825.24/1395
Memorandum by a Representative of the Office of Economic Warfare in the Embassy in Chile (Price)2
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… This program of education which has been entailed in the establishment of the Decentralization Plan on a firm working basis, has served to inform exporters and importers that they are to be treated on an equal basis and that only by a strict observance of the requirements of the Decentralization Plan procedures can they be sure of an observance of the well-established policy of the United States Government of full protection to established business interests both in the United States and other American Republics. Departures from the established procedures are bound to lead to corresponding corrective measures later on if the supply and demand situation changes. Such was the situation in the United States at the time when never a week passed but what dozens of changes were made in general licenses and unlimited licenses until finally the export trade was completely bewildered and never knew at a given moment whether they should or should not apply for an individual export license or whether unlimited or some other type of license, the procedures under which varied in each case. It was the chaotic condition brought about by this series of changes which raised the clamor of the American exporter to its highest peak and dictated the necessity of a radical change in the entire field of export control. There followed a period of several weeks of the most intensive study of possible revisions in the manner in which export control had been conducted theretofore. These studies were participated in by representatives of the various agencies of the Government longest experienced in the export control [Page 173] field as well as by a representative cross-section of American business interests. In addition, the Missions in the field were consulted and had an opportunity to give the full benefit of their observations from the point of view of their product under export control. As a final result of this intensive program to develop a stable workable system, Decentralization Plan A was adopted as a means of controlling exports in a manner conducive to the best interests of all concerned.
Decentralization Plan A has not been in full operation for more than three months during which time all agencies have been devoting their best efforts toward correcting its imperfections. This process has hardly reached the point where we can say it has been completed. All these efforts, however, have been devoted to perfecting procedures as they exist in the Decentralization Plan in order that that Plan in its entirety may be given a fair trial. These efforts would be thwarted to a large extent if radical changes such as the one under consideration3 were permitted before an opportunity is had for the Plan to demonstrate its workability.
In view of the foregoing, and in view of the fact that the Decentralization Plan, as operating in Chile, has already demonstrated a sufficient flexibility to permit us to take full advantage of changes in the supply and shipping picture as we are informed of such changes by the authorities in Washington, I can not help but feel that it would be premature at this time to attempt to bring about a major change such as that mentioned in your memorandum.4
- Leonard H. Price, Chief, Requirements Section in the Embassy. This memorandum was transmitted to the Department by the Ambassador in Chile in his despatch No. 7482, September 7; received September 13.↩
- This refers—as does the Ambassador’s covering despatch—to the Department’s circular airgram of August 23, 1943, 7 p.m., in which such changes were proposed. For text of this airgram, see p. 122.↩
- i.e., memorandum by R. L. Bearden, Assistant for Exports in the Embassy. The major change suggested was that “commodities not under allocation and which are relatively in free supply be declared open and not subject to Import Recommendations”.↩