File No. 195.2/238

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

[Telegram]

442. Sir Edward has just discussed at length with me a new question of the proposed purchase of German ships now in American ports.

[Page 490]

He has raised two points regarding our purchase of them.

First point. The money paid for them would aid the Germans to build new ships as soon as war ends. But he does not insist on this point and will not press if other objections be removed.

Second point. The British Government is unwilling that these ships should be put on the seas under any flag if they could be used during the war to supply food or aid to the Germans. But if the United States will specifically agree that they shall not so be used, the British Government will not object to the purchase of them by the United States. Can this be done without violating neutrality towards Germany? The agents must prohibit the use of these ships to any port such as Rotterdam, for example, from which the German might benefit. If satisfactory, Government see a way to make such an agreement since all British objections will be withdrawn.

Another possible plan. Grey told me in strict confidence that the British Government were maturing a plan to buy these ships themselves which they set aside when the American proposal to buy them was made. Grey did not wish to get in the President’s way but the British Government would take that plan up again and, if it can be carried out, buy them, agreeing [to] sell them to the American Government at the end of the war if this plan is agreeable to the American Government.

American Ambassador