File No. 656.119/215
The Minister in the Netherlands ( Garrett ) to the Secretary of State
[Received March 14, 10.35 a.m.]
2138. The Minister of Foreign Affairs yesterday addressed a letter to the States-General accompanying a note, both of which are published today, on the subject of the negotiations with the Associated Governments concerning an economic arrangement. The letter says that since drawing up the note a report has reached the Minister [Page 1411] that the Associated Governments desire to withdraw their promise to agree with Dutch condition that Dutch vessels sailing for account of the Associated Governments would not be used in the danger zone. Note as follows:1
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As is explained above, it was for Dutch Government to make proposal upon the foregoing basis. The Government did not consider it advisable to proceed to this without first having consulted Germany. Firstly, because the limitation imposed upon exports on any supply of cattle food and fertilizers might make it impossible to obtain an economic arrangement with Germany for the supply of indispensable goods such as coal, etc. In the second place, because by closing the free channel in the North Sea, Germany might render impossible the carrying out of an agreement as intended above. The difficulties thrown in the way by Germany of the sailing of the Nieuw Amsterdam on her last trip had strengthened the Government in its opinion. The German Government, whose point of view regarding the ceding of neutral tonnage is given by the article in the Norddeutsehe Allgemeine Zeitung, which was also published by the Dutch press, stated that it was not able to cooperate in increasing the tonnage in oversea countries as by doing so it was playing into the hands of its enemy. Therefore it had to object that Dutch tonnage still in Dutch ports should leave those ports. This attitude made it impossible for the Dutch Government to make any proposals, to the Associated Governments. On dividing tonnage as explained above it has taken into account that the whole fleet would be in navigation. Moreover, it was not to be thought of that the Associated Governments would allow a ship to leave for Holland even with German guarantee of the free return if the Dutch fleet had to remain laid up and even with an Associated Government guarantee of uninterrupted return would not be able to sail. Negotiations with the German Government give good grounds for the expectation that it will be found prepared to revise its attitude so far that it will not oppose the sailing of a vessel lying in Holland provided this is exchange for a vessel lying on the other side of the ocean. If it is in the meantime taken into consideration that there is here 298,476 tons suitable for the transatlantic service apart from some passenger vessels which do not come into consideration for this service, which will undoubtedly have to serve for Dutch supplies, [then] it is clear that even with this revised attitude an arrangement would only be able to be reached which could not by any means be called satisfactory. Owing to the system of exchange the tonnage for Holland especially for supplies from the Indies, will be extremely limited. Germany stated that she had to object upon principle against any limitation of export which was obviously directed against that [Page 1412] country and on the basis of such a limitation imposed would not be willing to enter into negotiations with regard to a new economic arrangement. The Government has found in this a reason to give notice that it would not make any proposal in this matter which contained a compulsory limitation of Dutch exports. The delay in the bringing about of an arrangement was a reason for the Government to make an endeavor to get the Associated Governments to furnish Holland with 100,000 tons of wheat before the settlement of a definite arrangement. The American Government itself has to encounter difficulties with regard to the production of grain and concerning some distribution and conveyance to the ports. Added to this it has, beside the question of her own needs, in the first place to take into account the needs of the Allies. Nevertheless it has in agreement with the Allies declared itself prepared to satisfy the Dutch Government’s wish, provided we on our part acted as if the definite arrangement already existed. This would mean that the tonnage to be made available for the Entente according to the aforesaid basis was now at their disposal. The Government is now investigating whether it is possible to take steps to proceed to such a transaction and hopes very soon to come to a decision.
- Narrative of negotiations omitted.↩