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in 1944, [[William J. Donovan]], the OSS's head, proposed a new organization directly supervised by the President: "which will procure intelligence both by overt and covert methods and will at the same time provide intelligence guidance, determine national intelligence objectives, and correlate the intelligence material collected by all government agencies." Under Donovan's plan, a powerful, centralized civilian agency would have coordinated all the intelligence services, including those run by the military. He also proposed that this agency have authority to conduct "subversive operations abroad," but "no police or law enforcement functions, either at home or abroad."  
 
in 1944, [[William J. Donovan]], the OSS's head, proposed a new organization directly supervised by the President: "which will procure intelligence both by overt and covert methods and will at the same time provide intelligence guidance, determine national intelligence objectives, and correlate the intelligence material collected by all government agencies." Under Donovan's plan, a powerful, centralized civilian agency would have coordinated all the intelligence services, including those run by the military. He also proposed that this agency have authority to conduct "subversive operations abroad," but "no police or law enforcement functions, either at home or abroad."  
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In September 1947, the National Security Act of 1947  established both the "National Security Council" and the Central Intelligence Agency.  Americans, still mesmerized by the intelligence failure at Pearl Harbor, welcomed the new spy agency because it seemed to promise the nation would always stay on alert. The CIA's Ivy League intellectuals and scions of high society contrasted sharply with the Pentagon brass; an adversarial relationship was born that still sours relations between the two.  The CIA's budget was minuscule ($5 million) until NSC-68 in 1950 provided blueprints for an active Cold War.
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In September 1947, the National Security Act of 1947  established both the "National Security Council" and the Central Intelligence Agency.  Americans, still mesmerized by the intelligence failure at Pearl Harbor, welcomed the new spy agency because it seemed to promise the nation would always stay on alert. The CIA's Ivy League intellectuals and scions of high society contrasted sharply with the Pentagon brass; an adversarial relationship was born that still sours relations between the two.  The CIA's budget was minuscule ($5 million) until NSC-68 in 1950 provided blueprints for an active Cold War.
   
====Congress====
 
====Congress====
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From the start isolationists warned of the danger that the CIA might become an out-of-control "American Gestapo" like the Nazi secret police, which could trample American civil liberties On the other side was fear of a nuclear Pearl Harbor without warning.  
 
From the start isolationists warned of the danger that the CIA might become an out-of-control "American Gestapo" like the Nazi secret police, which could trample American civil liberties On the other side was fear of a nuclear Pearl Harbor without warning.  
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====NSA====
 
====NSA====
 
The military intelligence agencies continue to exist and were never merged into the CIA.  Another entirely separate agency the [[National Security Agency]] ('''NSA''') was created in 1952 to handle electronic signals intelligency ("Sigint").
 
The military intelligence agencies continue to exist and were never merged into the CIA.  Another entirely separate agency the [[National Security Agency]] ('''NSA''') was created in 1952 to handle electronic signals intelligency ("Sigint").
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===Early operations===
 
===Early operations===
 
The principal problem facing the first generation of covert operators was murky objectives. Was covert action designed merely to "contain" the Soviet Union or to "roll it back?" Covert operations were handled by the CIA's "Office of Policy Coordination" (OPC). There was confusion on its mission OPC --was it merely to stir up trouble behind the Iron Curtain or to "liberate" and [[rollback]] the Kremlin's Eastern European satellites? One early covert operation was a total failure in Albania, where the OPC worked with Britain's [[MI6]] to train and deploy anticommunist commandos committed to overthrowing the Soviet-backed regime of Enver Hoxha. Frank Wisner, the first OPC director, regarded the Albanian operation as "a clinical experiment to see whether larger rollback operations would be feasible elsewhere," but [[Kim Philby]], a Soviet mole inside MI6, leaked the details to the Kremlin, with ghastly results for the anti-Hoxha forces.  
 
The principal problem facing the first generation of covert operators was murky objectives. Was covert action designed merely to "contain" the Soviet Union or to "roll it back?" Covert operations were handled by the CIA's "Office of Policy Coordination" (OPC). There was confusion on its mission OPC --was it merely to stir up trouble behind the Iron Curtain or to "liberate" and [[rollback]] the Kremlin's Eastern European satellites? One early covert operation was a total failure in Albania, where the OPC worked with Britain's [[MI6]] to train and deploy anticommunist commandos committed to overthrowing the Soviet-backed regime of Enver Hoxha. Frank Wisner, the first OPC director, regarded the Albanian operation as "a clinical experiment to see whether larger rollback operations would be feasible elsewhere," but [[Kim Philby]], a Soviet mole inside MI6, leaked the details to the Kremlin, with ghastly results for the anti-Hoxha forces.  
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