74. Telegram From the Delegation at the Foreign Ministers Meetings to the Department of State 1

Secto 99. Subject: China Trade Controls. At tripartite meeting this morning, Secretary emphasized importance in our negotiations with Chinese Communists of link between renunciation of force and trade embargo. Some hopeful progress being made re renunciation force and we are therefore most anxious maintain trade controls as point of pressure to get really effective declaration on renunciation of use of force which would serve all our interests in Far East.

Macmillan reviewed telegrams from O’Neill of which Department aware re October 28 talk with Chou En-lai. I went on to emphasize that UK feels strongly differential between CHINCOM and COCOM controls should be eliminated. This should be done through CHINCOM rather than UN mechanism. One great difficulty with CHINCOM is extent to which exceptions procedures utilized by UK’s competitors. In view UK’s dependence on foreign markets this creates situation which is becoming impossible to restrain because of public opinion. Unless CHINCOM list reduced COCOM level, there is great danger China controls breaking down completely. Pinay agreed in general with Macmillan’s remarks, but said he had not had time fully study problem.

Secretary indicated he understood problem but was most anxious maintain present level controls for time being for bargaining purposes with Chinese Communists.

Foreign Ministers agreed discuss matter further after Pinay has opportunity further familiarize himself with subject.

  1. Source: Department of State, Central Files, 3961–GE/10–3155. Secret; Limit Distribution. Repeated to London and Paris.