811.04418/637: Telegram
The Minister in the Union of South Africa (Keena) to the Secretary of State
[Received 6:35 p.m.]
21. I have the honor to report the views expressed to me yesterday by General Smuts, the Prime Minister, in relation to the clause in the proposed neutrality legislation which would prohibit the carrying of all goods to belligerents in American ships.
The Prime Minister stated that he did not want to dwell on the very serious harm which would be done to South Africa if American vessels were debarred from carrying goods to and from this country but he wished to point out that American trade interests, in such an event, would be done a disservice entirely out of proportion to the problematical risk which would be run by American vessels on the South African route.
The Union of South Africa, he said, depended on the United States for yearly imports of goods valued at about 18,000,000 pounds and on receiving about 9,000,000 pounds worth of goods from Germany. The German percentage of imports into the Union would be America’s practically for the asking, if American ships are not withdrawn from this trade route; and, in addition, there would be a South African market for goods not now obtainable from Great Britain.
The Prime Minister reminded me that it was during the last war that American goods had established their very favorable trade position in the Union of South Africa, and that there was now the opportunity for an enlarged and better balanced trade between South [Page 677] Africa and the United States,—which the Government would welcome. If the legislation should prevent that opportunity being utilized it would be distinctly unfortunate for both countries.
The Prime Minister emphasized the fact that the goods which the Union would take from the United States both for its normal needs from that country and to fill the demand heretofore supplied by Germany, are ordinary trade goods and standard manufactured articles and not in any way war materials; consequently keeping this trade route open would be highly and directly beneficial in the disposal of the products of American farms and of America’s normal peacetime manufactures.
He also emphasized the growing rapprochement between South Africa and the other Dominions and the United States which at the present time particularly because of the disturbed conditions and uncertain future of Europe, he feels should be safeguarded and furthered politically, spiritually and economically in every way possible.