File No. 656.119/211

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

[Telegram]

8989. For the information of the War Trade Board and Shipping Board from Sheldon and Stevens:

No. 255. After consultation and deliberation we recommend that you concur in the British proposal to the Dutch as per War Trade Board cable No. 246 and hold all Dutch ships in port until new proposal accepted or rejected. This should bring a definite settlement by March 18. Our reasons for recommending adhering to new proposal and not requisitioning immediately are: (1) because the British cannot withdraw from the new proposal made by them to the Dutch without incurring charge of breach of faith, and immediate requisition by us acting alone would be considered by the Dutch a breach of good faith on the part of both Governments; and (2) because if the Dutch accept the new proposal which contemplates operation of vessels in war zone it would be almost as advantageous to us as requisitioning and would not incur the obvious disadvantages of the drastic measure of requisitioning. If, on the other hand, the Dutch do not accept this new proposal by March 18, and both Governments then requisition, we think that our joint action then would not have such a harmful effect on Dutch public opinion as would be the case if without warning we alone should immediately requisition.

Copy sent to Garrett.

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