693.0031/6–1149: Telegram

The Acting Secretary of State to the Ambassador in the United Kingdom (Douglas)38

2010. Brit Emb presented memo May 31 in response Dept’s proposals re coop application controls on exports China. Memo did not address itself to desirability controls in principle, but discussed difficulties adequate controls various supplying countries and entrepôt [Page 854] centers, and emphasized that Brit action wld depend prior satis solution such difficulties. In discussion memo Dept pointed out that it had felt Brit agreement in principle was prerequisite consultation other govts and that Brit memo represented no advance beyond position initial discussions in Feb. In response inquiry, Brit Counselor stated his belief Brit Govt wld not permit unrestricted export Chi and that Dept assumption correct Brit Govt agreed in principle desirability appropriate controls.

Memo concluded with statement Brit Govt willing consider concrete US proposals in technical level discussions, and that FonOff felt such discussions cld most profitably be carried on London. Dept handed Emb memo dated Jun 11 [10] stating its understanding that Brit memo reflected agreement in principle that appropriate controls be instituted exports Chi, and accepting Brit invitation discussions London.

Dept has inquired orally of Brit Emb whether Jun 20 acceptable begin discussions, and Emb referring question FonOff by tel. Suggest Emb London follow up. Dept desires make rapid progress this regard. Intends send Martin39 (ITP) accompanied by McIntyre40 from Commerce and probably one or two assts. Anticipate that discussions wld require about one week. Will forward info re detailed arrangements promptly upon Brit response.

  1. Repeated to the Consul General at Shanghai as No. 1174.
  2. Edwin M. Martin, Acting Director of the Office of International Trade Policy.
  3. Francis B. McIntyre, Assistant Director of the Office of International Trade, Department of Commerce.