File No. 763.72112Sa/13

The Chargé in Great Britain ( Laughlin ) to the Secretary of State

[Telegram]

342. War Trade Board [from Sheldon]:

No. 1016. Referring to your 745, Department’s 8518, June 29, 6 p.m. Foreign Office advises me that British authorities feel in [Page 1089] general that although German prize regulations raise questions of considerable difficulty, no drastic or immediate action is necessarily called for. They are of the opinion that a neutral vessel trading in Allied interests in any manner would be sunk quite apart from any safe-conduct promise and that vessels which are in purely neutral service are likely, generally speaking, to be more or less immune. They do not think a safe-conduct policy would have any fundamental effect on the situation. They wish, however, to study the matter further and, accordingly, a meeting is to be held next week after which I will cable you again.

Laughlin