File No. 103.96/1456c

The Secretary of State to the Consul at Archangel (Cole)


[From War Trade Board:]

2. In conference with War Industries Board it developed to-day that shipments of flax per Somali, Nagoya, Aideus, and Ascutney totaling about 5,000 tons represent our full requirements Russian flax for next year. We also require and expect to receive 1,000 tons and some tow from Canada; also 2,500 tons Irish flax of better quality which we need to meet our absolute necessities.

Therefore, we do not need 2,440 tons Archangel flax which we are advised by cable from London was allotted by Great Britain October 17 for shipment to United States and are not prepared grant license to import it if it is British owned. Therefore, if British owned, we suggest this 2,440 tons be discharged in England. If, however, there is available Russian-owned flax, the importation of which into the United States would result in the establishment here of Russian credit, which would be available, under our direction, for the purchase of American merchandise to be shipped to Russia, then we would be willing to grant licenses to import the Russian-owned flax as evidence of our desire to assist Russia.