File No. 300.115/1077

The Secretary of State to the Minister in the Netherlands ( Van Dyke )

[Telegram]

52. Confusion exists regarding attitude of Netherlands towards shipments of goods respecting which that Government has placed embargo on reexportation. Department’s understanding has been that as to such shipments no difficulty would be experienced in view of British declaration that these shipments would not be interfered with Department now informed by representatives of flour exporters Holland-America Line refuses shipments unless consigned to Netherlands Government on ground that Netherlands has virtually adopted governmental monopoly of principal food products and that shipments to Dutch ports will be denied admission unless so consigned. Advise Department fully and quickly as to exact attitude and course of Netherlands respecting shipments of wheat, flour, foodstuffs, and other products and whether report through Holland line is authentic and to what articles same applies, particularly [Page 397] whether any obstacle to entry to Dutch ports of shipments on American or other neutral vessels of goods such as foodstuffs when not consigned to Government. Department unable to give authentic advice to shippers in absence of definite information.

Flour exporters contracted before war with Holland customers for delivery of particular brands and grades and now prepared to fill contracts. Holland-America Line decline such shipments on ground stated. Plant Milling Company, St. Louis, under such contracts, have at Philadelphia 3,600 sacks for Gebroeders Vreeswijk, Utrecht; 2,000 sacks for H. F. Osieck, Amsterdam, and 20,000 sacks in transit to seaboard. Any action of Netherlands respecting consignments to Holland ports should not affect shipments under contract with Holland purchasers prior to war, especially where shippers have made preparations to fill. Present matter to Government and ask for ruling permitting prior contracts to be filled by consignments to purchasers or that Netherlands give permission for these contracts to be filled by consignments made to it Rush full reply.

Bryan