File No. 656.119/261e

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

[Telegram]

6984. [Shipping] Board’s 14 for Stevens from Hurley:

Following are terms Board will make for Dutch vessels taken over under President’s proclamation:

1.
Employment will commence on March 20 at 6 p.m., and hire will be paid as of that date and hour. The vessels will be [Page 1424] returned to the owners at the port at which taken over or at some other port to be agreed upon in like good order and condition, ordinary wear and tear excepted, at the termination of the emergency, in no event later than the completion of the voyage on which a vessel may be engaged at the date of signature of the treaty of peace.
2.
The vessels will be placed under the American flag and will be manned, victualled, and equipped by the United States Government. Resumption of the Dutch flag will be facilitated as soon as the employment ceases.
3.
Compensation will be based upon American Chartering Committee rates prevailing in the trade in which the vessel is employed. For vessels employed in trades which include European and/or European Atlantic island ports the rate will be 35 shillings per deadweight ton or gross ton whichever may be the greater.
4.
All extra equipment and alterations necessary to fit the vessel for war service will be at the cost of the United States, the cost of repairs, if any necessary to render the vessel seaworthy at the commencement of the employment, to be deducted from hire.
5.
The United States will assume all war and marine risks and liabilities on a scale of values which will be communicated to the owners so soon as a basis equitable to vessels of the different types and ages involved can be arrived at. If a vessel is lost through enemy action in the war zone as defined March 1, 1918, the United States (at the option of the owner to be exercised within 30 days of the date on which the scale of values is communicated to him) will replace the vessel as soon as possible after the war paying interest in the meantime at 6 per cent on the value of the lost vessel.
6.
All moneys payable as compensation or otherwise will be paid in United States currency based on exchange rate of $4.75 per pound sterling.
7.
The Dutch crews and officers will be maintained at the expense of the United States until suitable opportunity for repatriation occurs.

These terms concurred in here by Captain Fisher.1 Please take up with British London authorities and ascertain whether agreeable to them. Understand British feel 35-shilling rates should be applicable to all trades. This would seriously upset South American rate situation and is opposed here. Unless strong objection by British, transmit terms to American Legation, The Hague, for informal communication to Dutch authorities with request that they be given publicity. Important Dutch should be informed of terms at earliest date possible.

Lansing
  1. Of the British War Mission.