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November 16, 2016
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January 4, 2000
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May 5, 1950
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Approved or Release 2000/04/17 : CIA-RD1a79T01049A000200020011-2 Approved For Release 2000/04/17 : CIA-IRDP79T01049A000200020011-2 -4- 4- Approved FAsohaim .?.2ppfri01049A000200020011-2 (91414 Project: ZPUO To: OFFICE 01? REPORTS AND ESTIMATES kr,.41100.11.11=19.n...fteausto Date; 5 y 3.950 From: Publications Division, Projects Planning Subject: Rismwart 0t stratigio 00mmolitiss from Latin Amerios fildittagniaLitsisal aljut intsr011 ( gip Vphrnilb Zoos tice on the subject above. JEWconfirms your delivery of this proj?st this date. ibility of a coordinated (study on this subject =glared et s later dates ,aughtgatIlLfazi: Egaux (arla & ke4i..10.1LIZZIa= S Il9moial32....111,x4ll9s Win lausiaLgzsal DIU 11132111,214A-1auP-s ilkswo figszaiWslkssitimualls Requeutor car Dialnifnatisq AV 5 ikr 1950 QatioUSUP Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2 (014FIDifITI AI. Approved Project: Righttittn 392 Project: \e?\ko V-0.9 c\(kbblE eE gitepplortoi 049A0002000200 OFFICE OF REPOR.TS AND ESTIMATES Eggitsdaaktialismatemalin Date: 5- (\NI SI) To: D( Pros: Publications Division, Projects Planning Subject: Qize4stsik- btAt GSThJYYk(Aittli 6(,, ?tateceprt of Proiects 4A4:04-1(te& (3n) &dam 13 Airycvacirce.4)Opk.11/4*.t cs?t5v_t, Arini 3 kdAriZ: "TiCt \(61-"' 41c:T aCi-4( ? 1-6 kee5q t6N(gtt Ci-444 sky-1)y (314 AriasusautLiads ea4aNtad cx- Wel ZWAL katiAlaJelaolia0 Mcut c(R-ze.)-0-4) jimnqpsible D.I.v1,9441:1:3(Ec_ 25X1A lationaLgagainelat I LA Devartsgmta RestIonsibplities: N5-N?k_ 2adiggatiSalaa.t212.22.11AM=P Re orss._,93/21,tal t 252-ck\seAks/ etiSy Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2 Approved For Release 2000/04/17 : CIA-RDP79T010400A000200020011-2 .Vy.c6SLQ. gosk Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2 25X1A 4 . Approved FoshRelease 2000/04/17 : CIA-RDP7V1`01049A000200020011-2 SECRET 14 April 1950 NEMORANDUM FOR: D/Pub, ORE ATTENTION Nr. 25X1A SUBJECT Request for Information re Re-exports of Strategic Commodities from Latin American RERENCE ? ? Our Case #K-1388 25X1A 1. In a recent discussion with Mr. 111111 Nr. of this office was informed that various agencies of the govern- ment are maintaining records on strategic commodities exported from the United States to Latin America and then re-exported to Europe. 2. This office is particularly interested in information of this type, and especially that which would indicate the U.S. shippers, the Latin American consignee and the European consignee. 25X1A 3. It has occurred to us that a cardinated study of this type of activity might prove to be of great value not only to GPO but to other elements of the government. Such a study might also include information on purchases in Latin America made by Russia and the satellites or their front organizations. 4. It is requested that your office explore the possibilities of ORE's initiating such a study and indicate to this office the results of such inquiries. 5. Nr. 1111111 extension 2710, may be called upon for additional information if necessary. 25X1A Actin lel', Intelligence uppor Approved For Release 2000/04/1gatfDP79T01049A000200020011-2 - Approved FbleRelease 2OOO/O4tE1CIA-RDp _ _ _.... ROUTING AND RECORD SHEET INSTRUCTIONS: Officer designations should be used in the "To" column. Under each comment a I i ne should be drawn across sheet and each comment numbered to correspond with the number in the "To"co I umn. Each officer should initial (Check mark 1 nsuf fi ci anti before further routing. This Record and Routing Sheet should be returned to Registry. .. FROM: ISB 14 April 1950 NO. DATE TO ROOM DATE OFFICER'S INITIALS COMMENTS NO. REG' D F0'0 L D/Pub ORE Mr.r...- 2318 1-4-r.e.-- 2. 25X1A 3. 11. 5. 6. 7. 8. 9. 10. 11. ? 12. 13. 14. 15. Approved For Release 2000/04/17 : CIARDP79T01049A000200020011-2 ? FORM NO. 31.10 SECRET Approved Fo?Release 2000/M . D0001049A000200020011-2 I-4Ra Note: The clansiacation of this memorandum must be raised to conform to the classification of the draft it covers, Date 4 May 1950 MOB/111MM FOR GRIEF, PUELTGATIONS DIVISION SUBJECT: Transmission of Draft Report 519 ENCLOSURE: _116.7221.1p of Strategic Commodities from Latin America 1, Enolosure is forwarded herewith for review and, if required, Thr formal coordination with the departmental intelligence organi? zations. not 20 This draft report has( been coordinated informally with the organizations checked below: RikkuJAM: p/di Dim PiTr PME D/FE piNs tvtA DAB Limu DAC Other ggIa142SAL State (OM) Army (ip/dsusa)--- Navy (ONI) Air (AID) Other 3. Maps end/or Graphics to be included in thin report and arrangements completed for their production by the Map Division or the Presentation Staff are as fellows: 4. 92MOMIEL 25X1 A 111.1111)11 Deputy EconomicitSRL_ Division Fetl...?0,11.? Approved For Release 2000/044,0A, IRP79T01049A000200020011-2 Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2 SECRFT Plga"." 1 /thy wic;'arrare 2$rnnolls 47 Re-oxports of Strate4c Quiroditifrn Latin Anericc Refers-noel :!'"WROV,:-Ualitla of 14 April 19b0 from ultincr tIhief* IntolIIP httentioni Fr. Low tl'Airrr . There is little evidence cc treneshipment or re-exort of strntogie sommt,ditiee fro the United rt.173e.6 to 'Europa) thronla T.,,,,tirtAstriosn countries. There it sons evidence of ottompted trensehipsonts, Such inetcto hi,ve cone to the TAtention of this ()trios 4-ire listed in Appet.dix 1. greHter ftane tthi* tins is the export r strzteeic neterinls ProrixLtin Ameritmn countries inzludiew nottally copper. lends 1-ino, InOnstrirl 41th rerArd to persetrsph i of the referenclq the rconosio '44rfAre -2,1ranch of Dfle is of the opinion that It is desir,- nble, to ascertain if any studio)* ere in process, or ate pr P0A01 within the Government, thst deal with the *cosset,: fArpsots of 'Latin Anerieess position in the cold wer end In P possible Altars emergency. If sot* this h?Adsch is of t1.. opinion thst such R study shonle. include en sn*Vtls tf Lt.n.,.noricpn trade vith rorope1 the poseibtlitr of TeTalel tion in oNport controls osid of com.ordintAed ecentnic 1Trh, fr,re nw7sures in the event of' wsr, Pitt present export licensing procedure, purticanrly a* it naests mhipfoents to Lfltin America, le discussed in, Appendix 2. Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2 Approved For Release 2000/0SEERETA-RDP79T01049A000200020011-2 APPTIOI4 I A. This report of traneshipments Wah made on the bests of the goesen1 catecorine foued in the US lA end ID nets. There are no reports of trennehipments iu the following; Caul equipmeet Oonetructien aad conveying equiprent 7lectric powor apraretue 7ribere )441181 werkine mechinery erecinion instrueents eubber and. rubber producte Zclentific equepment, preeiftion instrumfelts. etc. Steel mill products evideuce available in the files of Nceneale 'ftrfare Breath ie to traasehipments of strategic items via :Latin Americe le iedicated blew.. ite?Leit.41- a, etate Despetee to liereaw, Fe. 908, dated e6 December 1949. Inxilviduel named 4delslaw Drone*, of Argeetine reportedly I* collaboratioa witn kelish operator Antoni Jaroesewice re trans- sittements. Letter connected with attempte to secure carbon elecit for shipment vie aottcrdam or Antwere to Csechosieeeien tire leduetre. Ala AL) pt.:au:La dated 9 Juee 1949: Guillermo Arinee TOletROG, Belivien eeile now lace:tee in Small reported to be nemegling 1n4ustriel diemeedr to Argentina to be turned over to Soviet 2)Kilegrgy for shipment. b. dated 24 April 1949; David Laft reportedly Yee pria- c#61 contact in (lhile re etteepte by ?olio h legation (Beetoe eiree) officials to eecure nitrates, copper, etc. Thee attempts %fere epparently eneucceseful except with respect to 4nentral4 cluntrY traneeniemente of copper. C. Stet, Detpetch to Moetevideo, Mo. 196. dated 6 May 1949; COSTISZX of Uruguee hnd eede prelitinery errangemente to tort graphite electrodes throu4h eentevidee to ru of BueitTe,st. but Were uneuecessful. d. State Despatch A-63, deted 21 49; local rumors have been circuleting in India to the effect that the Auestene ere pure ehening mice in lrezil and Argentine, but investigation by US eWJastities discloses GO StMhtuattatiME evidence. 4 there to eecoefireed evidence of traneenipment of indmstrial Approved For Release 2000/04/17,41)k-RDP79T01049A000200020011-2 Approved For Release 2000/M:1211A-RDPMT01049A000200020011-2 diamonds from thie country through Vu. &1a, but to definitely snabWintieta the allegation. f. %Annear-- of eopper. lead and Xi= (indigenoue production an in- portant :7ert of the export tr-de of morel Latin Asericso rif;lf? and beer-nee of their etrLAegic significance here considered. 'Mere ere nucus reports of shipsentr ty Chile end Yexioo of ocyper to testern Earevven nestinatione vis westAfra Turoputat intermediuriee, report kttted 17 March 1960 from the Anericn retessY (gssie0) trutteetes that sithouilh Onere de kIsozico aseects it lium,e refused to suPPlY slectro- lytie copper ta the Soviet., the record shows that only sode*t diligence durinG 1949. Purthersore, the Intassy believes that Cobre will not be able to imAsuent this elleged _policy of non-s&le to the toeviet4 protatile thipmeate in 16b0 to 9tviet destinition, total. t4000 tons againet 1941 deliveries of 4,600 tons, Slane precition mwfhinery (of the typo desired ty ut,..44i1) is not in great daxLut In 14,tin Ameries, (developments in those countries requiring hnnvy construotlan 4quip=5,nt0 drilling machinery, 0.c.), it is nut believed that thre have been i! nm in thin line. 1urtherre, such shipnente could be easily detected because of their incongruoue natiare. 11;41 ft, Sotto Jetch 110? 1066 dated 24 Dee. 19491 An unverified report emanattnc from e United i',.tates shipping coiapauy office indictee the trassehient of uso4 drilling machinery froo Venezuela to Trisste for Asstrin. Although the e,overnment keeps a close watch on imports of drilling machinery, it is passible that seconi-h-4 dealers might export certain quentitiee, , There is an unconfirmed report of an attempted purchnee in the United noses of a considerable olrAaity of steel Ornes to be ehipped to Curacao, there to be loaded with petroleum Ilroducte (usepecified) for shiponnt to un annetsifind dftstisation, prenusably Chine. There here also been indier,tions of unusually large shipments from thin country of tetra-ethyl 1664 to Mexico with the ultimate deetination unverified. C. Th',t there is *mall possibility of traneshimente of 'petrolle.m stem is indicated by a etatement of the Creole Wetroleus Corporation to the effect that every precrolion will be eeercised to prec1u4o the possioility of the F.ovielit orbit uWm-tele roeTuiring excessuipmant such as drill pipe, ri-e, en4 tubing, EA.Lg Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2 - 3 - Approved Fop Release 2008teithCIA-RDP79T01049A000200020011-2 9AN1 25X1A 25X1A b 25X1A 25X1A 25X1A Source rsoorts thmt 100 P 4 engines consigned to RAP, Trinidad* wore restencilled to V.0.Tschnopormimort* P=aeoow. Aeration lecionales de Colombia* (aV1A,10,) has been purchasing what is believed an abnormal number of tires (moat'. of Leine, used on planes of the W-3 type. 4 number of which are ia oper&tion in curtain countri.:s. Thare is a nrennAp- tioc of tmneshipment. c. state 463-patch to Jiera no. 7,), eated 16 Jae. 19o0Z Falai of DUIAOS 4ires reportomly engagou in transaction whereby Csechoslovekis iU receive ....endue arernIt. Will Se .fgccorg7lished throu4h intomedierr naxelt _ottermann locatei in 7-urich her planes will be flown for trrnenrapment. dated 25 raroh 1649: Unverified report of shipment from Italy to Buenos Aires of contraband for orentuel tmnsahiptient to Odessa. ;74:ise despatch indicates purchase by Albert :6ori. iknd Co 4;:,4y (It&lian) of surplus US army trucks from ItElian aovernm. Thr shipment to Argentina for eventual ship4ent to ussa. dated Cot. 1948x .i'urchse of 600-1000 surylue trucks by Eym,a :qchaele Co.* Chicseo, for shipment to Eritich fAxinee from whence they will be ship ed to USSR, tit P19011Aa4094k a. W.te Depirtmat Deily Summery* 3 Deo, 1945: It h!la been reported that the chief reason for Eulgarian interest in sendinG a tracts mission to Arcentina is the hope th,t ltulgarir could use Argentina es a channel to obtain US goods denied export licensee. 114 (71A Memo dated 16 NOY. 194S; Hungry is making rratee4tentr to set up Purchasa44 360nOY In Cuba. Sem,1 stmo indicates that Amerivtn mannfactur- ers have been assured thNt Hungsri,sn purchases could be rmted through Holland aAd Pilrium. The presumption is that Cabe, 14 to be used for the ilaxe purpose. dlted 4,lay 19419: Indiottions thlt at port of La Gueriara in Vencenel? freight ie being transferred directly froag ehi-ft to foreign vassal*. Presuglably the 1%xity of oontrols in this pert v)eraits Such transshipment Athont anzi custom, control. It is, believed that much US equipment ostensibly destined for Peru is: bland: re-exported, 'p.rtrzierily to It%ly. This belief substantiated la- font that Peru ia incapable of absorbing szonomiolly all the incon,ng materUl and osovuee the col-dollar relationship would not permit math volume of 113 Approved For Release 20044iZE4IA-RDP79T01049A000200020011-2 Approved For Release 2000/0471 TCIA-RDP79101049A000200020011-2 e.4.p Contact with Commercial Intelligence hraneh of the Department of Comme,as falls to reveal any evidence ta that office of substhatial tranlehipmeato of strateGio items through Latin. America to the Aloe. Orto flagrant example, however, was the ,4tempted shlmont of carbon bleat frola the United States via Mexico to the 3oviet floc which rqsuitsd ia the suspension of license privileges for two exl-ort firt,I. This report Is reproduced belmq: ::11,e1 Journal of Commerce, 7 Yobrunry 1915() cxport privilegeh oz :me ;4ex1ota concerns. InoluaiLz their ?lvileeen ol Partie'AAinC in shipments a* either consignees or forwirders, htkv0 iMen suinued for violmtiOn of export control rag- ultl'ind, Olt announced. ,ftor retiev,..00th firms were found to have Sz.en p.4,rt ia an attempts4 shiT;ment of carbon 01,01( trathet, 0, to .li;urot,,eah countries without license throact tbe subtertugs of snipping to Mexico anti tA'mqssuipping to JAirepe. A1ex4ieder H. Donna, who operates an orU t NeXi04 City ktrin -* jietrib-lidora Exclusivn. A.A., was fouled to have purchased the cmrbou sit:ea la Texas*, shipped it to A&mit140 under eroort declarutiol* falsely namtn? aiself as the ultimkIte cometemse, z,nti. then resold it for shipment to .1mrope. The suspension prevents Damao for 9eriol Or W.4thei frOlt 00144: & perty in thk4 exportatiox of .:ny commodities ppearl on the t)IT :;%asitive -int. incinded was 1.0J*Ci0 YernJaez, Reference is made to State Circular eirgram of Ld January 190, In which the nepartnente,41-9emmere::- and state have expressed their concern over the transshipment of various commodities of U. k5. origin thrzAngh eo4r-, couutries to Fistern Parapet, . Ue direct export of such comi444ttlue from Latin filiWriCa. This airgrNm roquested all U. S. missions is netin iss-trica to tsomrat out . The possible effectivemest of, coopero.tion in the United 61tAtes by Au'rican Cor- ,nerAloal having subsidiary campmates in Latin America pro- or exporting stret*gic comodities, o. QOtaiainc the ooatrol of exports of strategic commodities from matin amarici-,n countri(,* by suSsidiery companies of Ameriwh firms ty 3020W44 care-.ct throu:L:h the ;,er,-len 3srviee vith the subsidinry e, aata4%iithment o: effective parallel export controls, (athk,r formai or iilfort,aa, by Lttin amerieen countries similar to those now under negotiation with certein ,.oestern ,,:nropeaa countriss. ' Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2 Approved For Release 2000/041*1` CIA-RDP79T01049A000200020011-2 ? the iont is,t14 fereeee control of copper, load, and ties in reeponoe to this eirgram have uow ben fassibilities of trAce ipent are a la iie of this country,* critical dollar position which has result ntrol over imports. Yurthernore? all esporte must be and applications ere elosely sorutinixed. Strategic mate duos& in Argentixa are either locally consumed or kept from the *rid market, as in the case of tungstee, by high production costs, otietiOn with perent compenies in the lJtellted States havieg subsidiaries in Argentina would *sem the poet effective approach to theproblem, rather t the beet pr re, by the government i *Jitney and venalit roduction of cop?* f world production in the United Stet** isitonwith parent eonpeny in the United, States, roach to Soliviaa subsidiary, is believed The establishment of effectiee export control hought impracticable in view of the twin- the Bolivian buttaucrecy? Although Bolivian ad and sloe reprecents a *mall preportion ablishment of market* for th,4oe products Fount/on of stockAle purchasee) is believed advieeble to ecure favormble Bolivian reaction to imposition of port control*. h er 54 lifle are extren mince the Uwe Nast *factory 4fle =sent could not cOezo4tties 1 a Giblet toe nation* r ader t t point, subsidiaries roblem of sport control, v, and irregular rob?blc the use of Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2 Approved For Release 2000/04/1J CIA-RDP79T01049A000200020011-2 'Te-Dre'T Cuba Insofer as kAovn, nO treneehipeente have been sled, thrcrell Ocoee, ena the embesay believes all Cuban exporte of iodioatee eetereele ore to the U. $* ee Dominican aepablie There hae never been any trade of coeseqmenee between the Deninleee Republic and Eactern gurape, nor does the county: produte any of the strategic comeodities ia question. The eftbesse bellevee that control thtough parent comeanies in thm eould-be the moat satiefectoee toothed of control. eiseador. Peeposed steps-veuld ue 1f?otive itnct otiota1s aTe in seepathe with tenti-eueeiea steps teemed esseetial by the U. :ek, government, although there is no indication that the situation is especially epplicable to 4cue8or. el Salvador The production of strategic eieerals in RI eeeligible, ane in 1.940. all vent to the U. S. Guatemele Control throudh he -parent compaey in the Uated A9.1,04 is considered the best approech. The establishment of general expert controls is not considered advisable unless, unity Of action throeghoet Latin America could be achieved. It is emphasised that Guatemale is not en ineortent exporter or importer of stretegic materials. 10. Haiti Ther e is no traeeehipment of the only etrateele produced in this territore. nenely. steel* 11, Honduras Poseibility of transehipmeat throe, this couutry %a doubtful; ehipnents of oepper, lead ancil xinc either from or through Honduras are eegligible. Establishment of general export controls is not advocated except on concrete evidence of prejudicial shipmeets Vrem Honduxes. le. Mexico Traesehipeent from Mexico to Soviet bloc destinations of etrateeic comeoeltios appears to be negligibie et the present tte. le, kicarneux tnee eel:Aber produces nor exports copperf lead, or 4inc. The webesey believe* that an approach through parent companies in the U, S. would be the most effective means of control end thet controls by eicaregun would be indicated only as an extreme elearere. Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2 Approved For Release 2000/04/17 . CIA-RDP79T01049A000200020011-2 4. IA. 18. Rt1 art not o asidered of anat No special deuce of tru4pnt available at tht tine; ny believes it would not be difficult to secure par el catrol if so desired, 18. Uragua7 Aetioa throu iJ S.pGttons e approach. it is p1nted out thRt tive export c4a rol 5 e* and thut licibIe. s ao evidence at this ti U, 3, are being diverted frost Vend els Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2 141 Approved For Release 20001941:-CIA-RDP79T01049A000200020011-2 APPUDI4 II P4KUNT ,IXVORT "SIN a7, TO4A3/1 , tit commodities, fez which a validated export license is required to any destination are found in what is known ae the Positive Lit, 7or :loch commo4tt7 au th* ;Positive List the wares of controls is desiLated as either wRw or wiOw. The ores. wAw has been rade- fined to loclude all dostinatione outtiie the Western Hemisphere. All other areas, except Canada, fall within? the wO* category. Latin kaerion countries, therefore, are now classed as wOw destinations nod Ara excluded iron cantro15 applying t* sk* destintAions. 2. ,4'or the purposes ur administering export eontrol, there have been developed ,the lit (embargo) list, and the lb (quantitative control) Itet. The area of control for all easoolity categerien contain/4C IA iter44 is liao4 and therefore, licenses i:4411 re4sired oo 111 oxperts for all deetinations except '!...nantn, Control is exereised over Imeh IP items as 0,-.44 be easily transshipped And to non-security items the export of which is controlled for reasons of short supply in the United fitmtes. the remainder of the Positive Asti, ie, 13 items not easily transshipped, require licensee only to destinations. Approved For Release 2000/04/17 : CIA-RDP79T01049A000200020011-2