Foreign Relations of the United States, 1961–1963, Volume IX, Foreign Economic Policy

311. Memorandum From Secretary of State Rusk to the National Security Council ⁰

Washington, July 16, 1962.

SUBJECT

• Addendum to Memorandum of July 10 on Export Control Policy

In discussions with the Departments of Commerce and Defense occasioned by my memorandum of July 10, 1962 for the National Security Council, it was agreed that the restatement of United States Economic Defense Policy should more explicitly reflect the recent changes in the language of the Export Control Act. I would therefore recommend that the paragraph in enclosure 1, which has the agreement of the Departments of Commerce and Defense, be substituted for Paragraph 8 under Courses of Action in the Statement of United States Economic Defense Policy (enclosure 1 to my memorandum of July 10). The Department of Commerce considered that it was necessary to retain the clause in the present NSC 5704/3 providing for unilateral U.S. control to “serve other U.S. policy objectives.” It is understood that this clause is intended to cover those few special cases (such as scrap iron) on which we have a “moral” position of not participating in exports to the Soviet bloc, irrespective of what other countries do, although the item is not otherwise covered by the language of the enclosed paragraph.

It also seems desirable to carry through with the “economic potential” concept set forth in the revised paragraph in enclosure 1 by adding a fourth criterion to the “Criteria and Licensing Policy” (enclosure 2 to my memorandum of July 10). Such a new criterion is included as enclosure 2. The criterion covers actions such as that undertaken to deny pipe and pipeline equipment in an attempt to limit the Soviet potential for disrupting the pattern of free world oil supply. Thus this new criterion is intended to carry out the intent of Congress to assure that U.S. exports do not contribute to Soviet economic potentialities which could be damaging to the national security and welfare. This new criterion has likewise been agreed by Commerce and Defense.

Finally, while no change seems necessary in criterion (b) of the “Criteria and Licensing Policy” relating to technical data, there is agreement that special effort should be used to assure that controls over technical data adequately protect the national security and welfare.

Dean Rusk ¹

Enclosure 1

8. Maintain toward the European Soviet bloc U.S. export controls over multilaterally agreed items and over such other materials, equipment, supplies, technical data and services—including plants, proc-esses, designs, production equipment and production materials—as will make a significant contribution to the military or economic potential of the Soviet bloc, or can effectively serve other United States policy objectives judged by the U.S. control authorities to warrant the use of unilateral controls; provide for denial of all such items the export of which would prove to be detrimental to the national security and welfare of the United States; and take all appropriate measures as will effectively enforce these controls and prevent their frustration by or through non-Communist countries.

Enclosure 2

d. Materials, equipment and particularly technical data making a significant contribution to Soviet bloc activities which disrupt essential free world economic arrangements in such a way as to prove detrimental to the national security and welfare of the United States.

0. Source: Johnson Library, Vice President’s Security File, NSC, East-West Trade, July 10, 1962. Secret. Transmitted to the President along with Rusk’s memorandum to the National Security Council (Document 309), Hodges’ letter to President Kennedy (Document 310), and Hodges’ memorandum to the National Security Council (Document 312), with an explanatory memorandum by Kaysen, July 17. (Kennedy Library, National Security Files, Meetings and Memoranda Series, NSC Meetings, 1962, 503rd NSC Meeting)
1. Printed from a copy that indicates Rusk signed the original.