740.00112A EW/5–2845: Telegram

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

4221. For EWD.37 Reference is made to program for deletion of Class A names from Proclaimed and Statutory Lists immediately after V–E Day and to telegrams which have been exchanged on subject of Class A lists compiled in London for European neutral countries.

It will be recalled that agreement worked out between Dept and Foot indicated drafting of lists of names for immediate deletion from lists on basis of standards which were set out and attached to memorandum expressing basic agreement with Foot. Examination in Dept of names submitted by Working Party in London indicates no substantial adherence has been maintained to standards which were thus set out. Examination of proposed Class A lists for such countries as Turkey, Tangier and other European areas indicates Dept would disagree with deletion of approximately 60% of names recommended by London Working Party. Inclusion of such names as director of Deutsche Bank in Turkey is illustrative of type of difficulty Dept is finding with lists submitted by London Working Party.

This matter is viewed with extreme concern by Dept. At time of discussions with Foot, Dept. pointed out the extremely grave consequences of overly generous deletions from lists immediately after V–E Day. It will be recalled Dept’s view was that lists should be maintained with only gradual reductions until lists were entirely eliminated approximately one year after V–E Day, and Dept acceded to British desire to make substantial reduction immediately after V–E [Page 841] Day only on basis of agreement that only “small fry” and fringe cases would be included in lists of names eligible for immediate deletion.

Dept has been forewarned that Congressional committees and others interested in Economic Warfare will question very seriously desirability of any substantial reduction of lists at this time. In view of this fact and in view of inclusion in lists drafted by London Working Party of names which Dept considers eligible for hard core, it seems impossible to reach agreement on “first bite” deletions by June 2. Moreover it seems clear Dept and London Working Party are proceeding on entirely different basis in compiling lists of persons eligible for immediate deletion. In view of Dept this matter will have to be straightened out before agreement can be reached on Class A deletions unless British are prepared to accept suggestions which have been made and which will continue to be made by Dept.

You are requested to bring these points to attention of British and to emphasize the following: (1) In view of different standards apparently being applied by London Working Party and Dept, Dept cannot agree to deletions of Class A names on June 9 as originally planned; (2) Dept will continue to send its comments on lists submitted by London Working Party, and is willing to send George Baker38 to London to discuss this entire matter with particular reference to standards being applied in drafting Class A lists; (3) Policy of large scale deletions immediately after V–E Day is being seriously questioned both in Congress and US press. Dept is not willing to assume burden of justifying not only deletion of unimportant fringe cases immediately after V–E Day but also deletion of names which Dept would consider eligible for hard core lists. This point of view was clearly explained to Foot during discussions in Washington and should be emphasized in your discussions with British; (4) It is hoped that postponement of first bite deletions, accompanied by further discussions, can clarify this matter and result in agreement between British and US. Should this not be possible Dept will be compelled to consider maintenance of PL in manner which it will be able to justify, even though this policy means divergence from Statutory List. Department is not prepared to throw overboard the standards worked out in Foot discussions in order to preserve correspondence between Proclaimed and Statutory Lists.

Please report urgently to Dept reactions of British on these views.

  1. Economic Warfare Division of the Embassy in London.
  2. Assistant Chief, Division of Economic Security Controls.