ECONOMIC INTELLIGENCE COMMITTEE Minutes of Meeting Held in Room 4F31, CIA Headquarters Building 1000 hours, 10 July 1963

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00283R000100040018-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: November 9, 2016
• Document Release Date: August 5, 1998
• Sequence Number: 18
• Publication Date: July 10, 1963
• Content Type: MIN

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Control No. 2149
EIC -M-100
10 July 1963
ECONOMIC INTELLIGENCE COMMITTEE
Minutes of Meeting Held in
Room 4 F 31, CIA Headquarters Building
1000 hours, 10 July 1963
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Dr. Otto E. Guthe, CIA, Chairman
CIA, Vice Chairman
ordon Donald Jr. , Department of State
Defense Intelligence Agency
Lawrence E. Brice, Department of the Navy
National Security Agency
Dr. Edward R. Van Sant, Office of the Assistant Secretary of Defense,
rity Affairs
CIA
A
IA, Executive Secretary
INTRODUCTIONS:
The Chairman introduced Gordon Donald, Jr. , who was representing
the Department of State in the absence of the regular EIC member.
ANNOUNCEMENTS:
Membership
The Chairman announced that the EIC had a proved, b interim
action on 10 June 1963, the CIA nomination of , as 25X1A9a
Chairman of the EIC Subcommittee on Minerals and Metals vice ~ 25X1A9a
* resent or part of meeting.
GROUP 1
Excluded from automatic
0I
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10 July 1963
The Chairman reported that the Department of the Navy had nom-
inated Ivar D. Soelberg of the Scientific and Technical Intelligence Center
to serve as Chairman of the EIC Subcommittee on Shipbuilding vice
Captain Charles A. Stay, retired. No objections were voiced to tf e
approval of Mr. Soelberg as Chairman and this nomination was considered
approved as of 10 July 1963.
The Chairman noted that the Subcommittee on Agriculture in its
Annual Report to the EIC recommended that, because of the importance of
weather to agriculture and food production, representation from the Office
of Climatology, US Weather Bureau, Department of Commerce would be
beneficial. Members concurred in the Subcommittee's recommendation
and the Chairman will extend a formal invitation to the Department of
Commerce to participate in the work of this Subcommittee if they so desire.
The Chairman mentioned that the Secretariat is preparing a revised
Directory of EIC Personnel and asked members to report any changes
promptly so that the Directory can be kept current.
Review of External Research Project
The Chairman noted that the Defense Intelligence Agency submitted to
the EIC for review a proposed military-economic external research project
on "Weapon System Costing and Producibility Studies." The Subcommittee
on General Economic Analysis is reviewing this project and will submit its
recommendation to the Secretariat shortly.
Annual Report to the USIB of the EIC, Fiscal Year 1963
The Chairman noted that the majority of the Subcommittee Annual
Reports to the EIC have been received. He stated that a draft annual report
for forwarding to USIB would be prepared well in advance of the next meeting
for Committee review.
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Semiannual Reporting on "Sino-Soviet Bloc Economic Activities
in Underdeve loped Areas"
and that the EIC Subcommittee on Electronics and Telecommunications was
preparing several papers to be presented at the Conference. The Chairman
reported that he had communicated with EIC Representatives of the Depart-
ment of the Navy, DIA, and NSA suggesting that among the representatives
that these organizations select for attending the Conference they might wish
to include individuals closely associated with the work of the Subcommittee.
The representatives stated they would report to the Chairman on action
taken in this regard.
The Chairman reported that he had received concurrence from Rear Admiral
Taylor, Director of Naval Intelligence, for following procedures of previous
conferences jointly sponsored by the ONI and the CIA and hosted by the Sub-
committee on Shinbuildin_
The Chairman reported that the Working Group had commented on the
outline and production schedule for the forthcoming semiannual report and
that there was general agreement that, in view of the data problem and
other pressures, there would be a month's delay in the issuance and that
the report is now scheduled for publication in early September.
The Chairman stated that interim discussions were to be held regarding
whether or not there should be an abbreviated version issued in January.
He said that he had requested that the Working Group draw up a definitive
proposal of content and general format for EIC consideration in order that
the Committee can reach a decision whether to continue the publication as
it is or to accept the proposal defining an abbreviated version. He stated
that efforts were being made to mechanize production of the tables of credits
and grants to underdeveloped. countries and that he hoped to have sample
print-outs for presentation at the August meeting.
APPROVAL OF MINUTES:
The minutes of the EIC meeting of 15 May 1963 (EIC-M-99) were
approved.
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10 July 1963
REVIEW OF EIC-R16-S4, "A SUMMARY OF THE INTERNATIONAL TRADE
AND TRANSPORT_=C5N!=19T CHINA, ,1:
The report, prepared by the two responsible Subcommittees, was
reviewed and some modifications and changes were proposed and accepted.
The Committee then approved the report for issuance. /Prior to publi-
cation, new information permitted a revision in the 19627igures for Sino-25X1X7
Soviet trade. This was coordinated in State-CIA discussions and by tele-
phone with other members of the EIC.
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The Department of State representative inquired as to the feasibility
of issuing a brief addendum to the report after receipt of the official Soviet
trade statistics. The Committee agreed that if there were any significant
changes, revisions would be discussed with the Department of State, and a
brief addendum (tabular data and explanatory text) would be issued and
circulated to recipients of the original report.
FUTURE REPORTING ON THE ETC-R16 SERIES:
The Chairman recalled that at the last meeting the Navy representative
agreed to report on the acceptability of alternate methods of reporting on
the transportation section of the EIC-R16 series, and read a communication
from CDR. Robertson noting the Navy's dissent and recommending that EIC
members be requested to state their positions on continued production of
the transportation section of the report. Comments were invited and
discussion followed.
The OSD and DIA representatives stated that they find the combined
analysis of both trade and transport very useful and would favor having
the R16 series continued in its present form. The Chairman suggested
that ONI might wish to publish annually the detailed information on
Chinese shipping as departmental intelligence and that the major changes
and trends could be submitted as a much less detailed contribution to the
EIC trade report.
The Navy representative stated that ONI is prepared to give consider-
ation to specific proposals for reducing the amount of detail in the transport
section.
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10 July 1963
The Vice Chairman questioned whether policy-makers or the intelli-
gence community at large do, in fact, now have need for an agreed
detailed analysis of China's shipping since China currently has no signifi-
cant problems in obtaining shipping services. If China's transport situation
should again become a significant problem to our Government, it could be
covered in the R 16 series to the extent warranted.
It was proposed that since ONI and CIA are the major contributors to
the transport section of the report, an indication of the research time
invested in its production would be helpful in determining whether the
expenditure of man-hours is out of proportion to the value of the product
as an agreed EIC report.
The Navy representative agreed to explore the possibility of reducing
the amount of detailed reporting and that consideration should be given to
the question of policy justification for inclusion of the detailed tables and
text in the EIC report.
The Chairman suggested that discussion on this subject be continued
at the next meeting.
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Executive Secretary
SECRETARY'S NOTES:
EIC members approved, by telephone interim action on the date
indicated, release of the following. documents:
On 4 June 1963, the sanitized version of EIC-R14-S14, Sino-Soviet
Bloc Economic Activities in Underdeveloped Areas, 1 July -
70 December 1962, for use by Ambassador Timberlake in discussions
with foreign o icials of France and Italy.
On 19 June 1963, an article on Bloc Assistance to Neutralist and Pro-
Communist Forces in Laos in the EIG .wee y or ing roue eport
E -W R-1 1 8, 26 February 1962) to the Research Analysis Corp. ,
Bethesda, Maryland, through the Department of the Army.
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