File No. 165.102/969
The Acting Secretary of State to the Commercial Adviser of the British Embassy (Crawford)
My Dear Sir Richard: The receipt is acknowledged of your letter of May 13, 1916, in regard to the assurance of non-interference with the shipment of two carloads of dyestuffs of German origin given by the British authorities last year and confirmed to the American Ambassador at London in February 1916, the assurances being then transferred to the Republic Trading Corporation. At this time the question of the exchange of dyestuffs for cotton was cleared up, it being apparently understood by the British authorities that the cotton had been paid for and that the question of exchange of dye-stuffs for cotton shipped had reference to the German embargo on the exportation of dyestuffs.
The situation with reference to the need for dyestuffs in the United States is essentially the same as when the arrangement was made with Great Britain last spring and when it was confirmed in February 1916. The American dyestuff industry is still in its infancy and for some time to come will be unable to supply more than a small portion of the needs of the country. The dyestuffs which the German Government has declared its willingness to release are urgently needed for the benefit of American industries.
The Department cabled the American Ambassador at London on May 13, 1916, informing him that the Republic Trading Corporation had entered into a contract with the German manufacturers for the shipment of 15,000 tons of dyestuffs of German origin, or as much thereof as the British authorities are willing to allow uninterrupted shipment, and that the contract states that these dyestuffs are to be paid for at the prices prevailing in Germany at the time of delivery, which the Department is reliably informed will certainly not average more than double the ante bellum prices. The Ambassador has been instructed to make appropriate unofficial representations to the Foreign Office so that assurances of non-interference with the shipment of these 15,000 tons, or at least with the two cargoes valued at approximately $5,000,000 for which assurances were previously given the Republic Trading Corporation, may be promptly issued.
To recapitulate, I can see no basis for a change of attitude on the part of the British Government toward their assurances previously issued. The situation seems to me essentially the same as it was at the time of the issuance of previous assurances and I trust that you will communicate to your Government to that effect.
Very truly yours,