PRESIDENTIAL BRIEFING -- 2 MAY 1988

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CIA-RDP89G00720R000300070001-0
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RIPPUB
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T
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74
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December 23, 2016
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July 30, 2012
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1
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Publication Date: 
May 2, 1988
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MISC
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Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 STAT DDCI CHRONO - May 1988 Date/Subject 2 May 16 May 16 May 17 May Presidential Briefing for DCI. STAT STAT STAT STAT Note to DCI re INF meeting. Note to DDI re OGI study of historical results of economic embargoes and sanctions. 18 May Letter to Maj Gen John Morrison, SASA, sending along "four maxims of the 1980s' intelligence officer." 18 May 18 May 19 May 20 May 20 May 24 May 25 May 25 May 31 May 31 May Memo for D/OP re FY-88 SIS Position Request. Note to Kathy thanking her for work on briefing books or Europe trip. Letter to Mr. Charles Muller, The American Ditchley Foundation, withdrawing DDCI acceptance to participate in the 7-9 October conference. Letter to Tom Polgar thanking him for letter and Safire article comments. Note to Larry Gershwin, NIO/SP asking for his views on article on Critical Themes in Soviet Thinking About Nuclear War. MFR re DCI/DDCI Conversation with Senators Boren and Cohen regarding IG. Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Next 3 Page(s) In Document Denied Q Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Talkinq Points -- Situation with the SSCI 1. The Senate Select Committee has been pushing the Intelligence Community and the Administration now for two fiscal years over the lack of money for investment in new collection capabilities. We have tried to work this problem inside the Administration but have found that the unwillingness of anyone to go outside the budget agreement and the priorities in the Defense budget together have made it impossible for us to make progress on the problem or with the Committee. 2. A few weeks ago Senator Boren met separately with you, Secretary Shultz and Secretary Carlucci to express his concern about the lack of resources for new collection programs and to try to stir interest in the Administration either in finding additional resources or to seek a supplemental that would go outside the budget agreement and add new money to the Intelligence budget. He offered to lead the fight on the Hill. As a result of these meetings he felt he had a commitment for a joint Administration Congressional push for a supplemental budget amendment to cover these new programs. He also claimed to have the 1 SECRET Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 support of the Congressional leadership in both houses for such a step. 3. In the ensuing weeks, perceiving no action from the Executive Branch, he and others on the Intelligence Committee decided to take matters into their own hands. 4. While their approach certainly has grabbed everyone's attention, it is in many respects a highly irresponsible way to proceed. I know that Frank will describe for you the implications for the Defense Department budget for FY-89 of losing 5. But the real pain for both the Defense and Intelligence budgets is the cost that would be involved in the next three to five years. 2 SECRET 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 25X1 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 -- To fight the Senate Committee. This would involve actively working with the House Intelligence Committee, the Armed Services Committees and the Appropriations Committees to reverse the budget decisions made by the Senate. If successful, this would involve leaving this longer range problem of intelligence capabilities to your successor. 4 SECRET Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 NISTRATIVE - INTERNAL USE ONLY 16 May 1988 SUBJECT: Payment for Charges Incurred by the DDCI for Representational Purposes Payment from U.S. Government funds for representational expenses incurred by the DDCI for the purpose of conducting official business of ' y set forth in for the following functions: Date Name Organizational Affiliation 88.04.19 Robert M. Gates (host) DDCI Dr. Roy Godson Consortium for the Study of Intelligence Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 25X1- POINTS TO BE MADE BY THE PRESIDENT AT MEETING WITH EN TO B REN ND EN -- I appreciate your strong interest in ensuring that we have the necessary intelligence resources to support our national security objectives, including arms control. -- Obviously, having sufficient intelligence resources is a critical element supporting our commitment to effectively verifiable arms control agreements. I will not send you a Treaty for ratification that cannot be adequately verified. -- I understand that Judge Webster has shown you the package of new initiatives for FY 1989 that we put together to meet our intelligence needs for both arms control and our broader national security interests. The work you have done in the SSCI over these past years and the proposals put forth in your FY 1989 markup provided significant contributions to our efforts. -- We are still looking at ways to fund FY 1989 within the four corners of the budget summit agreement and how to accommodate the outyear funding requirements. -- The substance of the statement on this issue, that you have drafted, looks Ok. -- We are looking forward to working the issue of improved national technical means with you and hope that we can count on your continued, active, support of our national security initiatives. 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Proposed Statement of the President Regarding a Program to Improve Our National Technical Intelligence Resources c~V1M,S l.~I~IV'R~-~ rL8Vb1 ~~K ~~~~P~ I strongly support bipar isan efforts by the Senate Committees on Intelligence and Armed S vices to work with the Administration to modernize and upgrade ou ~ ational Technical Intelligence Gathering'-~~ Systems. It is important as we work toward future arm reduction agreements that our country have all of the Lechnical means ~ necessary to assure compliance with these agreements. With or without future arms control agreements, it is important for our national security interests that we keep pace with changes in technologies in other nations. For that reason, I welcome bipartisan support to start this year on a multi-year program to improve these systems. I will also include funding for the second year of this program in the final budget which I submit to the Congress, and I will urge the next administration to assure continuity of this vital effort. It should be regarded as a separately funded national priority and the funds appropriated not counted as a penalty against the regular national security budget. Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 25 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 ., I ~ DCI Talking Points for Tuesday, 17 May 1988 Between President, DCI, et al, and Senators Boren and Cohen, Chairman and Vice Chairman of the Senate Select Committee on Intelligence 1. Thanks to the support of the President and the Congressional Intelligence Committees, the Intelligence Community has been greatly strengthened during the past nine years. 2. The reason we are here today is because we all understand that this is not an enterprise that can stand still. The , new capabilities we are deploying in the late 80s are the results of investments made up to ten years ago. 3. If we are to adequately. protect our national security in the 90s and beyond, we must start those investments now. 4. The approach we are endorsing today is needed, substantively sound, and highly responsible. It will protect wide ranging national security interests and contribute to future arms control. 5. As both Frank and I have stressed repeatedly, with the magnitude and nature of current commitments, we simply cannot pay for these improvements .out of existing or programmed budgets. We will have to depend on the Congress and the next Administration to ensure that the additional resources are available to meet these needs. 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 . ~, Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 ER 1726/2 88 17 May 1988 NOTE TO: Deputy Director for Intelligence FROM: Deputy Director of Central Intelligence 1. In a session with the editorial board of the Wall Street Journal a few weeks ago, I made reference to our analysis of the historical results of economic embargoes and sanctions. I have subsequently received a request that that ~~ 25X1 II25X1 study be made publicly available. 2. I would like to have the study OGI did several years ago reviewed to see if it could be sanitized and published unclassified. Every Administration seems to want to resort to sanctions or embargoes at some point without fully understanding the prospects for success, the historical record and the relationship between objectives and achievement. The end of this Administration would offer an opportunity to publish the study at a time when it would presumably cause us the least controversy and trouble with the Executive Branch. Indeed, we could even consider deleting one or two of the most recent examples to avoid stepping on toes. ~ ~ 3. I would appreciate your getting this underway. If you have a problem, obviously get back to me. Robert Gates cc: D/PAO C/ISD/OIT 25X1 DDCI/RMGates/de~ DISTRIBUTION: (w/incoming and response) 0 - Addressee 1 - D/PAO 1 - C/ISD/OIT 1 - ER 1 - ,DDCI- Chrono ~Fa ~i ~i:i_.,s CONFIDENTIAL CL By Signer Declassified in Part - Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 EK l /16/ 1 ~iti The Dcputv Dirrctor of Ccntral Intclli~cncc WashinSlon. D C :0505 May 17, 1988 Mr. Daniel Henninger Chief Editorial Writer The Wall Street Journal 200 Liberty Street New York, N.Y. 10281 Dear Mr. Henninger: Many thanks for your note of 29 Rpril. I too enjoyed the session at the Journal and look forward to staying in touch. I am using the occasion of your letter to ask for a review of our study on economic sanctions to see whether it can be declassified. I share your view that having this study publicly available would be worthwhile. You may rest assured that if we decide to declassify the study, I will send you one of the first copies. Again, I enjoyed the opportunity to meet with you and your colleagues. STAT STAT DDCI/RMGates/d~ DISTRIBUTION: (w/incoming) 0 - Addressee 1 - ER 1 - DDCI Chrono Regards, Robert M. ates Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 .F ~ ~~sutive Reg~~t~Y t ss:1~2~x THE WALL STREET JOURNAL. DOW JOKES & COMPANY, INC. Publishers DANIEL HENNINGER CHIEF EDITORIAL WRITER April 29, 1988 Robert Gates Deputy Director Central Intelligence Agency Washington, DC 20505 I enjoyed talking with you the other day here at the Journal. You mentioned a study you did awhile ago on the effectiveness of economic sanctions. Insofar as I can probably expect economic sanctions in some form to resurface periodically over the next 20 or so years, the study sounds like something very useful to have on hand. If you can spars: a copy, I'd love to see it. Regards, DH:gb Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 :THE WALL STREET JOURNAL. DOW JONES & COMPANY, INC., PUS LISHERS ~~200 LIBERTY STREET- NEW YORK, N. Y, 10281 ~''~, ~' Deputy Dire r ~~ ~ ~ ry".. Centr. al Int~-r~igence AgenC"y Washington,~.~ 2~(5~~',., / !~ ~ , ~ ~~,_- ~ x ~.;, ~, ~ - ~ ~ti; U S.~OSfiAGt: a i m l 6d . 4.. eJ x 1, ti ~ ~ Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 CIA- R TO: WMB ROOM NO. BUILDING REMARKS: Bob Gates wants to send this letter if you have no problem with it. Nd'`~ J FROM: ROOM NO. BUILDING EXTENSION FORM NO. REPLACES FORM 36-8 (47) 1 FFR 56 241 WHICH MAY BE USED. Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 ~ ROUTING SLIP ACTION INFO DATE INITIAL DCI DDCI EXDIR 4 D/ICS 5 DDI 6 DDA 7 DDO 8 DDS&T 9 Chm/NIC 10 GC 11 IG 12 Compt 13 D/OCA 14 D/PAO 15 D/PERS 16 D/Ex Staff 17 18 19 20 21 22 STAT ~' cecutrve ecretary _ 4 May '88 Date 3637 ~10-81~ Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 The Deputy Director of Ccntral Intelligence ER 0545/5 88 Washington. D. C. 20505 18 May 1988 Maj Gen John E. Morrison, Jr., USAF (Ret.) Security Affairs Support Association 80 West Street, Suite 110 Annapolis, Maryland 21401 Thanks for your note about the SASA Spring Symposium. Below I list what I described in my talk as the "four maxims of the 1980s'intelligence officer." The part about finding them in John McMahon's desk is fictitious; I was just pulling John's chain. 1. If you want a friend, buy a dog. 2. There is no job so simple that it cannot be done wrong. 3. A man who can smile when things go wrong has thought of someone he can blame it on. 4. When the going gets tough, everyone leaves. Reds , Distribution: Ori~_ ssee Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-OaT ?~?L\L\iV 11 ~ .'. VL~l\JJ 1 Al\l ROUTING SLIP ACTION INFO - DATE INITIAL 1 DCI DDCI X 3 EXDIR -d' D/ICS 5 DDI b DDA 7 DDO 8 DDS&T 9 Chm/NIC 10 GC 11 IG 12 Compt 13 D/OCA 14 D/PAO 15 D/PERS 16 D/Ex Staff 17 18 19 20 21 22 STAT xecutive Secretary ~ Ma~v~R 52 Date 3637 (io?ei~ Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 Announces The Opening Of Its New Headquarters 1 April 1988 Suite 120, 2662 Riva Road Annapolis, Maryland 21401 (301) 841-6555 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 PRESIDENT John N. McMahon Lockheed Corp. EXECUTIVE VICE PRESIDENT John E. Morrison, Jr. The MVM Group, Inc. SECRETARYfTREASURER William H. Parsons GENERAL COUNSEL Daniel B. Silver, Esq. Cleary, Gottlieb, Steen & Hamilton BOARD OF DIRECTORS CHAIRMAAr Mercado A. Comer Vitro Corp. MEMBERS Craig Alderman, Jr. Dep. Under Sec. Defense (P) Lawrentt F.Ayero Defense Mapping Agency Dr. James H. Babcock The MITRE Corporation James O. Bush Planning Research Corp. George R. Cotter Netionil Security Agency Dr. Roger K. Engel U.T. Atorden Systems, Inc. Charles A. Hawkins Dep. Asst. Sec. Defense (I) Lt. Gen. Edward J. Heinz, USAF Intelligentt Community Staff Jimmie D. HiB Dep. Under Sec Air Fora R. Evans Hineman Central Intelligence Agency Anthony J. Iorillo Hughes Aircraft Co. Donald B. Jacobs Boeing Aerospace Co. Robert J. Kohler ESL, Inc. Maj. Gen. John E.Kulpa, USAF (Rat.) Eaton Corp. Frank J. Lewis Harris Corp. Gordon O. Moe Pacific Sierra Research Corp. Gordon E. Myers IBM Dr. Val P. Feline Lockheed Elettronic Systems Gp. L[. Gen. Leonard H. Perraots, USAF Deferoe Intelligence Agency 26 April 1988 The Honorable Robert M. Gates Deputy Director, Central Intelligence Washington, D.C. 20505 The SASA Spring'88 Symposium is now but a memory--but what a memory! Within hours after the program was concluded, we received numerous phone calls and a day or two later, many letters, all extolling the quality of the affair. We, of course, expected nothing less and are exceedingly pleased that our expectations have been enthusiastically con- firmed. For your outstanding contribution to the successful outcome of the Spring program, SASA will be long indebted. orrison, Jr. neral USAF (Rat.) P.S. If agreeable to you, would you please have someone provide me with your four "homilies"(?) allegedly found in John Mc Mahon's desk. We've received a number of requests for them and if you have no objection, I may include them in our next newsletter (non-attribution if you wish). 6 80 West Street ~ Suite 11'0 ? Annapolis, Maryland 21401 (301) 269-5424 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 ~~~_ ,_ \Rrtl-tom.,, ..Xw, - , _' ~--+~,~..,:,..~r The Ha~a.orable Robert,~T:` Gates Deputy-`~Dir~ii~~ Ce 'teal Intelligence Washington, D. C. ~05 ~- 80 West Street ? Suite 110 ? Annapolis, Maryland 21401 ? (301) 269-5424 ~ . . , . . . Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 ~ ~ ~~ Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 J L.l, iCL. 1 - - - - ~- ER 2036 88 18 May 1988 MEMORANDUM FOR: Director of Personnel FROM: Deputy Director of Central Intelligence SUBJECT: FY-88 SIS Position. Request 25X1 25X1 ZbX1 1. Your recommendation that I approve new SIS positions and request an increase of~in the SIS cei ing in FY-89 as well as in FY-90 is disapproved. 2. I believe we have become entangled in a bureaucratic game. I have been asked over the last two years to go to OMB to seek additional ceiling to close the gap between the number of SIS positions and our SIS ceiling. I have done this. Now that we have closed t~ he crap somewhat, I am being asl~ed to 3. The P.gency now has many it~ore SIS (or supergrade) positions than it had at earlier times when our strength was at or near its present level. I believe bureaucratic momentum continues to force us to justify any position that might possibly qualify as an SIS position and then to continue to ask OMB for large increases ing. I believe this is not carefully thought out. ~~ 4. As is usually the case, if we abuse the system, we invite the kind of external scrutiny that we dislike so much. As our growth rate in personnel levels off, I believe so too should our increases in SIS ceiling and SIS positions. I am willing to consider small incremental additions to SIS position and ceiling levels but not without justification for the specific positions. Continuing to go after these large numbers 25X1 25X1 is not acceptable. R es Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 SECRET Cl By Signer DECL OADR . Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 - .ter,;-~, ;~~., - .f R?UTi~C~ ~N~ R~C~R~ SFdEET SUBJECT: (Optional) FY1988 _S_enior Intelligence Service Position rR.eR gu~s:~s.=,~.r..,~_~--~ _ FROM: ~ Er XTENSION Royal E. Elmendorf NO. ~r.- y ! ~~_ ~ -> - Director of Personnel --- J DATE r....~...o .,..~~.,..,.- r-........,. K.. n: :,.- , TO: (Officer designation, room number, and DATE building) OFFICER'S COMMENTS (Number eoch comment to show from whom RECEIVED FORWARDED INITIALS to whom. Draw a line across column after each comment.) i 1~ Executive Registry I ~;'~.~._- Attached are the FY 198,8 SIS 7E12 Hqs. ~ position rec{uests. In light of -- ------------- -- -------- -- -- --- --- ---- d d t i 15 A il .your memoran um a e Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Next 1 Page(s) In Document Denied Q Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 ,_. Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 ... The Deputy Director of Central Intelligence 4Yashington. D. C. 20505 May 24, 1988 Mr. Tom Polgar Thanks for your letter of May 5 enclosing, the Safire article and commenting on it. We in the Agency find ourselves in a very odd position with respect to the current state of the Soviet economy. No-other institution has been as rigorous as we over the past dozen years in identifying and highlighting for policymakers the serious economic problems of the Soviet Union, from the machine building industry to agriculture to the energy sector to the sorry plight of the consumer. We found during that period that many people tended to discount our concerns about the economy and the consequences for Soviet economic and technological performance and competitiveness and, even now, believe we are too pessimistic. By the same token, people of a different political view were unhappy with us for not pressing the point of serious Soviet economic problems to forecast the collapse of the system. Indeed, our observations as to the huge latent economic wealth of the Soviet Union, if in no other area than in natural resources, and its ability to produce basic goods were the cause of considerable frustration and annoyance with this Agency. In short, our work on the Soviet Union for years has been criticized both by those who think we have been too optimistic about Soviet chances for muddling through and those who think we are too pessimistic about the prospects for real improvement. One of the points that I have made consistently (and judging from your letter, I think you would agree) is that in many respects GNP, the state of the consumer, and so forth have Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 .? had relatively little to do with Russia's role as a power on the international scene. Russia was never competitive economically with its European adversaries from the 16th century on. Its armies always were technologically at least one step behind its adversaries. But, as you know, the fact is that the Russians and then the Soviets have survived and prevailed because of their relentlessness and their ability to .put more in the field than anyone else. Also through their own wit or through technology theft, they have managed to keep their military forces competitive. In specific areas in which they choose to devote the resources, their technological innovations and advances can rival if not exceed those of our own. While our technology in the laboratory may be significantly more advanced than theirs, it is often the case that the technology that they actually deploy to the field is equal if not superior to that which we eventually field given delays and our inability to freeze technology to get on with production and deployment. The best example is that it is the Soviet Union and not the United States that has a deployed mobile ICBM (and two of them to boot). All of which is to say that Soviet economic developments do not correlate well to its military power. And, I agree with you that it would be a serious error "to conclude from the obvious and lasting contrasts in the socioeconomic and industrial standards that the Soviet Union is weak." After two of his articles appeared, we invited Bill Safire here for lunch to try to explain a good deal of this, but I'm afraid we made little headway. It was good to hear from you. Thanks for your offer to participate in any competitive analysis we might organize with respect to the Soviet economy. I will pass it along to the analytical folks. STAT Sincerely, STAT DDCI/RMGates/d DISTRIBUTION: a copies with incoming) 0 - Addressee 1 - DDI 1 - D/BONA 1 - ER ~-1 =DDCI Chrono~ ', Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 May 5, 1988 The Honorable Robert M. Gates Deputy Director Central Intelligence Washington, D. C. 20505 The enclosed article impels me to write to you. I am as much of a Soviet expert as Bill Safire and I have been at it a. lot longer. Americans have misestimated on the Soviet Union since 1917 when the American Embassy in Petrograd cabled that "impossible for the Soviet government to last long." U. S. estimates buried the Soviet Union in the summer and fall of 1941. We continued on the same false track after the second World War by underestimating Soviet technological capacity and by overemphasizing military capa- bilities while giving little weight to the logic of history-and to Soviet intentions. For some seventy years now U. S. social, cultural and political bias have interfered not only with objectivity but also led to disregarding the facts of history_along with the truly funda- mental differences between the two countries. Leon Trotzky wrote in 1929 that "the funda- mental and most stable feature of Russian history is the slow tempo of development, with economic backwardness, primitiveness of social forms and low level of culture resulting from it." Every strong ruler of Russia, even some of the weaker ones, felt the need for more rapid economic progress. Each had his own version of perestroika and several have experimented with varying degrees of glasnost. Most notably Ivan the Terrible, Peter the Great and the Czars (continued) STAT Declassified in Part - Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 Alexander I and II had major successes in economic restructuring but Russia proved to be too bigf too heterogeneous and with too bad a climate to permit rapid, sustained and even development of the economy. Then came Lenin with his New Economic Plan. Even Stalin wanted perestroika. In February 1931 he proclaimed that "we must no longer lag behind... must put an end to backwardness in the shortest possible time and develop genuine Bolshevik tempo in builiding up the socialist system of economy..." Twenty-five years later President Eisenhower said that in a-four-hour session he had with Stalin "damn near all he talked about was the essential things his people needed -- homes and food and technical help..." Since then the gap between the Soviet Union and the Western world decreased in many respects, but the Soviet Union will never be like Denmark, or Canada or the United States. Predominantly constructive changes in the political and psychological climates since the death of Stalin have continued under all of his successors. In 1954 Emmet John Hughes reporting from Moscow claimed that "authority and austerity, in their Stalinist extremes, were fast slipping from fashion as the new bourgeoisie of Soviet bureaucracy both sighed with relief at the curbing of secret police powers and sighed with longing for more decent consumer goods in homes and stores." There have been and will be changes in the Soviet Union but the differences in standards between Russia and the Atlantic community -- firmly established by the fifteenth century -- will not be eliminated. This has nothing to do with communism. I remember my father telling me stories about the backwardness of Russia, based on his experiences there as a Hungarian officer in World War One. (continued) Declassified in Part - Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 It would be a terrible error to conclude from the obvious and lasting contrasts in the socio-economic and industrial standards that the Soviet Union is weak, or that its relative backwardness in comparison with the consumer- oriented societies could be exploited to gain military or political advantage. I see no grounds for believing that Gorbachev wants anything other than a more efficient, and if possible also more humane, communist regime. Bill Safire raised the possibility of putting stresses on the Soviets until they reduced their empire. In the long history of Russia this has never worked. Despite economic hardships and personal inconvenience, the Russians have always rallied in face of external pressures. It follows that a mutually more comfortable and less expensive co-existence with the Soviet Union could be secured only through discussions based on mutual respect and with proper regard for the principles of quid pro quo. If you do form a "Team B" I would love to contribute my operational background and practical experience to such an exercise. Sincerely yours Declassified in Part - Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 Declassified in Part -Sanitized Copy Approved for Release 27 ESSAY ~ William Safire' Through New Eyes WASHINGTON wo recent articles in this space T registered close to 7 on the MEGO (My Eyes Glaze Over) Scale. Their import was that glasnostic revelations out of the Soviet Union show that the Soviet economy is much smaller han wP thoueht it was, which means that the Kremlin is un~Tc e~~r Erygar~r pressure than we im8gined to r d ~cP its snendin~ on If true, these revised estimates of Soviet growth would knock ski-whiffy our most cherished intelligence as- sumptions, and be of considerable use to the President at the Moscow sum- mit. One reader did not yawn. He is Wil- liam Webster, former Federal judge and .F.B.I. Director, who is now the Director of Central Intelligence. Director Webster called to say cheerfully "maybe somebody knows something we don't," and invited me and a Times colleague to an on-the- record luncheon session with his Soviet experts, who .must be uneasy about findings from outside economists who are looking at previous Kremlin and C.I.A. estimates with new eyes. At the lunch (the shrimp bisque at the C.I.A. beats the borscht at the K.G.B.), I allowed in a friendly way that bureaucratic inertia might be keeping the truth about negotiatin pr~~ra~nointce?~from o is an- ners. That caused Robert Gates, the Deputy D.C.I., to bridle. "What I'm bridling at," he said, "is How strong is the Soviet economy? that we've taken steps to bring in out- siders, especially on the Soviet econ- omy, in '83 and again in '85. What we do here is published by Congress and exposed to the country. The outsiders' view is a different view, but it's the same different view." Ah, but much has changed since 1985, I countered; the once-outcast Soviet economist Grigory Khanin published a blast at the previous fig- ures in Novy Mir, and Mikhail Gorba- chev seems to have embraced that much lower analysis. The "new eyes" crowd in the U.S. followed that, zag- gingwhile the C.I.A. continued to zig. Not so, said the C.I.A. Soviet experts present. Their own estimate of the per- cent of Soviet G.N.P. devoted to de- fense, including cost of empire, was~0, percent, compared with 6 percent in the U.S.; the Pentagon's Office of Net Assessment said 23 percent, and out- siders "Harry and Charlie" (Henry Rowen of Stanford, Charles Wolf of. Rand) about 25. Not such a big spread. Our eco-spooks are all dedicated public servants, but minimize a deep- ening disagreement. I checked around afterward. The C.I.A. estimates the size of the Soviet economy today to be over half that of the U.S., at $8,300 per capita income; but the new-eyes con- sensus is little more than a third of the U.S. - as low as $3,000 per capita. To figure out the percent of G.N.P. going to defense, both insiders and out- siders use the same C.I.A. estimates of Soviet military spending. But 'c- L the n~v _numerator ,of a shrunken . Soviet G.l~' our new~yes crowd co s u with the possibi i~t7~ y`_of~~3~~~'"er- cent n arms s ena"i" a~deri on oscow nearly twice as heavy as now estimated by'the C.I.A. If the new eyes are right, Mr. Gorbachev is negotiat- ingfrom underlying weakness. Well, isn't it time to set up a Team B, I asked, pocketing an agency ashtray, to present a different view of reality? "We're always open to reassess- ment," said Judge Webster, adding judicially, "but I haven't seen enough yet to get me exercised." Mr. Gorba- chev has admitted only that the Soviet rate of increase, not economic growth itself, has stagnated. But the D.C.I. would not- have ex- posedhis staff to this lunch if he were not concerned. His deputy, Robert Gates, offhandedly added: "Probably after the Soviet policy conference in June, we will bring in a group of dif- ferentguys." But Team B is already in informal existence, and it's foolish to wait until after the Moscow summit meeting to get its different view before the Presi- dent. Among its members are Richard Ericson of Columbia, Greg Grossman of Berkeley, the Swedish economist Anders Aslund, and Harry and Charlie. Nobody yet knows if the new-eyes as- sessment is on the mark. But we do know that the purpose of our vast intel- ligence system is to discover the truth, not to ,cover its institutional posterior. Not'for nothing, as Muscovites say, is the piece of art on Judge Webster's desk a replica of the sculpture by Heckki Seppa titled "The Search." We may all have been egregiously wrong about the erosion of the Soviet Union's internal strength. The political debate ahead here should be about the wisdom of helping it recover, or stress- ing it until it reduces its empire, or just leaving it alone. First task is to search out the true size of our adversary. Appoint a Team B. ^ . Declassified in Part -Sanitized Copy Approved for Release '2012/07/30:CIA-RDP89G00720R000300070001-0 ~ . .__ __,..1 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 'CIA-RDP89G00720R000300070001 ~0 ~= e ~~~ ~Z~`+, ~.:~:-.:=,.~--_~'?~~ The Honorable Robert Gates Deputy Director Central Intelligence Washington, D. C. 20505 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30 CIA-RDP89G00720R000300070001-0 25X1 Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Next 4 Page(s) In Document Denied Q Declassified in Part -Sanitized Copy Approved for Release 2012/07/30 :CIA-RDP89G00720R000300070001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/07/30: CIA-RDP89G00720R000300070001-0 j'` ~ T}u Dcput~? Dircdur ul Central intclli`cnc_c 25 May 1988 STAT vQaarnrst