831.24/889: Telegram

The Secretary of State to the Ambassador in Venezuela (Corrigan)

650. Reference Embassy’s 769 August 28 regarding simplification of Export Control procedure. The Department and OEW are awaiting decision of Country Agency as between Alternatives I and III. In the event that Venezuela is reluctant to accept Alternative III, the Embassy may wish to consider a modification suggested by one of the Missions. This modification would apply only in those countries that have import and/or exchange controls, and the Department understands that Venezuela does have such controls.

The modification contemplates that a simple import recommendation, or any other suitable form be required abroad, thereby enabling the Embassy and the Country Agency to continue control over imports, shipping space, and consignees. The import recommendation form would not, however, be forwarded to the U.S. and procedures of Alternative III would be operative in this country. In effect, this [Page 302] suggestion provides for the preservation of controls in the field and permits the exporters in this country to offer their wares abroad to the same extent as they could prewar within the restrictions of exchange availability or the willingness of the appropriate government agency to grant an import permit.

It appears desirable to take all practical steps to reestablish Importer–Exporter relationship with a minimum of government intervention. It is believed here that existing documentation tends to stifle trade and 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 allow the materials to be diverted to consumption in this country.

It is desired to effect the simplification of procedure October 1, 1943 for those countries that have accepted Alternative III, and the Embassy is requested to telegraph result of its discussion with the Country Agency.