SECOND DRAFT OF REPORT TO THE PRESIDENT ON U.S. POLICIES AND PROGRAMS IN THE ECONOMIC FIELD WHICH MAY AFFECT THE WAR POTENTIAL OF THE SOVIET BLOC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01143A000400110002-5
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 67
• Document Creation Date: December 9, 2016
• Document Release Date: July 11, 2000
• Sequence Number: 2
• Publication Date: January 31, 1951
• Content Type: REPORT

Approved For Release 2000/08/29 : CIA-RDP79-01143A000400110002-p7.
Revised Draft
January 31$ 1951
::,ocead Draft
of
Report to the President
on
U.S. Policies end Programa in the Economic
rield which mrgr Affect the War Potential of
tlu) Soviet Bloc
State Dept. declassification & release instructions on file
SECRET
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Approved For Release 2000/08/29 : CIA-RDP79-01143A000400110002-
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Approved For Release 2000/08/29 : CIA-RDP79-01143A000400110002-5
SEOLL,..;
ViWentelw,weanver 44/04141, 010
ZUEI
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In'c,rodTzation S eewa oft ww c,an.
1
0?1 0.10
rt Is nestits of-Ama7sis
3
Part DatIonneridatieris. - .. . ......
7
A - FccommeLdations 6n substantive measures .
7
VL
B Peenmerdaticne ea to organization
.13
t ncseS fel -Conclusions and Recommendations
-
16
Vanoratility of the Soviet Bloc to Existing
and Tightened Western Economic Controls... -
-
16
B Dionomic and Political Aspects of Trade of
. Non-Soviot Countries with the V,oviet Bice
-
22
Techniques for Denying R83011TeeS to the
Soviet Lim - . .... 410
28
1?.Complote adhere?
29
2? Export,Controle - -
35
3, Preclusive Operations .
45
4. Denying Funds to the Soviet Bloc
50
5, Blacklisting
56
6, Control Technology
57
7, Shipping Contras
61
-8, Citil Aviation 041 4?0, 40/ 410 010 .......
00410
64
, 9. Positive Programs for Economic Strength -
65
SE CR -E T
Approved For Release 2000/08/29 : CIA-RDP79-01143A000400110002-5
SV0ORET
Approved For Release 2000/08/29 : CIA-RDP79-0110M0MQPII1Mu5lry 31, 1951
IVTRODUCTION
It is abundantly clear that the Soviet coMmunist
threat to the security of the free world cannot be reltoved
at this time through the processes of negotiation? The
principal hope of averting Fl_obal ware short of coMplete
subjection to Soviet communist aims, lies in the bui1C,ing
of greatrmilitary and economic strength in the free world
relative to that of the Soviet orbit.
The creation of superior strength in the free world,
relative to thet of the Soviet?communist world, reouires
the adoption of two kinds of measures: positive measures
in the free world to build up its armed forces and increase .
its production of [400ds end services and strengthen its
political framework; and negative measures to limit,or
slow down the, growth the Soviet bloc war potential,
to limit its production of goods and services, and
weaken its internal political ties, Short of orenewarfere,
the negative measures in the economic field must consist
largely of controls imposed by the free world on its trwae
and financial relationships with the Soviet orbit with the
objective of impeding to the greatest possible extent
Soviet