740.33112A/3–2645
The Ambassador in Uruguay ( Dawson ) to the Secretary of State
[Received April 6.]
Sir: I have the honor to refer to the Department’s instruction no. 2353 of January 30, 194583 containing directives for the revision of [Page 1390] the Confidential List of Unsatisfactory Consignees. It is noted that it is desired to reduce the List to such extent as may be commensurate with existing circumstances with a view to possibly reaching an agreement with the British for the coordination of the Confidential List and the Black List.
There is attached herewith a memorandum84 setting forth the Embassy’s recommendations, with brief comment, concerning all cases appearing on the Confidential List for Uruguay as of March 10, 1945. The Embassy will be pleased to receive the Department’s observations regarding such cases as do not appear to qualify for retention or deletion, as the case may be, under the criteria by which the operation of the Confidential List is to be governed in the future.
There has been little effort on the part of Proclaimed List firms in Uruguay during the past two years to utilize cloaks for the importation of merchandise from the United States for their own account. This is doubtlessly due to their knowledge of the extensive measures taken to control exports from the United States. On the other hand, the Confidential List has been of considerable value in Uruguay in suppressing local trading with Proclaimed List firms, including the supplying of materials imported from countries other than the United States, such as Brazil and Argentina. It has also been useful as a means of preventing objectionable persons and firms from profiting by trade with the United States in cases where because of political considerations or lack of sufficient concrete evidence, etcetera, it was not feasible to recommend their inclusion in the Proclaimed List.
In view of the extent to which the Confidential List has become ineffective in preventing the exportation of goods to persons and firms included therein and the likelihood that it is to become increasingly ineffective in the future as export licenses will be required for fewer commodities, it is respectfully suggested that the Department consider the feasibility of arranging with the Treasury Department for the designation as Special Blocked Nationals85 of all names appearing on the Confidential List. It is thought that this might provide a more effective control in cases where export licenses are not required, especially when payment is required in the United States prior to the exportation of merchandise.
Respectfully yours,
Commercial Attaché