File No. 763.72112/3058

The Acting Secretary of State to the Ambassador in Great Britain ( Page )

[Telegram]

3962. Your 5021, October 14. As English black list note is on its way, do not think it is desirable to make any suggestion of compromise at this time. Do not believe this Government could at this time reverse rule laid down by our courts and by British courts and supported by the United States-British Claims Commission of 1853 and 1910, and other international commissions.

Regret that British note is apparently entirely unsatisfactory. Have had two informal talks with Sir Richard Crawford on particular [Page 461] cases on black list. He thinks several names can be removed at once and I have urged prompt action. I pointed out there were two classes of cases in which British Government could not justify itself on principle: (1) where British are punishing strictly American firms, who had attempted to break blockade and trade with enemy as in McNear and Kempner cases, by extending black list to innocent lines of trade; and (2) where British place on statutory list names of American corporations created before the war, because of German ownership of stock, as in International Hide and Skin Company and National Zinc Company, in which cases there is no evidence of any trading with enemy or of corporations being formed to secure protection of United States.

POLK