US-USSR ECONOMIC NEGOTIATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP93T01142R000100160008-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 23, 2016
• Document Release Date: November 30, 2011
• Sequence Number: 8
• Content Type: MISC

Declassified in Part - Sanitized Copy Approved for Release 2011/11/30: CIA-RDP93TO1142R000100160008-8
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Declassified in Part - Sanitized Copy Approved for Release 2011/11/30 : CIA-RDP93T01142R000100160008-8
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 Declassified in Part - Sanitized Copy Approved for Release 2011/11/30: CIA-RDP93T01142R000100160008-8
14
INFORMATION MEMORANDUM
II `
TO : E - Mr. W . Allen Willis
1 w.. f
r~Nrd Asia (1r1i.srinsrn1
a Is ha gorl'an. 1) (. of$ .ofI
-THROUGH. : - .-M-tlliam Schneider
,.,. ?ROM: EB - Richard T. McCormack
x?SUNJECT: US-USSR Economic Negotiations
ley
:;,:--!!f rEREl1CE: C Me;nnt anJum of July 12
This replies to your request (TAB A) for turtner
L. recommendations on guidance for Com:nerce It the Soviet Union,
'r- at the pro)ected Joint Commission meeting, should seek to make
"_ wilow.
oil and gas equipment parcriases ftuia tree U.S. a rjig:ilj vi.al.lt
-as--centerpiece.
While Much can be done to normalize broader U.S.-Soviet
trade, even by exi ar,Jrd of f i . isl Ntu:::utiv i of tot ~.u::::?er:c
peps:tx-ent, are t?+v principles tae U.~. suuulU
consistently : nnr i!iue to defend as policy underpinnings:
is
1) The US st-'ports mutually beneficial trade with the US 6:t
in non-strategic and non-controlled goods on commercial
terms; and
2)-Consistent expressions of U.~S_'_polic .-to our allies ace
important tot the 74int-action-t-trat is clearly essential on
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background of positions on oil and gas issues, in the past
energetically staked out by the U.S. in COCOM, NATO and,
elsewhere.
East/West trade issues. In particular, t.nece is a
The policy consistency concern envelop/s a welter of
foreign policy raw nerves. We believe these raw nerves mak
the oil and gas field an inappropriate industrial field to le
selected for entt,usiiatit, utficial US bagKiny. it is true Inat
considerable tra:s. in .:necyy equipment con riu.+ ?lu tut.+aLJ unJei
out controls, and Jai; ettorts to expand nervy ey,iipiaent.
controls are pte!,ently dormant. Noweverl our quiet
acquiescence in nt>!--st ratr.iic, non-for n-policy-control It
trade is much more undo:standanle to our allies than would;~e
t?ie puolic launzn.ng by: our government of a trade prom(,)t jon l
NTLAL.
R
Declassified in Part - Sanitized Copy Approved for Release 2011/11/30: CIA-RDP93T01142R000100160008-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/11/30: CIA-RDP93T01142R000100160008-8 ..
Cu:.? : DENT 1 A:.
jori'l
==effort to this a:es. Alt:,ough official USG supiort tot energy
equipment sales wi":1d tie .+e:: ?~red oy the Soviets, it would
.,;;,,convey to them the iiptession of inconsistency and confusion on
---Out part. finally, the export of Soviet energy long has been a
""key cornerstone of Soviet foreign policy, and we are still
"'using UN, OECD and other tots to resist Soviet -n-atiatives tot
broader energy cooperation in Eutoie. U.S. ptumotion of
energy-related trade would therefute iaply a tettlinKinq of -1S
policy in mulitateral and energy ateas.
=
-= roe these reasons, option 1 in sot) Mortis' memo of July 13
doft
+ Is the appropriate course of action; i.e., that we will exa,ai.ne
011
'-license requests on controlled items on a case-uy-~_asr Nayii,
askollw
. consistent witn C JM and puhl-sh.A fnr'tgn &%nlicy controls.
'='Additiortally, it we decide tom. be more forthcoming on Soviet -
proposa-;s in this area, we could of -ti, exprd?ite an
ut t iciil
;.-review 91-whetnet particu-lat=So-vier Truposals would run afoul
of controls. ;:-e U.S. controls wrtr *e,e:iaustivrlf revirWe .! iii
t=our tecgnt metao to you (TAB 3).
now-,
Option 1, ?associate ourselves overtly witn a pcesumea
Soviet desire tO -,aKe exl-anJeJ time in licensaule oil and gas
equiprr.ent one of tnd :Hain results of tt-e lC~aanl,:?..-ul -a~?t ti.i
has the atoad policy snuttcosings we nave noted. any
industrial field for cooperation ..' lJ bv treater, ex.:eNi
conspicuously tut ele,-ttoni.:s 411,3 a rat ioA. Toe v;)tion i
apprnacn (it pr ividin-j some level of ottical pcoi,vC,411 ".,l 4. .:.
trade, in exc:ia:1?jr t,.it Soviet ptJnOtlon u a U.S.
goal, also aee'.t8 not to t'tecit turtr:er ex,) utat iOn. S?/.)Ill t. e
drawtiark$ of enact lY r,luaa~nrnt,'tr.:-n~lvy~ 6Vl?-v1401) a-a LAIC
Soviet tuat*et, at w.-%alJ l.r vety clrtftcuit tit -.-teia Sy'-.i.re.
In the cranelo liven, we w;,jld .xport U;; necyf v?1.1-Y:-.rut ai ~vr
could also exhort agricultural equipment;seven it this
asymmetry were ney.-t isole, tar U5 9ovvrri.4nt etas ii:tlt:
Capacity to 011k;11146401 1acn l?t i va, a s.?.'t nr t rade-ot t s.
Ambassador Morris' earlier, July 2 :asmocandum requested
evaluation ut ?Nus i ulc :,owlet interest in largt-scale, nign i
..visible purchases' in the oil and gas rtect:o[. Any large sca r
project in which we would be a principal pacticipac-t is extremely likely to involve at least some export- controlled
equipment and tecanuluyy. Official oacccing of such a project
would put pressure on ourselves to ease licensing for the
'show- prO3ect, pressure which the Soviets would prvsumably be
willing to aggravate by ce?Iuescs tot ins Most, advanced
technologies. La:,ir scale, hignlj visible U.S. participatiofl
Cotir IDENTIAL
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I Declassified in Part - Sanitized Copy Approved for Release 2011/11/30: CIA-RDP93TO1142R000100160008-8
 Declassified in Part - Sanitized Copy Approved for Release 2011/11/30: CIA-RDP93T01142R000100160008-8
CONFIDENTIAL
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