File No. 600.119/471

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

[Telegram]

8098. For your information and for War Trade Board from Sheldon:

The British War Trade Department and French and Italian representatives have received word from the Scandinavian countries that owing to existing Allied embargo, German agents are actively soliciting trade in a number of commodities in which Allied interests in the past had predominated. With a view of keeping part of this trade and of helping exchange in these countries, the War Trade Department is recommending to the Foreign Office that the embargo be relaxed—always subject, however, to license, both as regards quantities [Page 937] and consignees—on the following commodities, which are considered of no importance from a military standpoint. Please signify whether you would agree to this proposal and whether you would like to add any commodities affecting American trade. Herewith follows list:

Report of Scandinavian and Holland Conference Held at the War Trade Department on 27th December, 1917, to Consider the Desirability from the Point of View of Allied Interests of Making Exceptions from the Present General Suspension of Exports to Scandinavia and Holland

Present: Lord Emmott, Chairman, Sir N. J. Highmore, M. Charpentier, Captain Giannini, last two Allied representatives; Mr. L. P. Sheldon, United States representative; Mr. A. McFayden, Treasury; Mr. H. H. Piggott, Ministry of Munitions; Mr. Kidston, Mr. Bland, and Mr. Gilmour, Foreign Office; Mr. F. Gossling, Board of Trade; Lieut. Commander Arnold Foster, K.N.V.R., Restriction of Enemy Supplies Department; Honorable Cecil Farrer, War Trade Statistical Department; Sir A. King, Mr. G. W. Bailey, Mr. T. A. Braddock, War Trade Department.

Lord Emmott, in opening the discussion, mentioned that the policy of the general suspension of exports to Scandinavia and Holland has now been in force for nearly three months. He pointed out that Germany was taking advantage of the embargo and was said by our Embassies to be exporting considerable quantities of goods of various descriptions to all the countries concerned. There could be no doubt that Germany only permitted export on quid pro quo basis and it followed that the general suspension of exports from Allied countries was a positive advantage to the enemy. He emphasized the fact that His Majesty’s representatives in Scandinavia had recommended the resumption of exports of goods of the descriptions which those countries were at present importing from enemy countries. He also recommended that the export of articles of luxury should be continued and he thought consideration should be given to the question of allowing the export of goods not of any military importance, the manufacturers of which in Allied countries are suffering through the loss of the markets of Scandinavia and Holland.

Lists obtained from His Majesty’s representatives in Scandinavia and Holland of goods which are being imported from enemy countries were then examined in detail and after discussion it was decided to recommend that the following goods should be exempted from the present general suspension:

Wines; films in exchange foot per foot of films of similar manufacture; phonographic records; pianos; made-up articles of clothing (on condition that careful control is exercised over articles composed wholly or partly of wool or cotton), straw hats, felt hats, trimmed ready for wear; machinery, spare or replacement parts (provided there is no probability that the machinery be used to the advantage of the enemy); the following drugs, etc.: amidol and substitutes, bromine, hydrobromic acid, sodium bromide, opium, alkaloids of ammoniac compounds, ferric compounds, camomile, [Page 938] digitalis, nitrate of silver, synthetic drugs, namely, salvarsan, kharsevan, arsenobillon, novocain, eucaine, acetyl, salicylic acid; china, glassware, and earthenware; saltcake (only in cases where an adequate quid pro quo can be obtained); flower seeds except seeds producers of oil; shrubs; musical instruments except instruments composed entirely or mainly of metal; pictures, reproductions of; marble and alabaster for [statuary] purposes; surgical and medical appliances other than appliances containing rubber; precious stones, real and imitation diamonds other than industrial diamond; feathers of high value; flowers, artificial; furs; expensive buttons of bone or horn; toys; carpets, oriental of high value; gauge glasses; teeth, artificial, except such as contain platinum or other rare metals; laces, hand-made, such as Maltese lace; coral tooth brushes.

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