LATEST STAGE OF THE SHULTZ INITIATIVE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83M00914R001000030020-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: February 20, 2007
• Sequence Number: 20
• Publication Date: November 4, 1982
• Content Type: MEMO

Approved For Release 2007/02/20: CIA-RDP83M00914R001000030020-0
SECRET
THE DIRECTOR OF CENTRAL INTELLIGENCE
National Intelligence Council
MEMORANDUM FOR: Director of Central Intelligence
NIC #8950-82
4 November 1982
VIA: Chairman, National Intelligence Council
NIO for Economics
SUBJECT: Latest Stage of the Shultz Initiative
1. I attended an interagency meeting at the Assistant/Under Secretary
level at Treasury on the next stage of Secretary Shultz' negotiations on
pipeline sanctions, etc. A new US draft was prepared (see attached) and
there is agreement on almost all points. The only outstanding issues
mentioned were:
o Some differences with the French on the credit issue, although
these diffferences have been greatly narrowed.
o How to announce the agreement publicly.
2. The interagency group was asked to address not the substance or
desirability of the agreement on the "Shultz non-paper," which I gather has
been approved by the President, but rather what specific steps the US
should take once the remaining issues with our Allies are resolved. State
and Commerce indicated that they had tentatively agreed on the following
steps:
o Allow contracts for exports of oil and gas equipment and technology
signed before last December to go through, whether these were by US
firms or their foreign subsidiaries.
o For new contracts (post-December), withhold licenses where the oil
and gas equipment and technology is:
under COCOM controls
unique to US producers or licensees, e.g., large capacity
down-hole pumps
Exceptions might be made for US firms in cases of severe hardship.
All portions Secret SECRET
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3. These steps, if approved, would eliminate the retroactive element
of US controls. They would maintain the principle of extraterritoriality,
but only for unique US technology. They reflect an attempt not to put an
undue burden on US firms.
4. The next meeting of the Seven will take place this afternoon. If
there is agreement, a working group will be set up to implement it under
the sponsorship of the SIG-IEP.
Attachment,
As stated
Approved For Release 2007/02/20: CIA-RDP83M00914R001000030020-0