611.6131/456: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Davies)
102. Your 176, July 16, 11 p.m. The Department believes that it may be possible to work out here a draft of an exportation clause which will be satisfactory to both sides, the inclusion of which will of course be contingent upon the undertaking for purchases of [Page 429] $40,000,000. However, in order that proper consideration may be given to all the factors involved it will not be possible to forward to you the text before July 19. In the meantime it is desired that you ascertain, without commitment on the part of this Government, whether there would be any objection to the addition to the exceptions contained in paragraph 2 of article 11 of the Netherlands Agreement, of a sentence along the following lines: “It shall be understood that any action which may be taken by the President of the United States under authority of article [section] 2b of the Neutrality Act of 1937 in regard to the passage of title of goods shall not be considered as contravening any of the above provisions of this section relating to exportation.”
It would be most helpful if the Department could have your reply before Monday.75
- July 19, 1937.↩