File No. 659a.119/1

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


8421. War Trade Board [from Sheldon]:

No. 77. A conference of Allied representatives was held today at the office of the Restriction of Enemy Supplies Department to consider a proposed agreement with Iceland to keep supplies from going to the enemy. As a bargaining basis, the United Kingdom can supply coal and salt, the United States would need to supply 7,000 tons of foodstuffs and 4,000 tons of mineral oils during 1918. Three Danish firms have been buying Iceland wool to be stored until after the war for Germany. It is proposed to require the Iceland Government to requisition this wool and ship it to the Allies. Suggest that the War Trade Board facilitate united action in procuring total Iceland wool by refusing import permits for Iceland wool purchased by American firms after this date. If United States can supply commodities mentioned and approves of principle of agreement, Great Britain will request Iceland to send representatives to London to negotiate for coming year.