Evening star., 1916-07-22
Diplomat Discusses Possible
Effect of Action Against ;;
American Firms.
ALLIES NOW SEEKING
BIG LOANS IN THE U. S.
Possibility Of Retaliation by q. S.
Business Men Almost Un.
limited, Is Belief. T.

LONDON, July Fl (delayed).-A neu-
trail diplomat exceptionally well In
formed regarding the details Of the
economic war which Great Britain is
waging on the central powers declared
today to a representative OF the Asso-
ciated Press that he regarded the re
cent publication by the British govern
ment of the blacklist of certain Ameri-
can firms as the greatest possible
tactical blunder at this stage. when
French loan is about to be fioated in
America. and important Russian nnan-
cial arrangements are under way there.
1T is a blunder." continued the dipio-
mat. because 1t is unnecessary. since
for months most Of the firms on the list
have been on sub-rosa blacklist. AT
any rate. they were not. on the white
list. SO the government had complete
control over any OF their operations
which touched British territory.
Not Fully Approved.
The financial section of London IL by
no means unanimous in approval of
the measure, even those in It's favor
being dissatisfied with its scope. con-
tending that some omissions from the
list are more significant than inclu-
sions. One large banking institution
on the list maintains close connection
with one of London's largest banks.
and at the request of the latter some
time ago made extensive changes in
it's directorate in order to eliminate
men Objectionable to its London cor
LII. hov h
wants to know why 1t is prevented
from CARRYING on its American busi-
ness through the blacklisted bank
while American firms known to have
been actively connected with German
loans and other activities are still on
the white list.
Its publication at this time is a
mystery One possible theory is that
the governments hand was forced by
recaicitrant British firms. which may
have declined to give up trading with
firms not on the white list until their
position was made legally untenable
by the actual PRONUNCIATION OF the hst.
If the government had desired to warn
the British public. wider pubiicity
would have been sought. The list was
published only in the oficial London
Gazette None of the London papers
printed 1t.
"The possibility of legal retaliation
against the blacklist Is question for
international lawyers. but the posi-
bility of unoficial retaliations is al
most unlimited
peachable Americanism might make the
position of British traders in a number
of fertile fields decidedly uncomfort-
able"
Uneasiness Exists.
Great uneasiness exists among Amer
ican branch houses here whose home
firms have any financial or trading con-
nection with Germany. but they refuse
to discuss the question for publica-
ton. fearing the consequences OF any
indiscreet utterances.
Attention is called in these circles to
the appearance on the South American
list Of several firms declared to be
tions which invested heavily in the An
glo-French loan.
Discussing these assertions Lord
Robert Cecil. minister Of war trade.
stated today that il was quite possible
the government had not placed certain
American firms with close German con-
nections on the list for the very good
reason that they had proved friends OF
the allies in regard to the anglo
French loan. On the other hand, ne
said if other friends of the allies were
suffering through the inclusion Of some
of their connections in the list the
British government was ready to make
necessary amends.
List May Be Increased.
Lord Robert declared that names
might be added to the list from time
to time, while others might be re-
moved, but that the blacklist as 1t now
stands represents the American total.
its entities being less than the pub
lished eighty. as names of partners in
firms were repeated. He admitted the
possibility of making mistakes in the
compila ton of the list, but stated firm
ly that its publication was much bet
ter than a possible extreme law pro-
viding that no British subject should
trade with the enemy. no matter what
his domicile, enforcement of which doc
trine would entail much greater hard
ship upon innocent parties than the
present method.