810.24/252c: Circular airgram
The Secretary of State to Diplomatic Representatives in the American Republics Except Argentina, Brazil, and Mexico
The Board of Economic Warfare has requested the Department to transmit the following message:
“Reference is made to separate airgram on the subject of the cancellation of non-importable or non-licensable lists. A thorough survey of the shipping situation encourages the belief that shipments in [Page 118] excess of the present target may be continued in the near future. As long as the snipping situation remains easy and the manufacture of essential materials does not progress in the ratio of increased available shipping tonnage it well may be that we will have available shipping space in excess of tonnage required for the available essential materials covered by Import Recommendations.
“We may consequently be faced with the possibility of having ships leaving without complete cargoes. Such an undesirable procedure would have a further disadvantage of possibly causing a diversion of ships. In order to permit the necessary flexibility to take advantage of all available shipping space you are requested to secure the Country Agency’s agreement to the licensing of any material outside of allocated materials without Import Recommendations provided such materials are shipped only after all available materials covered by Import Recommendations have been shipped.
“You may assure the Country Agency that preference will be given, at all times, to the shipment of materials covered by Import Recommendations and immediately the shipping situation should again become critical no licenses and no shipping permits will be issued except for materials covered by Import Recommendations.
“Your immediate advice of the Country Agency’s reaction to this proposal is requested.”
For the Ambassador from the Department
The Department and the BEW have discussed the situation with respect to the above problem, in the light of the recent inauguration of the Decentralization Plan. It is not the intention that these proposals be forced upon the country to which you are accredited but it is our desire that the matter be thoroughly discussed with the country agency with a view to obtaining their agreement. If you deem it inadvisable to discuss this matter with the country agency you are requested to cable fully your reasons therefor.
It might be added that the BEW is apprehensive that the facilities of the country agencies are not at present sufficiently organized to achieve flexibility to take advantage of unexpected increases in shipping. The BEW believes that such flexibility can only be achieved by exercising its own licensing authority here.
The Department has sought assurance from WSA19 that shipping is indeed easier but because of the unpredictable requirements of the Armed Forces, such assurance cannot be given and the WSA can do no more than reiterate its hope of meeting the monthly target tonnages for the balance of the year. The more favorable shipping outlook to certain destinations for June and possibly July is of course temporary and no assurance can be given that it will be continued or repeated in the future.
The Department understands that the situation is urgent since the BEW fears there may not be sufficient cargoes available to satisfy the expected increase shipping in June and more particularly July.
[Page 119]It is suggested further that the Embassy in cooperation with the country agency arrange with importers to place orders by telegram for an amount equal to three months shipping target tonnage. These materials should be of the type essential to the economy of the country to which you are accredited and that are readily available and that do not require WPB priority assistance for manufacture or processing. This additional tonnage should serve to help in the creation of a backlog calculated to take advantage of any sudden windfall in shipping.
The Embassy’s comments and recommendations are requested as soon as possible.
- War Shipping Administration.↩