824.24/778b: Airgram

The Secretary of State to the Ambassador in Bolivia (Boal)

A–516. The Board of Economic Warfare has requested that the following advice regarding decentralization procedure be transmitted to the Embassy:

“Reference is made to the portions of the material entitled, ‘Details of Plan A’41 dealing with the non-importable or non-licensable lists, particularly item H on page 4 of ‘Details of Operation,’ page 2 of ‘Statement for Special Missions on Cargo Backlog Problem,’ and the entire page on ‘Licensable Material.’

“Under Decentralization Plan A it was, of course, realized in Washington, as it no doubt was in your country, that given the conditions prevailing at the time the Plan was presented emergency measures were necessary in order to assure the export licensing of essential materials for the respective countries of destination and to make the best possible use of the limited shipping space then available. Further sizeable backlogs of merchandise were apparent for most countries.

“The non-importable lists were created as an interim procedure until the flow of Import Recommendations afforded a mechanism for indicating [Page 137] the opinion of the Country Agency42 as to essentiality; and the issuance of such lists was designed to permit essential cargo from the backlog to be moved within the shipping availabilities. It is believed that both of these conditions have now been satisfied, particularly in view of the fact that the backlog has been substantially reduced as a result of liftings in March and April.

“The BEW is concerned because the concept of the importable, non-importable or non-essential lists is causing confusion here and abroad which outweighs any possible further usefulness at this date, and also because there is considerable apprehension that the lists will be extended beyond their original purpose.

“The Country Agency is now in a position to select the order in which materials will be imported, based upon the essentiality of the material. Since license applications for non-essential commodities will be approved by the Board of Economic Warfare when the Plan is fully operative only if accompanied by Import Recommendations, as long as Plan A applies to all commodities, the cancellation of the non-importable lists will not result in licensing of non-essential materials.

“Under the circumstances, it would be greatly appreciated if the Mission would place the above facts before the Country Agency and propose the elimination from ‘Decentralization Plan A’ the last sentence of point number 2, which reads:

‘The Country Agency will, as soon as practicable, announce a list of articles and materials which are importable.’

“Please notify us by airgram immediately when this is accomplished and arrangements should be made for proper announcements, both in your country and in Washington, of the cancellation of the importable, non-importable, or non-essential lists which have been issued by the Country Agency.”

Hull
  1. An issuance of the Board of Economic Warfare; for an outline of Decentralization Plan A, see circular airgram, January 19, 8 p.m., p. 106.
  2. The Bolivian office responsible for administering import controls.