740.00112 European War 1939/2132½: Telegram

The Consul General at Beirut (Engert) to the Secretary of State

24. Department’s 9, January 28, 5 p.m. In view of the fact that the British Ministry of Economic Warfare has recently declined to permit several shipments of Latakia tobacco to the United States but has authorized a shipment of olive oil, I believe it would avoid confusion and uncertainty if the Department could informally and confidentially bring to the attention of British authorities the desirability of encouraging in principle all Syrian exports to the United States. We have usually taken much if not most of Syria’s wool, tobacco, hides and skins, casings, etcetera, and we may want silk and olive oil as well. Now that the Franco-German clearing agreement is being applied to Syria—see my 21, January 2721—Germany is making a desperate attempt to obtain all these commodities from Syria herself, to supply pharmaceutical goods and chemicals urgently needed in Syria even though shipment via Turkey is expensive and subject to much delay. Unless, therefore, normal exports to America are facilitated it may confidentially be expected that they will be diverted to Germany. The only alternative would be for the British to buy up these commodities themselves which seems absurd as they can apparently find a ready market in the United States and the British do not want them.

I have talked very frankly with my British colleague in the above sense and he is making similar representations to his own Government.

Engert
  1. Not printed.