ECONOMIC INTELLIGENCE COMMITTEE Minutes of Meeting Held in Room 4F21, CIA Headquarters Building 1015 hours, 30 March 1966

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00283R000100010038-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 9, 2016
• Document Release Date: March 12, 1999
• Sequence Number: 38
• Publication Date: March 30, 1966
• Content Type: MIN

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Control No. 3926
EIC -M-114
30 March 1966
ECONOMIC INTELLIGENCE COMMITTEE
Minutes of Meeting Held in
Room 4 F 21, CIA Headquarters Building
1015 hours, 30 March 1966
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CIA, Chairman
Morris H. Crawford, Department of State
Defense Intelligence Agency
William C. Andrews, Department of the Army
*CDR. James G. Brady, Department of the Navy
Dr. Robert A. Kilmarx, Department of the Air Force
National Security Agency
Dr. Quentin West, Department of Agriculture
Ernest Rubin, Department of Commerce
Jerome Forrest, Agency for International Development
CIA
CIA., Executive Secretary
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The Chairman made the following announcements:
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On 23 February 1966, the Chairman, EIC requested
Chairman of the USIB Ad Hoc Working Group on Soviet Military Expendi-
tures for NIPP 66 refer the matter of tasking an EIC Subcommittee with
monitoring the uses of economic intelligence in military planning to the
Working Group for consideration and comment. The Working Group met
on 2 March, however, has recently been hospitalized and no
formal report has been submitted in response to the EIC request.
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* Had to leave prior to end of meeting.
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Copies of UNCLASSIFIED tables presenting a detailed compilation
of 1964 Soviet foreign trade statistics were forwarded EIC members and
selected associate member departments and agencies for information on
29 March 1966. Data presented are based exclusively on the official Soviet
foreign trade publications Foreign Trade of the USSR in 1964, which was
released late in 1965.
APPROVAL OF MINUTES:
The minutes of the EIC meeting of 8 February 1966 (EIC-M-113) were
approved.
DISCUSSION OF DISCONTINUATION OF STANDING EIC WORKING GROUP
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The Chairman reviewed the history of from
1953 when the CIA was assigned the responsibility for coordinating U. S.
participation in the Program to the present. The responsibility for admin-
istering the Program was transferred in Match 1965 to the Collection
Guidance Staff, CIA.. The Chairman stated that time has brought the Program
to the point where the major requirements are military, and because the
primary coordination is now between the CIA and the DIA. it would seem
appropriate that the EIC discontinue its Working Group.
Representatives of the DIA and the Department of the Navy stated
that they do have a vital interest in the Program and agreed that the function
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the Washington Coordinator attended this part of the meetings
and stated that while daily informal liaison would take care of most of the25X1A9a
problems, at times it would be necessary to call together representatives
from the DIA and the military services to discuss certain aspects of the
Program, principally those of a policy nature.
Members agreed that since the Program is primarily a collection
operation, although receiving support from EIC member agencies, this
function should be carried out in collection channels and therefore the
Working Group should be discontinued as a group reporting to the EIC.
The Chairman stated he would circulate for members approval a
memorandum for the Director of Intelligence Support, CIA, who is respon-
sible for the supervision of the Collection Guidance Staff, summarizing
the Committee's discussion and its decision to discontinue the Working
Group under EIC auspices.
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30 March 1966
DISCUSSION OF STANDING EIC WORKING GROUP ON AID AND TRADE
ACTIVITIES OF COMMUNIST COUNTRIES IN LESS DEVELOPED AREAS
OF THE FREE WORLD:
The Chairman recalled that at a previous meeting it had been proposed
that this Standing Working Group be made into a Subcommittee of the EIC.
The Chairman stated that the proposal had been carefully reviewed, but
that since this groupwas_ charged with the specific production responsibility
for assembling and producing coordinated intelligence on Communist aid
and trade activities pertaining to the less developed countries of the Free
World, he proposed that it remain as a Working Group. No subcommittee
la's a similar production responsibility. He reported that the Terms of
Reference had been in effect for ten years, were now outdated and suggested
that the Working Group be requested to revise the frame of reference to
more accurately describe its subject matter scope, functions, organization,
and procedures.
Discussion followed and members concurred in the Chairman's recom-
mendation that the group be continued as the Standing EIC Working Group on
Aid and Trade Activities of Communist Countries in Less Developed Areas
of the Free World. It was agreed that the Working Group be directed to
prepare a revised Terms of Reference within six weeks for EIC consideration.
Members may submit any proposed changes to Mr. Crawford, Department
of State Representative, for passing to the Chairman of the Working Group.
Dr. West, Department of Agriculture Representative, stated that the
USDA is now represented on the Working Group by analysts working on less
developed areas and consequently that the Department can now make a
larger contribution to the activities of the Working Group.
DISCUSSION OF REPORTS OF EIC SUBCOMMITTEES:
The Chairman recalled that the Chairmen of the EIC Subcommittees on
Population and Manpower, Agriculture, and Petroleum were each directed
by the EIC (see ETC-M-111, 9 December 1965) to meet in formal session.
(a) to give consideration to their committee's purpose as outlined in the
Terms of Reference and to ways of fulfilling that purpose in an active and
effective way, and (b) to assess the overall. value of the subcommittee,
assuming an active program. Consideration also was to be given to the
possible revision of present Terms of Reference, possible merger with
another subcommittee, or abolition of the subcommittee if a continuing
benefit could not be justified.
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The Chairman reported that these subcommittees had met during March
and had submitted, recommendations for Committee action and/or noting, and
discussion followed:
Subcommittee on Population and Manpower
Discussion: For the past several years, the subcommittee has met
annually to approve the draft of its annual publication of agreed upon basic
statistics and to exchange information on research activities. The subcom-
mittee met on 16 March to consider the question of abolition of the subcom-
mittee and the disposition of its annual, publication, Population of the Com-
munist Countries, Selected Years, 1938-80.
Action- The Committee accepted the agreed recommendation of its
Subcommittee on Population and Manpower that'
1. the subcommittee be abolished;
2. any ad hoc matters requiring EIC action that may come up in
the field of population and manpower be referred to the EIC Subcommittee
on General Economic Analysis. Representatives of the departments and
agencies now represented on the Subcommittee on Population and Manpower
(the Departments of State, Commerce, and Labor and the DIA) should be
invited to participate in any such discussions by this subcommittee; and
3. the annual publication, Population of the Communist Countries,
Selected Years, 1938-80 be discontinued. The CIA will continue to publish
and disseminate the Population Wall Chart which is prepared annually by
the Bureau of the Census. The Bureau of the Census has agreed to prepare
the draft Chart and to submit it informally for review by those departments
and agencies now represented on the subcommittee. The Chart will be
published with the following footnote-
"These figures have been agreed to by interested
agencies of the Government as representing
accurate estimates for past dates and reasonable
projections for future dates. They have been
prepared by the 13u.reau of the Census, U. S.
Department of Commerce, and any questions as
to sources and methods used should be directed
to the Chief, Foreign Demographic Analysis
Division, Code 157, extension 7265. "
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Subcommittee on Agriculture
Discussion: The Subcommittee met on 22 March to consider its activities
and continuing utility. Members unanimously agreed that the Subcommittee be
retained and that its activities be expanded. The Subcommittee has proposed
that in order to better apprise its membership on related work currently
underway or scheduled, a list of such projects be prepared by each depart-
ment and agency and mutually exchanged on a weekly basis. This list would
include not only those projects entirely oriented toward agriculture but also
those projects in which the agricultural economy, food problems, and the like
are treated a-long with other subjects, at a security classification no higher
than SECRET. It was also suggested at this meeting that the membership be
expanded to include an expert on fisheries from the Department of the Interior.
Action: The Committee noted the report of its Subcommittee on Agri-
culture and the recommendations contained therein. It was agreed that the
Committee would acknowledge the report and the initiation of the proposal
for the exchange of current information and request the Subcommittee to
give consideration to the identification of priority gaps in information and the
existing capabilities to fill these gaps.
The Department of the Army Representative asked if opium poppy
production in Communist China was a subject of concern to this Subcommittee.
The Chairman replied that if identified as a major intelligence problem it
would come under the responsibility of the Subcommittee.
Subcommittee on Petroleum
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Discussion: background report stated that the principal actives,
ity of the Subcommittee in recent years has been the issuance of a series of
working papers on Military Consumption of Petroleum Products in Communist
Countries. The last study covered 1962-63 and the information was provided
by the DIA for consolidation by the Subcommittee for review and issuance.
The DIA plans to produce these estimates in the future, therefore, Subcom-
mittee sponsorship is not expected or required. Agreed upon statistics for
Communist Countries have not been prepared in recent years and except for
one element (storage capacity) these data are in fact CIA estimates and it is
felt that the Subcommittee is not important or necessary to the preparation
of these statistics.
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Minutes of the 25 March meeting were circulated and
Chairman of the Subcommittee, reported that no agreement was reached on
the future role of the Subcommittee. The members polarized around two
positions, as follows. (1) abolishment was supported by the representatives
of the CIA and the DIA, and L2) the continuation of the Subcommittee under
different Terms of Reference providing for annual or semiannual meetings
to discuss and review intelligence problems and developments was supported
by representatives of the Departments of State, the Navy, and the Interior;
the Defense Supply Agency, the Agency for International Development, and
the National. Security Agency,
The Chairman stated that one of the functions outlined in the present
Terms of Reference that the Subcommittee might direct attention to was the
marshalling of information on current POL problems in the community and
perhaps the marshalling of resources to meet these problems. The Chinese
Communist capability to provide petroleum products to North Vietnam and
the Rhodesian oil supply situation were cited as subjects of concern to the
community.
It was felt that an exchange of ideas and information of mutual interest
would be of value to the community. The Department of State Representative
stated that the reflection of consumer needs to the producers would help to
provide the information the policy makers needed to do their job. He felt
there is a need for an exchange of intelligence on petroleum and it would be
worthwhile to have a Subcommittee.
It was then suggested that consideration be given to a new Terms of
Reference for this Subcommittee as a basis for further discussion. The
Chairman will explore this matter with the CIA member.
Due to the lateness of the hour, further discussion of this Subcom-
mittee will be continued at the next meeting.
The Chairman thanked the members for their participation in discussion
and contributions to the solution of these long standing issues.
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DATE OF NEXT MEETING:
The next meeting is tentatively scheduled for Friday, 22 April 1966,
at 1015 hours, for discussion of the following:
1. Continuation of discussion of the EIC Subcommittee on Petroleum.
2. Establishment of EIC Subcommittee on Economic Policy in
Communist Countries.
3. Terms of Reference of the Economic Intelligence Committee.
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Executive Secretary
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The Subcommittee on General Economic Analysis has reviewed the
proposal for continuation of the CIA-sponsored external research project
underway on National Income and Product of the
Soviet and Eastern European Economies and have no objection to the
proposal. (15 March 1966)
Members approved, by telephone interim action on 11 February 1966,
the DIA nomination of as Chairman of the EIC Subcom-
mittee on Shipbuilding. 25X1A
Members approved, by telephone interim action on 24 March 1966,
release of EIC-R16-S6, The International Trade and Transport of Communist
China, 1964,
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