693.0031/4–2249: Telegram

The Secretary of State to the Ambassador in the United Kingdom (Douglas)

1382. Dept on Feb 10 and Mar 22 discussed with Graves of Brit Embassy here proposed policy for treatment trade with China with special reference Communist problem North China, seeking Brit cooperation. Policy proposed envisages continuance trade normal civilian requirements but excluding items direct mil utility Commies and restricting shipments selected items 1–A and 1–B lists under R–Procedure where such items likely be transshipped Sovs or satellites. Graves promised seek reaction from FonOff. (See memos conversations transmitted Mar 16 and Apr 18 under Instr 183.27 Memo this subj handed Brit Emb Apr 21 (copy pouched) in response FonOff statement transmitted Dept by Brit Emb memo Apr 5, copy pouched Apr 12).

In Dept’s view China situation requires prompt action. US export controls applicable China now restricted Positive List items, making effective control US trade increasingly difficult as Positive List items decontrolled or placed on open-end quota. No public announcement trade policy for China made here, and trade constantly pressing for clarification. Appreciate your urging FonOff reply soonest view necessity action.

  1. Not printed.