706. Telegram 248 to Geneva1

[Facsimile Page 1]

248. For Johnson.

Guidance for September 7 meeting.

1. Trade Controls. You should decline discuss Wang’s draft agreed announcement on trade (your 168), or discuss either CHINCOM multilateral trade control system or U.S. unilateral total embargo on trade with Communist China. Base your refusal to discuss on following grounds: (a) persistent Chinese Communist refusal to renounce force and continued threat use force which makes it unthinkable on national security basis for U.S. to contribute through trade to Communist China industrial and economic build up; and (b) Chinese Communist breach of Agreed Announcement of September 10 which casts serious doubt on Chinese Communist good faith in implementation of any commitment Chinese Communist representatives may enter into. In making this point you should continue leave open question of our attitude in event prisoners are released and Chinese Communists agree to pending renunciation of force declaration. We do not wish indicate whether we [Typeset Page 1163] would or would not lower our economic guard as a result of Chinese Communist assent to renunciation of force principle. Although you will continue use all your resources keep talks going, you should not be deterred from explicitly refusing discuss trade by any fear [Facsimile Page 2] Wang may use it as a pretext for breaking off or recessing talks. Even if Chinese Communists have made firm decision suspend talks unless we make concessions on trade, we do not intend to yield to pressure on trade issue.

We do not see that you are impaled on horns of any dilemma in taking this position. So long as Chinese Communists have not given us satisfaction on renunciation of force and implementation Agreed Announcement, propaganda position Chinese Communists in resort to public press, would be vulnerable. We consider our public position strong and are prepared defend it positively if Chinese Communists again resort to publicity. Foregoing not intended prevent you from offering to listen anything further Wang may want to offer on trade question, so long as you do not participate in trade discussion with him.

2. Renunciation of Force. If it seems necessary in order provide material for discussion you may inform Wang we are exploring possibility of formulating new revision his Dec. 1 draft. We hope be able inform him at next meeting results our study. FYI, we believe our April 16 revision of Wang’s draft probably best that can be done. END FYI

3. Return of Nationals. Seize occasion of approaching first anniversary issuance Agreed Announcement to reiterate our protest at continued imprisonment 10 American citizens in violation long standing Chinese Communist commitment and obligation to release them expeditiously. You should take Wang to task with more than ordinary vigor in view lapse of full year.

4. Give Wang text our press release of August 31 characterizing Aug. 23 attack on Navy patrol plane in East China Sea as unjustified. Tell Wang this tragic occurrence demonstrates anew need for genuine Chinese Communist renunciation of force. So long as present posture Chinese Communist regime [Facsimile Page 3] continues, danger of attacks such as this ever present. State our conviction present Chinese Communist attitude of hostility makes impossible attainment of stable and secure situation in Far East.

FYI Your talks should not become forum for discussion merits this case. It is to be used as illustration of need for renunciation of force and as demonstration of dangers of unjustifiable destruction of life and property resulting from trigger-happy attitude on Communist side. Parenthetically, markings on all US planes including this Navy Mercator, of course entirely different from markings on GRC planes and clearly distinguishable therefrom. END FYI

Dulles
  1. Source: Department of State, Central Files, 611.93/9–556. Secret; Priority; Limit Distribution. Drafted by McConaughy and Clough; cleared by Dulles in draft and by Sebald.