DRAFT NSC MEMORANDUM INDUSTRIAL SECURITY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP96B01172R000600020015-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 23, 2016
• Document Release Date: July 12, 2012
• Sequence Number: 15
• Publication Date: May 9, 1983
• Content Type: MF

Declassified and Approved For Release 2012/07/17: CIA-RDP96B01172R000600020015-9
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WASHINGTON. D.C. 20301
9 IAY 1983
MEMORANDUM FOR THE EXECUTIVE SECRETARY, INTERAGENCY GROUP/
COUNTERMEASURES
SUBJECT: Draft NSC Memorandum. Industrial Security
At the 14 April meeting of the IG/CM, it was agreed that-the
proposed national. policy statement in the area of industrial
security -- dealing with the ownership of U.S. firms by
foreign interests -- would.be placed in the form of an NSC
memorandum, rather than as an amendment to E.O. 12356 or ISOO
Directive. No. 1..
Accordingly,-the proposed memorandum has been prepared,
incorporating what had previously been agreed to by the IG/CM
without objection. Request that copies be provided IG/CM
members in advance- of the next meeting, so that this memorandum
may be considered for transmittal to the SIG-I.
L. Britt Snider
Director for Counterintelligence
and Security Policy
OSD Member
Attachment 1
Proposed Memorandum
Declassified and Approved For Release 2012/07/17: CIA-RDP96B01172R000600020015-9
 Declassified and Approved For Release 2012/07/17: CIA-RDP96B01172R000600020015-9
? SAY 1983
MEMORANDUM
SUBJECT: Safeguarding Clasiored Influenced by Foreign Interests
Owned, Controlled,
Investments by foreign companies and individuals in United States
firms are becoming increasingly prevalent. Some of these firms may
or have heretofore held, security clearances in
ld
h
l
,
o
y
current
connection with work performed under contract with the United States.
As a general.-rule, -class-if -ed information shall not be made available
to U.S.-indust-rial firms when the degree of ownership, control or
influence from a foreign source is such that a reasonable basis
exists for-concluding that compromise of such information is likely
to result. All departments and agencies which let contracts involving
U.S. classified information shall ensure through appropriate means
that this policy is adhered to and implemented in their contracting
procedures.
Unless otherwise
hold information
policy shall, on
precluded by law, departments and agencies which,
regarding U.S. firms that may be affected by this
request, provide other executive departments and
agencies information in their possession that is relevant to the
determination of foreign ownership, control or influence. Moreover,
a general and routine exchange of foreign' investment information is
encouraged in the interests of national security.
Nothing in this memorandum shall be interpreted to alter or modify
E.'O.' 10865 as amended, or intra-agency arrangements for industrial
security established pursuant to such order.
:;William P. Clark
Declassified and Approved For Release 2012/07/17: CIA-RDP96B01172R000600020015-9