818.24/482: Telegram

The Secretary of State to the Chargé in Costa Rica (Trueblood)

575. Reference Embassy’s A–909, September 4, 8 a.m.48 Department appreciates Embassy’s and Country Agency’s reluctance to see decentralized controls relaxed while present and prospective shipping availabilities remain deficient. However, Department believes that shipping prospects can better be judged by recent performance than by the maintenance of the 2400 ton monthly allotment figure. Furthermore, if control of articles in free supply is relaxed, every effort will be made to follow Costa Rica’s expressed preferences as to use of available shipping space.

It seems desirable to take all practical steps to reestablish direct importer-exporter relationships with a minimum of Government intervention. It is believed here that existing documentation under decentralization tends to stifle trade and to encourage importers in the other American republics to seek other actual or potential sources of supply and exporters in this country to abandon their efforts to preserve their foreign markets and to allow the materials which otherwise might be exported to be diverted to consumption in this country. Looking, therefore, to post-war competition, it seems necessary to enable the United States exporters and suppliers to regain [Page 190] the goodwill of their agents and customers in the other American republics.

It is believed that articles in free supply will be those not covered by estimate of supply and not requiring assistance from WPB49 for procurement or production.

It is desired to effect the simplification of procedure October 1, 1943, for those countries which have accepted Alternative III,50 and the Embassy is requested to consult Country Agency and telegraph whether Costa Rica will agree to be included in this group.

Hull
  1. Not printed.
  2. War Production Board.
  3. See circular airgram, August 23, 7 p.m., p. 122.