740.00112A European War 1939/36666
Memorandum of Conversation, by the Assistant Chief of the Division of World Trade Intelligence (Swihart)
| Participants: | Mr. Wright, ARA; Mr. Frost, British Embassy; Mr. Dingle Foot, Parliamentary Secretary of the British Ministry of Economic Warfare; Messrs. Montgomery, Homer, Gordon, and Lewis, FEA; Messrs. Feig, Bach, Richards, and Schmidt, Treasury; Mr. Southworth, TA; Mr. Bowles, APC; Mr. Peterson, American Embassy, London; Messrs. Russell and Swihart, WT. |
Mr. Russell briefly discussed the questions which have arisen in this country concerning the maintenance of the Proclaimed List during the postwar period. The recent statement made by this Government was primarily intended for its immediate effect upon the European neutrals, particularly Sweden. If the List is actually to be retained, it is necessary to determine how long a period is contemplated and how many firms would remain on it. Mr. Russell indicated that, generally speaking, the South American Proclaimed List entities would not be a problem as the retention of the List in this hemisphere after the cessation of hostilities is not contemplated.
Mr. Russell then introduced Mr. Dingle Foot who discussed the following points: After the cessation of hostilities there will be reaction [Page 174] in both of our countries against wartime controls and it would be impracticable to retain the Lists without the control machinery. The occupation of Germany will make unnecessary the retention of the Lists for preventive reasons and thus there will not be the same need for blockade control. As opposed to these considerations, the British Missions in Europe have urged the retention of the Lists in order to assist our friends who have stuck by us during the war and not to give an immediate advantage to those who have harmed us. In London there have been discussions of adopting a White List which would give preference to our friends. Administrative and procedural difficulties, however, have caused the interested British authorities to dispense with this plan. It thus boils down to a probability that the continuation of the British Statutory List will be necessary in order to accomplish the desired purpose. The disappearance of the blockade machinery at the end of the war should not embarrass such a policy for the allocation of supplies will require controls for some time to come after the signing of an armistice. It has been suggested that the retention of the Lists will be of assistance to the Peace Conference authorities in attempting to restrain any German rearmament by aiding confiscation of German assets presently located in neutral countries.
Mr. Dingle Foot stressed the necessity for joint action by the British and American authorities. Once an agreement is reached between our two Governments it may be desirable to approach the Dutch, French, and other Governments in exile concerning the desirability of taking similar action. It may be necessary at a later stage to approach the Russian Government concerning Sweden. With respect to the western hemisphere the British are in general agreement with this Government’s attitude. It was noted, however, that it may be desirable to retain the lists for Argentina.
In London the British authorities have tentatively reached the conclusion that the present lists should be divided in two parts. The first group would contain firms which are presently enemy because of enemy control or who have violated economic warfare controls of the Allied Governments. The second would include firms and individuals who are relatively unimportant. The latter group could be deleted from the list much more quickly than the former. Whether this list will be retained after the signing of the peace would be dependent upon the final determinations made at the Peace Conference.
In closing, Mr. Dingle Foot stated that these considerations will have to be taken to a very high level before the final determination is made. Nevertheless, it would be desirable for the British and American Governments to attempt to reach their conclusions as quickly as possible in order to take advantage of their effect now.