COMMENTS ON FOURTH PROGRESS REPORT ON NSC 104/2

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00662R000300070002-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: July 28, 1998
• Sequence Number: 2
• Publication Date: May 12, 1952
• Content Type: MF

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aPMEANDUU FOR: Director of Central /ntelligence
UMW Deputy-Director for Intelligence
SUBJUT t Comments on Fourth Progress Deport on DSC 104/2
I. Problem
To evaluate the statements in subject report that criticise intelligence
support for the kconomic Defense programs and to provide the essential elements
for a response thereto by the MI,
II, Discussion
A. *General 1nadeiaCy of 1JTtsUL&oncs research ? ? . perUcularly baste
research or pagi-1 gun seems pr IITMTve
against a IUWiid quality a WiEfe, LIG studies 041.10, and ad hoe
intelligence support provided to the Soonomic Defense Advino27 ComaitterrIVeitC)
by C (Tab D),
D. *Scarcity of trained rsonnel", (page 11). CIA le recruitment and
training program haliTnnSiT4 and * quarter increased its staff of
economic analysts of gcnemmlly superior competence from Vito 287, all of
their work contributes directly or indirectly to econemiadatenes
C, *Ineffective crganisation of personnel* (page 11). MAAR concentrates
its intelligence production on Uie Soviettice economy leaving by mutual consent ,
the rest of the world to State and other agencies. The RR organisation is
functional, by industry and commodity, but it also maintains a division of 44
persons exclusively Charged with current support of econsals defense activities
(Tab C).
D. cies* (page 11). Interagency c000rtina-
tion ens 2,rong..iiiiTbuii-LiTiihieredheough 0111, and the 144:anomie Intelltgencs
Committee, Xecogelsing the need for dey4446440; spordinatIon of ecomesie defense
intelligent*, CIA on / karch informally concurred in proposal to create especial
Intelligence 'Sorkin Croup under TUC and agreed to their and provide adminietra-
tive and secretarial support for al yet earaeu weeks elapsed before Director, USA,
formally proposed this lace overdue measure.
E. *Ise ?praise accorded economic defense aesignments ggegegljeemmm-Ag
research ats Pegs II). TrioriereiMirools eaten ill` i5EiiiFiatiolWr--
requtranente ite constantly accorded overriding prioritise, basic resew&
programa which can, and are providingabank of soled intelligence will never be
accomplished. /menu& as 14 percent of letle analysts are working fullmelme on
the foreign trade prawns of the Soviet Bloc Which mounts to less than 2 pereent
of its gross national product, it would emus difficult to criticise the priority
afforded Economic Defense Intelligence by CIA as being too low. (Tab C).
aliENEk;-?
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SECURITY INFORNIATIN
25X1X70
Fe 4rti
(pp 15 19 21).
(Tab i t
difficult problem but is bilk
(Tab E).
0,
(pags 22).
intoi1igece
bean grodueed and is
3nerabilities are a rola
?or examples no additional of
ball bearings are critical to t
exercise its power to interfere 11,
25Y6Rste2'n Wrope to the
III. Cenelne
The intelliceroe poxttons of the report
insofar as impliolt4 divested at OA are generally inapplicable,
misconceived. Repetition of this. in the wiAsly circulated Curroat.toomoic
(28 April 1952. MO 6) was a dieservice to the intelligens,
ta relation to the needs of other important common of intellitmeo?
s Defense program has received at least its propartionat? share of
support. The ejor deficieney is not so such the production of basic intelligenee
as the tima34 receipt, evaluation and analysis of Intelligente to meet the spot
requirements of the Recnomic Defense promos on an basis. beeent steps
to establish a continuous intelligence working group to support WAC should
bErgoki (Tare this.
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