76. Editorial Note
At the 282d meeting of the National Security Council, April 26, the Council discussed the question of multilateral export controls on trade with the People’s Republic of China. Some of the discussion was devoted to trade between the People’s Republic of China and Japan: [Page 175]
“Mr. Dodge expressed the feeling that the long list of exceptions showed indication of the impending disintegration of the multilateral controls system, particularly as it related to controls on trade with Communist China. In response to this statement, the President expressed great sympathy for the plight of Japan, which he felt was either obliged to trade with Communist China or ‘pass a tin cup around in San Francisco.’ Mr. Dodge discussed this matter briefly, and expressed the opinion that the removal of controls on trade between Japan and Communist China would by no means provide a complete answer to Japan’s trade and economic problems. The President expressed agreement to the extent of stating that Japan’s problems had to be settled in bites, and not all at once.
“Secretary Wilson felt that there were two points which needed emphasis on trade between Japan and China. China had obvious need of certain manufactured articles produced in Japan. Japan in turn needed certain raw materials from China. Perhaps the two countries could get together and work it out; but from a psychological point of view, as long as the Japanese feel that the United States has them under wraps, they won’t like it. Perhaps the best thing was for us to allow the Japanese to make the effort to increase their trade with Communist China and see for themselves that this was not the real answer to all their problems.” (Memorandum of discussion by Gleason, April 27; Eisenhower Library, Whitman File, NSC Records)