LETTER TO GENERAL WALTER B. SMITH FROM WILLIAM C. FOSTER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R001300240004-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 16, 2016
• Document Release Date: June 1, 2005
• Sequence Number: 4
• Publication Date: December 22, 1952
• Content Type: LETTER

ckr OSD REVIEW COMPLETED
. Approved Release-2O 1 CIA-RDP80R tR 004-2
SECURITY INFO TION -. r > ?
THE SECRETARY OF DEFENSE
WASHINGTON 53~ 2F-t.
22 DEC 1952
Reference is made to your letter of 6 December 1952, regarding
the use of the Dower inherent in the Offshore Procurement Program to
reduce the Communist hold over labor unions in France and Italy.
At the inception of the Offshore Procurement Program in mid-1951,
this inherent power was foreseen and instructions covering this problem
were issued to all interested parties in the field through the medium
of a joint State-Defense-DN1S-NSA-Treasury Airgram under date of 21
January 1952. These instructions set out the problem and placed
the responsibility for evaluation and implementation thereof upon the
Miiitary Department Procurement Officers charged with doing the actual
letting of contracts. The following excerpts from this joint message
are believed to be pertinent and consistent with your desire to make
maximum use of the Offshore Procurement Program in furtherance of our
efforts to combat communism abroad:
"Our objectives can best be accomplished by placing
contracts with employers who favor non-communist unions
in their collective bargaining relations and who pay what
are regarded in those countries as good wages. In.placing
contracts, procurement officers should, therefore, give
preference to such employers, or to those who can be pre-
vailed on to adopt such policies. This should be made known
to producers seeking contracts.
"The extent to which adjustments in employers, labor
policies shall be incorporated in contract provisions beyond
the standard labor clause set out in the circular telegram
of January 3, or incorporated in separate understandings
with employers, should be worked out on a case by case basis.
Any labor problems arising in the plant of an OSP contractor
should be immediately discussed with the Labor Attaches or
1,13A labor officers, who will be in a position to advise on
appropriate action.
"The complex and political nature of the labor problems
which will arise in the course of the offshore procurement
program will require a full and frank discussion with the
French and Italian Governments and an inter-governmental
understanding, not necessarily written, that the participating
country government is prepared to adopt policies which will
support the common objective of strengthening and developing
the democratic trade unions as opposed to the Communist unions.
These discussions may also include the problem of effective
and regulati os Qf, the E.-C,-f1QYernmtnt`.rr__-- ---->C ~~ T -- - _
.r 'l INFOR$AT1M
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lA-RDP80R01731 R001300240004-2
Approved 0 Release ME= CIA-RDP80R04P1 R001300240004-2
'/ SEG ILA
(6ECURITT INFORMATION
You will also recall that the employment of offshore procurement,
where feasible, in weakening the Communist position in labor and
industry is provided in the plans for the reduction of Communist
power in France and Italy. For various reasons, optimum results,
from offshore procurement have not been achieved.
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MEM(?RANDL 1u Genera mith
The attached reply to your letter of
u December
quotes extensively from the Offshore Procure-
ment Program and reiterates the intention of
the Department of Defense to use this Program
to reduce the Communist hold over labor unions
in 'France and Italy. It as',-,s for any infor-
mation that opportunities are not being fully
exploited in this matter.
5 Ja 53
p~oved For Release 2005/0 ttt -RDP8e 1T7F3)l R001 3002400
j Sentrity Information 10, 101 JAN __ 1952