File No. 763.72112/10727a
The Secretary of State to the Chargé in Great Britain ( Laughlin)1
2550. For Sheldon [from War Trade Board]:
No. 1538. For your information, following is statement of present scope of the jurisdiction of the inter-Allied enemy trading license conference.
The United States and Italy have agreed fully to the original proposals of the United States Government. Such proposals cover all cases where one of the Associated Governments desires to authorize a transaction in which enemy persons, persons on the statutory list, or persons on the confidential list, were involved, with the exceptions set out in the original proposal. The original proposals of the United States were outlined to you in Department’s 2, our 754, July 2.2
France has agreed to submit all cases covered by our original proposal except transactions with listed persons not enemy nationals, where execution of the transaction has commenced. They have further defined this as:
- (1)
- Cases “where payment has been made.”
We have assumed in our assenting answer to the French that by this is meant cases where the French applicant for license has paid for merchandise, etc., and now desires to receive the merchandise for which he has paid.
[Page 1074]- (2)
- Cases “where a shipment has already arrived at its destination;” and
- (3)
- Cases “where shipment is in transit.”
We have taken the assumption that in either of these latter two situations if the merchandise is moving to France and payment had not been made by the French national involved, no payment would be allowed. We have assented to these exceptions, as cases of this sort are regularly licensed by the War Trade Board when application is made and there would seem to be no reason for insisting upon submission to the conference.
The British have agreed to the original proposals with the following exceptions: They reserve from submission to conference transactions involving importation into Great Britain, and purely financial transactions, where a person on the confidential list in Norway, Sweden, Denmark, or Holland is involved. The reason for such reservation, it is stated, lies in administrative difficulties owing to the vesting of jurisdiction over enemy-trade matters in several departments of the Government. This, we recognize, would produce a serious difficulty, but we feel that it should be overcome.
You are instructed to take part again in formal conference. Each Government will submit cases up to the limit to which it has agreed.
The situation with reference to Italy and France is permanently satisfactory. With reference to Great Britain, we are still convinced of the great desirability of complete agreement on their part. Our reason for this conviction is not so much a desire to prevent the practical difficulties which may arise from uncoordinated action which, in the case of the comparatively slight reservations which the British make, would be probably negligible, but because of the extremely salutary effect upon trade relations between the Allies which a completely open policy will have, especially with a view to after-the-war relations. It is for this reason that we do not feel able to accept without protest the British proposal that their method be given a trial for a few months, and then, if it is not satisfactory, that negotiations be reopened.
We confirm our instructions to you in Department’s 1249, our 1182, September 7, 2 p.m.,1 to urge upon the British Government that they give full agreement to the original conference proposal. The French and Italian delegates are recommending to their Governments that similar instructions be sent to their respective delegates in London. Confer with the French and Italian delegates in London and act in concert with them. We feel that strong pressure from Italy, France, and the United States will produce the desired result.