DEPARTMENT OF STATE BUREAU OF ECONOMIC AFFAIRS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP70T00666R000200020038-1
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: July 24, 2000
• Sequence Number: 38
• Publication Date: March 8, 1965
• Content Type: REPORT

Approved Fo 'release 2001/03/02: CIA-RDP7e O0666R000200020038-1
SECRET
DEPARTMENT OF STATE
BUREAU OF ECONOMIC AFFAIRS
MARCH 8, 1.965
(1) Soviets ~Playing Both Sides Rc7ard:i.n Color TV
Karau.tov, w w be a member o: -V the Sovi.et team coming to t.:he US
this month for technical. discussions with RCA on color TV, told
Embassy Moscow that he was not going to discuss the European-wide
TV system, and that purchase of equipment: and licensing of know-
how were of interest no matter what system the USSR event:nal_1y
n.dopts, as most components are compatible with either NTSC, PAC,
or. SECAM. Embassy also reports a conversation with a member of tif.
SECAM team, who seemed confident that the Soviets believe the
French system is more suited for their needs. The Frenchman
indignantly accused RCA of violating agreements by inviting the
Soviet team to witness video tape recording pr:oducti on hroc:ess.
He said that the French had made clear to the Soviets they are
not in a position to sell equipment or transfer- technology not
belonging to them.
Embassy assumes that Washington wi.l I hear in mind the perils
of the natural Soviet tendency to play hiot..l:a sides [or: 411 1 t::hey
can get and wi.l.l_ instruct RCA accordingly. It is possible that
a distorted report may appear In the European press that.. the US
is planning to violate its COCOM obligation on recorder technology
to salvage NTSC's prospects in Europe. While a number oJ_
possibilities exist as to the So~v-ie.t intentions oil t-.tre US tr-i.p,
Embassy believes the visit never?t:bei ess might we'l_.I_ serve t:tae
purpose of encouraging at least Soviet neut:.ra.I t t.y at the
forthcoming Vienna CCIR meeting on a European- wide system? Icrr-
color TV. Embassy notes that Karau l uv has no policy-making
functions; he will be competent Lo ascertain 1.2CA's best offer,
but real policy discussions would have to he with Rudnev r.or-
Gvishiani. (Conf:identi..al)
(2) Swiss
State Dept. declassification & release instructions on file
Approved For Release 2001/03/0 L.(6f'r'-RDP70T00666R000200020038-1
 . Approved For ReleaS2001/03/02 : CIA-RDP70T0066WO0200020038,1
(2) Swiss Insist on Termination of Watch Escape .Clause Action
Given the Tariff Commission release on watches, Minister Weitnauer
expressed surprise that the Tariff Commission had made no recommenda-
tion. While regarding Herter's role in preparing a recommendation
to the President an encouraging factor, Weitnauer expressed concern
that the recommendation might be for reduction rather than termination
of the escape clause action. He pointed out that only termination
would permit inclusion of watches in the KR. Weitnauer said he
considered it "unthinkable" that the President would make a negative-
finding (i.e. fail to terminate the escape clause action) in. view of
the implications for US-Swiss relations and the success of the
Kennedy Round. (Limited Official Use)
(3) Embassy Gives Views _on A engine Wheat. Prici l:lg Embassy
Buenos Aires thinks that the Argentine Grain Board might. be persuad 'd
to raise its price for offerings to the UK if it could be. assured .fiat
such actions wcaid not price Argentine wheat out of the market. It
believes that a visit of a Department of Agriculture technician with
knowledge of the European market would be invaluable in discussions
with the Board and makes suggestions on timing. The Board has at this
time a. "gentLemens' agreement" with the trade whereby fob prices for
the continent are stabilized at $53 per metric ton and $55 per metric
ton for the UK. Even at tlLese prices continental. demand is weak.
(Limited Official Use)
(4) Bonn Pessimistic on BI oc Credit McGhee Urges Continued Efforts
German officials believe that initial reaction among the EEC member
countries to the German proposal. on Bloc credit limitations indicated
that there is no chance for agreement on this plan, and that further
consideration by the permanent representatives will. produce no results.
Despite German pessimism on this question, Ambassador McGhee believes
that we should continue our efforts. He points out that although the
Dutch are now prepared to go to LO-year credits, they have stated that
they will move very cautiously. While the peemanent representatives
are still examining the proposal we have a chance to influence them,
and he urges that we make a final effort including at.)proa.ches to the
EEC Commission which has thus far taken a passive attitude toward
this issue. McGhee believes that the Germans may take steps fairly
soon to match a French offer in hopes of demonstrating the futility
of a credit race. In the meantime, we should continue to regard
credits beyond the Berne Union limits as the exception rather than the
new rule. (Confidential)
Approved For Release 2001/03/02 : CIA-RDP70T00666RgQ920=O_4.38-1
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