740.24112A/246: Telegram
The Secretary of State to the Chargé in Bolivia (Woodward)
580. Reference your A–199 of May 11. The excerpt from Russell’s speech which you refer to is as follows:
It has apparently been assumed by some of the firms that have cooperated with the Axis that the Proclaimed List and the sanctions which are based upon it will terminate with the cessation of hostilities in Europe and that listed firms and individuals will then be restored to normal trade facilities. There is no basis for such an assumption. It need not be stated that this government does not consider the Proclaimed List as an appropriate part of the type of normal peace-time trade policies which it hopes eventually will be established. It is clear, however, that there will inevitably be a transition period from war to [Page 521] peacetime conditions and that the list cannot be withdrawn upon the termination of armed conflict. In view of the total character of the present conflict and its vast impact upon commerce it will necessarily take time to effect adjustments of economic warfare controls. Such adjustments will be carried out with regard to specific circumstances. The problem of eliminating economic warfare controls and in particular the Proclaimed List is believed in general to be capable of prompt solution in regions far removed from the scene of conflict where the spearheads of Axis aggression have been eliminated. The withdrawal of such controls may be expected to be slower with respect to areas adjacent to the scene of conflict and particularly with respect to nationals of, or residents in, neutral countries who have engaged, or who may engage, actively in equipping or servicing the military machine of the enemy—which the Allied Governments are determined to destroy—or who have rendered other important aid to the enemy.