MEETING WITH AMBASSADOR HOLMES AND PARTICIPATING MEMBERS OF THE SPECIAL STATE-DEFENSE STUDY GROUP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP70S00385R000100260010-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 15, 2016
• Document Release Date: December 9, 2002
• Sequence Number: 10
• Publication Date: July 24, 1967
• Content Type: MFR

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M I4+ORAlillli i FOR TIM Me=
SUBJECT : Meeting xith Ambassador Nelms and Participating
Members Of the Special State-Defense Study Group
CIA PA TICIPAWS;
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1- Pe,ckd t The Study Group has been. engaged in
producing a paper entitled, "Near last.. Verth Africa, and the Horn
of Africa -- A reed American Str gy." The Office of
Economic ]Research ? < ) ~.~coommirt~ted to ,ply.} an annex
ttc ~ y
ei t t t , ode Ta: and Poepects, " which was delivered
to the Study (oup on 14,iuly. The Study tr+oup advised us
on 20 July that the Olin e-ft did not meet its needs, in
spite of' the fact that it adhered to an outline which had
been sulmitted to the Study Group on or about 5 July, and
to whici, no objection bad been entoxvd. On 21 July, the
Study Group ^uppl.ied M _ with a outline. The purpose of the
meeting vas to discuss the new out a and the time within
which Oil could supply the information requested by it.
2. Ambassador Holmes opeond the meeting by saying he
appreciated that QER had ?y other coemaitaente, particularly
during the Arab-Israeli var. He oleo noted that misunder-
standings had arisen because of a breakdown of communication..
apparently alluding, eimong other things, to the failure of
the Study Group to object to the ORR outline whan it was
presentei. Ambassador Ecimee expressed his at cietion for
the Agency's cooperation.
3. I said that we bed indeed been deed to receive
the revised outline on the 21st of July., in view of the apparent
acceptability of Our dicer outline. The 1 -esador remarked
that through an internsl failure, he had never seen the
original outline. I stated that it would be useful to
review ?*tat had happend since it had &*o bearing on what
could be done now. I pointed out that througut, there had
been a conflict between Mat the Study pup ideally re-
quired and the time the Study tip had given us to produce
the anne:c. If an effort were to be made to revise the
economic annex in accordance with the new outline, much
State Dept. review completed
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more time would be required to do a decent job than had
been available in the past.. MaroovWP there were some things
which could not be done at all, because of a lack of basic
data, and others which could only be done in a time spas
much beyond any VhiCh the Studq thfup could contemplate.
Within these limit?tic*s, 4 take of a docent
revisiaa would require eiX to eight weeks.
4. Ambaesmor Hoimee then asked the meebers of the
Group to ant on the possibility of holding up final
distribution of the etu y until an tic annex could be
produced in six to eight wee M. Several members, including
Captain Alexander, VMff.. E .t of all", said that the
study really ought to be -liebed in its, final form within
the next; week or two - , of Most use mad that it would
be bettor to do without an ec mic nex than to delay the
Paper for as mueh as, two months. )jr. Lewis, the State
repre+ ntativ , made the ortia kt -observation that it
would peWhepa be better if E # a -assets were held in reserve
for a additional. studios which Might be generated by the main
report.
5? At this point the CIA, representative
o n the Study gip, r e an uatf *ate intervention. He
urged that an economic annex beprepared in the period of
time that I had specified, and that the in stud fares rd
in the meantime without the sec. pointed
out that the meft re tjane of the study could stand
without the annex 9, Be ver ; euVP&~ by r other member of
the group.
6. I remarked the the discussion so for had seemed
to reveal two things. Th* first we that the main f` ndings
and recotr mendatim,s of the Study p paper were not very
sensitiv to the presence or absence of an economic annex.
I suggesi e4 that if this were the case., and if it were also
the cane, as Ambassador 116,1m e bad remarked earlier, that
US econo jc policy initiatives could not be undertaken for
some tune, it might be better to scrub the economic annex,
since there was no point in doing something which would not
be of much use. If, on the other hand, a decision were made
that an ccontaamic annex was necessary., than the conversation
indicated that the was Willy no need for CO to adhere to
a 6-8 week schedule, which had been bowed on a compromise
between, rg cy end the time required to do a fuller job.
Under these circumstances, it might be better it M were to
take three or four months to do the job.
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7. Anbeesador flab a Vat he was having a meeting
at 3:30 with General VhaguMr, accordi to Ambassador
Holmes, has 'managerial e ' over the paper. He also
was plazming a meeting veer N with the Senior B 1icy Group.
He proposed to l the following two alt natives before
General ti feeler and the Policy Grau :
a. Publish ' study very soen without an
safe fix.
b. Publish the study very soft Vi tbout an
e0MOM a anoex$ but aak On to evpP4 ime within
th:t to four =Wtht for separate Publication.
8. 11ri.ng the dive ion, the Group that tbaw
should I e no smote PAY010110 4=M, and also agreed that
{ had r been asked to le one. It wag mutually
agreed that the c .c ammac waWA contain a section on
etrolanan. This secti.E would not, as Ambassador Holmes
gut it, discuss "petrole n qus petrole nn, u but only in
the Context of its efface at fb* rtb s d development
pxospecta of the couxztr1*4 covered. This tats a aaentially
the tre Etment that had b given the subject in the (
I*per av nitted to the ftAr ;Troup on 14 Jule.
9. It was agreed that if a decision wears made to
write a new ecr is annex, would not necessarily
rigidly follow the Study Group outline on 21 July, but
would conform to it as closely as possible.
10. Ambassador lr s would like the new aaa ax to have
a section on the effects Q f the Arab-Israeli war on the
e0onimies of the curies ce ced, acme iticaaal sub-
regional analysis, more projections, more de' ail can some
of the c auntrie s, and a bee fed up petrole section. I
pointed Dut, in this tic, that our resources were
limited, and that we had bow able to study only a few of
the countries of the regUm in any detail. Never, jr,
some cases, lack of data would necessitate a rather "thin"
presentation.
script, 25 July 196'x'., 25X1 A
11. The above infanx tjon was conveyed to the ? 11ThII
at a eeenton immediately after the meeting. later in the
aftexnooct, sal } to MY that the meeting
of the Seen or licy traup would not be hold until 21 August.
In the meantime, Ambassador Holmes had net with General
Wheeler, and General. eler bad said that it would be
~r.A Ar.
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der-irab:Le to have an ocommia we" j thomfore, we should
go aheet. I e reseal * a to that the
agreemenxt reached at that the op , on iWU 1*
Ova 4
put both to Genwal Whee the Senior Policy Or
sot bee adhered to. r` him that I assumed he -was
acting as a CIA representative on the study group, and that
I vaz s1 we h ap ciated the diffeerenoes between a unilateral.
decision by 4owula Wheeler on t -incurred in by the Onior
Policy group, on ch 1 sat. I told him that I mould
call th' development ip the attention of day ; ipaal.s, who
sou then decide why to accept the situation or to speak
further with Feral. r e fer a or Ambassador Holmes . I
told I that ifs decision "re made to go Behead
with thei amum., we would produce it in a 3 or 4 meth period,
no agreoad to at the meeting. 25X1 A
12. I called the A/r/I and him the above info ration.
Dr. Proctor ? eluded there wow- thing we could do but go
eed w.th the wam. is asked me to adfse at this
new deeveslopment and of his decision, since Iwas going 25X1 A
to a meeting at 10 o'clock today. Dr. Proctor also suggested
that a iLraft tollDwing the new outline actual .4 be written
now so :ter to reveal the art in which edtttional research
w s nece:esary. I conveyed all, of this to asked 25X1 A
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]proceed, and to repast tol that we plan to take 25X1A
3 or 4 t oaths to do the - , ] escri on at the meeting.
"5'
Acting Deputy rector
Econwic Research
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