8. Memorandum of Conversation0

SUBJECT

  • Study of Possible Counter-Measures to Soviet Economic Warfare

PARTICIPANTS

  • The Vice President
  • Secretary Dulles
  • Deputy Under Secretary Dillon
  • Secretary Weeks
  • Harold Boeschenstein, representing Business Advisory Council1

The Vice President said that in thinking about the problem of the study of counter-measures to Soviet economic warfare it had been clear that high-level government officials were all so deeply engaged on current problems that they would not have the time to make a thorough study which the question demanded. An outside study with a minimum of publicity seemed the best answer. The Vice President said he had mentioned the matter to Sidney Weinberg and also to Secretary Weeks, and both had felt that the mechanism of the Business Advisory Council provided the ideal solution. It was felt that a special committee of about five or six individuals could be set up to study the problem. These individuals would have to devote considerable time to the matter and the study could be expected to last for as long as a year.

Secretary Dulles then outlined the great importance which he attached to this matter, saying that it might well be the most serious problem to be faced by the free countries in the coming years. Therefore, he said that the study must be taken very seriously by all concerned.

The Vice President agreed and said he felt the study should be initiated by the President asking the individuals who would make the study to come to Washington, and charging them personally with the mission. He then said the most important matter was the choice of a man to head up the study.

Mr. Boeschenstein said he was thinking of the highest caliber executives in the Business Advisory Council who had extensive experience in world business. He said he thought Mr. C.S. Allyn, of the National Cash Register Company, would make an excellent chairman of the study group. It was agreed that Mr. Boeschenstein and Secretary [Page 15] Weeks would get up a list of about ten possible members of such a study group and submit it to Secretary Dulles for joint decision as to the five or six most suitable individuals.

The Vice President then said it was most important that the group be provided with an adequate staff. It was agreed that the head of the staff should probably be provided through Business Advisory Council sources. It was emphasized that a competent State Department officer would have to be assigned full time to this work in order to ensure that State Department information was available to the study group, and to keep the Department informed of progress. Secretary Dulles agreed on the importance of such a relationship with the State Department, and asked Mr. Dillon to make sure that a competent officer would be assigned to the group once it was established, this officer to keep Mr. Dillon currently informed of the progress.

Secretary Dulles asked the Vice President whether or not there should be a report of this action to the Cabinet. The Vice President felt it was preferable to make no such report in order to keep the fact that the study was being made as quiet as possible.

  1. Source: Department of State, Secretary’s Memoranda of Conversation: Lot 64 D 199. Secret. Drafted by Dillon.
  2. Boeschenstein, President of Owens-Coming Fiberglass Corporation, was a member of the Business Advisory Council of the Department of Commerce.