JP.
FOR DISCUSSION AT POLICY COMMITTEE ON JULY 11th 1940.

The question as to the line to he adopted by H.M. Government in regard to foodstuffs from the United States entering German occupied territory and unoccupied France, has now become urgent. Lord Lothian's cable No.1249, as attached, is evidence of this.

Within the last few weeks, Congress has appropriated $50,000,000 to be used for the purchase of foodstuffs for ultimate distribution by the American Red Cross.

There are, at the present time, big surplus stocks of food in the United States, which have been bought by the Government. Consequently, there will be great political, as well as humanitarian pressure to get this surplus distributed in the above areas.

Mr. David Bruce, a member of the Executive Committee of the American Red Cross, has now arrived in this country to act as liaison officer between Ambassador Kennedy's Committee here and the parent body in Washington. He has informed me confidentially, that an unofficial request has already been made by the Belgian Government, with the full support of the German Government, for foodstuffs to be sent to Belgium. Mr. Bruce believes that similar requests are about to be made from other German occupied territories.

A Committee has already been set up under the Chairmanship of Nelson Dean Jay, the American Red Cross Delegate to France, backed by a powerful American Committee, the actual warehousing and distribution to be carried out by an organisation called “Secours Americain aux Victimes de la Guerre.” This is an affiliate of the French Red Cross, and was conceived and initiated by Mr. Wayne Taylor, the European Delegate of the American Red Cross.

Working arrangements have already been pretty fully discussed and Red Cross supplies, including foodstuffs, would be delivered from the ships to an American Red Cross warehouse, where the goods would be checked and turned over to the “SAVG” This latter organisation would then transport the supplies to distributing centres where approved local organisations would call and receipt for the supplies.

It should be remembered that a precedent was established last winter when $400,000 worth of supplies, including medical and hospital supplies, clothing, bedding and condensed milk, were shipped to Poland for distribution there by the American Red Cross, and permission was given by the Ministry of Economic Warfare for these goods to be sent through. They were not at all happy, however, about the measures of control which it was proposed should be exercised in the distribution of these supplies.

The Ministry of Economic Warfare takes a very strong view that it would seriously damage the blockade position of this country should foodstuffs be allowed to enter occupied territory and unoccupied France. They further feel that it may very gravely handicap our War effort. If this view is shared by the Government, then immediate propaganda should be set on foot to show America that the reason for the shortage of available foodstuffs is due to the German blitzkrieg.

We have already started this propaganda, and judging by the monitoring reports attached to this note, our efforts have been extremely successful. Germany denies that there is any shortage of food and states that she will be well able not only to feed herself, but her occupied territories as well. This same line should therefore be built up by every means at our disposal both here and in the United States.

At the same time, I would suggest that a cable should be sent 155 - 2 -to Lord Lothian informing him of the situation, and asking him to sound out the President as to the possibility of the latter broadcasting to the American people his own views as to the damage which might be done in prolonging the War, by the sending of large quantities of food.

It may be added that the Harvest is about to begin and although it may be a poor one, there will be no immediate need for food to be sent from America. When this year's corn supply has been exhausted, then the Germans may complain - but there is no cause for it just now.

I would urge the utmost speed in this matter, as judging from Mr. Bruce's remarks, pressure from the occupied territories will shortly begin