File No. 763.72112/252

The Acting Secretary of State to the Ambassador in Great Britain ( Page )


393. It has been reported to this country, and is believed by a large number of American citizens interested in the exportation of raw cotton, that the British Government is influencing insurance companies in Great Britain to place such limitations upon policies covering raw cotton shipped in neutral vessels that it is impossible for American exporters to obtain marine insurance. It appears that British underwriters will not insure against war risk unless the owner warrants same free of capture, seizure, or detention by the Allies. This action of British underwriters has influenced American insurance companies to follow the same course and refuse to insure without such a warranty clause. The result is that the exportation of raw cotton from the United States is substantially impossible. It is hoped, therefore, that the British Government will take the necessary steps to relieve this situation, which is a source of much adverse criticism against that country and may result in a most undesirable state of public feeling in this country.