740.00112A European War 1939/36377

The Secretary of State to the Ambassador in Spain (Hayes)

No. 931

The Secretary of State refers to the Embassy’s despatch no. 1836 of January 5, 194442 concerning the postwar status of the Proclaimed List and particularly to the plan suggested therein for giving preferential treatment to producers of indigenous products who have voluntarily [Page 167] cooperated with the British and American governments in their economic warfare programs.

The Department approves the suggestion that the Embassy request the Consulates to submit lists of persons and firms dealing in various indigenous products with an indication of those who deserve particular consideration. The lists should then be made available to the United States Commercial Company with the suggestion that, wherever possible, its purchases be made from the cooperative producers. The program suggested by the Embassy could be further implemented by the Company’s expressing the appreciation of this government for the cooperation received at the time it makes its purchases.

The Department is also prepared to take such measures as may be practicable to utilize the lists in guiding private purchasers in the United States in placing their orders in Spain. While it would not be possible to make the lists available to private purchasers because of the policy against white lists, substantially the same result could be accomplished under the liaison which now exists between the Department and the Department of Commerce. As the Embassy is no doubt aware, American firms are informed in confidence of the unfavorable view which this government takes of persons and firms whose names appear on the Confidential List and thus the Embassy’s proposal, in so far as it relates to directing business away from unsatisfactory producers of indigenous products, may be considered as operative at the present time. With regard to the affirmative elements in the Embassy’s suggestion, the Department will make available to the Department of Commerce the lists of desirable producers of indigenous products and will suggest that the latter recommend the names included in such lists if it should receive a direct inquiry for such information.

The Officer in Charge is authorized to inform his British colleague of the procedure approved herein.

A copy of this instruction is being sent to the Embassy at London.

  1. Not printed. Besides the subjects mentioned herein, the despatch expressed the Embassy’s satisfaction with the authority recently granted it “to conduct a selective word-of-mouth campaign... as a means of creating uncertainty in Spain over the possible extension of the sanctions of the War Trade Lists in the post-armistice period.” (740.00112A European War 1939/36377)