ECONOMIC INTELLIGENCE COMMITTEE MINUTES OF MEETING HELD IN ROOM 2101, TEMPORARY 'M' BUILDING 26TH AND CONSTITUTION AVENUE, N.W. 27 NOVEMBER 1951

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00283R000100180005-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: November 9, 2016
• Document Release Date: July 21, 1998
• Sequence Number: 5
• Publication Date: December 3, 1951
• Content Type: MIN

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ECONOMIC I17TELLIGENCE CO'.TMITTEE
Minutes of Meeting hold in
Rooms O1, Temporary N" Bui iz
2661 i and Constittation Avenue N.W.
27 November 1951
Dr. Max F. Milliken, CIA, Chairman
Mr. Edward Doherty, State
Mr. Howard V iedemam, State
Mr. John Kullgren, Army
Cdr. Donald C. Deane,, Navy
Dr. Edward L. Allen, Air Force
Dr. James T. Lowe, Air Force
Colonel H. G. V. Hart, JCS
Mr. Fred Rossiter, Agricultu-e
Mro Ilui1 E. Schnellbaoher, Commerce
Mr. Thomas Curtis, Office of Defense :Sobiliaation
Mr. Henry P. Caulfield, Jr., Interior
Mr. Joseph C. McCaskill, Interior
tions Board
CIA, Secretary
APPROVAL OF )IHJTES
EIC.M-8
S December 1951
CIA 430690
1. Actions The minutes of the Economic Intelligence Conmittee
meeting oCtobeer 1951 (EIC.M?^) were approved,
25X1A9a
2. Discussion: CIA, discussed the functions and
aocomplis ~eMnts of~'the Agricultural Subcommittee from the time of its
organization to the present. This Subcommittee has begun looking into
the question of what foreign economic intelligence is required in the
agricultural field to serge national security interests, and what in-
formation of the types required is already available in Government
agencies. (ape in information required will be identified and an attempt
made to fill the gaps of greatest security interest.
REPORT BY THE CHAIRMAN OF THE AGFICULTURAL SUBCU MITTEE
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TERMS OF REFERENCE FOR NATIONAL ESTIMATES
3. Discussion: There was some discussion concerning terms of
reference for Nat onal Estimates and Dr. Millikan, CIA, pointed out that
the National Estimates Board is eager to have modifications or changes
suggested. Anyone havin important comments on these terms of reference
should contact Code 143, Ext. 2817).
REPORT ON JIG PROJECT, "CAPAIILITIES FOR WAR OF THT USSR AND ITS SATELLITES"
4. Action: A list of nominations by State, Army, Navy, Air, JCS,
and CIA to a Working Group on this project was distributed to EIC members,
These nominees had already been accepted by the IAC members of the EIC
at an Ad Hoc meeting.
6. Discussion: Dr. Millikan, CIA, discussed the project briefly
and explains that the Intelligence Advisory Committee had instructed
that this project be undertaken by the EIC. (IAC..d-50 dated 1 November
1961). The Working Group has already held several meetings to discuss
terms of reference.
PROGRESS REPORT ON NIEa40, "POTENTIAL MILITARY, ECONOMIC, ATD SCIENTIFIC
X f o uruTbTMSUL . PROPT VI; A Qt ISM" 0 M' ' o" '
Off' MID-15
6. Action: The EIC Secretary was directed to check with the Chair..
man of the nor ing Group on the Economy of western Europe to find out
how soon copies of sector papers and the summary on NIE-40 would be avail.
able for diatributioh to ETC members.
7. It Was agreed that the ETC would hold a meeting as soon as possi.
ble after papers on NIE-40 were distributed to members to discuss both
the substance of the ETC contribution and the effectiveness of the Working
Group procedure in handling the project.
8. It was agreed that the NIE-40 sector papers and the summary will
be published as an EIC document clearly showing the name of the agency
preparing each part. CIA is to undertake the coordination of the various
papers and draw up a proposed format for their publication.
9, Discussion: Dr. Milliken, CIA, announced that the deadline on
NIE-40 has' een extended. It is now planned to submit all sector papers
to ONE by 1 December,
10. The ETC members agreed that the Working Group submissions to ONE
would be useful as basic studios, It was also generally agreed that the
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EIC would assemble and publish these papers and that the component parts
of the document would show names of the producing agencies. The question
of whether this study is to be published as a "coordinated EIC documonty"
i.ee a report concurred in by the EIC members, or merely as "a group of
documents assembled by the EIC" will be decided at a future meeting.
DISCUSSION OF NIEa56, "LIKELIHOOD OF LOSS OF IMPORTANT ECONOMIC PESOURRCES
T11 s 'TED"TORE AREAS AND FSTABLTSMTF~r?T O 'G GROiT '_
lla Action: Dr. Millikan explained that terms of reference for
NIE--56 haT_1;;~in agreed to by the lAC agencies in their meeting with ONE
on 16 November and that production responsibility for curtain portions of
this paper had been assigned to the EIC.
12o Colonel Hart, JCS, requested that all references to JIC in the
memorandum to the National Estimates Board from dated 21 25X1A9a
November 1951, be changed to JIG.
13. A list of nominations to a Working Group on ME-56 wan distributed
to the EIC members and agreed to by them.
14o The Secretary, EIC, was asked to instruct the V orking Group to
propose a realistic deadline for completion of studies on both the Far
East and the Near and Middle East. The forking Croup is to be advised
that the deadline for completion of both studies should be in the neighbor-
hood of 1 March. This proposal will be submitted to ONE for approval.
15c Discussion: A tentative allocation of production responsibility
reached by some of the LLorking Group members was read by Dro Millikan
and discussed.
16. Dr. Millikan read from a memorandum from ONE indicating certain
changes in the proposed terms of reference for NIE.56 as originally dis-
tributed. A copy of that memorandum is attached to these minutes as Tab Aa
17o There was some discussion on a now deadline for the completion
of EIC contributions to NIE-56. It was fglt that three months would be
required to do the job. Mr. Rossiter, Agriculture, suggested that the
new deadlines` should allow time to recall some of their men from the field
who could make important contributions based on their experience it the
aresai.
DISCUSSIOT' OF NIE-59, "RELATIVE STRATEGIC IMPORTANCE OF FAST47EST TRADE
TO 1HE SOVIET C? BIT ANDS EST OF THE C:ORM AWfST .ISTP EPTT (fir
A STI TG ROUP _..... ~..~_...r ?.._..._ ....~,~. ... .~~
18. Action: Dr. Millikan reported that on 16 November the National
Estimates Soard and the IAC representatives referred this project to the
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EIC with a tentative completion deadline sot for 1 March 1952, A list
of nominations to a Working Group on NIE?59 was distributed to EIC
members and accepted by them.
19o Discussion: There was some discussion on the tams of reference.
Mr. Doherty, State, felt that some of the terms in the opening remarks
of the terms of reference (e.g. "diffused damage," "irreplaceability,"
eta.) should be more clearly defined.
20. Dr. Milliken explained that a new item II was to be inserted
in the outline. Subject for new item II is, "The Logic of Economic War-
fare as Applied to the Special Case of East?-rest Trade," Dra Tlillilc
stated further that CIA would.undertake to prepare a draft of Section
II for circulation and general discussion. A tentative allocation of
production responsibility was reviewed and discussed.
21. Mr. Curtis, OIX,t, suggested that a bibliography of papers already
available on this subject should be compiled as the first job of the
Working Coup. He further suggested that NSRB had prepared a series of
papers that may be of help.
PROPOSAL FOR CONTINUING COMPILATION OF EAST-LEST TRADE STATISTICS IN TIE
DEFA VA-M OF CU- ERCE .-,.-....-
22. Action: Discussion of this item was postponed until the next
BIC meeting. -
USE USE OF BIC SUBCOMMITTEES FOR VARIOUS INTER-AGMPROJECTS
23. Actions It was agreed that an item on the agenda for the next
BIC meetin-would be "Proposal for a Study on the Soviet Bloc Merchant
Fleet,"
24. Discussion: Mr. Doherty, State, discussed the background of
a project request on the Soviet Bloc 'Ierohant Fleet made by State to
the Transportation Subcommittee. This study which was to be used in
COCCU negotiations, was turned down by the Subcommittee and was not
referred to the EIC. :.Ir. Doherty indicated that there was no longer
an immediate need for this paper but that it would be very useful in
discussions which will take place within a few months and he .ranted to
resubmit the request.
25'. There was some discussion of the failure of this discussion to
appear in the Subcommittee minutes and a question of the appropriateness
of a Subcommittee denying a request made on them by an EIC member agency
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without- referring the matter to tbo,EIC. It was agreed that all requests
for the assigimont of specific research projects to EIC Subcommittees
must eventually be referred to the EIC for approval. In many cases it
will be useful to discuss the importance and the feasibility of a pro-
posed project with the Subcommittee members first. In all such cases,
however, the EIC should be advised of the sense of the Subcommittee dis-
cussions, and in these discussions must be reported in the Subcommittee
minutes. Discussion of this general issue and of Mr. Doherty's specific
request will be continued at the next moeting.
PROGRESS REPORT ON SUBC( MIT
26; Discussion: A progress report on Subcommittees was distributed
at the W-893-97 This review we,s prepared by the Secretariat to permit
the EIC members to determine the extent to which these subccmnittees
are carrying out their responsibilities as assigned by the EIC.
PLANS FOR NEXT EIC MEETING
27 Actions It was decided that a meeting of the Economic Intelli-
genes Comae would be held on 11tursday, 6 December 1961, at 2:00 p.m.
. Secretary
Economic. Intelligence Committee
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