File No. 694.119/17
The British Embassy to the Department of State
Memorandum
As it is not possible for Great Britain to supply Japan with raw materials, it is not now proposed to negotiate further in obtaining Japanese tonnage for the British Government, and the acquisition and employment of Japanese tonnage can be left entirely in the hands of the United States Government together with the supplying of all ship-building material.
The basis on which these negotiations should be made is obviously one in return for raw materials for ship-building; the present position of tonnage is so serious that it is absolutely essential that every Japanese ship should be obtained to trade in Allied interests. …
As there are only a few Japanese steamers actually chartered by the Allies for European trade, it is hoped that the United States Shipping Board will not now raise any objection with regard to the rechartering of these steamers on the expiration of their charters.
As His Majesty’s Government are resigning all claims to secure Japanese tonnage excepting those few charters mentioned in the preceding paragraph, it is also hoped that the United States will be able to give further assistance to France, Italy, Russia and Great Britain by the use of their own ships as well as neutral vessels which are at present on charter to United States firms, and also agree with the views of the British Government with regard to the present Norwegian tonnage arrangements.
[Received August 28.]
[For a summary account of steel and shipping negotiations with Japan prior to November 18, 1917, see the enclosure to despatch from the Ambassador in Japan, No. 15, December 3, 1917, post, page 713.]