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

338. Telegram From Secretary of State Dulles to the Embassy in the United Kingdom⁰

Seattle, November 12, 1958, 2 p.m.¹

1. From USDel SEATO. For Ambassador from Secretary. After consideration British proposals eliminate voyage and bunkering controls² Department much concerned.

While Communists may have shipping capacity to move strategic items from USSR and European satellites to Communist China, public opinion and psychological aspects of abandonment voyage controls are paramount. If voyage controls abandoned USSR may be expected commence shipments of jet fuel and possibily even certain items on COCOM military list to Comm China in British vessels as means disrupting Anglo-American relations. Recent case of “Merchant Baron” provides foretaste of what could be expected. At time when ChiComs are engaged in hostilities in Formosa area avowedly to expel US from the South Pacific, such shipments by UK would inevitably cause severe reaction of US public opinion and would emphasize to world differences between US and UK. For these reasons US considers it most important that UK continue to apply voyage controls and if necessary seek special legislation for this purpose after law containing general authorization for controls is repealed. Otherwise UK may be in position of helping the ChiComs fight the US in Far East and drive it from area which is part of the SEATO treaty areas (e.g., Philippines) such voyage controls would be similar in purpose to inclusion of certain conventional weapons on COCOM military list even though USSR has full capacity and technical ability in these lines.

Regarding bunkering controls while US does not fully share UK views regarding present ineffectiveness these controls US does recognize that they could be source serious embarrassment to UK in Singapore and elsewhere. Therefore US prepared accept UK termination these controls. Clear distinction which US draws between voyage licenses and bunkering controls should be emphasized. Request you take this up with Lloyd or Ormsby-Gore speaking along foregoing lines and emphasizing serious threat to US–UK relations which would be posed by shipments of any COCOM controlled items to Communist China in British vessels. Have just heard that UK plans announcement its intention abandon voyage and bunkering controls in COCOM November 17. If British not prepared agree continuation voyage controls they should be requested postpone announcement in order permit further high-level consideration between US and UK Governments.

Dulles

0. Source: Department of State, Central Files, 460.509/11–1258. Secret. Repeated to the Department of State as Secto 5 and to Paris. Secto 5 is the source text.
1. Dulles was attending the 10th Ministerial Meeting of the Consultative Committee of the Colombo Plan in Seattle, November 10–12.
2. On October 30, the British Delegate at the COCOM meetings in Paris informed his U.S. counterpart that the United Kingdom was planning to discontinue the obligation imposed on British ships in 1953 of obtaining a voyage license when trading to ports in China and North Korea. At the same time, the British Government’s controls upon supply of coal and oil bunkers to ships of any nationality operating to China and North Korea were also to be discontinued. The repeal of this emergency legislation was part of the British Government’s program of lessening administrative burden on the government and British shipping companies. (Polto 1164 from Paris, October 30; Department of State, Central Files, 460.509/10–3058)