File No. 763.72112Sa/13
The Acting Secretary of State to the Ambassador in Great Britain ( Page)
363. For Sheldon [from War Trade Board]:1
No. 896. Your 1016, Embassy’s 342, July 16, 10 a.m. We are unable to concur in view of Foreign Office that Germany’s proposed system of safe-conducts does not have any fundamental effect on the shipping situation. While it is doubtless correct that neutral vessels trading in Allies’ interests will be sunk when any opportunity affords, nevertheless the safe-conduct system will permit of the classification of neutral tonnage into two categories: (1) vessels operating to some extent in Allies’ interest and consequently not receiving safe conducts, and (2) neutral vessels operated to no extent whatever in the Allies’ interest, but primarily in the interest of the neutral and also of the enemy. Heretofore neutral shipping, aside from that chartered to us, has practically all been performing Some service to the Allies. These vessels will now in large part be precluded from rendering such services and the tendency will be to increase the number of vessels which will be entitled to safe-conducts through subjecting their cargoes, passengers, crew and destination to German visa. We point out that under proposed system it will become exceedingly difficult to supply northern neutrals goods required for the production of exports to the Allies. Also we must anticipate that this German system will be utilized to break down our system of control through consignment to approved agency. We are confronted by an instance of this in attempt of Germany to utilize safe conducts to prevent exports from Norway to Holland being consigned to the N[etherlands] O[versea] T[rust]. We also see evidence in the case of Swedish shipping of an unwillingness of Sweden to permit [Page 1090] their ships to perform, incidentally, service which may be useful for the Allies, for fear that this will jeopardize their chances of obtaining safe-conduct. There is furthermore a distinct benefit to Germany in definitely assuring itself in advance that a large block of shipping will not assist Allies, since that will facilitate German naval operations and permit concentration of efforts against shipping not supplied with safe conducts.
We are not yet clear in our own minds as to what policy we should adopt, but we are giving careful consideration to a request from the French Government that we should conform to the decision which they have taken to treat vessels bearing such a safe conduct as proper subjects for prize-court proceedings. You are authorized to present our views as above expressed to the British authorities, and we shall be glad to receive as soon as possible an indication of the conclusion which the British reach as a result of the further study which you state they are giving this matter.
Repeat to McFadden.
- See last paragraph for instruction to repeat to McFadden in Paris.↩