File No. 763.72111/3518

The Acting Secretary of the Treasury (Newton) to the Secretary of State

Sir: Referring to your letter of the 14th ultimo,1 advising this Department that information had been received to the effect that the German Government was about to attempt to make use of certain German vessels now in neutral ports, and suggesting that this information be conveyed to the various collectors of customs in order that they might guard against anything of the kind, and further suggesting that it would probably be well to take unusual precautions in the premises, I have the honor to inform you that in October 1915, the Coast Guard cutter Itasca was sent to the harbor of San Juan, Porto Rico, and assigned to the duty of assisting the collector of customs at that port in the enforcement of the neutrality laws. The Itasca has continued on this duty up to the present time, but it is now necessary to withdraw her on April 1 in order that she may proceed north and prepare for the annual cruise for the instruction of Coast Guard cadets, and there is no vessel of the Coast Guard available to replace the Itasca at San Juan except the Semi-nole, which is now stationed at Wilmington, North Carolina. There are, however, two self-interned German vessels at Wilmington, and to withdraw the Seminole from that port for the purpose of enforcing the law at San Juan, would leave the collector of customs at Wilmington without assistance to prevent violations of the law at his port.

Under these circumstances a communication was addressed to the Secretary of the Navy on the 2d instant, setting forth the foregoing and requesting the Navy Department to assign a suitable vessel for neutrality duty at the port of San Juan to relieve the Itasca. Under date of the 4th instant the Secretary of the Navy replied to that request as follows:

I have the honor to acknowledge receipt of your letter of March 2, 1916, in which you request that this Department assign a suitable vessel for neutrality duty at the port of San Juan, Porto Rico.

I regret exceedingly that there are no naval vessels available for this duty. It is suggested that the neutrality of San Juan might properly be preserved by so disabling the engines of all belligerent vessels as to prevent their unauthorized departure, or that the same results might be accomplished by maintaining guards on board belligerent vessels.

Upon receipt of the foregoing from the Navy Department, the following cablegram was sent to the collector of customs at San Juan:

Necessary for cutter Itasca leave San Juan come north April first. Your cable July 28, 1915, stated Colonel of Army post and Commander of Paducah concurred in your opinion that presence of some armed Government vessel necessary San Juan Harbor. Wire Department whether it is still absolutely [Page 747] necessary for some other armed Government vessel in San Juan during time Itasca is absent, which will be six months, or whether you will be able to arrange with Commandant of land forces, San Juan, to adequately assist you in preventing violation of neutrality.

The collector of customs at San Juan replied by cable as follows:

Answering your cable reference to necessity of continuance of armed Government vessel in San Juan in connection with neutrality, at conference held this morning with Commandant of land forces and Commander of Itasca these officers expressed their opinion, in which I concur, that under existing conditions the presence of armed Government vessel to assist in preventing violation of neutrality is absolutely necessary.

The situation therefore presents itself as follows:

The collector of customs, the commandant of the land forces, and the commanding officer of the Itasca, all at San Juan, advise this Department that the presence of an armed Government vessel in the harbor of San Juan is absolutely necessary to assist in preventing violations of neutrality. This Department finds it absolutely necessary to withdraw the Itasca on April 1 and has no other cutter which can be detailed to relieve the Itasca without leaving the neutrality of certain Atlantic ports unguarded. The Navy Department advises this Department it has no naval vessel available for this duty and suggests that the neutrality of San Juan might properly be preserved by disabling the engines of all belligerent vessels or maintaining guards on them.

This Department, under existing conditions, hesitates to adopt either of the unusual measures suggested by the Secretary of the Navy without the express sanction and desire of the Department of State, and it is requested that you advise this Department as to the wishes of the State Department in this matter at as early a date as practicable.

The following German vessels are now in the harbor of Wilmington, North Carolina: The steamships Nicaria and Kiel.

The following German vessels are now in the harbor of San Juan, Porto Rico: The steamships Odenwald, KD-3, and President.

Of these the Odenwald is in charge of the United States Marshal for past violations of law; the KD-3 was decided to be an armed auxiliary; and, therefore, the machinery of each of these vessels has been disabled. The President is a merchant vessel.

Respectfully,

Byron R. Newton
  1. Not printed.