Office of the Historian

324. Memorandum From the Secretary of the Council on Foreign Economic Policy (Cullen) to the Executive Secretary of the National Security Council (Lay)0

February 17, 1958.

SUBJECT

  • CFEP 566—U. S. Economic Defense Policy1
1.
Reference is NSC Record of Action No. 1857 dated February 7, 1958 which requested the Council on Foreign Economic Policy to review U.S. Economic Defense Policy in the light of the United Kingdom proposal to substantially reduce the COCOM multilateral trade controls.2
2.
Pursuant to the above, the Council on Foreign Economic Policy, on February 14, 1958, reviewed the United Kingdom proposal and took the following action:3
a.
Disagreed with the concept underlying the British proposal, outlined in the CFEP Committee report, that multilateral trade controls should be limited to items having a direct bearing on the Soviet capabilities in an initial thermonuclear exchange; and that the controls should be solely strategic in purpose and should not be directed at the Soviet industrial base even though the strengthening of this base facilitates Soviet penetration of underdeveloped areas.
b.
Approved the position outlined in EDAC D–142 as the U.S. negotiating position in the current COCOM negotiations. (EDAC D–142 is attached.)4
c.
Agreed that the basic issue confronting the U.S. in the current COCOM negotiations is whether to be more influenced by the objective of maintaining what the U.S. considers to be an effective multilateral control system or achieving a unified Allied position with respect to the level of the multilateral controls. Further agreed that this issue should be presented to the NSC as soon as possible, with a view to obtaining Presidential policy guidance.
d.
Agreed that any reductions in the controls beyond those outlined in EDAC D–142 should be subject to the agreement of the Secretaries of State, Defense, and Commerce, consistent with approved policy in NSC 5704/3 and taking into account Presidential policy guidance on the issue stated in (c) above.
3.
A copy of the minutes of the CFEP of February 14 reflecting the above action is attached as Tab A. Also attached is a copy of the report and recommendations of the CFEP Committee on Economic Defense concerning the U.K. proposal. EDAC D–142 is attached to the CFEP Committee report.
Paul H. Cullen5
  1. Source: Department of State, S/P-NSC Files: Lot 62 D 1, U.S. Economic Defense Policy. Secret. Lay transmitted this memorandum and the minutes of the CFEP meeting of February 14 to the NSC under cover of a memorandum of February 17.↩
  2. Document 322.↩
  3. See footnote 4, Document 322.↩
  4. Subparagraphs a-d are taken verbatim from the substantive portion of the CFEP policy minutes of February 14, attached as Tab A, but are not printed.↩
  5. EDAC D–142 was not attached. A note on Lay’s covering memorandum indicated that it was available through EDAC channels or upon request of the Executive Secretary of the NSC. See footnote 3, Document 323.↩
  6. Printed from a copy that bears this typed signature.↩