Foreign Relations of the United States, 1955–1957, China, Volume II

1. Memorandum From the Secretary of State to the Executive Secretary of the National Security Council (Lay)²

Washington, January 4, 1955.

SUBJECT

• Current U.S. Policy Toward the Far East³

With reference to your memorandum of December 22⁴ and in accordance with NSC Action 1292–c, this is to inform you that I approve the language for paragraph 5–g attached to the memorandum with the addition of an amendment proposed by Defense. I am transmitting herewith the recommended language for paragraph 5–g incorporating this amendment (Tab A).

In accordance with NSC Action 1292–d and 1292–e, I am also transmitting the recommended language for paragraph 7–c (Tab B) of NSC 5429/5. Consultations have been held with the representative of the Secretary of Commerce, who agreed with this language.

John Foster Dulles

[Tab A]

PARAGRAPH 5–G

(1) Issue a directive to its armed forces that, in the event of unprovoked Communist armed attack against U.S. military or non-military personnel, aircraft, or vessels outside Communist territory, U.S. forces in the area will take against the Communist attacking force during the course of the attack immediate and aggressive protective measures, including if necessary and feasible hot pursuit of the Communist attacking force into hostile airspace or waters.

(2) In addition to the action directed in (1) above, and as constitutionally authorized and specifically approved by the President, take such additional punitive action as may be necessary and appropriate.

[Tab B]

PARAGRAPH 7–C

(1) Maintain the current level of United States export, import, and financial controls on trade with Communist China. Without derogating from the basic principles of these controls, administer them in such a manner so as to endeavor not to lessen the active cooperation in the multilateral control program of other Free World countries.

(2) Urge other Free World countries to maintain the current level of export controls on trade with Communist China. In aid of this effort, the United States should, without frustrating the multilateral embargo program, endeavor to handle questions of routine exceptions in such manner as to preserve and foster the willingness of other countries to retain the present level of controls.

(3) Whenever it may be determined by the Secretary of State that further effort to maintain the current multilaterally agreed level of export controls would be seriously divisive among our allies or lead nations needing trade with Communist China toward an accommodation with the Soviet bloc, the Secretary should report such determination promptly to the Council for consideration of appropriate action.

(4) In the meanwhile, the Council on Foreign Economic Policy should study, on an urgent basis, all aspects of U.S. economic defense policy applicable to trade with the Communist bloc (including Communist China), taking into account in such study, among other things, the matters set forth in Annex B,⁵ and should submit to the National Security Council at the earliest practicable date comprehensive and detailed recommendations for such revisions in such policy as may be required by national security interests, both long and short range.

2. Source: Department of State, S/S–NSC Files: Lot 63 D 351, NSC 5429 Series. Top Secret.
3. U.S. policy toward the Far East had been the subject of NSC deliberations on several occasions between August and December 1954. On December 21, 1954, in NSC Action No. 1292, the Council (a) discussed NSC 5429/4, “Current U.S. Policy Toward the Far East,” December 10, 1954; (b) agreed on several amendments to NSC 5429/4; (c) deferred action on paragraph 5–g pending further consideration by the Secretary of State, in consultation with the Secretary of Defense, until the next NSC meeting on January 5, 1955; (d) deferred action on paragraph 7–c pending further consideration by the Secretary of State, in consultation with the Secretary of Commerce, until the January 5 meeting; and (e) requested the Council on Foreign Economic Policy to undertake a study of U.S. economic defense policy applicable to trade with the Communist bloc, including Communist China. NSC 5429/4, as amended by the Council but without paragraphs 5–g and 7–c, was approved by the President on December 22 and circulated to NSC members as NSC 5429/5, “Current U.S. Policy Toward the Far East,” December 22, 1954. For documentation concerning the NSC 5429 series see Foreign Relations, 1952–1954, vol. xii, Part 1, pp. 696 ff.
4. A memorandum of December 22, 1954 from Lay informed Dulles of NSC Action No. 1292–c and enclosed a draft paragraph 5–g, reflecting the discussion at the December 21 NSC meeting. The draft paragraph was identical with that in Tab A below, except that the words “and feasible” were not included. A memorandum of January 3, 1955, from Robertson to Dulles, to which Lay’s memorandum is attached, states that the Department of Defense recommended inserting the words “and feasible.” (Department of State, S/P–NSC Files: Lot 62 D 1, Far East, U.S. Policy Towards (NSC 5429 Series))
5. For text of Annex B to NSC 5429/5, “Matters To Be Taken Into Account in a Study of Economic Defense Policy Applicable to Trade With the Communist Bloc,” see Foreign Relations, 1952–1954, vol. xii, Part 1, p. 1068.