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

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November 9, 2016
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July 21, 1998
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September 27, 1951
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Approved For Release 1999/09/10 : CIA-RDP82-00283R000100180008-0 TAB Approved For Release 1999/09/10 : CIA-RDP82-00283R000100180008-0 Approved For Release 1999/09/10 : CIA-RDP82-00283R000100180008-0 Approved For Release 1999/09/10 : CIA-RDP82-00283R000100180008-0 25X1 A9a Approved For ReleasV99/09/10 : CIA-RDP82-00283R000100180008-0 1411110 SECURITY INFORMATION ECONOMIC INTELLIGENCE COMIIIME as ? Minute of Meetin held in Directoree donferenn ocup dRIBIAFatiom 2/067 Nirget711711; 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." Approved For Release 1999/09/10 : CIA-RDP82-00283R000100180008-0 Approved For Releasyl 99/09/10 : CIA-RDP82-00283R0001V0008-0 ?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. - Approved For Release 1999/09/10 : CIA-RDP82-00283R000100180008-0 Approved ForReleas9499/09/10 : Clri!ITP,?M!ilAIM/IM000100180008-0 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. Approved For ReleasV99/09/10 : CIA-RDP82-00283R0001V30008-0 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 Approved For Release 1999/09/10 : CIA-RDP82-00283R000100180008-0 Approved For Release 1999/09/10 : CIA-RDP82-00283R000100180008-0 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. Approved Fr Release 1999/09/10 : CIA-RDP82-002813R000100180008-0 CeVered by foreign trade and area people. Altogether work on this Subject represents less than 312 time for I person. Approved For Release 1999/09/16 : CIA-RDP82-00283R000100180008-0 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. r Release 1999/09/10 : CIA-RDP82-00283R000100180008-0 Office of International Trade lastern guro staidmision_ ,4 professionals in the Division qass than full time for one man on this. Approved For Release 1999/09/10 : CIA-RDP82-00283R000100180008-0 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 ? Release 1999/09/10 : CIA-RDP82-00281000100180008-0 I