Memorandum of Conversation with Secretary of State Dean Acheson, Secretary of Commerce Charles Sawyer, Thomas C. Blaisdell, William C. Foster, and Mr. Bishop

COPY A/S 2938 M.A. DEPARTMENT OF STATE 302 38 Memorandum of Conversation DATE: October 30, 1950 SUBJECT: East-West Trade PARTICIPANTS: The Secretary of State Secretary of Commerce, Mr. Sawyer Under Secretary of Commerce, Mr. Blaisdell Administrator of Economic Cooperation Administration, Mr. Foster Mr. Bishop COPIES TO: S/A - Mr. Jessup G - Mr. Matthews E - Mr. Thorp EUR - Mr. Perkins S/MDA - Mr. Ohly miss 1-1493 The Secretary of State opened the conversation by referring to the present NSC action, No. 347, which was drawn up by Mr. Lay to express the action taken by the Council at its last meeting on this subject, August 24, 1950. The Secretary said that only recently had this particular record of action been brought to his attention. He went on to review what had been his under- standing of the agreement at the Council meeting on August 24, and emphasized the difficulties which had arisen as a result of the Department of Commerce Order No. 381, September 18. Some 22,000 applications are outstanding, around 1500 of these applications being for important ECA shipments. Mr. Sawyer in general agreed with the Secretary's interpretation of the meeting, but said that he did feel, however, that his order was designed only to carry out the policy as he thought it had been established by the National Security Council. Mr. Sawyer emphasized that he was not making policy and that he would, of course, execute whatever policy the Council or, in fact, the Presi- dent laid down. Secretary Acheson, in summary, said that what he would like for the Council to do was to reach agreement to the three following general points: 1. First, that we should finish the negotiations which are now underway and which we are confident will give us agreement on something like 90 per cent of the la items and 50 to 60 per cent of the 1B items; 2. Having DECLASSIFIED ARCHIVES RECOROS SERVICE 'NATIONAL AND E.O. 12065, Sec. 3-402 State Dept. Guideline. June 12, 1979 con PEODET wer P2.2 101 By NLT- Nu NARS, Date 6-29-12