Appendix D:

Letter from Fred Schlafly to friends and supporters
of American Council for World Freedom, dated
April 1978, asking to mail "Yellow Cards" of
protest to William Norris.


Dear ACWF Supporter:

I need just a few seconds of your time right now.

I need you to sign and mail the 2 postcards I've enclosed for your personal use.

Since you're one of the best friends the American Council for World Freedom has, I'm sure I'm not asking too much of you.

Please let me explain these 2 postcards and tell you why it's crucial that you sign and mail them today.

The yellow postcard is addressed to Mr. William Norris, Chairman of the Control Data Corporation, one of the world's biggest and most advanced computer companies.

That yellow postcard calls on Mr. Norris and Control Data to stop selling computer technology to Communist Russia and its satellites . . .

. . . Technology that our Communist enemies are using to gain military superiority over the U.S.

Once before, Mr. Norris tried to sell our best and most advanced computer to the Soviet Union. Only an all-out, last minute effort by over 300 patriotic Congressmen stopped the sale of this highly valuable computer to the Russians.

Now Mr. Norris and Control Data are trying the same sell-out to Russia again. You and I have got to put a stop to it.

And just to make sure that Mr. Norris personally sees your postcard, I've adressed the card to his home address in St. Paul, Minnesota.

The blue postcard is addressed to Mr. J. Fred Bucy, President of Texas Instruments.

That blue postcard praises Mr. Bucy and Texas Instruments for refusing to sell American technology to our Communist enemies.

You probably know from reading your anti-Communist magazines and newspapers that a lot of big, U.S. corporations are making huge profits selling their products to Communist Russia.

Now I'm not talking about selling products like soft drinks and clothing to the Communists.

I'm talking about U.S. companies... like Control Data . . . that sell our Communist enemies computers, shipbuilding equipment, and jet airplanes . . .

. . . Technology that Communist Russia is using to turn itself into the world's number one military superpower.

My friend, let me tell you just how critical a problem we really face.

There are over 60 big U.S. companies selling U.S. technological secrets to the Soviet Union . . .

. . . Companies like Union Carbide, General Electric, Armco Steel, Bryant Chucking Grinder, which sells the Communists the ball bearings they need for their attack missiles . . . and Control Data.

So why is ACWF only going after Control Data, and not these other companies, for selling out U.S. military superiority to the Communists?

The answer is,

Control Data is absolutely, far and away, the biggest offender when it comes to selling out U.S. technology and actively aiding the Soviet military power grab.

There's no doubt in my mind that if we ACWF Supporters force Control Data to stop building the Soviet war machine, then other sell-out companies like General Electric and Union Carbide will also stop aiding and abetting our Communist enemies.

That's why the American Council for World Freedom has set up its Task Force on Strategic Trade.

Look at what ACWF has already accomplished against Control Data:

(You might want to look at the enclosed note from General Daniel Graham which lists some of the Congressmen, newspapers, magazines, and wire services at our press conference.)

ACWF is off to a fast start against Control Data, but there's no use kidding ourselves – we've got a big fight ahead of us.

Here's what needs to be done right away:

1.) We've got to flood Control Data and its Chairman, Mr. William Norris, with postcards and letters demanding "No More U.S. Help for the Soviet War Machine."

You can help do that by signing and mailing your postcard to Mr. Norris... today.

2.) We've got to support and encourage companies like Texas Instruments when they show the guts and have the backbone to say "NO" to Communist Russia.

Will you help do that by mailing your postcard to Mr. J. Fred Bucy, President of Texas Instruments... today?

3.) We've got to print and distribute 28,959 copies of Dr. Costick's brilliant expose, "The Strategic Dimension of East-West Trade."

We must get this expose into the hands of America's 10,286 newspaper editors, 9,414 magainze editors, 9,309 TV and radio news editors.

4.) And finally, we've got to write to tens of thousands of other Americans... 50 thousand in May alone... alerting them to Control Data and similar sell-outs of America's scientific secrets. getting them active in ACWF's fight to keep America the #1 military power on earth.

I know I don't have to tell you that I'm talking about an aggressive, expensive program.

It will cost $28,090 to print 28,959 copies of ACWF's Control Data expose and distribute tham to 28,959 newspaper, magazine, radio and TV editors.

And it will cost $13,253 to write to fifty thousand Americans in May.

That's a total of $41,343 ACWF urgently needs. We simply don't have it.

Will you help ACWF again, with as generous a gift as you can afford? What I'm asking you for is your contribution... before May 15th... of at least $25, but hopefully more — perhaps even $50, $100, $250, $500 or $1,000 if you can afford it.

I know I ask an awful lot of you, but I don't have anyone else to turn to.

So please, when you mail your 2 postcards, won't you use the. enclosed reply envelope to rush ACWF your support of $25, $50, $100, $250, $500 or $1,000?

Gratefully, Fred Schlafly

P.S. Remember, when you mail that yellow postcard protesting Control Data's military sell-out of the U.S. to Russia, your card will be read by Control Data Boss William Norris because it's addressed to his home.

 



Letter from William C. Norris to each
"Yellow Card Sender," dated May 5, 1978.


CONTROL DATA CORPORATION

May 5, 1978

Dear Yellow Card Sender:

You are grossly unfair, woefully ignorant or being led around by the nose. I suspect it is the latter, otherwise you wouldn't have signed a card with a canned message, along with a request to contribute money to the author — apparently a Mr. Schlafly of American Council for World Freedom.

Why didn't you write and ask about Control Data's position on trade with the Communists before signing a form card? You obviously have little knowledge about Control Data's position or activities, nor does Mr. Schlafly. He has not contacted anyone in Control Data. I would have furnished him information or I would have been glad to respond to a letter from you asking for information. Then if you still disagreed strongly so be it — at least you would have acted sensibly and fairly by first getting adequate information. Then you probably wouldn't have resorted to the use of such words as "disgrace" and "outrage", because that is akin to the Communist procedure of not fairly weighing the evidence.

You obviously are deeply concerned about the Soviet military threat, and I certainly understand that, because I share that concern. I think about the subject a great deal and several points are clear, including that:

1. The U.S. should maintain a very strong military capability. Control Data's products and services contribute significantly to our nation's defense system.

2. The U.S. can gain much more by doing business with the Soviet Union than by trying to withhold many things. This latter procedure hasn't been effective where it has been tried.

3. Most important to maintaining a strong international position is that we maintain a strong domestic economy with an adequate number of jobs, especially for young, disadvantaged persons. (If you have studied world-wide Communism you are aware that it preys upon countries where the domestic economy is sick, weak or corrupt).

Further, Mr. Schlafly's letter to you was based on a highly inaccurate booklet by Miles Costick. We are familiar with Mr. Costick's work, and have met with him to document inaccuracies in it. Apparently, he has chosen to ignore this evidence, because:

My position is further explained in the enclosed article, "High Technology Trade with the Communists", which appeared in Datamation magazine last January.

I have also enclosed a clipping from a recent issue of Time magazine that describes some of Control Data's activities in helping to provide more jobs for the disadvantaged.

If you have questions after reading the material, write me. Sincerely,

s/s William C. Norris

William C. Norris

Encls.



Letter (Protocol) of Intent dated 19 October 1973
(English version) between State Committee of the
USSR Council of Ministers for Science and
Technology and the Control Data Corporation.
Letter (Protocol) of Intent

I. The State Committee for Science and Technology of the USSR Council of Ministers and Control Data Corporation (CDC) in the interest of developing extensive long term technological relationships between Soviet organizations and enterprises and Control Data Corporation, have on 19 October 1973 concluded an "Agreement on Scientific and Technical Cooperation". The State Committee for Science and Technology and Control Data Corporation, together with the USSR Ministry of Foreign Trade, hereafter referred to as the Parties, having in mind furthering the development of the desired cooperation, wish to conclude this Letter of Intent to identify joint projects which need detailed study, and to commit the Parties to initiate these studies.

II. The objective of the projects called for in Paragraph III of this Letter (Protocol) of Intent shall be to:

A. Establish the coordinating group, and working groups called for in Article 4 of the Agreement on Scientific and Technical Cooperation.

B. Specify the scope and mechanism by which the scientific anti technical information exchanges to be engaged in under the terms of Article 2 of the Agreement on Scientific and Technical Cooperation shall be carried out:

C. Implement detailed examination of those projects given first order of priority.

D. Define mutually satisfactory commercial and trade relationships.

III. The following preliminary list of tentative joint projects has been agreed to and a detailed examination of them will be our first priority.

A. Finance and Trade — To conduct studies and discussions in order to develop mutually satisfactory bases for payment for the activities to be undertaken within the scope of the Agreement on Scientific and Technical Cooperation. This shall include terms of credit, repayment, considerations, and cooperative activities whose purpose is to generate Western currencies to facilitate repayment of credit.

B. Software and Applications Development — Development by the USSR of automated programming methods for improving programmer productivity as well as the generation of systems within certain applications areas of mutual interest. These would include, but not be limited to, the medical/health care field, the transportation industry, and the education environment.

Objectives of transportation study might include both the increase of efficiency of passenger transportation, as well as enhance the timely delivery of freight, both by surface and by air.

The medical health care study would include the creation of systems dealing with patient care, health care management, as well as health care planning.

Work in the education field will be centered on the disciplines of computer-based education and training, including networks, special terminals, author language, curriculum and course-ware.

C. New Computer Sub-Systems R & D — The USSR will contribute research and technical development of computer elements based on new technical concepts. This research and development will be undertaken based on cooperative planning between Control Data Corporation and appropriate USSR organizations.

This research and development may include, but will not be limited to, the realm of memory systems, advanced mass memories, thin film, disk heads, plated disks, memory organization and ion beam memories, might be amongst the technologies to be investigated and research and development undertaken.

D. Reserch and Development — Joint exploration of research and development activities in USSR enterprises and institutes which will add to Control Data Corporation's research and development activities, particularily in the areas of computer systems software and applications software, and will constitute in part compensation for technologies which the USSR wishes to obtain from Control Data Corporation.

E. Advanced Computer System Development — To conduct a cooperative development of a computer with rear-rangeable structures and a performance rate of 50 to 100 million instructions per second to be used for solving large economic and management problems. Results of software and architectural research conducted in the Soviet Union will be utilized. The functional design of the software system and the architectural concepts will be supplied by the USSR. The implementation would be conducted in four phases as follows:

1) Feasibility
2) Detailed design
3) Prototype construction and checkout
4) Test and evaluation

The feasibility phase will be used to evaluate the proposed computer concepts, both hardware and software, in order to verify that the system can be implemented with known hardware technology.

The following are among the areas to be considered as part of the evaluation: architectural design, software system design, new software techniques, new software applications, components and circuitry, system performance, operating systems, principal applications, manpower and cost. The entire program is expected to require from five to eight years to reach fruition. Results will be shared on an equal basis.

F. Disk Manufacturing Plant — To build a plant for manufacturing mass storage devices based on removable magnetic disk packs with up to 100 million byte capacity per each pack. The yearly plant output shall be 5,000 device units and 60,000 units of magnetic disk packs (approximate estimate). It is expected that 80% of the plant output will be-30 mega-byte devices and 20% will be 100 mega-byte devices.

G. Printer Manufacturing — To build a plant to manufacture line printers to operate at a speed of 1,200 lines per minute. The yearly output shall be 3,000 devices (approximate estimate).

H. Process Control Devices Manufacturing — To build a plant for the manufacture of process control oriented peripheral devices, including data collection, analog/digital gear, terminals etc. The annual plant output for all devices, including data collection, is estimated as approximately 20,000 units.

Note: With respect to Items F, G and H, the Parties shall jointly develop technological documentation for manufactured products in accordance with the metric system standard and insure that all aspects of the plant(s) design and construction are of the highest quality such that the manufactured output will be fully competitive in all respects within the world market place. Control Data Corporation shall deliver technical documentation, complete sets of technological equipment, as well as know-how, and full assistance in order to insure mastering of full production techniques.

I. Printed Circuit Board Manufacturing — Delivery to the USSR of a complete set of equipment for the manufacturing of multilayer printed circuit boards.

J. RYAD/Control Data Corporation Information ProcessIng Systems — Joint creation of information processing systems based on the use of Soviet manufactured computers and Control Data Corporation equipment. Control Data Corporation equipment would include local peripheral sub-systems as well as communications hardware, including front-ends, remote concentrators and terminals. It is expected that the system would include operational software jointly created to make a viable computer system for applications to problems in other parts of the world which could be commercially saleable as a total system.

K. Process Control and Remote Communications Concentrator Manufacture — To organize within the Soviet Union manufacturing of Control Data Corporation licensed remote communication equipment and analog to digital components for standalone use within technological process control systems. It must be kept in mind that such devices and components must satisfy requirements of both the Soviet Union and Control Data Corporation. Control Data Corporation evaluates that it can buy back approximately $4,000,000 worth of these products.

L. Network Information System (CYBERNET) — Joint study to provide a proposed specification for a Soviet computer communication network. Dimensions of networks to be explored will include both the distribution network between terminal users and processing center as well as an eventual bulk transfer network between cluster centers and private satellite centers. The USSR will develop systems and applications software for this Network Information System based upon the present commercially available Control Data Corporation network software system. The resultant software will be available and shared by both Parties. The various data communications technologies will be evaluated as one of the major tasks of the study.

M. Control Data CYBER 70 Data Processing Centers — Joint creation of processing centers which will utilize computers and other equipment of Soviet manufacture and those of Control Data Corporation for organization/application such as, but not limited to, those specified below:

1) World Hydrometeorological Institue, Moscow, for processing of weather data for forecasting and in preparation of weather maps.

2) Institute of High Energy Physics, Scrpukhov, for nuclear research, reduction of accelerated data, and basic particle research.

3) Ministry of Geology, Moscow, for seismic data reduction.

4) USSR Academy of Sciences, Academ Goradok, Novo-sibirsk, for operational numerical weather forecasts, as well as for on-line concurrent processing of scientific data from experiments related to atmospheric, gas dynamics, weather research and basic scientific research.

5) Ministry of Chemical Industry, Moscow, for an information processing network and plant and pipeline control.

6) Ministry of Oil Refining, Moscow, for electric distribution and plant design.

IV. In order to launch the above noted programs into viable, successful implementations, Control Data Corporation is prepared to advance long term credit on mutually beneficial terms through Commercial Credit Company, its financial affiliate. It is expected that the total volume of credit required for financing of the full dimensions of the Scientific and Technological Agreement may reach 500 million dollars. It is further expected that repayment of such credit will be made in the form of Western currencies. Commercial Credit Company is prepared to assist the USSR in obtaining such currencies by working jointly with the appropriate authorities in the USSR in the worldwide marketing of Soviet products and in the development of natural resources for which sustained world demand exists.

In the process of developing specific programs to generate currency for credit repayment, Control Data Corporation offered the following proposals for consideration:

A. Financing — Control Data Corporation is prepared to assist the USSR in obtaining the financing needed to accomplish the above noted objectives. Through its wholly-owned subsidiary, Commercial Credit Company, Control Data Corporation can marshal substantial long term credit to facilitate Soviet purchases of equipment and technology projected under the Agreement, as well as credit for potential customers for worldwide sales of Soviet products and materials.

Commercial Credit Company will take the initiative in assembling consortiums of major leaders to extend long term credit to the USSR on mutually beneficial terms. Commercial Credit Company is also prepared to use its Luxembourg facility to make use of U.S. Export/Import Bank financing to the extent such credit is available to finance the export of Control Data Corporation equipment to the USSR.

B. Joint Venture Marketing Company — A marketing company jointly owned by a competent Soviet organization and Commercial Credit Company will be established. The company would be incorporated in Western Europe and would be a self-sufficient, profit oriented entity.

The prime purpose of the company would be to sell the service non-computer-related Soviet products in the Western world on the open market. In addition to selling the products of the USSR the Joint Venture Marketing Company will develop, in conjunction with Commercial Credit Company, economic and trade forecasts for the near to medium term future in the Western world that will indicate market trends, requirements and shortages, which can be fed back into the USSR five-year planning activities to insure that future USSR exports meet the requirements of future Western markets.

C. Natural Resource Development — Soviet natural resources are the largest of any single country in the world. The key to world trade in excess natural resources, not required for domestic use, is the creation of additional facilities to obtain and profitably dispose of these resources.

The financial resources and worldwide industry associations of Commercial Credit Company will be employed to create appropriate consortia having four major functional entities: a. finance b. resource extraction and processing expertise c. construction and operation expertise d. sales outlet for processed products

Natural resources to be considered would include, but not be restricted to: timber products, non-ferrous metals, precious metals and stones, asbestos, apatite, cement, synthetic rubber and resins, and coal.

The present Letter of Intent is executed in two versions, both in Russian and English. Both versions of the text have equal validity.


For the State Committee
of the USSR Council of
Ministers for Science
and Technology

        For Control Data
Corporation

For the USSR Ministry
of Foreign Trade

 



English version of Agreement between State
Committee of the Council of Ministers of the USSR
for Science and Technology and Control Data
Corporation (signed by Robert D. Schmidt),
dated 19 October 1973.


On Scientific and Technical Cooperation between the State Committee of the Council of Ministers of the USSR for Science and Technology and Control Data Corporation (USA)


The State Committee of the Council of Ministers of the USSR for Science and Technology (GKNT) and Control Data Corporation (CDC), hereinafter called "Parties",

Considering that favourable conditions have been created for extensive development of a long-term scientific and industrial and economic cooperation;

Taking into account the mutual interest of both Parties in the development of such cooperation and recognizing the mutual advantage thereof; and

In accordance with Paragraph 8 of the "Basic Principles of Relations between the Union of Soviet Socialist Republics and the United States of America", signed on May 29, 1972, and Article 4 of the "Agreement Between the Government of the USSR and the Government of the USA on Cooperation in the Fields of Science and Technology" concluded on May 24, 1972;

Have agreed as follows:

ARTICLE 1

The subject of the present agreement has to do with a long-term program for a broad scientific and technical cooperation in the area computational technology, and specifically;

–To conduct joint development of a technically advanced computer;

–Joint development and organization of the production of computer peripheral equipment;

–Joint creation of information processing systems based on the technical means of Soviet production and on the technical means developed by CDC and the development of software means for these systems;

–Joint development of Analog to Digital Equipment for control systems of technological processes;

–Joint development of computer components, technical equipment for their production and the organization of production of these components.

–Development of computer memories (based on large volume removable magnetic disk packs, and on integrated circuits, etc.).

–Creation of equipment and systems for data communication;

–Application (use) of computers in the fields of medicine, education, meteorological, physics, and etc.;

–Preparation (training) of specialists in the area of computer technology;

The scope of this Agreement may at any time be extended to include other fields of specific subjects of cooperation by agreement of the Parties.

This Agreement is not limiting either Party from entering into similar cooperation in the said fields with a third Party.


ARTICLE 2

Scientific and technical cooperation between the Parties can be implemented in the following forms with specific arrangements being exclusively subject to mutual agreement between appropriate Soviet organizations and the firm of Control Data Corporation:

–Exchange of scientific and technical information, documentation and production samples;

–Exchange of delegations of specialists and trainees;

–Organization of lectures, symposia and demonstrations of the production samples;

–Joint research, development and testing, exchange of research results and experience;

–Mutual consultations for the purpose of discussing and analysing scientific and technical problems, technical principles, ideas and concepts in the appropriate area of cooperation;

–Creation of temporary joint research groups to perform specific

projects and to produce appropriate (joint) reports.

–Exchange, acquisition or transfer of methods, processes, technical equipment, as well as of "know-how" and of licenses for the manufacture of products.


ARTICLE 3

The Parties have established that financial, commercial, and legal questions related to advancement of credit and payments for the delivered products and technical equipment, assignation of licences and "know-how" as well as supplied services in performance of the various joint projects, relative to the present Agreement, shall be decided by separate agreements between appropriate competent Soviet organizations and the Control Data Corporation.


ARTICLE 4

For the practical implementation of the present Agreement the Parties shall establish a Coordinating group, from authorized representatives (coordinators) which shall determine and recommend a proper course for the cooperation and also to control compliance with responsibilities assumed by the Parties, and to take the necessary action for the successful implementation of the objectives of the present Agreement. For the preparation of proposals for the concrete cooperative projects, there shall be established special groups of experts whose task it will be to determine technical and economic feasibility of the joint projects and to draw up action plans for their realization. The results of these working groups shall be turned over to the Coordinating group for their discussion and preparation of recommendations.

Recommendations and proposals of the Coordinating group will be presented in the form of protocols, which will be used as the basis for preparation of separate protocols or contracts.

Coordinating and working groups shall meet as frequently as is necessary to perform their functions alternativelly in the USSR and USA unless otherwise agreed.


ARTICLE 5

Scientific and technical information furnished by one Party to the other under this agreement may be used freely for its own research, development and production, as well as the realization of finished products unless the Party supplying such information stipulates at the time of its transfer that the information may be used only on the basis of special agreement between Parties. This information can be transmitted to a third Party only with the approval of the Party which has furnished it.

Information received from a third Party which cannot be disposed of at will by one of the Contracting Parties is not subject to transmittal to the other Party unless mutually satisfactory arrangements can be made with the third Party for communication of such information.

It is contemplated in the foregoing that any organizations or enterprises of the USSR and any wholly owned or partially owned Control Data subsidiaries shall be not regarded as a third Party.


ARTICLE 6

Expenses of travelling back and forth of specialists of both Parties under the programs related to this Agreement, as a rule will be defrayed as follows:

–The Party sending the specialists pays the round-trip fare.

–The host Party bears all costs connected with their stay while in its own country.

The duration of the above visits and the number of specialists in each group shall be mutually agreed to by the Parties in advance of the visits.

Organizational questions, arizing from implementation of this present Agreement shall be discussed and determined by the Parties in the course of working.

The present Agreement shall continue for a period of 10 (ten) years and shall enter into force immediately upon its signature. It can be extended with mutial agreement of the Parties.

The cancellation of the present Agreement shall not affect the validity of any agreement and contracts enetered into in accordance with Article 3 of the present Agreement by organizations and enterprizes of the USSR and CDC.

Drawn up and signed the 19 October 1973, in the city of Moscow, USSR, in duplicate, one copy in Russian and one in English, both texts being equally authentic.

For the State Committee of the Council of Ministers of the USSR for Science and Technology
/s/ (illegible)
   For the Control Data Corporation
/s/Robert D. Schmidt

 

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