Foreign Relations of the United States, 1952–1954, China and Japan, Volume XIV, Part 1

450.939/9–854: Telegram

No. 287
The Secretary of State to the Department of State¹

secret

Manila, September 8, 1954—11 p.m.

Secto 24. In instructions, Caccia² talked with MacArthur re China trade saying Attlee Peking trip would result in strong pressure not only from Labor Party but from some conservatives to relax restrictions on trade with China. Reason would be embargo was imposed because of Korean war which is now ended and also that there is no reason for having separate embargo acts for Soviet satellite bloc on one and China on other.

Caccia said government would take position question is under study. He said COCOM last July decided to consider question of relaxing trade with China “later”.³ Caccia inquired whether it would not come up in December COCOM meeting.⁴ He inquired whether US would oppose modifications if Chinese Communists did not resort to further aggression. He did not ask for reply to above questions but said it was important that UK discuss this matter with us before Parliament reconvenes in October and to this end Makins will receive instructions.

Dulles

1. Repeated for information to London.
2. Sir Harold Caccia, British Deputy Under Secretary of State for Foreign Affairs.
3. Reference is to a meeting in July of the Consultative Group, which resulted in a relaxation of multilateral controls on trade with the Eastern European Soviet bloc; see Polto 132, July 22, vol. i, Part 2, p. 1230.
4. Reference is to a prospective meeting of the Consultative Group.