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

185. Memorandum From the Chairman of the Council on Foreign Economic Policy (Randall) to the Chairman of the Economic Defense Advisory Committee (DeLany)¹

Washington, June 25, 1957.

SUBJECT

• United States Economic Defense Policy

1. The National Security Council has requested the Council on Foreign Economic Policy to review our economic defense policy (NSC 5704/1).

2. A CFEP Committee under the Chairmanship of the Under Secretary of Commerce has been requested to review all aspects of our economic defense policy as it relates to United States unilateral controls on trade with Communist China, including the economic, military, political and psychological questions involved.²

3. It is desired that the Economic Defense Advisory Committee review the remaining parts of our economic defense policy and submit recommendations to me with respect thereto by August 15, 1957.

4. In connection with this assignment to EDAC your attention is invited to the enclosed memorandum from the Deputy Secretary of Defense on “Future Course of Action with Respect to COCOM/CHINCOM”³ and the attached memorandum to the Secretary of Defense from the Joint Chiefs of Staff on the same subject recommending a review of U.S. economic defense policy.⁴

5. In addition to my request to review our economic defense policy as outlined in paragraph 2 above, I would like EDAC to submit specific recommendations to me concerning the questions posed in paragraphs 3B–1, 2, 3 and 4 of the attached memorandum from the Joint Chiefs of Staff.

Clarence B. Randall
Special Assistant to the President

1. Source: Department of State, Economic Defense Files: Lot 64 D 234, Policy Review Papers—NSC 5704/1. Secret.
2. In a memorandum to the CFEP, dated June 20, Randall stated that in view of the decision by the United Kingdom and other CHINCOM countries to relax their controls over trade with Communist China, all aspects of U.S. policy on trade with China should be reexamined. Accordingly, he proposed appointing a CFEP committee chaired by Under Secretary of Commerce Walter Williams and including representatives of the Departments of State, the Treasury, Agriculture, Defense, and the International Cooperation Administration.
3. See footnote 5, Document 183.
4. Document 183.