File No. 763.72112/2267

The Chargé in the Netherlands ( Langhorne ) to the Secretary of State

No. 419

Sir: In connection with my cipher cablegram No. 500 of January 31, 1916,1 on the subject of the protest of the Netherlands Oversea Trust against the action of the British Government in stopping and ordering to British prize courts shipments regularly consigned to the Netherlands Oversea Trust in violation of the agreement between the Trust and the British Government, I have the honor to forward herewith a letter from Mr. Erwin W. Thompson, commercial attaché of the Legation, reporting an interview with Mr. van Vollenhoven, the head of the Netherlands Oversea Trust.

I have [etc.]

Marshall Langhorne
[Enclosure]

The Commercial Attaché in the Netherlands ( Thompson ) to the Chargé ( Langhorne )

Sir: I have the honor to report that I had an interview this morning with Mr. van Vollenhoven, the active head of the Netherlands Oversea Trust. This interview was prompted by the following telegram which I received from Consul General Skinner at London: [Page 351]

London , January 30, 1916 .

Various seized shipments consigned to Trust by Armour and Morris under usual permits are being held because Trust stated in November that, pending arrangement with British Government, no further imports of meat would be accepted by Trust. Please ascertain why Trust issued permits, having previously agreed not to accept additional shipments, and why it failed to advise shippers to whom permits had been issued after this understanding as to stoppage consignments.

Mr. van Vollenhoven said in reply to this that he returned from a conference in London on November 8, and since that date he had complied with the request of the British Government not to issue further licenses for packing-house products and that this order is still in effect. He said that the shipments complained of by Consul General Skinner were those arriving under licenses issued previous to the British instruction referred to. He was astonished to know that the British Government were deliberately nullifying these perfectly good licenses, issued in good faith and under the rules as they existed at the time of issuance. He said that according to the terms of his agreement with the British Government the Netherlands Oversea Trust was bound to return to the British prize court any goods when the British Government notified the Netherlands Oversea Trust that the request for such return was based on information in possession of the Government leading them to believe that the said goods were intended for their enemies. The goods now under discussion, however, do not fall under this clause of the contract. He said they are being held not because they have evidence of enemy destination, because there could be no such evidence in existence. He said they are being held because of England’s ideas with regard to the amount of packing-house products which Holland should consume in a given time, thus bringing the subject under the head of what they call their “rationing system.” The “rationing system,” however, is based upon supplementary agreement between the British Government and the Trust, with regard to specific items, such as wheat, rye, corn, linseed cake and some other commodities, but not packing-house products. These were distinctly omitted from the “rationing agreement” because the Netherlands Oversea Trust was not willing to agree to the amounts allotted by the British Government. Mr. van Vollenhoven thinks that the British Government is now acting entirely on its own ideas of the proper ration of packing-house products, but that it has no right to do any such thing because this has not been agreed upon and incorporated in the contract.

Mr. van Vollenhoven said he had been making protests from time to time against various similar encroachments on the contract on the part of the British Government, such, for example, as the order to return to the prize court of the recent gold shipments. He said that he had just lately filed another and still stronger protest against the more flagrant violations of the agreement and against the general lack of confidence which the British appeared to be evincing.

The above conversation confirms a report which I had from another source a few days ago to the effect that the Netherlands Oversea Trust had sent to the British Government what amounted practically to an ultimatum, stating that unless the British Government was prepared to respect their contract with the Netherlands Oversea Trust and to show greater confidence in them, the Netherlands Oversea Trust was ready to go out of business. I cannot say, of course, that the letter was couched in just these terms, but I can quite believe that it had this flavor.

I have [etc.]

Erwin W. Thompson
  1. Not printed.