611.626/191: Telegram
The Secretary of State to the Ambassador in France (Wallace)
1080. For Boyden for Perret from War Trade Board.
Embassy’s 1135, May 11, 10 P.M.15
Section 1. Sub-Section A. Department and Alliance have reached satisfactory agreement regarding purchase by Alliance of 1200 tons of Reparation dyes. Terms of agreement are same as cabled in Department’s 723, April 9,16 excepting that Section four relating to contemplated use of net profits has been amended. Reparation Commission and Cartel should be notified that a firm order has been placed for all types enumerated in Department’s 728, April 10, 4 p.m.15; that these are for Alliance and that they should be delivered to Alliance in accordance with instructions given by Alliance through Chapin or Patterson as title to these dyes has thus passed to Alliance. It is their privilege to negotiate after approval by you for exchange of any of these dyes which may not be allowed entry into this country for other types which would be of value to our consumers. Alliance is working with War Trade Board Section to secure ample importations of needed dyes. War Trade Board will issue licenses to Alliance authorizing importations in bond of all usable types for domestic supply. They will not be released from bond and permitted circulation in this country until regularly authorized by War Trade Board. The type in your group three will be at entire disposition of Alliance under supervision of Department [Page 499] for export sale or for barter but will not, in general, be brought into this country even in bond.
Sub-section B: Remaining 5000 ton pool. We do not think that at this time any underwriting of these dyes can or should be contemplated. Orders could be taken for needed dyes by Alliance. Nothing can be done, however, until we get prices and production statistics of German factories. Exchanges with other allied countries would be valuable only after wants of consumers from available supplies ascertained.
Section 2: Production. Due to disinclination of Congress to take definitive action at this time regarding dye problem and resulting future uncertainty, additional steps beyond customary functioning of Textile Alliance not deemed advisable. We could participate to extent of Textile Alliance transmitting orders of consumers against daily production, as done in case of 300 ton Reparation lot.
Sections 3 and 4. Drug situation outlined in Department’s 1079, June 7.17