NATIONAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A030200010039-3
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 10
• Document Creation Date: December 16, 2016
• Document Release Date: June 16, 2005
• Sequence Number: 39
• Publication Date: June 23, 1977
• Content Type: REPORT

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NATIONAL INTELLIGENCE DAILY CABLE
Thursday June 23, 1977
CG NIDC 77-145C
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NATIONAL SECURITY INFORMATION 25X1
Unauthorized Disclosure Subject to Criminal Sanctions 0
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 Approved FO
National Intelligence Daily Cable for Thursday, June 23, 1977.
e NID Cable is or a purpose of Informing
senior o is als.
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USSR: Agreements with US Companies
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USSR: Agreements with US Companies
I I The USSR is showing renewed interest in cooperative
researc and development agreements with US companies under
Article 4 of the US-Soviet agreement on science and technology.
Three protocols between US companies and the USSR State Com-
mittee for Science and Technoloby were signed in April, and
two more will be soon. The agreements are in the fields of
steam generation and nuclear engineering, oilfield equipment,
and food processing.
Last year, committee officials indicated disappoint-
ment with the amount of technology the USSR was gaining through
such agreements. They said they had orders not to sign any co-
operative research agreement that did not contain specific con-
tractual obligations. As a result, few new agreements were
reached in 1976; 56 were in effect at the end of 1975.
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In most cases, research and development agreements
have been cooperative in name only because the Soviets have
had no suitable related technology to exchange for the US tech-
nology they want. US companies have been reluctant to provide
the technology desired because they regard Soviet compensation
offers as unsatisfactory. The USSR, for example, suggested pro-
viding Soviet products as compensation, but these products gen-
erally are not competitive in Western markets.
1Tn some cases, the Soviets proposed establishing
joint ventures in the USSR using US technology, but US companies
rejected this because of Soviet restrictions on foreign owner-
ship of production equipment and property. Compensation in the
form of Soviet raw materials or semifinished products is often
unattractive to US companies because of potential resale prob-
lems.
Despite Soviet assertions to the contrary, they did
obtain some access to US technology through the earlier coopera-
tive research agreements, even if only by participating in tech-
nical discussions. The Soviets may have thought that their re-
fusal to sign additional agreements under Article 4 would put
pressure on both the US government and US companies to release 25X
more technology under conditions favoring the USSR. The recent
resumption of agreements may represent tacit acknowledgement
that such tactics failed.
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SAUDI ARABIA: Jidda Water Crisis
Jidda, the largest city in Saudi Arabia, is experienc-
z.ng a severe water shortage because of continuing drought, in-
creased demand for water, and Zagging expansion of desalination
capacity.
The official price for drinking water is 14 cents
per gallon--one cent more per gallon than regular gasoline.
Black market prices for drinking water already have soared to
$1 or more per gallon despite official price controls.
In addition to price controls, officials are restrict-
ing usage; public water is only available on alternate days.
The shortage probably will continue into September. Soft drinks
and milk already are in short supply, and one of the local hos-
pitals was recently without water for two days.
The Saudi government is largely responsible for the
current water problems. Desalination projects have not kept
pace with local demand, and many of the programs under way have
been hampered by bureaucratic infighting and delays. During a
similar shortage in 1975, several small desalination units were
airlifted to Jidda. The Saudis probably will have to do this
again soon to avert a major threat to public health and safety
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