Memorandum of Conversation with Secretary of State Dean Acheson, Secretary of Defense Louis Johnson, and Others

SECRET Secritary P. office 234 903493 DECLASSIFIED E. c. 11652, Sec. 3(E) and S(D) or (E) DEPARTMENT OF STATE Return to 234 Dept. of State letter, 2-23-23 Memorandum of Conversation Ress NLT. HC : NARS Date 4.2776 M.ashysmon DATE: July 21, 1949 205 SUBJECT: Export License for Yugoslav Blooming Mill <04 LATIONAL ARCHIVES AND RECORD% PARTICIPANTS: Secretary of Defense Johnson Lt. General Lutes Theodore Halaby - Office of Secretary of Defense Secretary of State Acheson Mr. Llewellyn Thompson - Deputy Assistant Secretary for the Office of European Affairs E. M. Martin - Deputy Director, ITP Under Secretary of Commerce Whitney Assistant Secretary of Commerce Blaisdell 1-1493 The Secretary of Defense opened the meeting by calling attention to a telegram of February, date not specified, sent by State and ECA to OSR, indicating that as a result of a National Security Council decision European countries desiring to ship la items to Yugoslavia should provide in- formation with respect to such shipments on the basis of which the advisability of making them would be reviewed here, and also indicating that within normal amounts 1B items could be shipped freely. The Secretary of Defense objected to the failure to refer to the necessity for con- sultation wi th the NME on licenses to Yugoslavia and to the suggestion that 1B shipments were not a matter of con- cern. The Secretary of State referred to the NSC decision and had extracts read which in his judgement supported the position taken in the telegram. The Secretary of Defense indicated that if the NSC decision really meant what was in the telegram, he would have to take exception to the NSC decision. The Secretary of Defense continued by referring to a draft letter to the Secretary of State on the proposal that a blooming mill be approved for export to Yugoslavia. He indicated that he did not propose to leave the letter now as he wanted to strengthen it at several points. Subsequently he indicated that, when revised, he would dispatch it to the Secretary of State on an informal basis with the hope that a settlement of the issue could be reached without having to formalize positions in writing SECRET or 6/4