File No. 656.119/235a

The Acting Secretary of State to the Ambassador in Great Britain ( Page )1

[Telegram]

6857. For Sheldon [from War Trade Board]:

No. 195. For your confidential information. This morning McCormick, after consultation British Embassy, stated informally to the Dutch Minister that it is the intention of the United States and the Allies to supply Holland with 100,000 tons of cereals whether she complies with Great Britain’s proposal to charter her ships without restriction of trading limits or by noncompliance obliges the United States and the Allies to employ her ships now in their waters, and [Page 1410] McCormick suggested that in view of this decision Holland might save time in securing her foodstuffs by making her decision immediately and starting ships at once from her ports for the United States and Argentine to lift these bread grains. McCormick also stated to the Minister that if Holland’s refusal to charter her ships without restrictions as to voyages obliged the United States and her associates to take over the tonnage, it was their intention nevertheless in addition to proper compensation therefor to return the ships after the war and replace such as might be lost by enemy action. The Dutch Minister had not been informed of Great Britain’s intention to requisition if her proposal not accepted by 18th and expressed much apprehension that requisitioning of Dutch shipping in our waters would throw Holland into the arms of Germany and added that if requisitioning occurred Germany would never permit Dutch ships to leave Holland to lift grain and would allege that they prevented such leaving because United States would not observe their guarantee of return upon such ships.

In order to convince Holland that our guarantees of return will be scrupulously observed, we are releasing Nieuw Amsterdam and will arrange for her to carry rice or coffee or both constituting cargoes of Samarinda and Adonis and which Holland was to have obtained under modus vivendi.

Also in the belief that it might act as a shock absorber we today ordered the release of the Dutch ship Oranje bound for Dutch East Indies with passengers and Dutch officials on board. We have agreements on both ships to return after discharge.

Repeat to Stevens and Garrett.

Polk
  1. See last sentence for instruction to repeat to Stevens, U. S. representative on the Allied Maritime Transport Council, and Garrett, U. S. Minister in the Netherlands.