194. Current Economic Developments1
[Here follow articles on unrelated subjects.]
US THINKING ON COCOM LIST REVIEW
Before submitting formal proposals to the Coordinating Committee on Export Controls (COCOM) in connection with this year’s List Review, the US is exploring on a bilateral basis with the British, French, German, Dutch and Japanese delegations and the Chairman possible changes in the List as well as in procedures for conducting the Review.
The US believes that the USSR and the Warsaw Pact countries of Eastern Europe continue to constitute a potential threat to the security of COCOM participating countries and that continuation of COCOM controls on exports to this area is therefore justified. However, the growing self sufficiency of some of these countries may permit relaxation on some items. On the other hand, the significance of imports as a factor contributing to Communist China’s advanced weapons programs warrants giving priority attention to strengthening COCOM controls. In view of Sino-Soviet differences, the risk of transshipment from the USSR and Eastern Europe to East Asia is less than it was a few years ago.
If other participating countries agree with this rationale, COCOM might wish to provide for more liberal treatment for certain items to Eastern [Page 546] Europe and the USSR than to East Asia. For instance, notes could be added to some items which would have the effect either of permitting, as administrative exceptions, shipments to the USSR and Eastern Europe, but not to East Asia and Albania, or of applying special exception procedures for shipments to the USSR and Eastern Europe.
The outcome of a List Review using this approach should be that changes in the List should be distributed among the following three categories and should not be concentrated in any one of these categories: a) increases in coverage for East Asia and Albania and a few increases for Eastern Europe and the USSR; b) decreases in coverage for Eastern Europe and the USSR and in a few instances decreases also for East Asia; and c) changes involving both increases and decreases or clarification for all destinations.
Since our review is only partially complete, we are not submitting firm proposals at this time. We have identified some changes which we want to discuss bilaterally, most of which would strengthen controls because of developments in East Asia. We hope to have other suggestions, including some for relaxation, ready by the time bilateral meetings actually take place in May and June. Our objective is to exchange information bilaterally which will simplify the List Review negotiations in COCOM, scheduled to begin October 1.
[Here follow articles on unrelated subjects.]
- Source: Washington National Records Center, RG 59, E/CBA/REP Files: FRC 72 A 6248, Current Economic Developments. Confidential. The source text comprises page 11 of the issue.↩