PIPELINE BAN WAS DOOMED FROM THE START

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00965R000100150019-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: August 29, 2012
• Sequence Number: 19
• Publication Date: November 26, 1982
• Content Type: OPEN SOURCE

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Declassified in Part -Sanitized Copy Approved for Release 2012/08/29 :CIA-RDP90-009658000100150019-8
THE WASHINGTON POST
26 NOVE1v~BFR 1982
? -down in Poland. But the- Polish sit- it was too late. So in June, at the
Plpel one Ban uation was getting dangerously out':.' economic summit. in Versailles, Rea-
`~ ~ ~ ; of hand iti the late summer and fall ~ gan made an impassioned plce to the
'has ~OOn1eCl ~~ of 1981.: ~ - allied leaders to support the U.S.
_' ~So the Soviets had to?make sate sanctions. Then-chancellor Helmut
~'`" ~ c ,~~ of their pipeline supplies from the1 Schmidt. of West Germany didn't
~rOm ~ t~e. Jtart Weat before they took'action in Po- even look at Reagan, but gazed `out
' "` '' ~``~ " `~? land. that might lead_to a U.S. em=~ the window.at the gardens. ~ ~ -
President Reagan's pipeline em= ~ bargo. They met their'deadline--just. When the allied leaders wouldn't'
bargo was doomed from the start., ~ barely. .~' ,.: {'~; support the U.S. position,'a furious
The Russians, in league with our '-; -On Oct. 22, 1981," the,Sov~et put=' Reagan responded later that month
West European allies-the French, "',;.chasing agency, Machinoimport; an- , by extending the embargo to Euro-
West Germana and Italians-outma- .~~nounced a contract with the French: peen affiliates of American, compa-
neuvered the White House at every ` -firm of Alsthom-Attantique for 40 nies. But here, too,` the Russians
step of ~ the year-long international "spare General Electric rotors. Ronald were way ahead of him. ' ~ `. '
~~,
power play - ?s Reagan's one-time .employer makes Two things had happened
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precedented~ pressure on the West ~ bem ainst a U.S.~.emb o that This meant the Russians would':be
Europeans, wha of course were 'not would block the GE equipment at its able to apply penalties for non-de=
-all that reluctant to inak~ a few mil-~ source .. ~.,; ;, .. livery directly on the subcontractors, ,
lion francs; ~ marks or Tire by under- ; In November and early December, 'who could thus be counted on to add
cutting the Reagan administration's _ while the situation in Poland contin- .their weight to.the anti-embargo lob-
sanctions.~ .- ~ ,:-~
The evidence--secret contracts ~`= ued , to deteriorate, ..the Russians hying effort. _
worked frantically to het their final .Even more important .was .the
Signed ;by-~:Eucopean -,companies to ''`contracts with the West signed. Rep- Russians' insistence on rewriting the
sell flue. Sovieta~'tha machines and ' resent~atives of Creusot-Loire, anoth? so-called "force majeure" contract
matetisl ~ they needed: o build the ~ er French company, arrived in Mos- clause 'that absolves a supplier. of ~
pipeline that will. bring Siberian net- scow -for high-level. negotiations for .responsibility if it is prevented from
ural gee,: to Western,.. Europe=has : ~ ~~p million worth of chiller plants delivery by "prohibition of export. or
been seen by my associate Dale Van `~' on Dec. 12. On Dec. 13, martial law import, or any` other circumstances
Atta. White House and. intelligence ~~'was declared in,Poland. beyond the reasonable control of the
sources provided . defails of the ~ .. :On~ Dee 14; the negotiations with parties,...... " .: =,; . ,~,: d. t? .~ .
.Kremlin's stux~ssfuh strategy. Here's ,~ Creusot-Loire were successfully con- The .standard reference to,.,"pro-
the story.' 4 -: ` ~ - ~ ~ eluded. Two weeks later; as the Rus- hibition~ of export?. or other goverxi-,
7 ~..
The.. Russians knew they., would ' suns -=had guessed, `-Reagan . an-: mental action was deleted. In fact,.
need .th~~superior western equip- ?::~ pounced r the embargo.:on sales?-of the contract went further 'and re-
ment to baild.the pipeline. They also pipeline.;equipment,,to ;the Soviet quired the supplier.to~offer the Rus-.
knew trial"'a TTS. embargo would be ~~` Union. ~: = ~,: -;. slaps alternatives ~f export licenses-
the likely response to a Soviet crack- -.. As the White Housq ,soon, learned,f : couldn't be obtained ~ ~ _. - `;,.
t
ta
ic
Sonet t _e o s roug un ;:.Soviets were obviously hedging their dealing directly with'subcontractors.
First,
ov
ets
a
insiste
the
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'~ the best rotors in the world, and the
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ial ~ b h
d ff
Declassified in Part -Sanitized Copy Approved for Release 2012/08/29 :CIA-RDP90-009658000100150019-8