Office of the Historian

740.4112A/12–2744: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

London, December 27, 1944—7 p.m.
[Received December 27—6:55 p.m.]

11469. For WT. Black List Committee has reviewed its policy regarding additions to Statutory List in Eastern Hemisphere and following is substance of extracts from draft circular instructions to British Missions in Eastern Hemisphere:

(1)
Primary purpose of Statutory List has been to deter neutrals from assisting enemy’s war effort politically or commercially. It is no longer necessary to deter persons in Turkey, Spain and Portugal from overland trade with Germany inasmuch as these countries are now cut off from direct land communication with Germany. Swedish and Swiss Governments have extended far-reaching limitations on their most objectionable trade with Germany.7 Since some enemy trade is possible in these countries there is still a field to which the Statutory List supplemented with threat of listing can usefully be employed, but this field has been considerably reduced. Furthermore, because of the increased effect of the threat of listing with the alternative of accepting an undertaking at this stage of the war should reduce the number of necessary publications.
(2)
There is, however, a new class of listing case which has recently become prominent, namely persons holding or taking custody of German assets possibly with a view to concealing them now and after Germany’s defeat. Committee felt it is undoubtedly desirable to publish names of such persons. Listing would help to deter others from doing likewise and in suitable cases would probably be accompanied by local publicity regarding reason for this action. However, [Page 202] Committee feel distinction should be drawn between those who have engaged in such activity and those who may hereinafter act as cloaks for Germans. Not only is it futile to hope to trace at this time all those who may later be prepared to act in this capacity, but the fact of publishing names of those so suspected would cause Germans to drop them and seek assistance of others who may be unknown to us. Furthermore, since purpose of listing such persons would be to retain them after Germany’s defeat their specification would occasion lengthy postwar list in which many of the names would only be potential and not actual offenders. Committee’s decision regarding potential offenders was occasioned by Lisbon Status Committee’s statement of policy regarding listing of German partners and associates of German-controlled firms in Portugal, in which connection see Lisbon’s Blocked Nationals Report 994, October 308 and item SC.65 of the Standing Committee agenda transmitted with Embassy’s despatch 19840, December 14.8
(3)
On basis of foregoing Black List Committee has decided to limit acceptance of future recommendations for additions to Statutory List for Eastern Hemisphere normally to following categories:
(a)
Cases in which deterrent effect can still be exercised during hostilities;
(b)
Important German-controlled firms which have hitherto escaped listing;
(c)
Persons now [known] to hold or conceal or to be transferring important enemy assets, loot and assets belonging to enemy leaders and their associates;
(d)
Other cases in which listing would be approximate; e.g. where a firm would have qualified for published listing had its activities become apparent at an earlier stage and where failure to list would lead to unfavorable comparisons with firms already listed and would evoke criticism from loyal firms and individuals who have stood by us in more difficult times. Generally speaking it is expected that such circumstances will apply only in cases where candidates are considered good cases for retention on Statutory List after Germany’s defeat.
(4)
It is anticipated that this decision together with decisions regarding deletions from Statutory List (reEmbstel 6965, August 26) and suspension of additions to Black List (reEmbstel 9377, October 30) will result in certain stabilization of war trade lists.
(5)
MEW has agreed to withhold despatching of these instructions until January 5 to give Department opportunity to comment. Please give cable urgent designation to avoid delays in decoding here. If Department agrees with Committee’s decision Embassy requests authorization to inform American Missions in London coordination area of Department’s concurrence. At the same time Embassy would like [Page 203] to be able to inform American Missions of Department’s views regarding future additions to Confidential List.

Winant
  1. For documentation on efforts by the United States, sometimes jointly with the United Kingdom, to cut off exports from these neutrals to Germany, see vol. iv, pp. 84 ff.; pp. 297 ff.; pp. 456 ff.; pp. 700 ff.; and vol. v, pp. 814 ff.↩
  2. Not printed.↩
  3. Not printed.↩