MILITARY-ECONOMIC INTELLIGENCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01495R000900050018-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: December 19, 2016
• Document Release Date: October 21, 2005
• Sequence Number: 18
• Publication Date: April 25, 1972
• Content Type: MF

Approved FqRelease 2005/11/23 : CIA-RDP80BO14ZR000900050018-2
Approved For Release 2005/11/23 : CIA-RDP80BO1495R000900050018-2
 Approved For Re e 2005/11/23 CIA-RDP80B01495ROQM00050018-2
2 5 APR a/
MEMORANDUM FOR: Lt. Cc iew dd Do xa.d. V. Ec, .L : t' USA
Dire cwor DeZoc'aso Intel . geace A eucy
i";;wgCi'"xC:l?
SUBJECT Mil.t;t.3'~ Y 3
1. As you Lnow, a a viz ber of ~.te z have boon taken to
'~s of S A?t."a ; p?c
review c"l~k.~aspects s.:,C cwv.1 ..~a.,:70u1J.Y.v Military-c- .t~~,?~?:Y~iliiC analyses
+' ,~st J., r"od 9 gyn.'",, ` c.oncovil on J^5..7...~ :C~ A, i~ t. . 1'^.
.`" e you ZYr iais yo:a., cL,G suaja ~.Y lc1 : ~,.1LO
Mc
nicoting of 2 March. i^he m ostr w ocent ac6ion 1.hat L iniViate4M
was to a :k the CZA. Deputy rector fe ; T"aC,~~1f'ence a d M' c`cc o
to establish a C7T:Y71O....1 panel Gi i!. eaTT Oi.ib.a Cic
the Gov'ern'm er t. Tats panel will s ev .ew thoroughly ho ava'i. ab.IIo'
data, procedures 4rA fi,ys and and [*?q.^r"- n's n ii.x,'rA it Y'flise me 0 ~?.~,..,wi`ll
y ~1 Cir ,.S.i ~..Cl generally o.-"6
1. ..
military-economic intolligence
2. 1 believe v.fi".t 1~. 1. ?a. is ~. u.~ sJ1rLl~Y "MN ,.i^q.G to ztL~~~:: p ~r ite
[~ y~~ t~LG~~. ~t 4~'/ ~.,iVii"~~ \j~,~J4,4
lin-Aed in size (say. N,AV eICI'-Id to ) fY.~! ?V .S d` a .l.y' IL .l.,,
all ?y, the 2 /!~ relevant ir y;~noi~.14a^i. . don ~.^'~wyiAlr t ~.Y . hinL1 irL ~.~ an to t? - ikk w tgha~. such a gJ oup
to all ?M
will be able to ,function e ctiv .j ales.; it is fully cleared for
all of our in ow inxtnon on Sovt.Ct nul 4ary forces a n.a rJrog a iz: .
;T3jJro iate 4:~:7di u: os
When 2d Proctor has assemblod a list of
for this panel, he will be kn to'uch with you to discuss any 4iCi;Wkenc
no3'Y'iinatio if you may wish to
S. I appreciate your In ,ea es~: in the s ix 110ortant intelligence
question and will keel you Jos ed on G ovelo merits.
wichard n elrns
l irecto~:
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 Approved F Release 2005/11/23: CIA-RDP80BO1 5R000900050018-2
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 Approved For Relese 2005/11/23: CIA-RDP80BO1495R09000050018-2
CENTRAL INTELLIGENCE AGENCY
WASHINGTON, D.C. 20505
OFFICE OF THE DIRECTOR
This is to confirm the earlier conversation
you had with Ed Proctor concerning the establish-
ment of a Military-Economic Advisory Panel with
you serving as chairman. I would like the Panel
to advise me and the other members of the United
States Intelligence Board on questions concerning
our analysis and reporting of defense spending in
Communist countries. Your professional standing
and personal contributions to many aspects of
Soviet economics assure me that you are the right
man to direct this consultative effort.
Ed Proctor will get in touch with you again
concerning the other members of the Panel and to
work out the details for the first meeting.
I would appreciate a brief reply affirming
your availability for this important activity.
Sincerely,
Richard Helms
Director
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 Approved FRelease 2005/11/23: CIA-RDP80BO~4R000900050018-2
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 Approved For Relea 2005/11/23 CIA D'PBOB01495RO090050018-2
CENTRAL INTELLIGENCE AGENCY
WASHINGTON, D.C. 20505
OFFICE OF THE DIRECTOR
MEMORANDUM FOR: Vice Admiral Vincent P. de Poix, USN
Director, Defense Intelligence
Agency
SUBJECTS Establishment of a Military-
Economic Advisory Panel
1. Earlier this year I informed General
Bennett of my intention to form a Military-Eco-
nomic Advisory Panel to advise me on military
economic analysis in the intelligence community.
A copy of my memorandum to General Bennett is
attached.
2. I have selected 25X1
Chairman of the De artmen o Economics at
to chair the Panel. Dr.
is a recognized expert in the field of
Soviet economics. He has indicated his willing-
ness to lead a group of specialists in a review
of intelligence data and methodologies used in
analysis of foreign military spending and the
adequacy of that analysis for senior policy
makers. He will be given access to all rele-
vant data and past studies, including Comint
and Talent-Keyhole materials.
3. The Panel will function under the general
direction of CIA's Deputy Director for Intelli-
gence, Ed Proctor. He will now move to fill out
the Panel's membership, and will be in touch with
you on this matter, as I indicated in my memorandum
to General Bennett.
Richard Helms
Director
Attachment:
Memorandum to Director,
DIA dated 25 April 1972
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25X1
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^ ,UDI-?32 -7,
MEMORANDUM FOR: Director of Central Intelligence
SUBJECT Employment of I
1. This memorandum submits a request for your
approval. The request is contained in paragraph
six.
2. I recommend the services of
be obtained as a paid consultant to chair
the DCI Military-Economic Advisory Panel. Dr.
Chairman of the Department of Economics
He has been a specialist
in the Soviet economy for over 25 years and is a
recognized expert in the field.
3. The DCI Military-Economic Advisory Panel,
which would chair, was described in a
memorandum you sent to General Bennett on 25 April,
after the difficulties we experienced with DIA on
the cost annex to NIE 11-4-72. A copy of this
memorandum is forwarded as Attachment A.
Top Secret clearance has been obtained
for He will also be briefed for SI
and TK materials when he begins his consultative
duties.
5. is
aware that s being considered for
employment by the Agency in the capacity stated,
and he has no objections.
25X1
25X1
25X1
25X1
25X1
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6. I,= is recommended that approval be granted
to employ I Fr as an intermittent
pa-i_d consultant at a rate of $127.92 per day.
Attachment B is a letter toF _j for your
signature, formally requesting his services.
Attachment C is a memorandum to notify Admiral_
de Poix of your action and to advise him of sub-
secuent steps in the formation of the Panel.
EDWARD W. PROCTOR
Deputy Director for Intelligence
Attachments:
Tab
A:
Memorandum from DCI
to
DIA
dated 25 April 1972
Tab
B:
Letter
Tab
C:
Memorandum to
Admiral de Poix
'T'his action meets the policy requirements of
[recto, of Personnel
Date
Cleared for conflict of interest-
Subject to review of Forra 2553. which is to be filed at time of EOD.
:.:Lice 'ot Genera_ Counsel Date
The recommendation in paragraph six is approved.
Director a Central. Intelligence Date
25X1
25X1
25X1
25X1
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 Approved For Relea 2005/11/23 : CIA-RDP80B01495R00W0050018-2
Distribution:
Orig.
-- DCI
1
-- DDCI
1
-- ER
2
DDI
2
--
D/OSR
1
--
D/OP
1
--
OGC
1
--
D/OER
1
D/ONE
1
--
ADDS&T
1
--
D/DCS
OD:OSR 115 November 72)
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2 i A,,:) R I:.
MEMO .ANDUMVi FOR: Lt.. Ccyncw.i Do iaL,d V. .s ci2:zc ~raM
t~ v.
{X ec`GY"' ~w ~~yy S~51 R@ n 4j
w y l:. L.wiq;1~ ~4~.4 ~ 1.A ~. ~~~"t::LiUt?: 1.7L +eacy
5 1V :li4ax~y- irceaa.osx. c intelligence
1. As you knows a auz ibcz* of have been 4, k -an to
review all aspects o1.iw~..Z 4LZfr,}1..Xy. uL-X.0.: ,LC~IS'.l. 1, r~4 'Y-CC{, DA=1a6C 4 01a ly.S 3
since you first raised you-. concern on the subjec-L at tq ..,'..
meating o., 2 11.daarch. T i ~i +.hl:,`Y.,'C a '.,-.. i.:.Xu~;.L t ','i
%i, {, ~,i4 ` ; w}w it . a1.0.:41e" r
wa, to a:sk the CL- Deputy :L ; ecto: }o r i"'i ~i cuce, a Cd Proei:G.-i,
to establish a small panel of di sinz?eresLed e: ports from of idc
the Government. This panel will review thoroughly the ava .sable
data, y proceduroF:L and >^ t~- ~.~ l ' aieL Yvy +Ly4r r"10
q i ai4Y4,i .{. ~,A?i..L I.11~iJ i:~J ;SC,rr'? I. ~Y...i.,~,
imiltar y-economic ~i3 elligenc i1Y.u 44e a.
limited 2. yy1 believe that, it is essential to keep the fa.i ot, quit-0
I..
in size syy ]]I d (A:J+a,,;fY, A .4VV) ,Y ",,ad a~ 1, 4o ~L4 o ,-i.Y
of . ~V 9A4 Af'f yj. 4!}NA. ~'J l.4 L`~4~ full ^^`~ L:w1... ,,rr`r\r
to all V yy~~+~i ~ 9 ! A
tile relevant"lt~a C~'A i'12~!'4k oa. I do&a. `blink that such a C7u'
will be able to function of ec` ive y ~;zuC s it is fully cleared for
~
all o our i forma ` io n on .7OViet military forces and rog clli`~i:;i?
When Ed Proctor has r"i ,~ or has ss'""~..a