File No. 611.56d9/12a

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

[Telegram]

7707. For Sheldon [from War Trade Board]:

No. 466. We have been authoritatively informed that Dutch colonial export control is, with a view for such control, to be used as a weapon in negotiating with United States for let-up on our import restrictions where they affect Dutch East Indies. Dutch colonial Government has expressed desire to negotiate at once through Dutch Legation upon trade with United States and market for their goods. Our agreement that Netherlands should have sufficient ships for their colonial trade may embarrass us in the exercise of our import restrictions applied to this trade, as import restrictions program is a measure designed to secure additional tonnage. We desire your opinion as to wisdom of our entering upon such negotiations here. We think it would be better that they should form part of a general negotiation but we are unaware that any such negotiation is now pending and we feel that entire Dutch situation must be promptly threshed out and a definite offer made to the Dutch along all lines of interest to them.

Lansing