588.C1/8
The Ambassador in Great Britain (Bingham) to the Secretary of State
[Received August 31.]
Sir: I have the honor to refer to the Department’s instruction No. 396 of May 23, 1934, with reference to a “Suggested Shipping Conference”, to the Embassy’s despatch No. 771 of June 14, 1934,65 and to [Page 728] despatch No. 836 of July 18, 1934, forwarding a note and memorandum from the Foreign Office on the shipping situation.
The press has for the past week carried statements to the effect that an international shipping conference is contemplated, to be held in London early in October. In reply to inquiries made of the Foreign Office, the information was obtained that this proposed conference, while having the approval of the Government, is not a Government undertaking, and that no invitations are being extended by the Government. It appears that the conference is to be one of representatives of international shipping interests. According to the Foreign Office, an invitation to attend has been sent by the British organizers of the conference to the American Steamship Association, although no reply has yet been received.
The press reports that the suggestions which are being put forward for this conference are in full accord with the proposals of the British Government, as outlined by the President of the Board of Trade in the House of Commons on July 3. This statement appears in full in the Foreign Office memorandum forwarded with despatch No. 836 of July 18, above referred to. Mr. Runciman at that time indicated the readiness of the Government to grant a subsidy for one year of not more than two million pounds for defensive purposes and for the assistance of vessels carrying tramp cargoes. The willingness of the Government to grant this subsidy was stated to be dependent on the fulfilment of certain conditions, one of which was that there should be a real measure of organisation of tramp shipping. Another condition was that British ship owners, through international organisations and in other ways open to them, should press on ship owners in other maritime countries the framing of proposals tending to adjust the supply of tonnage in the world to the demand, thus helping to raise freight rates once more to a profitable level. On the same occasion Mr. Runciman indicated that the Government intended to communicate with foreign countries to ascertain their views on the possibility of international measures to facilitate the abolition or reduction of subsidies, and the formulating of schemes for laying up or scrapping superfluous tonnage, or for undertaking both measures. The view of the Government was, however, that the task of preparing the ground for, and of formulating such schemes must in the first instance fall on the ship owners of the chief maritime countries. It is this task, apparently, which British ship owners are now attempting, and the forthcoming conference will undoubtedly be watched with close and sympathetic interest by the British Government.
Respectfully yours,
Counselor of Embassy
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