Canberra, 5 May 1971

Confidential

Without Submission–Communist China–Strategic Export Controls

The Cabinet took up a discussion of the handling and presentation of its earlier Decision–Decision No. 148 of 4 May 1971.¹

2. Generally the Cabinet was of the view that action to give effect to the relaxation of strategic export controls now agreed upon must be approached step by step with great care, paying regard to security considerations and avoiding any impression of a dramatic change in policy.

3. It therefore decided that the Minister for Trade and Industry should not make any general statement on the matter, but rather should adopt the course of gradually and sensitively making known the arrangements which would now apply in relation to trade with the People's Republic of China. For example, he might provide some part of this information by way of an answer to a question in Parliament and subsequent parts by a vehicle such as public addresses for other purposes which he would be making in the ordinary course from time to time. The Cabinet recognised that it would be desirable within this approach to anticipate somewhat policy statements in these same directions which may be made by the President of the United States.

4. It was noted that Australia would continue to observe the COCOM list.

5. The Cabinet recognised that the Ministers for Trade & Industry and Customs & Excise would need to publish details of goods remaining subject to strategic controls so that Australian businessmen would know the items in respect of which they would be free to seek orders from the P.R.C.

6. The Cabinet also noted that a reserve power over the control of exports would remain with the Department of Trade & Industry and furthermore, that if there were to be an undue build up of trade in goods now removed from restriction or for some other reason, the Minister for Trade & Industry would refer the matter again to the Cabinet.

7. The Cabinet accepted the view that in view of recent developments a senior Trade official from Hong Kong could be authorised to attend the Canton trade fair.

[NAA: A1838, 714/3/2, xviii]

1 See footnote 4, Document 175.