441.11 W 892/56

The Secretary of State to the British Ambassador (Howard)

My Dear Mr. Ambassador: I have received your letter of June 17, 1926, with further reference to the claims question. I have also received a telegram from Ambassador Houghton reporting a conversation which, at Sir Austen Chamberlain’s invitation, he had with him on June 16 in connection with the same matter. Mr. Houghton states that Sir Austen then informed him that he had decided to withdraw his objection to the proposed visit of Mr. Phenix to London and had cabled you that if the naval mission could accompany [Page 241] him, it would be agreeable if Mr. Phenix should come to London in September. Sir Austen added, however, that he would raise no objection if Mr. Phenix came without the naval mission or if I preferred to have him come in August, though he believed September would be more desirable. I gather from this telegram that I am not to understand from your letter that your Government’s agreement to the proposed examination in London of the records in which we are interested is conditioned on a favorable reconsideration by the Secretary of the Navy of his decision not to send a mission to London to discuss the claims between the Navy Department and the British Admiralty and other British Government departments. I quite agree, however, that it would be mutually advantageous if the suggested negotiations of the Navy Department could be carried on in London at the same time with the other work we have in mind, and I am approaching Secretary Wilbur again on the subject in the hope that he will find it possible to arrange for the dispatch of a suitable naval mission not later than September 1. I shall be glad to inform you promptly of the result of my efforts in this direction.

In the meantime I am instructing Mr. Phenix to complete as rapidly as possible the examination which he and Mr. Broderick have been making of the records here in Washington and to make his plans to be in London on September 1. I am very much pleased that Mr. Broderick will be instructed to join Mr. Phenix in London, to cooperate with him there in obtaining the data which I desire and to carry forward their informal discussions. Such an arrangement cannot fail to facilitate Mr. Phenix’s mission and to promote the ends for which we are striving, particularly in view of Mr. Broderick’s great familiarity with the circumstances out of which many of the cases arise.

I note your reference to the statements heretofore made on behalf of your Government to the effect that it could not consider what you designate as “blockade claims” and your further statement that Sir Austen Chamberlain’s assurances that he is prepared to cooperate with me in every way for the purpose of determining the status of the claims, arriving at a prima facie classification thereof, and reaching a satisfactory understanding for their settlement extend only to “non-blockade claims”. I do not feel that a discussion of these particular reservations at this time would assist us in finding the proper solution of the difficulties inherent in the general problem before the two Governments. Until we have agreed upon a definition of “blockade claims” and until I ascertain what claims (regardless of their character) are still unadjusted and appear worthy of this Government’s support, I believe that we should do no more than reserve our respective positions in general terms. In this way we shall be free to [Page 242] discuss concrete questions on their merits when the proper time comes. I am frank to say that for my part I regard our present agreement as purely procedural in nature and as binding neither Government to accept or reject the validity of any particular categories of claims.

I should be glad to have definite advice as to whether Mr. Broderick will be able to meet Mr. Phenix in London on September 1. As you know, I had hoped that the work in London might be carried on during the summer, and while I am quite prepared, in all the circumstances to agree to its postponement, I do not feel that its commencement should be set for a later date than the first of September. In this connection I might add that I am informed that the work of preparing summaries of the cases in the Department’s files is well over half completed and that all the cases will be summarized not later than August first and probably earlier.

In view of the agreement which we have now reached with respect to the procedure next to be followed in our informal examination of the claims question, it would appear that the misapprehension which previously existed as to the nature of my proposals has been entirely removed and I am proceeding in the matter with the confident expectation that the authorities in London will cooperate cordially in promoting the work which remains before us. I am informing Ambassador Houghton in this sense and am directing him to regard as canceled the instructions contained in the telegram, the substance of which I read to you on June 5th.

I am [etc.]

Frank B. Kellogg