File No. 656.119/716

The Minister in the Netherlands ( Garrett) to the Secretary of State

[Telegram]

4142. Sheldon forwards me copy of your telegram to him, number and date unknown to me:1

We have authorized the sailing of the Nieuw Amsterdam with the cargo of grain for the use of the Netherlands Government upon condition that the vessel after her return to the United States will lift a cargo for Belgian Relief and have communicated this fact to the Dutch Chargé d’Affaires today.

The latter part of your telegram instructs Sheldon to furnish you immediately with details of the alleged published protest of May 27 by the Dutch Government against the German notification of article 55(c). For details of that protest see my 2980, May 31, 1 p.m.2

Although that protest has been published it cannot be said to have become widely known to the Dutch people nor does it seem to be clear to them that the detention of their ships and the nonarrival of supplies is entirely due to this German restriction. If goods were known to be awaiting shipment, further protests by the Dutch Government or demands for relaxation of the German restrictions might possibly be expected to have some effect, but until there are goods awaiting shipment the Germans might meet such protests or demands by claiming that there is scarcely any necessity for allowing these ships to go to America as there were no cargoes in America at the disposal of the Dutch Government for them to lift. If the Germans backed down before such demands and allowed large numbers of ships to go for which there were no cargoes, we would, to say the least of it, gain no advantage. It is understood that there are thousands of tons of goods in America awaiting shipment to Holland unloaded from the requisitioned ships as well as goods already licensed for shipment under relaxation of embargo lists. Could not the War Trade Board make a statement showing roughly the amount of these goods and that they are ready to be shipped and only await the arrival of the Dutch ships now detained by Germany? But of course such a statement should not be made as long as the Nieuw [Page 1528] Amsterdam, the only ship now freely sailing between the United States and Holland, is not allowed by us to take these or the Dutch goods. Perhaps by making such a statement as the one suggested above we can indicate a satisfactory line for public opinion to follow while awaiting a more definite statement as to our intentions in regard to the rationing of Holland.

The press announces that some 35,000 bags of coffee have recently arrived here from England and that some 10,000 cases of tea and additional coffee are expected, as well as other goods taken from Dutch ships requisitioned by England. Vessels are moreover constantly bringing from England goods on the Department’s embargo lists. Nothing is desired from America as a result. Effect of recent decision in regard to the Nieuw Amsterdam may almost be said to be a virtual nullification by us for time being of the relaxation of embargo lists and a loss of what we intended to gain by having such list. We have discovered in the relaxation of embargo lists a weapon to combat German commercial aggression and its political effect; by using this weapon in a purely negative way, as at present, we may be said to be getting no value out of it at all.

Garrett
  1. Department’s No. 926, War Trade Board’s No. 1067, Aug. 23.
  2. Ante, p. 1498.