File No. 656.119/878
The Secretary of State to the Chargé in Great Britain ( Laughlin)
[Telegram]
Washington,
November 16, 1918.
2850. For Sheldon [from War Trade Board]:
No. 1642. Your 1874, Embassy 3737, undated [3727, November 14], received November 15. We approve signing of Dutch agreement subject to following modifications:
- 1.
- The paragraph of the agreement numbered 1 should, unless the Dutch seriously object thereto, provide that bunkering shall be conditional upon the reaching of a satisfactory agreement as to routing, etc. We assume that this agreement as to routing will also provide for the carriage by Dutch vessels of passengers and cargo when outward bound. It may be very important to secure space on outward bound vessels to transport American troops and supplies from France. The routing so far as Associated Governments are concerned should be approved by Allied Maritime Transport Council. This need not be expressed in Dutch agreement but should be understood among Associated Governments.
- 2.
- The paragraph of the agreement numbered 2 should, after the words “provisions of” contain the words “means to permit the Associated Governments to make payment in Holland due them either by means of,” and there should be added to this paragraph the words “or otherwise.”
- 3.
- The paragraph of the agreement numbered 3 should be modified to read substantially as follows: “The Royal Netherlands Government will recognize the agreement made between the N[etherlands] O[versea] T[rust] and the Governments of Great Britain, France and Italy as well as a similar agreement to be concluded between the [Page 1571] N.O.T. and the War Trade Board of the United States and consents to the control of imports and exports provided for in such agreements. The Royal Netherlands Government will take the necessary steps to maintain an effective prohibition of exports as provided for in the agreements above referred to and undertakes that the Netherlands Oversea Trust shall continue in existence during the currency of this agreement, exercising such functions as may be necessary to perform the terms of those agreements.”
- 4.
- With reference to paragraph of the agreement numbered 4, we agree with your suggestion that a clause be added to effect that export licenses from any of the Associated Governments shall be conditional upon such terms regarding place, port, delivery, and time as such Governments may desire to impose. We include the word “time” as agreement does not appear to provide for quarterly or periodical shipment of rations.
- 5.
- With reference to the ration schedule set out in your 1857, Embassy 3679, undated [November 12], received November 13.1 We are prepared to accept the same subject to the comments contained in our 1623, Department’s 2812, November 14, 8 p.m.,2 and subject to the modification of the item of oils and fats. In view of prospect of world shortage, we are not now prepared to consent to Dutch receiving more than 40,000 tons. We, however, consent to addition of a clause stating that this figure is subject to upward revision if justified in the light of a more careful survey of world conditions. If Taylor upon arrival agrees to increased figure for fats this will be acceptable to us.
- 6.
- The paragraph of the agreement numbered 5 should contain after the words “Netherlands” where first used, the words “unless from Associated Governments or Dutch colonies.” We do not desire to require that Dutch purchases in their own colonies or in Associated Governments be made through executives. We do not understand whether the proposed arrangement satisfactory to Oils and Seeds Committee would affect purchase and export of oils and seeds from Dutch colonies to United States, but if so arrangement must be made subject to approval not only of Oils and Seeds Committee but the War Trade Board or other agency of the United States.
- 7.
- With reference to paragraph of agreement numbered 11. We regard the expression “until treaty of peace is signed” as vague and suggest change to read somewhat as follows: “until peace exists between all of the Associated Governments on the one hand and all of the Central Powers on the other hand.”
- 8.
- With reference to paragraph of the agreement numbered 13. We suggest the addition at the beginning of the paragraph of the words, “the right is reserved by Associated Governments to require,” and the elimination at the end of the paragraph of the words, “provided the country to which deficiency is owing assents.”
- 9.
- With reference to paragraph of agreement numbered 14. We suggest the addition at the end of paragraph of the words, “and if desired by the Associated Governments to the occupied districts of Germany.”
- 10.
- With reference to paragraph 15 of agreement we must insist absolutely that agreement be subject to termination on 30 days’ notice given by or on behalf of any one of the Associated Governments to the other parties. We see no particular objection to giving Holland likewise the right to terminate on 30 days’ notice as it seems improbable that she would exercise this right. You will have in mind that under existing legislation the powers of the War Trade Board terminate with peace, and we cannot even though it should be desired now make an agreement which may not be terminated before or upon conclusion of peace.
- 11.
- We are agreeable to question of East Indian products being left out of general agreement, as we think we can satisfactorily handle this matter along lines heretofore followed.
- 12.
- We regard it as important that you secure a letter as suggested by you dealing with the shipping situation and providing that Dutch ships now in service of Associated Governments or at least of the Government of the United States should be placed under voluntary charter for service under same control as now for the period of the agreement; the charter terms to be subsequently agreed upon and the ships to be run by Dutch crews and officers under the Dutch flag. The general agreement should be made subject to the making of a satisfactory shipping agreement of this nature.
- 13.
- There should at the conclusion of the agreement be added a new paragraph to the effect that the War Trade Board of the United States is an administrative agency acting pursuant to authority conferred upon it by the President of the United States pursuant to acts of Congress, and that the obligations which it assumes are limited to the granting of licenses and the facilitating of exports in accordance with the terms of the agreement.
- 14.
- Subject to paragraph 10 hereof, you are given general authority and discretion to sign the agreement on behalf of the War Trade Board.
Lansing