460.509/9–1150: Telegram

The Secretary of State to the Embassy in the United Kingdom 1

secret
priority

1305. Excon. Deptel 1093, Aug 29, rptd Paris 1033.2

1.
As result latest consideration in Dept and consequence NSC decisions, Dept will broaden its approach to Brit and Fr at FonMin mtgs as compared with position taken in prelim mtgs. In addition to remaining firm on original US proposal that PCs substantially accept our 1–B list, which means recognition of principle that controls shld be expanded to cover key industrial production areas, Dept will also propose agreement on general principles governing extent and methods of control to be exercised over items selected for control. Dominant thought at this time is to get explicit agreement which will permit more rapid progress at next CG/CoCom mtgs and can be reviewed after sufficient time has passed to test adequacy of agreed principles.
2.
From viewpoint negotiating tactics, and in light of whole history this negot, it is obvious we cannot expect agreement on substantially complete control list with approx full extent of controls originally proposed, and also expect agreement on our original proposals as to methods of control (i.e., preconsultation, CoCom determination of individual quotas). Raising all issues concurrently implies minimum compromise must be faced now. Preferable it shld be on methods of control where we believe retreat from original proposal inevitable in any case.
3.
Decision therefore is to accept substantially Brit argument that preconsultation is unworkable and agree to unilateral determination of quotas or other controls over items such as in Groups I and II of US 1–B list, but to insist on clear understanding as to extent of control desired; namely, (a) limiting Group I type shipments to minimum token amounts which PCs will have to justify (ex post) on grounds econ necessity; (b) limiting Group II type shipments to average of fifty percent of 1947–49 average exports in this category as a whole, permitting each PCPC to determine degree of reduction required in specific items to each desired cutback; and (c) exchanging info re exports of foregoing and all other listed items.
4.
Foregoing objectives reflected in fol draft of an agreed minute which Dept will propose be accepted at NY mtgs beginning Tues. Copies handed to Brit and Fr Embs today and understood cabled FonOffs.

[Here follows the text of the American draft of an agreed minute on East-West trade, dated September 9, subsequently circulated to the meeting of the Foreign Ministers as document 33, September 13 and printed in volume III, page 1285. The final agreed minute of September 19 is printed infra. Substantive differences between the American draft and the final agreed minute are analyzed in telegram 1483, September 22, to Paris, page 191.]

Acheson
  1. This telegram was repeated to Paris as 1236.
  2. Ante, p. 181.