460.509/12–1653: Telegram
The United States Special Representative in Europe (Hughes) to the Department of State1
Polto 1045. Excon. Subject: Meeting 15 December between Stassen2 and Maudling, Economic Secretary UK Treasury, re East/West trade controls.
Stassen expressed US disappointment that British position stated in pre-CG bilaterals in Nov implied controls should only extend to strictly military items. Cited various segments of general economy [Page 1068] which can contribute directly to military buildup. While US therefore unable accept premise controls should be on purely military items US nevertheless will re-examine all specific items with view streamlining control lists.
Maudling’s response covered following points:
- 1.
- UK appreciates importance of problem and is re-examining its position as stated in pre-CG bilaterals.
- 2.
- In deference UK public opinion, however, any modification existing
controls must have following characteristics:
- (a)
- Must be real bite on bloc economy;
- (b)
- Must be seen to be real bite;
- (c)
- Must be seen to involve comparable sacrifice by all PCs of market opportunities;
- (d)
- Line demarcation between banned and unbanned items must be comprehensible to UK businessman.
- 3.
- With specific reference transaction controls, UK Government supported necessity this innovation but parliamentary reluctance introduce new controls requires that adoption scheme be coupled with clarification and some reduction general level of controls.
Stassen asked when UK would be prepared resume bilateral discussions, emphasizing urgency preparing for early CG meeting. Maudling somewhat hesitatingly said he thought early January feasible. UK authorities will notify American Embassy London when their re-examination completed and when they ready resume talks.
Airgram follows.
- Repeated to London.↩
- Governor Stassen was in Paris on the occasion of the North Atlantic Council Ministerial meeting; for documentation on this meeting, see vol. v, Part 1, pp. 454 ff.↩