493.009/10–154: Telegram

No. 312
The Secretary of State to the Department of State

top secret

Dulte 16. Thorneycroft spoke to Secretary September 29 about possibility some revision China embargo list. Said he knew situation not ripe for action at present but suggested two sets of officials of US and UK should without publicity or commitments make study of China list in order be ready for later action should that become appropriate. Also mentioned need of devising more effective enforcement measures. Said he realized publicity on matter would be inappropriate during US elections and although he anticipated taking considerable beating in Commons when reconvened in October he prepared do so for time being.

Secretary said it not merely question of elections but of fact Chi-Coms continue behave very badly—first Korea, then Indochina and now stepped-up hostilities against ChiNats. If events lead to pacification of situation then reconsideration China embargo might possibly be in order.

Thorneycroft spoke of importance of trying to find some way for Japan carry on non-strategic trade with China and thus relieve Western powers of necessity of absorbing Japanese goods. Secretary pointed out that technical aspects of implementation and enforcement problems were primarily responsibility of Stassen and FOA but said he would on return discuss with Stassen and other interested cabinet officials the possibility of some preliminary work on list itself and its enforcement to be done without publicity or commitment.

Thorneycroft then spoke at some length about Japanese situation saying he hoped formula could be found for bringing Japan into GATT1 but this very difficult. Thought it would have to build in some pre-existing discriminations on part of some of Commonwealth countries. Although matter very unpleasant from political standpoint he felt UK should do its share in helping deal with economics of situation.

Dulles
  1. For documentation concerning the possible adherence of Japan to the General Agreement on Tariffs and Trade, see vol. i, Part 1, pp. 115 ff.