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

460.509/6–1251: Circular telegram

The Secretary of State to Certain Diplomatic Offices ¹

secret
priority

Washington, June 12, 1951—2 p. m.

788. 1. Within next few days Dept intends call in reps Eur countries affected by Kem Amendment and to transmit officially to them:

a. copy of amendment²

b. copy of President’s statement²

c. copy of ECA press release put out at time of certification to ECA of lists by Secy of Defense³

2. We wld inform them that Secy Defense list is composite of AEC list, Proclaimed list, Stockpile list, Positive list and Supplemental list of Dept of Commerce (i.e. I–C list); that list is now being printed and that copies will be forwarded when available.

3. We will ask them whether it is possible for them now to certify in accordance with amendment that listed goods are not being shipped Bloc.

4. If, as we anticipate, most reps indicate inability certify, we will request info on extent present controls. Since lists will not be available these prelim statements, on both sides, will obviously be of gen character. We will undoubtedly require more detailed info later on present and anticipated controls, nature and extent of trade, etc. This info will probably be requested through our missions in countries concerned.

5. FYI if in course of discussion it appears appropriate, we will indicate that after further review of lists and country replies to para 4, we will wish have further discussions with them on extending embargo to specific items of particular importance. We will indicate that Secy of Defense in certifying lists to the ECA stated that the goods listed were of varying strategic importance and that there was interdepartmental agreement on those of greatest importance. We will indicate that we are therefore most interested in obtaining coop in embargo on items which we believe to be of primary strategic importance and better controls than at present on other important goods.

6. We will indicate to reps of COCOM countries that we anticipate using that forum for multilateral discussion.

7. We will inform reps that because of pressure of time we anticipate a gen interim exemption will have to be made before June 18 and that it is not our intent to take action to terminate aid until we have had opportunity to review situation of each country with respect to SovBloc, and to discuss further either bilaterally or multilaterally in COCOM additional measures of trade control which we believe to be in common security interest. In light of factors affecting degree of controls which seem desirable and extent coop of country concerned, NSC will then have to weigh advantages and disadvantages of terminating aid.

8. We will tele separately proposals for further negot on tripartite and COCOM basis.

9. Eur countries believed affected by Kem amendment are COCOM countries, Yugo, Spain, Ireland, Iceland, and Austria. Switz is not covered by Amendment unless it is determined that mere participation in EPU is equivalent to receiving aid, an interpretation which we do not believe justified. Swedish situation unclear and still under review. Pending clarification we will not discuss certification.

Acheson

1. Drafted by Camp and cleared with Leddy, BNA, and WE; sent to London, Ottawa, The Hague, Brussels, Rome, Lisbon, Copenhagen, Oslo, Frankfurt, Bern, Stockholm, Belgrade, Madrid, Dublin, Vienna, Reykjavik, and Paris for Embassy and Excon.
2. See the editorial note, p. 1073.
2. See the editorial note, p. 1073.
3. For a summary of the ECA press release, see the Department of State Wireless Bulletin, June 7, 1951, p. 9.