740.00112A European War, 1939/29344b: Circular airgram
The Secretary of State to Diplomatic Representatives in the American Republics
The Department desires to review the probable extent to which further names should be added to the Proclaimed List, and to obtain reports from the missions in this connection.
Several considerations must be taken into account:
- 1.
- The basic objective of including on the Proclaimed List the names of all firms and persons who have engaged in pro-Axis activities or who constitute a danger to the security of the Western Hemisphere [Page 326] and who would be affected by the application of Proclaimed List controls or stigmatization should be pursued.
- 2.
- The Department anticipates that the point will be reached
sooner or later in most countries at which virtually all persons
or firms described in the preceding paragraph will have been
included in the Proclaimed List. The question has been raised
whether persons or firms should be put on the list because of
“expressions of sympathy for the Axis”, “having indicated in
conversation a hope for a German victory”, “having expressed
views antagonistic to the United Nations”, “having expressed
fear of Yankee Imperialism”, etc. The Department believes that
there are several considerations against extending the List
generally to persons against whom the only information is of
this nature.
- A.
- The inclusion of any considerable percentage of persons in this category would make the List of unwieldy proportions.
- B.
- There would inevitably be a discrimination against certain persons or firms since it would be impracticable to include in the List all persons in this category.
- C.
- The inclusion of such persons would weaken the standing of the List in the eyes of the local community as it became recognized that a considerable number of persons on the List had not engaged in any significant pro-Axis activity.
- 3.
- A considerable percentage of the names which have been added to the Proclaimed List during recent months have been included because of cloaking activities. While the threat of inclusion in the Proclaimed List has been one of the methods of combatting cloaking and has undoubtedly exercised a considerable deterrent effect, it has been recognized by the Department that it would not be possible completely to prevent cloaking by this means as there would always be persons who, through cupidity or pro-Axis conviction, would engage in cloaking regardless of the threat of inclusion in the Proclaimed List. Since many of these persons are not known in the community as essentially pro-Axis, the increasing percentage of such cases in the Proclaimed List is subject to the same disadvantages as are referred to in the preceding paragraph. The Department believes, therefore, that to as great an extent as may be possible the cloaking problem should be met through the careful screening of import recommendations under the decentralization of consignee control, through the obtaining of undertakings in minor cases where the mission has reason to believe that the undertaking will be observed and by publicity designed to secure a greater observance of the List by the local community. The Department believes that it is desirable to continue to use listing as a method of combatting cloaking but hopes that the cloaking problem can be reduced to some extent by these other means.
It is essential that the Proclaimed List be maintained as a vital instrument of economic warfare and that it reflect currently the names of persons whose continued economic activity is contrary to the defense interests of this hemisphere. Any impression on the part of a community that the Proclaimed List was not currently active with respect to changes in its names would, the Department believes, remove a powerful deterrent to pro-Axis activities on the part of a [Page 327] substantial number of persons who are now impressed by the threat of inclusion.
The foregoing expresses the Department’s present thinking on its future policy with respect to recommendations for additions to the Proclaimed List. You are requested to submit your comment to the Department and to report on any special situations which might exist in the country to which you are accredited and which may be affected by the execution of a policy of this kind.