S-2152, COMMENTS ON CONG. JAMES HARVEY (MICHIGAN) LETTER TO THE DCI RE 'PROPOSED $60 MILLION US EXPORT-IMPORT BANK LOAN FOR MACHINE TOOLS TO BE USED IN A NEW AUTOMOBILE PLANT IN THE SOVIET UNION'

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP70S00385R000200030114-1
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RIPPUB
Original Classification: 
C
Document Page Count: 
8
Document Creation Date: 
December 15, 2016
Document Release Date: 
October 7, 2003
Sequence Number: 
114
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Publication Date: 
January 26, 1967
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MFR
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Approved For,&Iease 2003/10/21 : CIA-RDP70S0 - e.~r 25X1 'O`?//A41 26 January 1967 MEMORANDUM FOR THE RECORD SUBJECT: 3-2152, Comments on Cong. James Harvey (Michigan) Letter to the DCI re "Proposed $60 Million US Export-Import Bank Loan for Machine Tools to be Used in a New Automobile Plant in the Soviet Union" D/ORR hand-carried the attached Memo for the Record to Mr. John Warner, Legislative Counsel, today. Re para. 2.a. I told him that this decision came out of the SIG meeting of the same date and that I doubt CIA took a policy position as the Rusk memorandum indicated, although I am not aware of the Director's practice in these matters. Re para. 2.b. I indicated that we did not yet know the precise equipment involved and that in any case a final decision on the licensing of whatever equipment is ordered would not be made until the license application has been made to Commerce. Re para. 2.c. in response to John Warner's question, I said that if the United States did not get this contract it would be picked up by a Western European manufacturer. 25X1 25X1 I N. T ORELL, a. Direc or Research and Reports { v.? , . _ ,;`c CRC, 10/06/2003 Approved For Release 2003/10/21 : CIA PCIOSbO 85 j 00200030114-1 Approved For Release 2003/10/21 : CIA-RDP70SO0385R000200030114-1 sr~ Attached are our jers to C=g. H `a Questj0 In Pa. 2.b. and 2.e. I , to our rs In 2.c. that if the United States did .not get this oontr ct it is that it would be Pioled up by ao stern European q t r. Attachment: 2.b. and 2.c. excerpted from attached paper, Approved For Release 2003/10/21 : CIA-RDP70SO0385R000200030114-1 Approved For Release 2003/10/21 : CIA-RDP70SO0385R000200030114-1 FORM NO. 101 REPLACES FORM 10.101 1 AUG 54 WHICH MAY BE USED. STAT Approved For Release 2003/10/21 : CIA-RDP70SO0385R000200030114-1 vy Approved For Re e 2003/10/21 : CIA-RDP70SO0385R 00030114-1 a (" ~1) yt r,"~ - " _ - -, ON 25 January 1967 MEt+IORA1 1M FOR THE RECOEI: 1. Congressman James Harvey (Michigan) wrote to the ZQ1 on 20 January 1967 regarding "the proposed $60 million United States Export- Import Bank loan for machine tools to be used in a new automobile plant in the Soviet Union." 2. Congressman Harvey asked for comments on three specific questions. Those questions and ORR comments are as follow: a. "Do you approve of this proposal?" Comment: The Agency would presumably not take a position on this question. t should be noted, however, that the Secretary of State, in a memorandum to the President dated 22 June 1966, stated that "the senior levels of the Department of State, DOD, CIA, Commerce, Treasury, and the Export-Import Bank have agreed unanimously that ... the Export-Import Bank should go ahead with the loan" and that the President should "informally notify Congress." b. "Is there any possibility that the machine tools could be converted in any fashion to help or to produce war material or weapons of any sort?" Cement: The special purpose tools likely to be exported by the U.S. to eequip the FAT plant in the USSR could not be used directly to make military equipment such as tanks and similar items. The U.S. tools could be converted to the manufacture of minor military items such as jeeps, but only at great cost and with considerable difficulty. It would be much more economical for the USSR to use its own machine tools for producing military equipment. Although some of the automobiles produced in the plant could be allocated to the military for use as staff cars and for similar purposes, the Soviets are able to meet military requirements from their present automobile plants. Nev technology would be embodied in the U.S. exports, but the Soviets could acquire this technology almost as easily by purchasing machine tools from European licensees of U. S. manufacturers and by utilizing readily available technical data. {! ? Aden ile'n saamMiQl 'in`" " Approved For Release 2003/10/21 : CIA-RDP70SO0385R000200030114-1 ' c%ari:rt It a 'Ju1'A fated, firsts, that to as r x :; :> Imo, 31 r3 Vi. I emne gas Srab.iZ?o.FS 25X1 25X1 t i ., ~' if U. w ? P. Tl+;Y a ctvr ? rr. . d I%rcz earl. de 1i?e? r'y, t i ak it an, t e orda ra ~?.. in V 1-6. outs p b h]? r e-pTwmc 3 to d O SC> t-4 U. $. 10" t crt i'OX-thca L . With VW. r::-part- tmpo eight d:U :i t ;.;res . >t r these tools In Ot1k.r `.`asp-*~ar ea~untrbea and china tao'1v In it Ita11 ' rt .' =!? r*r er, 'IM vouU], be ab'' ; t eG ,~t t `,S'-'a'c e .'`r.cv. c* - . (FIAT its 1r, me T Approved For Ruse 2003/10/21 : CIA-RDP70SO0385RON 00030114-1 Use i:raita"d taus des not y ict t : in tht& tom-- t iii"t 1y et :r sour :a or f'irianciat1 s i v, of {t~iYL rq/: a l own of 4i :xt to ~' 53 till Ofiiz" YrE"he cx M,'+sselc 3 bme'd rkk 'y,,,, yq, t&t in r to the .; c #j tk of t:4~'". - .2- It is d lkr. / ' ?.-{a' YS MITI' ;7s~ or of r LeWI nst1tutL r? ld to l"omy to the It :: a~ .t r x rno c buyiz } chi c tools in lc,,, United ~Zutat `s. +Y i `T and . "? (r utituz W ab1'j' .e Itali ) e t e ::c 1r ir` e i t vw-',!rw s1'iY3 in ' izU, -r' o t- ~urc e t %-W, inw t 1 in other -.,:17MNV-n om-tS'.1es. v io tI. a n . X -)L*" a 1c i r v v tear > , . . ra -I ?t y,, &tatea, whim: woa , rc-,,E' -7' 'r aaiw nt hI t t4 a i ez 1 i e d chi m-, V-to .4 that Italy' Approved For Release 2003/10/21 : CIA-RDP70SO0385R000200030114-1 Approved Fase 200 CIAME70SQ41u - 'JAMES HARVEY STH DISTRICT. MICHIGAN COMMITTEES, BANKING AND CURRENCY INTERSTATE AND FOREIGN COMMERCE .i 0 DISTRICT OFFICES: JEFFERSON-BAUM COURT SAOINAW, MICHIGAN 753-6585 (Cougm;.e; of the Uniteb States; Sousse of 3aepreantatibeo Wasbffigton, J.C. 20515 January 20, 1967 Honorable Richard Helms Director Central Intelligence Agency Washington, D. C. 20505 I am taking the liberty of writing to you for an official response on the proposed $60 million United States Export-Import Bank loan for machine tools to be used in a new automobile plant in the Soviet Union. 409 FORT PORT HURON. MICHIGAN 982-0591 As one of the four Members of Congress who recently visited Italy and a number of communist European countries, I believe I have all the necessary general details on this proposal. However, at this time I would greatly appreciate your comments on the following questions: 1. Do you approve of this proposal? 2. Is there any possibility that the machine tools could be converted in any fashion to help or to produce war material or weapons of any sort? 3. If the United States does not participate in this transaction, is it likely other sources of financial assistance can be utilized? Thank you for your interest and cooperation in this matter. With kindest regards, Approved For Release 2003/10/21 : CIA-RDP70SO0385R000200030114-1 a- yed 1~ 5~~,2A9 1 1-~ OSOOO 5RO~~~A003 pp T A r UNCLASSIFIED znr r. T IDEN I SECRE CENTRAL INTELLIGENCE AGENCY OFFICIAL ROUTING SLIP TO NAME AND ADDRESS DATE INITIALS 1 .~ 2 JD/ORR 25X1 3 o 4 5 6 ACTION DIRECT REPLY PREPARE REPLY APPROVAL DISPATCH RECOMMENDATION COMMENT FILE RETURN CONCURRENCE INFORMATION ~..~ SIGNATURE Remarks : S-2152 Reply to Congressman Harvey. 25X1 FOLD HERE TO RETURN TO SENDER FROM: NAME, ADDRESS AND PHONE NO. DATE 25Jan6 2003/h=h :Q9P0 85 00~>D80 F 2-6 10. n3 7 Use previous editions Fe-d. Fcqtliakw*ALZU&4aWeLA~~~ UNCLASSIFIED i, rn w7w rrA r CENTRAL INTELLIGENCE AGENCY OFFICIAL ROUTING SLIP Mr. William Morell 4 F 18 Hqs STAT Will you please call me as soon as you have had a chance to look this over. o hn Warner R r: r Legislative Counsel 7 D 01