693.009/12–849
Memorandum of Conversation, by Mr. Robert M. Magill of the Division of Chinese Affairs
| Participants: | FE—Mr. Merchant |
| CA—Mr. Barnett, Mr. Magill | |
| ITP—Mr. Armstrong | |
| EUR—Mr. Jackson | |
| Mr. Graves—British Embassy | |
| Mr. Ford—British Embassy | |
| Mr. Burns—British Embassy |
Mr. Graves called today with his colleagues from the British Embassy to present a draft on the subject of export controls to China which the Foreign Office intended should be submitted to the French, Dutch and Belgian Governments as a parallel to a similar note which the British anticipated that the U.S. would transmit. Mr. Graves indicated that the British would be happy to consider any changes or additions that we might wish to suggest and that they would, of course, like to see a draft of our note with an opportunity to comment before it was transmitted.
The draft British note was accompanied by an informal memorandum77 commenting on several aspects of the problem. Mr. Graves summarized the contents of the memorandum, emphasizing particularly the British concern that our intention to except Taiwan from an embargo of 1–A exports would represent a serious breach in the policy which might well undermine its basic structure. Mr. Merchant explained the U.S. position regarding exports to Taiwan, indicating that while 1–A exports to Taiwan would be subject to the same controls and close scrutiny as exports to China itself, we could not consider at this time shutting the door on all exports to Taiwan in the 1–A category—that to do so might ensure Communist occupation of the island. He asked Mr. Graves whether the British considered that U.S. agreement to deny all. 1–A exports to Taiwan was a prerequisite to their cooperation on the general implementation of controls vis-à-via China. Mr. Graves indicated that he could not interpret the views of the Foreign Office beyond the face value of the language contained in the memorandum.
Mr. Merchant observed that the draft British note did not address itself to our desire for collaboration by the Dutch Government in arrangements with the major oil companies to control petroleum sales to China, and queried whether the British felt that this matter should be taken up separately with the Dutch. Mr. Graves responded that he [Page 901] assumed that it would not be necessary to discuss the matter with the Dutch Government since it could be handled adequately through British interests in Shell. Mr. Magill recalled that the original British proposals in their note of last August had called for an approach to the Dutch Government on this matter, and Mr. Merchant commented that, since Dutch interests would be involved, it would seem only appropriate that the proposed arrangements with the companies be discussed with the Dutch Government.
Mr. Merchant concluded by stating that we would give the British draft further consideration and that we would, of course, show them a copy of our proposed note as soon as it had been prepared.
- See enclosures, to despatch No. 1888, supra.↩