S/S Files: Lot 63 D 351: NSC 104

The Executive Secretary of the National Security Council ( Lay ) to the National Security Council

secret

NSC 104/2

U.S. Policies and Programs in the Economic Field Which May Affect the War Potential of the Soviet Bloc

References:

A.
NSC Action No. 443
B.
NSC 104 and NSC 104/1
C.
Memo for NSC from Executive Secretary, same subject, dated February 21, 1951
D.
Memo for NSC from Executive Secretary, subject, “Import Control Authority and Legislation” dated March 6, 1951
E.
NSC 91/1 and memos for NSC from Executive Secretary, subject, “East-West Trade” dated January 29 and February 19, 19511

The enclosed revision of the “Recommendations on Substantive Measures” (Part II–A) of NSC 104 on the subject, prepared pursuant to NSC Action No. 443 by the NSC Staff including members from the Departments of the Interior, Agriculture and Commerce, the Economic [Page 1945] Cooperation Administration and the Bureau of the Budget, is transmitted herewith for consideration by the National Security Council.

Paragraphs 2, 3, 4, 5 and 6 in the enclosure are intended to supersede the current policy on export controls contained in NSC 104/1.

It is recommended that, if the enclosed report is adopted, it be submitted to the President for consideration with the recommendation that he approve it and direct its implementation by all appropriate departments and agencies of the U.S. Government under the coordination of the Secretary of State, pending action by the President on the “Recommendations as to Organization” contained in Part II–B of NSC 104 in the light of the study thereof currently being made by the Director, Bureau of the Budget.

James S. Lay, Jr.
[Enclosure—Extract]2

Draft Statement of Policy Proposed by the National Security Council on U.S. Policies and Programs in the Economic Field Which May Affect the War Potential of the Soviet Bloc 3

Export Controls

1. The United States should, pending further developments, continue to prohibit all exports to Communist China, Manchuria and North Korea.

. . . . . . . . . . . . . .

9. The United States, in view of the Chinese Communist aggression in Korea, should press for the application of such international control measures as will be effective in diminishing the Chinese Communist potential for military aggression. Its effort through the United Nations and other channels should be directed to seeking, on a cooperative basis, the application by the maximum number of friendly countries [Page 1946] of such controls for this purpose as the United States considers would be in the common security interest.

. . . . . . . . . . . . . .

  1. With respect to NSC Action No. 443, see footnote 8, p. 1879. Extracts from NSC 104, February 12, are printed on p. 1902. The remaining references here deal with broader East-West trade issues; for documentation, see vol. i, pp. 993 ff.
  2. Extracted here are only those portions of the document relating to China and North Korea. For the complete text, see vol. i, p. 1059.
  3. NSC Action No. 457, taken by the National Security Council at its 88th meeting, April 11, 1951, recorded adoption by the NSC of this document. The Secretaries of the Interior, Agriculture, and Commerce, the Acting Economic Cooperation Administrator, and the Director of the Bureau of the Budget participated in the above action with the Council, the Secretary of the Treasury and the Director of Defense Mobilization. (S/S Files: Lot 62 D 1: NSC Actions) The President approved NSC 104/2 on April 12 and directed that it be implemented “by all appropriate departments and agencies of the U.S. Government under the coordination of the Secretary of State, pending action by the President on the ‘Recommendations as to Organization’ contained in Part II–B of NSC 104 in the light of the staff study thereof currently being made by the Director, Bureau of the Budget.” (Memorandum by the Executive Secretary of the NSC, April 12, 1951, not printed; S/S Files: Lot 63 D 351: NSC 104 Series)