Bo NE ° TOP SECRET want copper, he couldn't think of anything that would be better for the United States now than to sell it to them. He had been under very heavy pressure by U. S. copper producers. In general, the President added, he did not believe in these restrictive trade practices except on items whose technology was known to the United States but not known to the Soviet bloc. He would like to see these lists taken up in the negotiations item by item for a careful scrutiny. The President predicted that the Free World would be stronger if we in the United States were more sensible about trade practices. The President cited Japan. The Japanese desired to manufacture stainless steel. Our manufacturers of stainless steel wanted the President to put on a protective tariff. If he did so, what would the Japanese do? In summing up the discussion of this item, General Cutler said that he would try to write out in general terms the desired policy guidance for the U. S. negotiators. He would submit this proposed policy guidance to the Departments of State, Defense and Commerce before showing the guidance to the President. General Cutler then outlined what he believed to be the consensus of the meeting as to the desirable U. S. position in the COCOM negotiations. Thereafter General Cutler suggested to the President that it would be desirable for the President to ask the CFEP to review our current U. 8. Economic Defense Policy (NSC 5704/3) in the light of the changes which were now contemplated in our COCOM position with respect to the level of mitilateral trade controls against the Sino-Soviet bloc. The President reiterated that he wanted a serutiny of the lists item by item. General Cutler said that this would be done, and that the three Secretaries (State, Defense and Commerce) would agree on which items were to be decontrolled. Such a process, however, would be better accomplished in the CFEP than in the National Security Council. Mr. Allen Dulles said that the Central Intelligence Agency= _ ought to _be brought into this scrutiny of the items on the lists,':::: i ee ee eo 2 ee ae OES _ RERRORGEED« me Eat t ee de = ” oT i pie \ | 3, 3AE SS gt on= Fer ceree mh bea After consulting with Under Secretary Dillon, who sat behind him at the meeting, Secretary Dulles pointed out that there was very little time to reach agreement on the U. 8. position, and he added that he thought the technique of having all three of the Secretarles agree on the items to be decontrolled, before they were presented in the COCOM negotiations, would not be effective. fa, . x AD OP = RP RHR. ONIGH,F. SISROMER£2 1 aes Wal a 7 Sil aoe . ‘ en * :. : r Ce ee He believed, therefore, that the decision as to the actual items which we would agree to decontrol should be determined by the Secretary of State in consultation with the Secretaries of Defense and Commerce, together with the advice of the Director of Central Intelligence, -7- ied? UF Eo 1 hp ASS FEE bpSone