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MEMORANDUM FOR: DIRECTOR OF CEth RAL INT ,lIGENCE
SPECIAL ASSISTANT, INTELLIGENCE, DEPARTMENT
OF STATE
ASSISTANT CHIEF OF STAFF, G-2, DEPARTMENT
OF THE AIMff
DIRECTOR OF NAVAL INTELLIGENCE, DEPARTMENT
OF THE NAVY
DIRECTOR OF INTELLIGENCE, HEADQUARTERS, UNITED
STATES AIR FORCE
DIRECTOR OF INTELLIGENCE, ATOMIC ENERGY
COMMISSION
DEPUTY DIRECTOR FOR INTELLIGENCE, THE JOINT STAFF
ASSISTANT TO THE DIRECTOR, FEDERAL BUREAU OF
INVESTIGATION
SUBJECT: Intelligence Deficiencies Revealed in SE-27
REFEF',ENCE: Memorandum from the Director of Central Intelligence,
dated 13 August 1952
(This memorandum covers economic
research and collection requirements)
Since receipt of the referenced memorandum, a series of actions have
been initiated through the Economic Intelligence Committee which I believe
will, in time, effectively correct the intelligence deficiencies in
research and collection requirements. I have outlined these actions below,
with specific reference to the responsible agency0
to COLLECTION I'tEQUIRIlUIENTSt
a, The State Department/ Intelligence Acq~zisition and Distribution
Division will prepare a new comprehensive economiv; rep-or
ting
guide for Hong Kong, This guide will be coordinated among the
TAC agencies through the Requirements Subcommittee of the BIC.,
and will note priorities for collections The Hong Kong guide,
which will also be used as a guide for reporting from other
peripheral areas such as Japan, is scheduled for completion
within the next two months.
bQ The State Department/ Intelligence Acquisition and Distribution
Division will, as an interim measur, provide copies of this
guide o other agencies for use in their respective programs,
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d. Representatives of the milita services on the Re uisementa
Subcommittee have considered the desirability of submitting
:heir =an ng collection requirements to that Subcommittee
for review and comment sometime before the end of the year,
All IAC agencies have generally agreed to do this with the
exception of the Air Force which still has the matter under
consideration,.
d, The CIA/ Officeof Research and Reports will prepare
t
comprehensive requiremen
s for 00/C on the Chinese Communist
economy and will submit these to the Requirements Subcommittee
for review by the IAC agencies. This will be accomplished
before the end of the year.
The CIA/ Office of Research and. Reports, in line with its
expanded r s arc responsibilities, will review the priority
intelligence targets for China which have been formulated by
the Intelligence Priorities Committee of the IAC.
RESEARCH:
b, The CIA/ Office of Research and Reports has undertaken to
inventoryie' r adl y avai-information on the Chinese
Communist economy, and to complete a summary study for the
major economic sections by 15 January 1953. The stepped-up
ORR program is being coordinated with the NIS program and with
the programs of other IAC agencies by means of a survey through
the EIC of the potential of the respective IAC agencies for
dealing with specific research gaps,. The EIC has constituted
an Interagency Coordinating Group to direct this survey and
advise on the development of an overall research program,
(Tab B)
Co. Pending the outcome of this survey, the CIA/ Office of Research
and Rets has initiated a greatly expanded research of orf t on
this-',- ea. 14 total of 22 research projects directly focused on
Communist China have been programmed for the calendar year 1953,
as compared to about 5 in 1952. In addition, some 55 projects
,covering the entire Soviet Bloc will also include sections on
this area, (Tab C)
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d4 The CIA/ Office of Research and Reports has initiated the
following exterrial research projects which are to be
undertaken by the Center for International Studies (CENIS)
at MIT: (1) ItManchuria Today', (2) -'The Pattern of Economic
Development in Communist ChinaTt, and (3) The Manchurian
Railways,"rG
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GENE RA Ia
Filling the gaps on Chinese economic development and capability
which are most critical for national intelligence hinges on
linking an intensified effort on China with the already consid-
erable effort on the USSR, The problem is 7,ong-term, and the
research program being developed to meet it must also be long'
terms Many of the final answers to the general deficiencies
noted in the post-mortem on SE-27 will not be immediately
forthcoming, but it is believed confidently that the coming year
will bring a marked improvement in economic intelligence support
to national estimates on China.
ROBERT s 9 0
Chairman
Economic Intelligence' Committee
5ME-C-R-E-T
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