File No. 763.72112/161

The Consul General at London ( Skinner ) to the Secretary of State

No. 66]

Sir: I have been visited on several occasions by Mr. J. Rypperda Wierdsma, managing director of the Holland-American Line, of Rotterdam, and another director of the same company, who labor under the impression—or at least the hope—that the interests of the American Government in the cargo and passengers carried by the ships of their line might induce it to support the efforts of the Netherlands Government to prevent further interference from the British Government. The Nieuw Amsterdam, the Ryndam, and the Rotterdam, each eastward bound, have been arrested during the past few weeks, and only after long and costly delays have they been permitted to proceed from the British ports to which they have been convoyed.

The motive for these arrests is the British fear that the ships carry contraband, or conditional contraband, and apparently the British. Government requires each vessel to prove that the cargo is not contraband before allowing it to proceed, although no undertaking is given on its part to show that it has any prima facie cause for arresting the ship in the first place. To put the matter practically, the British Government desires convincing proofs that cargo going to Holland is not intended for reshipment to Germany. While the Dutch Government has forbidden the export from Holland of various articles on the British list of merchandise contraband or conditional [Page 321] contraband, it also has an engagement with the German Government to keep navigation on the Rhine open.

On the landing of goods from the United States or elsewhere, the importer declares that they are for “consumption” or “transit” if for “consumption,” then they can not be reexported, but if for “transit,” then the importer may reship them to any point he pleases. It is conceivably difficult for the shipping company to know in advance what final disposition the importer intends to make of his goods, and so far as I know the Holland-America Line has not undertaken to adopt the expedient of accepting goods at New York only with an ironclad contract on the part of exporter and importer to declare the shipment for “consumption” on the other side. Perhaps if the shipping company did so, the German Government might protest upon the ground of discrimination and violation of the declaration of neutrality.

Undoubtedly the Dutch Government is in a trying position, between anvil and hammer. Down at the bottom, the Holland-America Line are troubled respecting anticipated shipments of American cotton. Cotton is not now on the conditional contraband list in this country, but my visitors seem to fear that it may be placed there. They expect to bring over large quantities, and while much of it may remain in Holland, probably a great deal will go into Germany also. They are hoping that the attitude of the American Government would be favorable to their interests if shipments of cotton consigned from American ports to Rotterdam should be held up by the belligerent powers.

I have [etc.]

Robert Skinner