493.009/1–3151: Circular airgram
The Secretary of State to Certain Diplomatic and Consular Offices 1
(From Commerce and State)
Export Controls
As reported in previous circular communications, in view of developments in Korea, United States controls have been extended over all United States exports to Mainland China, Manchuria, Hong Kong and Macao. Regulations further require licensing of all goods of foreign origin destined for above countries which move intransit through the United States, or use foreign trade zones, or are manifested to the United States. The latter regulation also applies to Positive List goods of foreign origin to Sub-Group A, (excluding China and Manchuria). Pursuant to Defense Production Act of 1950, Commerce Transportation Authority first prohibited United States flagships and aircraft from transporting any Positive List commodity; any arms, ammunition, or implements of war; or any commodity controlled under Atomic Energy Act, whether or not of United States origin, to any Sub-Group A destination, Hong Kong or Macao. Subsequently, the latter regulation was extended to prohibit United States flagships or aircraft from going to any Chinese Communist port or from receiving or delivering any cargo known or believed to be destined for Communist China.
In view of the emergency situation and increased United States controls, it is desirable that the missions intensify attention to possible transshipment of United States goods through your area. Also, it should be noted that the foregoing regulations, particularly controls on intransit shipments through the United States, may lead to creation of new routes for shipment of strategic commodities to controlled destinations. Accordingly, you are requested to investigate and report on a continuing basis information regarding:
- (1)
- Substantial increases of strategic commodities shipped from your area to China, Hong Kong, Macao, and Sub-Group A destinations.
- (2)
- Substantial increases of strategic commodities shipped intransit through your area to China, Hong Kong, Macao, and Sub-Group A destinations, including shipments made through free ports and other intransit facilities in your area, such as bonded warehouses.
- (3)
- Any United States flagships or planes handling shipments of strategic commodities from your area to controlled destinations mentioned [Page 1891] in (1) or participating in intransit shipments of such commodities to your area with knowledge or reason to believe that the intended ultimate destination is a controlled destination.
- (4)
- Any United States persons, firms, corporations, or affiliates, participating in shipments of strategic commodities from your area to China, Hong Kong, Macao, or Sub-Group A destinations, or in intransit shipments to your area which thereafter move to such controlled destinations.
- (5)
- Any apparently new trade routes established for shipments to China, Hong Kong, Macao, and Sub-Group A destinations originating in or passing through your area, and if so, names of shipping or airlines using such new trade routes, description of such routes, and names of new intermediate destinations or intransit points utilized.
- (6)
- State what informal facilities, governmental or private, available in your area for obtaining information of types described above. Include your views regarding the possibilities of cooperation with export control, customs, investigative, and enforcement officials of local government in your area.
- (7)
- State your views regarding the possibility of local government in your area instituting comparable controls and curbing increases in traffic to controlled destinations originating in or passing through your area, including evaluation of effectiveness of such controls if instituted.
A preliminary report containing all presently available information concerning these subjects is desired at your earliest convenience. The preliminary report and all subsequent reports should bear the code and title 000B316—Shipments of Strategic Commodities.
The reporting of this information on a continuing basis is of particular importance because of the requirement of the Cannon Amendment to the Supplemental Appropriations Act of 1950, concerning which a separate instruction will go forward shortly to the appropriate missions. The Cannon Amendment, for your information, is as follows:
“During any period in which the Armed Forces of the United States are actively engaged in hostilities while carrying out any decision of the Security Council of the United Nations, no economic or financial assistance shall be provided, out of any funds appropriated to carry out the purposes of the Economic Cooperation Act of 1948, as amended, or any other act to provide economic or financial assistance (other than military assistance) to foreign countries, to any country whose trade with the U.S.S.R. or any of its satellite countries (including Communist China and Communist North Korea) is found by the National Security Council to be contrary to the security interests of the United States”.
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