File No. 656.119/712
The Ambassador in Great Britain (Page) to the Secretary of State
[Received August 28, 5.10 a.m.]
1426. Ship Mission No. 473, for State Department and Hurley:
Dutch shipowners have sent two representatives to discuss with British authorities and ourselves, the terms communicated by Townley and Garrett. Dutch have agreed to accept the first proposal, to wit, the Swedish scale of values with the conditions as to payment.
They suggested two changes in this scale of values:
- (1)
- Creation of a new subdivision for vessels from 10 to 20 years of age to be valued at £67 10s. per gross ton. Both the [Page 1523] British authorities and ourselves stated that we would not recommend its adoption by our Government since Swedish scale is a very high scale and this change would add substantially to our obligations.
- (2)
- That Dutch owners should have the option of taking the Swedish values per gross ton or the corresponding value per deadweight ton, final scale to be as follows: vessels up to 10 years, £75 per gross ton or £50 per deadweight ton; vessels up to 30 years old, £60 per gross ton or £45 deadweight ton; vessels over 30 years, £52 10s. or £35 per deadweight ton. This change would add somewhat to our total liabilities but the British authorities and ourselves feel that it is fair and we recommend its adoption.
Following proposal was made concerning replacement: That the United States Government or the British Government should have the option of tendering and the Dutch owner to have the option of accepting an existing steamer with an adjustment of differences in age. If no existing steamer is offered, or if offered is not accepted by the Dutch owner, a steamer to be built substantially like the vessel lost with an allowance for age, the allowance for age to be depreciation calculated on the original cost of the lost boat at the rate of 5 per cent per annum. This allowance for depreciation to be paid by the Dutch owner before delivery of the vessel. We recommend the adoption of this statement concerning replacements. The British authorities have recommended its adoption by the British Government.
Dutch representatives desired to have the option of naming the yard at which the vessel is to be built. We stated that we thought the American authorities would not be willing to give such an option. The British authorities are willing the Dutch should select the yard from available yards to be named by British Government with the condition that in event of a yard selected by a Dutch owner only being able to give later delivery, that the British Government could arrange in another yard. The 10 per cent interest would only run to date at which delivery could have been given in the other yard.
Do you desire to make a similar proposal?
It was agreed that the age of the ship was to be the age at the date of loss. Whenever a Dutch steamer is lost it was agreed that notice should be given to the Dutch Shipowners’ Association through the British or American representative at The Hague and that the Dutch owner should announce his option for replacement or payment in cash through the same channel.
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