File No. 656d.119/56a
The Acting Secretary of State to the Ambassador in Great Britain ( Page)
289. For Sheldon from War Trade Board:
No. 881. Taylor. We have now resumed granting export licenses for the Dutch East Indies, with the exception of iron, steel, and their products, machinery, tin plate, caustic soda, industrial explosives. These reserved items represent in value more than one-half of our total trade. Steamers continue to sail from the Dutch East Indies and are carrying normal quantities of tin and cinchona bark. Under these conditions, we feel inclined to grant export licenses for the above-reserved articles and it is suggested to you that we [Page 1516] should do so, unless you think it imperative that we should withhold such licenses with the object of facilitating your negotiations in London for the general agreement. It would seem to us, on the other hand, that this is not likely to be a deciding factor and that while it might exert pressure, yet it would not be sufficient to bring a conclusion to the negotiations.