9 SEPTEMBER SIG/IEP MEETING ON PIPELINE AND EAST-WEST ECONOMIC RELATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00049R001700220003-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: May 5, 2009
• Sequence Number: 3
• Publication Date: September 9, 1982
• Content Type: REPORT

Approved For Release 2009/05/05: CIA-RDP84B00049RO01700220003-2
SECRET
Notional Intelligence Council
.DDI #7312-82
9 September 1982
NSC Review Completed as Redacted.
MEMORANDUM FOR THE RECORD
SUBJECT: 9 September SIG/IEP Meeting on Pipeline and
East-West Economic Relations
1. The meeting was chaired by Secretary Regan.- Other principals
included the DCI, Secretaries Baldrige and Weinberger, Ambassador Brock,
and State Department Counselor Buckley.
2. The main purpose of the meeting was to obtain a full report on the
discussions various OS officials were having with the West Europeans on
ways of breaking the impasse over oil and gas sanctions and on US
preparations for future discussions.
3. Jim Buckley reported on US preparations for discussions with the
Europeans. The British took the initiative in setting up a meeting of the
four principal European countries in London, with the intention of
following this up with a meeting which would include the US. The French,
however, arrived with no instructions and, after returning to Paris,
yesterday took the position that no meeting would be productive until the
UN General Assembly session scheduled at the end of September. No other
specific plans for meetings are in the offing.
4. The US has four main proposals for the Europeans:
(1) Getting the Europeans to impose controls on exports of a group of
oil and qas equipment and technologies that would have an impact
on the Soviet economy equivalent to the impact of the expanded US
controls announced in June. The proposed list of equipment is
based heavily on CIA analysis of potential Soviet equipment
bottlenecks. (Presumably, the Europeans would tie these controls
to the continuing political repression in Poland and the US would
present the package as having at least as great an effect on the
Soviet economy as do present US proposals.)
(2) Credit restraint--that is, possible reductions in government-
guaranteed credits and interest subsidies.
All portions Secret SECRET
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SJ CRET
(3) Expansion of COCOM restrictions to include nine new areas of
military-related technologies, tighter enforcement procedures,
- and commitment to a new high-level COCOM meeting in 1983.
(4) Development of joint policies for alternative energy sources in
order to minimize the European need for Soviet gas.
The UK will also bring up agricultural sales to the USSR as an issue.
5. Papers on the US proposals will be circulated among interested
agencies within the next day or so. US priorities among these proposals
and the possibilities for success will be considered at the next SIG/IEP
meeting next week.
6. Secretary Baldrige emphasized that the "temporary denial" measures
taken against foreign firms are intended to prevent violations, not punish
the firms, while the Commerce investiqations proceed. These usually take
about a month; they may result in expansion or reduction of the initial
restrictions, depending on such factors as the impact on the firms,
relationships with subsidiaries, etc.
7. Secretary Weinberger reported on his discussions with Thatcher,
who says she agrees with US objectives but needs to consider the impact of
sanctions on UK employment. She urgently wants an agreement. He also
suggested that the US could direct defense orders to foreign countries who
agree not to supply the USSR.
8. Ambassador Brock reported on his discussions with the Europeans.
They badly want both a settlement of the specific issues on the pipeline
and a meeting of minds on strateqic policy vis-a-vis the USSR.
9. There was considerable discussion of the expressed rationale for
US pipeline sanctions and other aspects of US policy on economic relations
with the USSR. The DCI argued strongly that too much was being tied to
Poland and that the basic objective of not aiding Soviet military expansion
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JCI.ttC 1
DDI #7312-82
9 September 1982
Distribution:
Orig - DCI
1 - DDCI
DCI/NI0/Ecorj
- ExDir
- DCI/SA/IA
- ER
- DDI Registry
- DDI
- AC/NIC
- NI0/USSR-EE
- NIO/WE .
- NI0/Econ
4(9 Sept 82)
Approved For Release 2009/05/05: CIA-RDP84B00049RO01700220003-2
SUBJECT: 9 September SIG/IEP Meeting on Pipeline and East-West
Economic Relations