ECONOMIC INTELLIGENCE COMMITTEE Minutes of Meeting Held in Room 2125, Temporary M Building 26th and Constitution Avenue, N.W. 26 January 1956

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00283R000100120023-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: November 9, 2016
• Document Release Date: July 21, 1998
• Sequence Number: 23
• Publication Date: January 31, 1956
• Content Type: MIN

Sanitized - Approved For Release : CIA-RDP82-00283R000100120023-9
TAB
Sanitized - Approved For Release : CIA-RDP82-00283R000100120023-9
Sanitized - Approved For Release : CIA-RDP82-00283R000100120023-9
11-5o
Sanitized - Approved For Release : CIA-RDP82-00283R000100120023-9
25X1A9a
25X1A9a
25X1A9a
25X1A9a
Sanitized - Appyrayed For Release : CIA-RDP82-(42183R000100120023-9
CIA Control No. /457289
EIC-M-50
31 January 1956
ECONOMIC INTELLIGENCE CalMITTEE
Minutes of Meeting Held in
POom 2125, Towmaryll Builaing
26th Street& Constitution Ave. R.
26 January 1956
PRESENT
Dr. Otto E- Quthe. CIA. Chairman
$ CIA, Vise Chairman
Co].. William C. Baird, Air Force
Mr. Edward Doherty, State
Mr. john Easton, JCS .
Mr. Kingsley Hamilton, Air Force
Cdr. Robert E. Hawthorne, Navy
Mr. Duncan Holmes, Army
Cdr. Burns Spore; Navy
Mr. Edmund Brunner, AF, Chairman, Subcommittee on Armaments*
Secretary, Subcommittee on Armaments*
:CIA*
Miss Margaret Tobin Army*
EIC, Principal Staff Economist
$ EIC, Executive Secretary
APPROVAL OF MINUTES
1. The minutes of the EIC meeting of 20 December 1955 (EIC=M-49) were
approved after minor modification.
ANNOUNCEMENTS
2. Cammander Burns Spore introduced his successor, Cemmander Robert E.
Hawthorne, ONI, as the future Navy representative on the EIC. Dr. Guthe, as
Chairman, expressed the appreciation of the entire membership for the coop-
eration and support which Ccomander Spore has provided to the EIC over the
past fifteen months.
rx:---i;ht during only part of meeting.
Sanitized - Approved For ReltragntrA:RDP82-00283R000100120023-9
25X1A9a
Sanitized - Apkved For Reiwiej ckl?f,DID82-04283R000100120023-9
3. The Chairman reported thats Executive Secretary
of the ETC Subcommittee on Requiremerai7ifid-FiCilities for Collations had
assisted the Subcommittee on Electronics and Telecommunications in con-
sidering its collection requirements problems. These discussions had proven
most helpful and the Chairman will encourage similar working relationships
with other subcommittees.
4A The Chairman suggested that members ought soon to consider the
future of the ETC...RI series on China trade and transport in particular
the nature of any EIC-R1-S5 exercise which might be undertaken to cover the
year 1955. There is general agreement that another exercise should 25X1X7
involve a substantial reduction in the workload which was required for the
production of EIC-E1-.S1 last year. Members were asked to explore their
agencies' views, and to present suggestions at an early meeting.
COORDINATION OF EXCHANGE VISITORS
5. Discussion; The Chairman was asked about the status of inter-
agency arrangements for coordinating reeommendations on proposed exchanges
of visitors with countries of the Sino-Soviet B. He reported that the
IAC hail established a group to look into the positive intelligence sides
at the same time recognising that the internal security aspects are an
important element in arriving at a determination of net advantage. Several
Members expressed doubt as to the advisability of attempting to deal sep-
arately with these two aspects. It was generally felt that the findings
of the IAC group are needed to guide the EIC in considering its function
in the review of the positive intelligence potential of such exchanges.
REVIEW OF EIC SUBCOMMITTEE ON ARMAMENTS
6. Discussion: The Chairman of the Subcommittee presented alter-
native suggestions for handling future EIC responsibilities in the field
of armaments. In the discussion which followed, and in which the Chairman
of the Subcommittee on Armaments participated, several proposals were
advanced by EIC members. These included:
(a) A proposal by the Chairman of the ETC that the Arma-
ments Subcommittee be reconsitituted to emphasise review and
supervisory functions supplemented by "ad hoc" working
groups to provide coordination required for the study of
detailed problems of land or air armaments as recognised by
the Subcommittee.
(b) A G-2 suggestion that an Armaments Subcommittee might
be :primarily responsible for review, coordination and preparation
of intelligence on "the armaments industry in relation to the
overall Sino-Soviet economy", in addition to preparing or
coordinating other studies Pardireeted."
Sanitized - Approved For Re u082-00283R000100120023-9
Sanitized - Approved For Release : CIA-RDP82-00283R000100120023-9
'kvio?'4101
gaikadeassr,+
(c) A. proposal by the State Department representative
that the function of reviewing the overall state of armaments
intelligence be handled by the FIC itself -- with special
"ad hoc" working groups set up as particular problems might
require detailed coordination.
7. The importance of intelligence an armaments production to the
study of overall economic capabilities of any country was stressed. It
was, therefore, suggested that BIC arrangements for dealing with this
question might well be considered when the EIC reviews its Subcommittee
on General Economic Analysis.
8. Action: It was agreed:
a. (by majority vote) to accept the recommendation
of the Subcommittee on Armaments that the present sub-
committee be abolished, and
b. that further discussion of arrangements for dis-
charging SIC responsibilities in the field of armaments
Should be postponed.
REVISED REPORT OF GUIDED MISSILES WORKING GROUP
9. Discussion: The revised report of the BIC 'Woking Group on
Guided Missiles (dated 21 December 1955) was considered together with
written reservations noted by the JIG member of this Waking Group. The
Air Force member proposed that the report be noted and that the Working
Group be continued until further notice. He suggested, however, that
action to obtain the counterpart data requested should be held up until
a further investigation has been made of the possibility of making use
of Service officers already stationed in appropriate plants as the means
of contact, rather than CIA 00 channels. The Navy member of the EIC stated
that in his view the revised report was inadequate, as it did not include
the recommendations called for, in Paragraph 3 of the Working Group's
terms of reference, as to the objectives of economic intelligence research,
the collection requirements necessary, and the analytical methods to be
employed. The Chairman commented that the Working Group had frankly stated
that in their view -- accomplishment of this part of their terms of
reference was dependent upon the prior obtaining of counterpart data on
US production of guided missiles. He called on of ORE
to explain more fully the need for more detailed knowledge of US plant
practices and cost relationships before the research objectives and methods
in this field can be set forth in concrete terms.
- 3..
Sanitized - Approved For Release : CIA-RDP82-00283R000100120023-9
25X1A9a
25X1A9a
?
Sanitized -Apreoved For Release : CIA-RDP82V83R000100120023-9
' I ?
20. Act/ant In view of the lateness of the hour it was agreed
that the EIC would meet again an 7hursday1 2 February 1956 at 1400 hours
to consider further the report and recommendations of its *Irking Group
on Guided Missiles.
ANNOUNCEMENT OF NM MEMBERS
U. The Secretariat distributed lists of new representatives recently
designated to the EIC and its various subcommittees and working groups.
Executive Secretary
Economic Intelligence Committee
At-
- 4 -
!-.,..--1 It
Sanitized - Approved For Rerei-sg '''CT1L'IRDP82-00283R000100120023-9