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

is.1 .TOP SECRET . 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 TOP SECRET