File No. 659.119/377
The Chargé in Great Britain ( Laughlin) to the Secretary of State
[Received 8.55 p.m.]
318. War Trade Board from Doctor Taylor:
No. 1095. British Foreign Office make the following observations on tonnage negotiations with Denmark. Allies should receive 465,000 tons leaving Danes 350,000 tons. United States should press insistence on service of Danish sailing vessels in United States waters and also that such tonnage in the 350,000 as may not be needed for the importation of Danish rations should be used by Associated Governments outside the war zone. Even with these conditions it is still the view of the British maritime authorities that for the present the existing distribution of Danish tonnage would be preferable to the agreement for three reasons:
- 1.
- The shipping program to France during the coming month will require all available neutral and Allied tonnage.
- 2.
- The agreement must mean a loss to the Associated Governments of over 100,000 tons dead weight, probably nearer 200,000 tons, and it is not believed that this loss will be offset by the more settled control which fixed time charters under the agreement will give.
- 3.
- The Danes are likely to withdraw their largest and best ships to make up their quota 350,000 tons and such withdrawal would react strongly on the distribution of tonnage in the transatlantic trade.
The British Foreign Office reverts to the general terms of the negotiations for agricultural products exports to Germany as discussed with the Danes last fall. They are opposed to allowing any fodder or fertilizer and believe that the agreement should follow the old lines about as follows: Weekly exportable surplus of bacon, butter, including fresh milk and cream at butter value, and eggs, to be divided on a fifty-fifty basis between the United Kingdom and [Page 1334] Germany after all Scandinavian requirements have been satisfied, British share to be exported to destinations approved by Associated Governments if British are unable to purchase. Fish, 25,000 tons a year with a monthly limit, this to include live fish and fish conserves on a definite ratio. Six thousand head of cattle a week with a weekly limit to include fresh meat, salt meat, conserves, offal at a definite ratio for the latter. Danish Government to enforce absolute prohibition on export to enemy countries of all hides and skins other than on live animals, leather waste, leather goods in return for ration of heavy hides and tanning materials, rations to be on an exchange basis and export of Danish hides to destinations other than the enemy to take place only with approval of Associated Governments. Thirty thousand head of horses a year with a monthly limit of this figure to include horse meat.
With respect to other exportation it is suggested that schedules D and E under the existing Anglo-Danish agreement be withdrawn altogether. Exports of industrial commodities to Germany to be limited to the amounts in 1917 but as for statistics the two Danish associations or the Danish Government should be asked to provide monthly, within one month of exportation, a list of imports of rationed articles showing vessels on which, they reach Denmark, a statement for all important commodities showing country of origin and quantities; and a statement of all exports of all articles [with] country of destination. In framing clause limiting exports, Finland and all countries or territory in enemy occupation should be excluded. The two Danish associations should agree to issue their guarantees for all imports from Sweden and Norway. It is suggested that the Danish associations be asked to amend their usual guarantees so as to prevent the sales of imported goods directly or indirectly to firms on the black list. The British have no objection to the exportation of small quantities of fish to Norway and Sweden. The War Trade Board should obtain the insertion of a provision in any final agreement empowering the four Associated Governments to obtain credit for a total of 3,000,000 kroner monthly to be divided between themselves as they may arrange. Any advance not taken in one month to be carried forward to a subsequent period. The funds thus provided to be employed in the purchase of commodities in Denmark or Iceland.
I have no opinion on the subject of tonnage. I believe the British proposals on exports to Germany are correct and that the Danish proposals represent an entirely new viewpoint enforced on them by the enemy and that these should be rejected and the agreement drawn along the basis of our original discussions and the present British formulation.