File No. 763.72112/10519
The Ambassador in France ( Sharp) to the Secretary of State
[Received October 22, 3.35 p.m.]
5500. Bureau of Enemy Trade [from McFadden]:
No. 515. Referring Embassy [Department] No. 5898, October 14, 5 a.m. [p.m.], your 368.
1. Your presumption that French will also present cases covering Holland, Norway, Sweden and Denmark to London conference and [Page 1070] cases covering the Western Hemisphere to Washington conference, as well as cases for Spain, Switzerland, Greece, and Morocco to Paris conference, is correct.
2. As to affairs or contracts en cours we had, before receiving your 368, already explained to the French Ministry of Blockade the importance of agreeing to submit these cases to the inter-Allied enemy trading license conference and they, desiring to cooperate in every way, had agreed to submit a certain number thereof as test cases to see if they were of interest to the conference. They informed us that they did not believe such cases interesting to the conference, as most of the transactions were small, but, given our explanation, they now agree to submit all cases except (a) cases where object is to pass the frontier, as for example see exception made by the Italian Government in Stewart telegram of October 11; (b) contracts or affaires en cours where an individual or firm in a neutral country is not an enemy and if the contract has already been commenced, as for example where the merchandise has already been shipped or reached France before the neutral individual or firm has been included in either the official or confidential list. This exception does not apply when the purchase price has been paid but the goods have not been shipped. In this respect French fix the governing date of inclusion in the list as follows:
- (1)
- For the official list, the date on which the publication in the list took place;
- (2)
- For the confidential list, the date on which the inclusion in the list became known to the French citizen who desired to treat with the listed person.
To sum up, the French will from now on submit:
- (a)
- All cases of licensing for new transactions whether—
- (1)
- Between their nationals and individual [s] and firms in the published and confidential lists, and [or]
- (2)
- Between their nationals and enemy individuals or firms;
- (b)
- Cases of licenses of contracts or affaires en cours—
- (1)
- With listed individuals and firms when the contract has been made but no steps have been taken to forward the merchandise even though payment has been made,
- (2)
- With enemy individuals and firms;
- (c)
- All cases involving question of principles, as for example, licenses of transit across France of merchandise coming from Spain and Switzerland containing more than 5 per cent of enemy raw material.
The objections of the French to submitting all contracts en cours except as noted above are the following: [Page 1071]
- (a)
- They believe those which they have expected [excepted] are of small interest from an international viewpoint.
- (b)
- They believe that if all such cases were submitted it would be necessary to constitute a new committee and they have not the staff available for this.
In this connection they state that (1) the cases which they have executed will be handled by that [sic] Commission Inter-Ministerielle, and (2) the minutes of the meetings of this commission will be supplied to the delegates on the inter-Allied conference so that the Associated Governments will be cognizant of the action of the French commission and examine the cases that the commission handle to see if they are of interest to the Associated Governments or if they are cases which should be submitted to the inter-Allied conference.
- (c)
- Fear of delay in execution by the various committees especially as to Scandinavian countries of cases where the merchandise has already been shipped or reached its destination where quick action is necessary to save time and unnecessary expense in storage, etc.
To correct this, in cases which are to be submitted to the conference, we have suggested that the Paris conference should pass a resolution that the decision of the three conferences should become binding within say ten days against [after?] meeting, this being the same procedure adopted for blacklisting by the Paris inter-Allied blacklisting committee. French agree to this and a resolution to this effect will be passed at the next meeting of the conference, which resolution will be submitted to you [sic] allied Associated Governments for approval. French Ministry of Blockade are sending telegrams to their representative in Washington explaining this situation and the question of affaires en cours as it affects France.
3. Referring your 367.1 We have presented same to French and they agree to commence regular meetings of conference from now on. The blacklisting committee already constituted will handle cases of enemy-trade finance. They further agree that negotiations for the settlement of full details shall be carried on at Washington. We have submitted this telegram of the French Ministry of Blockade and it expresses the views of the French Government thereon. We believe same to be in accord with your views, as expressed in your letter of July 1. If such is not the case, we feel sure the French agree to enlarge the scope of the Paris conference, as evidenced by the fact that they will from now on furnish us with the minutes of their Commission Inter-Ministerielle meetings for the purposes stated above. We suggest that the best method to insure quick action in establishing conference is for you to commence submitting cases [Page 1072] as soon as possible. It will be by experience and examples that the French can see exactly what you intend and desire. McFadden.