740.00112A European War 1939/36251: Telegram

The Secretary of State to the Ambassador in the United Kingdom (Winant)

7842. Reference Embassy’s 8338, November 29.

1.
The desirability of adding the phrase “in any theater of war” depends upon the nature of the plans for withdrawing economic controls. It seems to the Department, however, that the insertion of this phrase would tend to weaken the statement as a whole bearing in mind the purpose for which it would be issued. The phrase implies that adjustments in economic warfare controls would be made in Europe as soon as hostilities had ended there regardless of the continuation of hostilities in the Far East. Without expressing an opinion upon the desirability or likelihood of such a development, the Department believes that the indication of such a possibility to Proclaimed List firms in Europe would weaken the deterrent effect of the program in connection with which the statement is being issued.
2.
The sentence “such adjustments will be carried out with due regard to specific circumstances” was inserted with an eye toward Argentina and is designed to remove any basis for a belief in Argentina that the relaxation of controls would necessarily take place equally with respect to all countries regardless of the “specific circumstances”.
3.
The word “continued” was inserted because of the applicability of the present program to firms which have been exporting to the Axis in the past but whom we are now requesting to discontinue their previous rate of exports.
4.
The reference to “aid to the economy of the enemy” seems to us appropriate bearing in mind the purpose of the statement to impress those firms who are now exporting substantially to Axis countries. The statement does not purport to be a statement of general listing policy.

The Department does not feel at all strongly about any of the points raised in your 8338 and the foregoing comments are being sent to you now only that you may have them in mind in discussing the statement with the British authorities. The Department will await your further report after the other interested departments of the British Government have indicated their views.

Hull