The Ambassador in France (Wallace) to the Secretary of State
[Received January 16—3:17 p.m.]
157. R–220. For War Trade Board and Davis.
Referring to Department’s 94 green January 13, paragraph 3. Program of manufacture now being considered is only for the first six months. Will be revised every six months at least. It is not in any way contemplated to limit German factories to the 150 or so eolors given but merely to assure that minimum requirements of Allies will be filled. If this were not done opinion is Germans would largely confine themselves to manufacture of such colors as they can sell to neutrals at higher prices.
- No orders can be given to be filled out of daily production or until arrangements are made in conference with German experts. They could not get to Paris this week but are to be here next week when question will be discussed. As Herty option now expires February 1st Stephenson is placing all orders under this option as a guide in view of uncertainty as to when they could be even partially filled from treaty daily production option.
- Stephenson’s assistant has just returned from Frankfort and states goods are ready but from personal investigation knows they cannot be shipped account railroad strike and flood condition Rhine. Returns Frankfort tomorrow and will stay to hurry deliveries which he believes can begin next week if Rhine water[s] recede as expected. Rathbone.