File No. 763.72112/2860

Memorandum, of the Acting Secretary of State

The British Ambassador called and showed me a despatch from his Government as to the black list. He said it was not their intention in any way to interfere with neutrals trading with neutrals, or neutrals trading with Germans, and that the fear that American firms will be blacklisted because they trade with blacklisted firms was, in his opinion, unfounded. He showed me a despatch, the substance of which was: (1) That in general there is no intention that the black list should affect existing contracts except in certain specific cases which will be explained. (2) The act is not directed against neutrals which prevent British capital and credit being used for the support of the enemy. (3) Specific cases will be taken up and the British Government will welcome any statement from individuals in support of the request that they be removed from the black list.

He added that it was not the intention to blacklist any firm because it traded with Germans in South America. I pointed out that the black list amounted to a boycott and logically no Englishman could trade with any corporation in which there was German money. I knew the British Government was trading with a number of firms of British capital and it should be made very clear that if the British Government intended to merely blacklist firms which were dummies for German concerns in Germany, that should be made very clear. I pointed out the fact that Morris and Company feared to trade with a firm on the black list because it might put them on the black list. He drafted a telegram on that subject. I also pointed out that certain concerns, American corporations with alleged German interests, were unable to collect money due them in Canada. I pointed out that this would hopelessly destroy our credit arrangements if such a policy were carried out. He drew up a message on that subject.

In neither case did I express any opinion as to the form or the advisability of sending a telegram. He said he would give a statement out to the papers that I was authorized to state the result of our interview, and he also told me that he would shortly give out a statement.

F[rank] L. P[olk]