811.24 Raw Materials/69: Telegram

The Secretary of State to the Minister in the Netherlands (Gordon)

23. Your 37, April 12, 3 p.m. For your information and guidance, the Department is reemphasizing to the press the fact that under the proposal certain American surplus commodities would be offered in exchange for strategic materials only if foreign governments would agree to hold the stocks acquired as reserves for national emergencies, with adequate safeguards against the release of any part of such stocks to commercial markets. Because of these features, we feel that this proposal does not run contrary to our commercial policies and is quite different from commercial barter deals. These transactions would be entirely apart from commercial markets and should not influence them.