Canberra, 2 May 1967
Confidential
Without Memorandum—Exports to Mainland China and North Korea
The Minister for External Affairs informed the Cabinet of two developments:—
(a) In 1966, exports of steel to mainland China had mounted to about 20,800 tons but there had been a significant increase in these exports in recent months and already in 1967 about 20,500 tons had been exported. These exports represented the sum of individual applications eligible for approval under the present permit system;
(b) A proposal for the export of metallurgical coke to North Korea under long term contract.
2. As to (a), the Cabinet agreed that it could not view with equanimity such a rate of growth of these exports and must look to means of keeping down this level. It decided that it did not wish, at this stage, to vary the procedure under which the Minister for External Affairs considered each request for permission to export on its merits as it arose. It endorsed the Minister’s suggestion that closer scrutiny of the possible end uses of exports might be adopted to curtail the level. The Cabinet also felt there would be merit in an approach to the steel exporters to seek their co-operation in giving effect to the Government’s wishes in the matter and invited the Minister to pursue this.
3. As to (b), the Cabinet agreed that while it was open for individual applications to export to be considered as they came along, it would not give its approval for the exporters to enter into any long term arrangement with North Korean interests.
[NAA: A1838, 714/3/2, xiii]