DECLASSIFIED 1 to momma REWEW FROG ELEASE es swung teem i995 sever STAFF Pnocness REEQBT comm man 19% FISCAL mt 195's I Summary of Progress for the Report Period A Considerable progress in stimulation of collection was made during calendar 195k and fiscal 1933 This stimulation has been a major factor in bringing about a 203 increase in the number of Sovmat items collected in FY 1955 over the preceding year Accomplishments with important bearing on this increase were no follows 1 A revision of Sovmat Guide Requirements has eetabliehed two categories of priorities and provided more background inforb mation for the guidance of field personnel 2 ihe forwarding of a greater number of g hoc requirements to the field for the collection of Sovmat items not specified in current guide requirements 3 The arranging in cooperation with headquarters personnel 0f Fl for aseigxment of Higher priorities in the field to Somat toy-- collection h Greatly increased briefing of outgoing Foreign Service personnel attaches and CIR personnel on the requiremente of the Sovmat program their importance and procedures for their ful- fillment a total of 2 h30 field personnel of the 11 3 intellip gence community were briefed on Sovmet procedures and requirements during FY 1955 5 Much improved coordination of requirements for the collec- I tion of Soviet and Satellite producte between the military departments especially and Sovmat 6 Greater collection activity by ere ef B Progress was observed also in connection with the following developmente 1 An increase in support action mainly in support of and also the initiation of activity in support of the Office of Training which now makes effective use of selected Sovmat items after those items have been exploited for intelligence II Ullxb 141101 311' 11 41 Authorityt f w 85 mg 2 The broadening of the segment of U S industry utilized to provide technical analyses of Sovmat items Corporations em ployed thus during the report period included 3 An improvement in coordination through briefing of field personnel with resulting increase in the number and quality of Sovmat items obtained through their efforts During FY 35 emphasis was placed on group briefings as opposed to briefing individuals separately Thus while only 25 individual briefings were con- ducted groups of 25 or more field personnel were-briefed on Sovmat procedures requirements and collection problems in four sessions of the CIA Clandestine Review Course three sessions of the Straui tegic Intelligence School two sessions of the basic intelliu genee oouree and eleven OTR intelligence exhibits Sovmet Staff Operations Statistical Report appended A Collection and exploitation of Sovmet items 1 Collection of Sovmet items in FY 55 increased 203 over FY 5b the increase in calendar 1951 over calendar 1953 was one third 3 Revised Sovmet Guide Requirements were distributed to Foreign Service poets FI etatione and selected oversees mili- tary installations in April 1955 In addition to bringing up to date the standing collection requirements this guide eomeJ what improved their quality by providing additional background information and by establishing two categories of priority forgl 1131th b An increase in the number of ad hoe requirements for the collection of items not specified in 55m guide was registered The in particular submitted many more ad hoe requireme ate than in previous years 0 Collection was reinforced during FY 55 by the develop moot of several clandestine sources with potential for ordering needed products from Sovietmbloo suppliers SET d Dissemination of infonaation resulting from the tech nical exploitation of the items collected was accomplished through the issuance of 12h reports and SS memoranda during l95h an increase of 286 over calendar 1993 2 Ekploitation of Sovmat items collected was accomplished in- fulfillment of specific exploitation requirements requested for each item from the U S intelligence community a Laboratory facilities of the U S Government were em ployed to perform of this technical exploitation in calen dar l9 h and h t in fiscal 1955 appropriate industrial sources being utilized for the remainder of the work The increasing employment of U S Government facilities for technical exploi- tation within their scope of activities has resulted in a considerable saving of time and money and has enabled Contact Division to devote more time and effort to arranging exploitaw tion which can only be obtained from appropriate sources in 13 5 industry b Priorities for the exploitation of selected Sovmat items were established by Sovmat customers in less than one percent of the exploitation-projects undertaken B Supp art activities of the Sovmat Staff totaled 71 actions in calendar l9 h and 656 actions in FY 1955 1 Most of these actions were in support of Three types of support were provided to T58 a Provision of technical information on foreign preducts by inclusion of T83 requirements in the plans for exploitation of Sovmat items b Transfer of Sovmat items after their technical analysis to T33 custody These items are used by TSS to support clan destine operations of the a Specific collection of Soviet-bloc products not available 3 through T85 channels but obtainable through Sovmat contacts These items were used in support of current or impending clandes- tine operations 1 2 Additional support was provided in FY 1955 to the Office oi Training through providing Soviet machinery and products previouslfr exploited for intelligence for use in operational training 1 0 Coordination and liaison have continued to impr-ove throughout the report period Because the Sovmat Staff must utilize the service of many organizational entities of the CIA and com- ponents to select acquire transport test and dispose of foreign items liaison activities are great 1 A major clarification of responsibility and authority in the arranging of contracts for the intelligence exploitation of Russianpbloc products was achieved through the granting of authority for Sovmat to use Agency sterile contracts in negotiating for tech- nical exploitation This authority safeguards the security of exploitation activities more adequately a Only cleared personnel of the exploiting facility can become sitting of CIA interest in the exploitation activities b Various conspicuous indicators of classified U S Government work in the exploiters facilities are now avoided posting of fair employment posters notification of worker groups of U 3 Government minimum wage standards and standard Government cost accounting procedures 2 Direct informal liaison with requestors in some CIA divi-l sions notably in 081 and T88 have improved the quality of Sovmat requirements and the responsiveness of Sovmat reports to requestor s needs 3 Continuing improvement in coordination of activities of the U 8 intelligence community through the Joint Technical Intelligence Subcommittee JTIS has provided CIA with opportunity to participate in the intelligence exploitation of 1 039 foreign objects in additi on to those acquired for CIA in calendar l95h and 1 369 such items in fiscal 1955 a Collateral liaison fostered through JTIS procedures hat permitted Sovmat to obtain the informal advice of Army Navy 1 Air and State personnel with respect to improvements in Sovmat collection requirements b Representatives of 6-2 and ATIG have permitted Sovmat to examine and cemment on their requirements for the collection of foreign material in order to insure full coverage and to avoid unwarranted duplication D Overall consumer reaction to the Sovmat product has continued favorable 1 In calendar l9Sh a questionnaire asking all members of the intelligence community for an informal estimate of the value a of the program was circulated This information was sought primarily H 333 - SEC for use in planning for expanded collection suoport from the 30 organization and for guidance of et ' auho de- sired such information for consideration in connection with a planned 'wm%hexpansion of activities similar to the Sovmet progranh 3 Responses to the questionnaire indicated that all rem cipients found the program and its products to be of value many of great value b All respondents wrote that information derived from the Sovmet program is useful and should be continued 2 Formal evaluations of reports received in calendar 195h were as follows Al through A6 - 32% through so 58 Cl through 66 9% Bl through Dh - 1% 3 Fennel evaluations received in fiscal 1955 for reports were as follows Al through A6 - 31$ Bl through 35 62% Cl through 06 - Management activities for the report period are summarised as follows 1a Activit Calendar 1951 Fiscal 1955 i 7 7 Ceiling 5 5 i On Duty 5 5 Resigned I 02 Promoted 2 2 Entered on Duty 3 2 Transferred 1 2 FUD Attended Training 1 1 Comptromr 1b - Fiscal infonnation for FY 1955 is summarized as follows Allocation Enoumbersnoe UnencUmbered Beleneg $19 637 $6 107 UV $111 676 $8591 Total $176 011 $161 313 $111 701 Iv 2 Two special problems of the Sovmet Staff are worthy of note a As described above Sovmat hes with the assistance of personnel of the been able to solve a troublesome security problem of protecting U S Government interests in contractual agreements for the technical examinations of Sovietmbloc products for intelligence purposes without revealing CIA and U S Govern ment interest in these projects to unwitting personnel through the procedures required for standerdnform U S Government contracts and documentetione b The decline in the number of Soviet exhibi atuee eeJe- ee-hee posed a serious threat to our acquisition of Some items 1 This trend is illustrated by sudden cancellations 3 The cancellations may be evidence of desire to avoid comparison with scheduled 3 U S A exhibits or they may be occasioned by changing Soviet policy with respect to foreign trade 2 Anticipating this development the Sovmat Staff hue through the activity- of 1313 and 13 3 military personnel i obtained to several sources with the ability to order Sovmet items directly from suppliers behind the Iron Curtain Initial success in this effort supports our or that we mey ultimately abandon ewe tree in favor of more efficient methods of collecting Sovmet items Deficiencies of importance affecting Soveet operatione are as follows 1 The average thee efter receipt of a Sovmat item required to complete a Sovmat exploitation project and issue a report last year was 180 days some projects were completed much more rapidly of i course and a few took even longer Two avenues of atteck promise to reduce this time i a The maximum possible number of exploitation projects are being channeled into U S Government facilities which are under annual contract with Sovmet The effect of this is to save the time required for security clearance since we nee the same cleared personnel over and over'egain and to save time required to negotiate agreements since individual proj ects can eimply be billed after informel discussion against the annual contract Incidentally there appears to be a consider able saving of money in this method of operation DECEXSSIFIED b As described above use of Governmentesterile contracts with industrial facilities permits Sovmat to greatly reduce the number of people to be security cleared in connection with each contract with consequent saving of time Further time saving results from the more flexible negotiations permitted when standardnform Government contracts are not required Here too a saving of money is anticipated because the contractor is rem lievcd of the requirement for special accounting procedures required under many Government contracts for which of course Sovmat would have to pay the overhead cost 2 There has been considerable friction over Sovmat operations especially with specific requestors in ORR and to a lesser extent in OSI Believing that this friction can be reduced by better mutual understanding of the problems involved Sovmat is seeking at every opportunity to discuss such problems directly and informally with the individual requestors rather than through intermediary requirement specialists 3 Requirements served on Sovmst are still sufficiently imperfect at to present operating problems Among deficiencies in requirements that Sovmat is trying to help correct are the following a Requesters are not aware of the high cost of many items and tests requested b The technical exploitation of an item is sometines in sufficiently planned at the time that this item is requested In consequence eipensive items or items whose acquisition places great demands on the clandestine services may be subjected only to superfical examination when they have been obtained c There is a growing trend for requestors to ask for Soviet items like military aircraft radar automatic pilots aerial cameras ejection seats air to air refueling systems guided missiles and componets infrared detection devices naval 0rd canoe and ground force equipment Because Soviet security procedures mske'these items unattainable efforts must be in creased to persuade requestors to provide extremely good Justi- fication for acquisitions of this kind to permit establishment of complex operations and the offering of substantial financial inducements necessary to try to get the desired items It is hoped also that requestors can plan says to derive information from the technical exploitation of more obtainable items that will shed light on the characteristics of items that currently cannot be acquired UL SF ET V Objectives for FY 1956 are as follows A Short and long term objectives are the same 1 To continue efforts to simplify administrative_end security procedures in order to reduce the time necessary to complete the intelligence exploitation of Sovmet iteme 2 To seek closer and less formal liaison with CIA requeetore a To inform them of general and specific limitations on what the U S Government can and cannot do in the way of ao quiring Soviet-bloc materiel b To point out the cost involved in purchasing trans porting endexploiting Sovietubloo products 6 To assist in formulating fequiremente for the collection and exploitation of Sovmat items which are capable of fulfill ment within the capabilities and budget available to Sovmat 3 To continue the development of new techniques and reeourcee for the acquisition and exploitation of Soviet-bloc products at minimum cost in money time and riek of clandestine assets Enclosure Statistical Annex SE Statistical Annex Somat production calendar 195k Fiscal 1955 Reports 12h ll Intelligonce Information Memos 55 38 Operational Support Activities 717 656 Soviet-bloc items acquired by Somat and by the LLB intelligence 3 community and coordinated through JTIS Calendar 1951 Fiscal 1955 Items received by Somat 918 9M Items received by other U S intelligence agencies U S Army 156 682 Engineers Corps 5 TE Chemical Corpa 3h 51 Medical Corps 6 Ordnance Corps 118 172 Quartermaster 12h 3 36 Signal Corps 19 276 Transportation 0 6 13 3 Air Force 32 212 Navy 52 1 92 Total 1 039 1 359 Total UH - int-511i gonna 1 957 2 299 Soviet-bloc items exploited-by Somot Calendar 19514 516 F'acilities employed for technical exploitation by the Sovmat Staff Calendar 195h Fiscal 1955 Fiacal 1935 ms Gowrmnont facilities 208 192 Private facilities 29g Total 516 h06 Pament of itoma in Gov facilities ALT 1 05 hm MMJ - er- nM n                     National Security Archive    Suite 701  Gelman Library  The George Washington University    2130 H Street  NW  Washington  D C  20037    Phone  202 994‐7000  Fax  202 994‐7005  nsarchiv@gwu edu