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Allen Dulles became the trusted advisor on what was going to happen in the world to President Eisenhower and to his brother John Foster Dulles. The CIA gathered information and provided written assessments of the capabilities and intentions of all world leaders. Its regular briefings gave each president the sense that he knew exactly what was happening across the globe. Like ingenious prognosticators through the ages, the CIA's predictions seemed highly explicit yet never could quite be pinned down. They failed to predict any of the major surprises of the postwar era. On the other hand, estimates of the performance of the Soviet economy proved much more accurate than the information Moscow itself possessed, and forecast the failure of that economy in the 1980s.   
 
Allen Dulles became the trusted advisor on what was going to happen in the world to President Eisenhower and to his brother John Foster Dulles. The CIA gathered information and provided written assessments of the capabilities and intentions of all world leaders. Its regular briefings gave each president the sense that he knew exactly what was happening across the globe. Like ingenious prognosticators through the ages, the CIA's predictions seemed highly explicit yet never could quite be pinned down. They failed to predict any of the major surprises of the postwar era. On the other hand, estimates of the performance of the Soviet economy proved much more accurate than the information Moscow itself possessed, and forecast the failure of that economy in the 1980s.   
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Numerous covert actions were launched to neutralize perceived Communist expansion in Iran and Guatemala. Some of the largest operations were aimed at [[Cuba]] after the coming to power of the communists in early 1960. In 1960-61 the CIA organized Cuban exiles, whose invasion of Cuba failed totally at the [[Bay of Pigs Invasion]].  
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Numerous covert actions were launched to neutralize perceived Communist expansion in Iran and Guatemala. Some of the largest operations were aimed at [[Cuba]] after the coming to power of the communists in early 1960. In 1960-61 the CIA organized Cuban exiles, whose invasion of Cuba failed totally at the [[Bay of Pigs]] invasion.
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Dulles devoted 80% of his much enlarged budget ($82 million) to covert (secret) operations to contain Communism. On the other side was the Soviet [[KGB]]. The head of the K.G.B.'s first chief directorate, Leonid Shabarshin later explained, "The essence of the KGB's active undertakings was to inflict political and moral damage on our basic opponent, the United States. . . . [so] We compromised political figures, organs of the press, and Americans whose activities were in some way unwelcome [to the Soviets]." The KGB veteran revealed that every "active measure" against the enemies of the Soviet Union abroad was submitted by KGB to the Politburo “and was implemented only with its permission. The results of the action were also reported to the Politburo."<ref> See [http://www.iwp.edu/news/newsID.139/news_detail.asp Herbert Romerstein,  "Divide and Conquer: The KGB disinformation campaign against Ukrainians and Jews," ''Ukrainian Quarterly'' Fall 2004 online edition]</ref>  Which side performed better remains an open question. CIA money subsidized anti-communist intellectuals and strengthened liberal political parties across Europe and the Third World. Striking low-cost successes early on reinforced the CIA's mastermind image. CIA-supported parties defeated the Communists in Italy and France in the late 1940s. A handful of agents provided assistance to opposition groups which forced anti-American prime ministers out of office in Iran (1953), Guatemala (1954) and Chile (1973). CIA counterintelligence tried to neutralize the KGB and other hostile agencies, like the GRU (Soviet military intelligence), Communist East Germany's [[Stasi]] and Cuba's DGI.
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Dulles devoted 80% of his much enlarged budget ($82 million) to covert (secret) operations to contain Communism. On the other side was the Soviet [[KGB]]. The head of the K.G.B.'s first chief directorate, Leonid Shabarshin later explained, "The essence of the KGB's active undertakings was to inflict political and moral damage on our basic opponent, the United States. . . . [so] We compromised political figures, organs of the press, and Americans whose activities were in some way unwelcome [to the Soviets]." The KGB veteran revealed that every "active measure" against the enemies of the Soviet Union abroad was submitted by KGB to the Politburo “and was implemented only with its permission. The results of the action were also reported to the Politburo."<ref> See [http://www.iwp.edu/news/newsID.139/news_detail.asp Herbert Romerstein,  "Divide and Conquer: The KGB disinformation campaign against Ukrainians and Jews," ''Ukrainian Quarterly'' Fall 2004 online edition]</ref>  Which side performed better remains an open question. CIA money subsidized anti-communist intellectuals and strengthened liberal political parties across Europe and the Third World. Striking low-cost successes early on reinforced the CIA's mastermind image. CIA-supported parties defeated the Communists in Italy and France in the late 1940s. A handful of agents provided assistance to opposition groups which forced anti-American prime ministers out of office in Iran (1953), Guatemala (1954) and Chile (1973). CIA counterintelligence tried to neutralize the KGB and other hostile agencies, like the GRU (Soviet military intelligence), Communist East Germany's [[Stasi]] and Cuba's DGI.
   
===Guatemala===
 
===Guatemala===
 
In Guatamala in 1954 the CIA operation was marked by chronic lapses in security, the failure to plan beyond the operation's first stages, the Agency's poor understanding of the intentions of the Guatemalan Army, the local communist party (the Guatemalan Labor Party), and the government, the hopeless weakness of invasion leader Carlos Castillo Armas's troops, and the failure to make provisions for the possibility of defeat. Just as the entire operation seemed hopeless, and before there were any significant violentattacks on it, the leftist Guatemalan government suddenly, inexplicably collapsed and a pro-American government took over.<ref> Nick Cullather, ''Secret History: The CIA's Classified Account of Its Operations in Guatemala, 1952-1954.'' (1999)</ref>   
 
In Guatamala in 1954 the CIA operation was marked by chronic lapses in security, the failure to plan beyond the operation's first stages, the Agency's poor understanding of the intentions of the Guatemalan Army, the local communist party (the Guatemalan Labor Party), and the government, the hopeless weakness of invasion leader Carlos Castillo Armas's troops, and the failure to make provisions for the possibility of defeat. Just as the entire operation seemed hopeless, and before there were any significant violentattacks on it, the leftist Guatemalan government suddenly, inexplicably collapsed and a pro-American government took over.<ref> Nick Cullather, ''Secret History: The CIA's Classified Account of Its Operations in Guatemala, 1952-1954.'' (1999)</ref>   
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