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

Washington, July 17, 1962.

U.S. Economic Defense Policy

a.: Discussed the memoranda presented by the Departments of State and Commerce.1
b.: Noted the President’s directive that the State and Commerce Departments add to the statement of U.S. Economic Defense Policy contained in NSC 5704/3 any language considered necessary to reflect pertinent legislation approved by the Congress this year.
c.: Agreed that no major review of NSC 5704/3 was necessary at this time.
d.: Noted the President’s decision that for the next few months, until further review, the level of export controls would be that existing prior to August 1961. Pending export license applications will be decided in accordance with this decision.
e.: Agreed that licenses for export to the Soviet Bloc of automotive manufacturing machinery would be denied.
f.: Agreed that as a complementary approach to U.S. economic defense, an effort should be made in an appropriate Allied forum, OECD, the economic committee of NATO, or other suitable forum, to draft a Western code of fair trade practices for presentation to the Soviet Bloc.
g.: Noted that the State and Commerce Departments, taking into account the results of action initiated under f. above, will keep the U.S. economic defense policy under continuing review.

Source: Department of State, S/S NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council. Secret. Taken at the 503d NSC meeting (see Document 313).↩
Reference is to four papers, Documents 309–312, transmitted to President Kennedy with an explanatory memorandum by Kaysen, July 17. The word “Defense” has been crossed out on the source text and “Commerce” typed in, in accordance with a July 23 memorandum (filed with the source text) to all holders of NSC Action No. 2455.↩