840.50 Recovery/8–1648: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
confidential
London, August 16,
1948—5 p. m.
3706. Makins called Bliss1 to FonOff Aug 11 and made oral but formal statement of UK attitude toward East-West trade which he wished to have noted by USG. Makins prefaced statement by stating UK desired guidance from US in formulating common policy on East-West trade and explaining purpose present action keep US informed in order prevent future misunderstandings.
Statement stressed that UKG:
- 1.
- Believes promotion East-West trade to 1938 level was a Marshall Plan objective and most important to ERP and to UK recovery.
- 2.
- Prohibits, however, exports Eastern Europe arms, ammunitions, equipment for producing these, certain other types mil equipment, certain chemicals and minerals set forth Group 17 Export of Goods Order, 1948. Controls export additional goods of mil significance through consultation with manufacturers.
- 4.
- Until different UK-US policy agreed and in spite of possible US eventual objections, UK will have to exercise its own discretion in giving businessmen assurances there will not be subsequent disapproval by UKG of delivery specific items for which orders being placed and itself will have to honor commitments which may be included in agreements under discussion USSR and Yugo and imminent with Poland.
- 5.
- After careful study EC Act and Co-operation Agreement, UK feels no obligation prohibit export Eastern Europe commodities such as rubber which are not delivered UK by US under ECA Program.
It is suggested contents this tel be brought attention ECA Washington and Paris.
Douglas
- Don C. Bliss, Counselor of Embassy for Economic Affairs, London.↩