Annual Review of Activities and Accomplishments

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00283R000200050019-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: November 9, 2016
• Document Release Date: July 21, 1998
• Sequence Number: 19
• Publication Date: August 3, 1956
• Content Type: PERRPT

Approved For, Release 1999/09/08.: CIA-RDP82283R00020005
3 August 1956
CTA-4592 1
TO
: EIC Secretariat
THP.U : Chief, Economic Research Area, ORR
FeclON : Chaim, Subco .ttee on Industrial Machinery and Equip ut
of the EIC
SUBJECT: Annual Review of Activities and Accompiie nts.
A. The foUowing comments refer to the activities of this
Subcoaimittee during Fiscal Year 1956.
1. Review of Intelligence Product in the Subco .ttee: a s
Field of Cc tence.
Ding the past year the Subcommittee has given
attention principally to two activities:
a. Continuation of its program, initiated in Fiscal
Year 1955, of reviewing substantive research in ite
field produced by amber agencies of the W. Sub-
stentially all substantive research publications of
the mniber agencies of current general interest have
now been reviewed. Two studies published in rece t;
months by CIA remain to be discussed and will be
considered in the near future. Owing to a ed
procedure of Air Force Intelligence with respect to
the Subcoa .ittee ? s field, discussed more fully in
paragraph D, it appears probable that the principal
near future IAC producers of substantive research
on industrial machinery and equipment will be CIA
and, with respect to trucks and military tx?actors,
Army, G-S. It is proposed to continue the practice
of substantive review undertaking, where practicable,
discussion of draft reports prior to publication,
to afford opportunity for exchange of views and
submission of suggestions by representatives of
participating agencies.
b. Determination of priority research gaps. Areas of
research deficiency within the Subco ttee ? a purview
have been determined and a report is being cm piled
for early submission to the Secretariat. Having
determined the priority areas of deficiency, the
Subccatteee plans to proceed toward review and
possible amendment of its priority requirements
for collection.
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As a by-product of its review of substantive
intelligence the 2ubco ttee is ressed trigs t o
need for a standardization in the iwLell.i sues ity
of the definitions of te: comwon4s used as, for
le, the word "capacity" as applied to plant ane,
industry Operations aad output. As a result of
discussions vithin the ab ,ttee valuable eats e Of
the concepts and thodoloffies ploye~j it this lc v
by the sous Pgrticipating agonciea has boon ezchau ed.
It is hoped that further work alo this lip -trill pe ait
later sub seiQf of the : ubcon=Jttee a s observations and
rec tiors on this subject.
2. Research and Collection Deficiencies
a, Within . its field the Subcomittee has established the
following priority research gaps. York scheduied.
to be undertaken in Fiscel Year 1957 toward rose ix,io4.
of the deficiencies is tabulated also. Relative priority
for codity subjects is Indicated by use of the
figures (1), (2), and (3), in descending order of priority,
COMOUties
(1) Chi cal. luipt
(CIA/OM Project No. 34.1558, suction of Chemical ui e t
in the R)
(1) Precision Rotary Electrical Machines and Control
(CrA/o Project No. 36.1557k The Precision Electrical
Mchinery and Controls Industry of the U MR).
(2) Petroleum Refinery uipsnt..
2 Selected Construction l pmnt.
2) ) Railroad Roller Stock.
(CxA/oai Pftject No, 32.883 Production and Distribution
of RR ' ui nt in the USM).
(2 Mining Machinery.
2 Battles (Electrical)
(CIA/CM Project No. 36.1555, The Battery industry of the
8ino-Soviet Bloc).
3 Electric Power Machinery.
3) Metallurgical 7 ftuip t.
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(3) P ta1wor g Equipwat
.
(/ vet o. 31.501, Production of m t o .ng
Equimt in the USSR). (CIA/ Project No . 32,884, Poor :v lq1x-;W-_ats in ? .ho
Heavy Machine Building Industry in the USn).
(3) Motor Vehicle Production
(CIA/01 Project No. 32,620, The Rotor Yebicie Industry or
the WSR).
Selects. Ac is of Capital FoxmtJon.
Price Practices and. Policy
CIA/ORR Project no. 14.M, met Price .d Costing of ed es) a
CIA/ORR Project Uo. 34.894, Pricing of Capitai C< or in the ),,
CIA/tom Project No. 32.885, Pricing System for Producers I God
in the U 3SB .
(czp/tom Project No. 40.1532, A Study of Bloc Foreign T'nde
Commodity Prices).
Soviet Equipment Replacement Policy
Technological Advances in the Machine Building Industries
(CIA/o=R Project No. 32.8%, Postwar Be oprLt3 in the
ivy Machine Building Industries in the USSR).
Automation
(cIA/on Project Ito. 30.1089, Teasels in Automt d
N1ec oration of :C ustry in the USSR).
Index of Production of Producers" Equipment
Evidences of Integration in the P chine Building luft.stries of the
Bloc
Economic Determinants of Soviet Moo Export Policy
Ave& - EUBOP111'ter1~811
Comte4ities
1 Metalworking Equipment.
1 Metallurgical Equipnt Industry.
1 Precision Rotary Electrical Machines and Control.
2 Railroad Rolling Stock.
2 Tractors.
2 Motor Vehicles.
131 Agrieultutai R chinery.
Selected AaDeets of Capital Po tion
Indexes of Production of Pte' Equipment
(Stub of this subject boo been initiated in CIA/CB).
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Price Practices and. Paley
(CIA/mm Project No. 443.1532, A Study of Bloc a ign
Trade Coazanodity Priem).
Area - CUINA
C dItipa
J1 EO ectric Power Ecgui * Bent.
1 Metalworking Ecduipawat.
1 Railroad Locc tives and Rolling Stock.
Selected Aspects of Capital Formation
Capital Formation in Cow st China
(CIA/MR Project No. 30.1535, Ii nstrial capital stn t
in CorMmist chi=).
Additionally., p r-nirag is in progress in CIA/MR tou d.
the oatablisb t of eta Huh projects in
Fiscal Year 1957 for study of the productivity of labor
in the producers' goods i ustri e s of the USSR.
b. The Subcoastmitte a has defer review of its
requirements for collection of information pending
de tion of the areas of priority Bch
deficiency in its field of interest. It is plain
to undertske this work in the war future.
Review of Substae alive ftPere
a. Continuing its practice of the preceding yew, the
Subcc aaitteee re rad c f lly 3 pu'dsl.iahcd studies.
Copies of summaries of the group discussions are
atted. T h addition, the Subcommittee net with the
authors of CIA/ORB Project No. 33..1033, to read. and discuss
a draft of the report before publication. The. discussion
elicited suggestions for clarification of the subject
matter ubich weere welcomed by the autbo rs.
Two studies of recent publvication will be reviewed at
an early date, as follows a
CA/ A PR 130, The Optical I'nstru its Indastry of
Bast Gexm
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CIA/RR. PR-144, Sam Econowe Faces Affecting
Production of Capital Equi, nt in C et
China.
b. The following pass were reviewed in Fiscal
Year 1956:
The Abrasive Industry In the USSR (CIA/RR PR-103).
Postwar Divestments in Industry In the R (CIA/RR-54)
Air Target Study of Soviet Bloc industrial Resources,
Heavy Electrical Eciui ent (AIR 3-11)
CIA/0RR Project No. 34.1033, Implications of the
Planned loan in the So riet chine Tool and
talfoxmdang fi nery industries (in deft foam)
4. Review of Pg for .eraiLl Research
In accordance with DCII) 15/1, the Sub ttee
reviewed Air Forte External Eeoncmie Research Project "Planni.
Study of the Soviet ivy Machine Buiidi Industries (Phase ,
wthich vas currently in progress at the University of North
Carolina. It was concluded the project has a commndable
objective and is not duplicative of other work in process or
planned. It is proposed to review the substantive results of
tbo Vork on Phase I in the near feature in preparation for
consideration of Phase II when appropriate.
5. !!!stem ce of Agreed Basic Statistics
in view of the scope of previous work in this subject,
discussed in detail in its preceding asnnua report, the
Subcounittee did not press work on agreed estimates during
the past year.
In view of proced changes currently in effect in
Air Force with respect to t? ity categories under the
purview of the Snbccttee, it appears likely that Air Force
air tend to make more use Of CIA estiaaaatea than bas been its
previous practice..
6. Pro ects Undertaken at the Reqtxe8t of the EIC or
Propose-if
-the
t+aETC
Shortly before the close of the year the Subcaasa1ttee
cc m}?enced consideration of a request of the IAC Standing
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Committee on Exchanges for cent and ree Lions on
a Soviet proposal for an exchange of visiting delegations in
the forging press' industry. The Subca ittee will shortly
b
it it
su
a
s recceeendation for the inauguration of such
exchange visits to producing facilities, with suggestions
regarding pro,ladure and itineraries.
7. Intelligence ResearTechniques -- none
8. Special Coordination Functions of the Subcaiittee
None
9. Evaluation of the Role of the Subco ittee
a. It is felt that the Subcommittee has effectively
realized Its potential during the past year. In this
respect its effectiveness hair been enhanced by the
active participation of the Department of Defense
member, as well as the continued interest and coopers.-
tion of representatives of other participating agencies.
It is feat that necessity for the Subcc itte.'s
efforts declined during the year owing principally
to a re-alignaeent of Air Force activities in this
area.
b. The principal isgedit to the Subcanittee's
activities du g the year resulted from changes In
its measbershlp Bch prevented continuity of consid-
eration of problems under discussion. The Cub, -am,e
is pleased to welcome the new State Department member,
and also the recently appointed. Air Force member.
B. Future
*rogrea of the Subcandttee
In preceding phs there have been tedl. Item
c work which the Subcommittee vas not able to camplete during
the fiscal year. It Is the Subcc ittee's plan to bring these
items to appropriate conclusions as soon as practicable.
While the Air Force still maintains interest in the field
of industrial machinery and equipment, it does not presently
anticipate the production of substantive material on the scale
previously cloyed. It is apparent that the futxure activities
of the Subttee will reflect this procedural chaff on the
part of Air Force.
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It is probable that future production of
substantive intelligence will be confined largely
to CIA and, with respect to trucks and military
tractors, Army, G-2. The need for continued
functioning of the Subcommittee as it has operated
during the past 2 years has undoubtedly diminished.
Considerable progress has been made in estab-
lishing contacts between the participating agencies
at the commodity working level. Continued growth of
this practice may tend to supplant some of the
Subcommittee's former activities.
With the elimination of its backlog, and with a
re-alignment of Air Force activity in its field, the
Subcommittee will probably find less frequent need for
formal meeting than has been its practice in the last
2 years,
25X1A9a
ORR/D/I:HLD:lar (31 July 1956)
Distributions
brigs and 15 ,i Addressee
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