File No. 763.72112Sa/–
The Minister in the Netherlands ( Garrett) to the Secretary of State
[Received May 17, 11.16 a.m.]
2637. According to Dutch press on April 27, German prize ordinance, article 55(c), was revised as from that day to read (translation):
A neutral vessel henceforth is considered engaged in enemy war activities as far as circumstances to the contrary do not prove otherwise, if the country whose flag the vessel bears has made a contract with an enemy country regarding destination, granting of shipping space or if a preponderating part (der überwiegende Teil) of the fleet [of] that neutral state is in enemy service.
This announcement has aroused considerable angry Dutch criticism, notably Handelsblad declares that new rule will apply to all Dutch vessels in all trades whatsoever on account of fact Holland entered into agreement with Allies last January in making modus vivendi and that if a Dutch vessel attempts to sail seas without German letter of assurance, it will be treated as if it were in danger zone.
While Dutch shipping circles do not apparently feel that the above ordinance is aimed primarily at Holland, less than half of whose fleet is in Allied service, particularly on account of non-carrying-out of modus vivendi, the effect of it is taken to be that German letters of assurance will have to be carried by all Dutch vessels. I understood from well-informed source that [arrangements recently reached] between Holland and Germany for issue by Germans in the near future of such letters. Capital should be made of the above situation by denouncing Germany’s illegal pretensions.