740.00112 European War 1939/2593: Telegram

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

116. Department’s 55, April 18, noon, has been communicated to the authorities. Responsible businessmen known to the British Consulate General interested in this arrangement now inquire whether [Page 686] the Treasury Department could temporarily free blocked funds which they already possess in the United States in order to finance purchase of authorized commodities for Syria. Otherwise they would have to wait until Syrian exports had actually reached the United States and had been sold before they could utilize the funds in the special account. French authorities fear that lapse of time between departure of goods from Syria and sale in the United States will be too great to serve Syrian interests and accordingly do not wish to give export permits unless they have assurance that the funds for the purchase of the corresponding American commodities are promptly available in the special account.

Engert