Dissolution Into Other Agencies
After victory in Europe in May 1945, the OSS was better able to concentrate on operations in Japan. One month after the war was won in the Pacific Theater of Operations, on September 20, 1945, President Truman signed Executive Order 9621, which came into effect as of October 1, 1945. Thus in the following days from September 20, 1945, the functions of the OSS were split between the Department of State and the Department of War. The State Department received the Research and Analysis Branch of OSS which was renamed the Interim Research and Intelligence Service or (IRIS) and headed by U.S. Army Colonel Alfred McCormack. This was later renamed the Bureau of Intelligence and Research.
The War Department took over the Secret Intelligence (SI) and Counter-Espionage (X-2) Branches, which were then housed in a new office created for just this purpose—the Strategic Services Unit (SSU). The Secretary of War appointed Brigadier General John Magruder (formerly Donovan's Deputy Director for Intelligence in OSS) as the director to oversee the liquidation of the OSS, and more importantly, the preservation of the clandestine intelligence capability of the OSS.
In January 1946, President Truman created the Central Intelligence Group (CIG) which was the direct precursor to the CIA. The assets of the SSU, which now constituted a streamlined "nucleus" of clandestine intelligence, was transferred to the CIG in mid-1946 and reconstituted as the Office of Special Operations (OSO). Next, the National Security Act of 1947 established the United States's first permanent peacetime intelligence agency, the Central Intelligence Agency, which then took up the functions of the OSS. The direct descendant of the paramilitary component of the OSS is the Special Activities Division of the CIA.
Read more about this topic: Office Of Strategic Services
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