File No. 600.119/443

The Ambassador in Great Britain ( Page ) to the Secretary of State

[Telegram]

7734. Cable from Vance McCormick to War Trade Board:

I would like to propose for your consideration the following plan to be suggested to the British Blockade Ministry for discontinuance letters of assurance in favor of complete control by American export licenses. I feel certain British authorities will accept this plan.

Please cable progress made with enemy trade list and cable immediately your approval or suggestions re following, account my early departure.

War Trade Board to retain London representative to whom Bureau Exports would cable particulars daily of license application for the shipments to border neutral destinations; this representative to confer with War Trade Intelligence here to secure evidence available on consignees. Our London representative can then sit as [by?] formal invitation with Contraband Committee during consideration of evidence submitted by War Trade Intelligence and report to War Trade Board, Contraband Committee finding upon same.

[Page 986]

On strength of these reports War Trade Board to render its own decisions on applications and in turn to advise London representative by cable of applications granted, for information of Blockade Ministry, enabling them to make necessary entries in their statistical records of shipments to border neutrals from their own and all other sources. This proposal makes available to us all British Intelligence services which I have investigated and find most complete and which cannot be effectively duplicated in Washington; eliminates the letter of assurance system and any further intermediation of British Embassy, Washington; transfers to War Trade Board undivided control of American exports to border neutral destinations. We estimate this operation would not take more than three or four days for details. See Frothingham’s two letters of October 17, to C. A. Richards re War Trade Intelligence and Contraband Committee operations on navicerts;1 also his letters of October 30, suggesting cable code for use in proposed work.1 McCormick.

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