MEMORANDUM FOR DEPUTY DIRECTOR (INTELLIGENCE) FROM MARSHALL S. CARTER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R001500050005-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 14, 2016
• Document Release Date: March 12, 2003
• Sequence Number: 5
• Publication Date: December 17, 1963
• Content Type: MF

MWAL4911A t04fl21k C Pc$0B01676R0015000500I5-8
Attached MIR concerns tactics of disseminating
info about Soviet and Chinese economics.
Also attached is letter from Governor Harriman
about a study in depth on subject.
Please note action for DDCI is Para. 3 of MIR.
DCI wants Harriman's letter acknowledged
affirmatively.
STATE review(s) completed. W. Elder
16 Dec 63
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FORM NO. 101 REPLACES FORM 10-101
I AUG S.
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17 December 196
MEMORANDUM FOR: Deputy Director (Intelligence)
1. The attached Memorandum for the Record dated
13 December prepared by the Director has previously been
discussed by the Director and me with the senior officers
of the Agency.
2. In connection with. his action directive on the
second page, the DD/I is designated the responsible com-
ponent for the development of the comprehensive program
of dissemination as well as the development of the deep and
more comprehensive analysis required. Coordination will
be effected with the Board of National Estimates and the
DD/P and, in accordance with Mr. Harriman's request in
his letter of 9 December, with INR of the Department of State.
3. The Director has stated that he wishes to be fully
responsive in this project.
4. Please give me by the close of business on Friday,
the 20th, an indication of the course of action we propose,
since I feel reasonably certain the Director will not wait until
the 23rd to bring this matter up.
Marshall S. Carter
Lieutenant General, USA
Acting Director
r
Attachments:
1. DCI's Memo for the Record dated 13 Dec 63, Subject:
Discussion on the Development of Articles on Soviet
Economic Situation
2. Letter to DCI from Averell Harriman dated 9 Dec 63
Distribution:
Original - Addressee w/atts
1 - DCI w/att 2 1 - DDCI w/o atts
1 ER w/o atts 1 - Executive Director-Comptroller w/o atts
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13 December 1963
SUBJECT: Discussion on the Development of Articles on Soviet
Economic Situation
1. I talked with Secretaries Harriman and Johnson, proposing
my plan to have the considerable amount of information on various
aspects of the Soviet economy placed in a world-wide news media.
I said that I felt that the information which we had developed on the
Soviet economy in general, Soviet agriculture, the trends of Soviet
foreign economic aid commitments, the lag between commitments and
drawdowns, the facts about the Soviet, gold and foreign currency
reserves and the imbalance between the sale of gold and their produc-
tion of gold, all should be brought to the attention of the people
throughout the world. I said my purposes were twofold. One,
factual knowledge of the Soviets' precarious economic situation
would have a considerable influence on the "undecided" leaders of
many countries throughout the world. I mentioned Sukarno, Toure,
a number of leaders in Latin America and even Castro. I pointed out
if these men understood the facts, they would realize the precariousness
to themselves of depending heavily on the Soviets as an alternate to the
United States as a source of help and aid. Secondly, I felt the Western
European countries and Japan should understand the situation and
should realize that extending long-term credits to the Soviets was
precarious and secondly, would aid them in a manner that would
ultimately work to their own hardship.'
2. All agreed without reservation that this would be a
most constructive program. State have requested that we prepare
a deeper and more comprehensive analysis than was included in my
presentation to the NSC and the Congressional Leadership and I told
them that this was being done.
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UNDER SECRETARY OF STATE
1WASr1NGT0N
December 9, 1963
Dear v ',-n:
O-:- November 15 and 19 _ -interested o-ficers of our respec-
ve c__ Ja nizations met here in tine ;epartment to discuss current
conom-ic weaknesses in the Soviet Bloc and Communist . Asia
:,xv
these c~ sciissions progr'essea, ^ the -value of a' written summary
cf these weaknesses for use both here and in the field bcair~e
. a_ "en'-
Ater discussion of this subject among those concerned,
it was generally agreed that the material and facilities avil-
ub:'. e to your analysts on Communist economic matters (ORR)
ere best suited to prepare the type summary desired.
I hope, therefore, that your agency will be able to assign
a relatively higE priority to the preparation of such a papers
Su.b j Its which should be covered in the summary include the
following:
iris * Union:
Soviet economic growth performance;
basic problems in agriculture, industry, finance including
foreign exchange, foreign aid, and foreign trade; competition
between military and civilian economic requirements; current
n1 future trends re investment and critical resources alloca-
ion; ,roblems of management and tight central control, Party
i ;ter erence, etc.
2. Eastern
'22,Le Honorable
John A. KcCone, Director,
Central Intelligence Agency.
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2. Eastern European Bloc: problems in CEMA; current trends
toward trade with the West; basic problems in agriculture and
Indus try;
3. Communist Asia: Chinese Communist agricultural and econo-
mic problems; impact of the Sino-Soviet rift; developments in
:worth Korea and North Viet Nam,
I presume that your experts will be in close touch with
our spec'.-.lists in INR on this project. The members of the
it r-agency Psychological-Political Working Group, on which
your agency is represented, p)-an to use the proposed summary in
z- variety of ways--diplomatic, informational, for background-
-_ng the press, etc,,--to expose the weaknesses of communism and
to strengthen the position of the free world.
I believe a document of 25-30 pages, single-spaced, should
cover the ground adequately. I would hope it could be completed
by the end of the year. Emphasis should be on content Y'er
flan style for the paper will be a basic working document
--.that
will be tailored by the Working Group for a wide varietyibf out-
lets. Insofar as possible, the .basic report should be Undlassi-
lied though a classified annex containing details and backixp
material would be useful to the Working Group.
Your cooperation in this project will be much appreciated.
Sincerely,
W. Averell Harriman
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