Reference my WA-3485 of December 23rd. Export controls to Eastern Europe.

1. Willis Armstrong Deputy Chief of the Economic Resources and Security Policy Staff of the State Department met with English and Towe at the State Department today to discuss the January 9th meeting in Paris of the ad hoc group and the question of our participation.

2. Armstrong stated that the United States Embassy in Paris had approached the French suggesting that they seek the concurrence of the other participants in the ad hoc group to Canadian membership. Instructions had also been sent to the United States missions in the United Kingdom, France, Italy, the Netherlands, Belgium, Denmark and Norway that they ask those Governments to agree to our participation. We expressed appreciation for the United States efforts on our behalf and said that if a timely invitation were forthcoming from the French (on behalf of the other participants) we would be prepared to participate in the January 9th meeting as a full member. Armstrong suggested that our Embassy in Paris might discuss the problem with the United States and British Embassies there with a view to hastening the invitation from the French. (Armstrong had just sent a telegram to the United States Embassy in Paris informing them that the Canadian Embassy would probably be in touch with them and with the British Embassy). Armstrong said he hoped that we would ask the British to approach the French authorities giving support to Canadian participation in the ad hoc body.

3. With respect to the agenda Armstrong pointed out that in the previous meeting, the United States had secured the agreement of the other participants to the imposition of embargoes on 126 items of the IA list. They hoped that at this meeting other items might be placed in the IA category or as an alternative, placed under quantitative restrictions. The January 91h meeting would also consider in some detail the procedures for 1B items and the problems of transshipment. Armstrong said that now the ad hoc body had been established the United States did not intend to add to or remove from their lists any further items until all the other participants agreed to similar restrictions.

4. With respect to 1B items, Armstrong admitted that quantitative restrictions were extremely difficult to impose. He said that the United States authorities were convinced that such restrictions should be imposed by Governments themselves and not repeat not through industrial agreements. He had in mind particularly the creation of cartel arrangements under the guise of national or international security.

5. Armstrong also outlined the preliminary United States views on the organization of the ad hoc group. He said that the plenary session should be composed of fairly senior representatives meeting perhaps quarterly. He said there might also be an Executive Committee meeting weekly and composed of representatives available in Paris. (We pointed out that the use of the word "executive" might be an unfortunate choice as the group he had in mind would be concerned mainly with the collation of statistics and exchange of information. We suggested that the term "Standing Committee" might be a better choice. Armstrong agreed.) In addition to the plenary organization and the Executive or Standing Committee, Armstrong thought there might be sub groups dealing with IA and 1B lists and trans-shipment problems. The membership of these special or working groups would be kept to a minimum and it would probably be unnecessary to have all the participants represented on the sub groups.

6. Armstrong said that the choice of Harvey Alphand as Chairman of the ad hoc group had not been completely satisfactory and the United States hoped that the Chairman of the Executive or Standing Committee would be given to Dorlandi of the Italian Foreign Office.

7. When queried as to who would be representing Canada at the January 9th meeting (if Canada were invited) we said that no definite decision had been reached as yet but that Mr. Bull would probably attend. Armstrong agreed that Bull would be an excellent choice and suggested that Bull might wish to get in touch with him in Paris on January 6th or 7th for preliminary discussions.

8. We hope to receive further information on the United States views on the items on the agenda for the January 9th meeting early next week. In the meantime you might consider it appropriate to suggest to the United Kingdom authorities that they approach the French as suggested in my paragraph 2 above. You might also wish to have our Embassy in Paris discuss the problems with the United Embassy there.