Foreign Relations of the United States, 1958–1960, Foreign Economic Policy, Volume IV

320. Memorandum of Discussion at the 353d Meeting of the National Security Council⁰

January 30, 1958.

[Here follow a paragraph listing the participants at the meeting and agenda items 1–4.]

5. U.S. Economic Defense Policy (NSC 5704/3;¹ NSC Action No. 1780²)

Mr. Cutler said he understood that at the end of February or early in March the United Kingdom would propose extensive reductions in the COCOM controls. There were indications that the U. K. would propose (1) elimination of 43% of the items on List I, exclusive of AEC and munitions items; (2) establishment of a requirement for additional justification on 34 of the remaining List I items; (3) elimination of Lists II and III entirely. Mr. Cutler said he understood the U. K. believed it was no longer worthwhile through trade controls to attempt to slow down expansion of the Soviet industrial base. Mr. Cutler said the State Department had advised the Secretary of State of this development.

Secretary Herter said the U. K. proposals were likely to lead to very serious differences between the United States and the United Kingdom. He did not know to what extent the U. K. had communicated its views to other governments, but in any case there appeared to be in the making a plot to under-cut COCOM and leave the United States holding the bag. This was a serious situation striking at the concept of US–UK interdependence.

Mr. Cutler said he had addressed memoranda on this subject to Mr. Randall and to the Secretary of Commerce. (A copy of Mr. Cutler’s letter is filed in the minutes of the meeting, and another is attached to this memorandum.)³

Both Mr. Walter Williams (Commerce) and General Twining said they had not previously heard of the British proposals.

Secretary Herter remarked that the lure of Soviet trade was proving attractive and the Soviets were pushing their trade offers hard.

The National Security Council:⁴

Noted an oral report by the Special Assistant to the President for National Security Affairs that it was expected the United Kingdom would propose at the next COCOM meeting extensive revisions of the COCOM multilateral trade controls.

Marion W. Boggs

0. Source: Eisenhower Library, Whitman File, NSC Records. Top Secret; Eyes Only. Drafted by Boggs on January 31.
1. NSC 5704/3, “Statement of U.S. Economic Defense Policy,” September 16, 1957, is printed in Foreign Relations, 1955–1957, vol. x, pp. 495–498.
2. For text of NSC Action No. 1780, see ibid., p. 494.
3. Not printed. (Eisenhower Library, Whitman File, NSC Records)
4. The following paragraph constitutes NSC Action No. 1854, approved by the President on January 31. (Department of State, S/S-NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council)