460.509/3–154: Telegram
The Ambassador in the United Kingdom (Aldrich) to the Department of State1
secret
priority
priority
London, March 1, 1954—10
p.m.
3741. Excon. Following are points contained in United Kingdom memorandum, dated March 1 on over-all East/West trade policy, plus oral points made by Foreign Office. Immediately following cable2 contains list of items proposed by United Kingdom for retention in abbreviated List I.
- A.
- United Kingdom Memorandum. Her Majesty’s Government has carefully
considered United States views set forth in note of December 3,
1953.3 Wish to confirm there is
no difference between two governments in their appreciation of
strategical situation, nor in importance attached to safeguarding
security of countries participating in COCOM. Nevertheless, Her Majesty’s Government firmly of
opinion that West now in new situation vis-à-vis Soviet bloc as compared
to that existing when present control system established and fresh
appraisal of security system as whole required. It is common ground that
while West must be prepared for any eventuality, most probable
contingency for which West must be ready is prolonged period of tension
short of war. This appreciation confirmed by results of Berlin
Conference. There are number of reasons why substantial changes in
control system required. Controls were drawn up over number of years
when worsening political relations indicated possible early outbreak of
hostilities. Circumstances have now changed and concept of long haul
requires new strategic assessment in trade field. Her Majesty’s
Government has examined present lists on foregoing basis and draws
particular attention to following factors:
- First, if controls are to be effective over number of years embargo list must take account of high degree to which Soviet bloc can, within comparatively short time, be self-supporting. Similarly, items should be excluded which are incapable of effective control because of availability to Soviet bloc from other sources.
- Secondly, effective control depends not only on technical control devices, but also on willing cooperation of trading community in West. If embargo list includes items not clearly strategic, control system will be brought into disrepute and political support will disappear.
- Thirdly, with end of postwar readjustment period, West is experiencing growing necessity expand international trade in order provide for economic development and sound base for defense effort. There must, therefore, be overriding security reasons for continuance of restrictions on opportunities to expand sales to Soviet bloc and obtain required materials from Soviet bloc which exports will foster. There is no dispute about necessity for continuing denial of military and AE items, as well as industrial goods making direct and important contribution to Soviet bloc to overtake technological lead of West in defense field. However, in light of foregoing considerations, Her Majesty’s Government considers there are in addition only comparatively small number of items of indirect military importance sufficiently significant to warrant continued embargo. It follows that concept of quantitative control over items of secondary importance is incompatible with new approach and present List II should be abolished. Her Majesty’s Government has carefully re-examined existing lists and other items of potential importance and has drawn up revised list about half length of present IL I. New list contains all items Her Majesty’s Government considers of sufficient importance to warrant embargo. If such list is now adopted by COCOM, necessary corollary is enforcement by all measures available. Her Majesty’s Government would be ready to take further measures contributing to effective enforcement in particular transactions controls as part of cooperative effort in which other PCs would take equivalent action controlling both transshipments in their ports and financial dealings in embargoed goods. The introduction of transactions controls without a reduction in lists along proposed lines would entail serious internal political difficulties for Her Majesty’s Government. Her Majesty’s Government also favors joint publication of shorter embargo list as result new strategic appraisal.
- Finally, Her Majesty’s Government hopes that United States, after examining Her Majesty’s Government’s proposal, will join in proposing to COCOM the necessary revision of the present lists.
- B.
- Oral Points.
- 1.
- Atomic energy items are not included in current United Kingdom proposal because of current discussions leading toward consolidation these items in separate list.
- 2.
- Because of pressures now being brought by other PCs and by Charpentier and D’Orlandi for early CG presentation of United Kingdom views, United Kingdom feels under compulsion agree to CG meeting “fairly soon”. Foreign Office indicated possibly one month. Foreign Office would also like to inform Charpentier of new United Kingdom policy including lists and discuss with Embassy United Kingdom desire to have detailed discussions with French as [Page 1084] soon as possible. Embassy urged no decision on this point until Washington reactions received to which Foreign Office agreed.
- 3.
- Foreign Office also plans instruct United Kingdom delegation COCOM make statement along lines A above sometime this week in order meet pressures mentioned above. Embassy urged that any such statement be couched in most general terms and specifically that reference to abolishing List II be completely avoided in order that current discussions on trawlers and merchant ships not be brought to halt. Embassy also urged that, if such statement is to be made, no indication be given as to type of lists which would result, but rather that study still going ahead in this field.
- 4.
- British Ambassador, Washington, will be discussing with Department within next few days methods of handling situation created by new United Kingdom policy. Foreign Office would prefer that any resumed bilateral discussions be held in London and that no time be lost in resumption, due to time pressures created by Churchill’s statement.
- C.
- Embassy pouching complete text memorandum and three copies United Kingdom lists in event errors in transmission by cable. Also British Embassy will receive by Wednesday text these documents and McCall-Judson will be able to make them available to Department.
Aldrich