600.119/6–1749: Telegram

The Acting Secretary of State to the Ambassador in Korea (Muccio)

473. In near future US plans impose R–procedure export controls on US exports to China, Manchuria, Taiwan, Hong Kong, Macao, [Page 855] North and South Korea, possibly other Far East areas. R–procedure means that validated export license will be required for export of any commodity from US to those destinations. Purpose to prevent transshipment strategic items to USSR via China, Manchuria or other designated areas, prevent supply of goods to Chinese Communists for military purposes, and to provide means keeping under control exports to China and Manchuria of key goods of major importance to normal Chinese economy which may enable us influence to some extent orientation Chinese Communists and afford means protecting western commercial interests China. US is seeking cooperation other western powers, especially UK.

South Korea regarded here as potential transshipment area some importance due its proximity Manchuria and North Korea and therefore tentatively decided to include it R–procedure area. In order obtain cooperation UK and other powers necessary obtain effective control most important potential transshipment centers, and if R–procedure not imposed on shipments to South Korea would then be necessary obtain South Korean cooperation and rely entirely on such controls as that Govt could impose. This deemed unwise if avoidable, but Dept appreciates there may be adverse political reaction South Korea if US export controls are imposed on US shipments to that country.

Such controls wld not prevent South Korea obtaining goods to meet its own needs and wld affect only potential transshipments. Dept will of course inform you sufficiently in advance of date of announcement here to enable you to inform and explain to Govt. You shld not consult Govt at this stage, but Dept desires your own appraisal possibility adverse political reaction. Tele comment soonest, as needed here make final decision re South Korea for use Dept representatives sched discuss export controls with UK in London beginning June 20.