362.115 St 21/320a: Telegram
The Secretary of State to the Commission to Negotiate Peace
3360. The British Ambassador has presented a note to the Department in reference to the detention of the Imperator and other German vessels and an important conference has been held with him and Lindsay of the Embassy in regard to the matter of the Imperator and that of the German tankers and their mutual relation.
In reference to the Imperator and other German ships, British note states in substance that an attempt had been made by the French Government to obtain use of these vessels from the United States and that the question of decision was referred to the A.M.T.E. which body had decided for the British. The French had objected to decision except as regards the Imperator and the matter had been brought up through the Supreme Economic Council to the Supreme Council where it was now pending. Also that the United States London representatives of the Shipping Board had stated that on [Page 551] August 12 instructions had been received by them to notify the A.M.T.E. that the United States would relinquish the management of enemy passenger vessels ship by ship as released from repatriation service and inquired as to whom they should be turned over in New York. The note stated that answer had been made to the Shipping Board as to whom the Imperator should be handed over and that arrangements to take her over had since proceeded and British crews sent for this purpose. They state the present action of the Shipping Board is therefore quite inexplicable unless it may be assumed that it is due to friction with regard to the tankers.
As regards the tankers their contention is to the effect that although Great Britain is only interested to a comparatively small extent in the management of the tankers the action taken by the United States by holding Imperator falls entirely on Great Britain and that the position in which the British Government is placed, having sent over to the United States hundreds of British seamen to take over the Imperator and other German ships is one of serious difficulty. They also pointed out that a settlement of the tanker controversy had been affirmed by the American Mission in Paris.
In reply it was pointed out orally that the matter of the detention of the Imperator was being investigated and that the State Department was as yet unable to make a statement in this regard except that it was understood on the information received that certain necessary repair and refitment had to be made and that a strike now going on in New York made it impossible to complete the refitment at the present time which was a necessary condition to the receipt of the German ships by the British Shipping Ministry. The British pointed out their embarrassment and great difficulty with respect to handling the crews sent over for return of these ships. The State Department immediately made arrangements to have these men accommodated on Ellis Island. As yet have not heard whether the crews have been moved there or not. British emphasized the fact that they feel it unfair that on account of confusion as regards the tankers that retaliation should be made to fall wholly on them when the matter of tankers was one in which they were little interested and only one of five powers benefited. In answer it was pointed out that as yet no position had been taken by the United States Government to use the retention of the Imperator as a means of retaliation for action taken in the tanker matter. It was pointed out, however, that there was strong feeling in many of the Departments of the Government that the United States had been badly used in regard to the tankers; that the confusion and difficulty had arisen on account of the arbitrary action and obstructive tactics of the British President of the N[aval] A[rmistice] C[ommission]; and [Page 552] that Mr. Polk’s agreement in Paris to the allocation of the A.M.T.E. was predicated on a report of Sir Eyre Crowe which from our understanding of the facts we felt to be misleading.
Reports were read to Mr. Lindsay of the British Embassy giving full details of the arbitrary and obstructive policy of the British N.A.C. and Admiralty officials and it was suggested that if Great Britain would support the American view of the matter the disposition of the tankers could be quickly settled. The strength of public opinion in the matter was pointed out and it was brought to the notice of Viscount Grey that under the Lloyd George Agreement there was at least a theoretical connection between these two questions, in that first the provisional allocation of the Imperator and other German pooled ships to Great Britain on the basis of ton-for-ton replacement of loss, and second the assignment of the German tankers to the United States or her nationals for use and management either by way of provisional allocation or exemption by the Brussels Agreement were both (first and second) equally a pre-execution during the Armistice period of the provisions of the Lloyd George agreement. And that the United States had relied on the understanding that these tankers would be under the operation and control of United States citizens during the armistice period when she had urged the Reparations Commission to instruct the A.M.T.E. that on satisfaction of the repatriation needs, the allocation of the German pooled vessels should be made provisionally on the ton for ton replacement basis under the policy outlined in the Wilson–Lloyd George Agreement. Both Viscount Grey and Mr. Lindsay of the Embassy admitted the similarity of the cases in this regard and the strength of the argument and intimated that they would telegraph at once to the British Foreign Office showing our understanding of the situation and pointing out our feeling concerning the theoretical connection of these two cases.
We urge that this is the time to press strongly for the settlement of the tanker situation as described in our 3322 of October 2, 1919,47 and we think that if sufficient pressure is brought by you on the British that possibly they may, on their own initiative, take the matter up with Mr. Clemenceau who agreed to the Wilson-Lloyd George agreement in so far as it related to the rights of England, France and America.
It is considered important that you take steps to have tankers held in Hamburg until matter is again considered by the Supreme Council.
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