ECONOMIC DEFENSE INTELLIGENCE COMMITTEE MINUTES OF 11TH MEETING 10:00 A.M. , 16TH SEPTEMBER 1955

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP62-00328A000100470016-8
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RIPPUB
Original Classification: 
C
Document Page Count: 
5
Document Creation Date: 
December 9, 2016
Document Release Date: 
June 8, 2000
Sequence Number: 
16
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Publication Date: 
September 23, 1955
Content Type: 
MIN
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Approved For Release 2000/08/26 : CIA-RDP62-00328A0001000016-8 4%10~ *40 EDIC/M?11 Control No, 2183 23 September 1955 ECONC*+IIC DEFENSE INTELLIGENCE COMMITTEE Minutes of 11th Mee't 10:00 a.m,, 16 September 1955 PRESENT CIA, Chairman CIA Lt. Col. Brown OSD Col. A. H. Wait, OSD HSr, Hamilton, AFOIN Mr. Wood, G?2 Miss Dimock, ONI Mr. Tilson, MDAC Miss Worthing, State/OIR Mrs. Youngs State/ECD Mr. Shaveli, Commerce CIA, Acting Executive Secretary 1, Review of Third Annual Progress Report of EDIC (SIC R-2 Action: The Third Annual Progress Report of !DIC was approved for submission to the Intelligence Advisory Committee, subject to a number of agreed changes. (ERIC/AM-3 5, 23 September 1955) 2, Pending Bloc Shipbuilding Orders (EDIC Case 5) EDIC/ID 16 will be revised by CIA to provide a more specific breakdown of countries in Tables 4 and 4a as suggested by MDACO ONI will submit an amendment to be included in the revised report, Approved For Release 2000/08/26 : CIA-RDP62-00328A000100470016-8 Approved For Release1- 0/08/26: CIA-RDP62-00328A00010 407 016-8 CONFIDENTIAL NOFORN EDIC/MMll 4. 3, Strategic Significance of Boron Substances as Hi hg Energy Fuels FDIC Case 8 ERIC/ID-l5 (Revised), prepared by the EDIC Ad Hoc Working Group on Boron Compounds, was distributed, Action: The Chairman announced that if no comments were received from EDIC members by Wednesday, 21 September, the paper would be considered to be approved and would then be forwarded to the Joint Operating Committee of EDAC. Intelligence on Trade in Decontrolled Commodities (EDIC Case 9) Discussion: Miss Worthing reported that OIR is preparing an analysis of decontrolled commodities from. official trade statistics, OIR has done nothing further on the problem of special reporting requirements for decontrolled commodities, The OSD representative reported that Defense personnel in MDAP plants have a very limited capability for reporting trade data. It was suggested by MDAC that FDIC might consider the judo&*% of statistical reporting in general. Actions The Committee agreed to request Commerce for a briefing on the compilation of statistical trade data. The Committee also agreed to establish a Subcommittee on Trade in Decontrolled Commodities, including representatives from State (Chairman), CIA and Commerce, with a Defense Department observer. The Chairman announced that nominations for the subcommittee should be telephoned to the Executive Secretary by Friday, 23 September,, 5. Soviet Bloc (EDIC Case 1 0 9 A revised paper will be produced by CIA and coordinated with appropriate agencies. CONFIDENTIAL Approved For Release 2000/08/26 : CIA-RDP62-00328A000100470016-8 Approved For Releas 2pD0/08/26: CIONFIDP62-I00328A00010 4( 7 016-8 '''' NOFORN EDIC/M -3.1 6. Possible Soviet Bloc Use of Magnesium as Fuel (IR-13) Action: The Committee agreed to establish an Ad Hoc Working Group on Magnesium, consisting of representatives from OIR, OSD, ONI, G-2, Commerce, AFOIN and CIA (Chairman). The purpose of the group would be to explore technical and intelligence data, returning recommen- dations to EDIC. Defense was charged with special responsibility for exploring the technical data. 7. Possible transhipment of US-origin Ferrotitanium and Ferrovanadium from Western Europe to the Soviet Bloc IR 14 It was agreed that CIA and Commerce should investigate further the availability of information on this subject and report back to ERIC. 8p Soviet Bloc Sales of Gold in Free World Markets (If ?,-15) It was agreed that CIA would assume responsibility for the project in consultation with Treasury. Reports will be issued semiannually, subject to MDAC concurrence as to the time-period. Special reports will be issued should there be developments of unusual interest. 9. Re uest for Bilateral Fren ch US Exchange of Economic Defense Iii formation(IIB1 It was proposed by MDAC that the exchange of information be limited to enforcement cases. MDAC suggested that other useful data might include reports which support the US policy for retention of China controls, such as a report on the difficulties which Communist China is experiencing in getting differentially controlled commodities from the Free World by transhipment? CONFIDENTIAL Approved For Release 2000/08/26 : CIA-RDP62-00328A000100470016-8 Approved For Release 2000/08/26 : CIA-RDP62-00328A0001Q 70016-8 CONFIDENTIAL NOFORN EDIC/M-U Action: The Boittee noted that CIA was already working on the selection of cases which were considered to be suitable for presentation These cases will be submitted to the DCN. It was agreed that for the present the information on enforcement cases would be considered as satisfying the request on FDIC. 10. Coll Ryeuirements Discussion: 25X1A9a stated that CIA had been requested by State to make suggestions for a new classified supplement to the Foreign Service Manual containing reporting instructions on economic relations with the Sino-Soviet Bloc. These instructions would supplant ERC 34 of 28 March 1952. The-CIA member suggested that EDIC should review this problem. Action: It was agreed that CIA and OIR should confer on the need for re- establishing a Collection Requirements Subcommittee or Ad Hoc Working Group to undertake this project0 11. Report on Intelligence Support of Position Papers for_2orei Conference Discussion: The Chairman reported on current CIA research in preparation for the Foreign Ministerss Conference. This research includes two studies, one on comparative costs and the other on the strength of Bloc demand for IL-I items. Defense suggested that EDIC should review any EDAC proposals for changes in the present criteria for the China List Reviews The Chairman commented that a major consideration would be the transpor- tation coat of commodities going to Communist China. In this connection Miss Worthing announced that OIR is currently working on a report on the movement of POL to China. a4- CONFIDENTIAL Approved For Release 2000/08/26 : CIA-RDP62-00328A000100470016-8 Approved For Release ;bp/08/26 : CIA-RDP62-00328A000100470016-8 I%W CONFIDENTIAL NOFORN 25X1A9a 12. The Chairman announced that of EDICO Distributions Cat, -B--%f 1- ,.C- (3j EDICJ fl will be the CIA member CM- DEr1TIAL Approved For Release 2000/08/26 : CIA-RDP62-00328A000100470016-8