File No. 656.119/628b
The Secretary of State to the Chargé in Great Britain ( Laughlin)
8486. For Sheldon [from War Trade Board]:
No. 736. Supplementing our No. 719, Department 8397, June 22 [24], noon. Department has transmitted to Garrett for an expression of his views a synopsis of note proposed to be delivered to Netherlands Chargé, declining to permit three additional Dutch ships to sail from Western Atlantic waters with bread cereals and dealing with subject of German prize-court regulations. Doctor Taylor will be familiar with the general tenor of this proposed note. Garrett has now replied approving our taking a determined stand in opposition to Germany’s prize-court regulations which prevent Netherlands from sending ships to lift grain in accordance with the terms of original offer and approving our refusing the request of Netherlands Government for three additional ships from this side. Garrett however strongly urges that a specific and unconditional offer of rations be immediately made to the Netherlands. He suggests that we at once offer to put at disposal of Dutch Government at least two or four months’ quota of rations as fixed in the general agreement, covering essential articles such as coffee, cotton, tanning materials, etc. Garrett points out that elections are to take place on July 3 and he considers it very advantageous that an offer should be outstanding at time elections are held.
We heartily concur in this suggestion of Garrett, which is directly in line with the recommendation made in our 719, and we urge that an offer be at once made to the Netherlands Government by the Associated Governments to facilitate the importation by the Netherlands of a two months’ quota of those items of the annual rations fixed by [Page 1507] the general agreement which are hereinafter scheduled. These supplies to be lifted by ships sent from the Netherlands for that purpose. This offer to operate as a modus vivendi pending the conclusion of discussions for the precise terms and conditions of a complete ration. We think acceptance of the offer should be required within a stated period on the ground that it is necessary for the Associated Governments to know in advance as to the supplies which they must arrange to put at the disposal of the Netherlands. The supplies then to be lifted within two months following such acceptance. It should be stipulated that no foodstuffs should during the pendency of this modus vivendi be exported to Germany except such exports as may be contemplated under existing agricultural agreement with Great Britain, nor should there be exported to Germany any of the commodities imported or other commodities released thereby.
We do not think that the question of arranging British credits should be allowed to defer making such an offer, nor do we feel that the prospects of satisfactorily adjusting this and similar questions will be injured by making an offer in the above sense. If offer were not accepted it would clearly demonstrate to Dutch people where responsibility lies for failure to receive supplies.
The list of commodities as to which two months’ ration should be offered are: cocoa, coffee, tea, wines, nuts, honey, petroleum and products, turpentine, rosin, waxes, capoc, coir yarn, cotton and cotton goods, hemp, jute, wool and woolen manufactures, tanning materials, fibres for carpets, etc., calcium carbide, aluminum, antimony, copper, lead and lead manufactures, chemicals, iron and steel machinery, castor oil, tobacco, magnesite. Bread cereals are already covered by outstanding offer. United States cannot undertake to license for export the foregoing commodities except subject to principles of conservation.