File No. 656.119/878
The Chargé in Great Britain ( Laughlin) to the Secretary of State
[Received November 15, 5.55 a.m.]
3737 [3727]. War Trade Board [from Sheldon]:
No. 1874. This is urgent and should receive immediate consideration. The Dutch delegates, the French and Italian delegates, and the British Foreign Office last night received alarming news from Holland concerning revolution there, requested abdication of the Queen, and consequently were very desirous to-day of signing an agreement. [Page 1566] Colijn, who is the head of the Dutch delegates, was requested to return and will probably be the new Prime Minister. He was anxious to take back with him a signed commercial agreement with the Associated Governments and the Foreign Office were most anxious to help him in the work of suppressing Bolshevism which he is about to undertake. In spite of great pressure I flatly refused to allow any agreement to be signed without your having approved the text. This course was adopted. Colijn, however, signed the draft in the hope that you would approve it and the other Governments would sign it as they apparently were all ready to do to-day. I pointed out that it might be necessary to have some modifications and the Dutch delegates who remain here will be empowered to consider such modifications as you may suggest unless, however, you have strong views on some of the clauses in the draft or concerning omissions therefrom. I think it would be advisable to conclude an agreement in the shortest possible time. We are leaving any particular subsidiary questions to be treated in separate letters. Herewith is the text [as] signed by Colijn:
Memorandum of agreement between the Royal Netherlands Government and the British, French and Italian Governments and the War Trade Board of the United States referred to hereafter for convenience as the Associated Governments.
- 1.
- All Dutch shipping shall at once resume sailing and shall not tie up. The Associated Governments will use their best endeavors to provide bunkers and ships stores. The routes to be followed and the regulations for examining cargoes and passengers and crews shall be the subject of consideration forthwith.
- 2.
- It is the condition of this agreement that an arrangement shall be concluded within 30 days for the provision of a loan for the Associated Governments on terms to be agreed with the British Treasury and the French, Italian and United States representatives.
- 3.
- The Royal Netherlands Government will recognize the agreement made between the Netherlands Oversea Trust and the Governments of Great Britain, France, and Italy and undertake that the Netherlands Oversea Trust shall continue in existence so long as this agreement is in force. The Royal Netherland Government will take the necessary steps to maintain an effective prohibition of export to the Central Powers of all goods imported into the Netherlands under the Netherlands Oversea Trust agreement and the manufactures and products thereof including by-products and waste and articles similar unless otherwise agreed subject to their own requirements
- [4.]
- The Associated Governments will facilitate the importation into the Netherlands of the rations indicated in the annexed schedule.1 Such rations may be increased from time to time with the sanction of the Associated Governments who will take into favorable consideration any applications that may be made.
- 5.
- The imports into the Netherlands of articles dealt with by Allied committees or executives as well as nitrate imported into Java shall be purchased exclusively through or with the consent of such bodies, an arrangement to be come to with the Royal Netherlands Government satisfactory to the Oils and Seeds Committee regarding the sale and control of oils and seeds from the Dutch colonies. A Dutch representative to join the Oils and Seeds Committee as a member of the committee. That questions of representation in Allied committees or executives which deal with other commodities of which an important quantity is produced in the Netherlands or her colonies shall be considered. It is a condition of this agreement that an agricultural agreement satisfactory to the Associated Governments shall be made within 30 days hereof with the Nederlandsche Uitvoer Maatschappy and shall be assented to by the Royal Netherlands Government.
- 7.
- Statistics of Dutch exports and imports shall be provided by the Royal Netherlands Government in such manner and at such times as shall be agreed upon.
- 8.
- Statistics shall be communicated forthwith to the Associated Governments of live stock in the Netherlands and of stocks in the Netherlands of such commodities as Associated Governments shall require on which the rations are based or whenever any imports into the Netherlands of raw material are especially licensed by the Associated Governments or any of them for the express purpose of return in the form of manufactures or of packing or any other form the Royal Netherlands Government will give licenses for such export from the Netherlands. In this case of imports of non-rationed articles of the raw material as imported may be retained for home consumption in the Netherlands the Royal Netherlands Government will be previously notified regarding the terms upon which the imports referred to will be made [sic].
- 10.
- In the event of any portion of imported rations being requisitioned by the Royal Netherlands Government the same shall remain under the control of the Netherlands Oversea Trust in respect of their distribution and ultimate destination.
- 11.
- Without prejudice to the obligation of the Royal Netherlands Government to maintain the prohibitions of export specified in clause 3 hereof and except as may be subsequently agreed or is provided by clause 12 of this agreement and by the fishery agreement no exports shall take place to the Central Powers of fodders, fertilizers or foodstuffs of any kind, including animals alive or dead, and the products thereof, sugar whether in natura or sugar-containing articles, hay, straw, seeds except as agreed or manure, leather, hides and skins until treaty of peace is signed. Technical fats, bone grease or soap, except 130 tons of hard soap per month, bulbs, except bulbs for horticultural purposes which may be exported to the Central Powers on such terms as may be provided in the new agricultural agreement.
- 12.
- The Royal Netherlands Government declaring that it is
necessary for them to make certain exports to the
Central Powers in order to obtain essential supplies
from those countries, the Associated Governments will
not object to exports being made of the following
commodities, quantities not exceeding those specified
below:
[Page 1568]
- (a)
- One thousand tons of offals may be exported per annum to the Central Powers, the character of offals to be defined in the new agricultural agreement.
- (b)
- The export of seeds and flax to the Central Powers and to the Associated countries will be considered in connection with the new agricultural agreement.
- (c)
- The return of iron and steel scrap of iron and steel imported from the Central Powers and from the Associated countries will be considered.
- (d)
- The export of milk and milk-products to the Central Powers will be dealt with under the new agricultural agreement but shall not exceed 17 per cent of the total export from Holland in terms of condensed milk provided that not more than 4,400 tons in terms of condensed may be exported to the Central Powers within 12 calendar months.
- (e)
- Vegetables and fruit may be exported to the Central Powers as provided in the new agricultural agreement save that no fruit pulp or potatoes shall be exported in any form except as may have been previously agreed.
- 13.
- Any deficiency in respect of any article owing to the Associated countries under the existing agricultural agreement shall be made good before the article in respect of which such deficiency exists may be exported to any other country but export may be made to Belgium and the evacuated districts of France provided the country which the deficiency is owing assents.
- 14.
- Subject to the domestic requirements of the Netherlands and consistently with the terms of the agreement the Royal Netherlands Government will place no restrictions upon and will continue to give all facilities for exports from the Netherlands to the Associated countries and Belgium and the evacuated districts of France.
- 15.
- This agreement shall come into force upon the execution thereof and shall continue for the period of 12 calendar months unless previously terminated by mutual agreement; such termination shall not apply to subsidiary agreements which shall be subject to their own termination clauses.
The ration list mentioned in the foregoing agreement is at present as per my No. 1857, Embassy’s 3679, November 12, but is subject to modification.
- (1)
- No reference is made in the foregoing to East Indian products as I so far am without the information announced as being sent in your 1586, Department’s 2684, November 7.1 Felt there was no need to include this subject in the agreement proper relying on the statement in the latter part of your 1560, Department’s 2654, November 6.1 I am told by the War Industries Board here that the supply of tin in the United States is assured to a degree that renders us to a considerable degree independent of Banca tin.
- (2)
- You will note that this agreement in article 4 states that the Associated Governments will facilitate importation; no mention, however, is made of the Associated Governments granting export licenses. I therefore suggest that a clause might be added to the general effect that export licenses for commodities to be exported from any of the Associated Governments to Holland shall be conditioned upon such terms regarding price, port delivery, as such Governments may desire to impose.
- (3)
- You will notice in the foregoing text very little mention is made of shipping; it was impossible to find out whether it would be advisable to continue the Dutch requisitioned ships in their existing service at their present rates. The British Ministry of Shipping do not seem very keen to have the situation which was created by the requisition continued for any great length of time. If you can tell me exactly what you want in connection with shipping, if for instance you should say that Dutch ships now in service of the Associated Governments should so continue for the duration of the Dutch agreement on charter terms to be agreed upon, boats to be run by the Dutch under the Dutch flag, I believe that a letter could be added to the above-mentioned agreement making it subject to a satisfactory shipping contract. In this connection I would point out that should you desire to continue the duties Dutch requisitioned tonnage in the present status without getting the Dutch to agree to it, the Dutch, I think, might claim that the right to seize and hold under the law of angary would expire when the military exigency disappears.
- (4)
- A secret letter in the sense of my 1831, Embassy’s 3553, November 8,1 will modify the terms of articles 11, prohibiting the export of animals.
- (5)
- Referring to my 1858, Embassy’s 3682, November 13,2 to which there was insufficient time to receive a reply from you it was suggested that such a clause as might be satisfactory to you could be added in a covering letter unless you prefer to have the clause inserted in the agreement itself.
- (6)
- As regards the question of the principle of exports to Germany which you objected to in your 1612, Department’s 2765, November 12, 6 p.m.,3 and especially your statement about Holland obtaining necessary supplies from Germany, it seems difficult to maintain the contention that the Associated Governments are in a position to meet all the requirements of Holland such as potash, coal, fish, and steel, considering the long haul and the proximity of these supplies to Holland if obtained from Germany. If supplied by the Associated Governments and if the Dutch were told that they must [Page 1570] not get any of these necessities from Germany and were required, for instance, to obtain coal from the United States, these demands on the tonnage now at Holland’s disposal would be such that they would greatly reduce the amount of fertilizers and feeding stuffs to be imported into Holland with a view to increasing the production of food to satisfy the wants in the countries contiguous to Holland. Even if the war had continued and the strictest blockade of Germany were necessary I think the conditions of this agreement covering exports to Germany would be satisfactory. I have tried my best to keep you posted in negotiations and to follow in every particular your wishes; you realize, however, what a difficult task it is to know what your wishes are on particular points and to acquaint you with the temper of the negotiations as they proceed.