Documents / FOIA release

/specialCollection/BerlinWall/1961-Summer/1961-07-12c.pdf

Central Intelligence Agency · 163 pages · text by GLM-OCR

This Top Secret study by the Interdepartmental Coordinating Group on Germany and Berlin, dated July 12, 1961, and released by the Central Intelligence Agency, answers NSC Directive No. 58 of June 30, 1961. It sets out courses of action for the Berlin crisis but does not judge their merits. It covers imminent presidential decisions, a three-phase timetable running to January 1, military preparations and mobilization, covert action, economic sanctions, public information, negotiating positions and checkpoint procedures for East German personnel.

  • p. 92 …the above actions /designed to provide a capability for dealing with the Berlin problem in advance…
  • p. 96 …the above actions designed to provide a capability for dealing with the Berlin problem in advance…
  • p. 98 …The Berlin preparedness measures and public reaction thereto might engender hoarding, scare buying, advance stocking, speculative…
  • p. 99 …the change is due to the conjunction of high levels of economic activity in other advanced…
  • p. 100 …However, it is only prudent to plan in advance to deal with the unfavorable contingencies described…
  • p. 130 …the change is due to the conjunction of high levels of economic activity in other advanced…
  • p. 145 …The Soviets justify their demand for the conclusion of separate peace treaties with the "two German…

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# Appendix B

# IMPACT ON U.S. BALANCE OF PAYMENTS OF BERLIN PREPARATIONS

Current Balance of Payments Situation.

The balance of payments deficit continues to be a matter of serious concern. The U.S. balance of payments deficit is currently running at an annual rate of about $1.2 billion as compared with $3.8 billion during CY 1960. Much of the change is due to the conjunction of high levels of economic activity in other advanced countries with recession in the United States. The progress of recovery will bring an increase in U.S. imports during the second half of this calendar year. The overall deficit (excluding special debt prepayments) will be approximately $1.5 - $2.0 billion for calendar year 1961, without taking into account the effect of Berlin preparations.

Current Level of Military Expenditures Entering Balance of Payments.

During fiscal year 1961 U.S. defense expenditures entering our balance of payments totalled approximately $3 billion. These expenditures were partially offset by receipts from military transactions amounting to approximately $300 million, leaving a net out payment in the balance of payments of about $2.7 billion.

As shown in the table below, U.S. defense expenditures in NATO Europe entering the balance of payments amounted to approximately $1.5 billion during FY 1961.

	Germany	($ millions)Rest ofNATO Europe	Total
Conversions of troop pay	248	192	440
Major Equipment&MAP/OSP	10	85	95
NATO Infrastructure	14	81	95
Construction	10	72	82
Contractual Services&Other Local Costs	362644	398828	7601,472

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FOIA release, from the cia-readingroom collection. The PDF is mirrored here; the original link is above. The text was read from the page images by GLM-OCR; expect the odd misread word. 163 pages are in the text index: search them above, or from the library's search.