EXECUTIVE COMMITTEE OF THE ECONOMIC DEFENSE ADVISORY COMMITTEE MINUTES 10:00 A.M. WEDNESDAY, JUNE 12, 1957 ROOM 1213 MAIATICO

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000100180032-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 12, 2016
• Document Release Date: September 5, 2000
• Sequence Number: 32
• Publication Date: June 14, 1957
• Content Type: MIN

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ED/EC M-2L3
June 14, 1957
EXECUTIVE COMMITTEE OF THE
ECONO TTEE
MINUTES
lOpOO a.m. Wednesda June 1.2 l957
Room 113 Maia ico
Attendance!
Mr. Hale, Chairman
Mr. Anderson
Mr Wi ght
Mfr MMartino
.
Mr. Kramer, Executive Secretary ICP.
Mrs. Hiver, Committee Secretary Mr. Slaght
CIA
C onmerce
Mr. Hockersmith
Mr. George
Agendas
State
Mr. Wright
Mr. Knoll
Treasu
Mr. Pollak
Note a, CFEP Meeting
Note b. List II Quotas for China
Note c, Clearance of telegram to Vienna
Note d. Proposed paper to be sent to NSC from JCS
Note e. Magnuson Standing Subcommittee on Foreign Commerce
1. Review of Economic Defense Policy (NSC 5704/3-)
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Note a. CFEP Meeting
There was a discussion of the CFEP meeting which took place Tuesday,
June 11, at which time Mr. Dillon briefed that forum on the outcome of the
CHINCOM negotiations. Pursuant to a statement made by Mr. Randall at the
CFEP meeting, EDAC will proceed with the review and redrafting of economic
defense policy '
Note b. List II Quotas for China
The State member will draft a message to the USDEL on the subject
of the extent to which they should participate in a discussion in CHINCOM
of List II quotas for Communist China. The message will be circulated for
concurrence by the agencies and will, in Staters view, be within our present
policy.
The Chairman called attention to POLTO 2963 on the subject of a
proposed discussion in CHINCOM on List II quotas for Communist China. He
noted that Mr. Dillon had stated at the CFEP meeting that this matter did
not need a policy decision but should have interagency consideration.
The State member said that his agency assumed that the U.S. would
not propose anything with respect to List II quotas for China because our
position is that it would be preferable to continue the differential controls.
The only question is whether the U.S. should participate in a discussion
which would take place on the basis of proposals put forward by other countries.
There was a general discussion and those members who expressed views
felt that the U.S. should not participate in such discussions. If, however,
the Department of State determined that it is within our policy to participate
and that it would be desirable for political reasons to.do so, the members felt
that the U.S. should do whatever it could to keep the quotas as tight as
possible.
Notes. Clearance of telegram to Vienna 25X1A2g
A draft message prepared by State in response t
was cleared by the members. Lhe message was dispatched
June 13, 1957.7
Note d. Proposed paper to be sent to NSC from JCS
The Defense member read from a memorandum to the Secretary of Defense
from the Chairman of the Joint Chiefs of Staff on the trade control problem.
The memorandum, which makes certain recommendations for future actions, will
be sent to the NSC from the JCS with the request that it be given priority
consideration.
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-3-
Note e, Magnuson Standing Subcommittee on Foreign Commerce
The Commerce member reported that his Department has been re-
quested to appear before the newly constituted Magnuson Standing Subcom-
mittee on Foreign Commerce on June 20th., The General Counsel of Commerce
has requested a conference with Senator Magnuson in an effort to determine
what aspects of trade he would want the Department to be prepared to dis-
cuss at this June 20th session. The Commerce member suggested that an
agreed Executive Branch position on the major issues should be obtained
quickly to assure that testimony by different agencies will agree,
1, Review of Economic Defense Policy (NSC 574 1
Decision
Discussion was postponed until 10000 a.m. Thursday, June 13, 1957,
at which time Defense will be prepared to present a memorandum covering
their proposals for revisions in the economic defense policy,
The Chairman thanked the Commerce Department for their early sub-
mission of proposed changes in NSC 570)/1,
The Commerce member stated that it is the feeling of his Department
that a number of recent events have a fairly direct impact on economic
defense policy. In this regard, he said they are particularly interested
in receivingcr having access to any evaluations which may be developed by
the Department of State from a policy point of view and the Department of
Defense from the point of view of military significance. From the Commerce
evaluation, they feel that there are a number of changes now appropriate to
suggest, and his agency has attempted to set forth, in the paper which has
been presented to the members, the ones which they feel are worthwhile. The
paper does not give the reasons for the suggested changes, but the Commerce
member will do that orally during the discussions,
The Chairman said he thought it would be necessary to review the
current economic defense policy and the proposals of the individual agencies
paragraph by paragraph in an effort to prepare a draft of a revised policy
which would allow the U.S, to step back into a position of leadership and
which would give us a tangible and real basis for proceeding in the future.
He felt that the draft should contain alternative language to point up the
differences of view among the agencies in order that the policy people can
consider the right and proper course of action which the U.S. will hold as
a matter of policy,
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