OLMDER TRADE MISSION TO THE USSR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87T00759R000100020024-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 15
• Document Creation Date: December 22, 2016
• Document Release Date: November 16, 2010
• Sequence Number: 24
• Publication Date: January 11, 1985
• Content Type: MEMO

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-SC RE-1--
The Director of Central Intelligence
Washington, D.C. 20505
National Intelligence Council
NIC #00178-85
11 January 1985
MEMORANDUM FOR: Director of Central Intelligence
Deputy Director of Central Intelligence
Assistant NIO for Economics
SUBJECT: Olmer Trade Mission to the USSR
1. I thought you would be interested in some background on Lionel
Olmer's trip to the Soviet Union. As you can see from NSDD 155, the
SIG-IEP took a close look at his proposed agenda and sought assurances
that the discussions would be kept within narrow bounds.
2. We only have press guidance on the results of the meetings at
this time. Olmer told correspondents that a future ministerial meeting
was "possible." By Monday noon, we should have a better reading on the
substance of the discussions. I will forward a summary of these results
prior to your afternoon meeting with Olmer.
3. Several other major countries plan trade missions to the USSR in
the near future. The Japanese, for example, recently held talks on
possible trade expansion. An analysis of projects underway, however,
indicates that any upturn in Japan-USSR trade relations will be
extremely limited.
Attachments:
As stated
Cl By Signer
Decl OADR
All portions Secret SECRET Derived fm Multiple
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NIC #00178-85
11 January 1985
SUBJECT: 01mer Trade Mission to the USSR
DCI/NIC/A/NI0/Econ:
Dist:
Ori g - DCI
1 - DDCI
1 - ExDir
1 - OCI/SA/IA
1 - ER
1 - C/NIC
1 - VC/NIC
1 - 0. Low, A/NI0/Econ
1 - DOI Registry
2-I
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Background on Olmer Trade Mission to the USSR
The purported reason for the Olmer trade mission to the USSR was to
discuss obstacles to the expansion of non-strategic trade and to explore
if there should be a meeting of the Cabinet level US-USSR Joint
Commercial Commission.
Olmer said he intended (a) to raise the issues of
non-discriminatory treatment of US firms seeking to export,
(b) to discuss possible areas for mutually beneficial trade
expansion, and (c) to explain our current export control policy.
Per agreement in the SIG-IEP, Olmer was to hold these
discussions within the context of current export control
policies and was not to discuss changes in oil and gas
equipment and technology controls "pending further policy
clarification."
US firms currently are generally excluded from Soviet bid lists
and prevented from promoting their products in the USSR.
US sales to the USSR last year totaled just under $3 billion,
with agricultural goods accounting for 75 percent of the
total. Soviet sales to the US last year were around $500
million with ammonia, fuel oil, and palladium the lead export
items.
In discussing the trip at a SIG-IEP on 18 December 1984, Baldrige
assured members that the primary purpose of the trip was to lay the
groundwork for possible future discussions between him and Foreign Trade
Minister Patolichev.
CONFIDENTIAL
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C
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KUFMJA/USMTSSION US4EQLIN 6526
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1. SUr*MAUY$ IINDEQ SFCQE'TnPY riF CnMMEPCE nL'4EP HFLO A
PRF_SS C(JrvFFWFr?ICE 1inQ *FSTFQN CORQESPQMUENrs IN W'ISCra t-l r I: r_ 1 ?1 rlr 14? U Q} in r ` r?/;CI Sc' THr_ _;C, t%fITIcS
R f F' P S -,-n' C1 I),'Fr. '. ;.~IIcgQ J,neKTN' r Q'IfIr "F F'/Pr-QTS.
OLMFU SOME CAUTT'.)USLY nN FUTURE PQnSC'ECTS Fr)P QILATEQAL
TRADE. Arin WAS NfNCOW'lTTTAL QFGAQnTPIG TI,--E PnSSIRTLTTY
THAT A FIILL JOTNt CnoMEQCTAL CnMMTSST(+N 01ULrl MFET THIS
YEAR. HE EMPHASIZED THAT II.S. DOLIC_TES ON ExpnPT
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2. IN ADDITION TO HANDI4G nUT A ORF.,SS PELEASE IDARAGRAPH
4 SELOw), i1LMFR DREW LARGELY ON POINTS COI'ITAINEn IN
REFTEL A TO nFSCRIAE THE WORKING C,ROIIP'S TASK nor EXAMINING
? THE PROBLEMS AND PAnSPRCTS 'FOR U.S.-SOVTET
BILATERAL TRADE. nLMER NOTED THAT THE MAJOR OR.JECTIVF
OF THE wnaKIrJG GROUP WAS TO nFTERMTNE THE MERITS (IF
CONVENING A 4EETTPIG OF THE FULL JOINT COMMERCIAL
COMMISSION (JCC). IHFN ASKED AAn0T THE PnSSTRTLITY OF A
JCC MEETING, nLMER EMDHASIZFO THAT, AS YET, NEITHER SIDE
HAO TAKEN A FIRM POSITION IM THE MATTER. WE AnnED THAT
HIS REPORT TO COMMERCE SECRETARY RALnRIGE KnULn HELD
CLARIFY THE I.S? VIEW rnAAUD HOLDING A JCC MEETING.
PRESSED TO COMMENT ON THE OnSSIHLF VENUUF FOR A MEETING,
PARTICULARLY IN VIE. OF SOVIET FORETON TPAI)E MINISTFR
PATOLICHFV'S TN.AFTLTTY TO TRAVEL, nLMER ALLC1wFn THAT
(. THE U.S. SIDE i i1IILO NOT NECESSARILY STAND r1N PpnT(1C')L
CS
AND *OULO CON=SIDER MoSCOw AS A ST TE FOR A SECOMn
CONSECUTIVE JCC MEETING, SHOULD gfTH SIDES AGPFF TO
HOLD THE JCC.
3. nLMER STRESSED THAT U.S. POLICIES (IN EXPORT COMT
HAD UNOERGONF Mn CHANGE AND THAT THE SOVIET SIDE NAS
SO TNFIIN'NED nIIRIyG THE IQkIf,.iG GROUP uFETINr. HE
ME-.Tltl..iFi- -S I^Ll 'I.S. GFF,iRTS DURING THE +EETTrd, TO
EOt,r_xTy THE SI)VIET SDFCTALISTS pcr,Awntr`jG ('.S. LICENSING
PRACTICES, PARTICIIL.APLY SINCE THOSE PRACTICES ARE NOT
AS RESTRICTIVE AS THE SOVIETS LIKE TO SUGGEST.
RESPONDING TO A OIIESTION AMOUT PERSONAL Cf1MPOTERS.
HE OESCRIAED THE IVCnRDnPATION OF NEW COCOM AGREFMFNTS
INTO U.S. REGULATIONS, EFFECTIVE .JANUARY 1. OLMER
(.. NOTED THAT THE wr?RKING GROUP REVIEMED IN A GENERAL *AY
A NUMAER OF AREAS 3F DOSSIALE COOPERATION, APFAS *HTCH THE
SOVIETS ARID ')*So AIISINESSMFN FRO.*4 UISTFC HAD nTSCUSSEn
C PRIOR Ill THE MEETING OF THE WORKING GR(IUP. IN RESPONSE
c
c
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r
USDOC FOP SOHO/TA/AS/WAQCHEY
? USDOC FOR 4200/IEP/EUR1OAS/FVAQGO
Eon. 123561 N/4
TAGS1 ECON, FTRD, Up, US
SUBJECTI *r1PKI"iG GROUP OF EXDERTSI OLMER PRESS C!1NFFPFNCE
TO A IIIIEST I ON, OLMER TOtICHFD RP I EFLY TIN U. S. CnNCFr1N
ABOUT LOSS OF SOVIET ACCREnITATTr1N HY THE U.S. FIRM
CALIF'JQNIA TNTERNAr10NAL TRAnF ANO THE SOVIET DRESS
C ALLEOATIDNS OF F-SDI'INAGF AND TMDRODEQ POSTNESS PRACTICES
ON THE DART CF A C 'APANY EXECUTIVE.
4. THE FOLLOWING IS T-!E TEXT OF THF U.S. nFLFGATIO OS
PRESS RELEASE OF JANUARY to ON THE wfQKTNG GRIIIIP MEErINGZ
ODUTE THE 'I.S.-t1.S.S.R. HPPKTNG GWnUo (IF FXPEPTS MET
JANUARY 8.9 IN MOSCn* TO DISCUSS RILATERAL TQAnF RELATTONS
AN') THE POSSTiTLITIFS FLIP rLADE EXPANSION. THF UeS.
Ci DF_Lt= ,ATItr! AS HFAhFp 4Y UN.NI)ER SECQFTAPY OF CDMMERCF-
LIONEL H. OLUFR. THE S"JVIFT OELF_CATInN WAS HFAnEO HY
DEP'ITY FnPEI4,N TRADE -+INISTEP VLAnItIR SUJSHK(1V.
THE PRINCIPAL otJPC)r)SF OR THE MEETINI6S wA5 TO EXPLORE
WHETHER THFQF *AS ENOUGH CnMMON GROUND TO WARRANT
CONVENING A MEETING OF THE U.S.U.S.S.Q. JOINT COMMERCIAL
COMMISSION, A MINISTERIAL-LEVEL TRADE GP(1t1D wHTCH IS
CHAIRED AY U.S. SECRETARY OF COMMERCE MALCnLM RALnRTGF
ANO SOVIET FOREIGN TRAOg MINISTER NIKOLAI PATOLICWEV.
THE DISCUSSIONS COVERED THF STATUS OF TQAnE,
OBSTACLES TO TPAnE. AND THE PP'SPECTS FOR TRADE
EXPANSION. THE TALKS WERE FPAVK ANO DTRFCT, WITH EACH
SIDE RAISING THE OBSTACLES IT SAN TO THE EXPANSION OF
TRADE. EACH SIDE ALS[1 EXOLAINEO THE AREAS IN *HTCH
IT RELIEVFD AN EXPANSION or TRADE WOULD RE RENFFICTAL.
THE 11?S, DELEGATION FXDLATNED THAT THE UNITED STATES WAS
INTERESTED IN EXPANDING PEACEFUL TRADE, AND, STRESSED
THE U.S. I4TROEST IN TRADE GQnNTH -VAS ONLY IN THOSE
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AREAS THAT HFPE f OvSISTENT WITH U.S. FXPf0RT CnNTQfI1,
POLICIES AND ',ITH OTHER U.S. LAWS GUVFPFIT"NG RTLATFRAL
TRADE.
UNDER SECRETARY (1LMER STATED THE U.S. VIEW THAT TWFQF
40
WAS CONSIDFPAMLE RnnM FOP AN FXPANSTnN OF MtUTUALLY-
BENEFICIAL TRADE wiTNIN THE OPESENTLY?OFLINEATFD AREAS.
U.S. EXPORTS TO THE U.S.S.P. APE ONLY DOLS ?.Q QTLLTDP',
G OF -HIGH An OERCE-,IT 4HE Ar;RTCULTUPAL PPt1(1t.ICTS. SOVIET
EXPORTS TO TdF' UNITED STATES ARE D(1LS SDn MILLIn^i.
A 04NGE OF OaSTACI.ES SEEN AY EACH 5InF *FOE OISCUSSFO?
*ITH AN "PEN FXCHAVGE OF VTF*S. THE Dt1FPl-SE OF THE
? LI14ITED OFFICIAL USE SECTION 13 OF 03 MUSCnw nnS11
USnOC FOR lnnrl/nS/ITA/v?VDER SECQFTAPY 0LMFR
USOOC FOR Sgnn/TA/AS/WAQCHEY
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TAGS$ ECnN. FTQ0. OR. US
SUBJECTS WORKING GQ1UO IF EXPERTSS OLMER PRFSS CONFFPENCF
C WORKTNG GROUP 4FETT4G NAS ONLY TO DISCUSS VTEWS AND
POSITIONS. NOT TO NEGOTIATE DIFFEPENCFS. AREAS IN WHICH
U.S. CUMPANIFS AND SOVIET (PGANI7ATTONS MIGHT UNDERTAKE
PROJECTS OR EXPAND TRADE wEQF ALSO DISCUSSED IN A
PRELI4INARY FASHION, alto THE UNnFQSTANDTNG THAT NO
DECISIONS 41EPF TO RE WADE AT THIS DOTNT. ROTH STIES
BELIEVED TNEQE WAS SIGNIFICANT OVFRLAPPING OF AREAS OF
INTEREST.
(,. UNDER SECRETARY OLMER EXPRESSED THE SATISFACTION IF THE
U.S. OELEGATInN WITH THE TONE ANO SURSTANCF OF T14F
MEETINGS. HF EXPLAINED, H(1.EVER. THAT THE DECISION ON
WHETHER THE UNITED STATES NOW MANTEn TO MOLD A MEETING
OF THE CAOINET-LEVEL U.5.-SOVIET JOINT COMMERCIAL
COMMISSION WAS A OECTSIOV THAT Kn,'LD RE MADE AFTER HE
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41
9
r
25X1
THE U.S.-U.S.S.Q. anRKivr, GQIUP OF EXPERTS VAS FnRMFI)
IN 1974 WIDER THE TERMS OF THE U,S.-U.S.S.R. 1_nNG-TERM
AGQEEMFNT Tfl FACILITATE ECONnOIC, IMOUSTPTAL. ANr)
TECHNICAL 0000?QATION. THAT AGRFEMENT WAS FxTFPIr)En TN
JUNF_ 19A? FfP A FUQTwFR 1A YEAQS, RY MUTUAL AGREEMENT OF
THE UNITED STATES ANf) THE SOVIET M 410N, THIS MEETING
OF THE 4OPK I MG GROUP N A S THE FIRST SINCE 197A* LINQIIOTE.
HARTMAN
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The Washington Post January 11, 1985
U.S.-Soviet Trade Talks
Likely to Resume
;Joint Group May Be Revived After 6 Years
By Celestine Bohlen
washin ft Feat RacNp Sarvin
MOSCOW, Jan. 10-After a six-
.year freeze, Cabinet-level meetings
between the United States and the
.Soviet Union on trade issues are
,likely to resume, a U.S. Commerce
Department official said here today.
It seems to me there is reason
for optimism," said Undersecretary
of Commerce Lionel H. Olmer at a
press conference winding up 2%
days of talks with Soviet trade of-
ficials.
Olmer, heading a delegation of 10
U.S. officials, said the main purpose
of his visit was to determine if a
meeting of the Joint U.S.-U.S.S.R.
,Commercial Commission would be
. worthwhile. The commission,
chaired by U.S. Commerce Secre-
tary Malcolm Baldrige and Soviet
,Foreign Trade Minister Nikolai Pa-
,tolichev, has not met since Decem-
her 1978.
A final decision has not yet been
made, but Olmer said his meetings
here with Patolichev and Vladimir
Sushkov, deputy foreign trade min-
ister and head of the Soviet dele-
gation, indicated that a ministerial
meeting was possible.
- "It seemed there are a number of
areas where we can talk usefully
and productively about expanding
inonstrategic trade," Ohner said.
Official U.S.-Soviet contacts on
issues were broken off after
.trade the Soviet invasion of Afghanistan
in December 1979. Since then,
.trade relations have been buffeted
.first by a U.S. embargo on grain
,sales and then, after martial law
was declared in Poland in Decem-
ber 1981, by a U.S. effort to block
the sale of equipment for a Siberian
natural gas pipeline.
The 1980 grain embargo has
since been lifted, replaced by a five-
year grain agreement signed in
1983, and U.S. companies now can
sell pipe-laying equipment to the
Soviet Union, provided it is not con-
sidered "strategic," Ohner noted
today.
But U.S.-Soviet trade is still be-
low what it was in 1979. According
to the Soviet news agency Tass, the
United States has fallen from sec-
ond to seventh place among the So-
viet Union's capitalist trading part-
ners.
While citing a potential for "sig-
nificant expansion" in U.S.-Soviet
trade, Ohner noted that even in
1979, U.S. manufacturing exports
to the Soviet Union were $700 mil-
lion, a fraction of U.S. world trade.
"It's not great when measured
against half a trillion dollars in ex-
ports and imports,* Olmer said.
This week's talks focused on
ways to improve the trading climate
and to ease business contacts within
the framework of existing restric-
tions, Olmer said.
He singled out agribusiness, pet-
rochemicals and consumer products
as fields where U.S. business
groups felt American firms could
meet Soviet needs. The Soviets, for
their part, want to increase their
exports to the United States, but
were not explicit about the type of
products, Olmer said. Conceding
that the U.S. market for Soviet
goods is "very small" Ohner said,
LIONEL H. OLMER
.:. sees "reason for optimism"
"Tie problem of marketing Soviet
goods is a Soviet problem."
Restrictions on the sale of "stra-
tegic" goods and technology, as well
as longstanding preconditions on
granting the. Soviet Union most-
favored-nation trading status, were
not discussed this week, Olmer said.
'here is no intention, no senti-
ment, no interest in pursuing
changes" in those areas, he said.
The United States has tied most-
favored-nation status to greater
freedom for Soviet citizens to em-
igrate and has signed agreements
with 14 nations limiting the transfer
of technology to Warsaw Pact coun-
tries.
Ohner said the Soviets were not
aware that the 15-nation committee
that monitors sensitive exports to
the Soviet Bloc had changed its
rules recently to allow the sale of
personal computers to countries in
the bloc. Those changes were
adopted along with tighter restric-
tions on the sale of more sophisti-
cated computer technology.
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US Favors Expansion
Of Trade With Soviets
January 11, 1985
By ALBERT AXEBANK
Journal of Can..a sv.oi
MOSCOW - U.S. U~
of Commerce Lionel H. Olmer said
Thursday be had told the Soviet Union
there is "considerable room" for an
expansion of mutually beneficial
trade between the two countries
within the presently delineated areas.
Mr. Olmer told a news gathering in
Moscow that be had met and held
lengthy talks with Soviet Foreign
Trade Minister Nikolai Patolichev
and his deputy, Vladimir Sushkov.
The U.S. Commerce official and
his delegation were to return to
Washington next Monday and discuss
with Secretary of Commerce Mal-
colm Baldrige whether there is
enough common ground to warrant
convening a ministerial-level meet-
ing with the Soviets. ,
Mr. O1mer said, in reply to a
question from this newspaper, that
the Reagan administration "favors
expansion of peaceful trade with the
U.S.S.R. in non-strategic areas." He
said recent decisions of the United
States and its awes had resulted in an
eating of some restrictions on Soviet
trade, for example on sales of person-
al computers to the Soviet Union.
At the same time, Mr. Olmer said
be raised with Soviet officials" the
problems existing U-S, legislation
dealing with Soviet t trade, including
Soviet trade and economic council
recently had come up with a number
of projects in which the Soviets were
interested. He said the Commerce
bepartment has been examining
these projects for approval.
.. Mr. Olmer said a member of his
delegation had explained to the Sovi-
ets about anti-dumping laws in the
United States.
The Commerce official said a
Soviet-American working group of
experts was formed in 1974 under the
terms of the U.S.-U.S.S.R. l ng-term
the linkage of such trade with Soviet
emigration policies-
Mr . Olmer said the talks in Mos-
cow covered the status of trade,
obstacles to trade and the prospects
for trade expansion. He called the
talks frank and direct, with each side
raising the obstacles it saw to in-
creased trade. Each side also ex-
plained the areas in which it believed
an expansion of trade would be
beneficial.
U.S exports to the Soviet Union
were approximately $3 billion last
year, of which 80 percent was agricul-
tural products. Soviet exports to the
United States totaled about $500
million.
Mr. Olmer said there was a
potential for U.S. firms to make
profits in Soviet trade and also to
make a "contribution" to Soviet-
American understanding.
He said some difficulties with the
Soviets were not capable of resolu-
tion, that some difficulties can be
resolved and that in a third area there
were no difficulties. The official said
U.S. Ambassador Arthur Hartman
had proposed last year a U.S. pam-
phlet, which was published, setting
forth those American products for
export to the Soviet Union that did
not require a license
Mr. Olmer said the American-
SEE US FAVORS, PAGE 3A
agreement to facilitate economic,
industrial and technical cooperation.
He said that agreement was extended
in June 1984 for a further 10 years by
mutual agreement of both countries.
He said his meeting in Moscow this
week was the first of such a working
group since 1978.
Mr. Olmer said the Soviets had
agreed to meet with an official of a
US firm, CIT, which had lost its
official Soviet accreditation.
Soviet Trade
Talks Ended
4W to as New aa. 1 IS
MOSCOW, Jan. 10-'Ilse head of an
American trade delegation said today
that he was optimistic about the pos-
sibilities for a meeting between Com-
and the Soviet Foreign Trade
ter, Nikolai S. Patolichev.-
Ending two days of talks, Under-
secretary of Commerce Lionel H.
Olmer said, however, that he had
made it clear that there was no ques-
tion of the United States' reviewing
its policy of trade restrictions on
goods with possible military applica-
tions.
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CONFIDENTIAL
NIO/ECON
NCOM:25X1
PP RUEAIIB
ZNY CCCCC ZOC STATE ZZH
PP RUEHC
DE RUEHC #2431 0040707
ZNY CCCCC ZZH
P 0405552 JAN 85 ZEX
FM SECSTATE WASHDC
TO COCOM CAPITALS COLLECTIVE PRIORITY
RUEHWL/AMEMBASSY WELLINGTON PRIORITY 0000
RUEHBY/AMEMBASSY CANBERRA PRIORITY 0000
RUEHBJ/AMEMBASSY BEIJING PRIORITY 0000
RUEHWL/AMEMBASSY SEOUL PRIORITY 0000
BT
C O N F I DENT I A L STATE 002431
E.O. 12356: DECL:OADR
TAGS: ETRD, UR
SUBJECT: US-USSR WORKING GROUP OF EXPERTS'
MEETING
1. COMMERCE UNDER SECRETARY LIONEL OLMER WILL LEAD AN
INTERAGENCY U.S. DELEGATION TO MOSCOW FOR AN ECONOMIC
EXPERTS' GROUP MEETING ON JANUARY 8-10. THIS MEETING,
WHICH IS BEING HELD UNDER THE PROVISIONS OF THE
U.S.-SOVIET LONG TERM ECONOMIC, INDUSTRIAL AND
TECHNICAL AGREEMENT. IS THE FIRST MEETING OF THIS GROUP
SINCE 1978. IN ADDITION TO COMMERCE, REPRESENTATIVES
FROM THE DEPARTMENTS OF STATE, TREASURY. AND
AGRICULTURE AND THE OFFICE OF THE SPECIAL TRADE
REPRESNTATIVE WILL BE REPRESENTED ON THE U.S.
DELEGATION.
2. THE PURPOSE OF THE WORKING GROUP IS TO REVIEW THE
STATUS OF OVERALL U.S.-SOVIET ECONOMIC RELATIONS, TO
DISCUSS PRESENT OBSTACLES TO THE EXPANSION OF
NON-STRATEGIC TRADE, AND TO EXPLORE IF THERE SHOULD BE
A MEETING OF THE CABINET-LEVEL U.S.-U.S.S.R. JOINT -
COMMERCIAL COMMISSION (JCC). THE JCC WAS
ESTABLISHED IN 1972 BUT HAS NOT MET SINCE 1978. IT IS
CHAIRED ON THE U.S. SIDE BY SECRETARY OF COMMERCE
BALDRIGE AND ON THE SOVIET SIDE BY FOREIGN TRADE
MINISTER PATOLICHEV. THE USG HAS AGREED TO CONSIDER
PROSPECTS FOR A JCC MEETING AS PART OF THE OVERALL
EFFORT TO ESTABLISH A MORE CONSTRUCTIVE RELATIONSHIP
WITH THE SOVIET UNION, BUT HAS INSISTED THAT A JCC
MEETING CAN ONLY BE HELD IF IT WILL RESULT IN CONCRETE
STEPS BY BOTH SIDES TO FACILITATE THE EXPANSION OF
NON-STRATEGIC TRADE. THE MISSION OF THE WORKING GROUP
IS TO DETERMINE IF THERE IS A SUFFICIENT OVERLAPPING OF
TRADE INTERESTS TO ENABLE A SUCCESSFUL JCC MEETING.
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3. WE 00 NOT EXPECT A SHARP RISE IN TRADE AS A RESULT
OF THE MEETING. BUT BELIEVE THAT IT WILL HAVE A
POSITIVE IMPACT ON OUR OVERALL ECONOMIC RELATIONS.
U.S. SALES TO THE USSR IN 1984 ARE EXPECTED TO BE DOLS
2.9 BILLION WITH OVER 75 PERCENT OF THESE BEING
AGRICULTURAL COMMODITIES. SOVIET SALES TO THE U.S. IN
1984 WILL BE ABOUT DOLS 500 MILLION WITH AMMONIA. LIGHT
FUEL OIL, AND PALLADIUM BEING THE LEADING SOVIET EXPORT
ITEMS.
4. THE WORKING GROUP WILL HOLD DISCUSSIONS ON THE
STATUS OF U.S.-SOVIET TRADE, WILL REVIEW OBSTACLES TO
THE EXPANSION OF THAT TRADE, AND WILL SEEK TO IDENTIFY
AREAS IN WHICH BOTH SIDES BELIEVE AN EXPANSION OF
COMMERCE WOULD BE IN THEIR MUTUAL INTEREST. THE U.S.
DEL WILL EMPHASIZE THE USG VIEW THAT THERE IS ROOM FOR
AN EXPANSION OF NON-STRATEGIC TRADE WITHIN THE
PARAMETERS OF PRESENT EXPORT CONTROL POLICIES. THE
U.S. DEL WILL STRESS THE EFFECT THAT SOVIET PRACTICES
ARE HAVING ON THE ABILITY OF U.S. FIRMS TO CONDUCT
NON-STRATEGIC BUSINESS -- PRACTICES SUCH AS REMOVING
U.S. FIRMS FROM BID LISTS, PREVENTING U.S. COMPANY
PROMOTION EFFORTS. AND INSTRUCTING PURCHASING OFFICIALS
TO AVOID BUYING U.S. PRODUCTS. IN ADDITION TO THESE
ISSUES WE ALSO INTEND TO RAISE OUR CONCERNS WITH SOVIET
HUMAN RIGHTS AND EMIGRATION POLICIES.
5. THE SOVIET DEL IS EXPECTED TO RAISE EXPORT CONTROLS
AND CONTRACT SANCTITY AS MAJOR TRADE OBSTACLES AND TO
REPEAT LONG-STANDING SOVIET COMPLAINTS REGARDING LACK
OF MFN TREATMENT IN THE U.S. MARKET AND LACK OF
OFFICIAL U.S. EXPORT FINANCING. THE SOVIET DEL WILL
ALSO RAISE VARIOUS SPECIFIC U.S. RESTRICTIONS ON SOVIET
EXPORTS TO THE UNITED STATES, SUCH AS ON FURS. NICKEL.
AND POTASH. WE ARE ALSO EXPECTING THE SOVIETS TO
EXPRESS INTEREST IN U.S. OIL AND GAS EQUIPMENT EXPORTS
AND IN THE POSSIBILIITY OF U.S. COMPANY PARTICIPATION
IN SOVIET ENERGY PROJECTS.
6. ALL US DEL DISCUSSIONS IN THE WORKING GROUP WILL BE
WITHIN THE CONTEXT OF PRESENT EXPORT CONTROL POLICIES.
THE US DEL WILL NOT BE DISCUSSING ANY EXPANSION OF
GOODS OR TECHNOLOGIES AVAILABLE TO THE SOVIET UNION
BEYOND THOSE PERMITTED UNDER PRESENT CONTROL
REGULATIONS AND POLICIES. IN PARTICULAR, THE US DEL IS
NOT GOING TO BE DISCUSSING CHANGES IN OIL AND GAS
EQUIPMENT AND TECHNOLOGY CONTROLS OR AGREE TO AN ACTIVE
PROGRAM FOR TRADE EXPANSION IN THIS AREA, PENDING
FURTHER POLICY CLARIFICATION.
7. WE EXPECT THAT THIS MEETING WILL ATTRACT
CONSIDERABLE ATTENTION FROM OUR ALLIES SINCE IT IS THE
FIRST HIGH LEVEL GOVERNMENT-TO-GOVERNMENT CONTACT WE
HAVE HAD WITH THE SOVIETS ON ECONOMIC/COMMERCIAL
MATTERS. EXCEPTING AGRICULTURE, SINCE THE INVASION OF
AFGHANISTAN. WE BELIEVE THAT IT IS PARTICULARLY
IMPORTANT THAT THESE COUNTRIES HAVE A FULL
UNDERSTANDING OF THE SCOPE OF OUR ECONOMIC DISCUSSIONS
WITH THE SOVIETS BECAUSE WE WANT OUR COCOM PARTNERS TO
UNDERSTAND THAT BEGINNING A DIALOGUE WITH THE SOVIETS
ON TRADE MATTERS WILL NOT LEAD TO AN UNRAVELING OF
TRADE CONTROLS NOW IN PLACE. WE THEREFORE WOULD LIKE
TO HAVE POSTS APPROACH ALLIED GOVERNMENTS PRIOR TO THE
OLMER MEETING AND OFFER THEM A FULL BRIEFING USING
PARAS. 1-6 AND THE TALKING POINTS BELOW. WE ALSO
INTEND TO PROVIDE THEM WITH A READOUT OF THE RESULTS OF
THE OLMER MEETING.
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--- THE JANUARY MEETING OF ECONOMIC AND TRADE EXPERTS
IS AN IMPORTANT PART OF OUR EFFORT TO ESTABLISH A MORE
CONSTRUCTIVE OVERALL DIALOGUE WITH THE SOVIETS.
--- WE SUPPORT THE PRINCIPLE OF ENCOURAGING MUTUALLY
BENEFICIAL, NON-STRATEGIC TRADE WHILE MAINTAINING OUR
CURRENT REGIME OF TRADE CONTROLS IN SECURITY-SENSITIVE
AREAS.
--- AT THE MEETING WE PLAN TO EXPLORE WITH THE SOVIETS
IF THERE ARE AREAS IN WHICH NON-STRATEGIC TRADE CAN BE
EXPANDED ON A MUTUALLY BENEFICIAL BASIS. NO AGREEMENTS
OR NEGOTIATIONS WILL TAKE PLACE IN THE WORKING GROUP.
THE MEETING IS FOR THE SOLE PURPOSE OF ASCERTAINING
WHETHER IT WOULD BE WORTHWHILE TO SCHEDULE A MEETING OF
THE U.S.-U.S.S.R. JOINT COMMERCIAL COMMISSION FOR LATER
IN 1985. THISCOMMISSION, WHICH MEETS ON THE
MINISTERIAL LEVEL, IS SIMILAR TO OTHER MIXED
COMMISSIONS BETWEEN THE SOVIET UNION AND ITS TRADING
PARTNERS.
-- THE RESUMPTION OF A COMMERCIAL DIALOGUE WITH THE
SOVIETS WILL NOT RESULT IN ANY CHANGE IN THIS
ADMINISTRATION'S COMMITMENT TO TIGHT CONTROLS ON THE
EXPORT OF SECURITY-SENSITIVE EXPORTS TO THE SOVIET
UNION.
-- WE DO NOT PLAN ANY CHANGES IN OUR POLICY CONCERNING
THE EXPORT TO THE SOVIET UNION OF EQUIPMENT AND
TECHNOLOGY FOR OIL AND GAS EXPLORATION AND PRODUCTION
OR AGREE TO AN ACTIVE PROGRAM OF TRADE EXPANSION IN
THIS AREA. WE INTEND TO CONTINUE TO REQUIRE A
VALIDATED LICENSE FOR SUCH EXPORTS, EXAMINE
APPLICATIONS ON A CASE BY CASE BASIS. AND MAINTAIN OUR
CURRENT POLICY OF GENERAL APPROVAL FOR SALES OF
NON-STRATEGIC EQUIPMENT BUT DENIAL FOR SALES OF
TECHNOLOGY.
-- SPECIFIC ISSUES WHICH WE PLAN TO RAISE INCLUDE THE
NON-DISCRIMINATORY TREATMENT OF U.S. FIRMS SEEKING TO
EXPORT TO THE SOVIET UNION, GENERAL BUSINESS
FACILITATION MATTERS, AS WELL AS A CLARIFICATION OF OUR
CURRENT EXPORT CONTROL POLICY AND ITS EFFECT ON U.S.
EXPORTS TO THE SOVIET UNION. WE ALSO INTEND TO RAISE
OUR CONCERNS WITH SOVIET HUMAN RIGHTS AND EMIGRATION
POLICIES.
-- WE EXPECT THE SOVIETS TO RAISE SUCH ISSUES AS THE
RELIABILITY OF THE U.S. AS A SUPPLIER AND OBSTACLES
FACED BY SOVIET EXPORTS TO THE U.S. SUCH AS THE DENIAL
OF MFN. IN ADDITION, THE SOVIETS MAY RAISE CERTAIN
SPECIFIC ISSUES SUCH AS THE CONTINUED EXISTENCE OF A
BAN ON THE IMPORTATION INTO THE U.S. OF SEVEN KINDS OF
FURSKINS, PORT ACCESS REQUIREMENTS FOR SOVIET SHIPS
ENTERING U.S. PORTS, AND RESTRICTIONS ON AEROFLOT
OPERATIONS IN THE U.S.
-- NO SPECIFIC AGREEMENTS WILL COME OUT OF THE JANUARY
MEETING, BUT WE HOPE THAT THE EXCHANGE OF INFORMATION
WILL BE USEFUL IN EXPANDING OUR DIALOGUE ON ECONOMIC
AND TRADE ISSUES.
-- IF A U.S.-SOVIET JOINT COMMERCIAL COMMISSION IS HELD
LATER THIS YEAR. IT WILL NOT SET A PRECEDENT. MOST OF
OUR ALLIES HAVE BEEN HAVING ANNUAL CABINET-LEVEL AND
SUB-CABINET-LEVEL TRADE AND ECONOMIC MEETINGS WITH THE
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