinet in July, 1946.

2. You will recall that consideration was given to the detailed
proposals at a meeting held on 11th September, but no decisions
were then reached. I am becoming very concerned about the delay
that is being experienced in establishing this Organisation which
has been under consideration by my Department, and the subject of
consultation with the United Kingdom Authorities since August,
1945. A note on the history of the main steps is attached.

3. I am now submitting for your consideration, draft decisions
which I suggest should be approved by yourself as Prime Minister
and Treasurer, and Acting Minister for External Affairs, and by
myself, as the Cabinet Sub-Committee on this matter.

4. Your attention is particularly invited to Part 1 relating to
the vital importance of the Intelligence Organisation from the
Defence aspect. Though the original concept was that this
organisation might be of service to other Departments, especially
External Affairs, as well as Defence, I wish to emphasise that
Defence considerations are so paramount that the setting up of the
organisation is fully warranted from this aspect alone, and it is
desired to proceed accordingly.

5. I mention this because of queries that have been raised by the
Department of
External Affairs. Whilst my Department was only too glad to
furnish any information required by External Affairs in order to
clarify the queries, the only one of real substance from the
aspect of that Department's functions was that relating to the
scope of the functions of the Joint Intelligence Bureau. On this
point, an assurance was given that:-

'It is not the intention that general reporting of political
developments in foreign countries should be undertaken by Joint
Intelligence Bureau, nor that it should independently collate and
distribute political intelligence.' This has now been explicitly
covered in the functions of the Bureau as defined in paragraph
9(a)(a) of the draft decisions of the Cabinet Sub-Committee:-

'Its task will be to collate, evaluate, and distribute factual
Intelligence relating to the topography, communications, ports and
harbours, landing beaches, aviation facilities, the defences, the
economic, industrial and manpower resources, and social and
constitutional organisation of countries within its area of
responsibility. Intelligence relating exclusively to Naval, Army
or Air Force matters will remain the province of the Service
concerned. The reporting or dissemination of Political
Intelligence is not a function of the Joint Intelligence Bureau,
being the province of the Department of External Affairs.'
6. It was also stated to the Department of External Affairs in
this connection that the senior members of the staff of both the
Joint Intelligence Bureau and Signal Intelligence Centre would
need to be kept informed of current political developments in
other countries, as other aspects of strategic intelligence for
which they are responsible must be studied against this
background. Since External Affairs see 'great dangers' in this
procedure, my Department is prepared to withdraw this request in
order to remove any doubts that may exist on the matter.

7. It will be seen from the specimen J.I.B. Questionnaire
enclosed, that the intelligence information to be furnished in
accordance with it, relates to the following matters on which the
required details are specified:-

Terrain
Geology and Soils (Technical)
Beaches
Landing-Places
Ports
Towns
Roads
Railways
Waterways
Agriculture
Fisheries
Food Industries
Forestry, Timber Processing Industries and Paper
Textiles, Clothing, Leather and Furs
Fuel and Power
Minerals
Metals
Building Materials, Building and Contracting
Ceramics and Glass
Chemicals
Rubber
Shipbuilding
Mechanical Engineering (including Armaments)
Electrical Engineering
Miscellaneous Industries
Shipping and Shipping Lines
Civil Aviation, Air Lines, Airfields and Flying Boat Bases
Commerce and Finance
Water Supply
Sewage Disposal
Defences
Special Air Ministry Requirements for Anti-Aircraft Defences
Telecommunications
W/T Stations
Military Airfields and Flying Boat Bases
Medical Services and Hygiene.

All that the Department of Defence asks of External Affairs is
that the Australian diplomatic and consular representatives in the
area covered by the Joint Intelligence Bureau shall be instructed
to supply information of this nature to the Joint Intelligence
Bureau, through the Department of External Affairs.

8. I would like to point out that the establishment of the Joint
Intelligence Organisation is in conformity with the sovereign
control of Australian Defence Policy which has been developed
since 1910, concurrently with measures for greater co-operation in
British Commonwealth Defence. As you are aware, the most recent
stage was that expressed by you at the Conference of Prime
Ministers in 1946 that there should be assigned to the Australian
Government Machinery, responsibility for the development of the
defence aspect of matters relating to Regional Security in the
Pacific, in which the United Kingdom, Australia and New Zealand
are concerned, and provision should be made for the representation
of the United Kingdom and New Zealand at the appropriate levels on
such machinery. I would also add that the creation of the Joint
Intelligence Organisation is the first step in the amalgamation of
Inter-Service Organisations which would otherwise be maintained on
an individual Service basis, with consequent duplication and lack
of economy.

9. Apart from our own Australian needs, the delay in establishing
the Organisation is becoming embarrassing to the United Kingdom
Government to whom the Cabinet decision was communicated.

Following this, arrangements were made for the transfer of certain
collected information from the United Kingdom Authorities at
Singapore to the Joint Intelligence Bureau, but we lack the
necessary staff to handle it. Also, with the United Kingdom
withdrawal from India and the reduction of the United Kingdom
Forces generally and especially in the Pacific, the early creation
of the Intelligence Organisation is becoming a matter of greater
urgency and necessity in view of the reliance that has been placed
on the Australian decision being implemented within a reasonable
time.

10. in view of my responsibilities as Minister for Defence, I am
anxious that a decision should be reached on this subject before
my departure for Havana, and I shall be glad to discuss the matter
with you at your convenience. [1]