690.419/11–149: Telegram
The Chargé in the Soviet Union (Barbour) to the Secretary of State
[Received November 1—7:37 a. m.]
2729. Reference circagram October 11, p. m. 12:40, proposed export control China. Proposals represent concrete step toward desirable goal. We believe the cooperation of governments listed will effectively restrict access of Chinese regime to important items required by new government itself and by USSR which might hope to use Chinese front for own purchases. Significance control proposals augmented by British inclination follow unilateral policy.
Manifestly desirable continue pressure on UK and others to enlarge list controlled items. It appears probable that Peiping regime will with full support USSR hope to obtain maximum imports from non-Communist nations to rehabilitate economy and to commence announced goal of industrialization. Anything from west will mean less burden for Soviet sphere to shoulder. West may anticipate Chinese will exercise rigid control limiting imports to high priority items to conserve exchange while on other hand meeting Soviet demands before making exports available to west.
If non-Communist governments can be persuaded to adopt common policy toward trade with China and above all can be prevented from engaging in fight among selves for China market (which would inevitably lead to extension credit to finance trade), pressure on Soviet bloc will increase, either forcing USSR to underwrite Chinese economy or to admit unwillingness or inability to advance sufficient aid. It appears unlikely that USSR is prepared to make enormous investment necessary to revive and industrialize China. If Chinese can be made aware of this in course of time CCP will be weakened through failure its Soviet friends to produce and growth Titoism71 in CCP and anti-Communism along [among] Chinese people will be stimulated. While degree cooperation necessary to produce optimum desired [Page 889] effect may be impossible of achievement for practical reasons, any degree of success will have effect of increasing pressure on USSR. We note Portugal not being approached. History Macao as highly successful smuggling base despite shallow harbor suggests desirability at least requiring Portuguese cooperation as matter principle.
- Josip Broz Tito, head of Yugoslav Communist Party and State, who broke with Moscow in June 1948.↩