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

156. Memorandum of Conversations, Department of State, Washington, April 17, 1957¹

Washington, April 17, 1957

SUBJECT

• U.S. Proposal on China Trade Controls

PARTICIPANTS

• (In separate appointments with each Embassy representative)
• Mr. R. G. C. Smith, Commercial Minister, Embassy of Canada
• Mr. Egidio Ortona, Minister, Embassy of Italy
• Mr. Giuseppe De Rege, Counselor, Embassy of Italy
• Mr. Pierre Landy, Counselor, Embassy of France
• Mr. Albert F. Ernecke, Commercial Counselor, Embassy of Germany
• Mr. Takeso Shimoda, Minister, Embassy of Japan
• Mr. Thorsten V. Kalijarvi, Assistant Secretary
• Mr. Robert B. Wright, Chief, Economic Defense Division

On April 17 Embassy representatives (in separate appointments) were each given an Aide-Mémoire outlining the U.S. proposal on China trade controls for discussion in CHINCOM on May 7. The text of the Aide-Mémoire is attached to CA–8615² of April 17, 1957.

In transmitting the U.S. proposal Mr. Kalijarvi made the following points:

(1) Early in January the United States outlined its views on the importance of maintaining the present special controls towards Communist China and tightening the overall COCOM/CHINCOM controls in light of the events in Hungary and the Near East.

(2) The United States has reviewed the question of the special China controls in the light of the responses by participating countries to the U.S. evaluation of January. We now have a proposal which takes account both of the security interests relating to trade controls towards Communist China and of the political and commercial pressures brought to bear on certain participating governments.

(3) The proposal has been discussed with the interested Congressional leaders and hence represents a proposition which the United States can advance with confidence to other countries.

(4) The United States considers that an agreed solution of the problem can be found if accommodations are made by each of the participating countries to the views of the others.

(5) With respect to the list of 50 items referred to in the proposal attached to the Aide-Mémoire, the United States has not fully completed the selection of items but expects to be in a position to transmit the list to the embassies early in the week of April 22.

(6) The United States is giving its proposal to the participating countries in advance of the May 7 meeting in the belief that advance knowledge may facilitate the CHINCOM discussion.

(7) A response to the United States proposal is not essential, although any comment which the respective embassies might have to make would be welcomed by the Department. The United States intention is to carry on substantive negotiations in the multilateral forum rather than through bilateral discussions. We would hope for the support of the respective governments on the U.S. proposal.

(8) The United States proposals are set forth as a package in the hope that an item-by-item review may be avoided.

(9) The United States should attempt to hold publicity with respect to the April 17th discussions to a minimum, but if pressed might find it necessary to acknowledge that conversations had been held with respect to the question of China trade controls. No reference would be made to the fact that the United States had made a proposal.

Each of the embassy representatives stated that the U.S. proposal would be promptly referred to their respective capitals for consideration.

Mr. Smith made inquiry as to U.S. intentions with respect to copper wire. Mr. Kalijarvi indicated that the United States has not ceased to press for embargo of this item and would expect to press further but not specifically as a part of the negotiations relating to the China trade controls.

Mr. Ortona said that he appreciated the desire of the United States for a package consideration of the China differential problem and of the U.S. proposal, but he felt it to be probable that the Italian Government would wish to urge the deletion of bearings from the CHINCOM embargo.

Mr. Landy inquired whether it was expected that the United States would revise its own controls on the pattern of its proposal to CHINCOM. Mr. Kalijarvi said that the U.S. position with respect to its own controls would remain unchanged and that our proposal represented an accommodation to our CHINCOM partners rather than a proposal for change in the U.S. controls. Mr. Landy also expressed interest in obtaining any information which might properly be made available to him with respect to the foreign trade of Communist China or the information underlying the United States selection of items for retention. He agreed with Mr. Kalijarvi’s statement that the potential trade of Communist China was vastly overrated by countries desiring to increase their trade with Communist China.

The Japanese had a number of questions of clarification. Mr. Kalijarvi confirmed for them the fact that a similar approach was being made to other participating countries, that reference to April 17th discussions to the press should be kept as general as possible, that we visualize negotiation in CHINCOM with the probability of an eventual CG meeting, that there had been no detailed discussion of China trade controls between the U.S. and the UK at Bermuda. Mr. Shimoda expressed interest in the nature of the consultation with the Congress and made comments indicating that he hoped the United States would not have a completely inflexible position with respect to the negotiability of the 50 items.³

1. Source: Department of State, Central Files, 493.009/4–1757. Confidential. Drafted by Wright.
2. Supra.
3. That same day, Willis Armstrong made similar presentations to Embassy representatives of the Netherlands, Denmark, Greece, Turkey, Portugal, and Norway. A memorandum of those conversations, drafted by Knoll, is in Department of State, Central Files, 493.009/4–1757. The Department reported these conversations to the Embassies in the Participating Countries in circular telegram 838, April 18. (Ibid., 493.009/4–1857)