File No. 656.119/261f
The Secretary of State to the Minister in the Netherlands ( Garrett)
1047. Reports from Holland have reached us indicating that misapprehension exists as to the character of action taken under the President’s proclamation of March 20 relative to ships of Netherlands registry lying within our territorial jurisdiction. There appears to be fear that these ships are permanently lost to their owners and to the Dutch flag.
The United States has not taken title to any Dutch ships under the recent proclamation of the President but is merely taking over their temporary use. Liberal chartering rates will be paid and the ships returned at the termination of the present emergency and not later than the end of the war. The United States will assume all war and marine risks and in event of loss by enemy action in the “war zones” as defined on March 1, 1918, the owners will be given the option of receiving payment of the value of the vessel or having the vessel replaced as soon as possible after the termination of the war, in the meantime receiving interest on the value of the vessel lost. Dutch crews and officers will be maintained at the expense of the United States until suitable opportunity for repatriation occurs.
You may inform the Foreign Office of the foregoing and make such other utilization thereof as you see fit.