103.96/1663: Telegram

The Chargé in Great Britain ( Laughlin ) to the Acting Secretary of State

4385. War Trade Board [from Sheldon]: No. 2013. Refer your number 1771, Department’s number 3224 of December fourth. Articles enumerated on the free list Q. N. 1 [sic], detailed in our number 1924, Embassy’s number 3966 of November 23, will be released from restrictions for Northern Neutral destinations; that is to say, (1.) no certificates of guarantees will be required from the importer; (2.) no rations will exist for the list; (3.) no reference to London is required; (4.) export licenses for goods on this list shall only be required at the discretion of the exporting country. If no export license is required, these goods may be consigned to firms on confidential list because no preventative machinery will exist from U. K.23 Export license will not be required for free list goods consequently these may go from here to firms on confidential list but in no case to a stat. list consignee. This list as approved by you will be announced on December 10 to be effective on December 15. As regards the four Northern Neutrals only the question of Iceland is being treated separately. As regards Spain and Switzerland action is required in Paris but this has been recommended by the A.B.C. Your suggestions to add largely to the scope of this list are now under consideration. It is proposed to include some of the commodities enumerated such as iron and steel and products thereof on a list of unlimited Q. N. I. [sic] ration. The distinction between commodities for which unlimited rations exist and commodities on the free list is that the former cannot be consigned to firms on the confidential list, otherwise [Page 748] there would be no distinction. The A.B.C. is entirely in accord with your views as to desirability of a controlled list consisting of commodities which must for the present be conserved and of commodities of potential military value and such a list is being drafted. Delay however, is inevitable. Mr. Hoover will shortly confer with representatives of the Associated Governments here to consider what commodities shall be included. As an illustration of considerations that must be taken up the French Government is anxious that textile machinery shall remain on the controlled list until such time as requirements of France in this respect have been satisfied. It is however, hoped that a controlled list may be compiled within 1 month to 6 weeks time after which all commodities not included in this controlled list will be free to move under the conditions now proposed for the free list Q. N. I.

  1. United Kingdom.