ECONOMIC DEFENSE INTELLIGENCE COMMITTEE MINUTES OF 2ND MEETING 10:00-12:00, 1 DECEMBER 1954

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-00328A000100470025-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 5
• Document Creation Date: December 9, 2016
• Document Release Date: June 8, 2000
• Sequence Number: 25
• Publication Date: December 6, 1954
• Content Type: MIN

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DF,NTIAL
P#S L Y
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Control No. 2095
6 December 1954
ECONOMIC DEFENSE INTELLIGENCE G
Minutes of 2nd Meet
10:00 ? 12:00, 1 December 1954
PRESENT
25X1A9a
. Colo Brown, OSD
Mr. Whitt, AFOIN
Mro Wood, G-2
Miss Worthing, OIR/State
Mrs, Young, EDS/State
Miss Baldwin, FOA
25X1A
Mr. Knoll, FOA/MDAC
1. REPORT ON EDO CONFERENCE
Discussion - Mr. Knoll reported on the Economic Defense
Officers Conference held in Paris during the period 15 ? 19 November
1954, He indicated that detailed accounts of these proceedings
would be forthcoming in the ECAC document series, but reported in
general terms the principal accomplishments of the Conference.
Special attention was devoted to enforcement..and strengthen fig,;:of
existing controls, to the problem of differential China controls,
and to Soviet trade trends and tactics. Of special interest to FDIC,
Mr. Knoll and Miss Worthing explained that the individual EDO's are
heavily pressed by a variety of assignments and can devote relatively
little time to economic defense work. Because of heavy work-load and
inadequate briefing on the needs and objectives of the economic de-
fense program they are limited in their ability to put forward
effective arguments to the governments to which accredited. In this
connection, for example, they had generally not had an opportunity
to review the Schelling paper on East-West trade. Accordingly, its
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implications for the economic defense program are not fully appreci-
ated.
In response to the Acting Chairman?a question as to how en-
forcement can be made more effective, Mr. Knoll declared that delay
in adoption of the TAC eystem.would appear to be the principal hin-
drance to effective enforcement of existing controls. He added
that it is doubtful if COCC*i is the forum in which enforcement
measures should be developed.
Although it was the consensus of the Conference that East-
West trade in nonstrategic items should be stimulated, 25X1A9a
pointed out that one EDO (stationed in a bloc country) had expressed
opposition to such Western shipments to the Soviet bloc.- This EDO
argued that the arrival of, for example, shoes from the U.S. would
tend to undermine the resistance hopes of sections of the labor
force (shoe factory workers) who are engaged in slew--down campaigns
for the purpose of upsetting scheduled production of consumer goods.
Act &M - The Acting Chairman suggested the tabling in EDIC
of substantive intelligence problems raised at the Conferences de-
claring that the principal role of EDIC is to serve as a forum for
exchange of view and coordination of intelligence effort. Through
the EDIC mechanism member agencies can be kept aware of developments
in the economic defense field and can assist in finding solutions to
pending Intelligence problems.
He informed the members of the ad h, vu committee review of
the Schelling paper and instructed the Executive Secretary to furnish
copies of the ORR-OIR evaluation of this report to Int. Col. Brown
for review by the military agencies.
20 PEO RESS RT EMI CASE NO 1 -PRO TIN D USES
Discussion - The Acting Chairman reviewed the FOA/MDAC re-
quest of 29 October for information on Soviet bloc and western
European production and uses of .indium. reported that 25X1A9a
,intelligence research by CIA, O-R, and AFOIN had disclosed no critical
situation existing in bloc supply of this commodity. She stated that
the bloc, from indigenous production, can meet its relatively small
requirements, and that there are substitutes for the item.
CO~MUL
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Action was requested to assume responsibility
ti for preparation of a joint CIA-OIR-AFOIN paper to constitute an agreed
statement of the indium situation. An advance copy is to be furnished
MDAC with distribution in the EDIC/ID series to be made subsequently.
3. REPORT OF ACTION AGENCIES ON RECEIPT OF ECONOMIC DEFENSE
INFOAKATION EM MILITARYINTELLIGENCE AGENCIES
Discussion - This subject had been discussed in detail at the
4 November meeting at which time it had been agreed that representatives
of FOA/MDkC, Commerce and EDS/State would check the adequacy of their
respective agency requirements for information from the military ser-
vices, working directly with G-2, ONI and AFOIN. It had been also
concluded at that meeting "that distribution of intelligence from CIA
and State to action agencies was already being handled adequately."
he concur
had checked this
(Note: ftth meeting until to
the Minutes of the last with appropriate
individuals in Commterce.)
Lt. Col. Brown reported that his investigation on this sub-
ject had turned up several intelligence items which had not received
action agency distribution. He indicated further that (BD has been
given discretionary power by 0-2 in the distribution to action agencies
of special categories of G-2 intelligence.
Following an extended dieaussion and a reiteration by the
Acting Chairman that CIA had no responsibility to forward to action
agencies information received from the military services, it was con-
cluded that some system of-screening out relevant pieces of military
intelligence for use by action agencies should be considered. The
Acting Chairman emphasised the serious nature of this problem, pointing
out EDIC?s responsibility for finding ways and means to insure adequate
intelligence support in this field to action and policy agencies.
atio - This subject is to be re-considered at the next EDIC
meeting at which time members are to report the results of further
inquiry thereon within their respective agencies.
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4. COMMERCE REQUEST FOR INFORMATION ON SOV T TION OF_
JEEPS
Discussion - Intelligence Request No. 2, Soviet Production
of Jeeps, was distributed for consideration. This paper outlines a
BFC request of 24 November for an EDIC intelligence study to produce
evidence of S .et exports of Jeeps and estimates of Soviet pro-
duction. Intelligence developed is to be used in re-evaluating the
strategic rating of Jeeps, presently covered by Security List items
1450 and 2450. Commerce indicates that this re-evaluation is re-
quired in order to answer inquiries from the Willye-Overland Company
which has encountered some Russian competition in sale of Jeeps.
Aption - The Acting Chairman assigned responsibility for
production of this intelligence study to ORWCIA, with assistance
from 0-2 and AFOIN.
5. DOllM RADING OF CO00M DOQWM1
25X1 A9a Discussion outlined the problem which has
been laid on EDIC in POLIO 861 from Paris of 11 November 1954. This
telegram indicates early COCOM discussion of the question of down-
grading a series of COCOI documents from SECRET to CONFIDENTIAL, and
suggests IWG (now EDIC) examination. This Paris request was made
in the context of EDAC ED/EC H-134 which considered the classification
of EXCON communications. He cited as additional references: ED/ESC
M-60; ED/EC D-43; ED/EC D-43/1; COCOM Document No. 1754; HICOG Bonn,
FSD 725 of 24 October 1954; and 4n unnumbered TOPOL of 25 November,
25X1A9a reported an action already taken by the several
agencies in this matter. Problems of specific interest to EDIC are:
incorporation in COCaK documents of intelligence and technical data
which cannot be downgraded without jeopardizing sources; downgrading
from SECRET to CONFIDENTIAL of the Battle Act and other security con-
trol lists; bilateral secrecy agreements and NATO considerationnso
25X1 A9a tabled for EDIC consideration a draft TOPOL
in answer to POLIO 861. This draft outline suggests action by the
USDEL in, supporting the downgrading proposal which, it is claimed,
will result in greater speed of transmission and ease of storage and
handling In overseas missions. This project will invlove the emmin-
ation of some 1500 COCOM documents to determine whether they in-
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corporate any intelligence and/or technical data which cannot be
downgraded from SECRET classification.
Action - The Acting Chairman pointed out that EDIC as a
group has no authority to approve security matters of this kind but
requested members to assist by reporting to him by
1000 hours, 2 December, the react on o heir respective agencies
to the draft TOPOLO
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