A Brief History of the Spy

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recalled:
    We had bags of money that we delivered to selected politicians, to defray their political expenses, their campaign expenses, for posters, for pamphlets, what have you . . . And we did many things to assist those selected Christian Democrats, Republicans, and the other parties that were completely reliable – that could keep the secret of where their funds came from. They were talked to by CIA experts: ‘What do you say if all of a sudden you have in Turin the greatest extravaganza of propaganda? Who pays for it? Does the Fiat Corporation pay for it, or what? You’ve got to have some reason for your munificence at this time, and we don’t want an indication that it’s young Americans that are passing the money to you . . . [in] black bags.
    It meant training the Italian politicians in tradecraft so that the money could be passed surreptitiously, but, perhaps to the surprise of some of the agents involved, it worked. The Christian Democrats won by a landslide – 48 per cent to 31 per cent for the Popular Democratic Front. How much of this can be ascribed to the CIA’s activities has been questioned over the years, but it was a rare victory for the early agents of the CIA to celebrate.

4
FIGHTING THE COLD WAR ON NEW FRONTS
    With the Soviet Union proving that they had the atomic bomb in August 1949, it was evident that the escalation between the two opposing forces could result in a third world war, and the fifties would see many proxy conflicts between West and East. Eastern Europe and China were held by the Communists – even if everyone in power in the countries didn’t necessarily bow down before Josef Stalin, they were of similar mindset, and to the Western intelligence agencies, they were a common foe.
    All three of the main agencies involved in that conflict – Britain’s MI6, the American CIA and the Russian KGB – would undergo major reorganization in the early years of the decade. The British had to reassess their entire set-up in the light of Donald Maclean and Guy Burgess’ defection to Russia – and MI5’s strong conviction that Kim Philby was the ‘Third Man’ who had persuaded them to leave. (Philby would continue to be a problem for MI6 until his eventual departureto Russia in 1963.) The death of Stalin in 1953 directly led to the restructuring of the Soviet State Security Service into the form in which it is best known. And the CIA had to deal with yet another failure of intelligence-gathering.
    A lack of confidence in the reports coming from the CIA’s Office of Reports and Estimates had been expressed as early as Spring 1949, and it was criticized heavily for not putting together the pieces regarding the Soviet atomic test. However, it was its failure to predict the invasion of South Korea by the North Koreans of the Democratic People’s Republic of Korea (DPRK) in June 1950, and the involvement of the Chinese People’s Army in October that year that led to the departure of Hillenkoetter.
    In January 1950, the CIA reported their analysis of the troop movements in North Korea:
    The continuing southward movement of the expanding Korean People’s Army toward the [border at the] thirty-eighth parallel probably constitutes a defensive measure to offset the growing strength of the offensively minded South Korean Army . . . Despite this increase in North Korean military strength, the possibility of an invasion of South Korea is unlikely unless North Korean forces can develop a clear-cut superiority over the increasingly efficient South Korean Army.
    They believed that the invasion would have to be ordered by Russia: ‘The DPRK is a firmly controlled Soviet satellite that exercises no independent initiative and depends entirely on the support of the USSR for existence,’ the CIA stated on 19 June, six days before the North Koreans did indeed act independently.
    Once the war was under way, the CIA believed that the Chinese would not intervene in the situation, despite numerous coded and

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