File No. 763.72112/3131
[Enclosure]
Mr.
H. U. Gade
to the American
Legation in Norway
Christiania,
October 18, 1916
.
Gentlemen: I wish to call your
attention that the present system established by the British
Foreign Office by which shipping permits are granted for goods
to be forwarded from New York to Norwegian ports via the
Norwegian-American Line is working most unsatisfactorily and
with great needless expense and loss of time to the Norwegian
buyer as well as to the American exporter.
By this present system it becomes necessary, after a business
transaction has been concluded between a Norwegian buyer and
American firm, for the latter to apply to the British Embassy at
Washington for permission to ship—for letter of assurance—and,
as the Embassy has no final authority, they are obliged to cable
the London Foreign Office (at American shippers’ expense) for
instructions. If a reply is received, the American firm is
advised in due course, but it very frequently happens that the
Embassy is repeatedly appealed to before advice comes through.
There is a serious delay while cabling is going on, and not
being sure that a permit is forthcoming, the shipper is unable
to engage steamer space which again results in further delay. It
is also most [Page 501] annoying
to the Norwegian importer who wishes to buy American goods and
who has to conform with the present established American terms
of payment—cash against documents in New York—to be obliged to
arrange for the credit being available so long before being used
and paying interest during such period. Should permit be
refused, the credit is opened to no purpose and the buyer incurs
heavy cable and other expenses before withdrawing.
My contention is that a system might be arranged which would work
rapidly and to the satisfaction of all concerned, and from the
point of view of the British Foreign Office be quite safe.
I should suggest that the American exporter, through his
Norwegian representative, when wishing to conclude a
transaction, put the matter before the British Legation in
Christiania, giving H. B. M.’s Minister
such information as to the name of the buyer, the quality and
quantity of the goods and their ultimate use, which is required
by the British Embassy at Washington and by them now cabled to
the London Foreign Office who [which], I
believe, again cables to Christiania for local information.
Being in possession of such facts direct from the American
representative, and having all the local facts and merits of the
case, the British Legation at Christiania is at once able to
wire their Foreign Office asking for or recommending a permit to
be granted and can, within a few days’ interval, advise
definitely, thereby enabling the seller to go ahead and conclude
the transaction.
By this arrangement the buyer is at once advised if he is allowed
to buy and receive his goods, and not until after having this
definite information does he have to incur the expense of
exchanging cables and arranging for credits. He is able at once
to secure the necessary tonnage and can figure on obtaining his
goods in somewhat scheduled time.
It must be quite evident when considering this matter that the
present system which must be adhered to is impractical and
should at once be changed. My suggestion of having the question
of “letter of assurance” fixed and settled between Norway and
England direct can not but be a simpler and easier way and does
not in any way afford the chance of letting shipments through,
other than those which would have been allowed to pass were the
application for permit to ship have originated with the American
firm through the Washington Embassy.
It is the buyer on this side who is first and foremost
interested, and after he is satisfied and knows he may receive
the goods he wishes to purchase then it is time to communicate
with the shipper.
Your valued interest in this matter will be greatly
appreciated.
Yours very truly,
