File No. 600.119/480

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

[Telegram]

8276. For War Trade Board from Sheldon:

No. 31. Referring your cable January 9 on alteration embargo policy, in respect of nonessentials, believe there may be some misunderstanding as to object of the proposal in mine of December 29 and January 7, as the immediate object of the suggested exemptions is to prevent capture by Germany of the Scandinavian and Dutch markets in goods which she and the Allies are able to supply. Evidence is constantly increasing that Germany is making every effort to capture these markets prematurely. As to the advisability of excluding from the list objects mentioned yours January 9, as Germany can and is exporting these products, it would seem that shortage of home supplies is the only reason for not allowing them to be exported from Allied countries which is a point upon which each Ally must decide for itself, the main question being to allow nothing of military importance, and nothing of which any of the Allies as a whole are short, for their own consumption. Understand Foreign Office has cabled Spring Rice. Please reconsider whole subject and cable.

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