EXECUTIVE COMMITTEE OF THE ECONOMIC DEFENSE ADVISORY COMMITTEE MINUTES 2:00 P.M. TUESDAY, JULY 30, 1957 ROOM 1213 MAIATICO

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000100180049-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 12, 2016
• Document Release Date: September 5, 2000
• Sequence Number: 49
• Publication Date: August 2, 1957
• Content Type: MIN

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`elf i
ED/EC M-262
August 29 1957
EXECUTIVE COMMITTEE OF THE
ECONOMIC DEFENSE .ADVISO1 Y COMMITTEE
2800 pamo Tuesday, July 30s, 1957
Room 1213 Maiatico
Attendances
MDAC ICA
Mr, Hale, Chairman Rr, Slaght
Mr, Anderson
Mrs, Huvers Committee Secretary State
fro Henderson
CIA Mr, Tackor
Rr, - 25X1A9a
Commerce
fir, George
Defense
Green
'Treasury:
ra ommerfield
Note ao State Department Proposal for Work Program Implementing
Paragraph 210 of Revised Economic Defense Policy.
1, Memorandum to EDAC Regarding JCS Memorandum
2, Work Program for Implementing Paragraph 9, of Revised Economic
Defense Policy
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Note a, State Department Proposal for Work Program Implementing Para-
graph 21, of Revised Economic Defense Policy,
The State member distributed a paper which is the State Department
proposal for a work program for implementation of Paragraph 21, of the
new draft policy statement. (It will be reproduced for EDAC consideration
as Annex B to EDAC D-135/la,)
1, Memorandum to EDAC Regarding JCS Memorandum
The MDAC draft paper entitled "Memorandum to EDAC Regarding JCS Points
for Consideration", dated July 30, 1957, was approved by the members, as
revised at this meeting. (The revised memorandum, entitled "EDAC Recom-
mendations on JCS Questions" will be reproduced as EDAC D-135/3?)
A Working Group III meeting would be held to prepre a report which
would present the disagreement among a encies on whether the trade control
question should be referred to NATO. (See Tab B and attachments to
EDAC D-135/3.)
Discussion
An MDAC draft paper entitled "Memorandum to EDAC Regarding JCS Points
for Consideration" was distributed to the members for review and approval,
The Defense member also submitted a memorandum which, he pointed out,
was to clarify the intentions of the,questions posed by the JCS in para-
graphs 3,b,(1) and (2) of their memorandum, dated 13 June 1957.9 to the
Secretary of Defense, (This memorandum of clarification will be reproduced
and attached to EDAC D-135/3 as -Tab A,)
The NDAC paper was reviewed paragraph by paragraph and, in connection
with the discussion of the portion dealing with paragraphs 3,b.(l) and (2)
of the JCS paper, the State member said he did not believe that the Trading
With the Enemy Act was relevant to the issue, The Treasury member replied
that he had put down on paper some wording regarding the possible invocation
of that Act, which paper he distributed to the members.
After reviewing the Treasury paper, the State member said that it sup-
ports his point of'view on the use of that Act. He felt,, however, that the
invocation of the Act as suggested in the JCS paper would have-very serious
consequences on foreign policies,
The Defense member said he wanted to make clear that the JCS are not
proposing or recommending anything in their paper., and in this case they
are merely asking the NSC to consider the points brought out in 3,b,(1) and
(2) in the review of economic defense policy,
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e3o
The Commerce member said that the difference lies in whether we are
confining our thinking and activity to anti-frustration of our controls
or whether we are speaking about punitive measures. He felt that it is
quite possible that the abolition of the differential might lead to some
antimfrastration activity on the part of the U0S. However, as long as
it is anti-frustration activity and not punitive action it is all right,
He pointed out that ever since we have had an anti=frustration policy.,
it has been realized that there would be question as to whether we were
in fact acting on that basis or on a punitive basis; Commerce has always
maintained that their actions were anti-frustration., even though they
were interpreted otherwise by some governments, He said they tried their
best to explain to the PCs and., in some instances,., after a number of
attempts, appeared to succeed.
The State member replied that they may have succeeded but with very
serious foreign policy implications. He added that he could think of no
anti-frustration measures which would not be taken as punitive by the PCs.
The Chairman reported that the Williams Committee had decided that it
was inappropriate to fix in the policy special language which would endorse
a proposal extensively to use U.S. controls for the purpose of a new effort
in anti-frustration. For this reason Admiral DeLany agreed that it was
unnecessary for-EDAC to debate this issue., since present policy seems to
make clear that, where appropriate., anti-frustration methods should be used
and., when an agency believes there whould be an anti-frustration applied.,
it would have to go to ACEP or to EDAC for interagency consideration.
In discussing the portion of the draft dealing with paragraphs 30b0(3)
and (}) of the JCS paper, the State member said that his agency has come to
the conclusion that now is not the time to refer the trade control question
to, NATO, The Defense member, however., said his agency felt strongly that
the matter should now be referred to NATO.
In this connection., the ICA member mentioned that recent telegrams from
certain posts have indicated that they are not in favor of referring this
matter to NATO.
It was decided that a Working Group III meeting should be held the next
day to discuss this matter and to prepare a report which would present the
conflict between proponents of action and inaction of paragraphs 30b0(3) and
(4) of the JCS memorandum, (This report will be appended as Tab B to
EDAC D-135/3.)
After further discussion, the members approved the D draft, as re-
vised at this meeting, for transmittal to EDAC. (EDAC
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2. Work Program for Implementing Paragraph 9, of Revised Economic Defense
Policy
Refs. ED/EC M-259
Annex A to EDAC D=135/La
Decision
The extent of intelligence information which the CIA member said his
agency could produce in the time specified., in response to its assignment
with respect to the implementation of paragraph 9, of the revised economic
defense policy., met with the approval of all members,
Discussion
The CIA member made reference to the assignment given his agency to pre-
pare intelligence studies of commodity and technical areas, for submission to
Working Group I beginning not later than August 3.5 and ending not later than
August 20, He stated that to do the job the way he would like to would tale
two months at a minimum. However, he outlined what his agency hoped to be
able to accomplish in the specified period and asked if the members thought
this would be reasonably useful, All agreed that it would,
The Chairman felt that, in addition to these intelligence estimates, WG.I
should obtain judgments of technicians. When this information is submitted,
WG I would then enlarge upon it on the basis of its own competence. Given a
knowledge of what CIA is itself going to do, WG I should determine how they
can use this information and should be left to devise its own methods for
coming up with the report requested by the Executive Committee.
The Defense member reported on the progress of the assignments given his
Department under 9,b,(4)(b) is, iii and iv of the work program for paragrap4 9.
He felt they could be completed and submitted to WG-I by the specified time.
Distributions
sarts I & II
& WG I (limited).
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