File No. 656.119/357

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

[Telegram]

9537. War Trade Board [from Sheldon]:

No. 434. Your 334.2 I have had several interviews with the Foreign Office regarding the terms upon which rations should be granted to Holland. The statement in your telegram above referred to would almost lead us to believe that you contemplate changing the locus of negotiations from London to Washington and the Foreign Office is somewhat disturbed by the report that you had agreed to allow the steamship Java which was in Savannah and the steamship Juno in Curaçao, to lift grain rations to Holland without the British [Page 1464] Government being at least forewarned that such action was contemplated. I think that unless some new understanding is arrived at the original agreement should remain in force; that the Dutch and Swedish negotiations should be conducted in London and the Norwegian and Danish in Washington. The Foreign Office has cabled Lord Reading that they presume there is no intention on your part to offer the Dutch their ration imports unless and until the Dutch have resumed negotiations for a general agreement. The British Minister at The Hague reports that the Dutch Government seem to regret the attitude they have taken and that they would gladly find some means without loss of dignity of reopening negotiations. The Dutch Minister here today informed the Foreign Office that he believed it possible shortly to start again these negotiations. If this proves to be the case it would seem unwise, and the British are strongly of this opinion, to grant ration imports except we come to a definite agreement covering the following points: (a) fish agreement; (b) continuation of agricultural agreement; (c) credit arrangements; (d) agreement to supply East Indian products required by Allies. It would undoubtedly facilitate the Dutch reopening negotiations if we should declare that no further boats would be requisitioned. The British, I think, are willing to agree to this as regards those boats which were in neutral ports, but as regards boats that were on the high seas previous to March 20, the British are unable to come to a decision until they examine further how many of such boats might still be requisitioned. The food situation in Holland is doubtless influencing the Dutch Government toward a more conciliatory attitude, and this tendency, if properly handled, ought to be taken advantage of. The newspapers report that export of all foodstuffs to any destination is now prohibited.

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