Foreign Relations of the United States, 1958–1960, Foreign Economic Policy, Volume IV

282. Memorandum of Discussion at the 368th Meeting of the National Security Council⁰

June 19, 1958.

[Here follows a paragraph listing the participants at the meeting.]

1. Basic National Security Policy (NSC Action No. 1903;¹ NSC 5810/ 1;² Memo for NSC from Executive Secretary, same subject, dated May 26, 1958³)

General Cutler explained that the President would be delayed for a few minutes and he would accordingly change the order of items on the agenda, dealing first with the question of U.S. policy with respect to international commodity agreements which had been unresolved when the Council last discussed it in connection with Paragraph 27–d of our new Basic National Security Policy (NSC 5810/1), at the Council meeting on May 1, 1958. He pointed out that on this occasion the issue had been referred to the Council on Foreign Economic Policy. On May 22, 1958 the Chairman of the CFEP, Mr. Randall, had filed a report with the Council giving the text of existing CFEP policy on international commodity agreements and also the consensus of the CFEP that this policy remained valid and should be continued in effect. (A copy of General Cutler’s briefing note is filed in the Minutes of the Meeting and another copy is attached to this memorandum.)⁴

At the conclusion of General Cutler’s briefing, Secretary Dulles stated that he had an observation to make with respect to the text of our policy in the matter of commodity agreements. He pointed out that the text of our policy as formulated by the CFEP revealed two different emphases. The first paragraph which reads as follows:

“The United States shares the concern of other nations about the problems arising from commodity price and market instability and is prepared to discuss and explore with other governments possible approaches to these problems”

according to Secretary Dulles emphasized the willingness of the United States at least to discuss and explore approaches to these problems. On the other hand, the last paragraph of our policy reading as follows:

“Representatives of the United States will not participate in any discussion or meeting with respect to an international commodity agreement and will make no commitment as to U.S. participation in such an agreement until approved at the interagency policy level within the Executive Branch.”

appeared to have a somewhat conflicting emphasis. It seemed quite possible to Secretary Dulles that the discussions authorized by the first paragraph could lead to a commodity agreement in which other nations than the U.S. would participate. A current example is that of coffee. Under existing world economic conditions, Secretary Dulles felt that we would want to be sure that the first paragraph of this policy was liberally interpreted when it was implemented although of course we would not agree to actual U.S. participation in any commodity agreement.

Mr. Randall said he not only understood Secretary Dulles’s point but agreed with him. Indeed this specific matter had been discussed at great length by the CFEP. The general view in the CFEP was that the U.S. should go ahead and discuss commodity problems with other nations as much as they desired but not to the point of sticking our necks out too far and being committed to participation in an international commodity agreement. Mr. Randall thought it was extremely difficult to express in words the sensitive emphases that both he and Secretary Dulles were agreed upon. It was hard to draw so fine a line.

Secretary Dulles said he believed that Mr. Randall was on the right track. Under current conditions the U.S. simply could not hold itself aloof from these problems of commodity price and market instability as we had been in a position to do when our policy on this subject had first been adopted and when commodity prices were relatively high.

The National Security Council:⁵

a. Concurred in the recommendation by the Council on Foreign Economic Policy, prepared pursuant to NSC Action No. 1903–b-(5) and transmitted by the reference memorandum of May 26, 1958, that existing policy on international commodity agreements is satisfactory and should be continued.

b. Noted a statement by the Secretary of State that, in the implementation of U.S. policy on international commodity agreements, a liberal interpretation should be given to that portion of the policy which states that the United States is prepared to discuss and explore with other governments possible approaches to problems arising from commodity price and market instability; while adhering to that portion of the policy which states that the United States will not participate in any discussion or meeting with respect to an international commodity agreement and will make no commitment as to U.S. participation in such an agreement until approved at the interagency policy level within the Executive Branch.

Note: The above actions, as approved by the President, subsequently transmitted to the Chairman, CFEP.

[Here follow agenda items 2–7.]

S. Everett Gleason

0. Source: Eisenhower Library, Whitman File, NSC Records. Top Secret; Eyes Only. Drafted by Gleason on June 20.
1. This NSC action, approved by the President on May 5, outlined the NSC action on NSC 5810 including the referral of the question of U.S. policy on international commodity agreements to the Council on Foreign Economic Policy. (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95) See Document 279.
2. See Document 279.

3. In this memorandum, Executive Secretary of the NSC James S. Lay, Jr., transmitted a May 22 report by Randall, Chairman of the Council on Foreign Economic Policy, on U.S. policy toward international commodities agreements. Randall’s report is summarized in a briefing note by Robert Cutler for use at the NSC meeting, which reads as follows:

   “5. Mr. Randall reported to the Council on May 22 (circulated May 26) the consensus of the CFEP that the existing CFEP policy on international commodity agreements should be continued. Acceptance of this report would obviate the inclusion of any paragraph in the basic policy statement on this subject.

   “6. It may interest the Council to know that the CFEP, under the exceptions procedure in its existing policy, recently authorized the Department of State to participate in an international coffee study group and to discuss an international coffee agreement if such an agreement is proposed by one of the members of the study group. However, the CFEP urged State to take every precaution not to imply directly or indirectly, that the U.S. would participate in or police such an agreement.” (Eisenhower Library, White House Office Files, Records of the Office of the Special Assistant for National Security Affairs)

4. Not printed. The minutes of all National Security Council meetings held during the Eisenhower administration are in the National Archives and Records Administration, RG 273, Records of the National Security Council, Official Meeting Minutes File.
5. Paragraphs a-b and the note constitute NSC Action No. 1926, approved by the President on June 23. (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council)