(materiel exploitation). In addition, the NRO manages satellite sys-
tems designed to intercept communications from space, a field
known as Space SIGINT. As the agency that contracts for and op-
erates vastly expensive satellite and other hardware systems, the
NRO probably spends the bulk of the intelligence community’s fi-
nancial resources.
The NRO was established on 25 August 1960 after the White
House, the Central Intelligence Agency (CIA), the air force, and the
Department of Defense(DOD) agreed to joint responsibilities for
satellite reconnaissance. This agreement was in response to recom-
mendations from a Defense Department panel that such an organiza-
tion was in the national security interest of the United States, partic-
ularly after the 1 May 1960 downing of the U-2spy plane piloted by
Francis Gary Powersover the Soviet Union. The decision to form
a “national” agency was intended to ensure that the interests of all
parties, including the military and civilian intelligence communities,
were taken into account. By 1961, the CIAand the air force had es-
tablished a working relationship for overhead reconnaissance sys-
tems through a central administrative office, whose director reported
to the secretary of defense but accepted intelligence requirements
through the United States Intelligence Board (USIB). By informal
agreement, the air force provided launchers, bases, and recovery ca-
pability for reconnaissance systems, while the CIAwas responsible
for research, development, contracting, and security.
This arrangement proved unsatisfactory, since it gave the CIAthe
bigger say in deploying particular systems. Ensuing intense negotia-
tions over control of the NRO resulted in another agreement in 1965
that created a three-person executive committee (EXCOM) to ad-
minister overhead reconnaissance. Its members included the director
of central intelligence (DCI), an assistant secretary of defense, and
the president’s scientific advisor. The EXCOM reported to the secre-
tary of defense, who was assigned primary administrative authority
for overhead reconnaissance systems.
This arrangement recognized the DCI’s authority as head of the
community to establish collection requirements and to process and
utilize data generated by overhead reconnaissance. In the event of
disagreements, the DCI could appeal to the president. The agreement
represented a compromise that provided substantive recognition of
the DCI’s national intelligence responsibility.
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