Oliver E. Pagan II, 66, a retired Central Intelligence Agency official and a former naval intelligence officer, died of cancer Wednesday at a hospital in Pinehurst, N.C.

Mr. Pagan joined the CIA in 1952 and was stationed in the Far East until 1957, when he returned to CIA headquarters in McLean. He was associate general counsel when he retired in 1973, at which time he was awarded the agency's Career Intelligence Medal.

In 1941, Mr. Pagan was commissioned into the Navy and assigned to the office of domestic intelligence in the Office of Naval Intelligence.

He later served at sea in the Pacific theater, as a diplomatic courier for the State Department while on loan from the Navy, and with the Navy's Judge Advocate General's Office.

Mr. Pagan, a third-generation Washingtonian, earned a law degree from George Washington University's National Law Center in 1936. He worked for the Federal Bureau of Investigation and for a Washington law firm before being commissioned into the Navy. After the war he was a lawyer for the Veterans Administration.

He was a charter member of the Association of Former Intelligence Officers, a member of the Central Intelligence Retiree's Association and, during the 1960's commanded the CIA's military reserve unit as a Navy Reserve captain. He retired from the Navy Reserve after 25 years of service.

Mr. Pagan also was a member of the Association of Diplomatic Couriers.

He had lived in Chevy Chase before moving to Whispering Pines, N.C., in 1973.

Mr. Pagan's first wife, the former Jane Fleming Smith, died in 1972.

Survivors indlude his wife, Jane Sickles Pagan, of the home; three daughters, Mary Jane and Rebecca, both of Washington, and Nancy, of Boston; a son, Oliver E. III, of Chevy Chase; a stepson, Vincent L. DiRienzo Jr. of Boston, and three stepdaughters, Laura and Marie DiRienzo, both of Coconut Grove, Fla., and Barbara Sickles of Arlington.

The family suggests that expressions of sympathy be in the form of contributions to the American Cancer Society.