Foreign Relations of the United States, 1955–1957, Foreign Aid and Economic Defense Policy, Volume X

102. Circular Telegram From the Department of State to Certain Diplomatic Missions¹

Washington, March 9, 1956—8:25 p.m.

626. Excon. Circulars 539² and 548.³ Department aware differing interpretations voiced abroad of conclusions Eden–Eisenhower talks. Department particularly concerned lest erroneous impression spread that US policy toward trade controls has changed.

While US has agreed to review China embargo list to determine what adjustments can be made which would be beneficial to Free World and without balance advantage to Chinese Communists, this agreement does not reflect any change in basic US policy for maintenance strong system of controls including differential toward Communist China.

US appreciates fact that uncertainty or confusion concerning national trade control policies of member governments may have resulted during recent months in lessening the vigor of COCOM/CHINCOM operations and in reducing the degree of international cooperation previously exhibited in that forum. US continues to feel strongly that there is sound strategic and political basis for maintenance of security trade controls applicable to Soviet bloc (including a substantial differential toward Communist China) and that these controls can be administered effectively only by strong multilateral organization such as CG/COCOM/CHINCOM structure. US would hope that some revitalization and strengthening of this organization can be achieved as result China trade control review.

Above may be used as background should occasion arise for further discussion US policy trade control matters.

Hoover

1. Source: Department of State, Central Files, 460.509/3–956. Confidential. Drafted by Goodkind and Jerry Knoll of ECD. Sent to Bonn, Brussels, Copenhagen, The Hague, Lisbon, London, Ottawa, Paris (including USRO/ST), Rome, and Tokyo. Also pouched to Ankara, Athens, Bern, Geneva (for Johnson), Hong Kong, Luxembourg, Oslo, Stockholm, and Vienna.
2. This circular telegram of February 9, sent to the diplomatic posts in each of the Participating Countries other than the United Kingdom, concerned the Eisenhower–Eden talks on trade controls. It provided the Embassies with information about those discussions for transmittal to the respective PC’s, in order “to dispel any impression that a change in the principle of preserving a substantial and effective China differential will be made as result of talks, and at same time [to] let Participating Country governments know U.S. willing assess limited special needs individual countries for some CHINCOM flexibility.” (Ibid., 611.41/2–956)
3. This circular telegram of February 10, sent to Paris and repeated to 18 diplomatic missions, authorized the U.S. Delegation to COCOM to notify the COCOM chairman and all interested delegations of the substance of circular 539. (Ibid., 611.41/1–2056)