The Secretary of State to the Chargé in Great Britain ( Laughlin )
3072. For Sheldon [from War Trade Board]: No. 1728. For Frothingham. Embassy’s 3765, November 15, 9 p.m. Your 1879. Concur your recommendation paragraph 1 re censorship provided it remain in full force for confidential as well as statutory list. Your paragraph 2d favor removal statutory and confidential lists bona fide [Page 743] neutral concerns not mere covers enemy houses or in neutral Europe guilty serious breach agreements. This removal should be accompanied formal statement action taken in order to prevent unnecessary hardships towards neutral and other friendly governments guarantees to be obtained on removal to refrain trading allied goods or facilities enemy houses until conclusion of peace. To forestall further protests neutral and other governments announcement should include statement impossibility removal enemy subjects or enemy owned houses until radical change allied legislation and allied confidence bonafides German governmental and commercial reorganization. Reduction confidential list along lines above outlined statlist. Cloak list for names remaining statlist to continue where individual licenses required. Concur suggestion list controlled commodities all others no longer requiring individual licenses. Commodity lists so far as practicable shall be identical exceptions made by agreement. All present restrictions must be rigidly enforced for controlled commodities regarding firms continuing statlist including import restrictions as well as export restrictions. While individual licenses not to be required for non-controlled commodities statlist will remain hands customs officials as basis for refusal. Controlled commodities to require individual license as heretofore. Foregoing of course subject to allied agreement. Present bunker control to continue against houses remaining revised statlists. In order to avoid competition houses now on statutory and confidential lists detrimental to allied supporters abroad War Trade Board proposes as regards Latin America to grant tonnage priority in favor licenses granted prior to November 11. This would prevent shipments to houses presently removed from list for considerable period. Advise Paris and Rome substance this cable.