ORE: IM-190

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A000600010006-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 12, 2016
• Document Release Date: July 12, 2000
• Sequence Number: 6
• Publication Date: July 25, 1949
• Content Type: MEMO

-ZT
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ce Memorandum ? UNITED STATES GOVERNMENT
DATE: July 25,1949.
STATINTL
STATINTL
TO
FROM
SUBJECT :
CIAT
OI Rz W. E . Dunn
ORE lIM?190
Confirming my telephone conversation
with I am sending you herewith
a memorandum prepared by IFI concerning
the subject report.
*Army/State Declass/Release Instructions On File*
OFR.-WEDunnzjg
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Office Memorandum UNITED STATES GOVERNMENT
DATE: July 19, 1949
OIR/ICS ' Mr. William E. Dunn
?" .? A ? '
Marion Worthi
? IFI:
SUBJECT: CIA Intelligence Memorandum No. 190 Entitled: bependence of the U.S.S.R.
on Imports of Tin.
My general reaction to this report is that some of the information on
which it is based is unreliable. However, I can be wrong and would like very
much to talk to the author of the report. I shall deal with specific points:
Paragraph 1Sentence 2.
As far as `I know, there have been no: recently intensified efforts on the
part of the U.S.S.R. to obtain tin through trade agreements with the U.K...
Belgium and Netherlands. The last reports of this activity were almost a year
and a half ago. I am quite sure if there were anything brewing on this I would
have heard of it directly from some of the representatives of the countries
concerned.
Paragraph 2, Line 1.
Although I am acquainted with the ECA cable in which this "reliable
report" appeared, I doubt that this was much more than a rumor, It was suppose 4
to have originated in the Hague and the Dutch Minister here in Washington has
had no notice of it as yet, although he has made inquiries. Furthermore, the
Soviets have made no move to apply to the Combined Tin Committee for an allocation.
Para 2. Line 4.
I remember seeing a rumor somewhere else that 400 tons of tin were ex-
ported from the Netherlands during the first quarter of 1949. However, the
report of the Netherlands Government covering that period shows no such shipment.
I should like very much to investigate this matter further with the CIA, if
there is a way of doing it. If there are sufficient grounds, I can speak to
the Netherlands Embassy about it. The Combined Tin Committee., of course, does
not sanction such a shipment (a fact which the CIA could have found out if
they had taken the trouble).
This report is a typical example of CIA reporting in a "sterile
atmosphere". 'Whoever prepared this report completely missed the only real
problem receding U.S.S.R. tin, which has recently come before the ate Depart-
men t n~to a certain extent other Government agencies and that is whether or
not U.S. Government is willing to balance the disadvannages which might come
of allowing tin to flow to Russia against the advantages of abandoning various
controls,.
IFI:MWorthing:hgd
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D(2PrF -T'
Memorandum to William E. Dunn, Department of State
From CIA
Subject: Criticism of CIA Intelligence Memorandum No. 190 entitled:
Dependence of the USSR on Imports of Tin, dated July 1, 1949.
Reference: Your Memorandum of July 19 , 1949
Para,rai h 1, sentence 2.
1. Your attention to Incoming Telegram from London No. 2928, July 25, 1949
to Secretary of State signed by Douglas on possibility Soviets might
not sign trade agreement with Britain if they did not get 3000 tons tin.
While 3000 tons of tin would not be much in the economy of the US,
it would be very important indeed to the USSR.
2. Your attention to Report No. 494 from American Embassy, London, May .9,1949.
Subject: United Kingdom - USSR Trade Arrangements.
3. Army Report No. R-1595-49 from London dated May 10, 1949 on Recent
Developments in British Trade with Eastern Europe.
Paragraph 2, Line 1.
Ambassador Harriman in his cable, 4506 of June 3, 1949, to ECA
Administrator Hoffman did not doubt the information given by Haffner,
strategic material officer, Hague Mission.
Why should they apply to Combined Tin Committee for allocation if they
can get tin from Netherlands without allocation?
Para,;raph 2, Line 4.
1. See Incoming Airgram A-487 of May 20, 1949 from The Hague signed by
Ambassador Baruch reporting 400 tons of tin exported to USSR in first
quarter of 1949 by the Netherlands.
2. See Incoming Airgram A-101 of February 4, 1949 from The Hague reporting
the Netherlands shipped USSR 600 tons tin value 2,258,000 guilders in
October-D-ecember, 1948.
3. See Incoming Airgram of March 15, 1949 from Antwerpp'Belgium to
Department of State. "3,200 pigs of tin from Antwerp on March 12, 1949
for IIALIPEDA on S S PRAVDA."
4. See Incoming Airgram, A-63 of March 22, 1949 from Antwerya, Belgium to
Secretary of State. 1. t"SSKAPITAIT CASTELLO'I. Date of departure from
Antwerp, March 19,-1949m to Rostock. Outgoin cargo includes 1,200 ingots
of tin. (signed) Steindorf.
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Referring to the last sentence in State Memorandum of July 19, 1949 the
CIA was well aware of the conditions under which the Combined Tin
Committee makes allocation as will be apparent if the 1st Paragraph of
Ir=M No. 190 is read.. Also the writer was in close touch with the
formation of the International Tin Committee and has kept track of
developments since then.
Paragraph 5, Line 2
It would be enlightening and welcome to have State set forth the policy
of shipping tin to the USSR.
(2)
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 Liicomirig Telegram COPY
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Control 9530
Recd July 26, 1949. 1:17 pm
FROM : London
TO: Secretary of State
No: 2928, July 25, 9 pm
REEKBTEL 2725 July 12 repeated Paris 530, Moscow 86.
Stacy, BOT, informed Embassy today Russians for second time have asked British
include 3000 tin metal as condition for reaching trade agreement. BOT preparing
refuse at meeting with Russians tomorrow but warned that Foreign Office may
soon raise with Embassy question of US reaction to possibility British debt
to provide 3000 tons when and if international allocation terminated,
Stacy stressed fact 3000 tons not large enough permit stockpiling and that
UK in its 5-year agreement with Poland had undertaken within CTC allocations
to facilitate supply tin not exceeding 1000 tons annually 1949-1953.
BOT uncertain why Russians putting so much emphasis therefore on such relatively
small amount of metal and are uncertain whether refusal to supply it would
mean impossibility reaching trade agreement and cancellation coarse grain
contract. Minister of Defense has cleared item.
regarding coarse grains, Ministry of Food contract involves one million tons,
not 900,000 as reported reference telegram, of which 500,000 barley, 400,000
corn and 100,000 oats.
Embassy representative told Stacy hitherto Washington had not requested tin
be placed on I-A list only becaus6t was subject international allocation
and that otherwise British might have been requested consider it for 1-A
control. Department's reaction including 3000 tons tin UK-USSR trade agreement
for 1950 desired soonest particularly if refusal supply metal would actually
mean both failure reaching trade agreement and cancellation grain contract.
Repeated Moscow 90, Paris 571.
DOULAS
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copy
CONFIDENTIAL
Encl. No. 1 in Report 494 of May 9, 1949 from the Bnbassy in London.
UNITED KINGDOM-USSR TRADE ARRANGEMEITTS
Status of negotiations as of May 5, 1949 for a new
12-monthst Agreement.
Comparable figures for 1948 trade are also included.
United Kingdom Exports
1948
Planned T
d
ra
e under Proposed
Agreement July 1 1949-June 30 1950
Capital goods under
Agreement L
4,000,000
Light rails
16 15,000,000
Capital goods, other
14,000,000
Tinplate
Rubber
12,000,000
Rubber
Other items, incl.
Cotton
cotton
13,000.000
Total Russian sterling
expenditure 1
43,000,000
Is 40,000,000
United Kingdom Imports
Grains, timber, potash, etc. b 35,000,000
Transfer from third
countries 8,000,000
Total Russian sterling
receipts 143,000,000
USSR sterling balance
May 1949 7,000,000
Timber
Coarse grains
Wheat - a "little-i
Manganese
250,000
140,000,000
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Army, MA London R-1595-49 May 10, 1949
Extract. Par. 1. from Recent Develo-nments in BR Trade with E. Eur.
The British and the Russians are now in the process of negotiating a one year
trade agreement to cover the period 1 July 1949 - 30 June 1950.
Discussions have been proceeding surprisingly smoothly. Board of Trade
officials are at a loss to explain the cordiality of the Soviet
representatives, but their guess is that it is prompted by the
recently initiated "peace offensive", by the low level of Soviet
sterling reserves caused by large purchases of raw materials
(espedially rubber) from the sterling area and capital equipment
from the UK, and by the desire to keep Britain dependent on the Soviet Union
for a part of its supply of coarse grains.
The Russians have requested only-two items on the British lA list,
industrial diamonds and tin.
In both cases the British refused to comply with the Russian request.
It is expected that the agreement will be signed in about a nonth
and will provide for trade valued at 30 to 40 million pounds each way.
Harry C. Archer
Major, GSC
Exed. Officer.
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