Papers Relating to the Foreign Relations of the United States, 1926, Volume II

711.419/218

The Ambassador in Great Britain (Houghton) to the Secretary of State

London, July 31, 1926.
[Received August 13.]

No. 1245

Sir: I have the honor to refer to my despatch No. 1229 of July 27, 1926,⁸⁹ relating to the report of the discussions between British and American officials with regard to liquor smuggling, and to forward herewith the original text of the memorandum signed by General Andrews and Mr. Vansittart, of the Foreign Office.

I have [etc.]

For the Ambassador:

F. A. Sterling

Counselor of Embassy

[Enclosure]

Joint Report of Discussion Between British and American Officials With Regard to Liquor Smuggling

As vessels engaged in liquor smuggling frequently make use of the British flag and proceed from ports and places within British jurisdiction, questions have from time to time arisen between the Government of the United States and His Majesty’s Government with regard to this traffic, and it was decided that a meeting should take place in London between officials of the two governments to go fully into the matter. Meetings took place in London in July 1926, and the following officials took part in the discussion:—

• United States:
  • Brigadier-General L. C. Andrews, Assistant Secretary of the Treasury.
  • Rear-Admiral F. C. Billard, Commandant of the Coastguard, Treasury Department.
  • Mr. W. R. Vallance, Assistant to the Solicitor, Department of State.
  • Mr. Anslinger.^89a
  • Mr. A. W. Henderson, Special Assistant to the Attorney-General, Department of Justice.
  • Mr. H. Keith Weeks, Treasury Department.

Great Britain:

Foreign Office:	Mr. R. G. Vansittart, C. M. G., M. V. O.
	Mr. R. I. Campbell.
Admiralty:	Captain H. P. Douglas, C. M. G., R. N., (Hydrographer of the Navy).
	Mr. W. H. Hancock.
Board of Trade:	Sir Charles Hipwood, K. B. E., C. B.
	Mr. N. A. Guttery.
	Mr. W. J. Wragge.
Colonial Office:	Mr. L. B. Freeston.
	Mr. A. C. M. Burns (Colonial Secretary of the Bahamas).
Board of Customs:	Mr. C. J. T. B. Grylls, C. B. E.
	Mr. E. S. Bertenshaw.

As the discussion was one between officials, no question of policy or politics could arise, nor was any past practice or incident called in question save with a view to avoiding future difficulties. The first object of those present was to ascertain all the facts so that both sides could understand clearly and fully exactly what was taking place. It was felt that if this were done with goodwill and in a scientific spirit it should be possible to devise means for meeting the difficulties that had been encountered in the respective countries in administering the law. The discussion was, therefore, of a very frank nature, every fact or difficulty in the minds of either side being brought forward and discussed without reserve.

The information in the possession of each side supplemented that possessed by the other, and attention was concentrated on the infringements of the law that have been, and are being, committed by the persons engaged in this traffic. In many cases the vessels have been placed on the British register illegally, and in certain cases where they use ports or places within British colonies there appears to be a failure to comply with definite provisions of the law relating to clearances, quarantine and other matters. The object of the officials was to secure that these infractions of the law shall be dealt with and shall cease. There is no question whatever of interfering in any way with legitimate trade, which should have no difficulty in distinguishing itself from the illicit traffic.

If the information possessed by both sides is pooled, and a close working liaison is established between the officers engaged in dealing with the traffic, so that each side knows what the other is doing and can render any proper and requisite assistance to the other, and if any additional force that may be necessary to secure the strict observance of the law is supplied, it should be possible to reduce very materially the causes for complaint or misunderstanding.

With this object the officials have formulated the following suggestions for the consideration of the governments, but they consider that these suggestions should not be made public in any case until they have been adopted and have become effective.

Suggestions

1. Intelligence.

As complete a record as possible of the ships engaged in the illicit traffic of importing liquor into the United States and of the persons engaged in this traffic should be prepared at some convenient centre. To this centre the British and American officials concerned could communicate either direct or through such channels as might be most convenient, any facts which may become known to them in regard to these ships and persons. It would be convenient if this record were prepared and kept in Washington and it has been suggested that the Treasury Department would be the most suitable Department.

Copies of this record should be transmitted from time to time to all the officers directly or indirectly concerned, including the British Embassy at Washington, so that each officer may have, in as convenient a form as possible, the fullest information in regard to the suspect ships and the suspect persons.

2. Liaison.

Arrangements have already been made by the United States government and the government of Canada for cooperation as regards the suppression of smuggling operations.⁹⁰ It is desirable that a close working liaison should be established between the United States authorities and the proper officers in the Bahamas and any other British colonies which may be concerned. In the case of the Bahamas the officer concerned would be the Colonial Secretary, and the liaison should be established between this officer and the local American Consul. A similar liaison should be established in any other British colony in which this is necessary; and a liaison should also be established between the American and British Consular representatives at such ports as Hamburg, Antwerp and Havana. In every case the officers concerned should consult one another freely and inform one another at once of any matter of interest.

3. Special Liaison in London.

The United States Consul General in London should keep in touch with the Registrar General of Shipping and Seamen and other British government officers so that he may obtain on request on the usual terms:—

(a) Information as to whether a vessel flying the British flag has been given a provisional or permanent British Register.

(b) Information as to whether the name of a vessel flying the British flag has been changed lawfully.

(c) Information as to the names and addresses of the registered owner or owners and mortgagees of a vessel under the British flag, and if a company or corporation, the registered office of that company or corporation, as well as any information that can be given as to the shareholders.

(d) The Mercantile Navy List and monthly supplements.

(e) Certified copies of registers and of all documents relating thereto.

(f) Any information that can be given by reference to Lloyd’s publications or otherwise, as to the movements of suspect vessels or cargoes.

4. Prosecutions.

Wherever there appears to be sufficient evidence to justify prosecution, either by the British authorities for infringement of the British law, or by the United States authorities for an infringement of the United States law, proceedings should be instituted.

Arrangements should be made under which the United States authorities furnish to the British authorities any evidence they may have tending to show that any British vessel concerned in the traffic has infringed the British law in regard to registration, Customs clearances, quarantine etc., or any evidence tending to show that any person engaged on any such ship is using a forged or false certificate of competency etc. Similarly the British and American officials concerned should be instructed, upon request, to arrange for the attendance of witnesses and the production of such records, or certified copies thereof, as may be considered necessary in cases of prosecution, on the understanding that the cost of any transcripts of such records etc. and the expense involved in the attendance of witnesses be paid by the government responsible for the prosecution. In this connection, an attempt should at once be made to secure, if possible, the necessary evidence to enable proceedings to be instituted in the case of vessels known to be engaged in the traffic.

5. British Patrol Vessel.

The Colonial Secretary of the Bahamas stated that the provision of a suitable vessel would be of very material assistance in securing the strict observance of all the local laws relating to Customs, clearances, quarantine, etc. The provision of such a vessel should be considered.

6. United States Patrol Vessels.

With a view to enabling the United States authorities to secure evidence of the presence in the Bahamas of suspect United States vessels, it has already been agreed that while, so far as may be possible, a report will be made to the Government of the Bahamas whenever the United States Coastguard desire to send a patrol vessel to the Bahamas, such a vessel may, for a period of twelve months, enter British territorial waters in the Bahamas without the usual advance notice of visit, on the understanding that the vessel in question, will first call at Bimini and report to the Commissioner at that port. It was represented that if the United States patrol vessel were to be required to call first at Bimini on the occasion of each visit, the object of the visit would be defeated. It is therefore proposed that each vessel should, on the occasion of its first visit call on and report to the local commissioner, and that on each subsequent visit it will be sufficient if information of the intention to pay the visit should be telegraphed beforehand by the United States authorities to the American Consul at Nassau who would immediately notify the Colonial Secretary. It is understood that the United States Coastguard patrol vessels will limit their activities whilst in British territorial waters to observation and that these activities will not be extended to the waters of New Providence where satisfactory facilities for observation already exist.

7. Entry From the High Seas.

In the case of United Kingdom ports all vessels other than coasting vessels and fishing boats are required on arrival to make a statement as to the port or place from which they have arrived, and this requirement would not be fulfilled by an indefinite statement that they came “from the High Seas”.

It is understood that the local law of the Bahamas permits of the entry of vessels as “from the High Seas” but that the master of a vessel so entering sufficiently often as to cause suspicion and with such regularity as to show system, might be prosecuted under the law relating to false declarations. The Governor of the Bahamas should be requested to ensure that a prosecution should be instituted in any case where the evidence appeared to justify this course.

8. Diplomatic Support.

When any complaint in connection with liquor smuggling, or suspected liquor smuggling operations, is made to one side against the officers of the other, the present practice might be continued of examining the record of the complainant and any other information that may be available before deciding whether under the terms of the existing Liquor Convention or on other grounds the case is one in which enquiry or eventual representations should be made.

• Lincoln C. Andrews
• Robert Vansittart

[London,] July 27, 1926.

89. Not printed.
90. Harry J. Anslinger, American consul at Nassau.
90. See regulations agreed to by representatives of the United States and Canada embodied in Executive Order No. 4306, Sept. 19, 1925, Foreign Relations, 1925, vol. i, p. 573.