RONORTE DfAAAtecttetide Q GEO skort PUES DYER bo ; Xa a : we . pap Ok, exclusive of AEC and mmitions items; (2) establishment of a require- ment for additional justification on 34 of the remaining List I items; (3) elimination of Lists II and IIT entirely. Mr. Cutler said he un- derstood the U. K. believed it was no longer worth while through trade controls to attempt to slow down expansion of the Soviet undustrial base. Mr. Cutler said the State Department had advised the Secretary ef.State of this development. Secretary Herter said the U. K. proposals were likely to lead to very serious differences between the United States and the United Kingdom. He did not know to what extent the U. K. had communicated its views to other governments, but in any case there appeared to be in the making a plot to under-cut COCOM and leave the United States holding the bag. This was e@ serious situation striking at the concept of US-UK interdependence. Mr. Cutler said he had addressed memoranda on this subject . to Mr. Randall and to the Secretary of Commerce. (A copy of Mr. Cut‘ler's letter is filed in the minutes of the meeting, and another is attached to this memorandun. ) - Both Mr. Walter Williams (Commerce) and General Twining said they had not previously heard of the British proposals. Secretary Herter remarked that the lure of Soviet trade was proving attractive and the Soviets were pushing their trade offers hard. The National Security Council: Noted an oral report by the Special Assistant to the President for National Security Affairs that it was expected the United Kingdom would propose at the next COCOM meeting extensive revisions of the COCOM multilateral trade controls. (un. UW MARION W. BOGGS Director Nsc Secretariat 1

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