File No. 763.72112Sa/23a
The Acting Secretary of State to the Ambassador in Great Britain ( Page)
403. For Sheldon [from War Trade Board]:
No. 926. Special meeting of War Trade Board was held yesterday, July 24, to consider situation arising from Germany’s threatened control over neutral shipping by “safe conduct” system. There were also present Crawford, Fisher, and Hudson of the British Embassy, and Grimprel of French High Commission. After exhaustive discussion it was generally agreed that the situation should not be temporized with, but that the Associated Governments should promptly make clear to the neutral governments concerned the consequences which acceptance of German control might entail. It was felt that if Germany is permitted unopposed to institute her system of control by safe conduct, it will be inevitable that such control will gradually be extended and developed to a point where the Associated Governments will be bound to take notice and oppose the same. Since such development appears to be inevitable, we are strongly of the opinion that the Associated Governments should take immediate action before the neutral governments and peoples are accustomed to this device, while the neutral governments are still protesting against German pressure and might be aided by the statement of our position, and while military developments are [Page 1091] favorable. The following proposal was adopted by the War Trade Board and has since been approved by the Department of State:
- 1.
- The Associated Governments (Great Britain, France, Italy, and
the United States) will through diplomatic channels,
simultaneously and as promptly as possible, communicate to the
European neutral governments an identic communication, the
substance of which will be as follows:
The Associated Governments are reliably informed that the German Government now is attempting to control neutral shipping generally through a new device improperly termed a “safe conduct,” which constitutes in fact but a threat of illegal condemnation or destruction unless German control is accepted. Such control would extend to German supervision of the personnel of passengers and crew, the character and consignment of cargo, mails, etc., and the movements of the vessel itself. Large sums of money must in at least certain instances be placed under the control of the German Government by the neutral shipowners, this being in effect but a forced loan. The Associated Governments observe that such control may operate to deprive vessels accepting the same of their neutral character, and the Associated Governments accordingly reserve the right to deal with any vessel which has subjected itself to enemy control as the circumstances in each case may warrant.
- 2.
- While the foregoing communication will be made through diplomatic channels, it must be anticipated that the attitude of the Associated Governments will become publicly known. It may, indeed, be deemed desirable for the Associated Governments to make a public statement along the lines of the communication above referred to. In any case, special steps will immediately be taken through press dispatches, etc., to inform neutral peoples of the details of German threats and of the control which they would impose, and to educate these peoples as to the consequences which such control would entail according to the general accepted principles of international law. Unless this is effectively done, German propaganda may result in putting us, in the eyes of the neutral world, in the position of attempting to tie up neutral shipping with the object of nullifying the trade agreements recently concluded.
It will be noted that the above proposal does not definitely commit the Associated Governments to any specific form of action in the event that, despite their observations, neutral shipping accepts enemy control. It is felt that the course to be adopted in this contingency should be left for determination in view of the specific circumstances which may call for such decision.
We have given a copy of the above-quoted proposal to the British Embassy and the French High Commission which, we understand, have cabled the same to their respective governments with, we believe, expressions of their approval of the course therein outlined. We expect also to discuss the matter with the Italian Embassy.
[Page 1092]The Foreign Office will doubtless discuss this matter with you and, in the event that they do so, you are instructed to endeavor to secure the concurrence of the British Government in the foregoing proposal.
Please cable as very confidential a copy of the foregoing proposal to the American Legations at The Hague, Stockholm, Christiania, and Copenhagen, with request that they cable the Department an express[ion] of their views. We are cabling McFadden in terms similar to this cable to you and requesting him to repeat our proposal to the American Embassy at Spain.
Upon receiving your report, State Department will instruct diplomatic representatives.