File No. 103.96/194

The Ambassador in Great Britain ( Page) to the Secretary of State

[Telegram]

8249. Following for War Trade Board from Sheldon:

No. 21. Van Vollenhoven has just handed me copy of telegram from his Government as follows:

We agree with primo of provisional agreement all vessels in American ports except those mentioned clauses 2 and 3 to be sent out for one round trip as designated by American authorities outside submarine zone, [maximum] duration voyage round trip 90 days. Of these vessels an amount up to 150,000 tons to be employed in service of relief. On departure of a vessel to Holland in relief service corresponding vessel will leave Holland for America but departure [Page 1389] must be gradual as amount ships on the water at one time cannot be unlimited. To prevent difficulties with our population it would be highly desirable that certain percentage of each relief cargo were placed at our disposal for inland consumption as advance on rationing. We do not, however, make this an imperative condition.

If American Government agree to release Zeelandia, Celebes, Gorontalo, Ternate, Samarinda, and Adonis immediately with original cargoes on condition that Overseas Trust will keep the goods in bond until special permission for release given excepting 8,000 tons rice per Samarinda and coffee per Adonis which are placed immediately at disposal our Government, six corresponding ships leaving here could on arrival in United States at once be used for transport our own supplies in case definite arrangement is then concluded. You must naturally obtain assurance British Government that no ships navigating under this agreement will be interfered with. Shipowners agree with this arrangement and will arrange details, conditions, freight, etc., in America. Wire if approved.

I am informed that steamers Nias and Ceylon are in San Francisco with general cargo for Java and that the Hercules is empty and may be included in number 1. This explains the number of ships mentioned in the Dutch telegram being six instead of nine. Van Vollenhoven points out that he believes his Government would be quite willing to allow boats in clause 1 which leave on short voyages to be rechartered for a second round trip in case a definite agreement is not concluded on completion of the first round trip. Snouck will arrive in Holland on Monday and Van Vollenhoven hopes you will cable your reply immediately so that this provisional tonnage agreement may be put in force before lengthy discussions commence in Holland over the general agreement. It is important, therefore, to cable at once if you approve of the above, so that a definite undertaking may be arrived at here in writing covering these points and that [charters] be arranged immediately in America. I take it the Dutch are willing to charter the boats in clause 1 without any conditions about the six boats [being] released, but they do desire to point out the advisability of their release. Note that the rice and coffee would go to Government and not merchant consignees.

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