The Secretary of State to the Secretary of the Treasury (McAdoo)
Washington, August 22, 1914.
Sir: I have the honor to acknowledge receipt of your letter of the 20th instant in which you enclose a telegram from the collector of customs at San Francisco regarding the clearance of the Mexican steamer Mazatlan flying the German flag and carrying a cargo of coal apparently destined to German cruisers in Pacific waters. I also acknowledge the receipt over the telephone of a further telegram from the collector stating that the acting German Consul has offered to give a written guarantee that while this coal was an excess supply purchased for the Leipzig, the coal will be delivered in Guaymas, Mexico. The shipowner also volunteers to give bond guaranteeing the delivery of the coal at this Mexican port.
All the facts of this case before this Department have been laid before the Joint State and Navy Neutrality Board for its opinion. On the basis of that opinion the Department recommends under the circumstances of this special case that the collector be instructed to give clearance to the Mazatlan with coal on board on condition that in addition to the written guarantee which the German Consul [Page 618] offers to give as described in the telegram of the collector he give further written assurances: (1) that the coal shipped by the Mazatlan will not be delivered to any German war vessel that has already received coal in a United States port since the outbreak of hostilities within three months after such receipt and (2) that if the coal be delivered to any other German war vessel, the fact of such delivery will prevent the last-named war vessel from receiving coal in any United States port within a period of three months after said delivery.
Failing the receipt of these written assurances from the German Consul it is recommended that clearance to the S. S. Mazatlan be denied unless the coal in question is first discharged.
I have [etc.]