608 Foreign Relations, 1958-1960, Volume IX



    Would agree "National Interest" trade cases not tied any specific
termination date for present although would wish reconsider when
Germans decide what happens IZT January 1. Should be agreed "Na-
tional Interest" invoked in general only to continue trade at present
lev-
els not increase.
    Would agree TTD's and visas granted for genuine trade mission re-
placements with as much administrative delay as possible in order not
facilitate replacements, but no TTD's or visas for additional trade mis-
sion personnel.
    Cannot agree "administrative convenience" should dictate validity
period of six months for TTD's and visas. Would propose one month
subject monthly renewal but not guaranteed. Would as final concession
settle for three month validity.
    Believe this should prove acceptable to British as should not affect
trade at all, much less constitute economic countermeasure.
    We have incidentally seen report indicating London and Paris busi-
nessmen will have nothing to do with trade mission personnel prefer-
ring to handle transactions directly with East German trade partners.
    Agree clarification by German NATO representative of position re
IZT indispensable next step. Necessary in order deal with Spaak's con-
tention they may have gone too far too fast in direction economic block-
ade and British contention they have not taken lead in moving toward
economic countermeasures. Obviously Germans must inform NAC
whether can or cannot continue interzonal trade in 1961 in absence new
agreement. In this connection see Bonn's 529 and 531 conclusion that
trade can continue and German confirmation. Also see Berlin's 255.3
    Department agrees NATO should be furnished report contained
Bonn's 531 re Bonn quadripartite study economic countermeasures.
    We know of no US commitment not to urge implementation of eco-
nomic countermeasures. Also in agreeing include trade category in TTD
ban UK did not make clear they intended include broad commercial in-
terests in "National Interest" category nor that they intended
exempt
from ban East Germans already abroad.
    Quadripartite study economic countermeasures should be expe-
dited so that if we cannot convince Allies to go along with measures in
trade field at this time we will at least be prepared react immediately
and concertedly with selective restrictions of increasing severity (but
not necessarily exactly in kind) when next harassment comes.



    3Dated October 8, telegram 255 from Berlin outlined the shipments and
deliveries
that would be carried out between East and West Germany now that the interzonal
trade
agreement had been denounced. (Department of State, Central Files, 662A.62B41/10-
860)