167. Memorandum of a Conversation, Department of State, Washington, May 20, 19571
SUBJECT
- China Trade Controls
PARTICIPANTS
- Sir Harold Caccia, British Ambassador
- Mr. G. Thorold, Economic Minister, British Embassy
- Mr. C. D. Dillon, Deputy Under Secretary
- Mr. C. S. Whitehouse, W
Sir Harold Caccia and Mr. Thorold called on Mr. Dillon at his request this afternoon to discuss the question of China trade controls. Mr. Dillon stated that high level messages had been sent to London on this subject. The Ambassador replied that he had received copies of these messages. Mr. Dillon went on to review the background of the China Controls Negotiations and stressed the concessions already made by the United States delegation. He emphasized the importance of reaching an agreement which, while permitting increased trade in items of minor strategic importance, would nonetheless maintain more than a token differential.
Mr. Dillon drew the Ambassador’s attention to provisions in the Battle Act which required economic and military aid to be with-drawn [Page 460] from countries which were not “effectively cooperating” in East-West trade controls. He emphasized that the Department was in no way threatening the UK with this possibility but that he felt that it was important that the British Government be aware of this statute, adding that the President had no discretion on Title II items. He made it clear that we felt it most important that no statements be made which might result in the UK being accused of not “effectively cooperating” at this time. Mr. Dillon recalled the case of Ceylonese rubber in which a shipment to China of this strategic commodity had been condoned owing to the special circumstances which applied at the time.
[Here follows discussion of unrelated subjects.]
- Source: Department of State, Central Files, 493.009/5–2057. Secret. Drafted by Whitehouse.↩