File No. 411.57N83/106

The Commercial Adviser of the British Embassy ( Crawford) to the Counselor for the Department of State ( Polk)

My Dear Polk: Here is the draft of the telegram I propose to send. Let me know whether you agree.

Yours very sincerely,

Richard Crawford
[Enclosure—Draft telegram]

The British Embassy at Washington to the Foreign Office

We have discussed the question of Norwegian shipping with Shipping Board and State Department. They represented on behalf of the United States Government that in their opinion there should be equal division of the control and distribution of the tonnage between the United States and His Majesty’s Government. In order to give effect to these representations as far as possible under existing conditions we have agreed to submit a draft understanding on the following lines for your approval.

1. Ships on time charter to United States citizens and ships operating between the United States and South America on the Caribbean to be taken on time charter by the United States Shipping Board.

2. Ships on charter to British subjects to remain at the disposal of the British Government.

3. Ships now in the service of France and Italy to be reallocated to such service on the expiry of their present engagements if the war situation so requires.

[Page 640]

4. Any balance over and above the ships retained by Norway for her own requirements to be allocated to war services as may be agreed between the I[nter]-A[llied] C[hartering] E[xecutive] and the United States Shipping Board.

For all the above purposes Great Britain and the United States shall have an equal voice in all decisions relating to employment of ships, without prejudice to the rights of France and Italy. For this purpose the United States Government will appoint a representative to attend all meetings of the I.A.C.E. in London and the British Government will maintain a representative at Washington for purposes of consultation with the United States Shipping Board.

The general principles laid down in your telegram No. — are accepted as a basis for these decisions subject to such modification in form as may be hereafter agreed.

Royden and we agree that the above is the most satisfactory arrangement that can be made in all the circumstances and we hope that you will see your way to inform us by telegraph of your approval.

[For a statement in the War Trade Board’s letter to the Danish Minister, November 27, 1917, which “was written after long consultation with the British and French representatives here and has their approval,” that, after providing for various allocations of Danish tonnage, “any surplus shall be divided half and half between the United States and Great Britain,” see Volume II, page 1074.

For a statement by the Commercial Adviser of the British Embassy, received November 30, 1917, that his Government’s policy was “Swedish tonnage to be obtained as in the case of Denmark, to be shared on an equal basis by the I[nter]-A[llied] C[hartering] E[xecutive] and the Shipping Board,” see Volume II, page 1078.]