493.119/11–2151
The Secretary of State to the Secretary of Defense (Lovett)
Dear Mr. Secretary: The Secretary has asked me to reply to the letter of November 21, 1951, from the Acting Secretary of Defense, proposing modifications in the position paper entitled Additional Economic Measures Against Communist China and North Korea (NOV D–4b, October 31 [30], 1951), which was worked out between representatives of the Departments of State and Defense.
I note in the letter a reference to convincing evidence indicating that “a substantial volume of strategic materials and munitions continues to enter Communist China from the Western nations”. It would be very helpful to the Department of State if your Department could make this information available to it.
There has been recent agreement in the Coordinating Committee on international export controls (COCOM) to the British proposal for the addition of substantial categories of goods to the China embargo [Page 2054] list. In view of this, there now appears to be a reasonable possibility, if an ambiguous situation respecting the possibility of an armistice in Korea continues (see Recommendation B of the above-mentioned position paper), of action by the Additional Measures Committee and by the General Assembly more drastic than we considered last October could be brought about. I suggest, therefore, that a new Recommendation B.2 be added to the position paper, along the following lines: “B.2. The United States Delegation should vigorously explore with other delegations the possibility of adding new categories of goods to the five categories presently embargoed under the General Assembly resolution of May 18, 1951.” Present Recommendations B.2 and B.3 would become B.3 and B.4, respectively.
This Department is agreeable to the deletion of the three sentences mentioned in the third paragraph of the Acting Secretary’s letter, and it suggests the following consequential amendments:
Page 5, first paragraph under “B. If an ambiguous …”, at the end of the first sentence change the period to a comma and add: “and to explore vigorously with other delegations the possibility of adding new categories of goods to those presently embargoed under the May 18 resolution.”
Page 7, delete the first paragraph and substitute: “Bilateral or multilateral discussions outside the United Nations forum of economic controls related to the United Nations embargo are not precluded.”
Page 8, first paragraph, in the first sentence, after the word “controls” insert “or the embargoing of additional categories of goods”.
The Acting Secretary’s letter refers to a recommendation by the Joint Chiefs of Staff “that action be taken by the United States Delegation to insure the imposition by other nations at this time of restrictions on trade with Communist China equal in severity to those now imposed by the United States. …” This Government has constantly sought such restrictions by other states, but has encountered strong resistance to the idea of taking steps as drastic as ours. The restrictions called for by the General Assembly’s resolution of May 18, 1951, represented not the optimum from this Government’s standpoint, but rather the most on which an adequate number of free-world states would agree. The present position paper reflects this policy, by stating as its first recommendation: “In general, the Delegation should seek to obtain broad agreement to the application of economic measures which will have a maximum adverse effect upon the war potential of Communist China and North Korea, so long as their aggression continues.”
No action which our Delegation could take would “insure”, as the Joint Chiefs of Staff recommend, the imposition by others of the type [Page 2055] of trade restrictions which we ourselves have imposed. The instructions furnished to our Delegation do, however, call on it to take such steps as are calculated to persuade other states to move as far as possible toward our own position with respect to trade restrictions against Communist China and North Korea.
Regarding the comments on this position paper of the Joint Chiefs of Staff, quoted in your letter, concerning this Government’s position with respect to economic measures against Communist China and North Korea in the event that armistice negotiations definitely break down or there is a full-scale resumption of hostilities, this question is now being determined by the National Security Council. Its determination will, of course, be reflected in any necessary amendments to the position paper. In this connection, I might point out that, owing to the objection of the Economic Cooperation Administration, Recommendation C of the position paper (and the corresponding section of the discussion) did not receive full inter-agency clearance and has not been furnished to the United States Delegation to the Sixth General Assembly for its guidance. Recommendations A and B, together with the corresponding discussion sections, however, were furnished to our Delegation for appropriate action.
Sincerely yours,
Assistant Secretary