US Economic Statecraft for Survival 1933-1991 Part 8

15 Dallek, Roosevelt, p. 194.

16 Ibid., p. 148; Wilz, From Isolation to War, p. 62.

17 For an interesting perspective on this see, Neil Forbes, Doing Business with the n.a.z.is: Britain's Economic and Financial Relations with Germany 193139 (Frank Ca.s.s, IIford, 2000).

18 Morgenthau Diary, vol. 288, pp. 2769, 'Effectiveness of Licensing Control over Aviation Gasoline, Aviation Lubricating Oil and Tetraethyl Lead', White to Morgenthau, 5 Aug. 1940; ibid., Ullman to White, 5 Aug. 1940, 'The Petroleum Situation in j.a.pan'. Both memoranda give detail on j.a.panese policies for acquiring and stockpiling oil. Baldwin makes the point well about US sanctions sending ineffective messages because of the way that they were imposed, Economic Statecraft, p. 173. See also D.G.Boudreau, 'Economic Sanctions and Military Force in the Twenty-First Century', European Security, 6 (1997), and G.C.Hufbauer and J.S. Schott, Economic Sanctions Reconsidered: History and Current Policy (Inst.i.tute for International Economics, Was.h.i.+ngton DC, 1985; 2nd ed., with Ann Elliott, 1990), pp. 16370.

19 FDR Lib., PSF box 160, folder: Neutrality 193538, Bullitt to Roosevelt, 19 May 1939, and R.Walton Moore to Roosevelt, 2 June 1939. 20 Wilz, Isolationism, p. 72. 21 Hull, Memoirs, p. 693. 22 FDR Lib., PSF box 32, folder: GB 1937, Chamberlain to Roosevelt, 4 Oct. 1939.

23 Ibid., box 8, folder: State Department 193738, Hull to Roosevelt, 24 Nov. 1937 24 Ibid., Stimson to Roosevelt, 15 Nov. 1937.

25 Ibid., box 160, folder: Neutrality 193941, Roosevelt to Welles and Hull, 28 March 1939.

26 Morgenthau Diary, vol. 284, pp. 20111, 19 July 1940, memo of conversation at British Emba.s.sy the previous evening; Offner, Origins, pp. 18791.

27 Ibid., vol. 285, pp. 31724, 23 July 1940, memo of conversation between Stimson and Morgenthau.

28 Ibid., vol. 287, pp. 2513, 26 July 1940, telephone conversation between Morgenthau and Ickes; ibid., p. 173, 26 July 1940, Treasury Group Meeting.

29 Ibid., vol. 294, pp. 213, Morgenthau to Roosevelt, 14 Aug. 1940; ibid., vol. 302, pp. 1523, minutes of meeting, Morgenthau, Lothian et al., 3 Sept. 1940.

30 Feis, Road to Pearl Harbor, pp. 106, 122.

31 FDR Lib., PSF box 9, folder: State Department 193940, Grew to Roosevelt, 14 Dec. 1940.

32 T.A.Wilson, The First Summit: Roosevelt and Churchill at Placentia Bay (rev. ed., Kansas UP, Lawrence, 1991); Douglas Brinkley and David Facey-Crowther (eds), The Atlantic Charter (St Martin's, New York, 1994).

33 Boudreau, 'Economic Sanctions'.

34 M.L.Chadwin, The Hawks of World War 2 (University of North Carolina Press, Chapel Hill, 1968), p. 210.

35 Gordon and Dangerfield, Hidden Weapon, p. 46.

36 Malloy, Sanctions, p. 137.

37 FDR Lib., PSF box 7, folder: Navy 193640, Chief of Naval Operations, Standley, to Secretary to the President, Mclntyre, 24 Sept. 1936.

38 Ibid., box 32, folder: GB 1939, Chamberlain to Roosevelt, and his reply, 31 Aug. 1939.

39 Hull to Davis, 20 Nov. 1937, quoted from Dallek, Roosevelt, p. 150; see also Hull, Memoirs, vol. I, ch. 39.

40 Bascom N.Timmons, Jesse H.Jones: The Man and the Statesman (Henry Holt, New York, 1956).

41 Gordon and Dangerfield, Hidden Weapon, p. 44.

42 Neil Forbes, 'Trading with the Potential Enemy', paper given at the International History Group (of BISA) annual conference at University of Wales Conference Centre, Gregynog, September 2000.

43 Ibid., p. 33; Matson, Neutrality and Navicerts; W.M.Medlicott, The Economic Blockade, 2 vols (Longmans Green, London, 1952).

44 Ibid.; and Matson, Neutrality and Navicerts.

45 Quoted from ibid., pp. 89, citing source FRUS vol. I, p. 772, memo by John Hickerson, 9 Nov. 1939.

46 Morgenthau Diary, vol. 282, pp. 1516, telephone conversation between Hull and Morgenthau, 11 July 1940.

47 FDR Lib., PSF box 33, folder: GB Jan.Sept. 1940, memo of conversation between Hull and Lothian, 5 July 1940, and aide memoire.

48 Ibid.

49 Morgenthau Diary, vol. 288, pp. 2834, White to Morgenthau, 5 Aug. 1940. 50 FDR Lib. Wallace Papers, box 80, folder: Frances Perkins [sic, should be Milo Perkins], Roosevelt to Perkins, 17 Dec. 1941.

4 The demise of neutrality and the development of economic instruments of coercion 1 Gordon and Dangerfield, Hidden Weapon, p. 222. Dangerfield was head of the Blockade Division, Foreign Economic Administration.

2 Hull, Memoirs, vol. 2, p. 1345.

3 Ibid., pp. 13478.

4 Gordon and Dangerfield, Hidden Weapon, p. 225.

5 Quoted from James J.Dougherty, The Politics of Wartime Aid: American Economic a.s.sistance for France and French North Africa 194046 (Greenwood Press, Westport, 1978), p. 24, citing Leahy Diary, 7, 28 Feb. 1941.

6 Gordon and Dangerfield, Hidden Weapon, pp. 727.

7 Ibid., pp. 5960.

8 FDR Lib., Wallace Papers, box 88, folder: President 1942, Wallace to Roosevelt 18 and 20 March and 16 April 1942; Roosevelt to Wallace 3 April 1942. Sumner Welles, in particular, had opposed BEW's vigorous line on economic warfare and had criticised some of his juniors for helping and sympathising with BEW.

9 Ibid., box 80, folder: Frances [sic: Milo] Perkins, Perkins to Wallace, 19 March 1942.

10 Ibid., box 88, folder: President 1942, Wallace to Roosevelt, 10 Sept. 1942.

11 Ibid.

12 Roosevelt Lib., PSF, box 6, folder: BEW, Hull to Roosevelt in response to the President's 12 September request for a reply to Wallace, and Roosevelt to Wallace, 15 Oct. 1942.

13 Ibid.

14 Warren F.Kimball, Churchill and Roosevelt: The Complete Correspondence, 3 vols (Collins, London, 1984), vol. 1, p. 639, Churchill to Roosevelt, 25 Oct. 1942.

15 Ibid.

16 Wallace Papers, box 88, folder: President 1942, 'Trade Toward Sweden', BEW Office of Economic Warfare a.n.a.lysis, 3 Nov. 1942.

17 Ibid., 'Trade Policy Toward Sweden', report by Staff at BEW and approved by representatives from State, Navy and War Production Board: War Department dissented. Policy Conclusion, 5 Nov. 1942; and Wallace to Roosevelt, 16 Nov. 1942 enclosing BEW resolution with agreement of the Joint Chiefs of Staff, 12 Nov. 1942.

18 Ibid., Morgenthau and Patterson to Wallace, undated.

19 J.M.Blum (ed.), The Price of Vision: The Diary of Henry A.Wallace 194246 (Houghton Mifflin, Boston, 1973), p. 132.

20 Wallace Papers, box 88, folder: President 1942, Wallace to Roosevelt, 16 Nov. 1942.

21 Hull, Memoirs, pp. 13458.

22 Hopkins Papers, box 156, folder: Stanton Griffiths, Griffiths to Donovan, 9 Feb. 1943.

23 In his Memoirs, pp. 13467, Hull writes of the opposition coming from the War and Navy departments, but Morgenthau had also vigorously opposed trade with Sweden, whereas the position of the Navy seems to have been less hard-line.

24 Portugal, Spain, Turkey and Switzerland also had to be dealt with in similar ways: see Gordon and Dangerfield, Hidden Weapon; Gabriel, Neutrality After 1941; Mecllicott, Economic Blockade.

25 Ibid., p. 1347.

26 FDR Lib., PSF, box 149, folder: FEA, Crowley to Roosevelt, memo 'Current Bearing Negotiations with Sweden', undated, and Crowley to Roosevelt, 25 May 1944, 'Sweden'.

27 FDR Lib., c.o.x Papers, box 82, folder: economic warfare: Sweden, Currie to Patterson, 23 June 1944.

28 FDR Lib., PSF box 9, folder: State Department, 194445 (1), Hull to Roosevelt 12 July 1944.

29 Kimball, Churchill-Roosevelt Correspondence, vol. 3, p. 245, Roosevelt to Churchill 13 July 1944.

30 Chadwin, Hawks of World War 2, p. 210.

31 Kimball, Churchill-Roosevelt Correspondence, vol. 3, p. 257, Churchill to Roosevelt, 27 July 1944.

32 Hull, Memoirs, pp. 13478.

33 Gabriel, Neutrality After 1941, pp. 512.

34 H.L.Stimson and McGeorge Bundy, On Active Service in Peace and War (Harper, New York, 1947), p. 171.

35 Alan P.Dobson, US Wartime Aid To Britain (Groom Helm, London, 1986).

36 These are official US Government figures quoted in Bruce W.Jentleson and Thomas G.Patterson (eds), Encyclopedia of US Foreign Relations, 4 vols (Oxford UP, Oxford, 1997), vol. 3, p. 61, entry, 'Lend-Lease'.

37 R.G.D.Alien, 'Mutual Aid Between the US and the British Empire', Journal of the Royal Statistical Society, 1946, 109, p. 245. The figure calculated for Lend-Lease aid received by Britain here is $27 billion.

38 For those who wish to pursue the Lend-Lease story in detail, the following will be useful: for its origins Warren F.Kimball, The Most Unsordid Act: Lend-Lease 1939 1941 (Johns Hopkins UP, Baltimore, 1969); for an insider's account heavily biased towards celebrating Lend-Lease for propaganda purposes, Edward R. Stettinius jr., Lend-Lease: Weapon for Victory (Penguin Special, London, 1944); for detail of the Foreign Economic Administration's running of Lend-Lease from 1943 onwards, Stuart L.Weiss, The President's Man: Leo Crowley and Franklin Roosevelt in Peace and War (Southern Illinois UP, Carbondale and Edwardsville, 1996); for Britain, Dobson, US Wartime Aid to Britain; for the Soviet Union, George C. Herring, Aid to Russia, 194146: Strategy, Diplomacy, and the Origins of the Cold War (Columbia UP, New York, 1973), see also his 'Experiment in Foreign Aid: Lend-Lease 1941 1945', Ph.D thesis 1965, University of Virginia, and 'Lend-Lease Aid to Russia and the Origins of the Cold War 194445', Journal of American History, 1969, 56, pp. 93114; for France, Dougherty, The Politics of Wartime Aid; and for the Cold War, L.Martel, Lend-Lease Loans and the Coming of the Cold War (Westview Press, Boulder, 1979).

39 The USA had never shown much compunction about using coercive power to compromise the integrity of countries in Latin America, but using such power against mature democracies was a new policy departure.

40 Brandes, Herbert Hoover and Economic Diplomacy.

41 Kimball, Churchill-Roosevelt Correspondence, vol. 1, pp. 4951, Churchill to Roosevelt, 7 Oct. 1941.

42 Alan P.Dobson, Peaceful Air Warfare: The United States, Britain and the Politics of International Aviation (Clarendon, Oxford, 1991).

43 Trade within the Empire and Commonwealth was subject to lower tariffs than trade from outside.

44 PRO, CAB 66, WP(41)202 and 203; H.V.Morton, Atlantic Meeting (Methuen, London, 1943); Wilson, The First Summit.

45 PRO, CAB 66, WP(42)21, 5Jan. 1942, and CAB 65, WM(14)42, 2 Feb. 1942.

46 Kimball, Churchill-Roosevelt Correspondence, vol. 1, pp. 3578 and 3601.

47 Sumner Welles, Seven Decisions That Shaped History (Harper Bros, New York, 1951), ch. 5.

48 National Archives of the USA, Was.h.i.+ngton DC, decimal file doc.u.ment 841.24/720, Winant to Secretary of State, 3 Sept. 1941 (hereafter such decimal file numbers will be cited without location); Cmnd 6311, 'The Export White Paper', 10 September 1941; Alan P. Dobson, 'The Export White Paper of 1941', Economic History Review, 1986, 39, pp. 5976.

49 Quoted from Herring, 'Experiment in Foreign Aid: Lend Lease 194145', PhD thesis, citing transcript of telephone conversation Oscar c.o.x and Stettinius, 15 Dec. 1941, Stettinius Papers, OLLA file, University of Virginia, Charlottesville.

50 FO 371/40883, memo by Dalton, 'Supersession of the Export White Paper', 28 June 1944.

51 FDR Lib., Morgenthau Diary, 592, p. 292, Stettinius to Morgenthau, 3 Dec. 1942 in which he quotes c.o.x memo to Stettinius 23 Nov. 1942, also pp. 110 and 15078, 17 and 18 Dec. 1942; US National Archives RG 169, box 163, minutes of Dollar Position Committee, 29 Dec. 1942; ibid., box 721, BEW Board Meeting, 29 Dec. 1942.

52 FDR Lib., PSF, box 49, folder: GB 194445, Roosevelt to Churchill, 22 Feb. 1944.

53 841.24/2197A, draft letter and memo by Acheson, 21 Feb. 1944; Morgenthau Diary, 709, p. 109, 13 March 1944.

54 FO 371/40881, Anderson to Churchill, 24 Feb. 1944.

55 Kimball, Churchill-Roosevelt Correspondence, vol. 3, pp. 356 and 656.

56 PRO, CAB 66 WP(43)566, Hudson memo 14 Dec. 1943 and WP(43)576, Amery memo, 20 Dec. 1943; Kenneth Young, Churchill and Beaverbrook: A Study in Friends.h.i.+p and Politics (Eyre & Spottiswoode, London, 1966), p. 261; Lionel Robbins, Autobiography of an Economist (Macmillan, London, 1971), p. 203.

57 A.Van Dormael, Bretton Woods: Birth of a Monetary System (Macmillan, London, 1978); Fred Block, The Origins of International Economic Disorder (California UP, California, 1977); Gardner, Sterling-Dollar Diplomacy; R.B.Woods, A Changing of the Guard: Anglo-American Relations 194146 (North Carolina UP, Chapel Hill, 1990); Dobson, Politics of the Anglo-American Economic Special Relations.h.i.+p.

58 Dobson, US Wartime Aid to Britain.

59 PRO, FO 371/45699, Keynes, 'Overseas a.s.sets and Liabilities of the UK', 12 Sept. 1945.

60 Quoted from Robert A.Pollard, Economic Security and the Origins of the Cold War (Johns Hopkins UP, Baltimore, 1975), p. 13, citing source Pasvolsky Papers, National Archives of the USA, RG 59, Pasvolsky Office Files, Gordon Leddy to Leo Pasvolsky, 16 Feb. 1944.

61 Thomas G.Patterson, Soviet-American Confrontation: Postwar Reconstruction and the Origins of the Cold War (John Hopkins UP, Baltimore, 1973).

62 Herring, 'Lend-Lease Aid to Russia', at p. 95; the French were required to pay cash for civilian goods, see Dougherty, Politics of Wartime Aid, p. 3.

63 FRUS 1945, vol. v, p. 998, Elbridge Durbrow, Chief Eastern European Affairs, State Department, memo 13 May 1945.

64 US National Archives, RG 169, box 163, folder: British capital goods, Knollenberg to Crowley, 15 Oct. 1943.

65 M.Djilas, Conversations with Stalin (Penguin, Harmondsworth, 1963), p. 114 66 Daniel Yergin, Shattered Peace: The Origins of the Cold War and the National Security State (Andre Deutsch, London, 1978), pp. 368; Kimball, The Juggler.

67 FDR Lib., PSF box 68, Nelson to Roosevelt, 6 Nov. 1943, memos on talks with Molotov, 12 Oct., and Stalin 15 Oct. 1943. Patterson, Soviet-American Confrontation, pp. 201; Pollard, Economic Security, pp. 1315.

68 FRUS 1943, vol. iii, pp. 7889, Harriman to Secretary of State, Nov. 1943.

69 The Export-Import Bank of Was.h.i.+ngton was established in 1934, after US formal recognition of the Soviet Union in 1933, in order to help finance exports to the Soviets.

70 Martel, Lend-Lease Loans, p. 130.