103.917/4901: Circular airgram
The Secretary of State to Diplomatic Representatives in the American Republics Except Argentina, Mexico, and Cuba
The appropriate officials of the Foreign Economic Administration.31 and the Department have had under consideration various proposals for simplification of export control. The following message from the FEA, and subsequent messages on the subject, are the result of numerous conferences between that Agency and the Department, and the proposals therein have the full concurrence of the Department. These messages should be discussed with the Special Representative of FEA (in those countries for which a Representative has been appointed).
“We refer to Current Export Bulletin No. 115 dated August 28, 1943, and later bulletins regarding simplifications in export control, which have been discussed recently. Current studies have been made in the Office of Exports of materials and products which, because of their characteristics are not easily adaptable to the decentralization procedure or for which the additional effort required by decentralization procedure is not justified by the benefits derived. This is in accordance with the spirit of the Rio Resolutions.32
“The commodity specialists of the Office have now completed a review of commodities now under the decentralization procedure with a view to determining which of them could be proposed as a preliminary group for which the Decentralization Plan no longer seems justified.
“Accordingly, the following commodity groups are proposed for removal from decentralization:
- 1.
- Farm machinery
- 2.
- Chemicals
- 3.
- Drugs and health supplies
- 4.
- Food
- 5.
- Communications equipment
“It is the conviction of the Office of Exports that the removal of these items from decentralization will expedite their shipment to the various Latin American Republics. It should be noted that this simplification differs from the first, in that the commodities are not to be placed on general license. Instead, individual licenses will be required; but the simpler procedure will result in greater shipments to the [Page 132] other American Republics, a fact which should be emphasized in discussions with the country agency.
“As the supply picture changes during the coming months, it will seem wise to remove other commodities from the Decentralization Plan. Reconversion of industry to the manufacture of peacetime products resulting in increased production of civilian goods will be a gradual process doubtless extending over many months, and will be a principal factor influencing the selection of the items to be removed.
“It should also be noted that it is both FEA and WPB policy to carry out as rapidly as possible the simplification of controls which necessarily have had to be placed on commercial transactions during the war.
“In view of the different factors which influenced the selection of the five commodity groups named in this airgram, you will receive shortly a separate airgram on each commodity group with specific proposals, (except farm machinery which already has been sent in circular instruction of October 23).
“While it is realized that the issuance of Import Recommendations is based on agreements contracted with this Government, we do not anticipate that the Country Agency will raise any objection to the proposed simplification of procedure in view of the benefits which will accrue to the country thereby. The foregoing should be explained to the Country Agency and the Office of Exports informed as expeditiously as possible of any comments the Country Agency may advance.
“The Office of Exports fully understands the desire of the importers in the foreign country and of the exporters in the United States to be assured that allocations of commodities will be fairly distributed among them on the basis of past performance.
“The Office has developed in considerable detail, during the past nine months of operations, licensing techniques which result in equitable distribution of allocations among exporters. These procedures have been worked out in meetings with exporters and are acceptable to them. The Office believes that, in keeping with its wish to follow the simplest methods of control, the interests of importers are adequately protected, and the trade pattern disturbed to the minimum extent, if allocations are distributed among established exporters on the basis of past performance. If these exporters are permitted to work out for themselves their own distribution to their established connections in foreign countries, results should be satisfactory.
“It is desired that this new procedure become effective in the country to which you are accredited January 1, 1944.”