File No. 763.72112/10412

The Ambassador in Italy ( Page) to the Secretary of State

[Telegram]

2122. War Trade Board [from Stewart]:

No. 25. Referring your 5, Department’s 1673, September 7, 8 [5] p.m. Foreign Office informs me Italian Government will accept [Page 1068] War Trade Board resolution of April 29, 1918, dealing with enemy trade license conferences with the sole reservation that there should be added to the cases specifically exempted from submission to the proposed conferences by article 3 of said resolution, cases involving purchase by nationals of Allied state of commercial enterprises existing within territory of said state belonging to subjects of enemy state. Foreign Office states such exception rendered absolutely necessary by Italian legislative system, further that under Italian law such transactions cannot be consummated [without] Government consent, such consent given only after detailed examination to determine whether proposed transaction compatible with political, economic, military interests of the country, and price paid deposited Italian bank where it remains until end of war. Foreign Office also states such cases involve only business activity within Allied state having control of the transaction, they come fairly within principle of other exceptions proposed in War Trade Board resolution and that proper evaluation of the specific circumstances surrounding such transactions could only be intrusted to proper authorities such state. And it suggests present inter-Allied black list committee act as conference committee proposed by War Trade Board resolution. Stewart.

Nelson Page