DEAR DR. GRISHAYEV:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00798A000500090001-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 9, 2016
• Document Release Date: July 19, 2000
• Sequence Number: 1
• Publication Date: December 23, 1974
• Content Type: LETTER

Approved For Rose 2000/081
Mk1F
DP79-O 8A000500090O01-3
MIT ROOM December 23, 1974 (617) - 253-1661
39-551
State Dept. declassification & release instructions on file
Dr. E. E. Grishayev
Head, Department of Finance and Capital Investment
State Committee of the Council of Ministers
Moscow, U.S.S.R.
Dear Dr. Grishayev:
In accordance with the provisions of the agreement reached
at the September 23-26, 1974 meeting of the U.S.-U.S.S.R. Joint Group
of Experts on Financing of Science (Research and Development),
paragraph (1)b, I am enclosing a proposed revised outline for the
Survey Report on the Systems of Financing Science (Research and-Develop-
ment). As you will note, the revised outline is little more than an
elaboration of the items contained in the preliminary outline, reflect-
ing our basic satisfaction with the intent and scope of the survey
reports as defined at the September meeting. After each side has had
an opportunity to review and comment on our respective proposals for
revision and clarification, we plan to prepare separate outlines for
each section of the survey report on the U.S. system of financing
research and development for our mutual review at the meeting of
experts planned for the first quarter of 1975. In keeping with the
precedent of alternating meeting places, I assume this meeting will
take place in Washington, D.C.
Let me take this opportunity to add my personal expression
of praise to that of the U.S.-U.S.S.R. Joint Commission on Scientific
and Technical Cooperation at its October 1974 meeting for the comprehen-
sive study outline developed by you and Dr. Steele. I sincerely regret
that I was unable to accompany my colleagues to Moscow and to participate
in those discussions.
I have been asked by Dr. Steele and the other members of the
U.S. delegation who were privileged to meet with you and your associates
last September to extend to you their warmest personal regards and
appreciation for your hospitality. We look forward to receiving
your proposed revision to the preliminary survey report. outline and.
your comments on ours.
Herbert Hollomon
rector, Center for Policy
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Jtiulrt _
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A Survey Report on the System of Financing Science'(Research and
Development)
Revised Report Outline
1. 'Stattment'of Objectives
analyses of the mechanisms by which the financing of science (research
and development) is carried out and how these mechanisms are reflected
in the financial statistics of the U.S. and the U.S.S.R. These analyses
shall cover the topics listed below in paragrsphs II through VII. In
addition, the survey report shall include the following statistical
tables covering science (R&D) financing for calendar years 1970 through
1973:
1. Total expenditures distributed by appropriate classes
of performing organizations.
.2. Total expenditures distributed by type of scientific
work (basic research, applied research, development),
using estimates if necessary.
of financing.
3. Total operating expenditures distributed by sources
"4.. Total operating expenditures distributed by cost
...element (wages and salaries, equipment, materials,
""etc.).using estimates if necessary.
The survey report shall contain an explanation of all terms
and concepts used in describing science (research and development)
-financial statistics and other statistical measures used to relate
trends in science (research and development) expenditures to selected
economic variables, e.g., total company sales, gross national product,
etc. 'articular attention will.be given to the identification and
explanation of the boundaries between activities considered within
the-scope of science (research and.deyelopment) and other activities.
.Survey methodologies used in the collection and analyses of science
(research and development) and related statistics from institutions
in each of the four major economic sectors - Government, industry,
academia and private nonprofit organizations - including, as appro-
priate, information on universe size, sampling ratios, response rates,
etc., will be described.
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III. Science (Research and Development) Performing Organizations
The survey report shall describe the basis used for sectoral
classification of science (research and development) performing
organizations, including specific examples to illustrate types of
institutions within each sector.
IV. Planning Science (Research and Development) Financing
The survey report shall describe the procedures for planning
of science (research and development) budgets, identifying decisions
points within and interaction between the legislative and executive
branches of government.
Science (Research and Development) Expenditures Review and
Control
The survey report shall describe Government procedures used
to ensure that funds are expended in accordance with pre-established
guidelines and the review and control exercised by Government agencies
over science (research and development) activities funded from Federal
sources.
The survey report shall identify and describe the major cost
elements included in science (research and development) expenditures
under current operating costs, e.g., wages, salaries,*materials,
overhead, etc.
VII. Mechanisms for Financing Science (Research and Development)
The survey report shall describe the types of instruments
used to finance science (research and development) including a
discussion of the provisions for control, amendments, extension...
and the degree of flexibility associated with each type of instrument.
AOprOied For Release 2NY0%0~8'/1 CTA-RD7T=0D79gA0DU5IID~9QQO
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DIVISION OF LANGUAGE SERVICES
(TRANSLATION)
Dr. J. H. Holoman, Director
Center for the Study of Policy Alternatives
Massachusetts Institute of Technology
Cambridge, Massachusetts, U.S.A.
46179 STATINTL
GT/DZ
Russian
November 28, 1974
In accordance with the understanding reached at the meeting of
the Working Subgroup on Financing of Research and Development during
September 23-26 of this year in Moscow, I should like to inform you
that as of now the Soviet Side does not have any substantive remarks.
on the preliminary outline of the review papers.
After the September meeting our side completed work on making
more precise and specific the above-mentioned outline. The results. of
this work are presented in the appendix enclosed in this letter.
I shall be most grateful to you if you would communicate your remarks
to us on the opinions expressed by us or your other proposals regarding
a more precise definition of the outline of the review reports so that
we could discuss them in the future.
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I should like to take this opportunity to send my best wishes and
those of my colleagues in the subgroup for the New Year to you, to Mrs. N.
Nimitz, to Doctors L. Steele, W. Stuart and Ch. Falk.
Very sincerely yours,
(signature)
E. E. Grishaev, Director
Division of Financing and
Investments of the State
Committee of the USSR Council
of Ministers for Science
and Technology, Head of the
Soviet Section of the Subgroup
on Financing for Research
and Development
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Example of a more detailed outline
of the review report "Financing of Science in the Soviet Union"
1. Purpose of the report
The basic purpose of this report is to acquaint American experts
with the system of financing of science in the USSR and to promote the
writing of a brief scientific description regarding a comparative analysis
of the indeces of financing scientific activity provided for in para-
graph 3 of the Report on the Joint Meeting of the Subgroup held during
September 23-26 of this year.
It is recommended in the report to study the concepts, definitions
and organizational matters involved in financial science.
2. Description and definition of the basic concepts
A definition of the concept science is given; this definition is used
for purposes of financing science. The borderlines of this realm are drawn
to separate it from other realms of activity. Its relationship to such
processes as "utilization of scientific and technical achievements", "in-
vention and rationalization", "training scientists and specialists" is
described, and a classification of the different fields of science is given.
Other concepts which can be used in all or some sections of the report are
defined.
3. Description of the organizations carrying out scientific research and
development supported by science funding
A brief history and the present state of affairs of the network of
scientific organizations is given; these organizations are described, and
their rights and responsibilities are indicated.
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4. Description of the methods of planning expenditures for science
A description is given of the current system of future and present
planning of expenditures for science, and of the creation and approval
of plans for financing scientific research work. Ways of planning and
financing scientific research on various levels are described.
5. Description of the science financing mechanism
In this section the sources of financing, the channels and the means
of financial flow movement, and.the manner of utilization of finances
are identified. The specific characteristics of budgetary financing
profit-and-loss financing, and utilization of credit are presented. The
system of material incentives for scientific activity and for implementing
.its results is described.
6. Description of the structure of basic expenditures for science
In this section the dynamics of the structure of expenditures for
science are studied from various angles: for the whole country, by the
basic branches of the national economy, by types of research (evaluation),
by economic components of the expenditures (wages,- equipment, etc.).
7. Description of the methods of supervision and monitoring of expenditures
Book-keeping systems of scientific establishments, and accounting
procedures and financial measures used in the system of scientific estab-
lishments are presented.
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STATINTL
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