FIFTH ANNUAL PROGRESS REPORT OF THE ECONOMIC DEFENSE INTELLIGENCE COMMITTEE 1 JULY 1956-30 JUNE 1957

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00400R000200090004-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 19, 2016
• Document Release Date: July 28, 2006
• Sequence Number: 4
• Publication Date: October 25, 1957
• Content Type: REPORT

Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
SECRET
K 2
IAC-D-53/9
25 October 1957
I N T E L L I G E N C E A D V I S O R Y C O M M I T T E E
Fifth Annual Progress Report of the
Economic Defense Intelligence Committee
1 July 1956 - 30 June 1957
The Fifth Annual Progress Report of the Economic Defense
Intelligence Committee (EDIC), circulated herewith for noting,
will be placed on the agenda of an early meeting of the IAC,
F
Secretary
S'
L'
Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
 Approved For Release 2006/07/28: CIA-RDP82-0040OR000200090004-2
S-E-C-R-E-T
NOFORN
FIFTH ANNUAL PROGRESS REPORT OF THE
ECONOMIC DEFENSE. INTELLIGENCE COMMITTEE
1 July 1956 - 30 June 1957
S-E-'C-RAE-T
Approved For Release 2006/07/28: CIA-RDP82-0040OR000200090004-2
 Approved For Release 2006/07/28: CIA-RDP82-0040OR000200090004-2
TABLE OF CONTENTS
Page
I. Introduction . . . . . . . 1
II. Summary of Activities. 1
III. FDIC Program . . . . . . . . s e , , 2
A. Planning for Economic Warfare.
B. Edited Transcript of Propellants Seminar, 13-14 June
1926. ... . . . . . . . . . . . . * . . . . . . . . 2
C. Other Activities. . . . . . . , . , 2
IV. Future Activities. . . . . . . . . . , 2
A.. Completed ERIC Reports. . . . . . . . . . . . e . . 4
B. Other Documents Distributed to EDIC Members . . . , 2
C, EDIC Cases Pending. . . . . . . . . . . . . . . . . 6
D. Completed EDIC Cases, e . . . . . . . . . . . . 7
S-E-C-R-E-T
Approved For Release 2006/07/28: CIA-RDP82-0040OR000200090004-2
 Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
S-E-C-R-E-T
ERIC/R-1.
Control No. 48151
ECONOMIC DEFENSE INTELLICCNCE COMMITTEE
FIFTH ANNUAL PROGRESS REPORT
1 July 1956 - 30 June 1957
I. INTRODUCTION
The Economic Defense Intelligence Committee (EDIC) completed five years
of operation on 3OJune 1957. EDIC continues to be responsible under its
Terms of Reference for (a) developing and furnishing intelligence to the
Economic Defense Advisory Committee (EDAC), and for (b) developing closer
continuous relationships among the policy, operational, and intelligence-
research elements engaged in the economic defense program.
II. SUMMARY OF ACTIVITIES
EDIC's formal activities during the past year were somewhat reduced as
compared with earlier years, primarily because EDAC and its immediate sub-
committees were occupied, on an urgent basis, with a CFEP review ofU.S.
policy concerning multilateral trade controls against Communist China. For
reasons of operational necessity,.and in accordance with primary production
responsibilities for various fields.of economic intelligence allocated by
DCID 15/1, the responsible individual intelligence agencies have made their
respective contributions directly to the EDAC community. In this manner,
substantial intelligence support was given by IAC agencies represented on
FDIC, even though EDIC itself undertook relatively few assignments. Addi-
tionally, the Chairman of EDIC, as the CIA representative to the EDAC Exec-
utive Committee, participated as a member of the US Team in the recent
CHINCOM discussions in Paris on international trade controls against Com-
munist China.
A number of coordinated reports were prepared by EDIC, the most impor-
tant being the proceedings of the Propellants Seminar, 13-114 June 1956, and
a paper, requested by EDAC, on Soviet Bloc construction and procurement of
merchant and fishing vessels. Several other reports were reviewed and a
number were still under preparation, or nearing completion, at the end of
the fiscal year (TABS A, B, 0, and D).
1/ IAC-D053/1, 25 July 19529 revised by IAC-D-53/3.l of 25 February 1953.
S-E-s R-E-T
Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
 Approved For Release 2006/07/28: CIA-RDP82-0040OR000200090004-2
SmE?C-R-E-T
III. EDIC PROGRAM
A. Planning for Economic Warfare
EDIC discussed the instruction sent to all subcommittees of the
IAC (IAC Dm96/2) requesting that it examine its wartime mission and prepare,
as appropriate,_a wartime plan of operation. After considerable delibera-
tion EDIC agreed (a) that there would be a wartime need for intelligence co-
ordination in the field of economic warfare and (b) that certain aspects of
economic warfare intelligence require advance planning and preparation.
EDIC advised ODM through the ODM member of EDIC, that it would be difficult,
if not impossible, for it to formulate plans without first knowing, in some
detail, of the plans of the policy and planning agencies. It is now expected.
that such guidance will be received from CDM as the plans of the Committee
on Mobilization Planning for Economic Warfare develop for a possible wartime
Emergency Economic Agency. (See Part IV of this document).
B. Edited Transcript of Propellants Seminar, 13-14 June 1956
The most comprehensive report published by EDIC during the year
was the Edited Transcript of the Propellants Seminars 13 1 June 1956, which
had been conducted under the auspices of the EDIC Working Group on Propell-
ants and Fuel Additives. Partly as a result of the information developed
by this seminar, the EDAC community was successful in placing boron on the
international embargo list in October 1956.
C. Other Activities
Other intelligence reports disseminated included "Soviet Gold
Sales, 1955`t, "Free World Deliveries of Ships to the Sino-Soviet Bloc in
1955 and Proposed, Construction as of 1 January 1956", "Current Trends in
Sino-Soviet Bloc Construction and Procurement of Merchant and Fishing Ves-
sels", and the "Supply and Use of Ion Exchange Resin". Under arrangements
previously established by ERIC, CIA continued to provide to the US enforce-
ment program current intelligence on efforts to evade trade controls.
IV. FUTURE ACTIVITIES
During the year under review there has been an increasing tendency for
the economic defense community, because of operational necessity, to deal
directly with individual intelligence components. However, in the light of
the current U.S. Government review of the multilateral trade control policies
and programs and the anticipated negotiations in COCOM and possibly in the
Consultative Group late this fall, it is anticipated that ERIC will make
significant contributions to the economic defense program through participa-
tion both in arranging for intelligence research in support of this program
SmE-C-R?E-T
Approved For Release 2006/07/28: CIA-RDP82-0040OR000200090004-2
 Approved For Release 2006/07/28: CIA-RDP82-0040OR000200090004-2
S-E?C-R?E-T
NOFORN
and in the production of coordinated intelligence reports. In this connec-
tion EDIC also plans to continue its focus on the identification of commod-
ities which are of increasing importance to the Bloc as a result of new
scientific and technological developments.
Moreover,, upon receipt of guidance from QDM,, EDIC will be able to carry
out the planning necessary to insure intelligence support in the field of
economic warfare under wartime emergency operations.
S?EmC-R?E?T
Approved For Release 2006/07/28: CIA-RDP82-0040OR000200090004-2
 Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
S-EmC?R-E-T
TAB A
Completed EDIC Reports
1 July 1956 - 30 June 1957
Designation */
FDIC/R-3
(IAC D-53/8)
EDIC/ID-25
EDIC/ID-26
EDIC/ID-28
EDIC/ID-29
EDIG/ID-30
EDIC/ID-31
Fourth Annual Progress Report of the
Economic Defense Intelligence Committee
Soviet Gold Sales., 1955
Czech Inability to Provide Catalytic
Cracking Equipment for Syrian Refin-
Free World Deliveries of Ships to
the Sino-Soviet Bloc in 1955 and
Proposed Construction as of 1 Jan.
1956
Propellants Seminar, 13-14 June
1956 ".Liquid Propellants (with
Appendixes Containing the,Prev-
iously Unpublished Proceedings
on Solid Propellants)"
Current Trends in Sino-Soviet Bloc
Construction and Procurement of
Merchant and Fishing Vessels
Supply and Use of Ion Exchange
Resins in the Sino-Soviet Bloc
*/ R - Report (annual)
Date Issued
24 Oct. 1956
30 Jul. 1956
8 Nov. 1956
18 Jan. 1957
30 Apr. 1957
1 Apr. 1957
12 June 1957
Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
 Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
S-E-'C-R EET
NOFORN
Designation */
TAB B
Other Documents Distributed to EDIC Members
25X6
Date Issued
EDIC/1R-25
FDIC/IR:-26
EDIC/AM. 2!.
EDIC/AM-25
EDIC/AM-26
Soviet Bloc Sales of Gold in Free World
Markets, 1956 (Special Report).
Appointment of Executive Secretary
Transmittal of EDIC Membership List
FDIC Working Group on Propellants and
Fuel Additives
IR Intelligence Request
AM - Administrative Memorandum
- 5 -
SE-C-RE-T
9 Nov? 1956
18 Jan. 1957
18 Jan. 1957
1 Feb, 1957
9 May 1957
Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
 Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
S-E-C-R-E-T
NOFORN
TAB C
EDIC Cases Pending, 30 June 1957
Designation
EDIC Case 6
EDIC Case 7
EDIC Case 10
EDIC Case 13
EDIC Case 15
EDIC Case 16
EDIC Case 23
Title
Firms Reportedly Purchasing and Operating Ships for
Communist China.
Export of Ortho-Toluidine to Communist =China.
Pattern of Soviet Bloc Strategic Exports to the West.
Possible Soviet Bloc Use of Magnesium as Fuel.
Soviet Bloc Position and Use of Perchloric Acid and
Perchlorates of Sodium, Potassium and Ammonia.
Soviet Attempts to Procure Colloxylin.
Strategic Importance of Aluminum and its Source Mater-
ials (including bauxite) to the Sino-Soviet Bloc.
Borax Discovery in Tibet.
Review of Current Status of Bloc Technology in Radio
and Television Transmitters and its Possible Military
Applications.
Review of Sino-Soviet Bloc Supply, Technology and
Possible Military Applications of Polyethylene.
S-E-C-R-E-T
Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
 Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2
S-E-C-R E-T
NOFORN
TAB D
Completed E1 IC Cases
1 July 1956 - 30 June 1957
Designation Title
EDIC Case 11 Soviet Bloc Sales of Gold in Free World Markets
In August 1955 NIDAC requested that quarterly re-
ports beginning with the first quarter of 1955
be issued by ERIC and that an estimate of Soviet
Bloc gold exports for the years 1953 and 1954 be
included with the first report. After discussion
at several ERIC meetings., this case was closed 21
October 1956 with the request that any important
developments be published in special reports.
Reported in Tab A as EDIC/ID?25.
EDIC Case 19 Free World Deliveries of New and Used Ships to the
Sino-Soviet Bloc in 1955 and Proposed Construction
as of 1 January 1956
Reported in Tab A as EDIC/ID-28,
-7-
SE-C-R E-T
Approved For Release 2006/07/28: CIA-RDP82-00400R000200090004-2