600.119/1895: Telegram
The Acting Secretary of State to the Ambassador in Great Britain (Davis)
3797. For Sheldon [from War Trade Board]: No. 1970. Frothingham. Embassy’s 4841, Dec. 24. Your 2162. War Trade Board will continue through individual export license refusal all stat list, G. B. L. A. and cloak list consignees both for Spain and Latin America as well as northern neutrals as such lists now exist or as they may be added to hereafter by action binding on all associated governments. Report by cable first, important commodities if any requiring British individual export licenses for Spain or Latin America, and whether where individual licenses for those countries are required uncertain or suspicious consignees refused outside of stat, G. B. L. A. and cloak lists. Our understanding practically all commodities Spain and Latin America now requiring no export license and stopped only consignees lists above referred to. Is newsprint paper to Latin America handled as above? Second, British enforcement cloak list. Our understanding from British Embassy here cloak list prepared by Washington conference has been placed in hands British customs officials for same enforcement as stat and G. B. L. A. Investigate and report. We desire to continue pressure listed houses at least until changed circumstance require alteration our position. It is obvious that if policy is to be at all effective British must instruct their missions Latin America and Spain to cooperate with our representatives in the detection of cloaks or other houses serving as channels for delivery of American or British goods to enemy hands, that Allied conferences in those countries must be resumed and even if but few additions be made to the list we create the impression locally that the [Page 792] policy is alive and active. The British Embassy here has cabled the Foreign Office urging modification of its previous circular instruction, a course which you may urge as strongly as possible upon British associates. It is obvious that equality of position must be maintained by British and American governments or justice to American merchants will compel abandonment of the policy. We feel strongly here that the result of the interpretation put by the British missions in Latin America upon the Foreign Office’s circular telegram has been most unfortunate as tending to impress the public in those countries with the idea that this government alone is insisting upon the strict continuance of enemy trade measures. Embassy’s 4678, Dec. 17, your 2114,63 answered by foregoing.
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