Memorandum by Mr. Joseph C. Green of the Division of Western European Affairs

It would be unwise for any agency of this Government to assist in the financing of the sale to any foreign government of articles which are clearly implements of war.
It might be regarded as unwise for any agency of this Government to assist in the financing of the sale to the government of any country engaged in war of any commodities, the acquisition of which would increase the resources of that government in such a way as to assist it in its military operations.
It is suggested that in order to systematize the relations between the Department and the Second Export Import Bank in respect to the possible financing of the exportation of articles which are not clearly arms, munitions or implements of war, yet which are nevertheless intended for use in strengthening the military equipment of a purchasing government, the Second Export Bank be requested to inform the Department officially of any proposals for the financing of the exportation of such articles, in order that the Department may be in a position to consider the circumstances and to present officially for the attention of the Bank such considerations as may appear to be pertinent from the point of view of the conduct of our foreign relations.
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The fact that commodities are to be paid for by the military or naval department of a foreign government, or that they are intended, or that there is reason to believe that they may be intended, for use by the army or navy of a foreign government, might be considered as constituting a rough criterion of the commodities referred to in this paragraph.