File No. 763.72112/9888
The Secretary of State to the Ambassador in Italy ( Page)
1673. For Stewart [from War Trade Board]:
No. 5. Embassy 1948, August 23, 12 noon, your No. 2.1 Reference to enemy trade license conference and exceptions which Italian Government desire to make to classes of cases to be submitted to committee, please communicate following to proper Italian authorities. Aim and function of such a committee, according to understanding of United States War Trade Board, is to furnish method whereby in so far as possible unity of action between Allied Governments in administration of their several restrictions on enemy trade may be obtained. War Trade Board convinced that such unity is essential to the exercise of maximum strength of Allied enemy-trade restrictions and to the securing of maximum results from such restrictions. To attain this it is vital that prior to action taken by any one of 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 Allied Governments in conference and views of other governments obtained. To be successful 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 enemy to manufacture damaging propaganda as they have in past on basis of actions of one Allied Government in enemy trade matters in apparent contravention of policy of another Allied Government. Such cases furnish opportunities to enemy to reiterate their claims of lack of understanding and unity among Allies. Effect upon morale of enemy of such ingenious claims, supported apparently by facts, is obvious. 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 case, and, most important, the obviating of all chance of misunderstanding. Reference to limitations [Page 1057] placed by Italian Government upon its full cooperation, to wit, that it accepts to extent of listed persons only, it would seem to War Trade Board that such a limitation would result only in partial accomplishment of aims of conference as stated above, as it would leave out of scope of conference action cases of transactions with persons actually resident in Germany or persons in neutral countries having enemy connections or affiliations where there is no list. You will call to attention of Italian authorities fact that in original proposal of War Trade Board submitted to Italian Government through their Embassy in Washington, sent approximately on date of July 3, cases of trade by the nationals of an Allied Government with persons of enemy character in the territory of that Government were excepted from consideration by conference. It is felt that no further classes of enemy be excepted. War Trade Board therefore desires to urge that Italian Government accept in full proposition, to wit, that with the exceptions outlined in Italian Embassy’s cable to Italian Government, sent approximately on date of July 3, all cases in which one of Governments participating in conference purposes to permit a transaction which would normally not be permitted by that Government because of 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, outlined in Italian Embassy’s cable, about July 3.1
Above has been approved by representatives French, English, and Italian Governments on Washington conference, and Italian representative is cabling Italian Government to that effect.