811.24 Raw Materials/378
The Department of State to the Canadian Legation
Careful consideration has been given, by the agencies of this Government most concerned, to the memorandum of the Canadian Legation, dated October 27, 1939, presenting factual information upon the exportation from the United States to Canada during the past several years of a number of the materials listed in the statement issued by the Army and Navy Munitions Board and released to the press jointly by the War and Navy Departments on October 11, 1939.
The statement of the Army and Navy Munitions Board directed attention to the attempts of foreign purchasers since the outbreak of the present war in Europe to obtain in the United States supplies of strategic materials which have been imported into this country. The statement commented upon the fact that such sales are condemned by the more patriotic and responsible dealers and manufacturers in the United States. There was no mention of the already-existing reexport trade in many of these materials and there was no intention to eliminate that trade. It was clearly understood of course that limited quantities of materials imported into the United States are purchased in this market as a usual practice for reexport to other points on this continent, and that in the past the total United States imports of these commodities have covered such reexports. This trade may be considered “normal” and presumably may continue without conflict with the national interest of this country in safeguarding supplies of such materials so long as imports of these materials into the United States from foreign sources of supply are not unduly impeded and so long as reexports in such usual channels are not increased to abnormal amounts.
In the event that there is any misunderstanding on the part of American exporters of the intention of the statement of the Army and Navy Munitions Board on this subject, inquiries addressed to the War and Navy Departments or to this Department will, at least for the present, elicit responses along the lines indicated above.