110. Memorandum From the Under Secretary of State for Economic Affairs (Ball) to the Presidentʼs Special Assistant for National Security Affairs (Bundy)0
SUBJECT
- Export Controls to the Soviet Bloc With Respect to Agricultural Surpluses
In response to your inquiry, I can say that the Department continues to support the decision reached by the Export Control Review Board regarding export of wheat or other commodities to the Soviet Bloc. Specifically, we do not advocate any change at this juncture with regard to the export control criteria which permit the licensing of wheat sales to Russia and the Soviet Bloc.
I well understand the interest of the Commerce Department in being assured that the prevailing policy does in fact represent the considered position of the Executive Branch. I can also sympathize with them in face of the pressure being applied and inquiries whether such exports are not in conflict with the other actions of the United States Government with respect to Berlin. As you know, a continuance of the present export control policy is consistent with the Presidential determination on Berlin; viz, that we should withhold application of economic warfare measures pending development of the situations that it was agreed should trigger such action.
I believe that Carl Kaysen has also brought to your attention the related action we have taken with respect to the amendments proposed by the House for PL-480, one of which would have prohibited the export of agricultural surpluses to the Soviet Bloc. Just as we feel the House amendment would be ill-advised, so we would consider any change in the position taken by the Export Control Review Board to be equally ill-advised.
- Source: Department of State, Central Files, 460.119/8-161. Secret. The source text bears no drafting information, but was attached to a memorandum of transmittal from Battle to Bundy. Another copy of this memorandum is attached to a memorandum from Ball to Rusk, July 31, which shows Ruskʼs approval to send it to Bundy. (Ibid., 611.61/7-3161)↩