File No. 611.419/81

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

[Telegram]

1199. More than a fortnight ago I took up with Sir Edward Grey the possibility of making some comprehensive working arrangement whereby the two Governments might remove as many as possible Of the trade and shipping difficulties that the war has developed. After discussion, he proposed that an effort to formulate such an arrangement be made by Anderson for us and for him by representatives of the several departments of British Government that have to do with these questions. These gentlemen have had many, conferences and Sir Edward and I have discussed it three times. Our conference yesterday [lasted] practically the whole afternoon. I contended especially for the lifting of the embargo on the various products which we are prohibited from importing which it seems to me would be a concrete and substantial gain. In the proposed arrangement we have secured this contention except as to wool; and [Page 357] they promise to take up wool as soon as their own military demands are satisfied.1

They contended for a considerable number of concessions, some of which it would be difficult, if not impossible, to grant, We secured the elimination from the proposed arrangement of all the concessions they asked except our at least negative support of their demand that cargoes, especially of copper, shall be consigned to some definite consignee and not to the shipper nor to order. The practice of consigning to the shipper or to order is an innocent and convenient and valuable commercial practice in time of peace when no government cares to whom any cargo belongs or whither it is bound, but they contend that in time of war this method is used to conceal real ownership and real destination of contraband goods. They ask that we refrain from supporting complaints of shippers about detention of cargoes based on this ground only. This leaves us all rights as now of making claims for wrongful detentions of these cargoes as well as of any others whatever. They claim to have definite proof that all copper in Germany or that is shipped into Germany is controlled by the Government for military use and my information is that no neutral Government [in] Europe disputes this. They cite the very high price of copper in Germany as confirming their contention. I hear from independent trade sources that the imports of copper into some of the countries contiguous to Germany has in the last four months been very far in excess of any previous annual importation. Great Britain will in any event continue to treat copper as absolute contraband. They claim also to have proof that many apparently neutral firms and companies in neutral [countries] contiguous to Germany are really German buying agents. They asserted that they have no wish to interfere with bona fide neutral trade and that they have taken and will take no action but what is necessary to prevent contraband trade under the guise of neutral. Every interference with what is proved to be real neutral trade they will take as now at the risk of damages.

The proposed working arrangement cane be ended by either party at any time. The text of it, which in this final form was prepared by them and accepted by Grey, follows. Grey hopes it will be acceptable to you and the President.2

After conversations with the Principal Secretary of State for Foreign Affairs and with representatives of the Departments of State concerned full assurances have been given that the British Government is earnestly desirous of making arrangements calculated to diminish the interference with the bona fide trade between the United States and neutral countries.

It is not desired to press the Government of the United States to make any declaration of policy with regard thereto; the object is merely to secure good offices of that Government in carrying out the arrangements indicated in this statement and in insuring that exports from America are correctly and fully described on the manifests and bills of lading.

It is pointed out that since the outbreak of war a change has been made in the practice whereby evidence of contents of manifests was available at ports of shipment in the United States. The consequence has been that the information [Page 358] disclosed therein had been withheld, with the unfortunate result thenceforth that additional activity has had to be displayed in visiting, search, and detaining ships in order to discover the real nature of the cargoes. It has also transpired that contraband goods have been shipped either with false and simulated descriptions or with no description whatever. This has been particularly the case with rubber, and, in addition, there is some evidence that the facilities given for the shipment of cotton without hindrance is inducing consignor to mix copper with the cotton (copper packed in cotton). It is the opinion here that such practices as these are dangerous and damaging to honest trading and are sure to restrict trade and create bad feeling. The British Government trust that they may have the administrative assistance of the Government of the United States in putting a stop to such proceedings.

In this connection it is clear that the greatest importance is attached to stopping copper from reaching enemy territory. Great Britain has no wish to come into any conflict with the copper producers in America who desire to carry on a bona fide trade with neutral countries, but it is keenly felt that the United States Government ought to give its whole support to an endeavor to prevent fraudulent trade through American ports, arid should also refrain from supporting the complaints of traders based on the ground that there is no right to detain copper merely because it is destined for the enemy territory.

Some part of the difficulties surrounding the treatment of copper has now disappeared, as there is evidence that the German Government has assumed control of all the copper in or entering Germany, and it is hoped that if copper is openly addressed to bone fide consignees in neutral countries, the risk of such detention will be greatly minimized as negotiations are well advanced with most of the neutral countries contiguous to the enemy states to insure easy trade conditions in such countries, subject to prohibition of export therefrom.

Should the Government of the United States find itself able to act on the lines herein described, the British Government will gladly negotiate for the grant of permits for the exportation from Great Britain and its colonies to the United States, of rubber, hides, jute, plumbago, manganese, ferromanganese, chrome, tungsten ore, and other ingredients of steel, on receiving assurances that these articles will not be reexported from the United States in their waste, crude, or raw form, and that bloom or ingots of steel and manufactured rubber and leather articles (to be limited to a specific list), will not be exported to countries at war with Great Britain or to neutral European countries from which Great Britain has not secured satisfactory guarantees against reexportation of such articles. This limitation would not, however, interfere with exportation of any of these articles to Great Britain for distribution from there to neutral countries under the limitations imposed by British law.

Effect would be given to these proposals by granting licenses to the agents in Great Britain of American steel, rubber, and leather trades; such licenses to contain stipulations and provide for necessary securities. The British Government has already been in communication with trade representatives and finds that such a scheme is feasible and would be satisfactory to them.

The remarks made at the beginning of this memorandum as to the good offices of the American Government would apply equally to the arrangements made in respect of all the articles that become the subject of license to export to America, and which are not to be reexported.

As soon as the British Government hear that the arrangements herein proposed are acceptable to the United States Government, British officials will be instructed to interview applicants for licenses and to grant permits without delay.

December 5, 1914.

American Ambassador
  1. For previous correspondence relating to embargoes by the Allied states, see the section on this subject, post, p. 418.
  2. The text of the draft arrangement which follows has been corrected in accordance with another copy which was presented by the British Ambassador on the same day (File No. 763.72112/457).