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TOP SECRET

. (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 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, and should submit to the National Security Council at the Rh