180. Memorandum of a Conversation, Department of State, Washington, June 6, 19571
SUBJECT
- China Trade Controls
PARTICIPANTS
- Mr. Hervé Alphand, Ambassador of France
- Mr. Douglas Dillon, Deputy Under Secretary
- Mr. Edwin G. Moline, Office of European Regional Affairs
- Mr. Robert B. Wright, Economic Defense Division
Ambassador Alphand referred to the fact that he sent Paris a recommendation in strongest terms that the French Government support the Compromise Plan A in the CHINCOM discussions of China trade controls. He had based his recommendation in large part upon the fact that failure by France to reach a compromise settlement with the United States would have grave repercussions within the United States. He said that contrary to his prediction, the Congressional reaction to the outcome of the CHINCOM negotiations had been mild and the President’s comments on the subject were likewise temperate and conciliatory. He said that under these circumstances some question might be raised as to the accuracy of his judgment.
Mr. Dillon said that the President’s remarks appeared to reflect his philosophy with respect to trade with the Soviet bloc and were not at variance with comments which he has made publicly on previous occasions. For instance, he has commented previously on the problem posed for Japan by continued restrictions on Japanese trade with Communist China. Mr. Dillon said that apart from the general philosophy of the President’s comments, he knew that the President had attached great importance to reaching an agreement if at all possible on a continued differential trade control towards Communist China. Since such an agreement had not been concluded, the President naturally attaches importance to maintaining a united front on the part of the cooperating countries, and presumably made his comments in an effort to minimize any adverse reaction in this country and to emphasize the continued unity on controls towards the Sino-Soviet bloc as a whole.
Ambassador Alphand said that his recommendation had been turned down by the French Government, and that although he was not fully informed on latest developments, he believed that the [Page 477] French would have little choice but to follow the British lead. Mr. Dillon said that of course this was a decision that each government would have to make for itself and that we realized as a practical matter the difficulty which individual governments would face in attempting to deny exports to Communist China which were being permitted by the United Kingdom.
Mr. Dillon referred to a proposal which had been informally advanced by an officer in the French Foreign Office to a member of the United States Embassy in Paris to the effect that the French were considering submitting to COCOM a proposal for (1) annual review of the COCOM list and (2) an agreement that the control system would remain in force only for a year at a time on the understanding that the controls would lapse if unanimity were broken by the decision of a participating country to denounce the agreement. (Embassy Paris Telegram No. 6227 of June 5, 19572) Mr. Dillon said that there might be no particular problem with the first French proposal but that the second proposal would raise some serious problems. He urged that the French plan to discuss the details bilaterally with us and with other interested governments before putting any such sweeping proposals into the China Committee.
Ambassador Alphand dealt with several other matters not related to China trade controls and reported separately.