MEMORANDUM FOR THE DIRECTOR FROM STANLEY J. GROGAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88-01315R000300160036-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 20
• Document Creation Date: December 16, 2016
• Document Release Date: November 1, 2004
• Sequence Number: 36
• Publication Date: January 28, 1960
• Content Type: MF

F: Institute For American Strategy
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28 January 1960
MEMORANDUM FOR THE DIRECTOR
1. This memorandum recommends action in Paragraph 4.
2. Brig. Gen. Armstrong, USA (Ret.), of the "Institute For American
Strategy," asks if the DCI will open their 1960 meeting in Chicago on
25 April at 11:15 AM. They would like to have the Director talk on Soviet
production "along the lines of his New Orleans speech to the Edison
Electric Institute on 8 April 1959?"
3. I am attaching herewith a report dated 27 November 1959 that
I made covering their plans for next year, telling who will be asked to
talk and what subjects they will cover.
4. This is a group of outstanding American citizens, namely
industrialists, who are considered to be very conservative; however,
`,mile they, like all large large groups, represent different political
parties, I would recommend that the DCI not make this April address.
STAT
Attach.
cc:DDCI w/o attach.
'STANLEY J. GR06A
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 I 1 1 Ti A
"UNCLASSIFIED CONFIDENTIAL SECRET
CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING. SLIP
TO
NAME AND ADDRESS
INITIALS
DATE
1
COLONEL f;ROGAN
2
3
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
XX
INFORMATION
SIGNATURE
Remarks :
The Director noted the attached and indicated
that he felt he was heavily committed.
Perhaps someone else can do it. I understand
Bob Amory is interested in this.
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FOLD HERE TO RETURN TO SENDER
FROM: NAME, ADDRESS AND PHONE NO.
DATE
I
- Assistant to the Directo
v 2 2 60
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SECRET
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APR 55 wh1Ch may be used. U. S. GOVERNMENT PRINTING OFFICE: 1955-0-342531
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TRANSMITTAL SLIP
DATE
9 Feb. 1960
TO: MEMO FOR THE RECORD
ROOM NO.
BUILDING
REMARKS:
SJG phoned Armstrong last week and
told him the Director could not accept
and he should speak directly to General
Cabell.
FROM:
ROOM NO.
BUILDING
EXTENSION
FORM NO I REPLACES FORM 36 8
2A WHICH MAY BE USED.
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MEMORANDUM FOR THE DIRECTOR
1. This memorandum is for information only.
I attended the luncheon meeting at the Cosmos Club of the Washington
Committee of the "Institute For American Strategy," as you suggested, on
Wednesday, 25 November 1959. Brigadier General Donald Armstrong was in charge.
Others present included Lt. General E. C. Itschner, Chief of Army Engineers;
Lt. General Arthur Trudeau, Army OCRD; Mr. James R. Wilson, Jr. of the American
Legion; Rear Admiral H. Karo, Director of Coast and Geological Survey;,Mr. Stanley,
Department of Commerce, who accompanied Karo; Charles Holle, retired, neral, USA;
Joseph Powell, Office of the Secretary of Defense; a Lt. Colonel Rightley,
a reserve officer on two weeks' active duty with the Industrial College of the
Armed Forces; and Mr. Emmons (?), an officer of ARAMCO.
3. General Armstrong explained that he had a memo from the Headquarters of
the Institute in Chicago, asking for comments and recommendations for speakers for
their 1960 National Military Industrial Conference to be conducted by the Institute
for American Strategy on April 25, 26, 27, 1960. He said the over-all theme of the
Conference will be "US Economy In A Competitive World." The first talk scheduled
for the first morning meeting on the opening day is "Outline of Soviet Strength--
The Use of Surplus By the USSR--USSR Aid To Countries To Upset The US Economy."
The consensus was that the following should be invited to give the talk on the
Soviet status: Allen W. Dulles, Director of CIA; Gen. C. P. Cabell, Deputy Director
of CIA (his name was introduced by Mr. Wilson of the American Legion, who praised
his talk in Minneapolis); and Harry Schwartz of the NEW YORK TIMES.
1+. The second subject is "Economic, Political, and Psychological Means of
Soviet Efficiency." It was recommended that Stanley Allen, National Cash Register,
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be invited to give this talk on the subject. Second choice was Congressman
Bolling, Chairman of the Congressional Joint Economic Statistical Subcommittee.
Mr. Emmons recommended Allen, whom he said is a Director of ARAMCO. There was
discussion regarding inviting Tom Coulter or a Mr. Greenwalt, but both names
were stricken.
5. For the luncheon talk the subject will be "Soviet Military Capabilities."
The names of Generals Taylor, Medaris, and Trudeau were presented and it was
decided to recommend General Trudeau. He said he would be available.
6. The subject "Building Free Enterprise in the World Without Hurting Our
Friends" was discussed. They wanted three speakers: one to discuss Western
European Economy; another, Japanese economy; and the third, Latin American economy.
(Now in London)
Colonel Rightley recommended that Edward Martin/discuss Western European economy;
formerly
this was agreed to. I recommended that Walter Robertson/with State be asked to
discuss Japanese economy; this was agreed to. No name was concurred in to discuss
Latin American countries.
7. For the second day's meeting, the opening subject is scheduled to be
"Investments Abroad--How To Live With Free Competitors." It was agreed that
Robert Purcell, International Bank, would be invited with a Mr. Berkenstein of
Corning Glass and Eugene Black also to be considered.
8. Another subject was "Governmental Problems," meaning the US Government.
It was planned to ask Under-Secretary Dillon, Robert Murphy, and Secretary
Anderson to form a round table for discussion.
9. On the third day it was planned to have a discussion on the "Moral and
Ethical Responsibilities of Labor and Management in a Competitive World." The
names of Arthur Goldberg, John L. Lewis were presented. I suggested George Meany.
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Colonel Rightley suggested Walter Reuther.
10. Another subject to be discussed is "Facts Of Economic Competition."
The name of Colin Clark was submitted.
11. For the final banquet it was suggested that the President, Secretary
Herter, Secretary McElroy, Lester B. Pearson of Canada and MacMillan of Great
Britain be invited. Karo said that his Chief, Frederick H. Mueller, Secretary
of Commerce, certainly should be included on some phase of the US situation.
12. Trudeau raised the point that a three-day conference is too long and
wasteful in time for busy executives. The meeting, however, is to last three
days. General Armstrong announced that he had some slight criticism to the
effect that the National Strategy Seminar held at the National War College
in July 1959 was "too much to the right" and was conducted as is the Institute,
practically by people who are members of the Republican Party. On the other side
he was criticized for inviting Senator Douglas to talk. He said,"Of course we
are to the right, but perhaps the association of General Wood makes some people
think they are right of right."
13. I noticed in their literature that they list the various Government
agencies and departments that are cooperating with them in their conferences,
and I gain the impression that they are very anxious to include the Central
Intelligence Agency in that status.
14. Herewith is a booklet giving all the details of the organization, its
membership, the firms that donate funds, its plea for further funds, etc.
cc: DDCI (w/o attach)
STANLEY J. GRO
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Introducing a new voice in National Strategy
public understanding of the strategic problems of the Cold War.
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he Institute for American Strategy has been organize
to widen and to intensify public awareness of the strategic
problems of the United States in an increasingly competi-
tive world, particularly in the face of the Soviet-Communist
challenge. It is the task of the Institute to foster the devel-
opment of realistic solutions in the free American way.
Soviet Premier Khrushchev has clearly demonstrated the
ominous nature of the Soviet-Communist challenge. Whether
or not through military means, he believes that Communism
will triumph. His explanation that he really means to bury
capitalism instead of capitalists is less than comforting!
The American economic, political, and social system is now
threatened as never before. And we must not underestimate
Mr. Khrushchev's astuteness and inflexible determination to
outwork us, outsacrifice us, outthink us, outproduce us, outsell
us, and even to out-consecra us. To met this total com-
rf"r marel t le t.
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Dr. MARTIN BLANK
Member
West German Bundestag
Sir JOHN $LESSOR
Marshal, Royal Air Force
Maj. General JOHN B. MEDARIS
Commander
Army Ballistic Missile Agency
SAMUEL D. STURGIS, Jr.
Lt. Gen., U. S. Army, Retired
Former Chief of Engineers
"What Can Germany
Do to Help the
Free World Survive?"
"A British View of
Allied Global Strategy"
"The Influence of
Missile Strategy on
Geopolitics"
"The Engineer's Contri-
bution to Atomic Survival"
FELIX B. STUMP
Admiral, U. S. Navy, Retired
Chief Executive Officer
Freedoms Foundation
Hon. FREDERICK H. MUELLER
Secretary of Commerce
ANTHONY C. "NUTS" McAULIFFE
Gen., U. S. Army, Retired
Vice President
American Cyanamid Company
"A United America Versus
Communist Propaganda"
"Chemical Warfare-
Economic Style"
Other typical speakers and discussion particiipants : Dr. John R. Dunning,
Dean of Engineering, Columbia University; Maj. Gen. Lewis B.
Hershey, Director of Selective Service; Henry M. Jackson, United
States Senate; Walter L. Judd, House of Representatives; Willard F.
Libby, Atomic Energy Commission; Harry Mallinson, President, Eli
Lilly International Corp.; Theodore S. Repplier, President, Advertising
Council; Gen. Maxwell D. Taylor, U. S. Army, Retired, Former Chief
of Staff; Abbott Washburn, Deputy Director, U. S. Information
Agency; Patin Rustu Zorlu, Foreign Minister of Turkey.
WHAT ORGANIZATIONS HAVE
COOPERATED WITH THE CONFERENCES?
Among the many private and governmental organizations which have
cooperated with the Conterences are these:
Aircraft Industries Association Armed Forces Chemical Association
of America, Inc. (Midwest Chapter)
American Security Council
American Society of Industrial Security
American University of Beirut, Lebanon
Armed Forces Communications
and Electronics Association
Armour Research Foundation of Illinois
Institute of Technology
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Associated General Contractors Scientific Manpower Commission
of America, Inc.
Stanford University,
Association of the U. S. Army The Hoover Institute
Chicago Association of Commerce State of Illinois Civil Defense Agency
and industry
The American Legion
Chicago Civil Defense Corps
The Research Institute of America, Inc.
Defense Orientation Conference
Association The Society of American Military
Engineers
Executive Office of the President,
Office ofClvil and Defense Mobilization U. S. Department of Defense
Foreign Policy Research Institute, Chemical Corps, U. S. Army
University of Pennsylvania Corps of Engineers, U. S. Army
Freedoms Foundation at Valley Forge Industrial College of the Armed Forces
Offices of Assistant Secretary
Illinois Institute of Technology of Defense
Illinois Manufacturers' Association (Manpower, Personnel and Reserve)
(Supply and Logistics)
Illinois State Chamber of Commerce Office of Naval Research, U. S. Navy
National Defense Transportation U. S. Air Force (Installations)
Association U. S. Department of Labor
National Industrial Advertisers' U. S. Coast Guard
Association
National Safety Council University of Notre Dame
Ohio State University Veterans of Foreign Wars of the U. S.
Reserve Officers Association of the U. S. Western Society of Engineers
The Conferences have also had the support of numerous leading
American foundations and industrial organizations. Copies of the
Conference proceedings have been printed and distributed to many
colleges, universities, military and industrial groups, and other in-
terested organizations throughout the nation.
WHAT ELSE HAS THE INSTITUTE DONE?
The Institute served as co-sponsor, along with the Reserve Officers
Association, of the National Strategy Seminar, held at the National
War College in Washington during the last two weeks of July, 1959.
At this Seminar 200 carefully-selected reserve officers, from all of the
services, participated in a comprehensive analysis of the current world
situation, concentrating particularly on the program of "Protracted
Conflict" being waged by the Soviet-Communist bloc against the Free
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World. The reserve officer students included two state governors, three
congressmen, college presidents, newspaper editors and publishers,
judges, state legislators, radio and TV station managers, businessmen
and representatives of many other walks of life.
WHAT DOES THE INSTITUTE PLAN TO DO NOW?
The Institute plans to expand its educational programs and publishing
projects for the years ahead. More conferences and seminars will be
held in various parts of the country. The Institute also plans to act as
an information center and clearing house for educational material
dealing with the various aspects of America's world situation.
The United States Economy in a Competitive World will be the subject
of the 1960 National Military-Industrial Conference.
The prosperity of the United States may suffer severely between the
anvil of domestic inflation and the hammer of increasing economic
competition from the Soviet-Communist bloc and our Allies.
? What will be the effects of rising competitive imports on U. S.
industrial capabilities and our total strategic position ?
? What are the competitive implications of U. S. private
investments abroad ?
? How can we keep productivity abreast of wages and prices?
? What is the nature and progress of Soviet-Communist economic
penetration of the Free World ?
? Is it time for Western Europe to contribute a larger share of the
aid required by Afro-Asian lands ?
? How can Free Enterprise meet the challenge of foreign cartels
and state-owned monopolies?
These are some of the questions on the agenda of the 1960 National
Military-Industrial Conference to be conducted by the Institute for
American Strategy in Chicago on April 25, 26 and 27.
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THE FOLLOWING IMPORTANT COMPANIES AND
ORGANIZATIONS ARE AMONG THOSE WHICH HAVE
CONTRIBUTED FUNDS TO THE MILITARY-INDUSTRIAL
CONFERENCES OF 1955, 1956, 1957, 1958 AND 1959:
Abbott Laboratories
E. J. Albrecht Company
Alcoa Foundation
Allied Chemical & Dye Corp.
Allis-Chalmers Manufacturing Co.
The Allstate Foundation
Aluminum Company of America
American Cyanamid Company
American Zinc, Lead & Smelting Co.
Armstrong Rubber Company
Atchison, Topeka & Santa Fe
Railway System
Atlantic Gulf & Pacific Company
Slaw-Knox Company
Briggs & Stratton Corporation
Carrier Corporation
Caterpillar Tractor Company
Caterpillar Tractor Foundation
Champion Paper & Fibre Company
Cities Service Oil Company
Commonwealth Edison Company
Continental Can Co., Inc.
Continental Motors Corp.
Continental Oil Company
Crane Company
Crowe[( & Leibman
Crown Zellerbach Foundation
Cunningham & Walsh, Inc.
Deere & Company
A. B. Dick Company
Electro-Motive Division
of General Motors Corp.
Field Foundation
First National Bank of Chicago
Ford Motor Company
General Foods Corporation
General Motors Corporation
Gillette Company
B. F. Goodrich Company
Gulf Oil Corporation
Harnischfeger Corporation
Hercules Powder Company
Illinois Bell Telephone Company
Inland Steel Company
Inland Steel-Ryerson Foundation, Inc.
International Business Machines Corp.
International Harvester Company
International Minerals & Chemical Corp.
International Nickel Co., Inc.
International Telephone
& Telegraph Corp.
Kaiser Aluminum & Chemical Corp.
Koppers Co., Inc.
Libby, McNeill & Libby
Eli Lilly & Company
Lockheed Aircraft Corp.
Lubrizol Foundation
Oscar Mayer Foundation
Maytag Company Foundation, Inc.
McGraw-Edison Company
Motorola, Inc.
National Cylinder Gas Co.
New York Shipbuilding & Drydock
Ohio Oil Company
Olin Mathleson Chemical Corp.
Oliver Corporation
Peoples Gas Light & Coke Co.
Perini Foundation
Phillips Petroleum Company
Pullman-Standard Car Mfg. Co.
Rath Packing Company
Raymond Concrete Pile Co.
Regal Rugs, Inc.
Richardson Foundation, Inc.
Sears, Roebuck and Co.
Sears, Roebuck Foundation
Singer Manufacturing Co.
A. O. Smith Corporation
Society of American Military Engineers
Socony Mobil Oil Co., Inc.
Sperry Rand Corp.
Standard Oil Co. (Indiana)
Standard Oil Co. (Ohio)
St. Regis Paper Company
Sun Oil Company
Sunshine Biscuits, Inc.
Texaco, Inc.
Thiokol Chemical Corp.
Charles H. Tompkins Co,
U. S. Steel Corporation
United Wallpapers Co.
Victor Chemical Works
John A. Volpe Construction Co.
Wagner Electric Corp.
Whirlpool Corporation
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FIRST: The Institute should be immediately supplied with the money
necessary to carry out its current projects and to prepare its program
for the year ahead. Contributions are urgently needed. Checks should
be made payable to The Institute for American Strategy and sent to
the Institute at 140 South Dearborn Street, Chicago 3, Illinois.
Contributions to the Institute may be deducted on your Federal
Income Tax returns. Corporations may deduct up to 5% of taxable
income; individuals may deduct up to 20% of their adjusted gross
income. These tax advantages frequently permit support for the
Institute at nominal cost to the donor. A copy of the Internal Revenue
exemption will be furnished on request.
SECOND: The Institute needs the support of all Americans in order
to carry out its tasks successfully. Many will be asked to participate
in seminars and conferences; others will be asked to help distribute
publications of the Institute; all can help by understanding the serious-
ness of the new world competition and the Soviet-Communist threat
and by helping the Institute in its program for educating the American
public in this struggle for the very survival of our free society.
WHO ARE THE MEMBERS
OF THE BOARD OF DIRECTORS?
ROBERT C. BARKER
Vice President and General Counsel,
The Northern Trust Company
Rear Admiral RAWSON BENNETT, USN
Chief of Naval Research
HARRY A. BULLIS
Retired Chairman of the Board,
General Mills, Inc.-
Chairman, International Development
Advisory Board
Dr. HOWARD L. BEVIS
Chairman,
The President's Committee on
Scientists and Engineers
WILLARD W. BROWN
President,
The Cleveland Graphite Bronze Company
CHARLES W. BRYAN, Jr.
Vice President,
Pullman, Inc., and Pullman Finance and
Properties Company
JOHN L. COLLYER
Chairman of the Board,
The B. F. Goodrich Company
EDWARD J. CONDON
Former Vice President,
Sears, Roebuck and Co.
THOMAS H. COULTER
Chief Executive Officer,
Chicago Association of Commerce
and Industry
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JOHN M. FISHER
Chairman of the Board,
American Security Council
Lt. Gen. GEORGE W. MUNDY, USAF
Commandant,
Industrial College of the Armed Forces
L. J. FLETCHER
Former Vice President,
Caterpillar Tractor Company
FRED M. GILLIES
Chairman of the Board,
Acme Steel Company
LESLIE R. GROVES, Lt. Gen., USA-Rtd.
Vice President,
Remington Rand Division of
Sperry Rand Corp.
Lt. Gen. E. C. ITSCHNER, U.S.A.
Chief of Engineers,
Department of the Army
MAX S. JOHNSON, MaJ. Gen., U.S.A.-Rtd.
Former Commandant,
U. S. Army War College
Rear Admiral H. ARNOLD KARO
Director, Coast and Geodetic Survey,
U. S. Department of Commerce
ALLAN B. KLINE
Former Head, American Farm Bureau
Dr. HALDON A. LEEDY
Director, Armour Research Foundation
of Il IInois Institute of Technology
MORRIS I. LEIBMAN
Senior Partner, Crowell & Lelbman
EDWIN A. LOCKE, JR.
President. Union Tank Car Company
LENOX R. LOHR
President,
Museum of Science and Industry
MERRILL C. MEIGS
Vice President, The Hearst Corporation
EDWIN W. RAWLINGS
General, USAF-Rtd.
Financial Vice President,
General Mills, Inc.
GORDON W. REED
Chairman of the Board,
Texas Gulf Producing Company
HENRY REGNERY
President, Henry Regnery Company
H. A. SHEPARD
Vice President,
Thompson Products Divisions,
Thompson Ramo Wooldridge Inc.
JOHN SLEZAK
Former Under Secretary of the Army-
Chairman of the Board,
Kable Printing Company
DELMAR T. SPIVEY
MaJ. Gen., USAF-Rtd.
Superintendent, Culver Military Academy
D. A. SULLIVAN
Armour Research Foundation
of Illinois Institute of Technology
HERBERT 0. VOGEL
Chairman of the Board,
Tennessee Valley Authority
DOUGLAS L. WEART
MaJ. Gen., U.S.A.-Rtd.
Corps of Engineers
LAWRENCE H. WHITING
President, Whiting & Co.
ROBERT E. WOOD
Retired Chairman of the Board,
Sears, Roebuck and Co.
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WHAT ARE THE PURPOSES OF THE INSTITUTE AS
STATED IN THE ARTICLES OF INCORPORATION?
The Purpose or purposes for which the corporation is organized, are:
"A. (1) This corporation is organized and shall be operated ex-
clusively for educational purposes, within the intendment of Section
501 (c) (3) of the Internal Revenue Code of 1954 as hereafter amended,
and for no other purposes.
"(2) This corporation is organized and shall be operated not
for profit. In no event shall the net income of the corporation inure
in whole or in part to the benefit of private shareholders or individuals.
To the extent permitted by law, upon voluntary or involuntary dis-
solution of the corporation, its net assets shall be distributed only to
such organizations which may at that time qualify for exemption from
taxation under the terms of Section 501 (c) (3) of the Internal Revenue
Code of 1954 as hereafter amended.
"(3) No part of the activities of this corporation shall be the
carrying on of propaganda or otherwise attempting to influence legis-
lation. This corporation shall not participate in or intervene in (in-
cluding the publishing or distributing of statements) any political
campaign on behalf of any candidate for public office.
"B. The Corporation shall accomplish its purposes of education by
methods such as :
"(1) Conducting and promoting forums, lectures, conferences
and adult education courses for the education and enlightenment of
individuals and the general public.
"(2) Promoting and sponsoring conferences and seminars, and
disseminating the ideas, analyses and concepts developed in and
through said conferences and seminars; provided, however, that the
purposes and the program of said conferences and seminars shall be
based on principles of impartial analysis and that said purposes and
program shall be consistent with the purposes of this corporation.
"(3) Conducting studies, encouraging such studies by com-
merce, industry and labor, as well as universities and professional
societies, and disseminating the findings of such studies to educators,
organizations and the general public.
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"(4) Cooperating with organizations such as church, youth and
women's groups and veterans' associations in the furtherance of edu-
cating and informing the general public, and making freely available
to the general public the type of information described herein.
"(5) Gathering, digesting, disseminating and generally making
available information and existing studies which might not otherwise
be readily accessible to individuals and the general public.
"C. The corporation shall educate individuals and the general
public, in the manner described above, in topics and problems such as :
"(1) The meaning and the importance of the development by
America and the rest of the free world of a "strategy" in the struggle
between democracy and dictatorship.
"(2) An examination of the ideological, economic and military
factors involved in such a struggle.
"(3) The considerations and problems of national survival in
an era of nuclear weapons, economic relationship of overseas markets
and materials, massive propaganda, technical revolutions, and com-
petition in science, industry and education.
"(4) The relations of military power and science to moral
philosophy, politics and economic theory.
"In pursuing the public examination of these and similar problems
the corporation at all times shall promote and encourage the collection
and consideration of all pertinent facts and points of view so as to
accomplish, in an objective and a non-partisan manner, its purposes
of education."
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Chairman of the Board and President:
LENOX R. LOHR, President,
Museum of Science and Industry
Chairman, Executive Cornmittee:
EDWIN A. LOCKE, JR.
President, Union Tank Car Company
THOMAS H. COULTER
Chief Executive Officer,
Chicago Association of Commerce
and Industry
JOHN M. FISHER
Chairman of the Board,
American Security Council
LEIVOX R. LOHR
President,
Museum of Science and Industry
EDWIN W. RAWLINGS
Gen., USAF-Rtd.
Financial Vice President,
General Mills, Inc.
Executive Director:
D. A. SULLIVAN
Armour Research Foundation
of Illinois Institute of Technology
Chairman, National Military--
Industrial Conference:
ROBERT E. WOOD
Retired Chairman of the Board
Sears, Roebuck and Co.
Director of Publications:
IVAN HILL, Executive Vice President
Cunningham & Walsh, Inc.
Auditor:
LEONARD SPACEK
Managing Partner
Arthur Andersen & Company
Associate Chairman, National
Military-industrial Conference:
FRANK R. BARNETT
Director of Research
Richardson Foundation, Inc.
General Counsels:
ASH CRAFT, OLSON & EDMONDS
CROWELL & LEIBMAN
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