File No. 656.119/202½
The British War Mission to the War Trade Board
Memorandum on the Present Position in Regard to the Dutch Shipping Agreement
The text of the Dutch shipping agreement was agreed ad referendum on the 4th of January, 1918. The fact that it has not yet been confirmed by the Dutch, coupled with the fact that the Dutch shipowners have been unable to carry into effect that part of the modus vivendi which provides for simultaneous sailing from England and the United States of certain Dutch vessels, points to the conclusion that German opposition will prevent the agreement being carried through in its present form.
At the time when the agreement was negotiated, there were over 400,000 d. w. tons of Dutch shipping in United States ports and the representatives of the Dutch Government were well aware that failure to reach an agreement would probably be followed by the requisitioning of these vessels and there is no doubt that they hope to use this as an argument to persuade the German Government to assent to the agreement. It would seem that they have not been successful in this.
Whilst the negotiations were in progress, the representative of the Dutch Foreign Office, Mr. Snouck, came forward with a proposal that all Dutch ships in United States ports should be immediately chartered to the United States Shipping Board for one round voyage. Contrary to the usual Dutch custom, no specific compensation was demanded in return for this concession, though certain concessions were asked for as favours. On being asked for his reasons for making this suggestion, Mr. Snouck stated that it was done to show Dutch good-will to the Allies and to promote the interests of the Dutch shipowners. No importance attaches to the first reason and the delay in chartering the ships casts some doubt on the accuracy of the second statement. The only motive which can be assigned for the Dutch action appears to be a desire to get the ships out of United States ports.
This being so, the question arises whether, having regard to the long delay which has taken place and to the difficulties which have occurred in regard to ships sailing from Holland, it is now desirable to allow Dutch ships to leave United States ports. If the Dutch Government have been unable to obtain German approval of the agreement whilst a large block of Dutch tonnage is lying idle in Allied ports, they will be still less likely to do so when these ships are safely on their way to South America; without German approval [Page 1397] the agreement can not be carried through and the only alternative would appear to be requisitioning.
If requisitioning is carried out, we shall obtain the use of—say 400,000 tons of shipping—but we run the risk of seeing the rest of the Dutch merchant ships laid up and of throwing Holland into the arms of Germany. To avoid this it is essential that requisitioning should be carried out in such a way as will be in the real interests of Holland. This can be done by informing the Dutch Government of our intention, so far as possible, to employ requisitioned ships in the manner provided for in the agreement. As the requisitioned tonnage will be considerably less than the tonnage we should obtain under the agreement, it would be reasonable to inform the Dutch Government that they will be allowed the supplies provided for in the agreement, on the understanding that the whole of the requirements of the Belgian Relief Commission in regard to tonnage, will be met out of ships now detained in Dutch ports. They might also be informed that we should raise no objection to the continuation of this trade between the Dutch East Indies and Allied countries, in the manner provided for in the agreement by Dutch ships now lying in Dutch colonial ports. The whole of the requirements of Holland will have to be met out of the tonnage remaining in Holland, after the needs of Belgium have been provided for.
In order still further to assist the Dutch shipowners, His Majesty’s Government might perhaps be able to offer Dutch ships the protection of our convoy system—
- (a)
- From overseas to England and
- (b)
- From England to Rotterdam
but before anything is said as to this it would be necessary to ascertain from London whether such protection is practicable.