File No. 763.72111/4976
The Secretary of War ( Baker) to the Secretary of State
Sir: The suggestion has been made that on account of the great importance of securing nitrates for military and agricultural purposes the vessels engaged in supplying the military and civil necessities of the Panama Canal should be utilized by being given a return cargo of nitrate from Chilean or other nitrate ports so that the full tonnage capacity of these vessels may be utilized on their outgoing and returning trips. Coal and other military supplies will furnish a sufficient cargo from the United States to the Isthmus, but there is not sufficient commercial or other business offering at that point to afford a full return cargo for the vessels required, and I believe that the use of this cargo capacity for nitrates is imperative.
The question has arisen as to whether these vessels which are owned by the United States would be interned if they should proceed to neutral ports. It is proposed that the vessels all be operated by the Panama Railroad Co., a corporation incorporated under the laws of the State of New York, most of the stock of which is owned by the United States.
There is enclosed herewith a memorandum from the Chief of Office of the Panama Canal which sets forth the status of all the vessels operated by this company with respect to ownership.1
I would request that you advise me as to whether in your opinion the proposed undertaking could be safely carried on without any risk being incurred of the vessels being interned in the neutral ports which they would have to visit.
Very respectfully,
- Not printed.↩