File No. 600.119/1645i
The Acting Secretary of State to the Chargé in Great Britain ( Laughlin )
1956. For Sheldon [from War Trade Board]:
No. 1396. We are disturbed over the very considerable delay in receiving reports from the A. B. C. with reference to applications to export commodities to the northern neutrals. In the case of certain classes of goods, such as cotton goods, boots and shoes, etc., there has been a very great delay which has resulted in a large accumulation of applications covering commodities aggregating a very high value, which goods have already been purchased by the neutral importer. We think every effort should be made to secure prompt action to avoid the tying up of capital and the deterioration of goods pending [Page 1002] decision by A. B. C. We receive the impression from Taylor that this delay in part results from efforts of the A. B. C. to apportion the rations of the northern neutrals among the Associated Governments which are prepared to export the same. If so, this is directly contrary to the understanding under which we are referring these applications to London. Paragraph 8 of our No. 113, Department’s 6617, February 18, 7 p.m.,1 provides: “No attempt will be made to apportion rations among the several co-belligerents. Buyer will be entirely free to select his own market.” Please investigate this matter and report to us as promptly as possible.