740.00112A EW/8–2644: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

6965. For Russell, WT.

1.
It was orally proposed by MEW at Black List Committee August 25, that Iberian Peninsula applications for deletion should not be approved by Committee unless it is clear some concrete advantage to United Nations would result or special circumstances warranted delisting action. It was pointed out that it is no longer possible for persons in these countries to export or import to or from enemy by land and consequently advantages to be gained from effecting deletions on signature undertakings no longer existed. It is anticipated applications for deletion will be received from considerable number of persons who have traded with enemy to last possible moment but who will now be willing to give undertakings with or without bonds not to engage in activities which are in fact no longer possible. It is felt that treatment of such cases in normal fashion (i.e. accepting undertakings with or without bonds) would be likely to discourage friendly firms in other neutral countries that have not engaged in objectionable transactions and would probably have considerable adverse effect on existing sanctions in such countries as persons would be encouraged in believing they could trade with the enemy until the last possible moment and be forgiven on final repentance. It was also suggested applications for deletions in other neutral European countries might be treated similarly.
2.
Committee agreed to postpone decision on question until next meeting September 1 to give Board of Trade and Department an opportunity to comment.
3.
Embassy is in full agreement with MEW’s proposal regards Iberian Peninsula but feels views of missions might be obtained before extending policy to other neutral European countries which can still trade with enemy (in fact only Switzerland and Sweden) inasmuch as Missions may feel there are still economic warfare advantages to be gained from accepting undertakings in certain cases. In practice, adoption of this policy with respect to Iberian Peninsula may not cause sharp decrease in number of deletions as there will undoubtedly be a number of meritorious deletion cases such as those in which listing is proved to have been done unjustly or in which negotiations have been extended over a considerable period as well as cases of deserving [Page 185] Italians. However, primary purpose is to prevent increase at this time which would run counter to our whispering campaign and announced policy of remembering those persons who have assisted our enemies. Missions concerned would probably be advised that Committee is less likely to delete in future as the moment envisaged in the whispering campaign has arrived.

Department’s comments on MEW’s proposal urgently requested in time for Friday meeting.

Winant