ATOMIC ENERGY


597


400.118/12-2350: Circular airgram
      The Secretary of State to Certain Diplomatic Missions 1

SECRET                  WASHINGTON, December 23, 1950--8:15 a. m.
  Reference is made to Dept's circular airgrams Mar 10, 1950,
9:45 a. rM.2 and Aug 16, 1948, 12:50 p. mn.3 re establishment of export
controls over atomic energy items.
  The increasingly critical international situation arising from the
Korean war makes it imperative that all practicable measures betaken
to ensure against diversion to Soviet-dominated countries of materials
and equipment which would contribute to the Soviet military potential.
The President's announcement of Sept 19494 re an atomic explosion
in the USSR emphasizes the particular significance of items having
direct or indirect relation to atomic energy development.
  Experience over the last two years has indicated that control of
only those items being manufactured or exported from a country is
not adequate to achieve the objective of complete denial of all items
on AEC lists to the Soviets. Many cases have come to light of trans-
shipment of materials through Western European countries to the
USSR or its satellites which might ,have been prevented had adequate
transshipment inspection and licensing been in practice on the coun-
tries concerned. At this time several countries have instituted broad
controls over all AEC items under procedures similar to thosein effect
in US. Among the countries which have taken this step are UK and
Canada. The French Govt is expected shortly to publish the items on
AEC lists for control purposes. Attempts are now being made to
induce the Swiss Govt to apply broad controls over all AEC items,
including provisions for screening shipments through Swiss free ports.
In view of the lack ,of transshipment controls, AEC has been forced
to a policy of withholding action on export license applications cover-
ing items on AEC Lists A and B destined for Switzerland until Swiss
Govt takes satisfactory action in this respect.
   Dept and AEC staff are of the view that all Govts having signifi-
cant trade in items on AEC lists should now broaden the scope of
their controls in order to achieve consistent practices in all friendly
countries at the level now established by US, UK and Canadian
controls. In order to evaluate the present status and required further
action, Dept requests each of the Missions listed for action at the close

  'Sent for action to: Brussels, The Hague, Stockholm, Oslo, Rome, Copenhagen,
Bern, Paris, Vienna, Trieste; for information to: London, Frankfort, Berlin,
Luxembourg, Moscow, Warsaw, Prague, Budapest, Bucharest, Helsinki.
  Not printed.
  For text, see Foreign Relations, 1948, vol. i, Part 2, p. 739.
  For text, see Department of State Bulletin, October 3, 1949, p. 487.
      496-362-77- 39