File No. 763.72112/2859
Memorandum of the Acting Secretary of State
The British Ambassador called at my request. I told him that the matter of the black list had been discussed in Cabinet and while the President had expressed no opinion, he was deeply concerned and some members of the Cabinet seemed to feel that it might be necessary for this Government to take some decided steps to protect its interests. I told him I felt something should be done right away to relieve the situation. If his Government would give out a statement assuring the public that it had no intention of interfering with neutral firms and that it had no intention of interfering with existing contracts, it would have a happy effect; that this in no way would interfere with our taking up the question of principle.
He cited what had been done in the Civil War. He read the proclamation and the act of Congress. I pointed out that blacklisting went much farther than anything of this kind in the Civil War. He said he discussed the matter with the French Ambassador and they felt that the publication had been unfortunate. He pointed out that there were many firms under suspicion which had not been blacklisted, although they had been actually trading with the enemy, such as Guaranty Trust Company and Kunn Loeb and Company. I pointed out that they were practically destroying our trade in South America. He said this was not their intention as they wanted to help build up our trade in order to destroy German trade, and that the question would be taken up sympathetically.