File No. 763.72112/3132

The Consul General at London (Skinner) to the Secretary of State

No. 2931

Sir: I have the honor to transmit, for the information of the Department, copies of letters exchanged with the Procurator Genera] in regard to the position of consignments of American goods forwarded to Holland in care of the Netherlands Oversea Trust.

The Department will recollect that on April 27, 1915, the Foreign Office urged that no objections be raised by the American Government to the consigning of goods to the Netherlands Oversea Trust, in the following communication:

The S. S. Segurança was allowed to proceed on April 22, all the consignees having agreed to receive their goods through the Netherlands Oversea Trust.

While His Majesty’s Government do not “require” cargoes to be consigned to the Netherlands Oversea Trust, they do accept a consignment in that form as proof that the cargo is intended for bona fide consumption in Holland, and they find by experience that no objection to that course is raised by reputable shippers and consignees.

As this practice has greatly facilitated and expedited the release of vessels bound for Dutch ports when brought in or calling for examination, it is hoped that the United States Government will not do anything to interfere with its smooth working in the future.

In asking the Procurator General to release American goods consigned to the Trust, I have frequently referred to the above-quoted note of April 27, 1915. On October 17 he replied to one such letter as per copy enclosed. I thereupon asked him to state the meaning which he himself attached to the Foreign Office note of April 27, 1915, and I have received a reply, dated October 23. As a matter of convenience, I am enclosing also a copy of the Foreign Office note of May 2, 1915 [1916],1 to which reference has been made by the Procurator General.

I have [etc.]

Robert P. Skinner
[Enclosure 1]

The British Procurator General (Mellor) to the American Consul General (Skinner)

Sir: I am directed by H. M. Procurator General to refer to your letter of the 3d instant, enclosing a copy of a letter from the claimants, and to say that he is unable to consent to the release of the goods and the claim must be made in the prize court. It is hoped that this case will be brought on for trial shortly and I am to invite your special attention to the proceedings, as it is anticipated that, they will afford a complete justification for that which throughout has been the contention of this Department: viz., that the guarantee of the British Government of the 25th April 1915 was not intended to give complete immunity to all consignments of goods which might be made to the Netherlands Oversea Trust, no matter what evidence of ultimate destination might be forthcoming, and that full liberty of action was reserved in any cases in which such a destination could, in fact, be established.

I am [etc.]

R. W. Woods
[Page 483]
[Enclosure 2]

The British Procurator General (Mellor) to the American Consul General (Skinner)

Netherlands Oversea Trust

Sir: I am directed by H. M. Procurator General to acknowledge the receipt of your letter of the 19th instant, relative to consignments of goods to the Netherlands Oversea Trust, and to say that the meaning which he attaches to the Foreign Office communication to which you have frequently adverted is that acceptance by the Trust would be regarded as prima facie evidence of neutral destination, but that in cases in which His Majesty’s Government consider that they have evidence that, notwithstanding the acceptance by the Trust, goods are intended to be forwarded to an enemy destination, they are not restrained from exercising the right of capture which belongs to every belligerent.

While the Procurator General gladly acquaints you with his interpretation of the note in question, it would perhaps be more satisfactory if you were to obtain, through the usual channels, the meaning which the Secretary of State himself attaches to it.

The matter, however, appears to be comprehensively dealt with in the note addressed to Doctor Page by Lord Grey of Fallodon on the 2d May 1916 (No. 70508/X), with which you are already familiar.

I am [etc.]

R. W. Woods
  1. Ante, p. 391.