File No. 763.72112Sa/7
The Chargé in Denmark ( Grant-Smith) to the Secretary of State
[Received July 12, 12.15 a.m.]
2493. Your 955, July 5, 6 p.m.1
The German shipping demands made of neutrals are a direct result of the agreements now being concluded between them and ourselves. A counter-move was inevitable. I am informed that they demand that Norway deposit in Germany 1,000 crowns per ton dead weight for each ship applying for safe-conduct previous to departure, as guaranty. Disputes to be adjudicated by German courts. Should this excessive figure prove accurate, it would indicate an intent to preclude compliance, while ostensibly throwing the blame on us.
The German desire is of course through extreme pressure applied to neutrals to obtain the release by the Associated Governments of as much tonnage as possible, and to secure a hold over them for post bellum service. The effect on exchange as the result of such deposits would at once be marked. I have assurances from reliable sources, that the Germans have made no new demands of Denmark, but they fear the influence of Von Hintze at Berlin. One American interested [Page 1088] in shipping stated that it appeared now to be Germany’s policy to avoid sinking neutral ships on account of after-the-war trade, and also because it was to her interests to encourage the import into Denmark of as much goods as possible, knowing that a portion must leak through into Germany.
Denmark has a long-standing shipping agreement with Germany, a copy of which I have never succeeded in obtaining, but Mr. Foss yesterday assured me that it contained nothing inimical to the interests of the Associated Governments. I would suggest that the delegates be requested to produce it, or to cause a copy to be confidentially communicated to me here.
Should need arise, the only way to meet such a situation as regards this country would seem to be by threatening to decline to sign an agreement with Denmark, and to dispose of her tonnage as we saw fit, for the purpose of placing her in a position to plead force majeure to the Germans. A consequent public announcement to the effect that we were forced in the circumstances to withhold bunkers from all ships bound for Denmark in spite of our keen desire to supply them with certain commodities, might possibly stir the country to such an extent that sufficient public pressure might be exerted to cause a sensible diminution for a time of the export of foodstuffs to Germany and thus cause the latter to modify her attitude. The policy of the Danish Government seems to be one of helpless acquiescence. Copy to London.