DEAR DR. PROCTOR:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01439R000500100009-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: February 28, 2001
• Sequence Number: 9
• Publication Date: May 11, 1972
• Content Type: LETTER

proved For Relea 2002/08/13 : CIA-RDP80B01439R000D0100009-
Dr. Edward Proctor
Deputy Director for Intelligence
CIA
Washington, D. C. 20505
11 May 1972
STATINTL Last night at the we discussed foreign R&D investments. The
attached paper was prepared a while back based on a variety of sources.
The civil R&D numbers came from Mike Boretsky of Commerce and
Pete Peterson, then of the White House and now of Commerce. The
cross check on the civil R&D figures which tends to validate them,
other than using the fact that they come from official figures of the
governments concerned (but in their own currencies) is the rate of take-
over of US and European markets with products which are technically
superior and of native design.
I haven't done a net assessment of US/JAPAN comparable to that of the
US/USSR, but an approximation could probably be done by listing the
products in which each country had technological superiority in 1960,
1964, 1968 and 1972. This qualitative cross check would show where
each country had selectively applied its resources. We know that the
Japanese have a significant technological lead in optics, portable TV,
small internal combustion engines, ship construction, etc. The US
is ahead in solid state MSI production, heavy machinery, aerospace
construction, gyros, etc.
The Japanese R&D effort is significant in two ways. It has achieved
selected superiority. It is at a level which indicates strong national
commitment -- something backed up by the government subsidy and
import barrier actions (e. g. , computer technology).
A better comparison between the US and Japan would be possible if the
Japanese effort were priced out in US terms; i. e. , what would it cost
ASSISTANT SECRETARY OF DEFENSE
WASHINGTON, D. C. 20301
Approved For Release 2002/08/13 : CIA-RDP80BO1439R000500100009-9
 Approved For Release 2002/08/13 : CIA-RDP80BO1439R000500100009-9
the US to produce the observed Japanese results? As far as I know,
this approach was not used by Commerce and Peterson. Rather they
converted Japanese currency input to US currency input by a general
factor. Would be interested in your comments and data.
Sincerely,
25X1A2g
Approved For Release 2002/08/13 : CIA-RDP80BO1439R000500100009-9
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