File No. 195/87
[Enclosure]
The Chief of the British Special Mission
(
Balfour) to the Chairman of the Shipping Board (
Denman)
Washington,
May 23, 1917.
Dear Mr. Denman: As was arranged the other
morning I write to place on record the results of our conference
in regard to the possibility of increasing the output of
shipping in the United States.
I understand the problem to fall under three heads—(1) wooden
ships, (2) fabricated steel ships, and (3) ordinary steel ships.
As regards the first and second heads I understand that
General Goethals’
arrangements are now well in hand, but that, pending the grant
of appropriations by Congress, he is not in a position to make a
final statement on all the points involved in his programme.
As regards the third head, General
Goethals is, it appeared, of opinion that it
might be possible to expedite the completion of certain ships
already laid down or contracted for. He counts on being able to
speed up the production of steel, and hopes to be able to speed
up its transportation in such a way as to make it possible for
the yards to work with two or even three shifts in the
twenty-four hours instead of the one shift, which, according to
the enquiries of the experts, is all that the rate of delivery
of steel makes possible at the present moment in the majority of
cases. He also counts on being able to organise the supply of
engines, winches, anchors and other parts of the completed ship
so as to bring all parts of the ship to a state of readiness at
the same earlier date as the hulls. By this means General Goethals hopes to turn
out 3,000,000 tons in the next eighteen months. By the end of
that time or even before it should be possible to have erected
new yards which will render possible a material increase in the
rate of output.
On behalf of the British Government I stated that our sole desire
was to secure that as much tonnage as possible should be
constructed and put in active operation in trades essential to
the successful prosecution of the war in the shortest possible
time. I asked whether General
Goethals in the course of his energetic enquiries
has obtained any information tending to show that the contracts
placed for account of His Majesty’s Government with yards in
this country were in any way an obstacle. He replied that he was
not prepared to say this, as his only information was that
certain builders had stated in general terms that if the ships
at present on their slips could be more rapidly completed their
yards would be freer to deal with his new programme. I then
stated that, as regards the question of the ownership of the
ships for which contracts had been placed by the British
Government,
[Page 599]
and as
regards the question of the flag under which they should
eventually be launched, we were not called upon to make a
decision and we would make no claim. These questions were
primarily ones for the consideration of the Government of the
United States. If that Government, after full consideration,
were to inform us that they could only arrange for the speediest
possible construction and putting into commission of the maximum
number of ocean-going ships, which we agree to be the paramount
object to be attained, by taking over, varying or cancelling any
contract or contracts now in existence, His Majesty’s Government
would certainly not stand in their way and would only ask that
the grounds on which the technical advisers of the United States
Government had formed this opinion should be communicated to,
and, so far as reasonably possible, deliberated upon with, the
technical advisers of His Majesty’s Government. Similarly, if
the United States Government were to inform my Government that
it was desirable on broad grounds of national policy that any or
all of these ships should be owned in the United States and
should fly the American flag, my Government would unhesitatingly
bow to the decision so conveyed to them. His Majesty’s
Government therefore can only await an official expression of
the views of the Government of the United States through the
usual channels and meanwhile I would draw your attention to the
official assurances and statements which I had the honour to
convey to the Secretary of State in my memorandum enclosed in my
letter to him of May 15.
I am forwarding a copy of this letter to the Secretary of State
and General Goethals.
Believe me [etc.]
