SURVEY OF ORR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-01094R000100100006-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: November 11, 2016
• Document Release Date: December 4, 1998
• Sequence Number: 6
• Publication Date: June 14, 1954
• Content Type: MF

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JUN 14 1954
MEMORANDUM FOR; Deputy Director /Intelligence
SUBJECT:
Survey of ORR
General Comments
1. The survey emphasizes a number of substantive and
management questions, which are fully recognized by responsible
officers in ORR and for which corrective action has been under way
for some time.
The actual survey wa* conducted during the first two
mouths of 19'54. Therefore. the report is dated and does
reflect more recent developments.
3. The report does not give a balanced qualitative Picture
of ORR activities because emphasis is placed on weaknesses without
explicit favorable comment on areas of strength.
4. There is frequent reference to the volume of production .
not being high In various components without an indication of the
standard used in arriving at such conclusions.
U. Specific Comments
In respect to the Conclusions on page 1, the quality of
economic reports is criticized. Efforts are continually being made
to obtain more focus. better organization, and less technical. verbage
in the reports now being prepared. Formal guidance on the organiza-
tion and preparation of economic reports was published on 4 June
1954. A complete manual on report preparation is under way. The
Publications Officers for the last few months have been placed in
the producing divisions to assist in assuring better organized and
better written manuscripts.
2. In respect to paragraph 2 under Conclusions. any
component must strive for that delicate. balance between the amount
and quality of work required and the staff that is permitted in order
to carry out its mission.
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3. In commenting on paragraph 3 of the Conclusions, it
should be pointed out that the three Area Chiefs are essentially
Deputy Assistant Directors and meet formally at least three times
a week with the Assistant Director and the OAD Staff Chiefs. It
can be questioned whether further expansion at this level is re-
quired at this time.
4. in respect to paragraph 5 of the Conclusions, strenuous
efforts have been made to sit down with officers in OCI in order to
more clearly define the type of support desired. Approximately 270
current support memoranda on specific current intelligence items
in the. Soviet Bloc economic field have been forwarded to the Office
of Current Intelligence and have been used by the Indications Staff
and by OCI analysts as background. Some have been used directly
in publications. The Economic Area has scheduled timely reports
on the Soviet economy for consideration in the publication of the
CI'R. In view of ORR's expressed desire to increase support to
OC!, the criticism appears to be somewhat excessive.
S. ORR has been fully cognizant of the confusion in regard
to analyses of trade and has taken the necessary administrative
steps to correct this situation, although further education of in-
dividual analysts will be necessary.
6. There is, of course, room for improvement with
respect to training, particularly in regard to research methods and
writing of reports. It should be pointed out, however, that ORR has
moved ahead a considerable distance in organizing its language and
rofessional training program.
25X1 C4e
S. With reference to paragraph 3, page 4, the type of
reporting from the Economic Area has changed during the past
six months. Working papers are no longer issued for general
distribution because, they did not necessarily reflect ORR `s views.
All reports now emanating from ORR receive the backing of the
Office. It should be pointed out that the internal projects in support
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: Qtr are thee very important contributions for use in the prepara
V,
do a of National Intelligence Estimates. The following table gives
the report production of the Economic Area for the last half of
Fiscal Year 1954:
Ram Special Center
Economic Intelligence Reports 10 10
Provisional. Reports
Intelligence Memoranda
Research Aids
Internal Projects
Miscellaneous Projects
T otalaa
12
Grand Total . . . . . . . . . . . . 69
1. in the general comments on the Economic Area, page 5,
a statement regarding promotional policy was made. In view of a
misinterpretation within the Economic Area. the Office issued a
promotion policy which hat been followed for several months without
deviation. It Is entirely possible. however, that actions within the
framework of this policy may vary considerably at different levels
of command, and that further explicit interpretation is needed. It
was further stated In this section that personnel returning from over-
seas assignments have not been handled satisfactorily. No case of
this type can be recalled. Some difficulties have arisen, because
of reorganization during the past year. in placing some of the
individuals returning from training at service colleges. Future
programing of non-CIA training for ORR personnel will give full
consideration to this question.
10. In disc cssing the staffs of the Economic Area. it was
stated that they "have a combined total T /0 of 5O. Prior to re-
organization there was only one staff, the Advisory staff. with a
T /O of 4. " This implies an increase of 46 in the staffs of the
Economic Area, and it is, therefore. necessary to note that the
functions of the Publications staff were conducted by a group of
a rproxiara ately the same size prior to reorganisation. that the
Estimates Group of the Planning and Review staff was formerly a
branch of the Analysis Division, and, that part of the function of the
Support staff was located in the former strategic Division.
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It. With reference to the comments on the Analysts
Division, its T/0 was increased because of the need. for
division to more fully undertake its very important responsibili-
ties of Integrating the economic research of the functional divi-
sions in providing comprehensive aggregative studies of Soviet
Bloc economic trends for primary consumers. In view of the
complexity of the work. to be performed. It is somewhat surprising
find that the voluunie of output is not considered hi
12. Although final responsibility for nuclear energy
intelligence rests with 05I, as mentioned in the comments on
the Industrial Division, page 8, ORR will provide economic
research on nuclear energy industries of the Soviet Bloc in
support of, and in close collaboration with, 051.
13. The problem posed in the report regarding the
Aircraft Branch Is under study.
14. The Consumer Industries Branch, discussed under
the comments on the Materials Division, page 9, was established
because of the great increase and the attention given to consumer
industries by the Soviets In their "now course. *" The problem
presented by this sector has been the subject of group discussion
with division chiefs, and is now under intensive study in an
effort to obtain a workable and relatively permanent solution.
I5. On page 11. it is stated that the production of the
Techniques and Methods Division is low. Its production potential
increases geometrically with the assembly, collation. and analysis
25X1 134d of and documentary material. The suggestion
that its operations might be reduced to a trained cadre implies lack
of understanding of the usefulness of this approach to intelligence
research on the economy of the Soviet Bloc. mention is made
25X1A5a1 two consultants, They have been
notified that request for their services by ORR will be substantially
reduced during Fiscal Year 1955. The present Chief has aggressively
assumed his full responsibilities as leader of the division, and this
is thoroughly recognized by 25X1A5a1
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16. in commenting on the Basic intelligence Division,
pages 13 through 13, it was pointed out that it would take five years
to complete all of the NIS Chapters. It is doubtful that all. of these
pters will ever be completed, since some relate to very low
rtty countries. At present there is 70 per cent completion on
A, ___
the 19 high priority areas specified by the SCS, and 35 percent
completion on the total NIS Program as originally conceived. The
backlog is rapidly being reduced, and It is anticipated that within a
few months the lag between initial review of manuscript and final
publication may be reduced to between six to three months.
very large number of sections are currently backlogged in the
Reproduction Division awaiting final publication. There is no
question that Foreign Service and Military Attache reporting
officers are not particularly impressed with CIS publications,
since they have little direct need for them. Some men returning
from Embassies abroad state that the NIS publications have not
been brought to the attention of officers who can make maximum
use of them. It stands to reason that intelligence producers.
current in their various fields, will have only secondary interest
these basic intelligence studies. The higher echelons of
planners and the commands abroad, who require ready basic
intelligence on foreign areas for strategic planning, operational
planning, and training, have, in general, indicated the great
value of these atudiss, and appreciate the absolute need for such
organised information in times of emergency. The NIS Committee
is striving toward a better definition of content with the subtraction
of non-essential information.
17. On page 16, it is stated that the Strategic Trade Branch
meets the Economic Defense Division's responsibilities in carrying
out the U. S. economic defense solicy. In actuality, the division.
as a whole, is responsible for providing intelligence on the Soviet
Bloc in support of policy planning in the economic defense field.
It is generally agreed that a complete picture of clandestine East-.
d
ade would be useful, but, at the same time, it is recognize=
that such a complete picture is impossible of attainment. There
will always be a gap in our knowledge of total East-West trade, even
though the Strategic Trade Branch is responsible for assembling
all available intelligence on illicit transactions. It might be noted
that the Chief of the, Strategic Trade Branch is also the CIA
member of the newly established Diversion Control Net, a U. S.
mechanism for increasing enforcement measures.
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18. Although continued attention will be given to the
proper placement of the Photo Intelligence Division, it can be
said that aerial photo interpretation has strong roots in the
geographic profession. A large percentage of the analyses
undertaken by the Photo Intelligence Division are concerned
with generally accepted geographic facts within the area ex-
amined. Its location in the Geographic Area, is, therefore, not
illogical. With limited staffing, comprehensive photo interpre-
tation reports are not possible. Photo interpreters work from
extremely detailed source material, and can cover only very
limited areas in direct response to highly localized requests.
19. Careful consideration will be given to all of the
recommendations presented, and actions deemed appropriate
will be taken as rapidly as specific situations permit.
OTTO E. GUTHE
Assistant Director
Research and Reports
OAD /RR /OEGuthe:amm
Distribution
O&2 - Addressee
2 - AD /RR
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