740.34112A/94: Airgram
The Chargé in Paraguay (Reed) to the Secretary of State
[Received June 7—8 a.m.]
A–222. Reference Department’s circular airgram of May 19, 1944, 9:00 a.m.11 in connection with the checking of unknown consignees in license applications involving amounts less than $10,000.
The Embassy believes that this question should be considered in connection with the Department’s policy and outlook on Proclaimed List enforcement and that this is particularly true in small countries such as Paraguay. The Embassy, without a detailed examination of Import Recommendations that have been submitted, is of the opinion that there are only six Paraguayan importers who could make importations covered by one license application amounting to $10,000 and each of these six is considered politically and commercially desirable. (Banco Agrícola del Paraguay (Government bank), Ferro-carril Central del Paraguay, International Products Corporation, Liebig’s Extract of Meat Co., Ltda., Industria Paraguaya de Carnes [Page 1458] S. A., and West India Oil Co., S.A.P.A.) In other words, if a policy is followed of checking unknown cónsignees only on license applications in excess of $10,000, as far as Paraguay is concerned no effective control of consignees will exist except as is provided by the Proclaimed and Confidential Lists.
It is the Embassy’s opinion that strict enforcement of the Proclaimed List12 necessarily involves some degree of control of United States exports at the source. It is apparent that if such control is not feasible the situation degenerates into an attempt to control distribution locally and with no effective control over local importers including those who may be newly established for speculative or cloaking purposes. Control of consignees was complete during the short period when no exportations were made from the United States except as covered by Import Recommendations; apparently it was not expedient to continue that control and so it must be admitted that as we relax those controls the most potent means of Proclaimed List enforcement is sacrificed.
- 1)
- The Embassy is of the opinion that the few submissions of names to it has assisted in the prevention of cloaking or other inimical activities.
- 2)
- For control purposes the Embassy would prefer that all unknown consignees be referred to it for checking on the basis of political desirability and to determine whether or not proposed importations (type of goods and value of shipment) might disclose intent to cloak.
If this is not possible Embassy requests opportunity to check political status and commercial activities of unknown consignees. No proposed shipments would be recommended for disapproval unless Embassy were prepared to recommend Proclaimed List or Confidential last action but recommendations for Confidential List action might be based on Department’s inquiry.
The Embassy considers it necessary to maintain some control of prospective consignees if Proclaimed List enforcement is to be at all possible.