File No. 611.419/2718
The Secretary of State to the Chargé in Great Britain ( Laughlin )
2765. For Sheldon [from War Trade Board]:
No. 1612. Your 1819, Embassy 3498, November 7. This cable seems to us to substantiate the fears which we have entertained lest the British in their conduct of the Dutch negotiations proceed to commit us to important policies without our previously being consulted [Page 1562] and indeed when these policies are known not to accord to our views. The letter of Worthington Evans, which you quote, states: “The Associated Governments are prepared to recognize 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,” and the letter proceeds by clear implication to acquiesce in the export to Germany of fresh vegetables, fish, milk, and cattle. This letter purporting to speak for the Associated Governments was sent without prior reference to us, although we had by our No. 1469, Department 2341, October 22, 2 p.m.,1 stated our views to be “that the objective of the Associated Governments should be the entire cessation of all exports to Germany and the making available to them of Holland’s entire exportable surplus.” This cable further pointed out that we felt that the Allies could supply all of Holland’s import requirements except possibly iron and steel and that even these might be spared by the Allies in view of the importance of making Holland entirely independent of Germany.
Irrespective of whether developments of the last few days might lead us to modify somewhat our views as expressed in our 1469, you will, we think, appreciate the anxiety which we feel and which we have frequently expressed to you lest again, as has several times happened in the past, we will find ourselves committed to a program which we do not approve and in regard to which we are not even given an opportunity to express our views.
With reference to substance of Evans’ letter, the proposition to have Dutch guarantee immediately 50,000 kilograms quinine and 400 tons of bark and furthermore that Government shall undertake after December 15 to furnish quinine and bark supplies stipulated in contract of Schalkwyk if that contract has not by that date been formally ratified is approved.
With reference to exports to Germany we had been disposed to adhere to the views previously expressed until cessation of hostilities, or at least that all exports of foodstuffs should be under our control. We realize that in view of recent developments the importance of this has much diminished and in view of the embarrassment which would be created in modifying at this date Evans’ letter, we are prepared to concur therein.
With reference to Holland obtaining from Germany necessary supplies, we feel that we are more than ever in a position to meet all of Holland’s requirements, particularly as the situation of iron and steel is rapidly changing so that we expect to be able to permit exports thereof more freely.
[Page 1563]It must be clearly understood that our imports from the Dutch East Indies of commodities regarded as unessential must be reserved for our own definition. There is no formal arrangement between us and the Dutch East Indies, nothing but a trading basis. The facilitation of our imports into Holland must be understood to include a reservation as to article, price, method of payment, and port of shipment. You will realize that the transition from state of war to state of armistice carries with it great problems in international transportation and industry which requires freedom of action if our interests and the interests of the Allies and neutrals are to be properly conserved.