File No. 763.72112A/685
The Secretary of State to the War Trade Board
Gentlemen: As the result of a conference between Mr. Stabler and Mr. Lay of the Latin American Division of the State Department and Mr. Paul Fuller of the War Trade Intelligence, the following policy was recommended in regard to the enemy trading laws in Brazil, Cuba, and Panama, the three Latin American countries at war with the German Government:
- 1.
- No new names to be put on list without consultation with the diplomatic representatives of the three countries.
- 2.
- If any of the three Governments ask officially that a name be taken off the list and are willing to take all responsibility for future action of listed persons and will give sufficient guarantees to that effect, name to be taken off list, on understanding that this action is contingent upon the person’s future behavior, and if Governments of Great Britain and France concur.
The Department has felt for some time that some distinction should be made by the War Trade Board, in matters concerning the enemy trading list, between those Latin American countries which had declared war against Germany and those which had only broken off diplomatic relations or still remained neutral.
As a matter of policy this is evident for the reason that the countries in the first category consider, with a certain amount of justice, that more favorable treatment should be accorded to them than to the others, on account of their attitude.
There is without doubt a feeling in all of the countries which have aligned themselves with the United States that discrimination in their favor, which they expected as a result of their action, is not forthcoming, and they are asking themselves if “the game is worth the candle.” If this Government is not willing to deal with the questions in the broadest and most liberal spirit, the United States will find itself in the position of having made enemies of those countries which have come out before the world as its friends, more bitter enemies even than those countries which have not shown a desire to give it support.
For these reasons the Department of State recommends the adoption in Brazil, Cuba, and Panama [of] the policy outlined above.
I have [etc.]
Second Assistant Secretary