800.24/335: Telegram
The Secretary of State to the Chargé in Iraq (Farrell)
140. Department’s telegram no. 89, May 6, 10 p.m. and Legation’s despatch no. 1913, May 13 and telegrams nos. 120, June 16, noon, and 125, June 22, noon.9
1. With respect to civilian supply organization in Iraq, you should consult Frederick Winant, who has been appointed United States [Page 346] representative on the M. E. S. C. and is now proceeding to take up his duties. Winant is familiar with all aspects of our supply policy and organization and will be in a position to help you determine the manner in which United States representatives can be of assistance in connection with Iraqi supply problems.
2. In so far as they involve supplies from the United States, Department is in agreement with points made in British Foreign Office telegram as summarized in your 120. With respect to paragraph numbered (2) of British telegram, the proposal was made by the British and accepted by Department that lend-lease supplies for civilian populations in Middle Eastern countries should be sold rather than given away. This policy was adopted, primarily, in order to combat inflationary tendencies in those countries and because free issues to the civilian population would have a bad effect on the efforts of the British to bring about increased food production locally in order to conserve shipping space.
It is expected that the net proceeds after allowing for expenses of distribution will be held in a depository such as a bank or the treasury of the country in which distribution occurs, in the local currency of that country, to the credit of the United States. This Government would not expect to transfer such funds into dollars, but would use them locally for its own expenditures.
3. Department does not understand statement that the Secretary of State requested a list of lend-lease requirements from the Iraqi Minister. All Iraqi requirements are to be submitted through local committees and M. E. S. C.
4. If the M. E. S. C. desire to inform Iraqi Government of its recommendations to London and Washington regarding civilian supplies for Iraq, the Department has no objection. The appropriate authorities here will inform Iraqi Minister as soon as definite action is taken on the recommendations, if that is the desire of the Iraqi Government.
- Despatch No. 1913, May 13, and telegram No. 125, June 22, noon, not printed.↩