File No. 656.119/853

The Chargé in Great Britain ( Laughlin ) to the Secretary of State

[Telegram]

3199. War Trade Board [from Sheldon]:

No. 1755. As preliminary to beginning general negotiations Dutch delegates have submitted memoranda under five headings which I have sent you by pouch and which are in summary as follows:

(1)
Imports to Holland are requested on basis of last January’s negotiations on some modifications and additions.
(2)
Exports to Germany are based upon memorandum of August 22, from Netherlands Minister of Foreign Affairs to Allied representatives at The Hague. This states Holland is dependent upon Germany for coal, 3,000,000 tons yearly; iron and steel, 240,000 tons yearly; salt, potash, chemicals, dyestuffs, wood, limestone, lime, cement and machinery and adds if any of the above articles could be supplied by Allies this would be welcomed as augmenting Holland’s independence. As compensation for above articles export to Germany is suggested of such small quantities of cheese, milk and sugar as can be spared totaling 13,000 tons yearly vegetables, cattle, hides, horses, foals, offals and small quantities of technical fats.
(3)
From a review of shipping situation conclusion is reached that Allies obtained more ships by requisitioning than they would have obtained on basis of London negotiations and that balance remaining is inadequate for Dutch needs. Hence it is requested that additional Dutch ships should be allowed to serve purely Dutch interests.
(4)
Request is made that exports and imports between Dutch colonies and Allies be facilitated as much as possible to meet Dutch colonial requirements and in return export licenses from Dutch colonies will be granted as much as possible to meet Allied requirements.
(5)
Dutch are prepared to consider proposals regarding a loan.

[Page 1554]

At opening meeting held after the receipt of above memorandum Allied representatives took position that quinine and bark had been left to private negotiations already concluded as suggested by Loudon in his note to British Minister July 18 and could not therefore be considered at all as part of general negotiations under above fourth heading. It was emphasized that this should be made clear and export licenses for quinine and bark under contract be assured before general negotiations were proceeded with. Dutch took this point under consideration, indicating they might reply favorably as soon as reply could be received from Holland. Dutch emphasize importance to them of early return of three steamers now in Dutch East Indies with cargoes of fats for Holland, totaling from 8,000 to 15,000 tons. This question they were willing to regard as independent of quinine question, but desire that it be given early and favorable consideration.

Laughlin