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may or June, 1951 STATEMENT CONCERNING THE KEM AMENDMENT Nobody, including ECA, can or does object to the purpose of the Kem Amendment, which is protection of the security interests of the United States. ECA does object to the wording for seven principal reasons: 1. The amendment goes too far in that it concentrates upon exports and completely ignores what is received in return. For instance, one of the Soviet satellites, under a trade agreement, has just delivered to the Army Department of a Western European country a complete cartridge factory capable of turning out 60,000 cartridges for the army in an 8 hour day. Under the Kem Amendment, that deal could not have been made because some articles of lesser strategic importance were exported as part of the trade. 2. The amendment goes too far because it completely ignores the question of timing. For instance, the ECA Labor advisers have been doing a magnificent job of aiding European trade unions to combat communist domination. It is nevertheless and unfortunately true that some unions are still so dominated. ECA objects to abandoning this missionary work and being forced to insist that the factories eliminate export business and throw people out of work, which would play into the hands of the communists. This leads to the next point. 3. The amendment goes too far because it does not distinguish between strategic and non-strategic articles and commodities. The sole test, under the amendment, is: May the article or commodity be used in the