File No. 656.110/125
The Ambassador in Great Britain ( Page) to the Secretary of State
[Received January 10, 9.47 a.m.]
8205. War Trade Board from Sheldon:
No. 11. There is a matter of general policy which I think ought to be brought to your attention as regards Swedish and Dutch negotiations. The French delegates and, I believe, the British Foreign Office fear that you may be led to adopt unconsciously what might be called an individualistic policy and as one of the reasons for this fear I mention the provisional Dutch tonnage negotiations. Taylor received proposal from Snouck which was cabled you on December 11.1 Shortly thereafter the British and French Embassies in Washington were informed that their Governments approved this plan subject to some modification as to the amount of commodities allowed to be imported to Holland. In spite of the desirability of quick action which would secure tonnage, considerable time was allowed to elapse before you rejected this proposal and substituted a more drastic one. It now looks quite probable that these harsher terms may be accepted by the Dutch, but it is a question whether the terms more favorable to the Dutch of the original proposal should not have been accepted in view of the time lost and the knowledge that the Dutch must have, that you were not willing to agree to conditions approved by the British and French. In this connection, while fully realizing that the concessions which will be granted to the Dutch will in the definite agreement be mainly commodities from America which cannot easily be spared, the fact should not be lost sight of that both the British and the French have had negotiations with Holland and the other neutrals since the war started, have thereby gained considerable experience, and as these two countries have a more immediate stake in the result of the negotiations than can have America, I cannot refrain from pointing out the advisability of being in a large measure guided by their views as to what they are willing to impose in the general agreement in the way of restrictions and to allow in the way of rations, provided always of course that the rations are available.
Furthermore, their views as to the advisability of any actions which would have a political effect to the advantage of the Allies, should, I am sure you will agree, receive favorable consideration and, in this connection, the Foreign Office pointed out to me today that the British Government thought it important at the earliest possible [Page 1385] moment to arrange matters with Holland as the Central Powers are straining themselves to create an unfavorable opinion in Holland. We are informed on good authority that Germany has offered Holland 100,000 tons of cereals for immediate delivery, and while one may be disposed to consider this in the nature of bluff, it is not unreasonable to expect that if Germany could upset our coming to an arrangement with Holland which would give us without requisition so much desirable tonnage, it would be a cheap price for the Central Powers to pay.
I am informed that there is considerable likelihood of the sand and gravel transit measure being amicably settled and cable service resumed in the near future. I should like to ask you, without your going into details, to give some general idea of your opinion on the cable sent to the Department of State on January 2 concerning Dutch negotiations.
- See telegram No. 7923, Dec. 11, 1917, from the Ambassador in Great Britain, Foreign Relations, 1917, Supplement 2, vol. II, p. 1155.↩