ECONOMIC INTELLIGENCE COMMITTEE Minutes of Meeting Held in Room 1121, Temporary M Building 26th and Constitution Avenue, N.W. 20 November 1956

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00283R000100120010-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: November 9, 2016
• Document Release Date: July 21, 1998
• Sequence Number: 10
• Publication Date: November 28, 1956
• Content Type: MIN

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ECONOMIC INTELLIGENCE .COMMMT~'.I'EE
.Control No. ~+6Q~+06
EIC-~t~-57
28 Nc~v ~. - 6
--9
Minutes of Meeting Held in
RQgm 1121, Temporary M Building
26th street and Constitution Avenue, N. W.
20 November 19;56
PRESENT
25X1A9a CIAO ,vice Chairman
Col. Joseph Brewer, Department of the Air Force
Gol. Robert Brew~r,:Department of thQ Army
Mr..Gustave Burmeister,. Department of Agriculture
Mr. Bennett V.S. Davis, Department of the Navy
Mr. Edward .Doherty, .Department of State '
Mr. John Easton, Jt~int .Staff
Mr.-,Terpme Forrest, International Cooperation Administration:....
Mr. Philip Habib, Department of State
Mr..Kingsley Hamilton, Department of the Air Force
Cdr. Robert I~awthorne, Department of the Navy
Dr. .Norris G. Kenny, Office of the Secretary of :Defense
25X1 Aga CIA.
Mr. Emil Schnellbacher, Department of Commerce
Mrs. Doris Whitn.ack,.Department of State
25X1 Aga EIC~ .:Principal Staff Econpmst
25X1 Aga , EIC, ~ecutiye Secretary
APPROVAL (}F MINUTES
1. The minutes of the EIC meeting of 7~.8 August 1956 were approved.
aNNauNGn~Nrs of CxAIRMANt
2. The Chairman pointed out that it had been some time since the EIC
had met, ~n.dthat two ,new .members were present for .the first time. He
thought it appropriate, therefore, to report the fallowing interim
developments:
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a o Annual R.e~ort
The-Fifth Annual Report of .the-EIG was noted by the 7AC
on 19 September 19.56.
b. National ~ntel7,i~enee Ob,~ectives
The EIC prepared statement of Prior National Ecanomie
Intell~ence ,~bs~ectives, .which had been based Ran DCII) ` 5 i~ri,d which. had
been. approved by the EXC at its last meeting (7 August 1956), was appr?ved
by the.IAC on 21 August .1956, Since-that time a new statement of Priority
National Intelligence l~b,jectives, DCID ;~+~6, has been. approved by the IAC
f30 .October 1956)0. This makes appropriate certain minor revisi?ns in the
statement of Priority National Eegnomic Intelligence Objectives dust
"~"
approved .last Augusta
Action: The EIC approved the Chairman's suggestion that
the Secretariat w ~ertake to .draft a revised statement -of Priority
National Economic Intelligence Objectives to ,take account .af' changes
between DCID 5 and DCID ~+/6. This Secretariat draft will then be
reviewed by znembers.of the EIC "ad hoc's working group which. coordinated
the previous paper-- after which i.t will be submitted to the EIC.
c . EI..
The LTS unilateral report on "Coaunun,st China"s Ia~cparts and
Expgrts, 1955: trade and Transport Involved" (EIC-R1dS5) was approved
~n 19. September by the IAC
The. EIC, by interim action,
vn 15 November approved distribution of the finished report to.C3CB,
NIDAC~EDAC, and CF~Pa. The printed report is expected to be available fr~r
distribution in .early December.
da ecal "`Suez Canal" Survey
~--~ .- ~: -,t
As instructed by the EIC members (following :the meeting
of 8 August 1956) a "Special Survey .Listing of Internal anel.External
Economic Research Relating.tv-.Current Suez Canal Zssue;s" (EIC-S~26) wa,s
prepared by the EIC Secretariat, and distributed :on l2 September 1956
to .the EIC representatives of the IAC agencies and .of the Export-Import
Bank.
25X1 X7
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e. Biweekly Warkin~ Group Report
The EIC 4~'oxking .Group on SinorSoviet Bloc Ecox~.oinic Activities
in Underdeveloped Areas has now published 20 issues of its biweekly report.
Both. the biweekly .and quarterly publications,o#' this wprking group-have
been approveel_fQr release to .the three special.U"S Government groups. studying
US f'ore,gn aid policies ~{a subcommittee- off` the Reuse Foreign: Af~air.s C.~-
mittee, a sub.cammittee of the Senate Foreign Relations Committee, and .the
Fairless Ccumn~.ttee established by the President}. So fare in res once to
,requests,- the background report in the quarterly series {EIG-R-1~+~ has
been.. supplied to .the douseand Fairless groups and. the biweekly series
to the House subcommittee.
~'he Chairman stated that he had. had a. number of indications
that this series of reports was being .generally well-.received, and he
inquired ,as ta,what indications ~rther members might have had. The repre-
sentative of the Department ~f State .reported that inquiries addressed
to .many Foreign Service posts :had brought a universally favt~rable reaction.
A ..number of the other EIC representatives also .ct~mmented qn the:-value of
this series of intelligence reports --- particularly the representatives
of the })epartment of Commerce and of ICA.
f . NIE 11-1- 57
An "Ad Soc" SIC Working Group an NIE 111-57, "Sing-Soviet
Bloc Air Defense Capabilities-through Mid-162," was established on
18 Qctober 196 by interim action. This working group .will coordinate the
CIA.~bRR contribution called far under Step 3, {econnm~:c impact} of the. Terms
of Reference {TS} of. -this NIE.
g. External Research Contracts
Three external research projects {twa,of themsponsnred
by Air Force and one by CIA} have recently been submitted to ;the EIC
for rev3:ew in accordance with DCID.15~1o The. CIA-sponsored project has
.been reviewed by the Subcommittee .on General Eccan:Qmic Analysis, and its
fav~tre~ble comment was concurred-in by interm:.aetion of the. EIC on
18 Gctaber 196, CAZnments:on the two Air Force prp~ects had been :received.
from the subcgmmittees concerned, but have ~.~t yet been acted on by the EIS.
S-E-C-R-E-T
r. ....
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h. EIC Research Aid
The Chairman called attention to an annotated listing.af "Key
Pers~?nnel Concerned with Research and_Praduction in the Electrotechnical
Industry of the USSR,.`" which was published as a research aid,. in August,
by the .EIC Subcommittee an Electronics and Telecommunications.
SUGGESTItJNS.FOR FUTURE :EIC CONSIDERATION:
3. Discussion
The representative of the Department;af State raised .two questions
.which he asked be placed .on .the agenda for a future meeting:
a. what is the function that should be performed by the EIC and
its subcommittees in the review of proposed. external .research projects; and
b, in what manner should.the EIC prpceed in its examination of
th.e work of individual subcommittees? '
In regard to the first question, he felt that subcommittee reviews.of
proposed external research projects in some instances were not sufficiently
critical to prQV3de adequate. recommendatians.to-:the initiating agency,
Concerning the second, he recalled that the EIC-.had initiated an examination
of subcammittee,s but that .this work had not been continued by the EIC as
planned..
~.. Action
The Chairman stated, and the Committee- agreed,. that these two
questions would be taken up at a future meeting,. The Chairman requested
the Secretariat to.develap procedures far an orderly examination of
subcommittee activities.
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5v Discussion
The Chairman commented .that the present report seemed a marked
.improvement over the earlier "background" paper (EIC-R-1?+). The summary
sections in particular, .seemed directly and clearly expressed. Although.
a number of minor editorial improvements were-still needed, he .suggested
that most of these be left to the EIC Secretariat in consultation with
the officers of the working .group, ..and that the report., in substance, be
approved a,t this .time. The Chairman, however,. mentioned several specific
modifications to .which he believed .the Committee's attention should be
drawn; and .the representative of the Department of State anc3, several other
representatives raised additional points. The members expressed general
agreement with .each of these suggestions.
6. Action.
The EIC approved the report, with the agreed minor changes, and
authorized the Secretariat to make further ec7:tori.al improvements prior
to publications All present expressed appreciation of the efforts of the
working group,- and the.ElC officially commended.the officers and members
of this group, together with their supporting staffs for their preparation
of EIC~~Rl~-Sl.
Executive Secretary
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