103.96/1663: Telegram
The Acting Secretary of State to the Chargé in Great Britain ( Laughlin )
3470. For Sheldon [from War Trade Board]: No. 1859. Embassy’s 4385 December 6, your 2013. This cable was despatched only 4 days prior to December 10, the date of the publication in London and was received by us, after the usual delays attendant upon paraphrasing, etcetera, only on December 9. In consequence, we were given no opportunity to object before publication on the 10th. The abolition of the confidential list was contrary to the views expressed in our 1771 Dept’s 3224, Dec. 4, 7 p.m. that goods were not to be permitted to go to anyone on enemy trade lists. We regret that A.B.C. has found it necessary to break enemy control, particularly in contiguous countries. We will not issue a general blanket license covering commodities on this free list inasmuch as we have, for the time being, abandoned the idea of granting such general licenses for other than allied countries. Therefore we will issue individual licenses on this free list. By reason of the precipitous action at your end, we are reluctantly constrained, in issuing such licenses, to disregard the confidential list. Cannot this so-called free list be withdrawn by the British and be made to conform to our procedure? We are strongly of the opinion that the granting of licenses to individuals on the confidential list should be discontinued. If this so-called free list cannot be withdrawn, we suggest that no further articles be added to it, and that any expansion of it should take the form of a non-ration list which would require licenses, but for which no ration would be specified. This was the kind of list that was set forth in our 1771. We propose that there should immediately be added to the list, when modified as above suggested, the following: Iron and steel [Page 762] and products thereof; cotton goods; leather and manufactures thereof; agricultural machinery; manufactured articles generally; foodstuffs other than those in the ration; drugs and chemicals; allowing conservation in the various countries to determine those which will not be exported. We propose to publish on December 20, effective December 23, the above commodities as being contained in a so-called non-ration list, which, as explained above, will require licenses, but for which no ration will be specified.