File No. 763.72112/514½

The British Ambassador ( Spring Rice ) to the Counselor for the Department of State

Dear Mr. Counsellor: I duly received the official letter from your Department dated November 7 relative to the protest of your Government on the subject of the detention of United States vessels in British ports and other matters.

I lost no time in telegraphing its contents to my Government and I will send a copy by the next mail. In the meanwhile I have received telegrams from my Government, copies of which I enclose for you herewith, which provide information as to the arrangements now being made with neutral governments with the object of putting as few hindrances as possible in the way of neutral trade and shipping, while carrying out those measures of restriction which present hostilities have unfortunately made necessary.

I am [etc.]

Cecil Spring Rice

[Enclosure 1—Telegram]

The British Secretary of State for Foreign Affairs ( Grey ) to the British Ministers at Christiania ( Findlay ), Stockholm ( Howard ), and Copenhagen (Lowther)

We are satisfied with the guarantees offered by the Norwegian, Swedish, and Danish Governments as to the non-exportation of those contraband goods consigned to a named person in Norway, Sweden, and Denmark which are included in the list of prohibited exports issued by the Norwegian, Swedish, and Danish Governments; and relying upon the Norwegian, Swedish, and Danish Governments to see that such goods are landed in Norwegian, Swedish, and Danish ports of destination and not subsequently exported or passed on in transit to enemy country, orders have been given to British Fleet and customs authorities at British ports to restrict interference with neutral vessels carrying such cargoes so consigned to verification of ship’s papers and cargo.

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[Enclosure 2—Telegram]

The British Secretary of State for Foreign Affairs ( Grey ) to the British Ambassador at Rome ( Rodd )

Italian prohibition of export is practically valueless so long as under Italian transit regulations cargoes even when addressed to named consignees in Italy may on arrival at Italian port be declared “in transit” and so escape export prohibition.

We have accordingly decided on arrangement explained in my telegram to Rome of to-day, No. 100. That arrangement, if accepted by Italian Government, will fully provide for bona fide import trade into Italy and transit to Switzerland of cargoes for Swiss use, but will stop illicit transit to Germany.

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[Enclosure 3—Telegram]

The British Secretary of State for Foreign Affairs ( Grey ) to the British Ambassador at Rome ( Rodd )

His Majesty’s Government have decided for the present to stop at Gibraltar all copper except that consigned to the Italian Government, subject to the following restrictions.

As regards electrolytic weak high-grade copper unquestionably destined for Italian firms they would be prepared, in view of measures taken by the Italian. Government as reported in your telegram, to allow this to proceed if consigned to the Italian Government, firms making the necessary arrangements with their Government for this purpose. His Majesty’s Government rely on the Italian Government to satisfy themselves that these consignments will not be declared “in transit” on arrival but will in fact fall under operation of prohibition of export.

As regards Bessemer (lower-grade copper) shipment will be allowed through, when consigned to Italian firms who give an undertaking that it is for use in Italy only.

Your excellency should point out that an arrangement of this kind is rendered especially necessary in view of the existing Italian regulations under which as I understand from your telegram No. 86 shipments [?] even when addressed to named consignee in Italy may on arrival at Italian port be declared to be “in transit.”

Arrangement now proposed appears to be one which will afford all possible facilities to Italian houses and work with the least friction.

Negotiations will be opened at once with the Swiss Government in regard to copper intended for Switzerland.

Regina d’Italia has sailed from Gibraltar and it is understood copper for Pirelli has not been discharged.

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