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

71. Minutes of the 28th Meeting of the Council on Foreign Economic Policy, Executive Office Building, Washington, October 11, 1955, 4 p.m.¹

Washington, October 11, 1955, 4 p.m.

ATTENDANCE

• Messrs. Kalijarvi, R. Barnett, Radius, Nichols, Morse, Butz, Paarlberg, Burgess, McClellan, Smith, Fitzgerald, DeLany, Charrette, Hale, Brundage, Hutchinson, Anderson, Johnson, Amory, Guthe, Davis, Rockefeller, May, Thorp, Cooley, Rock, McCaskill, Galbreath, Rand, McGlauflin, Hauge, Cullen

(Dr. Hauge presided in the absence of the Chairman.)

Draft Minutes of the 27th Meeting, Tuesday, August 30, 1955 were approved as corrected.

AGENDA SUBJECTS

CFEP 501. East-West Trade.

1. The Acting Chairman reviewed the position paper (Tab B, CFEP 501/7)² submitted by the Steering Committee on Economic Defense Policy pursuant to the request of the Council to prepare position papers on East-West Trade for the use of the U.S. Delegation to the Four Powers Foreign Ministers’ Meeting scheduled for October 27, 1955.

2. The Council approved the position paper (Tab B, CFEP 501/7) submitted by the Steering Committee with the following exceptions:

a. Par. III A 1—It was agreed that the Steering Committee should redraft the language of this paragraph toning down that part which states that the U.S. “actively favors” the conduct of peaceful trade and various promotional activities with the Soviet bloc. The Chairman CFEP was authorized to approve the redraft. It was agreed that the matter of timing of the statements should be left to the discretion of the Secretary of State.

b. Par. III B 2—While it was agreed by the Council that the United States negotiators should be authorized to pledge the Executive Branch to seek from Congress amendment to P.L. 480 to permit barter of government agricultural surpluses with the Soviet bloc if statutory amendment is necessary, there was basic disagreement among the members that the pledge should be extended to sales for local currencies.

The position paper, therefore, will delete reference to pledging the Executive Branch to ask Congress to amend P.L. 480 to permit sales for local currencies.

3. Use of the negotiating authority in paragraph III B 1 of the position paper is dependent on a favorable ruling by the Attorney General that barter of government agricultural surpluses is permissible under present laws.

4. It was agreed that the revised position paper as approved by the Chairman CFEP and the background guidance paper (Tab C, CFEP 501/7) would be transmitted by the Chairman CFEP to the Secretary of State. The letter of transmittal forwarding the position paper will note the disagreement of the Council on pledging the Executive Branch to ask Congress to permit sales for local currencies.³

[Here follows discussion of CFEP 530, “U.S. Participation in the International Wheat Agreement.”]

1. Source: Eisenhower Library, CFEP Records. Confidential. No drafting information is given on the source text.
2. Document 69.
3. Acting CFEP Chairman Hauge forwarded the revised position paper to Secretary Dulles under cover of a memorandum dated October 17. (Eisenhower Library, CFEP Records)