Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume V

740.00112A European War 1939/30962a: Circular airgram

The Secretary of State to Diplomatic Representatives in the American Republics Except Argentina

Washington, May 17, 1943—6:30 p.m.

Reference Department’s Circular Airgram of April 23, 1943, 6:30 p.m.¹³ suggesting procedure under decentralization program for denying import recommendations to consignees whose names are included in the Confidential List of Unsatisfactory Consignees.¹⁴

The Board of Economic Warfare and Department of Commerce have been operating successfully for several months a procedure whereby the Board refers to the Commercial Intelligence Unit of the Department of Commerce the names of the American exporters and the foreign importers in all export license applications rejected because the foreign importers are on the Confidential List, and Commerce, as a service to reliable American firms, notifies them voluntarily, and for their strictly confidential information, that the export license applications were rejected because the consignees are not regarded as desirable contacts for American business. Since this procedure would tend to reduce considerably the number of import recommendations involving persons and firms on the Confidential List, it is proposed to adopt it in the case of the import recommendations the missions forward to Washington for rejection in accordance with paragraph three of the circular airgram under reference.

With respect to import recommendations that the missions deny in accordance with paragraphs one and two of the circular airgram under reference because the consignee is on the Confidential List, it is suggested that the missions forward an airgram to the Department notifying it of each rejection and reporting the name of Confidential List person or firm, the name of the American exporter, and the type and amount of goods involved. The American exporters will then be notified through the Commercial Intelligence Unit of Commerce under the arrangement between Board of Economic Warfare and Commerce. The procedure for the notification of American firms by the Commercial Intelligence Unit referred to in this airgram has been devised in such a way as to avoid the difficulties connected with the form of notices referred to in the Department’s circular airgram of July 28, 1942, 12:10 p.m.¹⁵

In connection with the decentralization program, several missions in the other American republics have requested instructions on treatment to be accorded import recommendations in which the local agent appears on the Confidential List and other parties to the transaction are satisfactory. The missions are authorized to approve such import recommendations, but each case of this type should be reported by airgram to the Department with a recommendation concerning the desirability of requesting Commerce to approach the American concern involved to inform it confidentially of the unsatisfactory status of its agent.

Hull

13. Not printed.
14. The list included the names of persons and firms closely identified with ownership and management of Proclaimed List firms and also names of persons and firms included in Treasury’s List of Special Blocked Nationals.
15. Not printed.