ANNUAL REVIEW OF THE INTERNATIONAL TRADE AND FINANCE SUBCOMMITTEE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00283R000200200019-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 9, 2016
• Document Release Date: September 24, 1998
• Sequence Number: 19
• Content Type: REPORT

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RIZ L...legriVADE AM) MANCE SUBOONAWNE
During the pest year the subcommittee's activities have been largely
eon,:iird. to two major projects. These are EIC-P-1? Institutions nni
Policies in International Trade and IPinance within t
NIC-P-5? or
MI-tt of t12. 'Work in the general field of international trade arr
'Axes been done by individual agencies to meet their own reclaim:-
Inter-agency work, of which 313-10-3-54? Soviet Bloc Ecomsle
Tkorare Capabilities and Courses of Action, Th-iJ I, Consequeztes
kleiJamition of Won-Commeeist Controls on Trade with the European
a,nt.etatoe,, China's c?'r'----T.,rade 1 53 aul
the lirst important, have also absorbed a large part, of the resourcen
of the Bubeometteet though they did not so through the BIC ahinery.
he rbles Which have been brought into the subcommittee, for 'example:
both EIC: P-1 and BIC P-5, represent nan-urgent but basic studies be4-Tond
the reeeengees of any one agency.
the weak of the subcommittee the Federal Ream's: ban been the
MICAN kleafele Siang with State arsi CIA. The service agencies, have been
quitm inagnime? most of their interest in the general field being cen-
fined to the operating intelligence problems of East-West trade, uhich
L o the subject of the Intelligence Working Group.
natyre ?prim
The Alture prcgeam of the subcommittee consists of three ele-
1,1) A semi-arnual revision of BIC P-5 ? Balance of Prommte et the
Soviet Bloc. It is hoped that this will become a standard re-
ference for data in this field.
(3)
A detailed study of the degree to which the Soviet Bloc
actually achieved economic integration. This study in a
continuance of the work started in EIC-P-1. The subccerittee
will shortly submit to the EM an outline covering this pro-
posed stedy.
A continuous review of the work going on in the field with an
attempt to influer.ce the programing of research in inutivi-Latal
agencies.
in connection with the last item on the program, the subcomerit le is
:Into .;ed in four lines of research.
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(1) The Intra-Bloc Balance of Papertts
CIA is working on a number of projects designed to culmi-
nate in an Intra-Bloc balance of ptynents.
(2) The Soviet Bloc Golds Foreign Rechange and 'Assets Position
An BIC ad hoc working group met to consider the various
Soviet gold production estimates end concluded that none of
the present estimates are satisfactory. Both State and CIA
have been working on the Soviet gold problem. CIA has a
major project underway on gold production, reserves and sales.
(3) Character of Coinist Chloses Irta,l9535f
Both CIA and State have scheduled research projects on
a various aspects of this problem.
(4), gast-Wes_A__Trade and Trads
State is continuing its surrey of these bilateral wee-
meats.
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25X1A9a
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096fi0020911?9-4
TF80-1.1-8
CIA no, 444067
7 Jular 1953
OTI fl IJATIOIIALmtire ADD FIIIAIICE
- of the
ECONQUIC IIITELLIGUEE CO
A Al hi EN
Climates of Meting 'Told in Roca 622, State
Annex 1, 1 July 1955 Atom 1430K630 hours)
State Chairman
CIA, Sooretary
edoral Reserve
Defense
IA
Ezna. Secretariat
REVIEW Ce TIE PROGRAM OF TIE SUMO
Reifman submitted a draft report of Tho scrigram of the subccanittee
for oonsideration as a progress report for El?. A final draft refloating
the via= of the subcommittee use apprcrved for sulmission to EIC, A copy
attaabado
IMP= OIl Pflev 0,-8 CIF VillTULEIG CROUP 011 THE3041E......._ sT BLOC IlkIAME OF PATLEIIIS
Mr, Arms reported that the morking gx.oup is making adequate progress
on the projoat. Due to administrative =I security difficulties, only ?
Federal Reserve and CIA. have repztisentation on the Trorldng group at present.
Despite this, the mrldrag vow hae hold a series of meetings and the laem??? ?
bora aro cument3,y engaged in research on the various phases of the project,
/To completion date has been set but a report on further progress Trill be
given at the =et meeting,
25X1A9a
Geozstam Subcamittee on
Intonations' Wade and Finance
Attack:nabs 3,
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CIA lb, L4ii4067a
7 July 1953
TO &rixectutive Secretary, LUC
FROLI Chairman, Subcorr.lttae on International
Trade and Finance
SUDJECT $ Rervievz of Program of Subcormittee
Itil'ERLUCEs EI0.-D-39s 32 June 3953
A,, PROCIRALI OF TIM SUECOITITraa SIIICE ITS IDCEPTIOU
Ravi= of the Into once Produat and the Research Faeilitios
e once in i id o
orpetonoe
In order to rOViel7 the adequacies of intelligence wit the
researah facilities available for producing intelligences one must be
able to define intelligence "needs" and to assign a priority rating to
these needs. The difficultgr of doing this was discussed at some length
in the suboormittoo Is nRoport to the Economlo Intelligensse Comaittee oi
the Status of Intelligonee on Internattonal Trade and Tirana? of the
Soviet Moan n The major fizzling tes that the definition of "need? or
of a adeficionoy" is prirarily a furotion of the requirements of the
user Dialle the existozne of clivaree operations and research functions
rlithin the govern:ma doea not permit a uniform ovzaluation of such
requLrements. ?
As =stilt of the above considerations the subeamitteo decided
not to attempt to moot a tread program of research but to proceed in
a very praotioal fashion. .Firsts a large part of the field as bra=
down into six componontas each of rtioh ?oas assigned to one agency
thich uould 133 responsible for work in this field. The aaaigrente
nhich formalize an alraady existing division of labor are as follows:
Officially Published Trade Statistics ? Camerae
aged? and Payrnnts Arrangorente State
Clancleattne Trade Including a Rogistar
of Institutions Involved in Such Tracb 0. CIA
NEMIN4MINEN.
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?14.'
2
aLbliography
Intra-Moo Trade - State, CIA
Soviet Elea Ownod Assets avasury
? S000ndly, the suboscraittee invited its !Danboro to suirrit out*.
lines for projects which, if complatods would moot "critical deficioncios"
of that agency. As noted bolero on3,y ono najor roquost for work did ?
not result in a corplated project or a method for meting that requost.
This fact can bo mod a0 an indication that the profeesional resources
available in govornront to meet the .pritnry roquiromonte of US intoni.-
condo in this..field'are fairly adoquate. This &ea not moan that all
the noodle of all the agencies have boon rot,- It roans that only one
basic flood which an agonay brought to the attention of the subcommittee
hen not barna:it. (Tho ctboommittoo ho,)os to moot this one in the
Gamboa year.)
Fimally, the subcommittee used a large part of its meeting time
to discuss the resoarchterk and needs of individual agoncios.
2. Prom:Tina of Rosoarah Priorities
The projoat outlinos whioh have boon suleAtted axe disposition
of those requests for emir are as follocia:
? a. "Finanoial Policies and Institutions in Intro-Soviet
Moo Trade and Finance"
A first draft of this report is now available. It vac pre-
pared by by an Jr:bar-agency group of the subcomoittoo.
b. "The Goviot Moo alias= of .cymores Trith the Foe World;
Its 0034 and Foreign Exchange Position; Its 2olicies lizards the Use
of Its Intornational Lionotary Pecerves."
This oxtromely broad survey of a large part of the fold
Tsithin the purview of the subccunittoo vw adopted as an into"agonoy
projeot. Work on it has boon procooding very slowly.
e. Studios, on "Efilotwal Trade and 2ftado 11.43orento of l'iostorn
Europo and the Soviet Moo Counbriec."
Thio subject to discussed in the subcorrsittoo Trith two of
the "user" agenclos roquosting that this ambitious project he adoptod.
Dub only ono roseareh agengy sac Trilling and ablo to dovote corn re-
sourcos to it at the tine it was first proposed. That agonoya the
Dopartmont of State, has undertaken to rroduost four or five of the
individual bilateral studdec. Thaw bo critically reviewed by
the subcommittee. It should be noted that these studios are primarily
of interest to EMIG.
agleglISEVIPPONNN.
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d. "Beene:Ole Implications of Current Waste= Contras on
Trade eith the soviet nloo.0
This projeet, uhiteh is the complement to DE-590 is the
oray major request which has not been met by the? subcommittee An
outline was submittAd by the Department of State rhich was dimuseed
in 'considerable detail. in the subectrattee. The lack of imrsoilatoly
available manpmer ard the elusive charaeter of much of the subject TIO.0
such that it vie not aocopted as an inter-agency project. As a result,
the Departront of State has net its requirements in this field itself.
The subject is one rhich the subcommittee intends to approach this yoar.
Co iao?n-a. on China Trade.
This project, produced elsewhere, has net one of the dr,
ficionoice rrithin the general area of responsibility of the subcommittee.
f, Diblioaphic Work.
There have been several requ3sts for bibliographic moat.
One of these um completed by the subcommittee: "Survey of Intelligence
on Far Eastern Trade?, 26 August 1.952. The other ma mat by the DE
proposal to collate all studies on the Soviet Moo in a regularly issued
report.
Us, projects have been recomended by the subcommittee for external
research.
3.c lb d rtkengt the Roc uiparb of the BIC
Ibne.
14, Dispusajon of Into11jgo Research lbchnieues
The subcommittee decided early that OM of its major functions Imas
to be a cloaring house for research ejects being undortaloon in the .varie,
ouo.sconeies, and rosoarch techniques employed in these projects. AO a
result, a high proportion of the mooting hours of the suWaemittee have
boon devoted to suoh discuseions. Tina.? foams a list of the titine of
the discussions vhich have already been hold:
a. Deport by Federal Deserve and Treasury on inforrstion and
analysis available In their agencies. on Soviet Bloc assets in the US
anti Soviet Moe free dollar =liabilities.
b. Deport by CIA on the BOOD3:10 Estimates File.
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o. Report on tho Dopirtment of Commerce, Office of Intona-
tional Trade's rosoarah and intelligonoo nuric on the Soviet Moo.
Roporte by CIA cativo ?spoliation of Bast-Ubst trade
statistics and the Intornational Trade Reaistar,
e. noporb ty CIA. on the technique dovolopod in DIB-59.to
consirtvt and =Ova "ruble-dollar =bloc."
5.gedetzao A war of Ara
Ade ua of t iacilition for IVOCIOSS31
An inter-agoncy cemmittoe on Bast-Vest trade statistic* is to
consider the adequacy of data In this fiold and to Improve on present
collection and. prooessing. The ibrthoix.aing study on "The Soviet Moo
Warne of Peymonrbeo etc." 'mill he a fairly =plot? and syotozeatio
=vim of the adequacy of intelligonoo in the field of Soviet Bloc
external trade and finance.
6. ecin1 Co t!pnraticreis of tho Subo ttee
See !mbar 4. above.
7.s:L:volo eta.* ,t1........sSubsommit
While quostiona of detail roman, and aluays triU roatin' st the
aphcomaitteo fee3e that studies uhich it noi has in proem* along rith
those mill,* have boon ixrepared alscarheros cover moat of the broad prob..
lam in tho field of Soviet Moe international trade and firaree.
These etudioa are:
2, The BIC contribution to D10-59 an the oconomio Impact of
a comTlote soverance of Raot-Uost trade.
2. MO-Rae and oupplomento on China trade.
3. LIC-R-11 on intro-bloc trading inatitubions.
h. The suboommitteo projoat on Soviet Dloo Dila= or
PaPenta, oto."
Ono gap uhich romaino ic to examine the ecionomic implicatione
on both the Weft and the Dloo of currantlIcatom controls over trade.
The subcommitteo ie planning to root thin mod.
301900 Qui
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5 art
The subcommdttoe would 3.iko the EIO to lava that the type of
research roports requested of the oubozzdttoe fall gonera3ly into
throe catogorloss
a. Projocto of higT2 national importaneo requiring large
numborof nurtoure. The F./a co.ntributzlon to 1.73E-59 is ono matiple
Phish cones to mind*
b.
Projoets one or io pxdnary- purposes is to provide a
readily accoosiblo and gonora13y agrood source of data and ara3yels,
The mirror* projeat on "The Soviet rasa Thasuxre of Pant, ote." Is
of this sort. (This is not to say that this p.rojoet rr1fl not he usoft.l.
fee* othar purposes.)
o. Projects of Demirel irxpartaroe to the goitrnoent but not
having a sufficiontly high vrgornyis any one agonoy for it to adopt and
complete tho Trojoct itsol2TZG-1Z-11oiintrc-blog trading Institutions.
le an example. projoot uhich has a high urgency In any ova agouti. Pill
gonerally be completod 1:7- that agency itsolf unless the pork involved is
ovorwhelming and 14mi-swing devices impossible or unless the project
requirte intermageney agreoment to be woful.
TIO 0ou34 like, if this is mammary, to dissuade the LIG from
bellaving that the ouboomrd.tteo can "program" tho research of Washington ?
agernies. Marta aro probab3y more programming authorities than there
are vorldng analysts.) Our view is tint the method of procedure itloreby
Pritton project roquoots from riomber agenoiea aro 413M70140c1 is a more
practical ret:lod than attempting to establish an olaborate system of
redarities covorima the ontire field.
he The suboormittoo also feel? that its mooting? during Phich there
boon a gonoral emehange of infoneation on research in piteous,. re-
search tochniquos? ani rosoarch roods of the Lxseizr agonciass has-provided
a form of some USertar0813,
13, FUTURE 2D.00CEIli' OF TIE SULCOIZI"ZeDD
The subcommittee intends to coati= in the .future as it hap in tho
past. Dut wen this program is unoartasin at the lament tine. The
written pork of the, subcommittoo hes bo en accoraishod largely by tho
Fedoral Doserve with the aosistance of th,J Conti Intolligonce Agonay
lii and the Dopertmont of State. Ze role of the Fodoral D000rvo Deard
by the fact that its reactor& staff in this aold consists o is
f
one ana3tyst. The recoarch area of the Dopartamt of State is oleo
Ilmt.tod in its activitios 17 the size of the staff and by the pivoosuro
of 1701* for its own agency, *,;ith a drostie out in the Lbpartnont of
State buigot in the offing, the ability of flat organization to con-
tribute in quantity to tho pork of the subcommittoo as roll as tin
individual manb3re 'oho are able to carve on the eubcormittoe is in
considorable doubt.
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? SINE.Tigrommi
ECONOMIC INTELLIGENCE COMMITTEE
EIC-D-323/b
TERMS OF REFERENCE FOR THE SUBCOMMITTEE ON GENERAL ECONOMIC ANALYSIS
(Approved by the EIC, 29 October 1958)
A. Mission of EIC Subcommittee on General Economic Analysis
The mission of the EIC Subcommittee on General Economic Analysis*
is to provide an organizational framework for carrying out within its
field the basic review and coordination responsibilities of the EIC
and for ensuring that, on intelligence matters in its field affecting
the national security, the intelligence community is supported by the
full economic knowledge and technical talent available in or to the
Government.
B. Membership and Organization
1. Membership of the Subcommittee on General Economic Analysis
consists of representatives of the USIB agencies as designated by
these departments and agencies and approved by the EIC.
2. Representatives of other government departments and agencies
may participate as Associate Members of the Subcommittee upon approval
of the EIC.
3. Active participation by agency representatives generally is
governed by (a) the extent to which each agency concerned has pro-
duction responsibilities in the field of general economic analysis,
(b) the extent to which an agency has an interest in economic intel-
ligence of broader scope which involves reference matters within the
scope of the Subcommittee, and (c) the availability of qualified
personnel.
* The Subcommittee on General Economic Analysis, in contrast to EIC.Sub-
committees on special sectors of the economies of foreign countries, shall
be concerned with the economy as a whole in such countries and it shall
be concerned primarily with internal economic developments.
Itiltmeneminala
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igligmemlbaailimmom
EIC-D-323/b
4. The Chairman of the Subcommittee is designated by the EIC,
and the Central Intelligence Agency provides the permanent Secre-
tariat. The Subcommittee may set up ad hoc working groups as
necessary to assist in carrying out any of its assigned functions.
The production of interdepartmental economic intelligence normally
is assigned to ad hoc working groups rather than to the Subcommittee
proper.
C. Functions
1. As the standing.interagencY economic intelligence group of
professional and technical personnel in the field of general economic
analysis, the Subcommittee shall perform the following minimum
functions:
(a) Facilitate review of proposals for external research
contracts in its field in accordance with the provisions of DCID 3/1
using the procedures adopted by the EIC. 5ee EIC-D-112/1,
5 June 1958, Procedures for EIC Review of Proposed US Governmental
External Economic Research Contracts Involving More Than $5,0002
(b) Produce, on its own initiative (with EIC approval), or
when directed by the EIC, interdepartmental economic intelligence on
subjects in its field which transcend the competence of a single
department or agency.
(c) Arrange on its own initiative, or when directed by
the EIC, for the coordination of individual agency reports deemed
of sufficient national security importance to warrant the solicita-
tion of concurrences from the representatives on the Subcommittee.
Arrange for coordination with other Subcommittees as appropriate.
(d) Mobilize, in support of the intelligence community,
the full economic knowledge and technical talent in its field
available in or to the Government. Such support will normally take
the form of ad hoc responses to the requests of other USIB Committees
the USIB Ad Hoc Committee on Exchangef.
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? SINERIMMLIW111.
EIC -1) -323/b
2. In addition to the minimum functions outlined above, the
Subcommittee on General Economic Analysis, when appropriate, shall
perform the following function with respect to its assigned field:
Assist or advise agencies in the programming of research
in order to minimize duplication and assure as effective a distri-
bution of research effort as is practical in view of each agency's
responsibilities.
D. Operating Procedures
The Subcommittee shall establish its own operating procedures
subject to the following conditions:
1. It shall meet in formal session at least once each fiscal
year. Its Annual Report will be responsive to the request of the
EIC Secretariat add will cover the activities of the Subcommittee
in fulfilling its mission as outlined in C, above. The Subcommittee
will schedule meetings as required to fulfill its missions.
2. The Subcommittee Secretariat shall provide all members of
the EIC, the Subcommittee, and the EIC Secretariat with copies of
the Agenda and Minutes of its meetings.
3. ,Reports and recommendations which have been approved by
the Subcommittee may be transmitted to the EIC without comment.
In case of dissent, the transmittal must be accompanied by an
appropriate statement, prepared by the dissenter(s), advising the
ETC of the nature and substance of the dissent.
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