Document Number (FOIA) /ESDN (CREST):
CIA-RDP82-00283R000200210049-0
Body:
Approvedm&br Release 2001/09/03: CIA.-RDP82- 3R000
control No. 4349
E L'C-D-633
1 November 1966
F!oON0M_1 t y +STEL s T GENT E COMI I:TTZE
NSA & DIA Declassification/Release Instructions on File.
MIMORANDOM FOR; Members of the Economic Intelligence Committee
S~sYT~ Department of the Air Force Proposal for Tasking
E10 Subcommittee with Monitoring the Uses of
Economic Intelligence in Military Planning
lbcuments
1. You will recall that during course of EIC review of its
structure, the Department of the r F roe member proposed a new
.ubcommittee to be charged with mo i ring the uses of ec
mi
i
ono
c
n
-
telligence in planning documents. icuiaar y those
it
w
i
m
litary planning. The objective d be to insure the adequacy
of the reporting on the reliabilit
d validi `cost data on
that the methodology used meets onsumer needs.
avu
e chairman, .C, referred this matter' for eonsi4eration to
the USTB Ad Hoc Working Group on Soviet Military Expenditures for NIPP.
The Working Group, presently consisting of representatives from the
Departments of State and the Air Force, the Defense Intelligence Agency,
the NationRl Security Agency, and the Central Intelligence Agency, have
now submitted comments on this proposal.
During the review, the group heard reports on how foreign
weapon costs and other foreign economic data have been used in defense
studies and planning documents. Certain cases were noted where
economic intelligence apparently had been used without de regard to
its confidence limits or reliability. In a number of these cases the
misunderstandings may have resulted from inadequacies in the statements
of confidence and reliability. Other cases were noted where the
particular analytical technique utilized by consumers is subject to
criticism, rather than reflecting the questionable accuracy of the
data being used.
4. The Working Group believes that it would be inappropriate
for the EIC to attempt to monitor all publications and studies pre-
pared by the DOD or other departments or contractors which utilize
economic intelligence. The physical magnitude of the task alone
would probably make such an effort Impractical. The matter l~
is essentially one of the
interface between intelligence and planning within the various
departments. Misinterpretations of military economic intelligence
in planing are most likely to occur in policy documents that are not
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Approved For Release 2001/09/03 : CIA-
GROUP T
Excluded from automatic down-
tion
Approved- Release 2001/09/03 CIA-RDP82-0W3R000200210049-0
subject to review by - and are typically not available to - the EIC.
Also, because the EIC-responsibility lies primarily in the area of
economic intelligence, in many instances it would not be the most
appropriate body to review these military publications.
in reduci
e Working Group believes that the
that confiden
$interpretations of econo
evels and analytical
sufficient detail
Working
a. the RIC! not eat'
to monitor the uses of a mie
planning or policy des nta;
C can be of assistance
intelligence by ensuring
hods be presented li
ity and limitations of the data
up recommends that:
a subcommittee or working group
telligence reports in military
b. the member agencies take appropriate steps to ensures at
adequate information concerning limitations of the data and methodology
used is given in economic intelligence studies, and
r. any EIC member who believes that economic intelligence has
been used without due attention to its limitations in a planning or
policy document be encouraged to bring the instance to the attention
of the EIC. The IC_, in turn, will take whatever action its member-
ship deems appropriate on an ad hoc basis.
6. Members are requested to review the recommendations set forth
in p-'J., above, and indicate their comments or concurrence to the
EIG' Secretariat, Code 143, extension 5021 by close of business
25 November, 1966.
7. If the EIC members concur, the Chairman will prepare a response
reflecting the views in pares s to Major General Thomas, USAF.
CA - la-
%25/et
make the reli