Foreign Relations of the United States, 1949, Eastern Europe; The Soviet Union, Volume V

740.00119 Council/6–149: Telegram

The Acting Secretary of State to the Embassy in France

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Washington, June 1, 1949—7 p. m.

Secdel 1632. From Martin ITP.¹ Urtel 1831, June 1.² On last Friday reps State. ECA and Commerce agreed on report from Sec Commerce to NSC.³ Subsequently approved at working level by NME and dispatched May 31. Not in time for NSC meeting June 2. Present plan of NSC secretariat is to circulate report as agreement of interested Depts on subject matter of NSC 46⁴ which makes further action by NSC on this paper unnecessary.

ACR recommendation is for retention of 31 items in dispute on 1–A list with minor modifications but recognizes need for continued review and in particular consideration of detailed technical data on which UK objections based. With respect to some of 11 items which the UK proposes to control only in part, modifications in US definitions have been agreed which go a considerable way toward meeting UK position. Paper also presents course of action agreed by interested Depts and McDaniels of OSR, now in Washington, on issues raised by original NSC draft. Main points are:

1. Negotiating agencies (State and ECA) agree to continue unremitting efforts to secure parallel action.

2. In such negotiations they are placing emphasis on obtaining with dispatch maximum agreement by all participants to UK list without foregoing continued negotiations on the remainder US list.

3. To extent feasible will encourage countries which have agreed already to US list to continue such agreement.

4. It is also agreed that technical personnel will be made available to assist in negotiations.

McDaniels reports French and Benelux countries have accepted UK list in principle and now no need for assurances that UK list was acceptable to US as contemplated in original NSC paper. McDaniels has reached agreement with Italians on retention full 1–A list provided US prepared to consider flexible treatment of any item, not agreed by UK, which becomes major issue in trade agreement negotiations. Believes items not agreed by UK unimportant in Norway trade but similar arrangement feasible there and in Denmark. While not too well informed on Bizone situation appears probable that same procedure could be followed there.

Propose to push ahead arrangements for technical mission subject to Harriman approval as to timing. Also pressing UK for detailed justification their rejections for consideration by technical steering committee and advisory committee to determine whether further changes in US 1–A list called for by this new information. Believe it is fully understood that in continuing to press for acceptance of US 1–A list Harriman as negotiator must have tactical discretion.

Proceeding with plans for ad hoc intergovernmental group to coordinate action on 1–A items for Finland and Yugo,⁵ quantitative restrictions on 1–B items, and control of transshipments.

ECA and Commerce concur. [Martin.]

Webb

1. Edwin McCammon Martin, Acting Director of the Office of International Trade Policy.
2. Not printed. In it, Secretary of State Acheson, who was in Paris for the 7th Session of the Council of Foreign Ministers, urgently requested a report on the status of trade control policy considerations and negotiating plans (740.00119 Council/6–149).
3. Not printed.
4. Not printed; see editorial note, p. 110.
5. Materials on the modification of trade control policies with respect to Yugoslavia; for documentation, see pp. 854 ff.