763.72111/505½

The British Ambassador (Spring Rice) to President Wilson

Dear Mr. President: I enclose decypher of a telegram which I have just received from Sir Edward Grey.

My Government is doing all in its power to avoid interference with neutral trade, especially with the trade of the United States; but in the life and death struggle in which we are now engaged it is essential to prevent war supplies reaching the German armies and factories.

When the United States was involved in a similar struggle a question arose, that of the trade with the Southern States, through British colonies, on which the British Government accepted the doctrine of continuous voyage, even though it entailed serious loss on their own people. It is this same doctrine which we are now ready to abandon if we can receive adequate security from neutral nations that they will not become the bases for supplies of the forces which are devastating Belgium and France.

My Government, in deference to your wishes, has withdrawn the Order in Council, but until the new one is issued it is impossible to make the arrangements with neutral powers which are so essential for our safety.

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If a British force were devastating Mexico I do not suppose that the United States would allow it to draw its supplies either directly or by transit through United States territory; and if any nation protested against an embargo I do not suppose that American public opinion would endorse that protest.

The export figures of American trade show the immense increase of exports of all sorts, so that even from the commercial point of view this country has already found its compensation, and it is now abundantly proved that early last summer Germany was laying in supplies with a view to a war and has stated officially that she has enough to last two years. All that we now aim at is that (having no neutral ports ourselves, through which we can import) Germany may not be allowed to avail herself of her usual ports of supply (for instance in Holland) in order to feed her army and supply her factories with war materials.

We do not for a moment ask that this country should depart from the principles of absolute neutrality but merely that she should acquiesce in the enforcement of a doctrine which she herself has always insisted on—namely that a belligerent has the right to take measures to prevent its enemy from using a neutral as a port of entry for belligerent purposes. All that we ask is that you do not now abandon in the interest of our enemy a doctrine which you have in past times successfully asserted against ourselves.

I have [etc.]

Cecil Spring Rice
[Enclosure—Telegram]

The British Secretary of State for Foreign Affairs (Grey) to the British Ambassador (Spring Rice)

It is essential that we should have United States observations as soon as possible in order that we may issue a list of contraband of war that will not meet with objections from the United States Government.

We do not object to the principle of the Declaration of London provided we can prevent German army and war factories such as Essen being supplied through neutral countries.

To effect this it is essential to depart from strict rules of Declaration of London as to list of absolute contraband and to apply stricter measures as to conditional contraband in cases where a neutral country is being used as a base of supplies for German army and materials for munitions of war.

Does State Department realise that under the Rhine Convention between Holland and Germany goods consigned to Rotterdam may on arrival there be declared in transit and pass on to Germany in spite of any embargo on export by Netherlands Government?

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Till our new proclamation is issued we cannot make arrangements with neutral governments for insuring that goods consigned to them, however contraband, are not re-exported. We were hoping to make an arrangement with Netherlands Government; but even this is in suspense pending discussion of new proclamation with United States Government.

We are most anxious to come to an agreement with United States Government for otherwise we shall have to choose between a dispute with United States Government or giving up all attempts to prevent Germany from getting free supplies for her army and materials for all munitions of war: either alternative would or might be fatal to our chance of success and insure ultimate German victory and disappearance of Great Britain as a fully independent Power in Europe. I understand importance to the United States of seeing that there is as little interference as possible with trade. In this interest we have for present ceased to detain any food stuffs for Rotterdam or to demand any guarantee from Netherlands Government about them and these are no doubt going up the Rhine which is direct route to German army.

Petroleum, copper, rubber and everything else will follow suit unless we can speedily come to an arrangement about a new proclamation. Enormous quantities of petroleum are now being shipped to Holland and Scandinavian countries and are causing us much anxiety.

[File copy not signed]