Memorandum, Statement Concerning the Kem Amendment, with Related Material
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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 agree-
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ment, has just delivered to the Army Department of a Western
because food
European country a complete cartridge factory capable of turn-
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ing out 60,000 cartridges for the army in an 8 hour day. Under
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49.
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
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