Office of the Historian

460.509/3–554

Memorandum of Conversation, by the Officer in Charge of United Kingdom and Ireland Affairs (Beale)

secret
Washington, March 5, 1954.
  • Subject:
  • British Policy on East-West Trade
  • Participants:
  • Mr. Dennis Rickett, Economic Minister, British Embassy
  • Mr. Samuel C. Waugh, Assistant Secretary for Economic Affairs
  • Mr. Thorsten V. Kalijarvi, Deputy Assistant Secretary for Economic Affairs
  • Mr. J. A. McCall-Judson, First Secretary, British Embassy
  • Mr. John H. Stambaugh, Assistant to the Director, FOA
  • Mr. Beale, Officer in Charge, U.K. and Ireland Affairs

(The first part of the meeting was devoted to discussion of U.S. policy on a Tin Agreement. A separate memorandum of conversation has been prepared by Mr. Nichols, OMP.1)

Mr. Rickett referred to the recent remarks of the Prime Minister concerning the desirability of increased East-West trade.2 He said that a memorandum enlarging upon the Prime Minister’s statement of policy had been submitted to Linc Gordon at our Embassy in London.3 He explained that the British Government had taken a fresh look at the control of exports in light of the long haul. He said that the new policy was that there should be no relaxation of restrictions on exports of atomic energy materials and military goods but that List I should be reduced by one-half and List II should be suppressed. He said that the basic question was one of the area of goods deemed to be directly of strategic importance. He indicated that if lists could be agreed between the U.S. and U.K. the U.K. would be prepared to institute transaction controls.

Mr. Rickett said that in the discussions with Mr. Gordon certain suggestions regarding procedure had been made. It was their [Page 1087] thought that, first, there would be bilateral discussions with the United States; second, they would hope to talk with the French as soon as possible; third, they would propose to make a general statement in COCOM; and fourth, they would ask the Chairman of the CG to summon a meeting. He emphasized that the first step involved discussions with the United States.

Mr. Waugh said that his offhand reaction was that it would be unwise to release any lists until there had been consultation between the U.S. and U.K., and that the subject would have to be reviewed within the United States Government. Mr. Rickett said that there was no intention on their part to release the lists to the CG, and release to the French would be subject to discussion first with the United States. Mr. Kalijarvi said that the United States’ answer would have to be deliberate and considered. He said that the reaction to Sir Winston’s statement on this side had been mixed. He pointed out that there were those who believed there should be no relaxation in East-West trade controls and others who felt that the Prime Minister’s statement had been a breath of fresh air. Mr. Kalijarvi said that the problem would have to be considered at the highest levels in the U.S. Government.

Mr. Rickett asked whether Mr. Kalijarvi agreed that the bilateral discussion should be held right away. Mr. Kalijarvi replied that it seemed perfectly reasonable to him. Mr. Rickett suggested that a group should be sent to London as was done in December [November?]. He mentioned that Governor Stassen had talked with Mr. Maudling (British Treasury) in December4 and had said at that time that he would be glad to discuss in London the subject of East-West trade at any future time. Mr. Rickett said that the British Government would welcome discussions with Mr. Stassen. He said that it was their hope that talks could take place possibly next week so that if possible the meeting of the CG could be held within a month.

Mr. Judson said that the French held a special position in the matter and could not be excluded from discussions, and it was therefore hoped that the same procedure would be followed as in December.

It was agreed that Mr. Kalijarvi would be in touch with Mr. Rickett.

  1. No memorandum of the discussion under reference has been found in Department of State files; presumably it is the one foreseen in circular telegram 314, supra.↩
  2. Regarding Churchill’s remarks, see footnote 2, p. 1081.↩
  3. This is presumably a reference to the memorandum of Mar. 1 which was summarized in telegram 3741 from London, Mar. 1, p. 1082.↩
  4. For an account of the conversation under reference, see Polto 1045 from Paris, Dec. 16, 1953, p. 1067.↩