File No. 600.119/1158
The Ambassador in Great Britain ( Page) to the Secretary of State
[Received 10.10 p.m.]
1155. War Trade Board [from Sheldon]:
No. 1251. Referring to Department’s 292, your 886, July 18, 7 p.m., and Embassy’s No. 810, our 1156, August 2, I have discussed the matter further with Foreign Office and their feeling is that a general policy such as is suggested applying to all non-indigenous goods would be a mistake, as it might be construed as a practice to secure additional tonnage for Allied service. The Foreign Office is in sympathy with the general object desired but would prefer that each case should be dealt with on its own merits. Where there is an actual or positive future shortage, the export license should be granted as a very special favor to the neutral concerned on the condition that quantity of commodity approved for export shall be replaced by the neutral. It is, of course, open to the United States, or any of the Allies, to say that they cannot spare any specific article on the [Page 993] ground of home requirements and to refuse export licenses unless arrangements are made to replace the quantity exported. The reason for favoring the above plan as for a general policy applying to all non-indigenous articles, is the belief that our object will be attained without subjecting the Allies to hostile criticism.