862.85/935a: Telegram
The Secretary of State to the Commission to Negotiate Peace
3669. For Polk.
Referring to tanker and Imperator matters, conference was had on October 31 with Lindsay, Counsellor of the British Embassy. The memorandum contained in our 3532 October 22 was read. Lindsay did not seem inclined to question in any way the beneficial ownership of the United States in the tankers and he apparently recognized the force of the Leda case and the transfer of 26 additional tank steamers in 1914 and 1915 to the United States flag. He was willing to admit the force of the position of the United States that the long vested right of control of the operation of the ships could not be compensated by financial remuneration. He took the position that beneficial ownership did not however necessarily support the claim of the United States to use and management of the ships during the Armistice period. He appeared to be impressed with the force of the arguments in the memorandum on this point. It was brought out that the provisional allocation on the part of the Supreme Council would possibly have the effect of establishing a prima facie case on the part of the Allies for similar final distribution of the ships. He was ready to admit that the anxious attitude of the French and British themselves in regard to their conflicting [Page 562] claims to provisional allocation of the Imperator group even though such provisional allocation was made with the same proviso of being without prejudice to final decision; and that such attitude was proof that they considered a provisional allocation a strong precedent for any later and final decision by the same powers through the medium of the Reparation Commission.
The reasons why the United States hesitated to approve of decision of the matter by the Reparation Commission were frankly explained. The political difficulties were pointed out and also, fear of lack of time for obtaining effective American representation on the commission in time for adjudication of the matter; and finally the apprehension was mentioned that without the representation of the United States on the Commission it would be difficult and if not almost impossible for France and Great Britain to insure the functioning of the Reparation Commission as a judicial body independent of national political interests. Mr. Lindsay admitted the existence of such a danger and said that Great Britain herself realized and was fearful of the difficulty of independent judicial functioning of the commission and that he personally saw the necessity of American participation to insure general judicial action independent of political interests.
Mr. Lindsay was informed that the Italian Government stood for the principle that on proof of beneficial ownership the nation entitled should have an option to ask transfer to it of the specific property and that such principle was founded on the highest British legal precedent.
Mr. Lindsay brought up the question of the Imperator group and asked what we had been able to do with the Shipping Board. He was told that we had received a promise from the Shipping Board with reference to the transfer of the Imperator and had sent it to you and that both you and ourselves were very reluctant to send it to the British on account of the coupling therein of the tanker and Imperator situations. He stated he understood our reluctance but would like to hear the proposal. It was read to him. He asked whether the Imperator would be handed over to the powers entitled if the tankers were transferred to the United States for use and management. He was told that we had not proceeded to make the proposition more definite on account of our reluctance to transmit the proposal but that if the British Government wished, we thought we would be able to cause the Shipping Board to agree to hand over the Imperator on the conditions stated provided the tankers were allowed for use and management to the United States pending the decision of the Reparation Commission.
It was then stated merely as an incidental matter that there was some ground for the Shipping Board coupling the Imperator and [Page 563] tanker matters in the light of the apparent agreement between Great Britain and France that France should be allowed the majority of the tankers provided she would withdraw some of her claims to ships of the Imperator group. Our knowledge of such agreement made a great impression on Lindsay and he made no denial of the agreement though protesting he knew very little of its details. After mention of the agreement he made no more protest about the coupling of the two matters.
Lindsay further stated that the use of the Imperator group of ships for repatriation of the Czecho-Slovaks was one for the A.M.T.E.
I hope that I will be able in the near future to take up with the President the Imperator matter and receive from him unconditional directions to transfer the Imperator group to the powers entitled on completion of repatriation needs. In the meantime we think the A.M.T.E. should pass on the question of the use of the Imperator group of ships exclusive of the Imperator herself for repatriating the Czecho-Slovaks. The Shipping Board makes a further proposal that these ships of the Imperator group be used for temporary replacement for other ships now in commercial service which would be more suited for these repatriation purposes. As the A.M.T.E. was once notified that the Imperator group was not further needed for repatriation purposes, it would seem that information of these further needs should be submitted to them. If you approve, please take this up with the A.M.T.E.