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

460.509/5–1251: Circular telegram

The Secretary of State to Certain Diplomatic Offices ¹

secret
priority

Washington, May 12, 1951—9 p. m.

705. Excon. Roundup on Depcirtel 693:²

1. Replies reed³ reftel as fol:

(a) UK. If publication essential UK agrees provided List II not published and provided other PCs concur.

(b) France. Strongly objects on grounds adverse effect on Fr elections and four power discussions. Bonnet called on Secty today to reiterate objections expressed Paris. Secty pointed out extreme seriousness Sen amendment and difficult position USGovt defend WE against charges of inaction if unable present facts. Secty concluded by saying that if becomes apparent that publication necessary in order permit continuance of econ aid, US hopes Fr will not maintain its objections.

(c) FedRep, Can, Den agree provided other PCs concur.

(d) Neth agrees with reserve on List II prov other PCs concur. Considers public statement shld make clear extent to which WE depends on supplies from Sov sphere.

(e) Belg agrees. Considers statement shld make clear exceptions from List I agreed in order permit honoring existing obligations. Dept assumes Belg reply also covers Lux.

(f) Nor. No final reply pending return FonMin Oslo May 13. FonOff SecGen stated personal view Nor wld reluctantly concur if “great powers” agree but wld prob reserve position on List II.

(g) Italy. No reply yet reed.⁴

2. Dept ECA Commerce and Defense have now prepared report mentioned cirtel 693. Report begins with introd arguing strongly against adoption Sen amendment, points to econ dependence WE on basic supplies (coal grain timber etc) from Sovbloc and shows adverse effect total embargo on WE economy and common defense program. States FedRep and Aus physically incapable meeting requirements of amendment and hence aid these areas wld have to be terminated, thus undermining their econ stability and polit independence. Also points out Amend wld gravely impair or destroy Point IV, Eximbank and other programs to aid underdeveloped areas.

3. Factual part of statement describes estab export control by WE in 1948, estab COCOM in late 1949, gives membership COCOM, describes increase in control lists, esp after Korea and gives general description of nature of lists with illustrations along lines statement Shawcross to Commons May 10.⁵ Present intention is that detailed items IL I and IL II will not be released to public (subject para 3, below). Report will state, however, that lists will be shown in confidence to interested Congressmen. Report then compares scope COCOM lists with US controls, pointing out IL I covers 90 percent of items subject to absolute embargo from US. Re IL II report states shipment these items in non-strategic amounts necessary for WE obtain supplies in return from Sovbloc, and that discussions continuing through COCOM machinery re special measures to bring about further limitation these items. Re China report explains COCOM lists also apply Commie China and that Hong Kong controls more stringent than those of any other country except US, Can and Jap. Sets forth US view that free world controls against China shld go further but that other countries unpersuaded wisdom US position in light their own judgment as to possible mil and polit consequences complete stoppage. Refers US resolution in AMC of UN and fact that UK will support. Re rubber, report states 90 percent world production goes to free world, but US view is that shipments Sovbloc excessive in relation peaceful needs. States that UK has placed rubber under restriction and embargoed shipments to China for balance 1951. Re petroleum points out that virtually all shipments from free world to Sovbloc cut off. Winds up with statement that Natl Security Council in Dec 1950 was of opinion that action to cut off aid under Cannon amendment was not then called for and wld be contrary US security interests.

3. For time being report outlined para 2 will be classified confidential. Plan is to present report to Senate–House conferees, other members of Congress early next week for their info.⁶ Report will not be made public unless necessary obtain modification Senate amendment. Dept hopes IL I need not be published in any event but this may become necessary.

Acheson

1. Drafted by Leddy and cleared with Ainsworth; sent to London, Paris, Rome, Brussels, The Hague, Oslo, Copenhagen, Lisbon, Frankfurt, and Ottawa.
2. Supra.
3. The telegraphic replies from the various embassies, which are summarized in the source text, are in Department of State file 460.509.
4. In the margin of the source text, a handwritten insert reads as follows: “Opposed on previous grounds plus fears connection forthcoming elections, but reluctantly agrees such further publicity as absolutely essential achieve purpose.”
5. For extracts from the speech by Sir Hartley Shawcross, President of the British Board of Trade, given to the House of Commons concerning British trade with the People’s Republic of China, see Folliot, Documents on International Affairs, 1951, pp. 562–570.
6. The Department of State informed the Embassy in Paris that the report under reference was given to various Congressional committees on a confidential basis on Monday morning, May 14. According to telegram 6079 to Paris, May 14, the Department intended to keep publicity at a minimum, especially overseas, to release its statement publicly only if necessary, and to publish the details of List I only as a last resort. (460.509/5–1451)