HOW REAGAN WAS FOILED ON SOVIET SANCTIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00806R000100420002-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: September 9, 2010
• Sequence Number: 2
• Publication Date: May 27, 1983
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/09/09: CIA-RDP90-00806R000100420002-2 STAT
ARTICLE =11.0m
OA P.GB ~1
WASHINGTON POST
2? MAY 1983
HOW Rem an - MY-associate .Dale Van Atta has ?William..i. e..~ in September and
pieced together the story from secret asked h m to
documents and interviews over the ~? Examination af -.the CIA s' August
Was Foiled on:'- -Past six mom estimate Show ft
As I reported in November; the -It sho oompkte ignorance- of thg
Soviet Sanctions Kreml "'. a t nrvbuld terms of..tbe -Coat: _tbe Sovie
When President...,Reagan meets lure recnnaogy - f ..the 'Sewers The CIA abo.?drastically under-I
allied 3eaders aha eekend in :x411- -cracked dawn on : PoJend. -"mowing estimated e. vaineto`the So lets a#
I
"tije
liaalsburg,: V :,,be vadiscover in a . = ir-wwn -timetable Ior the ~s:ack- '' ~- ins aro~e~ Eurap~;
very personal _avsy ---that; _he was- ''dorm, the' Soviets rushed io: Tefl obviously 74 VII aonsi tion ip
snookered intp P1?h+8 the Soviet down contracts for pipeline equip- degree,Of plniishme~t
,-Plpel' a s'anctio'ns.'."
anctions . scent, wlth wedLetn , Me Inl`llctedrby~the.aa ons. 'I'lls CSA
his . I 7sported .icier =Novembe r fib contract was
Slgned ,11~loecow -figured be 1~K tti0d 1A rn5ke
when lawn.~annamoed the end of-- Dec. 14,1981, the day-after mar- about $5 billiona3' after.vomple
m
`
the sanctions he had imposed In - tial law had been declaredin Poland., ,of the first
;pspellne segment
January,* 1982-the Soviet leader.. 'he one U.S. compeny whose 'But other intelligence estimates put
ship had outguessed the white product- were considered by the So-. the figure at $8 billion to $10 billion
House at every step. viets to be vital.to theirnatural,gas a year.
The CIA"playW.-into the Krem. -P hi- was General Electrie Acid Even worse, the CIA- didn't even
lin's hands by producing. 'o?shoddy. . -GE .obviously stood to make a -bun- address the juestion -of Soviet gas
intelligence. estimate&:on the likely,- - 'ells 'I
Sales the sanctions were. >lifted.n two >inoeeatrands .of till'
effects of the sanctions. Then the . Knowing this, the CIA relied heavily others e m AWsale Mater
agency compounded its errors by nn =GE for information. on bow -the by a b $30 beliod to.$4llion
following the recommendations of an -sanctions ~wereworking. a .Year 81.in m oladly needed hard 0 bid Curren-
American 'company .that -stood -to A GE representative. eooadinated Py
the . -gave
gain millions if the sanctions were and controlled a two-hour CIA brief-
the sober' M he k
lifted. mg for white House and State De. e second estimate he had f)
Finally, the State Department ev- partment officials in early 1982. His q"esW It was essentially a justifi
'idently was persuaded by our Euro- presentation naturally favored : drop- cation of .the t-one, 'Wk the Cltz
peas allies -that,if-the -sanctionswere ping the , sanctions,- and it-want .sub- _ ~` t the sanctions, Shultz
lifted they would ? join ' in - an. atantiall was able to persuade the
- y unchallenged by the CIA. should be. lifted. As -a' ce-saving.
ment on trade with the Soviet -bloc. ' In August, 1982, the ? CIA pro. gesture , it was eed
Secretary of State George P. Shultz duoed-.an intelligence estimate that that the
convinced Reagan this was the rase. Ae would join in e
strongly criticized the sanctions tough general
d`
The president will find out this Upset by the report, white House with the agreement on tro
.
soviets, The president-Will
weekend just how empty .the allied leaders' national security affairs adviser Wil. try to hold the allies to their promise.
assurances were. liana P. Clark wrote CIA . Director this weekend.
Sanitized Copy Approved for Release 2010/09/09: CIA-RDP90-00806R000100420002-2