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Can we do this? I believe we can. We and our allies have the capacity to out-produce the Soviet bloc by a staggering margin. There is no doubt about that. Our capacity to produce has been set in motion and is rapidly getting to the point where its output will be vast and its effect significant.

There is also the critical factor of our will. The future belongs to freedom if free men have the will to make time work on their side. I believe the American people and their allies do have the will, the will to work together when their freedom is threatened.

This is the ultimate source of our faith and our confidence. A free society can call upon profound resources among its people in behalf of a righteous cause.

46. UNITED STATES EMBARGO ACTION AGAINST COMMUNIST CHINA AND NORTH KOREA: Report Submitted by the Deputy United States Representative at the United Nations to the Additional Measures Committee of the United Nations General Assembly, June 15, 1951 (Excerpt) 1

PART I

The controls applied by the United States on shipments to the Chinese Communists and the North Korean authorities are more comprehensive than those called for by Resolution 500 (V)2 and were placed in effect before that Resolution was passed. Exports from the United States of arms, ammunition and implements of war (Annex I) and atomic energy materials (Annex II) to North Korea and to Communist China have not been authorized at any time, and exports of a number of other strategic articles were severely restricted and in some instances embargoed for some time prior to June 1950. Since the end of June 1950, the United States Government has permitted no shipments to North Korea and applied an embargo on shipments to Communist China not only of arms and munitions but also of atomic energy materials, petroleum products, and other items of strategic value included in the United States Positive List. (Annex III.)5

The scope of the economic measures applied against the Chinese Communists by the United States was greatly extended when it became unmistakably clear that they were engaged in large-scale

1 Department of State Bulletin, July 9, 1951, pp. 54-60 (U.N. doc. A/1841, July 12, 1951, pp. 48-52). For introductory comments on the report by Ernest A. Gross, Deputy U.S. Representative to the General Assembly, see ibid., July 9, 1951, p. 54. The Mutual Defense Assistance Control Act of 1951 (Act of Oct. 26, 1951; infra, pp. 3101-3105) also included embargo provisions which became effective Jan. 24, 1952.

2 U.N. General Assembly Res. 500 (V), May 18, 1951; supra, doc. 44.

3 Annexes not printed here. For annex I, see Department of State Bulletin, July 9, 1951, pp. 56-58.

412 Fed. Reg. 1855 and Amendment 14 Fed. Reg. 1156 for List A. See 12 Fed. Reg. 7651 for List B.

5 Positive List of Commodities. See Department of Commerce, Office of International Trade, Comprehensive Export Schedule, Appendix A, Sec. 399.1.

military operations against United Nations forces in Korea. Since December 1950, the United States has not exported any materials whatever to Communist China. Vessels and aircraft documented or registered under United States laws have not been permitted to touch at any Chinese Communist port or area or to carry any cargo destined directly or indirectly for Communist China. Strict control has been exercised over commodities in transit through the United States destined for Communist China. All Communist China and North Korea assets within the United States have been blocked and subjected to stringent controls.

The United States believes that the United States Positive List contains items which would meet the intent of the General Assembly Resolution of May 18. Not all these items are included within the scope of paragraph 1 (A) of the Resolution. Nevertheless, the United States believes that the control of such items furthers the basic purpose of the Resolution.

The scope and detail of the United States Munitions List, the list of atomic energy materials, and the United States Positive List may assist cooperating States in effecting the embargo by providing a basis for that efficient customs administration, control of transit trade, and control over transport of prohibited cargoes which it is the purpose of the Resolution to accomplish. It may also contribute to the working out of such further measures in the field of economic controls as may become appropriate or necessary.

The United States will prevent by all means within its jurisdiction the circumvention of controls on shipments applied by other States under the Resolution and cooperate fully with other States and the Additional Measures Committee in carrying out the purposes of this embargo.

PART II

The following is a summary of the measures taken by the United States to control its trade with the aggressors.

The export of arms, ammunition, and implements of war as defined by Presidential Proclamation 2776, of April 13, 1948, is controlled by the Secretary of State (Annex I). The export of atomic energy materials as defined in the Atomic Energy Act of 1946 is controlled by the United States Atomic Energy Commission (Annex II). Shipments of such materials to Communist China and North Korea have not been authorized at any time. In November 1949, this policy was extended to include Hong Kong and Macao, as possible transshipment points, and only very limited materials for the use of these governments have been licensed since that time.

The export from the United States to foreign destinations of commodities in short supply and of strategic materials is controlled through the Positive List administered by the Department of Commerce under the authority of the Export Control Act of 19492 (Annex III). Commodities which appear on the Positive List are placed there after

1 Act of Aug. 1, 1946; 60 Stat. 755.

2 Act of Feb. 26, 1949; 63 Stat. 7.

determination by the United States Government that they possess sufficient strategic value or are in such critical supply as to justify careful screening of destination and end-use. Such commodities cannot be exported to foreign destinations without validated export licenses.

From June 1950, shortly after the North Korean aggression against the Republic of Korea, until December 1950, the United States Government was applying an embargo over shipments to Communist China of arms and munitions, petroleum products, atomic energy materials, and all other items on the United States Positive List.

Since June 1950, no shipments of any kind have been permitted to go to North Korea, and the subsequent measures outlined below have been applied to North Korea as well as Communist China.

As a precaution, in the light of the Chinese Communist intervention in the Korean struggle, the Department of Commerce issued an order, effective December 3, 1950, subjecting all proposed exports from the United States to the mainland of China or to Hong Kong and Macao (as possible transshipment points) to a screening procedure in order to prevent Communist China from obtaining materials, the receipt of which by Communist China would be contrary to the objectives of the United Nations in Korea. The order revoked all General Licenses for the exportation of any commodity, whether or not included on the Positive List, to Communist China and to Hong Kong and Macao.

On December 7, 1950, an additional Department of Commerce order was issued providing authorization for United States officials to stop shipments loaded under General Licenses if the ships came into United States ports en route. Since that date, accordingly, validated export licenses are required for all commodities intended for the destinations noted above if a vessel, whatever its registry, has not obtained clearance from the final port of departure in the United States for a foreign port or if, after receiving final clearance, the vessel transits the Panama Canal Zone. The order directed that shipments which were not licensed were required to be off-loaded prior to final clearance or proceeding through the Canal Zone. Under Department of Commerce orders effective December 4, and 6, 1950, shipments of all commodities, whether or not on the Positive List, originating in any foreign country moving in transit through the United States or using the facilities of a foreign trade zone or manifested to the United States may not be exported to China, Manchuria, Hong Kong or Macao without a validated export license. The foregoing actions were taken under the authority of the Export Control Act of 1949 (See Annex IV).1

On December 8, 1950, the Department of Commerce, Under Secretary for Transportation, under the authority granted by Section 101 of the Defense Production Act of 1950, issued Transportation Order T-1. This order directed that no person should transport in any ship documented under the laws of the United States or in any

115 Fed. Reg. 4744, 8562-8563, 9140; for excerpts, see Department of State Bulletin, July 9, 1951, pp. 58-59.

aircraft registered under the laws of the United States any commodities at the time on the Positive List, or any article on the Munitions List, or any article controlled for export under the Atomic Energy Act of 1946, to China, Manchuria, Hong Kong or Macao; and no person should discharge from any such ship or aircraft any such commodity at these ports or areas, or at any other ports in transit to such destinations, without a validated export license, or unless authorization had been obtained from the Under Secretary of Commerce for Transportation. The prohibition applied to the ship or aircraft owner, master or any other officer or employee of the owner (Annex V).1

On December 16, 1950, the Department of State announced that the United States was taking measures to place under control all Chinese Communist assets within United States jurisdiction and was issuing regulations to prohibit ships of United States registry from calling at Chinese Communist ports until further notice.2 These actions were necessary to accomplish the effective control of the economic relationships between the United States and Communist China-North Korea envisaged by the December 3 requirement that no exports would be permitted to these destinations from the United States without validated export licenses (Annex VI).

The Department of the Treasury accomplished this financial control by action under the Foreign Assets Regulations (pursuant to the first War Powers Act of 1941 and the Trading With the Enemy Act of October 6, 1917, as amended) blocking the United States assets of residents of China and North Korea. The blocking regulations forbade all transactions involving bank accounts and United States assets of the Communist Chinese and the North Korean regimes and their nationals unless Treasury approval was obtained. A series of blanket authorizations were included in the regulations, protecting individual Chinese and Koreans in the United States and abroad, where these persons were not acting on behalf of the North Korean or Chinese Communist regimes (Annex VII).3

The Department of Commerce accomplished its shipping controls by the issuance of Transportation Order T-2, under the authority of Section 101 of the Defense Production Act of 1950. This order provided, in substance, that no person should take any ship or aircraft documented or registered under the laws of the United States to any Chinese Communist port or area; that no person should transport, in any ship or aircraft documented or registered under the laws of the United States, cargo of any kind to Communist ports or to any other places under the control of the Chinese Communists; that no person should take on board any such ship or aircraft any cargo if he knows or has reason to believe that it is destined, directly or indirectly, for Communist China; and that no person should discharge from any such ship or aircraft any such cargo so destined at any place other than the port where the cargo was loaded, or within territory under United

1 Transportation Order T-1; 15 Fed. Reg. 8777. Interpretation, ibid., 9145. Text of Transportation Order T-1 also in Department of State Bulletin, July 9, 1951, p. 59.

? See Department of State statement of Dec. 16, 1950; supra, doc. 33. 3 Foreign Assets Control Regulations; 15 Fed. Reg. 9040.

415900-57-vol. 2- -62

States jurisdiction, or in Japan. This order was made applicable to the owner, master, or any other officer, employee or agent of the owner of the ship or aircraft. (Annex VIII).1

47. APPEAL FOR ADDITIONAL GROUND FORCES IN KOREA: Communication From the Unified Command to the SecretaryGeneral of the United Nations, June 21, 1951 2

The acting representative of the United States to the United Nations presents his compliments to the Secretary-General of the United Nations and has the honor to address a communication on behalf of the United States, acting in its capacity as the Unified Command, concerning the need for additional ground troops from Member Governments of the United Nations for the collective effort in Korea.

The Unified Command has conducted and is now conducting extensive bilateral conversations in connection with this problem with various Member States and, in particular, is conducting conversations with States which have already contributed armed forces.

In order to further efforts of the Unified Command in this respect, the Secretary-General is requested to send communications on behalf of the Unified Command to Member Governments which previously gave a favorable reply either to the Security Council's resolution of June 25, 1950, or to its resolution of June 27, 1950, but which have not yet contributed armed forces for the collective effort in Korea, advising the aforementioned Members of the need for further ground assistance in Korea. There is a real need for additional forces from Member States in the light of massive Chinese Communist concentrations in the area and of their continuing aggression. The Unified Command therefore requests the Secretary-General in his communication to appeal to Member Governments which have given their support to the Security Council resolutions but have not made contributions of armed forces that they give immediate consideration to making an initial contribution of ground forces of substantial character, consonant with their respective capabilities and other responsibilities.

Further, it is requested that Member Governments be asked to notify the Secretary-General of offers in general terms, detailed arrangements to be made by the respective Member Governments. and the Unified Command.

1 Transportation Order T-2; 15 Fed. Reg. 9063. Text also in Department of State Bulletin, July 9, 1951, p. 60.

2 Department of State Bulletin, July 9, 1951, p. 53.

3 Supra, pp. 2538-2539.

Supra, pp. 2540-2541.

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