/specialCollection/DCI/Smith FOIA/1951/1951-July to September/1951-09-01.pdf

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DIRECTOR'S LOG
8:30 AM,13 Sept'- 8:30 AM,3. Sept ' <C.
\TE OF DATE .
)CUMENT RECEIVED FROM TO SUBJECT ACTION
030
Chief of OSO Manila, the DCI's personal representative
to President Qairino, reported that the long-apparent
incompetence of the top leadership of the Philippine
National Intelligence Coordinating. Agency (NICA)
requires immediate replacement to preserve the NICA clan-
destine intelligence collection section as OSO!s most
valuable vehicle for penetration operations in that
area. OSO must assume the calculated risk of losing its
present favored relationship with NICA by appointment
of a less friendly or even more incompetent head and
is instructing the Station Chief to present the facts-
to President Quirino together with a slate of candidates
suggested for the position. OPC will.support this
action through its close relation :to Philippine Defense
Secretary Magsaysay.
Taking advantage of the U.S. Ambassador's absence, the
Chinese Ambassador in Manila has scathingly denounced
a valued Chinese agent of 030 to. the U.S. Counsellor
of Embassy, accusing the agent of fomenting trouble
in the Chinese community by attempting to build an
anti-Communist "third Force" and making 'veiled threats
of drastic action to suppress activity considered politi-
cally subversive by Chinese Nationalists. 0S0 believes
that the threats are sincere and possibly extend to
assassination. The Counsellor will reply that the
agent's presence in the Philippines is the result of an
understanding between Ambassador Cowen and President Qairino,
that his activities do not include "third force" political
work, and that any mishap befalling the agent would
be most destressing.
(CONTINUED) COPY # L OF 5. SEP 13 1951
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