File No. 656.119/826
The Chargé in Great Britain ( Laughlin ) to the Secretary of State
[Received October 16, 12.10 a.m.]
2809. War Trade Board from Sheldon:
No. 1665. Referring to your 1399, Department’s 1954, October 12, noon [11 a.m.]. Regarding Geestemunde [general] Dutch agreement I had a long talk last night with Blockade Minister and showed him your telegram; he concurred in the point of view expressed therein as representing the policy of the British Government. You will have realized for some time that the British Government has not been overanxious to induce the Dutch to negotiate for a general agreement; in fact, this has been one of the main points of difference between them and us for some months past, as the British Government has always held out against your plan of offering rations. They realize full well that your previous proposal to offer such rations was aimed at informing the Dutch public that their lack of raw materials and food was due to Germany preventing the departure of their boats rather than the use other [refusal] of the Allies to succor Holland. The British felt that such offer would not achieve the purpose and that it was much better to let the Dutch come to us, as eventually they must. This has been their attitude in recent communication through their Legation to the new Dutch Government to whom they felt it advisable to state that the Associated Governments were ready to take into consideration Holland’s real needs. I found the British Government not overanxious to make an agreement for the following reasons:
- (a)
- If no agreement is concluded very few exports will be available for Germany and there is therefore no particular blockade gain in concluding an agreement; an attempt will therefore be made to force Holland to discontinue all exports to Germany. It has been found that in general when limited quantities are allowed to be exported from any neutral it is very much more difficult to detect whether the exports are kept within the limits than it is to detect irregularities if no exports are allowed.
- (b)
- The British desire to force the Dutch to use much more care in supervising transshipment by rail and by water of materials stated to be for civilian use, but which are in reality of considerable military aid.
- (c)
- They desire to arrange credits.
- (d)
- They believe there will be a general advantage in securing more favorable Dutch public opinion through a general agreement which would be especially valuable in preserving the present advantage for Belgian relief and as mentioned in your [Page 1551] telegram possibly increasing the assistance for Belgian and French territory as freed.
I am informed that the Dutch delegates expect to come here almost immediately and that lately the Dutch Government has shown greater anxiety to negotiate for a general agreement between the two. As respecting the offer of coal, the Blockade Minister informed me that although the British Government did not approve of making this offer, they nevertheless were instructing their Minister at The Hague to join his American colleagues, believing joint action absolutely essential if you are determined to make the offer.