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December 12, 2016
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July 11, 2000
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February 28, 1974
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PDF icon CIA-RDP79-00798A000500120005-5.pdf234.41 KB
p ed lF # 'Re1e 200t 1 9/{ I R_ DP'i , 79 0,0500120005-5 EP TMEN~ T ~O F TAT February 28, 1974 .NO. 74 StatiDept. declassification & release instructions on file OPENING REMARKS OF THE HONORABLE WILLIAM J. CASEY ACTING SECRETARY OF STATE B THE EFORE ON TECHNOLOGY EHANGE WITH THE USSR MAIN INTERNATIONAL CONFERENCE ROOM DEPARTMENT OF STATE WASHINGTON, D.C. FEBRUARY 28, 1974 It is my pleasure to welcome to discuss with us and with each othyou State ertthehtrading ofptechnologyd- one of the key aspects of the normalization of US/USSR economic relations. The expansion of civilian technological exchange with the fort anCod newarey a stship withnus over the last few years. These economic motivations spill over and become a significant factor in improving political relations, which, taken all together, means detente. The Soviet leaders, and this applies also to. the Eastern Europeans and the Chinese, want faster movement in meeting the demands. of their people -- and of their economic planners -- quantity and range of consumer and industrial products. oducts.d TheyihaVe turned to us, to Western Europe, and to Japan forrdtheindustrial technology they require to improve their labor productivity transpochrtandatiodeveln and their energy supplies, and to up' their grade their as to produce for' or their domestic comsumers and for export to hard currency areas. Nevertheless, in the face of their recognized needs, I expect the expansion of technological exchange with the East to be gradual. There are several reasons for this: The Soviet shortage of convertible currencies and their limited ability to rapidly increase their exports. Development of new export resources and markets, after all, takes time. -- The Soviet centralized planningcandmdecisiont makinwith its heavy reliance on -seems for the rapid introduction of new, and p' ticus r of flexibility technology. particularlybfly fore reign, -- Their lack of personnel, both labor and supervisory, Approved For Release 2000/09/06 : CIA-RDP79-00798A000500120005-5 Approved For Relea*2000/09/06 : CIA3RDP79-007900500120005-5 broad front of interrelated subjects. These will involve increased economic, technical, cultural, and human contact as well as deepening understanding and agreement on political and security issues. We have learned over the past several years that this range of contacts is not only interrelated, but is mutually reinforcing. It also creates interests among a widening range of groups in maintaining stable and mutually advantageous relations between the participating countries. The Eastern bloc's interest in including technical assistance as a component of the deal and their clear preference for financing the deal by re-exporting a part of the production to the U.S. firm also poses problems, especially because of the general reluctance to permit participation from our side in the management of the enterprise. Some Eastern European countries -- Yugoslavia, Romania and Hungary -- have undertaken joint venture arrangements with Western firms primarily to overcome these difficulties. Poland is currently developing legislationstoopermit a similar approach. We favor such arrangements, in the belief that they offer a greater potential benefit for the U.S. business and, at the same time, help to create the kind of working ties between the U.S. and the other side's economies which serve the purposes of detente and making economic relationships work for both countries. As these ties develop and expand, the number of people in leadership roles in the collectivist countries who have a personal, vested interest in stable, positive relations with the U.S. will increase. In this context, I believe we will see a gradual easing of the restrictions on technological exports to the East. The rate of progress will depend in part on progress in other areas particularly in the reduction of political and military tensions. We are all - you, your government, and the leaders of the Socialist countries -- embarked on a learning process. Naturally, we will each, quite properly, proceed with caution, but we will proceed. I have earlier listed some of the possible obstacles I see to a rapid expansion of technological trade with the East. There are others -- obstacles with which some of you, at least, are already familiar. The Soviet negotiators are often far removed, bureaucratically, from the enterprises which will use the imported technology. It may be hard for them -- and, of course, for you -- to pin down the significant details of what is wanted, how it will be used, the work environment in which it is to be used, and so forth. Perhaps one of the reasons for the apparent Soviet preference for dealing with multinational corporations is the fact that our MNCs can offer a combination of U.S. technology, which the Soviets seem to prefer, with management representation from Western Europe, where experience in working with Soviet enterprises has developed over a longer period. In any case, as the level of U.S.-Soviet technology exchanges increases, it will be all the more important that we continue the exchange of views and experience between industry and government which we are initiating in this seminar today. Let me say a few words about quid-pro-quos. We can point Approved For Release 2000/09/06 : CIA-RDP79-00798A000500120005-5 ? Approved For Relee 2000/09/06: CIA-RDP79-0074000500120005-5 We became world leaders in technological innovation because of our aggressive pursuit of that goal. Our corporate managements embraced the challenge with enthusiasm and imagination. Our universities responded through curriculum innovation and a high level of basic and applied research without historical precedent or parallel abroad. Our investing public provided the necessary risk capital. In the last few years, the enterprise faltered and the enterprisers went through a crisis of confidence. I believe that we are regaining our earlier momentum. Government R&D funding is rising, as is corporate investment. An excessive pool of unemployed R&D scientists and engineers is rapidly disappearing. Exciting new technological potentials are opening up. This is surely the answer to the challgnges we face in the world marketplace and the best answer, as well, to insuring our national security. Approved For Release 2000/09/06 : CIA-RDP79-00798A000500120005-5 Approved For Release 2000/09/06 : CIA-RDP79-00798A000500120005-5 STATINTL 74 'd I / / 0 la,e Approved For Release 2000/09/06 : CIA-RDP79-00798A000500120005-5