CENTRAL. INTELLIGENCE AGENCY
8 Ounc liOl
Tho Honorable Lionel H. Olmer
Undor Secretory for International Trade
Department of Conmcrce
Dear Mr. OJmcr:
orMil iiDcria toEurope gas pipeline
and other projects rcquJr.og earth
awwved for release
-relic . -'^
Italy Imvc byh producei r /or (lit llr.c
have nnylie lliicc l
I nrro-nin-^Irrn?: Jnpan, West Germany,TUi^'iydiameter piped
USStt. The Umlcd Stales
'PC needed By Ihc utivr i.
hove Ihc capacity lor.xii l
require twof compressor types and theigh t
unitsthe heavy aircraf-t types, tfie latter for varying sizes arc available nder US license or
Soviets hove imported severe! hitndrci compressors Tn thr pest and prefer thenn other countries. Those companies usin- the fie main US mtnuf ee turcr can produce all the parti with the exception of the turbine rotor blades, which must be imported from the' United States. If the US manufacturer provided the rotor blades to its foreign licensees or subsidiaries, the Soviets would be-quick to place their order with them.
.cooperation from our
Allies,the denialof licenses for US equipment will do little to delay completion cf the fis pipeline. In those areas where the Soviets would prefer US technology ompressors,andolc equipment ihcv could go ehciiri with the project without US participation. In effect making do with accond-best teclinoiogy. Foreign licensees of US firms could vcrv well decide, despite their contractual obligations, to accept Soviet orders. Those licenseeseek competitive p< would be especially tempted to take this rood. Nor is certainly that US subsidiaries would follow the lead of me parent companyeither because of pressure from the host country or permission from the parent firm.
Di rector Economic ResearchOriginal document.