LETTER TO WILLIAM H. WEBSTER FROM WILLIAM PROXMIRE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00551R001200620004-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: April 18, 2013
• Sequence Number: 4
• Publication Date: February 2, 1988
• Content Type: LETTER

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EXECUTIVE SECRETARIAT
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4 Feb 88
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CHAIRMAN
WILLIAM PROXMIRE. WISCONSIN
LLOYD BENTSEN. TEXAS
EDWARD M. KENNEDY. MASSACHUSETTS
JOHN MELCHER MONTANA
JEFF BINGAMAN. NEW MEXICO
WILLIAM V. ROTH. JL. DELAWARE
STEVE STUNS. IDAHO
ALFONSE N DAMATO. NEW YORK
PETE WILSON. CALIFORNIA
JUDITH DAVISON.
EXECUTIVE DIRECTOR
Congress of the 'United.
JOINT ECONOMIC COMMITTEE
(CREATED PURSUANT TO SEC. 5(e) OF PUBLIC LAW 304. 79TH CONGRESS)
itshington, 3300 2o90
February 2, 1988 '
The Honorable William H. Webster
Director of Central Intelligence
Central Intelligence Agency
Washington, D.C. 20505
_._......_.
VICE CHAIRMAN
AUGUSTUS F. HAWKINS. CALIFORNIA
DAVID R. OBEY. WISCONSIN
JAMES M. SCHEUER. NEW YORK
FORTNEY H. (PETE) STARK. CALIFORNIA
STEPHEN J. SOLARI. NEW YORK
CHALMERS P. WYLIE, OHIO
OLYMPIA J. SNOWE. MAINE
HAMILTON FISH. JR.. NEW YORK
J. ALEX McMILLAN. wparreARocniak,,
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Dear Judge Webster:
This letter is to invite you to testify in the Joint
Economic Committee annual hearings on the Soviet and Chinese
economies. The hearing on the Soviet Union will be held on
Thursday, March 24, 1988, at 10:00 a.m. The hearing on
China will be held on Thursday, April 21, 1988, at 10:00
a.m. The hearings on both days will be held before the
Subcommittee on National Security Economics and will be in
closed executive session.
You may know that I have been conducting annual
hearings on this subject with spokespersons from the Central
Intelligence Agency andthe Defense Intelligence Agency
since 1974 in a series entitled "Allocation of Resources in
the Soviet Union and China." In 1986 and 1987, the CIA and
DIA presented their assessments of the Soviet Union as a
joint report on the same day. This is a useful framework in
which to receive official intelligence estimates and I would
like to use that approach again. I would like the CIA to
present a separate report on China.
Our respective staffs have had preliminary discussions
about the topics to, be covered. There has been excellent
cooperation on all sides, for which I am very grateful.
It may be helpful to you for me to indicate some of the
areas of interest to the Subcommittee. I would like a
review of Soviet economic performance in 1987 together with
an overall assessment of Gorbachev's initiatives to
restructure the Soviet economy. My understanding is that
economic performance was poor last year in most sectors,
with the possible exceptions of agriculture and energy.
What effects will poor performance, especially in industry,
have on the targets in the current Five-Year Plan? Is there
any evidence that Gorbachev is retreating or modifying his
plans to restructure the economy? What is the current
assessment,of the modernization program?
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Hon. William H. Webster
February 2, 1988
Page Two
I would like a full discussion of Soviet defense
spending and related issues. Is it possible to assess
Gorbachev's defense policies and the changes he has
introduced? Please provide a breakdown, on an unclassified
basis, of Soviet defense allocations along functional lines,
including strategic offense, strategic defense, conventional
forces, naval forces, and tactical air forces, so that we
can understand the recent trends. Is there evidence of any
significant reductions or increases in spending or
deployments in any of these areas or in any regions of the
world? Is there any evidence of a shift in priorities as
between defense and civilian allocations?
I am also interested in trade issues. Please discuss
recent developments in the Soviet trade sector and relations
with the United States, Western Europe, and other regions of
the world, including China. Does Gorbachev perceive the
United States as imposing a "technological blockade" on the
Soviet Union, and if so how much importance does he place on
"breaking" the blockade? To what extent has the USSR been
able to obtain Western technology controlled by the United
States from other sources? Does the lack of access to
Western technology constitute a substantial constraint on
Soviet economic development and growth? Is it likely that
the recent US-USSR summit and other developments will lead
to greater Soviet access to Western technology? What
significance do you place on the Soviet efforts to enter
into joint ventures? Are the Soviets likely to pursue
efforts to join international institutions, such as GATT and
IMF, and what is the significance of their initiatives in
this direction.
I am deeply appreciative of the efforts that go into
these preparations, and I look forward to another productive
exchange.
? Cpre
WP:rkt
WI 'ham roxmire
Chairman
Subcommittee on National
Security Economics
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