File No. 600.119/698
The Ambassador in Great Britain ( Page) to the Secretary of State
[Received May 8, 3.20 a.m.]
9920. War Trade Board [from Sheldon]:
No. 530. The A. B. C. has been approached by the Foreign Office to accept the principle of granting licenses in very special cases in countries where no agreements have yet been reached for commodities to be consigned to firms in neutral countries whose businesses have been very adversely affected by the general embargo, provided such firms were well known to be pro-Entente. It is suggested that the Allied joint trade committees in those countries prepare a list of such firms especially deserving of consideration and that each application for import license by such firms should be considered by the A. B. C. on its own merits. Licenses should be granted only (a) where required in pursuance of long established business relations, (b) would form valuable propaganda, (c) would not prejudice the political effect of the embargo, (d) where required by a firm who would undertake to cease connections with German suppliers and would place contracts in Entente countries binding them to those [Page 985] countries for a prolonged period even after the war. It has been pointed out that the Associated Governments have done very little to assist firms who had remained steadfastly pro-Entente, whereas the Central Powers have very skillfully obtained much useful propaganda by granting similar privileges. It is pointed out that it is sufficient for a firm to be on the Allied black list for it to receive every encouragement from the Central Powers. While I am disposed to approve the principle above outlined, I have pointed out that in practice great care would have to be used to prevent the use of this practice for development of trade between neutral firms and those of one particular country among the Associated Governments and that the real criterion ought to be whether favorable propaganda would be produced by setting up the practice proposed. There will be a meeting of the A. B. C. to discuss this on the 12th instant and I should like to have your instructions before that date.