811.114 Belgium/251½
Memorandum by the Under Secretary of State (Phillips)
The Belgian Ambassador referred this morning to the oral communication which I handed to Prince de Ligne on Friday, May 22nd, with regard to the smuggling operations in Antwerp. He said that he was very much concerned about the whole affair, more especially since he had heard the names of certain Belgians of high standing who might be involved … The Ambassador expressed himself fearful that there was something radically wrong and he asked for every bit of help which we could give him, in order that he might communicate directly with the Prime Minister or even with the King; he asked whether I had any names which I could give him, but at this I demurred, saying merely that I would see whether we could give him any further details that would be of help to him.
The Ambassador said it would be of help to him, in his communication with his Government, to have a talk with Secretary Morgenthau and added that, if I had no objection, he would endeavor to make an appointment. I replied that I felt sure Mr. Morgenthau would be glad to see him.
Although the Ambassador was fully aware of the importance which we attached to smuggling operations, I availed myself of this opportunity again to point out the unfortunate effects which these operations would have, if continued, on the relations of the two countries; primarily the Treasury was concerned with the loss of revenue; the Department of State was concerned, in addition to the loss of revenue, with the effects which smuggling had on trade relations between the two countries and, in particular, upon the trade agreement. I pointed out that already there had been certain leaks in the press, but, as I understood it, the Treasury was trying to avoid, if possible, publicity of the whole affair, in the hope that the Belgian Government itself would take the initiative in finding a remedy. I added, however, that the story at any time might become public, in spite of the fact that we all hoped this could be avoided.
I also pointed out that these smuggling operations had been brought to the attention of the President, who was very deeply and personally concerned.