File No. 656.119/219
The Secretary of State to the Ambassador in Great Britain ( Page)
7130. For Sheldon [from War Trade Board]:
No. 292. Your No. 290, Embassy No. 9071, March 15, 8 p.m.1 After careful consideration and in view of Garrett’s recommendation transmitted through Hayward, we are of the opinion that the time is now appropriate to offer to Holland substantially all of the commodities which she would have secured under the general rationing agreement, these commodities to be lifted by ships now in Holland. We desire to offer the annual rations set out in schedule A, enclosure No. 1 of your despatch of December 31, 1917,2 excluding the first two items of feeding stuff 250,000 tons and bread cereal, etc., 400,000 tons. With regard to these two items we feel strongly that no feeding stuffs whatever should be offered. In respect of cereals the Associated Governments have already offered 100,000 tons which it is estimated should suffice until the next harvest. We would, however, state to the Netherland Government on this subject [Page 1450] that if it should subsequently develop that on the basis of the present bread ration in Holland their present stocks with the addition of 100,000 tons will not suffice until the next harvest, then we will gladly consider putting further bread cereal at her disposal. It is, of course, understood that the amounts above referred to would be received subject to appropriate conditions against re-export, etc.
Before unconditionally pledging ourselves to facilitate Holland’s importation of these articles, we should, however, have some understanding in respect to Belgian Relief. We do not consider it advisable to press Holland to make any formal agreement with us which she would naturally be reluctant to do at the present time. We feel, however, that it would be satisfactory if Holland would give us to understand that in the event that tonnage still at her disposal leaves a surplus over the amount which she would have had for domestic and colonial trade under the permanent agreement, then the amount of this surplus shipping up to 100,000 will be put into the service of Belgian Relief.
Please give us your views and those of the Foreign Office on this proposal. Also repeat to Garrett asking him to give us his views. We are taking up this matter with the British Embassy here.