File No. 763.72112/10149

The Secretary of State to the Ambassador in France ( Sharp)

[Telegram]

5721. For McFadden [from War Trade Board]:

No. 328. … Every effort should be made to unify lists. Nonunified portions of lists of each Associated Government should not be [Page 1062] applied against shipments between other Associated countries and firms so discordantly listed. Nevertheless, War Trade Board does not feel it should urge French against their laws and policy to allow transit of goods across French territory between America and German firms in Switzerland although United States laws or S[ociété] S[uisse de] S[urveillance Economique] agreement may prevent inclusion of German firms in question in United States lists. Subject to tacit understanding on this exception, reciprocity demands adoption of principle mentioned above by French for general application. If French wish to stop particular shipments to or from Swiss firms not listed by United States on basis of evidence not yet submitted to inter-Allied committee, prompt submission and decision of case by inter-Allied committee might meet situation. Shipment could then be permitted or definitely stopped according to committee’s decision that it should or should not be licensed. Similar policy is followed in London with respect to northern European neutrals. There should be no difference in any of above particulars between S.S.S. and non-S.S.S. individuals or firms. We do not prefer to take matter up through other official channels. Suggestion in Embassy’s 5022, your 403, that provision be inserted in French-American-Swiss agreement, applying principle herein discussed to Swiss-American trade via France, should not be followed unless that course is necessary to obtain satisfactory assent from Swiss. This principle is one of agreement between the Associated Governments as to scope of their respective enemy-trade restrictions and not one between them and neutrals.

Lansing