Cmnermre caneey wewwiady sn Bale eLOd to represcnt the five mejor issues confronting the policy set fort AX the conclusion of Governor Stassen's report, the President stated that while iv hed been very informative, iv seem2d to hin that Governor Stecsen hed actually omitted ciscussion of raat was by all odds the most impcrtant issue as regards this tolicy, nomely, whith side was bencfittine most from east-west trade--the free vorld or the Soviet bisoc? The President expressed the opinion that the distinction betveen surctesic and non-surategic materials no lonver made very much sense in tne kind of world in which wae live end in the Icind of wars in which we were involved. He went on to roar that the varicus items included in east-west trade and its gen- . excl level of a few millions of dollars, did now strike him as hav- ing any great importanct cr simnificanes. He could not refrain from svating that he thought it livtle Iess than crasy to waste as muca talenton this vroblem es was represented by the individuals in this room who vere devoting themselves to the problem. Ths President did aait, however, that of course there was the law of the lend ( Act). . p, Be SS he Fresidens svsted that in his viev the very & mode=n G@ivicmat was trade. if we congan allies to the point wh=ch we seemed prevarcd 0 ao wider this icy,w we might very well confront a sltuation of virtunl isolation. In short, the President seid, he simply eculd not sgree with the seneral philosophy underlying NSC 3104/2 as iv b3¢en tre presse iv Ead kad ben - aa fing. ved in Governor Stes esen's bricti immessible to win any war with such severe restrictio ms It would be placed on our oilies, and esvecialiy 2 cold war. The=President very forcefully insisted, for examble, that the Danes had got to have Polish coal. Cn tne subject of coal he went on to say that if European eculd be increased by 503, "we'd be in the clover." vroduction Coal was tne secret of much of the difficuity faced by tae free nations in their Gealings with the Soviet orbit. Tn response to the President's statement, Governor Staessen stated a eacn cr the countries involved in trede with the Sovlet Union wi the framework of HSC 101,/2, was absolutely convinced - that ts 3ceusine wne best of the pereein is-a-vis the Sovict blee. Each of these nations was likewise convinced that continuation of its present trade with the Soviet thes was vital to the toin- tenance oF economic health, and seid The President .exprassed no surprise atv these assertions, that he himself would not object if the United States could adventazeously purchsse Soviet mengenese. % Was pointed out, in response to e question fro: the President, that the very tiny figure for United Stetes impcrts Fron the Soviet Union covered ceviar, furs, and sucs luxury ites. PRO we Reeeven em me ee