Memorandum from Mr. Cronk and Mr. McCall to Mr. McClurkin and Mr. White

HH STANDARD FORM NO. 64 SECRET SECURITY INFORMATION Office Memorandum UNITED STATES GOVERNMENT NA - Mr. McClurkin TO : Mr. White DATE: March 10, 1952. FROM : NA - Mr. Cronk Drab Mr. McCall SUBJECT: Revised United States Licensing Policy for Exports to Hong Kong and Macao. I. The "interim licensing policy," under which we have operated since 9 December 1950, provides for a case by case check on all export applications to Hong Kong and Macao. Under this policy, exports are approved only when the licensing officers are satisfied that the export is needed in Hong Kong for the civilian population or for a small amount of trade with non-communist destinations. Anything that might be considered strategic is generally licensed only when a strong need for it has been demonstrated for reasons of public health, safety, or "welfare". II. The new policy, which was approved by the NSC on February 7, 1952, prescribes different treatments for exports of different strategic significance, and distinguishes between exports to Hong Kong and exports to Macao. The following policy has been approved for United States exports to Hong Kong: A. International List I items are licensed only to meet minimum short term local requirements or for resale to non-Communist areas provided that there is no excessive stockpiling, important industrial expansion, or other questionable security risk involved. The Hong Kong Government embargoes all exports of International List I items to Communist China and North Korea. B. Other items on the US security lists are licensed for requirements similar to those in II-A above when: 1. Hong Kong embargoes the export of identical items to Communist China or North Korea (The Hong Kong embargo covers all items on Inter- national List II, except tin plate required in Communist China to pack food for shipment to the UK, 23 items of International List III, and 33 additional items not on any international list.) or, 2. When the licensing of these items to Hong Kong would give a net security advantage to the U.S. 3. These items would be denied where identical Bureau of items, regardless of source, are used in Hong FAR EASTERN AFFAIRS Kong as capital equipment or raw material to : : 1952 produce any item being exported to Commie China, etc. in significant quantities SECRETARY Department of State C. SECRET SECURITY INFORMATION