File No. 103.96/84
The Special Representative of the War Trade Board ( McCormick) to the Secretary of State
[Received November 16, 2.10 a.m.]
For War Trade Board:
Our 2. Your 6 received. See our 1, November 14, 1 p.m., concerning Denmark.1 Important you should understand situation regarding neutral shipping as disclosed here. Colby advises me that England, negotiating directly with association of Norwegian ship owners, has agreement whereby in consideration of the monthly export to Norway of 250,000 tons of coal and coke, 200,000 tons of Norwegian shipping are to be placed in the coal trade between England, France, and Italy. The remainder of the Norwegian shipping, with exception of reservation of amount necessary for Norway’s urgent needs, is being chartered as prior charters expire to Inter-Allied Chartering Committee, rates ranging from 35 to 52 shillings, to engage in such trades as England may approve without restriction against war-zone trade. Intention of England is, so far as possible, to substitute Norwegian shipping for her own now engaged in trading outside war zone and release equivalent British tonnage for Allied service. The only way we can reconcile the British agreement and your negotiations is that the former is with ship owners’ association and the latter with Norwegian Government. I am very firmly convinced that tonnage negotiations should not delay proposal to be forwarded Schmedeman, per my cable 7670, November 11, 2 p.m.,2 which I understand he has not yet received and negotiations [Page 637] therefore seriously delayed. Colby states that England accepts following propositions: all neutral tonnage to be used without regard to whether England or America is charterer for mutual war purposes; all trading to be repressed that conflicts with most efficient use all tonnage for war purposes; whatever vessels, whether British or neutral, available for general cargoes to be divided between English and American merchants wherever situated, share and share alike; and equality of ocean freight rates to be accorded British and American merchants in whatever country situated. Colby has criticised proposed English arrangements with reference to neutral tonnage that contain any conditions exempting such tonnage from trading in war zone. English willing to revise or reconsider any existing agreements and observe our wishes with relation thereto, but they believe the Norwegian arrangements advantageous to both themselves and us, and that anything we could gain by direct negotiation is already secured in the existing understandings between England and Norway, plus attitude of England toward us with reference to the employment of Norwegian shipping in our mutual service.
Colby and I have had to-day conference with Cecil and representatives of French and Italian Governments and it seems general opinion, subject to the approval of respective Governments, the time has been reached to consider seriously requisition progressively and as required, at least, Dutch tonnage wherever situated.