GLOBALIZATION STUDY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88B00443R001904460024-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: August 30, 2011
• Sequence Number: 24
• Publication Date: July 25, 1986
• Content Type: MEMO

Sanitized Copy Approved for Release 2011/08/31: CIA-RDP88B00443R001904460024-5
EXECUTIVE SEC :TARIAT
ROUTING SLIP
SUSPENSE TBD
Remarks To 5: Please pass in ku an s eslre
to have recommended conference convened. (Please
keep DCI apprised of events as they occur.)
txW25 Jul` 86Y
ACTION
INFO
DATE
INITIAL
DCI
X
2
DDCI
X
3
EXDIR
4
D/ICS
5
DDI
X
6
DDA
7
DDO
8
DDS&T
9
Chm/NIC
10
GC
11
T
12
Compt
E
D/OIL
14
D/PAO
15
D/PERS
16
VC/NIC
17
D/OGI
A
18
D/HLA
X
19
ES
x
20
EXDIR
X
21
NIO/ECON
X
22
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 Sanitized Copy Approved for Release 2011/08/31: CIA-RDP88B00443R001904460024-5
Ezecufire Regis
try
86- 2912/2
25 July 1986
MEMORANDUM FOR: Deputy Director for Intelligence
FROM: Director of Central Intelligence
SUBJECT: Globalization Study
1. Please compliment and the others who
worked on preparing the globs iza ion s u y an conducting the meetings with
Leo Cherne and Alan Greenspan.
2. I would like to see the recommendations made by
on page 3 of this memo fully implemented.
William J. Casey
Attachment:
DDI 03388X-86
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 Sanitized Copy Approved for Release 2011/08/31: CIA-RDP88B00443R001904460024-5
17 JUL 1986
MEMORANDUM FOR: Director of Central Intelligence
Deputy Director of Central Intelligence
VIA: Deputy Director for Intelligence
FROM:
DDI.
Director of A rican and Latin American Analysis
SUBJECT: Meeting with Messrs. Greenspan and Cherne
1. Action: For your background information and reaction.
2. Background: On 15 July, we met in New York with Alan
Greenspan and Leo Cherne to discuss their reactions to our
financial globalization study and followup work that could be
done on issues you have raised with us regarding deficit-trade-
exchange rate interrelationships and implications for US
vulnerabilities and opportunities. Regarding the financial
globalization report, they both felt that it treats an important
matter in an effective way. They recommend we publish it with
the following fixes which we are making:
o Add a scope note to indicate that dramatic changes in
financial markets and structure are part of a broader
process of structural change that affects industry,
technology, and agriculture.
o Add an in-text discussion on the specific linkage between
financial globalization and the movement of industry and
technology from one country to another.
Take out or sanitize whatever is necessary to limit the
classification to secret noforn in order to maximize
dissemination in the Washington policy community.
3. In our separate conversation with Greenspan, we talked
extensively about what the Agency could or should be doing on the
deficit-trade-exchange rate interrelationships. In our
discussions, he raised considerable doubt about whether the
Agency has much comparative advantage in doing work designed to
All portions Secret.
SFDET
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SECRET
shed light on these interrelationships. He recommended that
instead of launching an analytical effort, which might well yield
little intelligence value, that we sponsor a conference that
pulls together some people who have been thinking about the
issue.
4. In discussing the conference option, Greenspan
recommended that we hold it in New York and that in addition to
himself we consider the following people:
Greenspan felt that a session with these people would go a long
way toward identifying where the Agency can make a difference on
this matter. Greenspan stated that when all is said and done the
most unique contribution we might make to the interrelationships
issue might well turn out to be the financial globalization study
itself.
5. We also talked at length with Greenspan concerning the
international financial system and the Soviets. He believes that
the Soviets are using the interbank system, but probably not to
the extent that Roger Robinson has been arguing. In any event,
Greenspan believes the more serious threat is the question of
what the Soviets could do to muck up the international financial
system by tampering with the technical mechanisms or by using
misinformation or other techniques specifically designed to
damage or disrupt the very taut international financial
process.
6. Greenspan is very concerned that because the system is
so delicate and expanded so rapidly that we are more vulnerable
than ever to Soviet targeting. He feels strongly, and we agree
that nobody else has the charter abilit to
with him
,
pursue this matter other than the Agency.
study identifying and evaluating the vulnerability of the
international financial mechanism to Soviet manipulation and
disruption. While OGI has unique capabilities in this arena,
SOVA is in the best position to do work analyzing what
opportunities the emerging Soviet hard currency problem creates
for the United States.
2
gPrPPT
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 Sanitized Copy Approved for Release 2011/08/31: CIA-RDP88B00443R001904460024-5
SECRET
7. Based on our conversations we recommend the following
line of march:
o Make the suggested changes in the Financial Globalization
paper and then publish it.
o Put together the conference on interrelationships with
the invitees Greenspan suggested.
o Immediately initiate an OGI report International
Financial Network: Vulnerability to ovie argeting
Threat.
o Commission a SOVA assessment examining the opportunities
the Soviet hard currency problem creates for the United
States.
8. We have discussed the SOVA angle with and
he is in agreement. Needless to say, if you w alk
to us further about the session with Greenspan and Cherne, please
1 M- us know
3
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