195/461a

The Secretary of State to Consular Officers

No. 865
General Instruction
Consular

Gentlemen: The activities in shipbuilding in the United States during the war period wrought marked changes in the position and outlook of the United States with respect to its merchant marine. The great increase in the number of American owned and operated ships has not only provided the United States with adequate tonnage for the transport of a large volume of its overseas trade but also with a merchant fleet large enough to compete as an international carrier with the maritime countries of the world.

The policy of the United States to encourage the formation of companies for the operation of steamship lines, to stimulate the opening up of trade routes, and to prepare the way for American [Page 402] ships to compete on terms of equality with those of other countries is set forth in the Merchant Marine Act, 1920, as follows:46

“Be it enacted by the Senate and House of Representatives of the United States in Congress assembled, that it is necessary for the national defense and for the proper growth of its foreign and domestic commerce that the United States shall have a merchant marine of the best equipped and most suitable types of vessels sufficient to carry the greater portion of its commerce and serve as a naval or military auxiliary in time of war or national emergency, ultimately to be owned and operated privately by citizens of the United States; and it is hereby declared to be the policy of the United States to do whatever may be necessary to develop and encourage the maintenance of such a merchant marine.”

The declared policy of the United States with respect to its merchant marine presents to the consular service an exceptional opportunity to assist in the building up of American shipping interests. With its representatives at all important ports the consular service is peculiarly equipped to render the American merchant marine direct assistance, similar in many respects to that which it now offers to the American manufacturer and exporter, by collecting information which will enable American ship owners and operators to meet those conditions in all parts of the world which affect the future of the cargo and passenger carriers of the United States.

If American business men are promptly and accurately informed concerning the volume of international freight and passenger traffic, the extent to which such traffic is subject to seasonal fluctuations and the effect thereof on freight rates, the division of the trade between American and foreign shipping, and the competitive conditions under which the trade is conducted; and if they are also informed of the cost of fuel at foreign ports, port facilities for handling cargo, repair and dry-dock facilities, and the overhead charges connected with in and out of port movement such as port, light, pilotage, and similar charges or dues, existing American steamship lines will be placed in a better position for development and profitable operation, and more consideration will unquestionably be given to the establishment of new American ship operating companies.

The Department expects consular officers to make a close study of the subjects covered by the foregoing paragraph in so far as they relate to their respective districts. While definite reports are to be submitted on these subjects, reports on other related matter should be submitted from time to time as material therefor may become available.

Supervising Consuls General will in so far as it is practical assist officers under their supervisory control in the preparation of shipping reports and instruct officers at inland consulates to report on the [Page 403] relationships existing between railway and navigation companies, special rates, if any, on exports or imports covered by through bills of lading, or other matters affecting the movement of overseas merchandise to or from the interior. Copies of these reports from inland consulates will be transmitted to the officers in charge of the seaport offices or at the distributing centers through which the foreign trade of each district passes.

Several requests have been received by the Department from consular officers for information as to the propriety of displaying advertising matter of American steamship lines in consulates. The Department has no objection to the display on the walls of consular offices of attractively framed pictures or photographs of American steam or sailing vessels. Colored posters, however, and similar advertising matter should not be so displayed as these deface the walls of the office. Applicants for consular services such as certifying invoices, acknowledgments, authentications, and passport visas, unless they enquire specifically for the information, should not be approached on the subject of the facilities of American passenger vessels. Space should be provided in the commercial files of the consulate for pamphlets, folders and cards giving information relating to the facilities offered by American vessels, and consular officers Should make this information readily available to interested inquirers in the same manner as is done with catalogues and advertising matter of American exporters. In this, as well as other respects, privately operated American vessels should be given the same consideration as that given to merchant ships owned and/or operated by the United States Government.

The Department believes the interests of the American merchant marine will be greatly promoted if consular officers carry out the instructions herein contained and confine their activities in behalf of steamship companies to investigating and reporting upon shipping matters and answering satisfactorily any proper inquiry relating thereto which may be received. The attention of the service is invited to the fact that in complying with proper requests for commercial or shipping information the confidential nature of the information contained in consular invoices and other records, as set forth in existing instructions, must be respected.

I am [etc.]

Charles E. Hughes
  1. 41 Stat. 988.