On 13 December 1949, Israeli Prime Minister David Ben-Gurion appointed Foreign Ministry Special Operations Adviser Reuven Shiloah to head the Mossad, an acronym for "Mossad Merkazi Le Modiin Uletafkidim Meyuhadim," or the Central Institute for Intelligence and Special Tasks.
In his directive, Prime Minster Ben-Gurion wrote, “I have charged Reuven Shiloah, Foreign Ministry advisor for special projects, to organize and head the institute. Reuven Shiloah will report to me. He will act upon my instructions and will submit regular working reports to me. For administrative purposes, his office will be part of the Foreign Ministry.
“I have instructed R. Shiloah to submit a manpower and budget proposal for 1950–1951 for approximately IL 20,000, IL 5,000 of which will be used for special operations, contingent on my prior authorization. You are hereby requested to add this sum to the Foreign Ministry budget for 1950–1951,” the letter concluded.
Ben-Gurion's decision came after Shiloah proposed the idea to the prime minister in July 1949, arguing that the Mossad would help create a more synchronized and coordinated intelligence system along with the army's intelligence department (AMAN), and the Internal Security Service (Shin Bet).
Explaining the decision, Ben Gurion said, “For our state, which, since its creation, has been under siege by its enemies, intelligence constitutes the first line of defense….We must learn well how to recognize what is going on around us."
Since its establishment, the Mossad has been involved in intelligence collection based on the needs of the state. Among its most famous operations were the capture of Adolf Eichmann in 1960 and the seven-week covert operation airlifting thousands of Ethiopian Jews from refugee camps to safety in Israel in 1984.
The Mossad has adopted the following verse as its motto, as a way to encourage initiative and creativity, but also as a warning: “Where no wise direction is, the people fall, but in the multitude of counselors there is safety” (Proverbs 11:14).
Shiloah completed his term as head of the Mossad in 1952 and was replaced by Isser Harel.