Strategic List Review Program

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00662R000100160009-8
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 9, 2016
• Document Release Date: July 10, 2000
• Sequence Number: 9
• Publication Date: June 9, 1952
• Content Type: MEMO

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SECURITY INFORMATION
June 9, 1952
TO: Chairman and Members of OIT Inter-agency Technical Task
Groups
Ftloyl: Coordinator., Technical Task Group, Strategic Controls
Division, Office of-International Trade Ys
SUBJECT': Strategic List review Program
PART I
BACKGROUB
Since 1948 when the strategic control program was initiated by the
Department of Commerce, the work of technical task groups has been the
foundation on which the Department of Commerce has made its evaluation of
the importance of particular commoditie`s-to the war potential of the
Soviet Bloc. As a result of the extensive contributions by technicians
of the various U.S, agencies, it has been possible during this time for
the Department of Commerce to formulate specific and selective lists.
These lists of strategic commodities and the documentation supporting
action on individual items have also provided a basis on which U.S.
officials have been able to negotiate successfully with other governments
to obtain comparable control by them over the flow of goods to the Soviet
Bloc, In general, this attempt to obtain parallel action hhs been highly
successful in Western Europe, which is the primary area vhere such nego-
tiations occurred. However, full agreement has by no means been reached
on all U.S. listin6s, some of which have never bee'put up for negotiation.
At this particular point, therefore, in the overall attempt of the
U.S, Government to obtain more effective controls over the flow of goods
to'the Soviet Bloc it-is important that the U.S. Government review its
position on many of these items in the light of experience gained and
intelligence obtained since the initial actions were taken, It is also
necessary that certain additional types of technical investigation and
judgment be made in order to implement new policies and to meet new require-
ments in tha strategic control program which have since arisen, In
attempting to meet these needs we are again turning to the inteh-agency
technical task groups to.obtain from them the necessary technical recommen-
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1' SECURITY INFOREATION
PART II
O3 ECTIV.I,S OF TASK GROUP PROGRAM
The objective of the work program now being; assigned the technical
task groups is two-fold:
1. To review information now available concerning current
U.S, item listings for the purpose of:
(a) Establishing whether definitional or rating
changes are appropriate;
(b) Providing a full written statement on each
item for incorporation as part of a general-
techniczl.,manual now in preparation;
(c) Providing technical judgments with respect to
certain problems relating to parts and components;
(d) Correlating rated capital equipment and produc-
tion materials required. for the manufacture of other
rated commodities,' and,
(e) Providing technical recommendations for such- other
control action as
appears appropriate from such
review,
2. To review the production of strategic commodities in friendly
countries and their trade in such commodities with the Soviet
Bloc for the purpose of._
(a) Providing' a: technical basis' which may be. used by
this Govcr.nment in determining appropriate parallel
action control objectives, and,
(b) Providing the necessary analysis to permit implementa-
tion of U.S. policy on the export of strategic goods
to friendly countries. (See Program Determinatinn 810).
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4MOM SLCURITY INFORMATION
FART I I l
A'JIjIIIyISTPATIO ; OF TAS GROUPPROGRAM
Although from time to time numerous task groups have been created
for particular assignments a large number of these groups have been dor-
mant for a period. during which personnel working on these programs in
various agencies have chamged, To the extent that task groups currently
exist, these will be employed in the current work program although their
membership may be modified to provide greater agency coverage. The
general functions of the Coordinator, the Chairmen and members of the
task groups are set forth below,
1, Functions of the Coordinator: The Coordinator of the Technical
Task Groups, I r, Robert Reiss, will be responsible for the
following:
(a)
(b) To obtain from agencies the names of their repre-
sentatives for such task groups;,..
(c)
To determine where a task group must be established
and the agency membership thereof;
To be responsible centrally for contact with the
Department of Commerce security officers for ob-
tainir.g the necessary security clearances on all
members of the. task groups,
(d) To be responsible for maintaining close coordination
of the activities and approaches of the several
task groups. to. assure that there is no overlap by
the. task group effort; that problems which come to
several task groups are treated in a similar manner
and that..the, general program moves ahead in accord
with established priorities,
(e) Centrally to provide necessary liaison between the
task groups and-the International Economic Analysis
Division concerning the collection and use of trade
dat a.; .
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400". P SECURITY INFORMATION
4R'III
(f) To be .responsible:..f.or assuring that general
standards for the formulation and justification
of task group recommendations 'axe maintained,
and
(g) For assuring that each Chairman "is supplied with
copies of all'docwnents relevant to the assign-
ments given his task group.
2. Functions of Task Group Chairman: On the basis of membership
established through the Coordinator's office and work assign-
meats received from the Co,ordinator,.the,te.c -nical task group
Chairman will have the following functions:
(a) Within the general priorities and deadlines provided,
to establish a detailed schedule of task group opera-
tion and. to maintain adherence of the tack group todeadlines of
that schodule;
(b) To call' necessary moetingc of the- group, to preside
at such meetings and to represent the group there
called on before committees and officials;
(c) To assure. that all infoii ation available from agencies
is obtained through their membership on the task group
and is prope-ly reflected in the discussion of tech-
nical assignrnrorits;
(d) Insofar as possible., to restrict the general effort
of the task gTOUp- to technical aspects of the problems
before' thei thus avoiding more general policy questions
which are the responsibility- of other groups;
(e) The preparation of P. document indicating the technical
recom::hondations on the several iesues assigned to the
t-atk group, together with a full statement supporting
such recommendations; at the came time such information
and data as may hove been submitted which do not support
there recommendations should likewise be set forth
together with a full statement of any important dis-
sension among. the nre,',ber t hip; and finally the submission
of such docurient in an original and 3 copies to the
~..C-oor,diinat car
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T 9JLJJI SECURITY II 'OR CATION
PART III
(e) (continued)
Such documents should be addressed to the
Coordinator.
(f) For assuring that there is brought to the
immediate attention of the Coordinator any
problem on which irreconcilable views within a
task group o?ict which appear to prevent further
progress on a particular assignment.
(6) For assuring that _participation in the task group
meetings is limited to individuals on whom appro-
priate security clearances have been obtained
through the Coordinator's office.
(h) If, for any purpose, it appears appropriate and
de,sir .ble to have consultation on these problems
with members of industry, such consultation should
be carried out only in accord . with the Sccurity
Regulations. If it is necessary to discus,. security
matters with representatives of industry or to
have them participate in any way in task group die-
cusr,ions,, such proposal must first be cleared through
the Coordinator's office in order tliat any security
or adniiniotra.tive problem is properly handled.
3. Functions of Task Group Members: With respect to the assignments
given any tank groupo, its members are responsible for the follow-
ing function,,,-
(a) Attendance at all task group meetings; whore attend-
ance at particular meting is not possible, the
member shall notify the Chairman of a substitute
me~,iber sufficiently in advance to permit necessary
security clearances to be obtained.
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ShCURITY IUYORMLTION
PART III
3. (continued)
(b) For the gathering of all relevant -technical
information and judgment in the possession of
his agency and. its presentation to the task
group subject to the security limitations
placed on him by his agency; where niece limita-
tions do not permit tic. discussion of infor-
mation in the task group it is the responsibility
of the member to arrange through the Chia.,rman
that the information is transmitted to OIT through
appropriate channels in order that its relevance
can be brought to bear on the problcn at some
stage.
(c) For keeping proper authorities in their own agencies
fully infornod, as to the activities of the task group
and finally,
(d) Where a member's opinion differs so strongly from
any proposed, recommendation of the task group that
he desires to have set forth a dissenting opinion
he will either arrange with the chairman for the
incorporation of such dissent in the task group docu-
ment or t, rill undertake separately to provide a docu-
ment setting forth his view in sufficient copies for
transmittal by the chairman with the task group docu-
ment to the Coordinator.
Note On Security Clearance: While the existence of these technical
task groups is not classified, the membership, assi:gnnrent.s, , dis-
cussions and documents of the task groups as e generally classified
secret or Iiigher. Therefore,
no member of the group will be accepted
who is not cleared at least for handling ShCRET (SECURITY INFOTh1ATION)
material, The Department of Commerce Manual on Security will be
followed in all proceediis and in the distribution of documents,
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aW@MW S'BCTIPITY li FOR .i1ATION
PART III
11here a chance in membership is requested by an agency or substi-
tute membership is necessary, the agency is responsible for notify-
ing either the Chairman or the Coordinator*of the proposal and must
supply the name, position or title, agency address, agency telephone,
code and extension, fer the 'individual concerned. Where it is
clear to the Chairman that advice from a non;,uicmber is desirable
in a task group meeting and 'tile discussion can be guided in a
manner not requiring the di-,ru,lging of information above the classi-
fication for which the hon-member is cleared, he maul allow such
participation in the discussion,
PART IV
WORK :t ROG-7-M 1'0R TASK GROUPS
The follow ng work program is hereby transmitted to the task groups
for immediate priority implementation. The scope a d. nature, of this program
is such as to require the attention of individual task groups for a period
of from two to six months, Discussions by the Coordinator will be had.
with individual groups in order to set forth more specifically the priorities
which woulcl appear appropriate for each task, group's effort to meet the
general priorities which are inclic.ted below. It is not possible, of course,
to set forth .11 details with* respect to the work assignments and it may
be necesnary from time to time to have specific additional consultation
by the task group and the Coordinator,
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- ----- = DE FOR PDJLCT NO. I
PROTECT Guide for technical task group review of technical
problems relating to itoris' appearing on U,S, strategic lists, or w rich
should _.ppear thereon,
I, Technical Aspects of Items on Lists.I, II, IA, IIB and IC.
A. Technical review of definitions and strategic ratings.
1, Are the present definition and ratings adequate?
(Note: Because List I and II definitions have
been accepted by CoCom, changes in thee
definitions in those lists should be
recommended only for substantive reasons),
2. If not, what changes are recorunended?
3. Document the revision in accordance with the "Outline
for Justification' of Security list Items" (Attaclimtent
I).
4. Explain any important relationship between this item
and any other items on U. S. security lists,
5. As a consequence of the recommended revisi'o'n of this
item, make such recommendations for the revision of
the related items as may be necessary,
B. Identification of the items on List II, IIB and IC that should
f be embargoed because of the embargo importance of their
principa,.l, components. Although this problem arises out of
International List Principle No. 3, its resolution is appli-
cable to U. S. controls. Principle No. 3 follows:
"Any item (including plants) containing one or more
embargoed conpone :ts s___ould generally be treated as
though it were on the er.lbargo list when the embargoed
component or components area principal element of
the item in value or quantity avid can be feasibly re--
moved or used for other purposes"
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ABEL ShCURITY INFORA.ATION
(continued)
Despite the difficulties inherent in determining what
a"principal element" is, :nd when it c2.n be feasibly
removed, the technical task groups are requested to
accept the principle as it stands, since it is unlikely
there will be international Fagreement in the near future
on a revision of the item.
In identifying items covered by Principle No. 3 it
should be kept clearly in mind that the "principal
element" is one not only in "quantity or value"
and that ce be "feasibly removed", but is one that
would cause a Soviet Bloc nation to buy the co modity
in order to remove tile "principal element" to use it
for another purpose. The task groups are requested to:
1.; Identify those listed items that contain embargo com-
ponents as defined in Principle No, 3.
2. Identify listed items with components of lower than
embargo i._:portance exports of which should be dis-
cussed with other nations prior to proposed shipment.
C. Identification of the principal and if:r orta:it specific parts of
.. .. ?.:n
listed items.
Although this problem arises out of At;linistrative Principle
No. L its resolution is applicable to U,,S, controls, Adminis-
trative Principle No.. 4 follows:
"The object of the embargo and quantitative controls
should not be defeated by the export of component
paxts. Each country will take such action as it
can to achieve this aim, and will continue to seek
a workable definition for parts which could be used
by all the participating countries."
The U.S. control over its own exports of parts is governed by
U.S, List Items A-901 and B-901 which read:
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SECURITY INFORhATION
A-901: "Components, subasseablies and attachments, ems-
eluding hardware and fasteners, assume a IA
classification when the components, sub-assem-
bly or attaclhient Is identified. as specially
designed for and,used only in IA equipment,
and when the component, sub-assembly or attach-
ment has not been given a separate security
rating lower than IA,"
B--901: "Components, sub-assemblies and attachments, ex
eluding hardware and fasteners, for to or IB
items ,ssurze :a IB classification except when the
component, sub-assembly or attachment is identif5ed
as specially designed for and used only in IA
equipment or except when it has bean given an
separate security rating other than IB."
(Read I/L I for IA and I/L II for IB to convert these items
to CoCozm purposes).
The following definitions axe suggested for use by the task
groups in identifying principal and important parts of listgd
items:
(a) Components are to be considered. parts being ex-
ported for new or origina assei ibly..
(b) Replacements are to be considered parts which
are exported subsequent to base items and inde-
pendently of original sale. They ax o items 'needed
because of abnormal failute or wear after long
usage,
(c) Spares axo those parts exporter as part of original
sale and pursuant to, the original decision to export
the base item. They are those parts ifi~lich normally
veax out or neod replacement in short periods,
(d) Accessories are units which when added to the machine
or other equipment enable it to perform Its function
and which are exported with tic original assembly.
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SECURITY D FORNJATION
,(e) Attachments are units which when added to the
machine increase its efficiency or; versatility,
and which are exported either with the original
assembly or later.
It is understood that there may be a great deal of overlapping
of the above five categories,
The task group is requested. to ;lake certain that the parts recom--
merded for addition to an item Meet the rating criteria of the
item itself, For.exe ple, a part for a List I item should not
be recommended for addition. to the strate ;ic list if the part is
readily pPxuf=.ctured in the Soviet Bloc from materials available
to the Bloc, or if in as ;r other respects the part fails to Lie4,t
the List I criteria. (See A.ttachme-iat II for rating criteria),
Following are the basic assi-enments in this area::
1. Review the preliminary list of parts for List I items
supplied to the task group by the Chairman.'
In accordance with the definitions and criteria above,
identify separately the following elements, for all items
listed in the U.S. Lists IA, II, IIB and IC which warrant
addition to the 1_sts in accord with the above criteria,
and. justify the recommendation;
Principal components,
Spares,
Repl.,,cement s,
Accessories, and
Atta.cimneats.
D,. Identification by the task group Chairmen of the capital equip-
ment and basic materials necessary for the production of strategic
items. (This assignment is prinarily'directed to the Chairmen
since it cuts across tas'?k. group lines. However, the Chairmen
will nevertheless wish to discuss these problems in the task
groups).
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D. (Continued)
United States policy .provides that t~~is country shall not export
to friendly countries the capital equipnent or basic iiiaterials
required for the r,ianufacture of strategic commodities made with
such equipment or iaterials, In order to implement this policy
it is necessary to correlate the equipment and materials with
the appropri .te strategic 1teuc,
Following are exariples from -the strategic list , of capital equip-
ment and basic niater..als' (iii the left hand column) used or
necess2xy'in the 'production of other strategic items. (in the
right hand column). The items in the left hand column have
been identified as having a. close. direct and ii;r-oortznt relation-
ship to those in the right hard coluzrn, and only items which
in tie opinion of the task group have such a relationship
shoul'. be included in this analysis, which is to cover Lists
I, II, IA, and IIB,
Teflon. Products
1751 Polytetrafluoroeta,ylene 1525(b) Cables of all types with
polytetrafluoroethylene
dielectric (i.e, teflon)
Rails
1305 - Metal rolling mills, the: A403. - Railway rails, all sizes
following types:
Balloons
1750 - Polyethylene
1577 - Meteorological sounding
balloons, 1100 grails or
1-xger,
,
Titanium
1761 - Titanium tetroch:loride 1671 - Titanium metal
..12~ ? .
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Seai.less CF=;sing;
1061(x) Pipe tl:readin" ; ia:c nines;
combination thre .ding
and cutoff 3" (20 ca:.s)
and over didaeter.
1037 - Hollow spi;idle' (oil
country type) 'latl.es.
1305 - Metal rolling r:.ills,
all types;
115111, - Welded or seazless steel
casing, grill pipe, tubing,
and line pipe conforxaing
with API specifications
for oil country tubular pro-
ducts, Xtllis? excludes gas,
water, and steaan pipe: of
ordinary coiercial quality;
spigot and faucet pipes;
flange tubes).
1042 Thread milling machine,
o" .(15 ems) work di F,aiet er
at t1.e tl.re .q~cl -.:Zd over
(except gun jump screw
lathes covered by Item
1086j),
Diaa:.ond Products
1385 - Di=alonds suit=.b1e for in-
dustrial user inclut.ing
splints and Bert s, (II -
terLaroted to include in-
dustrir^.1 di w1o~lds ~ dust,
and powder; 2also inter-
preted to include rough
cuttablE d1ezionds suit--
-able either for e;e i
stoaaes or industrial
di a;:.onC ) .
1386 - All tools, including dies and
slugs incorporating diazionds,
1937 - Gria.din~;, lapping, and polish-
ing vheeels and other articles
incorporating dia:.ond abra-
sives,
Following are the basic assigmcents in this area:
ale Correlate tl:c capital equipment and basic materials on
the strategic lists with those other entries with which
they lieve close, direct nd_ i .portaalt rel-.tioas yip,
2. Explain the rel=.tionship if it is a.ot readily apparent
to lays en from the correl-.tion itself.
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SECURITY INI'OR4A'fIOn7
E. Preparation of a tec::.nic?1 xnaaaua.1 for listed items.
1, Review .the data. alre-.car compiled for ite,.;s on 'Ii s-ts I
and II, IA and IIB,
2.. Bring that data up-to-date in. accordance with the "Out-
line for Justification of Security List Itei.is" (Attach
vent I) ,
F. Recommendation of Positive List ch zges,
1.
Review all items to me.,to certain they are properly covered
on the Positive List.
2.
For
mpIte
also
any strategic list ite;. s reco :ended for revision
cert_dn that the appropriate Positive List changes
arc rccorinended.
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.-GUIDE FOR PROJECT NO. II--..:
PROJECT NO, 2 - Guide for Technical Task Groups for the Review and Analysis
of Actual or Potential Trade in Strategic Items by friendly Countries with
the Soviet Bloc,
I, Identifidation of strategic coiuiocuties zioyii from frienUy coy n-
A, Identify by specific item listing (or in finer detail if possible,
or ..ore general groupings if necessary) those items which are
produced in any friendly country in sufficient volume as to
create a trade potential with the Soviet Bloc,
B. Identify by U.S, item listing (in finer detail if possible or
more general groupings if necessary) by country, any trade,
in 1951 or l .ter where available, with the Soviet Bloc; idea
tify where possible whether the exports are from indigenous
production or are re-exported. Identify which countries are
importing identical iter:ns from the U,$. and in which quantities,
Provide other. det i.l. as ?.ppropY iztc,
II. Technic=.1 b si-_.ao ~ _on,,rrendations for Parallel Action with Other
Friendly Countries,.,.
A.
I1here a. country has now -?,,Need to embargo an item, whether or
not it is now tr=:~_i~ig in this itea, no further action is
maces-=ry for such couiAry for such connodity, In all other
instances, however, the following analysis should be r:.ade:
Soviet Bloc including Communist China and North Korea, which
if reached would constitute a serious security risk-to the
West?
Basic Question; Does there exist for tie item in question
2 level (including a. rango) of exports from the Ifest to tie'
If such level exists, tale following =action s:..ould be
taken:
(a.) The level ehou,ld be identified as specifically
as possible on an annual and/or a absolute
basis and justified, and
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1,
2,
(continued)
(b) T:e countries tier ich are treading, have recently
traced, or r.,cy be o ectod to trade (where ade--
quate inform Lion exists oil-ti oce points)
siieuld be recoririe:iided for: an appropriate share
in the total level of exports to .tile Soviet
Bloc estir:i=,tec! for the calendar year 1953, or,
whore on absolute level of receipt by the Bloc
is established, the total share for a country
should be re.connended,
(c)
A coripaxison should be node between the level
recoririendec' e ld the actual 4trade levels to
determine whether actual trade is so far below
the strategic level as not to warrant recoraiend
ing further ne oti a.tions at this tine (for given
countries or for all countries) or whether the
level of actual trade Is co close to, or in ex-
cess of, the recor.ii;iended.level, as to ,warrant
the recor.enda.tion for negotiation. In the
fernier case ?, reconnendation should be lade
providing for the necessary reporting of trade
data and a close watch on actual trade trends.
(d) For 2,11 rated itoris for which quotas are ad-
i::issible (thus excluding eribaxgo .iteLis) recorn-
;;iend an appropriate quota for each friendly
country's shipi.ients to the Soviet Bloc, includl
ing Cou:iunist China and North Korea.
If it is not possible to establish such level of export to
the Soviet Bloc, this following action should be token?
(a)
If it has previougly been establi siiecl. C i t. the
iteri does not neat the rating criteria. (see
Attachi:ient II) but there is strong concern over
tr_e shipi:ient of a sra11 iiur.iber or quantity, the
recoL:.endation should provide for sorie approp-
riate guide ,?.yid/or consultation technique which
i:iight per-,.lit determining whether specific s zip-
Lients should be peruitted. The Task Groups are
left to their own devices as to the details of
this recon.iendhtion, but should. r_ia.intwin close
contact with the Coordinator on this type problem.
MONO SECURITY IEFORi,ATION
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 Approved For Releq 2000/08/27 : CIA-RDP75-0066000100160009-8
SECURITY INFORMATION
2. (continued)
(b) If the concern is not strong even though fairly
substantial numbers or quantities of the item
were shipped, the task group should recommend
that an appropriate reporting of trade be es-
tablisl.ed in order that dangerous trends might
be observed. In this case a review of the
actual trade should be made to determine whether
the c iaracter and extent of such trade warrants
any specific negotiation with any of the trading
countries. If it is believed that such negotiation
should be had the technical rationale for requesting
it should be set forth.
Note: Although assignments in Project No, 2 should be organized
by the task group Chairmen in manner which will assure
their earliest comipletion, the following order of priority
should be liven consideration where applicable:
1. Exports from friendly countries (other than CoCom
countries) of the U0S. List IA and List II items and
U.S. List I items not now on Title I list.
2. Exports from all friendly countries of new U.S. List
IA items and U.S,, List 113 items which have not been
prescnte(i for discussion at CoCon,
3. xports from all friendly countries of U.S. List IIB
itelas n_)w appearing on International List III.
4, Exports from all friendly countries of U.S. List IIB.items,
which have been discussed in CoCon but which do not
now appear on any International List.
Y7-
SECURITY INFOR}LA.TIOA?
I,Yroved For Release 2000/08/27 : CIA-RDP75-00662R000100160009-8