File No. 841.711/1229

The British Ambassador ( Spring Rice ) to the Secretary of State

My Dear Mr. Secretary: You will no doubt have noticed recent announcements in the press to the effect that His Majesty’s Government were making use of information obtained from the censorship for commercial purposes. I brought these accusations to the attention of His Majesty’s Government by telegraph and I beg to communicate to you, herewith, informally, the text of an interview which was given on the 15th instant by Mr. Lloyd George, Secretary of State for War, to the Associated Press. A summary of this interview was published here a day or two ago, but I feel that it would interest you to have the full text.

You will see that information obtained from the censorship is passed on to the other departments of His Majesty’s Government for the sole purpose of guiding the action of the Government in the conduct of the war, and that it is warmly affirmed that the honest business interests and trade secrets of American merchants or manufacturers are safe in the hands of the military censors and of every Government department.

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Viscount Grey also informs me, in a separate telegram, that the divulging of trade secrets which might come to the knowledge of any person through the censor, would be an offence under the Official Secrets Act punishable by imprisonment for two years with or without hard labour and a fine.

Believe me [etc.]

For the Ambassador:
Colville Barclay
[Enclosure]

Interview given by the British Secretary of State for War ( Lloyd George ) to the Associated Press, September 15, 1916

There appears to be a deliberate campaign set on foot in the United States by German agents to throw doubt on the good faith of His Majesty’s Government in regard to the use of information obtained through the censorship. These German agents, with whose underground methods of working we are quite familiar, appear now to have resurrected my statement in the House of Commons on August 8 about the “palm kernel” letter, although that statement was fully explained by Lord Robert Cecil to the American Press on August 9, and the most explicit assurances on the same subject were given by him in a later interview on August 25. In spite of this these propagandists are trying to dress out my statement as something new, nullifying Lord Robert Cecil’s assurances which followed it. Let me now say on behalf of the military authorities what has already been said on behalf of the Foreign Office, that when information is passed on by the censorship to other departments, it is for the sole purpose of guiding the action of the Government in the conduct of the war. For instance, when we get information that an American firm to whom the Foreign Office has given a permit for the export of certain German goods from Rotterdam, on the ground that these goods had been paid for before the war, is using that permit fraudulently, as has frequently been the case, we pass the information on to the Foreign Office in order that they may cancel the permit. Again, when we find that a neutral firm is using British banking facilities for the purpose of trading with our enemies and is deceiving the British bank in question as to the real purpose of the transaction, we pass that information on to the proper department, in order that they may refuse to licence the transaction. Or again, if we learn that a shipment of contraband, ostensibly from one neutral firm to another, is really destined for the enemy, we see that the contraband committee gets that information. That, frankly stated, is what we do, but we affirm and we challenge any one to deny it, that the honest business interests and trade secrets of an American merchant or manufacturer are as safe in the hands of the military censors and of every Government department here as they are in the hands of the American Post Office.