103.96/1868: Telegram
The Ambassador in Great Britain ( Davis ) to the Acting Secretary of State
[Received January 7—6 p.m.]
154. War Trade Board [from Sheldon]: Number 2255. In your 1952 of January 3, 1919, Department’s number 3774, namely W.T.B. Northern Neutral memorandum, you expressed approval of proposed addition to the free list of the commodities set forth in my number 2169, Embassy’s 4860 of December 24, 1918.64 Your telegram was however despatched before you had received my number 2221, Embassy’s number 45 of January 2nd [3rd], in which suggestions that the free list be confined to unimportant articles were set forth. Really the distinction between the free list and nonrationed list is that reexportation to Germany of articles on the nonrationed list can be effectively prevented whereas it will be increasingly difficult to prevent such reexportation of articles on the free list because the free list is now a no guarantee list as stated in my 2221. Complaints have already reached us from Scandinavian capitals of the inefficacy of the physical blockade exercised by the fleet in the Baltic and in respect to many commodities there is no existing machinery by which exports from neutrals to Germany by rail can be prevented; therefore it is essential to continue to obtain guarantees against reexport from Associations. If any real control in this respect is desired it seems to me that your views would best be accomplished by the eventual establishment of a controlled list as you suggest leaving all commodities not enumerated therein to go upon the nonrationed list [Page 794] with the exception of those on the free list already announced and set forth in my 1924, Embassy’s 3966 of November 23, 1918. Such a procedure would remove all doubt of ability to prevent reexport to Germany because guarantees would be obtained for all commodities except the small free list above referred to. Unless, then, you consider the proposed additions to the free list set forth in my 2169 to be of such unimportance that export to Germany from the neutral importer is unobjectionable or would not be attempted because of lack of demand in Germany for these articles, I would suggest that you approve the placing of this list on the nonrationed rather than on the free list and I have not notified the A.B.C. of your approval pending receipt of a reply from you. Please advise me promptly.
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