NETHERLANDS REQUEST FOR COCOM EXCEPTION TO SHIP COPPER WIRE TO POLAND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000100180081-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 12, 2016
• Document Release Date: July 11, 2000
• Sequence Number: 81
• Publication Date: May 12, 1958
• Content Type: MEMO

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THE ASSISTANT SECRETARY OF COMMERCE
WASHINGTON, 25
*Per DOC Exempt Letter On File*
MAY 12 1958
Subject: Netherlands Request for CoCom Exception to Ship Copper
Wire to Poland
Memorandum
To: Chairman, EDAC
From: Department of Commerce Membe
References: 1. EDAC D-147, May 5, 1958
2. CoCom Doe. 3033
3. POITO 3271, April 17, 1958
4. WG-I D-1650.2, November 22, 1957
5. Fact Sheet, Item 1640 (current IL Item 1650), March 10, 1958
6. ED/EC D-l23..September 25, 1957
At the Working Group.I meeting on April 24, 1958, reference 1, the
Department of Commerce member objected to and appealed the recommendation of
the Chairman that the USDel to CoCom be instructed to concur in an exception
request, reference 2, of the Netherlands Government for the shipment to Poland
pursuant to the special CoCom policy for Poland - of 500 tons of electrolytic
rolled copper wire (IL 1650) with a diameter of 6.35 mm.
The Department of Commerce bases its objection and appeal on the
following points:
1. Contrary to U.S. security views, copper wire of less than 6 mm
diameter was downgraded from an embargo status to watch list status in 1954?
Shipments immediately following this action and continuing intelligence
information satisfied the U.S. that its basic security views with respect to
this material were proper, leading the U.S. to again request embargo status
in early 1955, and to continue to press to date for CoCom agreement relative
thereto on the basis of U.S. top-level decision. The U.S. will again
actively seek the continued embargo of copper, including copper wire of
less than 6 mm diameter (EDAC D-142) in the CoCom list review currently
under way.
The basis for the U.S. position is fully set forth in references
5, 6 and 7 and, adequately confirms the existence of a copper deficiency both
in the Soviet bloc as a whole and within the individual nations comprising
the bloc Reference 5, dated as late as March 10, 1958, concludes "that
Western imports (of copper) have had the effect of assisting the bloc to
meet its military requirements." To the extent, therefore, that exports
of embargoed types of copper wire or copper - the products of which are
essential not only to conventional but also to most modern warfare - over
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and above that currently being exported under the watch list level of
control are glade, a direct contribution to overall bloc war potential
results.
The Department of Commerce recognizes that the export of 500
tons of 6.35 mu of copper wire appears justified and consistent under a
literal interpretation of the U.S. unilateral and the multilateral Polish
policy, i.e. reasonable and necessary to the Polish civilian economy. The
Department of Commerce does not, however, concede that the statement of
general policy must be followed without due consideration being accorded
to the adverse effects that actions taken under that general policy would
most probably have on U.S. security and other objectives. The Department
feels that the provision set forth in paragraph B(2)b of ACED PD 1315,
requiring all IL-I commodity cases to be presented to the ACCP structure
for determination, even though judged to meet the criteria for approval and
a similar requirement for submission to CoCom, supports its view. Further-
more, this would appear to have been the unanimous view of the ACEP depart-
ments and agencies by reason of the unanimous non-objection of members to
the OC Chairman's recommendation for denial of electrolytic copper wire
bars to Poland, even though there was agreement the item in the quantity
concerned (1500 tons) appeared reasonable and necessary to the Polish
civilian economy (OC Report of Recommendations No. 518).
2. As stated above, the U.S. has been and continues to be convinced
of the very high strategic Importance of copper, including copper wire, to
the war potential of the Soviet bloc, as well as to any other nation. The
Department of Commerce feels strongly, and apparently other agencies and
departments agreed as late as December 2, 1957, in the case of U.S. exports
of copper wire bars to Poland, that the approval of exceptions to the embargo
control over copper and copper wire, 6 mm and over in diameter, would have
a serious adverse effect on the achievement of the U.S. objective for
continued embargo of copper, including copper wire under 6 mm diameter.
The Department of Commerce is not aware of any technical/strategic considera-
tions that warrant a change in that position.
3. Because of its primary responsibilities, the Department of
Commerce takes strong exception on the basis of U.S. commercial interests
where security interests are not effectively advanced.. The concurrence of
the U.S. Government to shipments by CoCom countries of highly strategic
embargo type commodities to the USSR or the Soviet dominated nations of
Eastern Europe, including Poland, (all members of the Warsaw Pact) would
make Ineffective the denial of similar shipments by U.S. firma and businesses
and frustrate the attainment of U.S. objectives. The only practical result
in such cases is to deny U.S. business interests an opportunity to participate
in profitable trade and lessen the excellent cooperation existing bet-.-eecn
U.S. business and the Government authorities charged with the attainment of
U.S. overall security objectives.
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-3-
Accordingly, in view of the foregoing, the Department of Commerce
concludes that U.S. interests would be best served by.objecting strongly in
CoCom to the proposal of the Netherlands Government to ship 500 tons of
copper wire of 6.35 mm diameter to Poland. However, should a final determi-
nation be made that the U.S. should concur in this exception, the Department
of Commerce will feel it necessary to notify the U.S. applicants for the
shipment of electrolytic copper wire bars which were re)ected,pursuant to
the December 2, 1957 OC meeting, that favorable consideration would be
granted upon resubmission. Further, the Department of Commerce will expect
the EDAC structure to instruct the USDe1 to request an appropriate CoCom
exception pursuant to such favorable action.
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