816.24/676
The Secretary of State to the Ambassador in El Salvador ( Thurston )
The Secretary of State refers to the Embassy’s telegrams no. 185 of August 28, 4:00, and no. 215 of September 2, 5:00 p.m.21
The Department and Office of Economic Warfare22 appreciate Mr. Renwick’s fine spirit of cooperation in expressing willingness to accept Alternative III rather than request special treatment. The success of the decentralization plan reflects creditably on both the Embassy and the Committee of Economic Coordination and this Government would not wish to urge the acceptance of the simplified procedure Alternative III if in the considered judgment of the Embassy and the Committee such acceptance would be prejudicial as outlined in the Embassy’s telegram no. 185.
The Department and the Office of Economic Warfare are reluctant to continue controls which while considered necessary when instituted have proven, generally speaking, a deterrent to trade and which prevent a full utilization of shipping possibilities and material availability in this country. It is felt here that with some promise of improvement in both materials and shipping and with post-war competitive trade considerations becoming increasingly important, all practical steps should be taken to remove Government interference and permit direct importer-exporter relationships to develop. So long as current controls are retained on materials in free supply, the United States exporter or supplier is at a competitive disadvantage.
There is some evidence that importers in the other American republics are seeking other actual or potential sources of supply and, likewise, the United States exporters and suppliers have seemed less active in the preservation of their foreign markets and material which might otherwise have been exported is being diverted to local consumption in this country.
While the situation described in the preceding paragraphs may not apply in all respects to El Salvador, it is the belief here that so far as practical trade restrictions should be removed and for its part this Government desires to lift present export licenses on exports of materials in free supply to El Salvador. The Embassy is requested to discuss this matter with the Committee and give assurance that this Government does not wish to urge acceptance of Alternative III preferring that the choice be made by the Committee.
[Page 220]It is desired to effectuate the simplification of procedure October 1, 1943 in those countries that have accepted Alternative III and the Embassy is requested to telegraph the result.23