Foreign Relations of the United States, 1950, Central and Eastern Europe; The Soviet Union, Volume IV

450.119/10–250: Telegram

The Acting Secretary of State to the United States Delegation at the United Nations, at New York

top secret   niact

Washington, October 2, 1950—6 p. m.

356. For Raynor.¹ Swed Amb² informed Perkins³ East-West trade problem may be brought up by Unden⁴ when he meets the Secretary Tuesday or Wednesday.⁵ For background: Commerce is suspending action on licenses to export 1–A items to certain Western European countries including Swed pending clarification of policy established in NSC action 347 dated Aug 24.⁶ Resulting suspension of action by Commerce on several specific licenses for Swed during past week has brought matter sharply before Swed Emb. Items involved include petroleum coke, molybdenum, lube oils and special steels. We have drafted a State Dept position which is less restrictive than Commerce interpretation. Reconciliation of conflicting US Govt viewpoints is hoped in near future. Unden is inclined regard such trade controls as “economic warfare” and is violently opposed to latter.

If Unden broaches this question, suggest Secretary may wish comment along lines that Western powers have real problem in trying to prevent shipment of goods which would increase Iron Curtain war potential. Having decided refuse shipment such goods from US or other Western European powers to Soviet bloc, we are faced with two serious problems with respect to shipments by countries with less severe security controls: (a) trans-shipment through such countries to Soviet bloc, (b) shipments from indigenous production to Soviet bloc of items prohibited shipment by US while at same time such items being imported from US. The Secretary might ask Unden how he would like to propose the problem be handled so far as shipments to Swed are concerned.⁷

Webb

1. G. Hayden Raynor, United Nations Adviser in the Bureau of European Affairs, Department of State, serving as Adviser to the United States Delegation at the Fifth Regular Session of United Nations General Assembly, New York, September 19–November 5, 1950.
2. Erik Boheman.
3. George W. Perkins, Assistant Secretary of State for European Affairs.
4. Östen Unden, Swedish Foreign Minister.
5. Foreign Minister Unden and Secretary of State Acheson headed their respective delegations at the United Nations General Assembly.
6. Ante, p. 179.
7. During a conversation with Secretary of State Acheson on Tuesday, October 3, Foreign Minister Unden did bring up the question of East-West trade. According to Raynor’s memorandum of that conversation, not printed, Unden referred to the increasing difficulty Sweden was encountering in obtaining export licenses, and he emphasized the great importance to the Swedish economy of certain exports from the United States. Unden stated that Sweden could not make an “undertaking” on the question of export controls, but he implied that the United States should have some confidence in Sweden’s handling of the matter. Secretary Acheson stated that there was no intention of imposing a general embargo, but he indicated that the tightening up of export controls on certain items to the Soviet Union was a matter of serious concern to the United States (Secretary’s Memoranda, Lot 53 D 444, Secretary’s Memoranda of Conversation). Lot 53 D 444 is a comprehensive chronological collection of the Secretary of State’s memoranda and memoranda of conversation for the years 1947–1953, as maintained by the Executive Secretariat of the Department of State.