740.00112A EW/2–1146: Circular telegram

The Secretary of State to Certain Diplomatic Representatives in the Eastern Hemisphere and to All Diplomatic Representatives in the Western Hemisphere

secret

Executive Com on Economic Foreign Policy today approved following program for continuation of Proclaimed List.

European Hemisphere

(1)
PL shd be withdrawn from any country where it is in danger of losing its effectiveness without prospect of averting such loss of effectiveness. At present time List cannot be considered to have lost its effectiveness in any country in European Hemisphere.
(2)
List for Eastern Hemisphere shd not be withdrawn on May 8 but shd be continued as long as it can serve a useful purpose in implementation of program for elimination of German-owned and controlled firms in European neutrals.

Western Hemisphere

(1)
PL shd be completely withdrawn from any of other Am republics as soon as local controls program has been completed.
(2)
PL shd be withdrawn from any of other Am republics where it is in danger of losing its effectiveness without prospect of averting such loss of effectiveness.
(3)
PL shd be completely withdrawn from Western Hemisphere with possible exception of Argentina, one year after V–E Day, i.e., May 8, 1946, provided, if any Western Hemisphere country shd request continuation of PL for that country beyond that date, such request would be given due consideration.
(4)
Mr. Braden’s2 office shd be requested in early part of April for its recommendation concerning continuation of List for Argentina beyond May 8, and possible similar action in other countries which have not satisfactorily carried out replacement program.”

London is requested to discuss this immediately with Brit authorities re forthcoming Safehaven3 negotiations in order to obtain [Page 77] agreement to this program for Proclaimed and Statutory Lists. Document which forms basis for Com’s recommendation is being transmitted to you air mail and copy being given to Brit Emb here.

Byrnes
  1. Spruille Braden, Assistant Secretary of State for American Republic Affairs.
  2. For documentation on the Safehaven program, see Foreign Relations, 1945, vol. ii, pp. 852 ff.