740.00111A Vessels/99
The British Ambassador ( Halifax ) to the Secretary of State
His Majesty’s Ambassador presents his compliments to the Secretary of State and has the honour to inform him that the Governor of [Page 393] Newfoundland has represented to him that certain difficulties are being experienced in Newfoundland through the operation of the Neutrality Act of 1939. As the Secretary of State is aware, Section 2 (c) of this Act stipulates that United States firms may not export to belligerent States unless the title to the goods is first transferred to some foreign Government, firm, etc.
It is understood that this provision has been waived insofar as the Dominion of Canada is concerned and it would appear that many American shippers are under the erroneous impression that a similar waiver has also been granted in respect of Newfoundland territory. Such impression has possibly been strengthened by the establishment in Newfoundland of the United States base.
His Majesty’s Ambassador has accordingly the honour to enquire whether the Secretary of State would consider the possibility of exempting Newfoundland from the provisions of the Act and of according to that territory the same facilities as have been granted in the case of Canada.