Foreign Relations of the United States, Diplomatic Papers, 1945, General: Political and Economic Matters, Volume II

800.515/12–1545: Telegram

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

London, December 15, 1945—2 p.m.
[Received 4:51 p.m.]

13174. Embassy’s 13124, December 14,⁵⁶ repeated 799 Paris for Angell.

1. Following is outline of Washington Embassy’s Arfar⁵⁷ 1051, December 10 to MEWFO answering MEWFO’s 1305, December 7:

(Outline begins.) State Dept reports that apparently Angell and Waley⁵⁸ still prefer Paris draft while French views still unascertained. Sanctions and inducements proposals regarding neutrals still being considered in Washington “at a high level”. Broadly speaking proposed inducements are (firstly) unblocking (secondly) some relaxation of special blocking (thirdly) invitation join Bretton Woods acceptance Safehaven requirements as removing an obstacle to admission to United Nations and admission of organizations such as ECO.⁵⁹ Proposed sanctions are (a) “discrimination” in commodities under our control e.g. coal, rubber and petroleum (b) subjecting commercial transactions to special Treasury licensing (c) possibly denying exchange with Germany of materials and services. (Outline ends.)

2. Embassy observes that no reference is made by British in reporting Dept’s views to possibility refusal returning to neutrals property owned by them in Germany.

3. We endeavored obtain MEWFO’s reactions to above sanctions and inducements but were informed that these are essentially political and economic policy problems to be determined principally by other British depts e.g. FO, Treasury, etc., and not by Safehaven authorities. Also that those Depts had these problems under consideration but no conclusions reached yet. We urged British decide on these proposals before Christmas (subject to Dept’s forthcoming sanctions telegram) and emphasized Dept’s views that notes to neutrals could not be presented until British, French agree on sanctions. MEWFO referred to Arfar 1305 which pressed Washington for presentation notes before sanctions agreed. We answered presentation notes not so imperative now in view Swiss request to negotiate and emphasized Washington would be adamant and no progress possible without prior sanctions agreement.

4. MEWFO official reverted to usual argument that British unable apply sanctions because their necessity foster European trade, etc. He thought British would not object to our applying such sanctions unilaterally. His personal view was British would support such unilateral sanctions in the sense that if we withheld e.g. oil from Switzerland, British would refrain from sending oil. We replied this would be very unsatisfactory and urged necessity of united front against neutrals particularly regarding sanctions.

5. Regarding Waley and Angell preferring Paris draft MEWFO confirmed British agreement on Dept draft as reported in MEWFO’s Arfar 1292, December 5 to Washington,⁶⁰ repeated 186 Paris and transmitted in Embassy’s A–1313, December 8 copied to Paris. (See also Embtel 12851, December 7 to Dept, repeated 778 Paris.)

6. We also discussed whether in view Swiss request for Safehaven negotiations it would be necessary or desirable to present Safehaven note to Switzerland. Embassy believes on basis information available here would be mistake present full Safehaven note to Swiss (with appropriate minor modifications) in view Swiss démarche. If Dept feels a note to Swiss is necessary or desirable then we believe such note should merely consist of acceptance Swiss suggestion for Safehaven negotiations emphasizing Washington as situs for negotiations and indicating when they should commence. Since primary objective of Dept’s draft already achieved by Swiss offer negotiate it would be mistake give Swiss chance to argue on other points in Dept’s draft note. MEWFO official was inclined to agree personally. This procedure would not affect presentation notes to other neutrals.

Sent Dept. as 13174, repeated 803 Paris for Angell.

Winant

56. Not printed; it reported MEWFO’s position that there should be no delay by the Allied Governments in presenting notes on German assets to the neutrals pending agreement among themselves on the question of sanctions to be applied in the event of noncooperation by the neutrals (740.00119 Control (Germany)/12–1445).
57. British communications indicator.
58. Sir David Waley, British Representative, Allied Commission on Reparations; Head of the British delegation, Paris Conference on Reparations.
59. European Coal Organization.
60. Not printed.