File No. 300.115/2601
The Ambassador in Great Britain (Page) to the Secretary of State
No. 939]
London,
February 22, 1915.
[Received March 15.]
Sir: Referring to the telegrams from the
Department Nos. 780, 799 [797], and 821 of December 18, 21 and 23
respectively, and telegrams from this Embassy to the Department of
December 23, 10 p. m., Nos. 1414 of January 5 and 1450 of January
11,2 concerning the sale of copper in neutral
countries, and the investigation of alleged transactions by British
concerns for the sale of copper detained or seized by the British
Government, I have the honor to advise the Department that, at the
time this investigation was commenced, it seemed to me to be
advisable to bring to the notice of Sir
Edward Grey in conversation that certain persons in
the United States had expressed a suspicion that the British
Government had permitted the sale of copper to neutral countries at
a higher price than the Government had paid for the same copper
which was purchased after the detention and seizure of American
cargoes.
Sir Edward Grey has replied
to my verbal inquiries in the premises in a note under date of
February 18, a copy of which is enclosed herewith, in which it is
stated that there is no foundation for this suspicion on the part of
American citizens.
The last two paragraphs of this note have reference to the cargoes of
copper which were detained and discharged at Gibraltar and are
[Page 343]
now in the hands of the
British Government, regarding which I had the honor to advise the
Department by cable on the 19th instant.1
I have [etc.]
[Enclosure]
The British Secretary of State for Foreign
Affairs (Grey) to
the American Ambassador (Page)
No. 17884/15]
February 18, 1915.
Your Excellency: I have the honour to
inform your excellency that careful enquiries have been made
into the report which you brought to my notice in conversation
on December 23 last that copper detained or seized by His
Majesty’s Government has been bought by them at prices current
in this country and that some, at any rate, of the copper has
then been sold at higher prices to neutral countries and
exported from Great Britain under licence.
The result of these enquiries has been to show that these
allegations are entirely devoid of foundation.
The only copper of which the purchase has so far been completed
was the cargo of the vessels Rotterdam,
Potsdam, Westerdyke, and Slotterdyke all bound for Holland. The copper taken
from these vessels was bought by His Majesty’s Government at a
higher price than the market price of the day and great expense
was incurred by them in the unloading of the vessels and the
conveyance of the cargoes from Rotterdam.
Part of this copper the departments concerned did not require and
His Majesty’s Government were left with it on their hands. In
the meantime a considerable rise in prices took place. The
balance which His Majesty’s Government could not use was sold in
the open market by a London broker in the usual way, with the
strictest instructions that he was not to sell it for
export.
There was a small quantity which was not included in this
arrangement. His Majesty’s Government were unable to induce the
consignees to sell, and this portion was either left in Holland
or returned there. No copper has in fact been sold abroad by His
Majesty’s Government at all.
Your excellency will agree that this entirely disposes of the
grave general allegation to which you gave expression.
In regard to copper discharged at Gibraltar, none of this has
been bought or sold and if any copper is purchased at Gibraltar
there is not at present any intention to export it from this
country.
Most of the copper was consigned to suspected consignees and some
was without any doubt whatever destined for Germany and was,
before shipment, actually paid for by German merchants, so that
in these cases if His Majesty’s Government purchase they are
simply reimbursing the German merchant.
I have [etc.]
[File copy not signed]
