Foreign Relations of the United States, 1950, Central and Eastern Europe; The Soviet Union, Volume IV

460.509/9–1950: Telegram

The Acting Secretary of State to the Embassy in France ¹

secret
no distribution outside department

Washington, September 23, 1950—7 p. m.

1498. Excon. Reurtel 1428, Sept 19.² NSC decision re use NATO defense and military comites for reaching agreement on military viewpoint re export controls based on belief that discussion export control policy in NATO wld support but not supplant efforts made in CG/CoCom. Reurpara 2, Dept position has been that it is desirable to relate CG/CoCom operation to NATO, but to keep center for action in CG/CoCom, while making use of NATO forum to exert additional pressure on govts concerned to accept US viewpoint. Will advise further re Defense plans for NATO discussions, and re possible changes in Dept’s position on relationship CG to NATO.

Reurpara 3. Sawyer speech was based on his interpretation NSC decision. On Sept 19, Commerce presented to other agencies represented on R Proc Subcomite an ACR Program Determination drawn up by Secy Commerce without consulting Advisory Comite.³ This was presented as basis for licensing actions to be taken by R Proc Subcomite. Text this document will follow by air pouch, but Dept and ECA in process reviewing whether Secy Commerce policy statement is a proper interpretation of NSC intent. State and ECA will hot concur in any steps to implement the policy pending the outcome of such review. Will inform you of same.

Sawyer Program Determination states in summary that 1A items, whether on IL/II or IL/III, not yet proposed to CoCom, rejected by CoCom, or added to US 1A list after Sept 15 will be denied export to Western European countries including Sweden, Switzerland, Austria, Portugal and Spain, unless assurances are received by Dec 31 or in case List III items by Oct 9 that the country in question will embargo the items to the Sov Bloc. Capital equipment wld be denied export to Western Europe where there is “evidence that the equipment will be used to produce a 1A item which the country of destination is shipping, or may ship, to the Sov Bloc”. Approval 1A items to non CoCom Western Europ countries and to CoCom countries for 1A’s on List III, those rejected by CoCom, or those pending final determination, is dependent on finding evidence that the country of destination is not shipping items within “the particular 1A listing” to Sov Bloc. Policy in Program Determination to apply without regard to existence trade agreements. OIC⁴ is given authority to determine necessity for denials.

Dept most disturbed at implication new policy wld represent abandonment concept of seeking cooperative multilateral control program through CG/CoCom and wld replace this by unilateral program US controls accompanied by enforcement through coercion without regard to balanced evaluation US total security interests. Sawyer interpretation of policy to be applied to 1B shipments not yet announced to other agencies.

Will keep you informed further developments.

Webb

1. Repeated to London as telegram 1579.
2. Not printed. It asked that the Embassy in France be advised regarding plans to seek agreement, through the North Atlantic Treaty Organization, on East-West trade, the future relationship between NATO and the Consultative Group–Coordinating Committee system, and the implications of the Secretary of Commerce’s speech reported upon in telegram 1290, September 9, to Paris, p. 184 (460.509/9–1950).
3. Under reference here is Advisory Committee on Requirements Program Determination No. 381, September 18, 1950, not printed (S/S–NSC Files, Lot 63 D 351, NSC 69 Series).
4. Office of Industry and Commerce of the Department of Commerce.