Foreign Relations of the United States, 1951, National Security Affairs; Foreign Economic Policy, Volume I

S/P–NSC Files, Lot 61 D 167, Public Law 45–NSC Determinations

Memorandum by the Special Assistant to the Counselor of the Department of State (Walmsley) to the Counselor (Bohlen)

top secret

Washington, September 11, 1951.

Subject: Kem Amendment Determinations Scheduled for the Council on September 12

The following notes may be helpful to you in connection with the Senior Staff meeting this afternoon preparatory to the Council meeting tomorrow.¹

Mr. Gleason told me this morning that the President had expressed a wish for some sort of legal views from a permanent agency to help him in his consideration of the time factor involved in the NSC determinations under the Kem Amendment. The ECA lawyers, Gleason said, have been busy in this connection but we have not. I have put this matter up to Linder and Vernon,² and have called Cardozo of L/E in the hope of having something ready either for this afternoon or in time for briefing the Under Secretary tomorrow morning.

Herewith are the results of a hurried canvass of the Senior Staff:

1. Mitchell³ will possibly make some comment about the general attitude of the Executive Branch, which he deplores, toward the Kem Amendment provisions; that is, that we have seized upon the negative provision of exceptions in all cases whereas the legislation is of a positive nature. I doubt however that this will lead him to making any constructive contribution to our consideration of the problem. Mitchell may also ask for some information regarding the magnitude of U.S. assistance to Germany and the NATO countries in fiscal ’51 and that projected or requested of Congress in fiscal ’52, to round out the rather general statements now appearing in the draft determinations on Germany and NATO countries. I should have some figures for you to give Mitchell if he asks for them.

2. Glendinning⁴ of Treasury says that he will be pretty much guided by the State Department views. He believes that the matter of the timing is one which the President will have to decide. He personally favored the broadest interpretation of the time factor as a practical matter, but confesses that he is no judge of Congressional temper and reactions.

3. General Roberts⁵ of Mr. Harriman’s office seems impressed by the reports of their East-West Trade Committee man who has been in touch with Battle, and who reports that Battle is worried over the effects on his bill if we give the opposition the chance of accusing us of never having in good faith endeavored to carry out the Kem Amendment. Roberts’ position will probably be that we should continue the exercises of making determinations as heretofore without attracting attention to the NATO paper by trying to keep it classified. He believes that this is a practical matter which the President will have to decide for himself and that we should not try to prejudge for him.

4. I have been unable to reach the Defense Senior Member and Alternate Member but I surmise that Defense will stoutly support maintenance of the classification of the NATO paper in case it should be forwarded to the Committees of Congress at this time. I should not be surprised if the Defense Representative injects the Polish-Danish matter. As I believe you know, Mr. Lovett ten days ago expressed some strong views to Mr. Matthews on the validity of the statements and evidence on which the Danish matter was judged, and whereas there has not been a request on the part of Defense for Council reexamination of the case, it may well be that Defense will use the Senior Staff to re-express its reservations and distaste.

5. 5. Mr. Jacobus⁶ of NSRB had nothing to contribute when I called him.

6. The JCS have no particular concern with the Kem Amendment determinations.

Walter N. Walmsley, Jr.

1. No record of the NSC Senior Staff meeting on September 11 was found in Department of State files; for information concerning the National Security Council meeting of September 12, during which NSC Determinations 18 and 19 were approved along with report on Sweden’s trade with the Soviet bloc, see the report by the National Security Council, October 23, p. 1203.
2. Raymond Vernon of the Office of Economic Defense and Trade Policy.
3. J. Murray Mitchell, Assistant to the Director of the Office of Defense Mobilization.
4. Charles D. Glendinning.
5. Brig. Gen. Frank N. Roberts.
6. Gilbert C. Jacobus.