File No. 763.72112/2872

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

No. 2432

Sir: I have the honor to report that on the receipt of information that the British Government was refusing to allow American shippers [Page 588] of coffee to consign goods to Holland, I inquired informally whether this was the case and was assured that within the limits of the rationing allowance, American shippers would have the same opportunity as British shippers to export to Holland. In order to obtain further light on this subject I engaged in the following correspondence with the American Commercial Attaché at The Hague:

August 5, 1916.

American Commercial Attaché, The Hague.

Fifth. Please advise me facts respecting new Trust agreement respecting supplies of coffee for Holland whereunder these supplies as alleged apportioned among various shipping countries excluding United States.

Skinner , Consul General

August 8, 1916.

American Consul General, London.

Your cable. No new coffee regulations since first part June. Present regulations admit free of Netherlands Oversea Trust restrictions a limited amount from Netherlands colonies, about forty thousand bags per month, with certain restrictions as to ownership. Only sixty thousand bags per month admitted from elsewhere and all under Netherlands Oversea Trust conditions. Theoretically “elsewhere” signifies only coffee-growing countries. This shuts out us and should shut out England and France, but actually these two countries are shipping about thirty thousand per month out of the “elsewhere” allotment of sixty thousand.

Thompson , American Attaché

August 8, 1916.

American Commercial Attaché, The Hague.

Eighth. British authorities assure me no contract or understanding exists to prevent American coffee shippers from securing their share of Netherlands Oversea Trust permits. Please investigate shipping conditions and ascertain if exclusion of American coffee is not being secured by manipulation of freight space. Can you not obtain definite assurances from Netherlands Oversea Trust that they will accept American coffee?

Skinner , Consul General

August 9, 1916.

American Consul General, London.

Your cable. British ration of coffee from “elsewhere than Netherlands colonies” sixty thousand bags per month. Theoretically Trust make their own distribution of this, but if ordered by British to accept the whole sixty thousand from Allies, Trust must obey. So far only half of it has been occasionally claimed. As a private corporation operated mainly by Dutch shipowners, Trust make rules to favor Dutch Brazilian lines, and shut out us and others to further this. We cannot coerce them; British can.

Thompson , American Attaché

I find that in July 1916, the exportation of coffee from the United Kingdom to Holland amounted to 20,883 cwts.; July 1915, cwts. 52,155; July 1914, cwts. 15,339. Seven months ended July 31, 1916, cwts. 117,822; 1915, cwts. 341,334; 1914, cwts. 102,498.

I have [etc.]

Robert P. Skinner