ECONOMIC INTELLIGENCE COMMITTEE MINUTES OF MEETING HELD IN ROOM 2101 'M' BUILDING CENTRAL INTELLIGENCE AGENCY, ON 9 AUGUST 1951

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00283R000100180016-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: November 9, 2016
• Document Release Date: July 21, 1998
• Sequence Number: 16
• Publication Date: September 9, 1951
• Content Type: MIN

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ECONOMIC INTELLIGENCE COMMITTEE
Minutes of Meeting held in
If r
uic~n
--Room ']. M
Central Intel enre Ag , on 9 August 1951
Dr. Max F. Millikan, CIA, Chairman
Mr. John Easton, JCS
Mr. Henry Brodie, State
Mr, Howard Wiedemann, State
Mr-. Fred Sanderson, State
Mr. John F. Kullgren, Army
Lt. Colonel George B. Russell, Army
Commander Donald C. Deane, Navy
Dr. James T. Lowe, Air Force
Dr. Joseph D. Coker] Air Force
Mr. James A. McCullough, WA
25X1 A9 , CIA, Secretary
CIA
Z -IVY-
10 August 1951
APp a1 of Minutes
1. Action: The minutes of the meeting of 26 July 1951 (EIC-M-2)
were approv'
Discussion of Subcommittee Chairmen
2. Action: The following persons were designated as subcommittee
chairmen:
Mr. Nordbeck (State) - Subcommittee on Requirements and
Facilities for Collation
25X1A9a
(CIA) - Subcommittee on Petroleum
Lt. Col. Cowart (Army)-
Subcommittee on Transportation
R22ort on the Pro ess of Subcommittees - General
3. Action: The Committee asked that either Dr. Millikan or the
Secretar? *warn su o mjttee chairmen that items requiring certain
apeejal clearances should .nvt be discussed or alluded to in any way.
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4. Discussion: Dr. Millikan cited two general problems that
hamper subcommi ee operations - (a) the inability of subcommittee
members to speak for their agency on certain matters; and (b) the
existence of obstacles to the exchange of working papers among individual
,members. It was felt that the first problem could be partially resolved
through distribution of the agenda sufficiently in advance of the
meeting to permit consultation with superiors; and that the second
difficulty could be minimized if EIC members would attempt to make
arrangements within their own agencies to facilitate the release of
working papers to cleared personnel with a need to know. A-2 suggested
that Colonel Hall or Dr. Allen, in Target Research, be contacted on
requests for such papers.
Subcommittee on Requirements and Facilities for Collation
5. Discussion: This subcommittee held its first meeting on 7
August. A meeting, Dr. Millikan outlined its mission and suggested
that the first order of business might be (a) the preparation of its
terms of reference; and (b) the preparation of requirements for the
State Department Division of Foreign Reporting. The subcommittee asked
that representatives from that Division discuss the matter with &iubcommittee
membors.in"order to provide guidance for requirements statements. The
subcommittee also suggested the present deadline of 1 October 191 for
submission of Foreign Reporting requirements was probably unrealistic but
that they should proceed to prepare requirements area by area as quickly
as possible. Three persons were appointed to prepare terms of reference
and CIA agreed to prepare a sample requirements form.
Subcommittees on Petroleum and Transportation
6. Discussion: There have been no meetings of these subcommittees.
CIA has con' arc e`d Admiral Biggs of the Munitions Board in regard to the
proposed Petroleum Advisory Panel of the EIC. Admiral Biggs emphasized
the need for such a group and expressed a willingness to serve as a member.
Arrangements are under way to contact other persons who might also serve
on this, Panel including Mr. Snodgrass of Petroleum Administration for
Defense and Messrs. Ortez and Akins of State.
Subco;nmittee on Agriculture
7. Discussion:-It was announced that an organizational meeting of
this subco'nmt ee would be hold that afternoon (9 August).
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Workin Group on the Economy of Western Europe
8. Action: The Committee asked DV. JTillikan to meet with the
Deputy Adm nis'_,rator, ECA, to regaes-t a written contribution to NIE-LSO
from the ECA machinery section.
9. It was agreed that the Subcommittee on Agriculture should be
asked to prepare the food and agricultural sections for NIE-L.O. CIA is
to transmit these instructions to the Subcommittee.
10. The Committee requested Dr. Millikan to contact 25X1A9a
Assistant Director for Scientific Intelligence, CIA, to determine w a
office might best provide the atomic energy sections of NIE-LSO.
11. The JCS representative, Mr. Easton, was asked to check with
WSE;G (Weapons Systems Evaluation Group) to determine whether a recent
WSEG report generally relating in content to NIE-LSO, could be made
available to the Working Group. Mr. Easton agreed to report his findings
either to Mr. Sanderson or the ETC Secretariat.
12. The Secretariat was asked to request the following from the
Assistant Director .for National Estimates 25X1A9a
a. Postponement of the deadline on NIE-?40 until 17 November 1951,
b, A determination of whether Greece and Turkey are included
in the terms of, reference for NIE-40.
co A determination of whether contributions to NIE-40 are to
,delude :
(1) the probable developments in Western European produc-
tion during a two yearst period following its acquisition by the
USSR;
(2)
(3)
an analysis of Soviet production; and
an analysis of World War II production.
If the answer to any of these is in the affirmative, then the Secretariat
25X1A9a is to Mmmft' if he would consult with the Navy representative
associated with NIE-1.O in order to clarify the situation.
13. It was the sense of the meeting that NIE-40 would delay the
NIS programs of both the Army and the Navy. In view of this conflict of
interest, the Committee asked Dr. Millikan to raise the question in the
next IAC meeting of the relative priority between these two efforts. In
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addition Dr, Millikan was requested to raise the general issue of the
relative priority between the NIS program and special projects requested
by such groups as the National Security Council, the Intelligence Advisory
Committee, the Joint Chiefs of Staff, and the Office of National Estimates,
The Navy, 'r' and Air representatives were to present the facts on this
conflict of interests to Mr. Sanderson who, together with the Secretariat,
was to present a memorandum on the subject to Dr. Millikan,
14. The representatives concerned agreed to go forward with their
work on NIE-40 pending responses to the aforementioned questions from the
IAC and the Office of National Estimates. The Committee instructed the
Working Group to proceed with its study.
15. Discussion: Mr. Sanderson (State), Chairman of this group,
reported t a four meetings had been held during which terms of reference
for 'NIA;-L0 had 'eon prepared and some production responsibilities had been
allocated: He further stated that, although the project was developing
satisfactorily, there were the following unresolved problems:
at No agency is able to provide the information required on
machinery in. Western Europe. MA is the only agency really competent
to handle this request and its present workload will not permit it to
provide any assistance other than access to files and discussions with
knowledgeable personnel. It was suggested that Dr. Millikan contact
the Deputy Administrator of ECA to see what could be done about this.
b, Assignments for preparation of the food and agriculture
section of NIE-40 had not been allocated. Mr. Sanderson suggested
that these be turned over to the EIC Subcommittee on Agriculture,
c. The sections on atomic energy had not been assigned. It
was'suggested that on this matter Dr. Millikan see , 25X1A9a
Assistant Director for Scientific Intelligence. it was urt her
suggested that Dr. Millikan might also see Dr. Woodruff of the
Joint Atomic Energy Committee.
d. It is impossible to do a satisfactory job on NIE-40 within
the present time limit. It was suggested that ONE be asked for a
one-month postponement with a new due date of 17 November.
e. The Working Group was not certain as to whether or not
Greece and Turkey were to be included in the study.
f. The Working Group has been unable to get a copy of an
Air Force working paper dealing with the same general subject as
NIE-1t0. Mr. Sanderson asked for EIC assistance in secu'l.ng the
document. Dr. Lowe,, A-2, indicated that this was probably a WSEG study.
opies of the terms of reference and tentative allocation of responsibili-
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1,6. Commander Deane (Navy) raised the following questions about
the scope of the study as outlined by the Working Group:
at Do, the terms of reference for NIE-i 0 as agreed to by
the IAC call for an analysis of Western European production for
the two-year period following the assumed Soviet acquisition of the
area (i.e. through 1954)? Commander Deane felt that the terms of
reference do not call for this data.
b. Do these terms of reference require an analysis of the
Soviet bloc?
C. Do the terms of reference require an analysis of World
War 11 production to determine what the Germans were able to do
with its conquered territories?
The EIC representatives agreed that these questions should be submitted
to the office of National Estimates.
CIA(s Role in Economic Intelligence Production
19. Discussion: The following three papers which were distributed
to the Comma ee CIA were discussed briefly by Dr. Millikan:
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a. The Role of ORR in .F conomic Intelligence
b. Preliminary Basic Inventory of Economic Intelligence
Concerning the USSR
co List of Countries and Subjects covered in ORRIS contribution
to NIE-33.
Not all of the reports listed in b and c are presently available. However,
all of the projects listed in c will be ready for distribution in a couple
of weeks and can be requested through Walter Moberg (ORR), code 143,
extension 2763.
Plans for the Next EIC Meeting
20. Action; In order to take up some of the outstanding items on
the agenda` he Committee agreed to meet the following week on Thursday
(16 August) at 2:00 p.m.
25X1A9a
Secretary
Economic Intelligence Committee
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