File No. 611.419/2718

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

[Telegram]

3498. War Trade Board [from Sheldon]:

No. 1819. Supplementing Embassy’s 3427, November 4, our 1802.1 Proposal summarized therein though made orally was not afterwards submitted in writing hence it will not be sent you by pouch. As a [Page 1556] result of informal conversations following submission of above proposal it seemed expedient to substitute following which Dutch have accepted:

November 6, 1918.

Dear Mr. Colijn: Since the receipt of the note dated November 2 we have had the advantage of conversations with you and Mr. Snouck which I hope will render it unnecessary to reply formally to the note as the conversations [conclusion of] a modus vivendi has I hope resulted. I understand that you are prepared to arrange immediately that 50,000 kilogrammes of quinine and 400 tons of bark shall be at once furnished to the agents of the Associated Governments and that licenses for its export shall be at once granted and also that the Netherlands Government will undertake forthwith to use its best endeavors to secure that the contract made between the agents of the Associated Governments and Mr. Schalkwyk shall be carried out in its entirety. Should this not be arranged before December 15 next the Netherlands Government will undertake that supplies stipulated for in the contract will be furnished at once by it on the terms provided in the contract and that these and any supplies purchased from British or Allied-owned estates will be licensed for export.

I can assure you that the Associated Governments are prepared to recognize the claim that the export of some commodities from Holland to Germany may be necessary in order to enable Holland to obtain in exchange some necessary supplies. It is understood that Holland is prepared to export supplies to Belgium, as freely as her own needs permit and further that Holland’s exports to Germany shall be dependent on satisfactory arrangements being made concerning the export of supplies to the liberated regions of Belgium and France. It is understood also that no exports are proposed of any foodstuffs other than fresh vegetables to Germany except limited quantities of fish, milk and cattle the proportions and quantities of which are to form the subject of negotiation. I can also assure you that the Associated Governments are prepared to facilitate the import into Holland of supplies agreed to be necessary to meet her home requirements, and that the Allied Governments do not intend to take any measures to withhold from the Dutch colonies the supplies which, after satisfying their own and Allied requirements, can be given by the countries and colonies concerned and it is understood of course that the Dutch colonies will similarly not withhold their supplies from the Allies. I understand a similar arrangement between the Netherlands East Indies and United States of America already exists.

Upon hearing from you that this correctly represents the result of our informal discussion I propose, if you are agreeable, that the negotiations for the general agreement shall be pursued as rapidly as possible.

Believe me [etc.]

L. Worthington Evans

P.S.: In reference to the paragraph dealing with Dutch colonial trade the undertaking is subject to the concurrence of the governments of colonies and dominions concerned.

I hope you approve of the foregoing.

Laughlin
  1. Not printed.