Foreign Relations of the United States, 1952–1954, China and Japan, Volume XIV, Part 1

753E.00/8–152: Telegram

No. 44
The Acting Secretary of State to the Embassy in Portugal¹

secret

Washington, August 1, 1952—7:36 p.m.

57. Excon.

(1) Port Amb² today made oral representation to dept view recent Macao-Chi border incidents³ stating fear trade restrictions with Chi prejudices Port control Macao. Suggested that if trade controls were relaxed to permit export from Macao to Chi of “some” strategic goods, tense situation vis-à-vis Commie Chi might be alleviated.

(2) Dept replying to Amb to effect we believe problem is one that can best be handled by COCOM on basis application Chi embargo list to Macao. In view recent developments Port shld bring matter before COCOM on urgent basis. US inclined doubt relaxation trade controls wld appreciably affect Chi Commie attitude re Macao. In this connection we recall shipments strategic goods (see COCOM Doc 683 B, Apr 4⁴) made in past from Macao to Commie Chi have not appeared affect Chi Commie attitude. US position expressed Deptel sent Lisbon 625 Rptd info London 6059 Paris 6852 Hong Kong 4159⁵ and in Emb Lisbons desp 858 May 29.⁶

(3) Re Chi Commie action cutting off food exports to Macao US prepared urge sympathetic consideration to problem of imports food from other sources if necessary.

Bruce

1. Repeated to London, Paris, and Hong Kong, and to Kaneohe, Hawaii, for Allison, who was attending the First ANZUS Council meeting.
2. Luis Esteves Fernandes.
3. Portuguese and Chinese troops had exchanged gunfire with casualties on both sides on July 25–26 and 29–30.
4. Not printed.
5. Telegram 625 to Lisbon, May 20, set forth a proposal that the Portuguese Delegate to COCOM should propose (with U.S. support) that the COCOM China embargo list should be applied to Macao subject to exceptions procedures, under which the Macao authorities should certify that items on the list imported into Macao were essential for local use and should report all such imports and certificates to COCOM. The proposal was designed to enable the Macao authorities to transfer the onus of trade restrictions to the Western European exporting countries, thereby reducing the risk of reprisals. (493.53E9/4–2952)
6. Despatch 858 transmitted a copy of a memorandum sent to the Portuguese Foreign Office by the Embassy on May 22 setting forth the Department’s proposal. (493.53E9/5–2952) Despatch 167 from Lisbon, Sept. 26, reported that the Portuguese Government had rejected the proposal in a note of Sept. 19. (460.509/9–2652)