500.A15A4 General Committee (Arms)/100: Telegram

The American Delegate ( Wilson ) to the Secretary of State

987. During the discussion on chapter 2 and chapter 3 of the American draft this morning the Soviet delegate proposed with the object of equalizing the control of state and private manufacture to include a list of private establishments under subparagraph “A” of article 7 and stated furthermore that the possibilities of production of all arms manufacture establishments should form part of the system of publicity.

Stanhope proposed to add a new article to chapter 3 which when presented would abolish the system of governmental export credits to manufacturers. He emphasized the importance of an article of this nature as any such system tends to unrequired and unwarranted increase in arms production. This is especially true of export credits with respect to heavy land materials, naval vessels and aviation. The British delegation attaches much importance to this proposal and will press for its adoption in committee.

I would appreciate instructions covering this point raised by the British.