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National Security Council Determination Number 1 Report by the National Security Council Regarding An Interim General Exception Under Section 1302 of the Third Supplemental Appropriation Act, 1951

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June 14, , 1951 NSC DETERMINATION NO. 1 REPORT BY THE NATIONAL SECURITY COUNCIL regarding AN INTERIM GENERAL EXCEPTION UNDER SECTION 1302 OF THE THIRD SUPPLEMENTAL APPROPRIATION ACT, 1951 I. Background 1. Section 1302 of the Third Supplemental Appropriation Act, 1951 (Public Law 45, approved June 2, 1951), directs that no economi or financial assistance shall be provided to any foreign country which, after 15 days following its enactment, exports or knowingly permits the export of certain named categories of commodities to the Soviet bloc during any period in which the Armed Forces of the Unite States are actively engaged in hostilities in carrying out a decisio of the Security Council of the United Nations. In order to be eli- gible for economic or financial assistance each country must certify that after the prescribed period it has not exported or knowingly permitted the export of the prohibited items to the Soviet bloc. 2. Section 1302 requires that the Secretary of Defense certify to the Economic Cooperation Administrator a list of specified art- icles or commodities. The list in question was certified on June 5, 1951, and is attached as Appendix 1. 3. Section 1302 authorizes the National Security Council to make exceptions to its several provisions upon an official determina tion that such exceptions are in the security interest of the United States. 4. The terms of Section 1302 apply to a wide variety of eco- nomic and financial assistance programs. They pertain to loans and grants such as those made by the Economic Cooperation Administration to many Export-Import Bank loans (such as loans to various Latin American countries for the strengthening of basic industries or for expanding the production of strategic minerals). and to a variety of agricultural, health, and development and technical assistance pro- jects carried on largely under the Point IV Program. In addition tc general programs conducted under a broad authority granted by the Congress, they apply to a number of assistance measures authorized individually by specific legislation, such as those for the loan to Spain and for aid to Yugoslavia. The provisions of Section 1302 ap- ply to some 60 countries receiving some form of economic assistance even though it may be very limited in many cases. (See Appendix 2.) In support of the various general and special assistance measures, NSC DETERMINATION NO. 1 - 1 -

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