S/S Files: Lot 63 D 351: NSC 48 Series

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

top secret

United States Objectives, Policies and Courses of Action in Asia

References:

A.
NSC 48/51
B.
Memo for NSC from Acting Executive Secretary, subject, “United States Courses of Action in Korea”, dated September 5, 19512
C.
Memo for NSC from Executive Secretary, same subject, dated September 11, 19513

The enclosed memorandum by the Secretaries of State and Defense and its attached Progress Report with respect to NSC 48/5 on the subject, prepared jointly pursuant to the direction of the President and in accordance with the understanding of the State and Defense Departments stated in the enclosure to the reference memorandum of September 11, is transmitted herewith for the information of the National Security Council and is being scheduled on the agenda of the Council meeting on September 26, 1951.

[Page 2024]

Attention is invited to the fact that the enclosed Progress Report provides background for Council consideration at its meeting on September 26, of the course of action recommended by the Joint Chiefs of Staff and submitted by the Secretary of Defense in the enclosure to the reference memorandum of September 5, 1951.4

James S. Lay, Jr.
[Enclosure]

Memorandum by the Secretaries of State and Defense to the Executive Secretary of the National Security Council (Lay)

top secret

Subject: First Quarterly Progress Report on NSC 48/5—“United States Objectives, Policies and Courses of Action in Asia”

Ref:

  • NSC 48/5 and note by the Executive Secretary to the National Security Council, 17 May 1951
  • Joint State-Defense Memorandum of 5 September 1951 to the Executive Secretary, National Security Council on “Responsibilities of the State and Defense Departments for Coordinating the Implementation of NSC 48/5”*

In accordance with the President’s directive on the implementation of NSC 48/5 and the above-referenced memorandum, there is submitted herewith the first quarterly progress report on NSC 48/5. It is requested that this be circulated to the Council members for information.

Dean G. Acheson

Robert A. Lovett

[Attachment—Extract]5

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

Effect of Economic Restrictions Against Communist China: (Paragraph 8e)6

On May 18, 1951, the General Assembly of the United Nations [Page 2025] adopted a Resolution recommending that every State embargo shipments to North Korea and Communist China of arms, ammunition, and implements of war, atomic energy materials, petroleum, transportation materials of strategic value, and items useful in the production of arms, ammunition, and implements of war. This Resolution also recommended that every State prevent the circumvention of controls applied by other States under this Resolution. The action which this Resolution envisaged each State would take unilaterally, represented a long step toward such complete control, although such action would be narrower than the position adopted by the United States in December 1950 when this Government terminated virtually all economic relations with Communist China.

A majority of the members of the United Nations have reported compliance with this Resolution in one form or another, as have several non-member countries. In addition, largely subsequent to the adoption of the Resolution, many States recently have taken measures going beyond the generally understood scope of the Resolution. For example, Danish ship owners have agreed not to charter vessels for China trade. Greece has placed in force a law prohibiting the chartering of Greek vessels for transporting items embargoed under the Resolution. Honduras prohibits all vessels flying its flag from calling at Communist Chinese ports and from transporting materials which might serve the Communist Chinese war effort. Italy prohibits its public vessels (85% to 90% of its total shipping) from loading strategic materials destined for Communist China. Liberia prohibits vessels under its flag, except on written approval, from carrying any goods embargoed under the Resolution to any place in the Soviet Bloc, including China. The Norwegian Government has reported steps to prevent Norwegian vessels from transporting such embargoed goods to Communist China. The Republic of Panama, by Decree dated August 18, 1951, prohibits any vessels flying the Panamanian flag from calling at Communist China ports, and Panamanian shipping to Communist China has diminished greatly during the past month.

There are indications of a falling off in the total water-borne carriage of Free World shipping of goods to Communist China. However, United States authorities are aware of possible loopholes permitted by transfer of registry and continuing trade by other flag vessels, and studies are going forward on an urgent basis looking to appropriate multilateral action within and outside the United Nations to further tighten controls over shipping by friendly nations. Increased activity by satellite shipping lines, particularly Polish, complicates the problem of total supply.

There continues to be a substantial volume of goods shipped into China. This trade still includes a certain amount of strategic commodities, [Page 2026] but very little consists of direct war materials. Increased smuggling has followed the imposition of more rigid controls in Hong Kong in June, including reported smuggling activities from the US-controlled Ryukyus. The United States continues day-by-day efforts to observe and bring to the attention of responsible authorities infractions of their regulations by smugglers and others who attempt to evade controls applying to trade with Communist China.

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

  1. For text, see vol. vi, Part 1, p. 33. See also p. 439.
  2. The September 5 memorandum transmitted the memorandum by Secretary Marshall to Mr. Lay, September 4, p. 881.
  3. Not printed.
  4. NSC Action No. 561 indicated that at its 103d meeting, September 26, the Council took note of this progress report (S/S Files: Lot 62 D 1: NSC Actions).
  5. Memo for NSC from Executive Secretary, subject, “United States Objectives, Policies and Courses of Action in Asia,” dated September 11, 1951. [Footnote in the source text. Neither the memorandum of September 5 nor that of September 11 is printed.]
  6. For the complete text, see vol. vi, Part 1, p. 80.
  7. Reference is to paragraph 8e of NSC 48/5, May 17, 1951, which read as follows: “8. While continuing to recognize the National Government as the legal government of China, the United States, with respect to Communist China, should now: …

    e. Continue United States economic restrictions against China, continue to oppose seating Communist China in the UN, intensify efforts to persuade other nations to adopt similar positions, and foster the imposition of United Nations political and economic sanctions as related to developments in Korea.”