740.00119 Council/12–847: Telegram
The Acting Secretary of State to the Secretary of State at London 1
5156. Secdel 1544. For the Secretary from Lovett. The question of trade with Russia and eastern Europe, which was subject of paper2 which Harriman placed before National Security Council on November 14, has been given very careful study in Department. I have now sent reply to Harriman stating substantially the following:
That we feel that rather than place all exports to Europe under control as proposed in Harriman paper it would be preferable to do what we can to curtail undesirable exports to Soviet sphere by adding items to list of those under control for world at large; that we understand from conversations with Commerce officials that they object to this procedure on account of undue burden it would impose upon business community, and government; that we would be glad to discuss further with them means by which these objections could be overcome; but that if they still feel this procedure is unfeasible and would not duly protect national interest then we prefer to adopt, of the various alternative solutions, the one proposed in the Harriman paper, with certain minor modifications.
I have asked Harriman to make no use of my letter until I have had a chance to consult you and to see whether you have any objection to our taking this position.
This is one of the knottiest problems we have had to handle and position outlined above is taken in light of many conflicting factors, which include keen congressional interest, possible effect of our international treaty obligations and on Habana Conference, and relatively small amount of present trade with Russia.