File No. 763.72112/5964

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

[Telegram]

From Crosby for Secretary of Treasury:

No. 21. After further conference with British officials have reached following conclusion regarding financial blockade. Advise that our Government promptly require American banks and bankers who have dealings with banks of neutral countries to require their correspondents in neutral countries to execute undertaking that facilities of their American account will not be used to aid enemy substantially similar to undertaking which has been signed by all correspondents in neutral countries of London and Paris banks. Lord Percy and Stevenson have copy this agreement on single sheet with English text on one side and French text on other.

Regarding proposed extension of financial blockade shown in British memorandum dated July 24, entitled: “Suggested Extension of Financial Blockade,” which should be in your files.1 While not convinced it will accomplish as much as has been hoped, am disposed to advise cooperation with Great Britain, France, and Italy as stated below, always having regard both as to time and method to paramount necessity of securing loans in neutral countries for Great Britain and France to cover adverse trade balances. Having this necessity in view following procedure proposed:

(1)
There shall be no attempt, for present, at least, to interfere with direct transactions, including loans between Germany and neutral countries and their banks, being those described in paragraphs 1 and 2 of memorandum;
(2)
Diplomatic representatives of United States, Great Britain, France and Italy in each neutral country, to be provided with uniform notice to be prepared here to neutral banks in accordance with paragraphs 3 to 7 of said memorandum;
(3)
Preparation of printed forms and machinery for carrying this plan into effect will be begun immediately, time of actual inauguration of plan will be determined after report from neutral countries regarding pending efforts to secure loans for Great Britain and France.

Please cable whether you approve program outlined above, in which event only, immediate action required will be to arrange with American banks to secure signature to undertaking first above mentioned. Copies of this telegram will show British, French and Italians all of whom indicate satisfaction with procedure here proposed.

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  1. See the subenclosure to despatch from the Ambassador in Great Britain, No. 6451, June 22, ante, p. 898.