File No. 763.72112/3430a
The Secretary of State to the Ambassador in Great Britain ( Page)
4566. Department’s 4400, February 5, 9 p.m. The changes in international circumstances since the date of the telegram noted seem to suggest the expediency and desirability of definitely disposing of the question of goods of German and Austrian origin detained at neutral European ports by a general or blanket permit to cover all merchandise of American destination which arrived at such ports prior to June 1, 1916, without other qualification. Regardless of conditions of purchase the Department is unable to see how the release [Page 510] of these goods can benefit the German sellers, but it is plain that their continued detention will, on the other hand, damage the interested American owners. Through the undertaking given by Great Britain, whereby uninterrupted shipment was allowed merchandise proven to have been bought and paid for prior to March 1, 1915, goods to the amount of some $14,000,000 were released. It is thought that the value of merchandise remaining is approximately $3,000,000, a considerable portion of which is detained because of expiration of time limitation imposed. There has always been a certain amount of controversy about the sufficiency of evidence which formed the basis of rejections of applications in a fair number of other cases and the Department has been compelled to meet much criticism from interested quarters because of its inability to influence the British authorities in making more liberal decisions. Aside from these considerations much of the merchandise involved is subject to deterioration and the owners will have to meet losses caused thereby in addition to heavy storage costs. The Department believes that the release of this merchandise at the present time will be productive of much good and it hopes that the British Government will let itself be influenced by the considerations specified, which you are instructed to emphasize in your further unofficial endeavors to make the general arrangement about which you were instructed on February 5.