841.24/109
Memorandum of Conversation, by the Chief of the Division of European Affairs (Moffat)
Sir Owen Chalkley, Commercial Counselor of the British Embassy, and Mr. G. H. Pinsent, Financial Counselor of the British Embassy, called this afternoon by appointment on Mr. Green, Chief of the Division of Controls, and Mr. Moffat, Chief of the Division of European Affairs.
Sir Owen Chalkley referred to the recent visit of Lord Riverdale, who came to the United States early in August to examine the practicabilities of setting up a purchasing agency ad hoc in the United States, in the event that Great Britain became involved in war, rather than making use of J. P. Morgan and Company, as was done in the Great War.
Lord Riverdale had had a series of satisfactory conversations with the Departments of State, War, Navy, Treasury, et cetera.
A week or so ago the British Ambassador36 had called on Assistant Secretary of War Johnson to formally convey to him the thanks of the British Government for the assistance he had rendered. The Ambassador further told the Assistant Secretary of War that a British purchasing mission was now en route to Canada, and that some or all of its members would soon be coming to the United States to set up an office. The Ambassador had told Colonel Johnson that they did not wish anything resembling the Amtorg. Colonel Johnson had reported this to the President, who had sent back word that he agreed, and made a counter suggestion that an office somewhat along the lines of that of the Australian Trade Commissioner might satisfy all concerned.
The purpose of the call of Sir Owen Chalkley and Mr. Pinsent was to inquire whether the Department of State saw any objection to their proceeding along these lines. The title would probably be that of “United Kingdom Purchasing Commission”, although this had not been finally worked out.
[Page 565]They then asked Mr. Green what were the necessary formalities with regard to registration. Mr. Green replied that it would be necessary for them to comply with the provisions of Part II of the regulations recently issued by the Secretary in regard to the registration of agents of foreign principals and the notification of agents of foreign governments.37 He pointed out that compliance with these provisions implied merely a notification of the names, addresses, and function of any agents of foreign governments, whether aliens or citizens, functioning within our jurisdiction.
The next point raised by Sir Owen Chalkley and Mr. Pinsent was that of setting up in New York an office of the British Ministry of Shipping (Sir Ashley Sparks will undoubtedly be the Comptroller). With the formation of this new Ministry the control of all British merchant shipping will be taken away from its owners and vested in the British Government. The idea is to set up in New York a British “Comptroller of Shipping” who would probably take over the local employees of the major British ship lines. His task would comprise the despatching and routing of all outgoing British ships, supervision of their cargoes, determining the priority of cargoes, et cetera. Sir Owen Chalkley and Mr. Pinsent inquired whether the creation of such an office was agreeable to the American Government. Mr. Moffat replied that he wished to consult the Legal Adviser, Mr. Berle38 and others before giving a final opinion. (Mr. Moffat, for instance, feels that the British should undertake in advance to assure us that the ships would still be regarded as private ships and would not claim any legal immunities by virtue of their being run by the British Government.)
The next question to arise was the form of registration of such an office if set up. In this respect Mr. Green stated that the requirements of law would be identical with those which he had just explained in respect to the office of a British Purchasing Commissioner.
One final question arose. Mr. Pinsent inquired whether ways and means might be explored with the Treasury whereby, on the basis of reciprocity, British civil servants or officers sent over from the United Kingdom might be exempt from the payment of income tax, social security taxes, et cetera. They would not seek such privileges for American employees. They stated that this was not a pressing question, but one which they would wish to bring up when the offices were established. Mr. Moffat said he would refer the matter to the competent officials in the hope that they might give the question at least preliminary examination.