Memorandum of the Acting Secretary of State2

I lunched with the British Ambassador. After lunch I discussed with him the recent blacklisting announcement of the British Government. I pointed out that this would cause tremendous irritation and great hardship. I also pointed out that there was a danger that they would put American corporations on the black list on account of German ownership of stock, and that this was a violation of their rule laid down by their own prize courts. I said that if they would make some general announcement showing a disposition to deal fairly and liberally with those cases, with no intention of interfering with legitimate American concerns, it would have a favorable effect. In addition to that, I thought the cases of actual blacklisting should be taken up and dealt with in a liberal spirit, and where there were companies that actually had contracts for delivery of goods in Great Britain and France, that those companies should be permitted to carry out their contracts. I said there was a danger that these companies would sue the English companies and attach their property in this country, in case of a refusal to accept their trade. I told him I knew that they would put in the defense that it was a municipal law making performance impossible, but, in any event, there would be litigation and trouble. He said he had not thought of that and he would at once send a message to the Government, urging that a statement be given out and that the cases be dealt with liberally and that firms or corporations with contracts be permitted to carry out those contracts. He said he thought the course for us to pursue would be to make vigorous representations. I told him that at this time it was most unfortunate if his Government should do anything to cause irritation while the President was not and would not be influenced by the politics of the situation. It made it all the more difficult for him and the action of the British Government had given the German sympathizers a great deal of pleasure in this matter and the matter of the mails.

F[rank] L. P[olk]
  1. Substance repeated to the Ambassador in Great Britain in telegram No. 3552, July 21, 1916, 8 p. m. (File No. 763.72112/2731).