362.115 St 21/84: Telegram

The Secretary of State to the Commission to Negotiate Peace

3779. Your 507960 and 5108 November 11, 11 a.m. In reference to the first mentioned telegram the difficulty seems to be as pointed out in your first paragraph that the representatives of the Allies have [Page 570] no recollection of conversations in regard to the operation of the tankers by the Germans.

The suggestion that the boats might be operated by the Germans was only one of the possible solutions, the others being that they should allow provisional operation by the Americans or that the ships be allowed to rest in port pending final decision. As it seems that there is political difficulty regarding operation of the ships by the Germans because of the protest which would be raised by the masters and sailors out of employment in Great Britain, it might be well to drop the request for German operation, stating it to be in recognition of the political difficulties involved.

In regard to Sir Eyre Crowe’s proposal mentioned in your 5108, namely, that the 9 tankers which the Standard Oil claims should be held idle pending the decision of the Reparation Commission, Standard Oil was requested by telegram to furnish their views on this proposition but no answer has yet been received from them. Comment from the Shipping Board was also requested. Payne requests that the following message be sent to you.

“In addition to the considerations heretofore called to your attention, the need of tankers here is very great. You are authorized to make an arrangement by which pending a final decision the Imperator group of ships be turned over for use by England and the tankers turned over for use by the United States, this without prejudice to the rights of either party. Meantime as soon as coal is available for shipment to France we will furnish a reasonable amount of tonnage for this purpose.”

The Department’s attitude is that it desires of course that the D.A.P.G. tankers be operated by Americans and from an economic point of view feels their idleness undesirable. However, if operation by Americans cannot be arranged for, the Department is prepared to agree with the Eyre Crowe proposal. Our position has been that we could not for reasons already given consent to the operation of these boats by the Allies and insisted that if any one should operate these ships during the armistice period they should be either operated by Americans or by the Germans for benefit of the American owners.

The reply of the Shipping Board quoted above is sent for your information for whatever use you think wise to make of it. If used it should be a communication from the Shipping Board for which the Department takes no responsibility. It is not consistent with our view of the case in that we believe the Shipping Board has no right to bargain with property which legally belongs at least provisionally to Great Britain. However, we are orally informed by the Shipping Board that both the British and French shipping commissions [Page 571] have intimated they would be willing to compromise on an arrangement such as stated by the Board.

The matter of the Imperator has been brought to the attention of the President and Davis has talked the matter over at length with Tumulty. The President was requested to authorize the Secretary or the Cabinet to require the immediate transfer of the Imperator group. We are expecting a reply at any moment.

For your information. From conversations with representatives of the Shipping Board it is apparent that the Imperator group of ships is becoming a serious financial burden to the Board and causing complications in regard to Naval crews and docking facilities. … it would seem that the Board for their own protection would be forced to hand over the Imperator group regardless of the decision of the President.

Your 5146 November 12, 11 p.m.61 The position you plan to take when the Imperator question is brought up before the Council would seem to be wise. Please cable us as soon as possible, if you can arrange that the ships remain in Hamburg pending further orders of the Council.

Lansing
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