SIXTH ANNUAL PROGRESS REPORT TO THE IAC OF THE ECONOMIC INTELLIGENCE COMMITTEE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61-00549R000100050008-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 22, 2016
• Document Release Date: November 6, 2012
• Sequence Number: 8
• Publication Date: October 1, 1957
• Content Type: REPORT

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ETC-D-250
SIXTH ANNUAL PROGRESS REPORT TO THE IAC
OF THE
ECONOMIC INTELLIGENCE COMMITTEE
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TA %X_0?_ 1N
'rincipai Developments in Econalliic
intelligence Coordin ,tion
It. ETC Accomplishments in Fiscal Year 1957
III. PutUre Outlook .
TAB A. Organizational Chart of the Ecori.omic
':Intelligence Committee
TAB B. Economic Intelligence Committee Production
and Sp6cisl Activities, Fiscal Year 1956/57
(Chart)
TAB C Economic' Intelligence Committee Production
and Special Activities, 1 July-1956 to
.30-June 1957
ANNEX 1 -.External Economic Research Projects
Reviewed by the EIC During
Fiscal Year 1957
?mge
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R EE T
SIXTH ANNUAL PROGRESS REPORT TO THE IAC
OF THE
ECONOMIC INTELLIGENCE COMMITTEE
JULY 1956 - JtJRE 1957
I. Principal Developments in Economic Intelligence Coordination
During Fiscal Year 1957 economic intelligence activities within the US
Government continued to be focused largely on the Sino-Soviet Bloc, and to
an increasing extent on Bloc economic activities in Free World countries.
The Economic Intelligence Committee supported these activities by publishing
coordinated reports, and by reviewing the current status of economic intelli-
gence research as a guide for programming by the individual agencies.
Coordinated reports issued during the year included studies of Communist
China's trade and transport; Sino-Soviet Bloc economic activities in under-
developed areas; copper exports to the Sino-Soviet Bloc, and other subjects.
General surveys of economic intelligence research within the US Government
and in selected were issue 25X1
as well as a special survey relating to the A revised25X6
statement of "Priority National Economic Intelligence Objectives" for guidance
in economic intelligence collection and production was prepared. EIC Sub-
committees continued to provide technical advice and suggestions to the IAC
Ad Hoc Committee on Exchanges. At the end of the year, major reports in
progress included studies of Bloc economic activities in underdeveloped areas,
Communist China's 1956 trade and transport, Soviet agricultural prospects,
capabilities of the Trans-Siberian Railroad, and Sino-Soviet Bloc peacetime
military petroleum consumption. New surveys relating to the status of economic
intelligence research within the government were underway or in a planning
stage.
II. EIC Accomplishments in Fiscal Year 1957
A. Major Studies and Related Support Activities
During FY 1957 the EIC produced coordinated studies on a number of
different problems as follows:
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1. Three reports on Sino-Soviet Bloc economic activities in under-
developed areas were published: EIC-R-11+, Sino-Soviet Bloc Postwar Economic
Activities in Underdeveloped Areas, which was a background report on such
activities in the postwar'period through April 1956; and two periodic
supplements thereto, EIC-Rl4-Sl and -S2, Sino-Soviet Bloc Economic Activities
in Underdeveloped Areas covering the periods 1 May - 31 August 1956 and
1 September - 31 December 1956. These reports provided periodic summaries
and analytical interpretations of significant developments in the economic
relations of Sino-Soviet Bloc countries with the underdeveloped countries of
the Free World. In addition, the EIC Working Group on Sino-Soviet Bloc
Economic Activities in Underdeveloped Areas published 26 Biweekly Reports
covering these developments on a current, factual basis. The Working Group
also published a chronological index of all items reported in the Biweekly
Reports during the period 23 February 1956 through 24 December 1956.
EIC-R14-S3, covering the period 1 January through 30 June 1957, was in prepa-
ration at the end of the year, and was published during August 1957. Some
500 copies of each of the biweekly reports and 600 of the R14 report series
are currently distributed to US Government offices in Washington'and overseas,
and to selected . The response
to these reports from policy-making officials in Washington and operating
officials in the field has been highly favorable. 25X1
25X1
25X1 2. EIC-Rl-S5, the sixth EIC report on Communist China's trade and
transport, covering 1955, was published as a US unilateral report, after a
joint 0 conference on the subject in in June 1956. A report
covering Communist China's 1956 trade and transport was nearing completion at
the end of the year.
3. Other studies undertaken or reviewed by the EIC included: a
report on copper exports to the Sino-Soviet Bloc in 1955; review of a contri-
bution to SNIE 11-10-56, Soviet Actions in the Middle East; review of a
contribution to NIE 11-57, Sino-Soviet Bloc Air Defense Capabilities through
Mid-1962, covering the economic aspects and implications of the air defense
program; and a contribution on economic intelligence for use by the IAC in
its Annual Report to the National Security Council on the Status of the
Foreign Intelligence Program. An EIC subcommittee coordinated and published
a working paper on Estimate of the Industrial Capability of the USSR to
Produce Submarines under Industrial Mobilization Program.
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B. Review of Research and Support of Research Programming
1. During the year the EIC published two major surveys as follows:
Survey Listing of Internal and External Economic Research Projects on
Selected Non-Bloc Areas, 1 January 1955 - 30 June 1956; and Survey Listing
of Internal and External Economic Research Projects on the Sino-Soviet Bloc,
1 January 1956 - 30 November 1956. These surveys covered projects, in
progress or completed, throughout the US Government and in selected 25X1
during the periods indicated. The25X1
non-Bloc survey covered Free World areas where significant Bloc economic
penetration activities have been noted or may be expected. In September 1956
the EIC published a special survey listing available economic intelligence
research and reports related to issues25X6
2. A survey of priority deficiencies in research on.Sino-Soviet Bloc
shipbuilding was approved and published, with suggested allocation of responsi-
bilities for undertaking required research; 10 other surveys of priority
deficiencies in research or collection were in preparation at the end of the
year. A review of approved surveys of priority deficiencies in research has
been undertaken by the subcommittees involved, taking into account progress
made in filling identified research deficiencies and need for changes in the
priorities previously assigned.
3. In accordance with the standing provisions of DCID 15/1, 8
proposed external economic research projects which individually involve more
than $5,000, were reviewed by the EIC during FY 1957. EIC comments and
suggestions were forwarded to the sponsoring agencies for their guidance.
11. An EIC subcommittee coordinated and published as a research aid
a List of Key Personnel Concerned with Research and Production in the Electro-
technical Industry of the USSR.
C. Improvement of Collection Requirements and Other Support for
Collection Activities
1. The Subcommittee on Requirements and Facilities for Collation
continued as the focus for a number of community-wide efforts to improve
collection requirements for economic information, and guidance for collection
Guidance Program, designed to remedy past problems, are now operating y U
efficiently under administrative arrangements instituted or concurred in by
the Requirements Subcommittee. 25X6
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20 This Subcommittee discussed: pertinent NIE post mortems
(recommending appropriate remedial action by the responsible agencies);
foreign service economic reporting; proposed changes in Comprehensive
Economic Reporting Program procedures; and the intelligence potential of
exchanges of delegations between the West and Bloc countries.
D. Other Activities
1. Technical Advice on Exchange Proposals
The IAC Ad Hoc Committee on Exchanges continued to call on
members of EIC subcommittees for technical advice and suggestions in
connection with proposed visits of Bloc experts to the US, and of US experts
to the Soviet Bloc. Eight EIC subcommittees have been consulted with respect
to one or more specific exchanges, and detailed responses provided.
2. Support of National Intelligence Estimates
In addition to the preparation of coordinated contributions to
NIE's as indicated above, NIE post mortems and validity studies were drawn on
for guidance to the community. The economic portions of the Post Mortems on
NIE 11-5-55, Air Defense of the Sino-Soviet Bloc, 1955-60 and NIE 13-56,
Chinese Communist Capabilities and Probable Courses of Action through 1960
were considered by the appropriate EIC subcommittees. Five additional post
.mortems and four validity studies were forwarded to the appropriate EIC sub-
committees and working groups for their information and guidance.
3. Priority National Economic Intelligence Objectives
In August 1956, the EIC issued the first statement of "Priority
National Economic Intelligence Objectives" as a guide for economic intelli-
gence collection and production, identifying and expanding the economic
aspects of DCID 4/5, "Priority National Intelligence Objectives". With the
approval of DCID 4/6, the statement of "Priority National Economic Intelli-
gence Objectives" was revised. This revision had been submitted for IAC
consideration by the end of the year, and was approved in August 1957-
4. Miscellaneous Subcommittee and Working Group Activities
a. Where feasible, the EIC subcommittees continued the develop-
ment and maintenance of agreed basic statistics in their respective fields of
responsibility. A number of subcommittees discussed important substantive
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papers, and explored methods used in their research. The Petroleum Sub-
committee, with the approval of the EIC, undertook an up-dating of its
study of peacetime Sino-Soviet Bloc military consumption of petroleum
products. The Subcommittee on Electronics and Telecommunications published
one research aid, and had several in preparation. The Subcommittees on
Shipbuilding and on Transportation have made major progress toward the
development of agreed research methods. The full-time interagency Trans-
portation Capabilities Estimates Group, established in April 1956,
sponsored by the Department of the Army and reporting to the Transportation
Subcommittee as well as the sponsoring agency, completed an estimate of the
capabilities of the Trans-Siberian Railroad. This estimate is being
considered by the participating agencies in an effort to reach community
agreement on the subject.
b. During the year the EIC undertook a systematic review of the
activities of its subcommittees, with a view to developing constructive pro-
posals for strengthening subcommittees which were encountering special
problems or were less effective than had been anticipated when they were
established. This review will continue during FY 1958. Special problems of
individual subcommittee operations were noted, and agreement reached as to
the scope of activity for the subcommittees considered. It was recognized
that the individual subcommittees play somewhat differing roles in the
coordination of economic intelligence because of the special situations and
problems confronting them.
III. Future Outlook
As the EIC enters its seventh year of community-wide coordination of
economic intelligence, no particular problems appear to call for special
emphasis. It may be expected that future activities will continue generally
along present lines. Coordination of economic intelligence on the Sino-
Soviet Bloc and on Bloc economic activities in Free World countries --
particularly the underdeveloped countries -- will continue. As international
developments warrant, there will be important shifts in emphasis with respect
to economic intelligence relating to US national security interests in Free
World areas. At the end of the year EIC member agencies were considering
utilization of the EIC mechanism for coordination of an increasing number of
non-Bloc economic intelligence problems where ce' inated activity would be
desirable. 25X1
OTTO E. GIOM
Chairman
Economic Intelligence Committee
S-E-C-R-E-T
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ECONOMIC IN''ELLIGENCE COMMITTEE
PRODUCTION AND SPECIAL ACTIVITIES
Fiscal Year 1956/57
REQUIREMENTS
SUBCOMMITTEE
Support and Guidance to Economic
Reporting Guidance Program
Development of Procedures for
Correcting Priority Collection Deficiencies
Exchange of Collection and
Interrogation Manuals
R1 S5
Communist China's Imports and Exports,
1955: Trade and Transport Involved
Review of the
State of Finished Intelligence
Sino-Soviet Bloc Postwar Economic
R-14
Activities in Underdeveloped Areas
REVIEW OF
Consideration of NIE Post-Mortems
(Thrqugh April 1956)
PROGRAMS AND FACILITIES
and Validity Studies
Sino-Soviet Bloc Economic Activities
Internal and External Go
t
l
EIC REPORTS
R14-S1
in Underdeveloped Areas
vernmen
a
Review of Substantive Papers
,
1 May through 31 August 1956
LISTINGS OF
Research on Selected Non-Bloc Areas,
and Methodologies
COMPLETED AND
1 January 1955 through 30 June 1956
SUBSTANTIVE
Sino-Soviet Bloc Economic Activities
PLANNED ECONOMIC
SUBCOMMITTEES
R14-32
in Underdeveloped Areas,
RESEARCH
Internal and External Governmental
1 September through 31 December 1956
Research on the Sino-Soviet Bloc,
1 January through 30 November 1956
P-16
WORKING GROUP 1 WGR 1/11
REPORTS ll thru 1,36
EIC CONTRIBUTIONS
TO INTELLIGENCE
STUDIES
SUBCOMMITTEE SSC-WP1
WORKING PAPER
Copper Exports to the Sino-Soviet Bloc
in 1955
SIC Working Group Biweekly Reports
on Sino-Soviet Bloc Economic Activities
in Underdeveloped Areas
Contribution to NIE 11-57, "Sino-Soviet
Blue Air Defense Capabilities
through Mid-1962" (Review)
Contribution to SNIE 11-i"6, "Soviet
Actions in the Middle East" (Review)
Estimate of the Industrial Capability of
the USSR to Produce Submarines Under
Industrial Mobilization Program
SUBCOMMITTEE
RESEARCH AID
IDENTIFICATION OF r
PRIORITY RESEARCH S S-1/13
DEFICIENCIES L
Priority National Economic Intelligence
Objectives (IAC-D-50/10.1)
Priority National Economic Intelligence
25X 'iectives (IAC-D-50/10.2)
X6 (In Progress)
List of Key Personnel Concerned with
Research and Production in the
Electroteehnical Industry of the USSR
Review of Proposed External
Research Projects
Technical Advice to IAC Ad Hoe
Committee on Exchanges
Preparation of Reports on Sino-Soviet
Bloc Economic Activities in
Underdeveloped Areas
Preparation of Reports on
Communist China's Trade and Transport
Preparation of Studies by
Transportation Capabilities Estimates
Group (ACSI sponsored)
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TAB C
I. Re ortz andpSaecs.
A. Completed
EIC Designations
EIC-RI-S5
ETC-WGR-111.
through.1/36
EIC-',p,-WP-1
EIC PRODUCTION AND SPECIAL ACTIVITIES,
a_ Jul: ,_y 1956 to 30 June 1957
Communist China's Imports and Exports,
1955: Trade and Transport Involved
Sino-Soviet Bloc Postwar Economic
Activities in Underdeveloped Areas
(through April 1956)
Sino ko,viet Bloc Economic Activities
ig. Underdeveloped Areas, May
31 August 1956
Sino-Soviet Bloc Economic activities
in Underdeveloped Areas, 1 September -
31 December -1.956
Copper Exports to the Sino-Soviet Bloc
in 1955
EIC Working Group Biweekly Reports on
Sino-Soviet Bloc Economic 4ctivities
in Underdeveloped, Areas
Index of Biweekly Reports on Sino-
Soviet Bloc Economic Activities in
.Underdeveloped Areas, 3-956
Estimate of the Industrial Capability
of the USSR, to Produce Submarines.
under Industrial Mobilization Program
Requestor
IAC
Special Assistant to
the President for
Foreign Economic
Policy
Special Assistant to
the President for
Foreign Economic
Policy
Special .Assistant to
the President for
Foreign Economic
Policy
State Department
Special Assistant to
the President for
Foreign Economic
Policy
EIC Subcommittee on
Shipbuilding
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TAB C
I. Reports and.Special Studies (Continued)
B. In,Progress
EIC Designation Title
EIC-fl-S6 Communist China's Imports and Exports,
1956.. Trade and Transport Involved
EIC-R-14
Series
Sino-Soviet Bloc Economic Activities
in Underdeveloped Areas
EIC-WGR-1/
Series
EIC-R9-S1
SIG-P-8
EIC-P-19
Cancelled.
EI.C-p-6 _ . .
EIC Working Group Biweekly Reports on
Sino-Soviet Bloc Economic Activities
in Underdeveloped Areas
Capability of the Trans-Siberian
Railroad and. Connecting. Lines in.
Manchuria and Korea (Revision of
EIC-R-9)
Soviet Bloc's 1955-56 Military Trans-
portation Capability to Launch and
Support Campaigns into the Area
between the Baltic Sea and the Alps
Policies, Performances and Prospects
of Soviet Agriculture
Military -Consumption of Petroleum. .
Products, Sino-Soviet Bloc, 1956 and
Forecast for 1957 (Up-dating of
EIG-PSC-WP-l)
Economic Capabilities of the Soviet
Bloc to Support a General War under
Certain Assumptions
-9-
S-E-C-R-E-T
Requestor
IAC
Special Assistant to
the President for
Foreign Economic
Policy
Special Assistant
the President for
Foreign Economic
Policy
HIC
WSEG through IAC
State Department
EIC Subcommittee