103. Memorandum From the Assistant Secretary of State for Far Eastern Affairs (Robertson) to the Secretary of State1
SUBJECT
- Increasing Opposition by CG Countries to U.S. Position on CHINCOM Trade Controls
This is to report that opposition by a number of the countries in the Consultative Group to the U.S. stand on maintaining high-level China trade controls has reached alarming proportions. Communications from London and Paris confirm that the British and French will lead the drive in the CG to reduce CHINCOM controls to the COCOM level. Both governments have recently given repeated [Page 323] evidence of their irritation because of our “delay” in fixing a date for the CG meeting.
Despite earlier hopes that the Mollet government would take a more moderate stand, the French have now indicated they are determined to equalize CHINCOM–COCOM controls at the lower level. French intransigence is further indicated by 1) the decision to ship a minimum of 14,300 tons of iron, steel and tin plates to Communist China and possibly 6,000 tons more; 2) possibly shipping $8 or $9 million of other China embargo goods; 3) shipping trucks to North Vietnam; and 4) considering the placement of a trade representative in Peiping and allowing a Chinese Communist trade representative in Paris.
Since February the British Embassy has asked at least four times for U.S. action on discussing the CHINCOM issue and setting a date for the CG meeting. On March 27, the U.K. delegate in CHINCOM delivered a particularly bitter rebuttal to U.S. objections to shipment of certain British laboratory chemicals to China stating that the China controls were devised to meet the temporary condition of a local hot war and were not intended as long-term measures to inhibit China’s industrial and scientific advance. The Danish, Japanese, French and German delegations promptly agreed that the present CHINCOM controls exceed their original objective. The Danish delegate plead for a prompt discussion of China control policy in the CG.2 On March 23 the British Government agreed to export 100 agricultural tractors to Communist China, having pared down an original request for the export of 1,700 tractors, and cited this as an example of heavy pressure in Parliament, press and commercial circles for relaxation of controls.
The latest available information indicates that the Netherlands and Portugal would also favor reduction of CHINCOM controls to the COCOM level and that Belgium, Canada, Italy and Norway favor reduction although not necessarily to the COCOM level. Of the 15 participating countries in the CG, it seems that only Greece and Turkey will likely provide strong support for the U.S. position favoring maintenance of a significant China differential (unless we can satisfy the Japanese with moderate concessions) but unfortunately these two nations have a comparatively small voice in CHINCOM/CG affairs.
- Source: Department of State, Central Files, 493.009/3–3056. Secret. Drafted by Robert W. Tucker of CA and Charles L. Hodge, Officer in Charge of Economic Affairs in CA; cleared by Howard Jones.↩
- A summary of the CHINCOM meeting of March 27 was transmitted to the Department in Polto 1698 from Paris, March 27. (Ibid., 493.419/3–2756)↩