763.72112/12393: Telegram

The Acting Secretary of State to the Commission to Negotiate Peace

3067. For Polk. Referring to Department’s No. 2714, August 2, 10 p.m.

What progress on problem of trade with Bolshevik Russia? Department is continuing to refuse licenses for shipments to Soviet Russia. I understand that Broderick of the British Embassy here has informally expressed the opinion that Great Britain is going to resume trade with Soviet Russia before very long.

My understanding is that the President’s power to require licenses for export, which he holds under the Espionage Act and which he delegated to the War Trade Board, will lapse with the proclamation of peace. The only recourse then will be measures suggested in next to last paragraph in Department’s 2714, August 2, 10 p.m., referred to above.

Would be grateful if you will let me know how this whole question of preventing trade with Soviet Russia is developing in Paris.

Phillips