Foreign Relations of the United States: Diplomatic Papers, 1945, The American Republics, Volume IX

710 Conference W and PW/1–645

Memorandum by Mr. James Espy, Foreign Service Officer, to the Chief, Division of Caribbean and Central American Affairs (Cabot)

[Washington,] January 6, 1945.

I have conferred with the following officers in the Department regarding suggested subjects to be dealt with and resolutions to be offered in the forthcoming Conference.

• Mr. Haley—ECA
• Mr. Gerald Smith—CP
• Mr. Wayne Jackson—WE A (for Mr. Taft)
• Mr. Spaeth—RPA
• Mr. Sanders—RPA
• Mr. Allen—RPA
• Mr. Collado—FMA
• Mr. Thomas Mann—WT
• Mr. Falck—SD (for Mr. Saugstad)
• Mr. Morgan—AD
• Mr. de Wolf—TD
• Mr. Clattenburg—SWP
• Mr. Warren—A–B
• Mr. Neal—FC⁸⁹

The following is a resume of my conversations with these officers setting forth the suggestions, proposals and possible resolutions which they have in mind.

Political-Military Matters

Subversive Activities. Mr. Clattenburg, SWP, stated that he had already sent a memorandum to Miss Maylott⁹⁰ setting forth material on the subject of subversive activities. This material could readily be reduced to the form of a resolution.

Intelligence. Mr. Fletcher Warren strongly recommended that the subject of intelligence activities and exchange of intelligence information not be brought up at the Conference. He explained that our future approach to this subject has not yet been clarified, in particular with respect to the continued services of our legal attachés stationed in the other American Republics and accordingly believed this matter could be left for discussion at a later date if it need ever be taken up at all.

Committee for Political Defense

Mr. Sanders and Mr. Allen, RPA, are preparing material for a resolution relating to the Committee for Political Defense⁹¹ (see memorandum of January 5⁹² from Mr. Sanders).

Financial and Monetary Matters

Mr. Collado wall have drafted the following four resolutions on monetary and other related subjects.

• “1. Modification of Resolution V of the Third Meeting of Ministers of Foreign Affairs at Rio de Janeiro, 1942⁹³ (resolution already drafted).
• “2. Endorsement of Bretton Woods Resolution VI,⁹⁴ United Nations Declaration of January 5, 1943,⁹⁵ and Gold Policy Statements of February 22, 1944⁹⁶ (already drafted). This resolution is the so-called Safehaven declaration against giving refuge in the American Republics for financial assets of enemy countries.
• “3. Relation of American economic organization to the Dumbarton Oaks proposals⁹⁷ (Mr. John Leddy, CP, is now drafting this resolution).
• “4. Continued economic collaboration in prosecution of the war (proposed resolution not yet worked out). This resolution is a sort of cover-all for resolutions 2, 3 and 4 of the Rio de Janeiro Conference of 1942.”

Mr. Collado also has in mind the preparation of some sort of broad outlined declaration to cover Item B of Point 3 of our suggested agenda for the Conference which he hopes might also include the viewpoints on general economic questions of the other Latin American Republics.⁹⁸

War Trade Intelligence Matters

Mr. Thomas Mann, WT, informed me that a study will be made in WT Division and that he will endeavor to submit by January 8 a memorandum setting forth the material that has been worked up and including any suggestions, proposals or resolutions which that Division may wish brought up at the Conference.

Economic Matters

Mr. Jackson informed [me] that he has in mind proposing the following resolutions for the Conference the drafting of which will be undertaken after further discussion with the other members of WEA.

1. Clarification of the policy on supply between the American Republics. This resolution relates to our supplying of materials, services and goods to the other American Republics and would modify the commitments made by this Government at the Rio de Janeiro Conference in 1942.⁹⁹

2. Clarification of the programs of procurement between the American Republics. This resolution relates to our policy of procuring raw materials and other supplies from the other American Republics and would modify our commitments made at the Rio de Janeiro Conference.

3. Statement of policy regarding the use of protective trade controls and import tariffs. This would relate to excessive import tariffs imposed by various American Republics of a nature designed to protect war created industries in these countries.

4. Statement of policy regarding exclusive measures against the establishment of new commercial, financial and industrial activities of non-nationals.

Mr. Jackson also advised that he would make further study of the outline proposals contained in the memorandum of November 7¹ with a view to submitting further suggestions or resolutions. He will submit a memorandum to Mr. Cabot by January 8. See also memorandum of January 1, 1945¹ to Mr. Haley, ECA, from Mr. Jackson, WEA.

The working committee of CP under the chairmanship of Mr. Gerald Smith has already made some studies with respect to the holding of the forthcoming Conference. By memorandum dated December 6 prepared by this Committee there was drawn up a list of ten or more points on various economic matters which it was thought the other American Republics would bring up at the Conference. Material is being prepared to set forth our views and position to meet these points. On January 5 Mr. Haley instructed Mr. Smith to undertake, together with the Committee, to resolve Items A and B of Point 3 into detailed subjects and thereafter to begin preparation of such material and resolutions as may seem called for.

Shipping. No suggestions or resolutions have been prepared or are contemplated regarding shipping matters but Mr. Falck stated that this matter would be again reviewed in the light of policy decisions as to the subjects to be included in the agenda of the Conference.

Aviation. In view of the shortness of time between the holding of the International Civil Aviation Conference² at Chicago last autumn and the present proposed Conference, Mr. Morgan stated that he felt there would be no need for further discussions of this subject at the forthcoming Conference. He added, however, that it may appear advisable at the last moment that, provided the United States Government ratifies the Acts of the Aviation Conference before the holding of this Conference, a resolution be offered confirming the desire of all the American Republics to adopt the principles enunciated in those Acts.

Communication. Mr. de Wolf advised that in accordance with the memorandum of November 7 he had already, by a memorandum addressed to Mr. Cabot and Miss Maylott, submitted two resolutions: Resolution regarding the Third Inter-American Radio Conference and Resolution regarding Inter-American Telecommunications Union.

Relations With Argentina

Mr. Ward Allen, RPA, advised that he proposes to prepare in the form of documents for members of the American Delegation the following papers:

1. Summary of our views of the Argentine case.

2. Complete detailed brief on the Argentine case.

3. Documentary evidence in support of this brief.

Mr. Allen stated that he hoped to discuss this matter with Mr. Lockwood³ in the next day or so with a view to obtaining Mr. Lockwood’s approval of setting up an ad hoc committee to prepare and coordinate all the material on the subject.

N.B. It will be observed that no mention is made in this memorandum of subjects that would fall under Point 2 of the suggested agenda or strictly military considerations under Point 1. It is assumed that the newly created coordinating Committee of War, Navy and State Departments will deal with the latter. It is also pointed out that no mention is made in the memorandum of the relationship of Pan American Union with the forthcoming Conference. It is further observed that I undertook no discussions with officers of the other political divisions of the Department to inquire of any suggestions they might have for the correlation of the proposed agenda with our policy concerning other areas of the world. I assume that this would be a matter to be handled by the working group.

89. The officers included in this list are identified as follows: Bernard F. Haley, Director, Office of Economic Affairs; Gerald Smith, Assistant Chief, Division of Commercial Policy; Wayne G. Jackson, Deputy Director and Charles P. Taft, Director, Office of Wartime Economic Affairs; Carl B. Spaeth, Chief of the Division of River Plate Affairs, and William Sanders and Henry E. Allen of that Division; Emilio G. Collado, Chief, Division of Financial and Monetary Affairs; Thomas C. Mann, Assistant Chief, Division of World Trade Intelligence; L. James Falck, Assistant Chief, and Jesse E. Saugstad, Chief, Shipping Division; Stokeley W. Morgan, Chief, Aviation Division; Francis C. de Wolf, Chief, Telecommunications Division; Albert E. Clattenburg, Assistant Chief, Special War Problems Division; Fletcher Warren, executive assistant to the Assistant Secretary of State; Jack D. Neal, Assistant Chief, Division of Foreign Activity Correlation.
90. Marcia V. N. Maylott, Division of International Security and Organization.
91. For documentation on the Emergency Advisory Committee for Political Defense, meeting at Montevideo, see Foreign Relations, 1944, vol. vii, pp. 1 ff.
92. Not printed.
93. This resolution concerned the severance of commercial and financial ties with the Axis. For text, see Department of State Bulletin, February 7, 1942, p. 124. For documentation, see Foreign Relations, 1942, vol. v, pp. 6 ff.
94. Resolution VI related to enemy loot, flight of Axis capital etc. For text, see Department of State, Proceedings and Documents of the United Nations Monetary and Financial Conference, Bretton Woods, New Hampshire, July 1–22, 1944 (Washington, 1948), vol. i, p. 939. For documentation, see Foreign Relations, 1944, vol. ii, pp. 106 ff.
95. This declaration warned against acts of dispossession committed by the Axis nations in territories under their control. For text, see Department of State Bulletin, January 9, 1943, p. 21. For documentation, see Foreign Relations, 1943, vol. i, pp. 439 ff.
96. 9 Federal Register 2096.
97. See particularly section C of chapter VIII and chapter IX of the proposals and the documentation of the discussions of the proposals, Foreign Relations, 1944, vol. i, pp. 898, and 924 ff.
98. See circular telegram of January 5, p. 1.
99. Recommendations 2, 3, and 16; Department of State Bulletin, February 7, 1942, pp. 119–122, 127–128, respectively.
1. Not printed.
1. Not printed.
2. For documentation on this Conference, see Foreign Relations, 1944, vol. ii, pp. 355 ff.
3. John E. Lockwood, Deputy Director, Office of American Republic Affairs.