811.114 Gt. Brit./39

The Secretary of State to the British Ambassador ( Geddes )

Excellency: I have the honor to acknowledge the receipt of your note No. 781, of October 13, 1922, relative to suggestions contained in my note of June 26, last, concerning cooperation between the British and American authorities with the object of restricting the smuggling of alcoholic liquor into the United States.

I have the honor to express appreciation for the action of Your Government in issuing instructions with a view to preventing the issuance of two sets of clearance papers to vessels clearing from British ports, and also in taking steps to stop fraudulent transfers of vessels from United States registry to British registry.

I am pleased to learn that instructions have been sent to the Registrar of Shipping at Nassau to the effect that, in transfer cases in which any possible doubt exists as to the bona fides of the parties to the transaction, the non-production of a Shipping Board certificate shall be taken as a ground of suspicion involving reference of the case to the Board of Trade in London for further directions, and that your Government has taken steps to ascertain whether any of the vessels referred to in my note of June 26, 1922, have obtained registry under the British flag by fraud, and that proceedings for the forfeiture of any vessels that are found to have obtained British registry by fraud may be instituted under the provisions of Section 51 of the Merchant Shipping Act, 1906. This Government is also pleased to receive the assurance of the British Government that, although it is unable to acquiesce in the proposed treaty for the extension of territorial waters, it is nevertheless most desirous of taking any steps within its power to prevent any infractions of the local law by persons engaged in liquor smuggling.

I shall be grateful if you will inform me of the result of the investigations which are being made with respect to the vessels mentioned in the list19a enclosed with my note of June 26th, and also furnish me the names of any vessels transferred from American to British registry, against which proceedings have been instituted under Section 51 of the Merchant Shipping Act, 1906, on the ground that the transfer of registry was obtained by fraud.

In order that your Government may have the benefit of any information in the possession of this Government respecting fraudulent transfers of registry and the issuance of two sets of clearance papers, I have requested the appropriate authorities of the United States to furnish me any information they may obtain with respect [Page 584] to these matters, and I shall be glad to transmit it to you for such use as may be deemed appropriate.

I may state in conclusion that I have no doubt that the cooperation of your Government in preventing by every means within its power any breaches of the law in the Bahamas or elsewhere in the British West Indies by persons engaged in illicit trade with the United States, will be of very great assistance to this Government in the enforcement of its laws.

Accept [etc.]

Charles E. Hughes
  1. Not printed.