Editorial Note

When NSC 104 was discussed by the National Security Council, together with the Secretaries of the Interior, Agriculture, and Commerce, the Acting Secretary of the Treasury, the Administrator for Economic Cooperation, the Director of the Bureau of the Budget, and the Director of Defense Mobilization, during the Council’s 84th Meeting on February 21, attention was largely focused on the revision of paragraph 2 of the “Recommendations on Substantive Measures” (Part II–A). The revision under discussion was Annex B to Assistant Secretary of State Thorp’s memorandum to Secretary Acheson of February 20 ( page 1051) which evolved out of a compromise between the Departments of State and Commerce. This revision of paragraph 2 was approved during the meeting subject to the deletion of the words “as an internal Watch List” requested by President Truman and a copy of the amended paragraph was circulated to members [Page 1055]of the Council as NSC 104/1 of February 21. The Secretary of Commerce was also instructed by the President to take appropriate action in light of the newly approved policy. The remainder of NSC 104 and the accompanying reference papers were sent to the Special Committee on East-West Trade for further study and revision. (NSC Record of Action 443, February 21; S/S–NSC (Miscellaneous) Files, Lot 66 D 95, Record of Actions–1951)

The Council, joined by the Secretary of Commerce, the Acting Secretary of the Treasury, the Administrator for Economic Cooperation, and the Director of Defense Mobilization, then approved the recommendations contained in paragraphs 2–a, –b, and –c of the memorandum by the Special Committee on East-West Trade which was circulated to members of the Council on February 8 ( page 1018). (NSC Record of Action 444, February 21; S/S–NSC (Miscellaneous) Files, Lot 66 D 95, Record of Actions–1951)

On February 26, Executive Secretary of the National Security Council, James S. Lay, Jr., circulated a letter from Secretary of Commerce Sawyer to members of the Council in which Sawyer canceled the NSC 102 project in light of the approval by the Council and the President of NSC 104/1. (S/S–NSC Files, Lot 63 D 351, NSC 102 Series)