ECONOMIC INTELLIGENCE COMMITTEE Minutes of Meeting Held in Director's Conference Room, Administration Building 2430 E Street,N.W. 27 September 1951

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00283R000100180008-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: November 9, 2016
• Document Release Date: July 21, 1998
• Sequence Number: 8
• Publication Date: September 27, 1951
• Content Type: MIN

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SECURITY INFORMATION
ECONOMIC INTELLIGENCE COMIIIME
as
? Minute of Meetin held in
Directoree donferenn ocup dRIBIAFatiom
2/067 Nirget711711;
01.01.0.1MAIMIO
27 ?, temjs12._er 1951
PRESENT:
Dr. Max F. Milliken, CIA, Chairman
Mr. D. . Doherty, State
Mt. Howard leadsmen% State
Mr. John F. Kullgren, Arui
Col. Lloyd R. !McAdam, Argr
Cdr. Donald CP Deane, Nary
Dr. Edward Allen, Air Force
Mr. John Erdal, JCS
Col, H. G. V. Hart, JCS
Mr. Stanley Andrews, Agriculture
Mr. O. V. Neils, Agriculture
Mr. Edward F. Denison, Commerce
Mr. Henry Canfield, Jr., Interior
Mr. Joseph He Taggart, Munitions Board
CIA, Secretary
CIA
APPROVAL oF lawns
nteresoffenowsemmo
E.311,44-6
4 October 1951
lb Actions The minutee of the Economic Intelligence Committee meeting
of 13 September 1951 (EIC.4&-5) ware ammiNK1 'with the following corrections:
(a) In paragraph 15, last sentences delete "preparation of a
coordinated paper" and insert "initiation of a survey of research
pr o grams
(b) In paragraph 18 change reference paragraphs from n21 and
22" to "19 and 20."
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?0??? QR. WI. Om, 0?117.
44141111V INFORMATION
EUIPCPT ON :THE ? PROGRESS OF SUBCOMMITTEES - GEt
Page 2
-2. Action: A proposed associate member will be considered as approved
by the En-Irlib objections to approval are reoeteed,by the EIC Secretariat
before. 1700 hours of the day of the EIC meeting at mbich the ncreination is
announced.
3. Mr. Irwin N. Heine, Chief of The Division of .Ship Statistics,
Maritime Administration, was approved as an associate member of the
Transportation SUbcommittee,
4. Discussions_ Progress of subcommittees WAS discussed in broad
outline."Tr7rael?pliinted out that subccamittee minutes are being distributed
to all EIC members, giving more complete details on eotivities.
TERMS OF REFEREIVE FOR SUBCOMMITTEES.
? 5. Action: Coordinated terms of reference will be distributed be
EIC meMbeFs ra. consideration at the next meeting.
6. Items agreed that the attempt to cast terms of reference An a
common mold should be held to .a minimum, on the grounds that individuality
should be entouragede The EIC should coordinate only to the extent of
removing conflicts among terms of reference of different subcommittees.
7. - It was agreed that no attempt should, be made in the terms of
-reference to spell out in general terns the relative importance of different
functions. The EIC should instead provide from time to time such guidance
as is required on the importance of particular subcommitteeactivities.
Arrangements Should be made for subcommittee chairmen to meet with the
EIC from time to time to discuss their problems.
PETROL= ADVISORY P ? Is
a. Action: It was agreed that members of adelsory panels Were
selected Tariis individuals then as representatives of agencies. Hence
there should not be any provision for alternate panel members.
9. It was agreed that the Petroleum Advisory Panel should select
its own chairman.
10. Discussion: The difference in nature between subcommitteee and
advisory pan=rr-as pointed out. LIeMbere of the latter are chosen more
for their experience and knowledge as individuals than as representatives
of particular agency viewpoints. -
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NOlf
SECURITY INFORMATION
Eic?m6
4 October 1951
Page 3
WORKING GROUP ON THE ECONOMY OF WESTERN EUROPE
U. Discuseion: Work for NIES.40 is proceeding on schedule. State
has taken BrEST7FEU4y of machinery in Western Europe because of the
inability of EGA to undertake this work at the present time. Ways have
bo found to surmount most of the obstructions to research on the
agricultural sections.
12. The question was raised whether the terms of reference for
NIEe40 specifically, and for other NIEls in general, were not overolassified.
It was pointed out that most of the NIEls concerned subjects that any
foreign country would expect US intelligence to investigate as a matter
of course. Dr. Milliken stated that this security issue was being taken
up, along with related issues, at appropriate levels.
SURVEY OF RESEARCH PROGRAMS ON TRE ICONOMY OF THE SOVIET ORBIT
13. Action: The Secretariat hopes to, present at the 'next meeting
a preliminETWport covering all categories surveyed.
14. Discussion: The Secretary pointed out that it has seemed
appropriatg?t3iNFirbeyond the original intention of surveying research
projects in being Information is also being collected on the general.
nature of research programs, major gaps in knowledge, and personnel
engaged in research. A sample of the form which the survey might take.,___J
was distributed at the meeting.
POTENTIAL INSECURITY OF FOREIGN AREAS OFSTRATEGIG IMPORTANCE TO THE US
15. Action: Ge2 is proposing to the IA G that a series of National
IntelligenartStlmates be undertaken to survey key factors that might
endanger the accessability of strategic world areas to the US. The EIC
will probably be involved in evaluation of the major economic factors.
16. It was generally agreed that, if such studiee are to be undertaken,
sufficient time should be alloted to permit an adequate research effect.
17. Discussion: It was agreed that, although the location of
strategic FiEBFIZrand the importance of areas suppl,ying them have boon
carefully studied by the intelligence community, there have been no
systematic studies of the likelihood of losing access to the materials in
these areas and of the significance of such losses.
PROPOSED NEW SUBCOMMITTEES
13. Action: At the request of the State Department representative,
the suggestra?Tor establishing a Chemicals Subcommittee VW tabled foe
future consideration. In the meantime, agencies are requested to send
At4pprtobad3P8Fiktsiaaltinitit9iffiRD#08t0P0283ROMIVIROO88303.
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SECURITY INFORMATION
Eace.g.6
4 October 1951
Page 4
19. Members of the EIC are to take under advisement the question
of the desirability of establishing subcommittees to cover geographic
areas.
20. Diecussion: State Department pointed out the difficulties in
providing r;1517;56Witives to functional committees because of States
intelligence offices organized primarily on a regional basis.
State let decisions on membership in subcommittees hinged on the likelihood
of the future establishment of area subcomalittees.
INTELLIGENCE ON EAST?WEST TRADE
21. Discussion: The EIC was informed that an NIE on the relative
strategic We:rare; of existing levels of It-West trade to the Soviet
Bloc and to the Vest will be initiated soon. The need for careful thinking
on eoncepteral and analytical issues was pointed aut. ORR (CIA) has
initiated a project on these conceptual and analytical issues and welcomes
any comments from otiler agencies.
25X1 A9a
Secretat,
Economic Intelligence Committee
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INTERNATIONAL FINANCE
Go.lere /1J71,
Depbrtment
or
Agency
General Description of Research Program
Major Gaps in Knowledge
CIA-ORE
1.
Balance of Payments
Very few studies except those
2.
Gold and Capita/ Nbvements
relating to parts of pcints 49
6,
3.
Foreign exchange-availability, rates
and controls
and 7.
4,
International Agreements
5,
Foreign Assets
6,
Relationship to Western Programs,
including Economic Warfare
7.
Governmental organization, programs
end controls
Agency Projects
Agency Personnel Looation in
the Agency
None
Trade & Finance Erma* of the
Economic Services Division
14 professionals in the Branch
1/2 of one mans time on this
subject
Army-lavymAir Negligible
State.OIR.WRS To be submitted later,
Generally similar to CIA interest,
Details to be submitted later. 10
Generally very weak on this sub-
jeot. 2,
5.
Yugo4ource on Postwar
External Debts.
eons gra papers.
No other papers on this dub-
jeot except as related to
some foreign trade studies.
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CeVered by foreign trade and area
people. Altogether work on this
Subject represents less than 312
time for I person.
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Department
or
Agen0y
General Description of Research Program
Major Caps. in Knowledge
Federal Reserve
General field of internwtional finanae
relating to the orbit including (1) bal.
*nee of payments questions; (2) gold and
capital movements; (3) international
monetary cooperation; (4) foreign ex.
change rates and exchange control.
Agency Projects
Agency Personnel Location in
the Agency .
Details to tiOr submitted later.
Generally vary weak in this `x-.L
field.
Financial Stability and Central and Sastern AUrape Section
Economic Development in of'Division of' International bananas
Communist Countries.
Publications in the Review 1 professianal less than 0 time
of Foreign Developments (no on this subject
higher than restricted)
Treasury
International Finance relating to the
Soviet Orbit as it applies to Treasury
responsibilities .
(1) Balanoe of payments
(2) Gold and dollar reserves
(3) General trend of prices and other
components of international sta-
bility.
Details to be submitted later.
Generally very weak in this
field.
Statement of iirojects not yet Office of International Finance
available.
ea professionals
71 moms time on this
1
Commeroe.UIT Commeroial developments in all foreign
countries research an: (1) exchange
controls; (2) balance of payments;
(3) commeroial laws; (4) foreign ex.
change restrictions and taxes .
General emphasis on assistance to
(I) U.S. business; (2) U.S. trade
policy.
Approved F
Detlils to be submitted later, Statement of projects not yet
Generally very weak in this available.
field.
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Office of International Trade
lastern guro staidmision_
,4 professionals in the Division
qass than full time for one man
on this.
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Department
or
Agency
General Description of Research Program
MaSor Gaps in knowledge
?._
Agency Projects
?
Agency Ibrsonnel Location in
the Agency
International
1. Cover the legal aspeots of Inter-
national Finance relating to the USSR
2. Identify "potential eneme mangy
and property interests in the U.S.
This informabicatelll be ob.
tamed at a Dater date
Files
1. Claims Division
Amber of personnel to be
filled in later, -
2. Alien Property Custodian
Number of personnel to be
filled in later.
Finanoe
Dept. of Justice
Tariff Commis.
sion
Negligible
,
EGA
Negligible . except as related to trade
studies
?
,
, ----------
Export.Import
Bank
Negligible-----....
Approved For
Study on Yugo for loan
?
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