51. Telegram From the Department of State to the Embassy in the United Kingdom 1

4327. Excon. Embassy should transmit following note to FonOff as reply their note delivered January 31:2

US regrets communications between DullesEden, StassenThorneycroft have not resulted in resolution of outstanding differences. Agree with UK further bilateral discussions on issues other than rolling mills and copper trade data not repeat not profitable and remaining problems should now be resolved in COCOM. Our specific views are:

Generators. Preliminary decisions on this problem have already been reached multilaterally in Paris. Assuming the four-year quota of $40,000,000 is based upon definition of generator sets which includes (1) prime movers shipped as parts of generator sets and (2) motor generator sets, US willing accept this compromise.
Copper. US will press for upgrading copper wire (in addition to items already jointly agreed for embargo) since frustration embargo item 1650 through this loophole becomes daily more evident and alarming.
Shipping. Other PC’s presumably still desire plan for shipping controls as formulated September CG meeting. US continues [Page 224] support that proposal in form referred to governments. Any modifications discussed bilaterally since September presumably cancelled …. If other countries desire US of course willing participate COCOM attempt formulate alternative proposal which will achieve workable controls scheme for this highly important field. If COCOM unable formulate alternative plan US will strongly urge maintenance status quo. Hopes UK will not offer new proposal outlined in note since in US view this would weaken further already unsatisfactory control level.
Rolling Mills. Will communicate views in few days as to how Defense talks might be conducted. Agree with UK neither side bound by conclusions reached during talks but assume both sides will refrain from raising issue in COCOM until talks have been completed and opportunity taken assess respective positions in light of any agreed findings.3

  1. Source: Department of State, Central Files, 460.509/2–2355. Secret. Drafted by Buckle and Goodkind. Repeated to Paris.
  2. The British note of January 31 has not been found in Department of State files; it was summarized, however, in telegram 3951 to London, February 1. (Ibid., 460.509/1–2755)
  3. In telegram 3751 from London, February 25, the Embassy reported that it delivered the proposed note to the British Foreign Office on February 24, except for the section on generators. (Ibid., 460.419/2–2555) The text of the note was transmitted to the Department in despatch 2467 from London, February 25. (Ibid.)

    The British reply of February 24 is not printed. (Ibid., 460.509/3–255)