Foreign Relations of the United States, 1951, National Security Affairs; Foreign Economic Policy, Volume I

S/P–NSC Files, Lot 62 D1, NSC 94 Series¹

Memorandum by the Special Committee on East-West Trade to the National Security Council²

secret

[Washington, February 8, 1951.]

1. NSC 94/1,³ approved December 21, 1950, called for examination of the trade relations between Soviet bloc and non-Soviet bloc countries, particularly those receiving U.S. economic and financial assistance, and directed the Special Committee on East-West Trade to make recommendations to the Council wherever the security interests of the United States may be involved, in particular, as described by Public Law 843, Section 1304 (the Cannon Amendment).⁴

2. The Special Committee on East-West Trade has made an examination of the trade between the Soviet bloc (including China) and the several countries of Latin America and the Near East and Africa listed in Attachment A. Accordingly, the Special Committee recommends that the National Security Council:

a. Note the following determinations:

(1) The outstanding feature of the trade between the countries of Latin America and the Soviet bloc is that it is of very small magnitude. The exports to the Soviet bloc consist preponderantly of agricultural and pastoral products; imports from the Soviet bloc consist of a wide diversity of products, largely manufactured goods. No significant quantity of any commodity strategic to the Soviet bloc is being obtained by the Soviet bloc from Latin American sources.

(2) The main feature of the trade between the Soviet bloc and the countries of the Near East and Africa is that it also is small. Exports to the Soviet bloc consist mostly of agricultural and pastoral products, though there are also comparatively small quantities of some minerals and metals. Imports consist of a wide range of goods, mostly manufactured. The commoditiesstrategic to the Soviet bloc available to it from these countries are limited in number and available only in small quantities. Any shipments of short-supply commodities, such as cotton from Egypt, are not such as to effect significantly their availability to the United States.

b. In view of the determinations in a above, agree that action to terminate U.S. economic and financial assistance to any of the countries listed in Attachment A, is not at present called for by reason of the character of the trade between those countries and the Soviet bloc.

c. Direct the Special Committee on East-West Trade:

(1) To continue its examination of trade between the Soviet bloc and the countries of Latin America and the Near East and Africa listed in Attachment A.

(2) To scrutinize particularly the possible use of Buenos Aires and Angola as transshipment points, and the shipments of henequen from Mexico, of non-ferrous metals from Turkey and of cotton from Egypt to the Soviet bloc so that any necessary action may be promptly recommended to the National Security Council.⁵

Attachment A

latin america

Argentina	Haiti
Bolivia	Honduras
Brazil	Mexico
Chile	Nicaragua
Colombia	Panama
Costa Rica	Paraguay
Cuba	Peru
Dominican Republic	El Salvador
Ecuador	Uruguay
Guatemala	Venezuela

near east and africa

Egypt	British African Colonies (not including Union of South Africa)
Greece	French African Colonies
Iran	Portuguese African Colonies
Israel	Belgian African Colonies
Lebanon	Ex-Italian African Colonies
Syria	Liberia
Turkey	Ethiopia

1. Serial and subject master file of National Security Council documents and correspondence for the year 1948–1961, as maintained by the Policy Planning Staff.
2. According to a covering memorandum, not printed, the source text was circulated on February 8 to members of the National Security Council for their consideration at a future meeting. (Memorandum by Acting Executive Secretary S. Everett Gleason, February 8; S/P–NSC Files, Lot 62 D 1, NSC 94 Series)
3. NSC 94/1 is printed in Foreign Relations, 1950, vol.iv, p. 249.
4. In a memorandum by Assistant ‘Secretary of State Willard L. Thorp which recommended to the Secretary of State that he approve the report of the Special Committee, Thorp explained that although the Cannon Amendment technically required a finding by the National Security Council only when trade with the Soviet bloc was judged to be contrary to United States security interests, the consensus of the Special Committee was that the Council would wish to make a positive finding with respect to the trade of each recipient country whenever warranted by the facts. This was the justification for bringing the source text to the attention of the Council. (Memorandum by Thorp, February 20; S/S–NSC Files, Lot 63 D 351, NSC 94 Series)
5. At the 84th Meeting of the National Security Council on February 21, the recommendations contained in paragraphs 2–a, b, and c were approved. (Memorandum by Executive Secretary Lay, February 23; S/P–NSC Files, Lot 62 D 1, NSC 94 Series)