MEMORANDUM FROM MR. ROBERT C. MCFARLANE ON NEW PROCEDURE OF ECONOMIC POLICY DECISIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87T00759R000100140004-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: August 9, 2010
• Sequence Number: 4
• Publication Date: November 7, 1985
• Content Type: MEMO

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SECRET
The Director of Central Intelligence Ur v
Wuhington. D.C. 20505
National Intelligence Council
MEMORANDUM FOR: Director of Central Intelligence
THROUGH: Chairman, National Intelligence Council
FROM:
NIC 05554-85
7 November 1985
Acting National Intelligence Officer for Economics
SUBJECT: Memorandum from Mr. Robert C. McFarlane on New
Procedure of Economic Policy Decisions
1. Attached for your signature is a response to Mr. Robert
McFarlane's memorandum naming the NIO Economics as the NIC representative
to an economic policy review group headed by the NSC's Senior Director
for International Economic Affairs, Stephen Danzansky. Representatives
of Defense and State will also be members of the new group.
2. McFarlane endorsed Danzansky's recommendation for the establish-
ment of the group in hopes of getting earlier and more substantial NSC
input on Economic Policy Council discussions. NSC's decision to
establish this group may well be challenged by Secretary Baker. As you
are aware, Baker's people control the agenda of the EPC and frequently
send out discussion papers only hours before a meeting.
3. While I believe that we should go along with McFarlane's
recommendation, we should also continue to look for an appropriate EPC
agenda item for you to press for membership. Defense Department and NSC
are now represented at the table as full members. CIA continues to
attend on a consultative basis.
Attachment:
As Stated
SECRET
CL BY SIGNER
DECL OADR
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Jtl.Kt I
SUBJECT: Memorandum from McFarlane on New Procedure for Economic Policy
Decisions
Acting NIO/Econ
Distribution:
Original - Addressee
1 - DDCI
1 - Executive Secretary
1 - Executive Registry
1 - C/NIC
1 - VC/NIC
1 - D/OGI
1 - Acting NIO/Econ
1 - A/NIO/Econ
0/Econ Files
6 November 1985 NIC 05554-85
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SECET
The Director o tral Intelligence
MEMORANDUM FOR: The Honorable Robert C. McFarlane
Assistant to the President for National
Security Affairs
SUBJECT: Your Memo dated 2 November 1985, Subj: National
Security Assessment of Economic Policy Decisions
1. I endorse your recommendation for prior review of pending
economic policy decisions for national security issues. Our experience
to date with the Economic Policy Council shows that an early review of
issues would be helpful both in the deliberations and as input for a
decision by the President.
2. 1 have National Intelligence Officer for
Economics to represent us on this group. The Director
of the Of ice o Global issues in CIA, will attend meetings
in the absence of the NIO.
William J. Casey
SECRET
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SECRET November 2, 1985
Executive Registry
4179
MEMORANDUM FOR THE HONORABLE WILLIAM J. CASEY
The Director of Central Intelligence
SUBJECT: National Security Assessment of Economic
Policy Decisions: New Procedure (S)
With the recent highly visible activity in the trade and
monetary areas, the President is more frequently called upon
to make decisions relating to economic policy than in the
past. Most of these decisions have major international and
national security implications. (S)
Because of this, I have become increasingly concerned in the
last few months that in the internal handling of interna-
tional economic issues there is no-mechanism to ensure that
final recommendations that are sent forward to the President
have been considered from an overall national security
perspective. Often it is the case that it is not until a
final recommendation is made that the national security
implications can be fully assessed. in addition, I do not
believe that CIA and Defense are adequately consulted on
many economic policy matters. The President must be given
the opportunity to weigh all the international political and
military implications of each proposal on the best informa-
tion available. (S)
I have decided, as a result, that it is necessary to put
into place a more formal procedure for providing the Presi-
dent with fully considered national security advice on all
international economic issues. What I propose is a require-
ment that all recommendations to the President on interna-
tional economic matters, from the EPC or other sources, must
be subject to a last stop national security review process
overseen by the security agencies: NSC, CIA, State and
Defense. (S)
This review process would be memorialized in a document
called a National Security Impact Statement (NSIS) which
would reflect the judgment of the above-mentioned agencies
on the relationship of the proposed decision to the Presi-
dent's overall foreign policy objectives. This document
would be prepared by representatives from the security
agencies who would assess the national security implications
of proposed actions. There is no intention in this proposal
to create another bureaucratic layer. The purpose is to
facilitate the decisionmaking process through a close
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SECRET 2
coordination of our agencies to best serve the President in
making economic decisions that could affect the national
security. (S)
I have asked Stephen Danzansky to coordinate the new process
on my behalf. Steve already has spoken to Willie Taft of
Defense about establishing better coordination on economic
policy matters, and with at the Agency. As
part of the NSIS process, oresee at it will be neces-
sary regularly to communicate with a small group from the
security agencies whose sole purpose is to provide the
assessments which would form the basis of the Impact State-
ment. In order to make the process as efficient as possi-
ble, I would like only one r from each agency.
I would request that you ask or some other
person, to regularly participate in meetings of this group
as the CIA's representative. (S)
Robert C. McFarlane
Assistant to the President
for National Security Affairs
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