515 Mr R. G. Casey, Minister to the United States, to Department of External Affairs

Cablegram 457 WASHINGTON, 20 June 1941, 10.53 p.m.

SECRET

Your telegram No. [522] [1], and later telegrams exchanged.

State Department seems no nearer being willing or ready to discuss co-ordination of economic sanctions.

Discussion today with the Economic Section of the British Embassy makes it clear that the United States has unquestionably, by adding to export licence lists particularly over the past six months, virtually stopped exporting any strategical commodities to Japan except petroleum products.

Petroleum products today put on the export control list, although as yet unknown if it is intended to stop supplies to Japan.

In addition, United States has gone a considerable distance in concluding agreements with the South American countries, including Mexico, whereby in effect export licences for strategical materials to Japan are not granted, I understand that this desirable objective is being achieved by United States agreeing to purchase South American and Mexican export surpluses of strategical commodities.

The above unilateral action by United States is typical of their methods. They dislike co-ordinated action with other countries, but wish always to be able to say that their action was spontaneous, and not stimulated by other countries or by other than their own interests.

Above makes one wonder whether any good purpose served by seeking discussions to co-ordinate policy in the above regard with the State Department.

CASEY

1 Dispatched 14 May. The number has been corrected from the Washington copy on file AA: A3300, 128.

[AA: A981, FAR EAST 20B, i]