TRANSACTION CONTROLS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64-00014A000100070008-7
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: November 28, 2000
• Sequence Number: 8
• Publication Date: November 10, 1954
• Content Type: REPORT

? Approved For Release 2001/11/01 : CIA-RDP64-00014AO00100070008-7
I'iDAC Fact Sheet # EC2
November 10, 1954
Transaction Controls
The most recent COCOIMM understanding on the introduction of
transaction controls is contained in CCCOh Document 1634 of June 24,
prepared prior to the July CG meeting, Lit this CG meeting the U.K.
indicated willingness to adopt transaction controls, and the TAC scheme
was accepted in principle by the PC's, the two schemes having been linked
together during the year and one-half they had been under discussion
as the twin component of a transit trade control arrangement. Other
PC's not having transation controls had previously indicated that they
were prepared to introduce these (COCUYLL Document 1634).
The statement by the U.K. recorded in Doc, 1634 is of interest.
"At the request of some Delegations, the Export Controls sub-
committee heard details from the United Kingdom Delegation of the manner
in which transaction controls would be administered in the United Kingdom.
The explanation may be summarised as follows : In general, the measure
would be similar to those already in force in Canada and the United States.
The Government possessed legal powers to make Regulations on the purchase,
sale, distribution and disposal of goods by United kingdom traders. Under
these powers, it would be made an of ? enee to dispose of certain goods
lying outside the United Kingdom, either to Government agencies or
individuals in the Soviet Bloc, The expression "dispose of" was open to
wide interpretation and covered both disposal directly to the Soviet
Bloc, or indirectly, if the United Kingdom resident had any knowledge
of their ultimate destination. In reply to a question, the UNITED
KINGDOM Delegate said that he did not think that the term "dispose of"
would cover the action of intermediaries having no money invested in
the transaction but simply drawing a commission. This was, however, a
personal opinion and in the last analysis, the decision could only be
taken by the Courts,
The penalties for infringing these regulations could be very
heavy amounting to 14 years imprisonment. As to the practical operation
of the scheme : Any transaction having the approval of the Government
could only be carried out with a licence issued by the Board of Trade,
whether the goods came into the United Kingdom or not, The list of items
in which it was forbidden to trade would be published and breaches of
the Regulations would come to the notice of the authorities through,
various channels which he had described on previous occasions. The
authorities in the United Kingdom were satisfied that if the order were
introduced with very heavy penalties, it would act as a strong deterrent
to United Kingdom residents to carry out such transactions.
In reply to a question on the position of banks, the UNITED
KINGDOM Delegate said that if they took part knowingly in illegal
transactions, they would expose themselves to proceedings and this should
secure co-operation in the implementation of the order.
Approved For Release Wit: CIA-RDP64-00014AO00100070008-7
State Dept. declassification & release instructions on file
 Approved For Release 2001/11/01 : CIA-RDP64-00014AO00100070008-7
"POAMb
The UNITED STATES Delegate said that as the Committee knew, the
United States Government had had similar regulations in force since June
1953 and they had worked satisfactorily. The banks were one of the
principle enforcement agencies in the United States. In response to a
question the Delegate said that in the United States an agent drawing
commission would fall within the terms of the Order."
Attachment
Approved For Release 2001/11/01 : CIA-RDP64-00014AO00100070008-7