BRIEFING PAPER FOR CONGRESSIONAL COMMITTEE PRESENTATION (EXECUTIVE SESSION) ORGANIZATION AND OPERATION OF THE DIVERSION CONTROL NETWORK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-00328A000200160039-6
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 12, 2016
• Document Release Date: March 20, 2000
• Sequence Number: 39
• Content Type: PAPER

Approved For Release 2.001/03/02: CIA-RDP62- QAZ~ 000200160039-6
i!,rs+rsx~a~rw runner ns..en :. ,
it was necessary to establsih additional -Piachiner7
an desied spef.cafy to handle this problem. The EDAC
Organization and Operation of the
Diversion Control Network
During the. Sumer of 1953, the EDAC agencies reviewed the problem of
ensuring, adequate enforcement of security trade controls on a world-wide
Eecutivettee after exploring the question at some length, directed
that the Diver n Control. Network be established. On Jan ry' 1f 1954. the
s, of, reference of the DCN provide that the eral responai'bil-
that in order to insure Systematic investigation id
:s of the c it agencies would remain unchanged, but that specifically
designated off ae rs` 400"AE,CD, _ Late, BrCjt anerce
and action on t , diversions regardless of the ootntriet involved or
08p/Deferzse, u d constitute.. points of contact for coordinating Information
the nat1 : OKs,
the goods.,
easee are eat s ; sheep by mutual agreement among the Network members
a e 'b any f ~ r cf.roemvent East-West trade controls wbich appears
pos't to approach he -,go enta whose nationals
cal . ' o "_. one or more. of the member agencies..
~lcx ~r l e co' ting. all available information on the cad
" r - s out or which D sees de .op ' prodded
: in aati i and
? c a
e co ton sties of the `o ign ce and the ink ligen
I ft,
HOC del`as?i
t~n release rtstuc?ns on file
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 Approved For Release 2001/03/02 CIA-RDP62-00328A000200160039-6
services. One of the principal tasks is to integrate the information received
from these two sources. This involves assembling, collating and appraising
the significance of the individual reports, searching out amplifying information
within the U.s. Government and disseminating to the DCN members concerned
both answers to specific spot inquiries and also suz tiona of the pertinent
data that have been developed orb case basis. The members of the DM also
assume the responsibility for selecting and deleting DON cases and take the
lead in determining what specific action is to be undertaken both in Washington
and overseas, Instructions to the field serve both to direct appropriate
enforcement activities and to indicate lines of endeavor for additional in-
veati_gation
III.
en January 1, 1954 and July 30,, 195 , more. than 300 diversion cases
were do keteci fc ' consi daz ati on by the D( N.
was continuing on 1 of these cases, and 1s2
to be legitimate tra aOtions.. Of the recstainder,
rupted Ue j, the dive.rsi4 . Za were frustrated) * 144 : r out' are
been completed successfully and 15 had unknown conclnarionso dal additional
cases steeled these categories (e .g.r, part diverted and part stopped)
10% aluminum, bickeel, 5% bearings,,. 3% cobalt, 3% irca
le and machinery,,: 3% autativv
Approved For Release 2001/03/02 : CIA-RDP62-00328A000200160039-6
t
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It Is not p. able to say whether this co odity breakdown resembles the
actual pattern of Soviet bloc procurement attempts. While it is quite possible
that it does,, it seems more probable, that the large proportion of metals
and minerals cases tarried on the DCN inventory arises from the fact that these
commodities a readily identified and are widely know throughout the inter-
national business c nunlty as embargo items.
Approved For Release. 2001/03/02 : CIA-RDP62-00328A000200160039-6