DIVERSION CONTROL NET MEETING - 2 FEBRUARY 1954

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-00328A000200160040-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 12, 2016
• Document Release Date: March 20, 2000
• Sequence Number: 40
• Publication Date: February 3, 1954
• Content Type: REPORT

AC'f
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3 February 1954
Diversion Control Net Meeting - 2 February 1954
Present: Tillson, Knoll, Coster and Farrell
A. The subject of the correlation of cases by the DCN was presented
and reference was made to lists previously compiled by CIA. The question
was presented as to whether further action had been taken on this list par-
ticularly in regard to reducing the information to cards. The reply was
made that this was still in the formative stage and was being considered and
worked on, that this represented a considerable volume of work of a secre-
tarial nature and also reworking the cases to provide source information.
All present agreed that a single source reference would be sufficient on
past cases and that new cases initiated could perhaps contain more complete
source material. It was suggested that something be done to push forward
the action aspect of the DCN operation and the following was agreed:
1. Mr. Tillson would prepare an agenda for cases to be discussed
at each meeting and this agenda would be distributed not later than Friday
preceeding the meeting. Anyone of the members having a case to be discussed
would submit this information to Mr. Tillson prior to that date. This
would not preclude discussion on other cases not submitted. Discretion
should be used to present only those cases most needful of consultation as
time is a limiting factor on the number of cases that can be discussed.
2. It was suggested and agreed that Mr. Knoll would check his
list of 57 cases currently carried and eliminate those which do not appear
to be current. He will then advise CIA of the oases which he considers
current in order that CIA may correlate their cases with his. This list
would then be discussed (perhaps at a seperate meeting) and those believed
by the group to be sufficiently important to be followed would be numbered
and represent the nucleus of the DON correlation of cases.
B. Mr. Tillson stated that consideration should be given to estab-
lishing a method for reporting to the Executive Committee. He suggested
that his secretary keep a current form with each case showing the progress
of the case and requested each member to give thought to the format to be
used.
The request was made that Mr. Knoll and Mr. Coster provide CIA
with information as to the action taken on material submitted to them by
CIA as evidenced by lists which had been provided them. Mr. Knoll said
that he would provide this information. It was requested that this be
available by next meeting at the latest.
C. The subject of the advisability of a study being made of materi-
als (IL 2 and lower) sent to the Bloc (Gdynia) and from there being redi-
rected to China was discussed. Apparently adequate information is available
on this from shipping information in. Antwerp and intercepts in Bonn (?).
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Suggestion was made that it be presented to IWG for action. No decision
was reached on this other than that it was not a direct problem of the
DCN.
D. The three cases tabled at the previous meeting were discussed.
Case a. concerning report of US goods unloaded at Fiume (Rijecka) for the
Bloc was reported on by Mr. Coster who stated the source of the report was
being checked for further and more definite information. Nothing further
was reported on the other two cases.
E. Three copper cases and one tank motors and spare parts case on
which Mr. Coster had requested consultation with CIA were discussed. De-
cisions were reached as to our action on the three copper cases which
information has been given to
25X1A9a
The tank motor and spare parts case which Mr. Coster had been
25X1A9a following relative to SREM Italy was augmented considerably with infor-
mation which CIA had developed relative to Travnicek, Rome;
Hector M.,acNeal & Co., London and Zurich; and Rudolf Schmid, Zurich
manager of MacNeal. Appropriate references were given to Mr. Coster who 25X1A6a
25X1A9a requested the clearance of a CS relative to this Mr. Coster
requested that - consult with him on this case after he (Coster)
had secured the referenced material. He will call - to arrange
a meeting. 25X1 Aga
The discussion of the copper cases which were all PD information
brought out the following questions which were discussed at some length.
1. What action can overseas agencies take when they receive
material classified Information - US Officials Only and Investigation -
US Officials Only. It was the opinion of Mr. Coster that the phrase
US Officials Only precluded the possibility of State officials overseas
taking any great degree of effective action even although Investigation
is stipulated. Can they contact the foreign governments when that phrase
is appended? Can they refer to names mentioned in the information and
the details of the transaction when refeni.ng to foreign governments?
When referring to sources other than governmental? It was hoped that some
further explanation of the liberties that may be taken with information
so classified could be evolved.
2. ?Definition of what investigations should be undertaken by
CAS and what by State. When a PD or other CIA communication is received
and further information is desired concerning a name mentioned An the 25X1A
communication should it be requested through- State?
25X10 3. What information can be provided thru ONI. Can ONI be used
to secure It was presented 25X1 C
that this might be a faster and more appropriate (in the case of Chile for
25X10 exam le) way of securing this information. Can ONI secure
at the Panama Canal? If not could it be arranged? Mr. Coster
suggested that collection of this information relative to copper on a
routine basis would provide a valuable compilation of copper going to
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Nord Deutsche refinery and this compared with their reported output would
provide a;valuable check on possible diversion. Mr. Coster believed that
Mr. Hunter had done this sort of thing before and questioned whether he
at present collects this information routinely.
4. It was suggested that if it met with CIA approval it would
be valuable to include in our letters of transmittal of PD information
such questions as might appear to us to be important to direct to the field.
These could be phrased as suggestions. All present agreed that this would
be very helpful.
5. It was suggested that it might be possible to discuss the
advisability of further dissemination of CAS information in the DCN meet-
ings before undergoing the clearance problem and clerical work necessary
if this would be of assistance to CIA and could be arranged.
F. Mr. Coster and Mr. Knoll discussed at some length the necessity
for being very selective in the cases to be followed. Their problem is
the apparent one (which we will also undoubtedly face if we are not al-
ready facing it) of only having so many hands. They feel that they are
faced with the practical necessity of having solid well documented cases
to present as the output of this effort and hope to accomplish this
(miracle) by careful selection. It was my feeling that we are also to
follow the more nebulous cases until they put on weight or die of starva-
tion.
HGFARRELL:end
3 Feb 1954
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