Memorandum of Telephone Conversations with Secretary of State Dean Acheson, William C. Foster, Averell Harriman, and Thomas C. Blaisdell, with Attached Memorandum of Conversation with John O'Gara and Edwin M. Martin

354 "NATIONAL ARCHIVES AND SECRET 272 RECORDS corf S/S October 11, 1950 Mr. William Foster telephoned the Secretary to let him know the very serious situation ECA was in regarding export licenses for strategic materials. He said Secretary Sawyer is in the Caribbean and Commerce officials have put into effect en order which holds up export of any item on the 1A and 1B lists, This prohibits export of many items, and a most serious situation has risen in England as regards molybdenum one plant 1s shut down for lack of it and another had just a few days* supply. He said that ECA simply could not operate with these orders in effect and Commercial officials would not give an inch on the matter. The Secretary agreed with Mr. Foster that the situation was impossible and that something should be done to resolve the dif- ficulties before the President got away this afterncon. He told Mr. Foster he would see what could be done and call him back. The Secretary then talked with Mr. Martin and Mr. O'Gara in the Department on this subject. The Secretary telephoned Mr. Harriman and explained the situation described above. Mr. Acheson suggested that we have a letter drafted to Mr. Blaisdell for the President*s signature, and that they together with Mr. Foster see the President before he got away this afternoon on his trip. Mr. Harriman concurred in this suggestion, and turned the phone over to Mr. Foster who was with him at the time of the Secretary's eall. The Secretary told Mr. Foster that what we had in mind saying in the draft was something along these lines: the interpretation placed on the NSC decision is such that no licenses are being granted for shipment of goods to Western Europe on the la and 1B lists; that this was not the President's intention, and, therefore, pending - 6 clarification of the entire matter upon the President's return, the Commerce Department was requested to issue such licenses as the Administrator of ECA deemed essential, Mr. Foster readily agreed to go to the White House with the Secretary and Mr. Blaisdell. The Secretary then telephoned Mr. Blaisdell and set forth what we proposed to do. Mr. Acheson said that, in the absence of Mr. Sawyer, SMCRET