File No. 656.119/91

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

My Dear Mr. Counsellor: I enclose copy of a letter which has been written to Mr. McCormick in reference to Holland.

Yours very truly,

R. Crawford
[Page 1142]

The Secretary of the British Embassy ( Percy) to the Chairman of the War Trade Board ( McCormick)

Dear Mr. McCormick: You asked me on Tuesday whether I had anything to say about Holland in anticipation of your meeting with the Dutch mission either to-day or to-morrow. I replied in the negative, because I thought that our views had all been put before you many times, and I did not want to bore you by reiteration. I think, however, that the board had better have in their hands the enclosed summary, taken from a recent Foreign Office telegram, which is intended to state the minimum that we hope will be obtained. I think there is nothing new in this summary, except point 2, regarding the loan, which is analogous to the provision inserted in the proposed agreement with Denmark.

I would also draw your attention to the prohibition of export from Holland of hides, horses, charcoal and leather. As regards horses, we have a despatch from the Foreign Office, drawing attention to the very large importation of automobiles by Holland in the past, including motor cycles, etc., and this despatch suggests both that an absolute prohibition against the export of motor vehicles of all kinds to enemy countries should be imposed by Holland, and that the export of horses to enemy countries should be likewise prohibited on the replacement principle.

You will observe that the enclosed summary suggests that imports of feeding stuffs and fertilizers should be absolutely refused to Holland. This I do not think entirely agrees with your position, as taken up in your memorandum of October 12th, but I think we all agree on the principle (the exact application of which is a question of statistics) that no feeding stuffs should be allowed to Holland beyond the needs of her own population solely, and that if, in order to supply the needs of her own population, some feeding stuffs have to be imported into Holland, then certainly Holland should be allowed to import no oils or fats, since ex hypothesi she would have sufficient dairy products to supply her fat needs.

Yours very truly,

E. Percy

(A) Summary of Conditions to Be Fulfilled by Holland

Tonnage arrangement between Holland and Great Britain must be concluded satisfactorily on basis now being discussed between the two countries.
A loan to the Allies by the Dutch.
Transit traffic via Holland of cement, gravel, sand, metals, etc., must immediately and completely cease.
Exports to enemy countries as follows must be stopped: skins (even on live animals), hides, horses, charcoal, all leather, food, foodstuffs (including fish, shellfish, fresh water fish and fish products).
Continuation of exports to the Allies and United Kingdom.
Belgian relief supplies to be continued.
All imports to be under trust control.
A monthly statement to be furnished containing complete and reliable statistics of all exports.

[B] Summary of Facilities to Be Allowed to Holland

Wheat and flour imports in fixed proportion to imports made for Belgian relief.
Rationed imports of other articles on a scale to be fixed excluding however all imports of feeding stuffs and fertilizers.
Bunker facilities for Dutch vessels abroad.
Coal to be put at disposal of Dutch in United Kingdom.
We attach greatest importance to conditions under “A” numbered 3 to 7 inclusive.