File No. 763.72112/9730
The Secretary of State to the Ambassador in France ( Sharp)
5506. For McFadden [from War Trade Board]:
No. 287. Supplementing Department’s 4873 [4872], our 163, July 21; Department’s 5427, our 266, August 24, 7 p.m.2 With reference to the enemy trade license conference and the exceptions which the French Government desire to make to the classes of cases to be submitted to the committee, please communicate the following to the proper French authorities. The aim and function of such a committee, according to the understanding of the United States War Trade Board, is to furnish a method whereby, in so far as possible, unity of action between the Allied Governments in the administration of their several restrictions on enemy trade may be obtained. [Page 1053] War Trade Board is convinced that such unity of action is essential to the exercise of the maximum strength of the Allied enemy trade restrictions and to the securing of the maximum results from such restrictions. To attain this it is vital that prior to action taken by any one of the Allied Governments in permitting any transaction which through the enemy character or affiliation of some person connected therewith would normally be restricted such case be discussed by representatives of the Allied Governments in conference and the views of the other Governments obtained. To be successful, the plan must be thorough and involve all cases except such as through mutual agreement are very unimportant or in which it is agreed that the action will be always the same. By this course inconsistent acts are avoided. Opportunity is taken away from the enemy to manufacture damaging propaganda as they have in the past on the basis of actions of one Allied Government in enemy trade matters in apparent contravention of the policy of another Allied Government. Such cases furnish opportunities to the enemy to reiterate their claims of lack of understanding and unity among the Allies. The effect upon the morale of the enemy of such ingenious claims, supported apparently by facts, is obvious. The further advantages which naturally follow from mutual discussion of such cases are many; for example, the introduction of new points of view, new facts bearing on the case, and, most important, the obviating of all chance of misunderstanding.
With reference to the exceptions which the French Government desire to make from reference to conference:
- (1)
- Cases in which one of the Allied Governments proposes to undertake a transaction or transactions in which a person of enemy character or affiliation is involved. It is fully appreciated that in such cases the Government concerned would not undertake such an action unless the public necessity was great. Nevertheless, it is felt that a submission of the facts to mutual conference is desirable for the sake of avoiding all possible misunderstandings and for the sake of an exchange of information on the subject which may in many cases uncover facts which will remove the necessity for the transaction.
- (2)
- With reference to the proposal of the French Government to except from the conference consideration of cases where goods pass in transit through one of the Allied territories.
The War Trade Board recognizes the fact that such cases often involve questions of a political nature, but nevertheless feels that such cases should be presented to the committee in order that through the committee the other Allied Governments may be informed that political reasons necessitate the action and that the committee as a coordinating body may fully function in the matter of preventing [Page 1054] misunderstandings. The War Trade Board does not feel that the objection that a different branch of the French Executive administers such cases is controlling. It would seem that this difficulty could be obviated by having the proper department of the French Government instruct the French delegate to the committee as to the considerations controlling such cases. It is essentially desirable that the French authorities agree with the War Trade Board in this matter so that in unison we may urge upon the other Governments the desirability of complete cooperation. The War Trade Board therefore desires to urge that the French Government accept in full the proposition of the War Trade Board, as understood and intended by that Board originally; to wit, that with the exceptions outlined in Department’s 4873 [4872], War Trade Board’s 163, July 2, and dispatch of July 1,1 and communicated by you to the French Government, all cases in which one of the Governments participating in the conference purposes to permit a transaction which would normally not be permitted by that Government because of the enemy character or affiliations of a person involved in such transaction be submitted for discussion and recommendation to a committee of representatives of the French, English, Italian, and United States Governments sitting in London, Paris, or Washington, under the scheme outlined in Department’s 4873 [4372], War Trade Board’s 163, July 2.