740.00112 Navicert/186

Memorandum of Conversation, by the Assistant Chief of the Division of European Affairs (Hickerson)

Mr. Helm came in to see me at 12:00 noon today to discuss a number of miscellaneous matters. While he was here I read to him our telegram no. 3300 of October 29, 5 p.m., to the Embassy at London in regard to shipments from the United States to Finland via Petsamo.

After listening to this telegram Mr. Helm said that he had a number of comments to make, which he made in the following sense:

(1)
Some days ago Mr. Helm had mentioned to me in strict confidence the fact that the British Government would probably stop all shipments to Finland and Sweden via Petsamo in retaliation against the control of outgoing shipments from Petsamo by Germany. He said that he could now tell me that, for the present at least, the British Government proposes to take no such action, and that navicerts will continue to be issued for shipments destined to those countries through Petsamo. I told Mr. Helm that I was very glad indeed to learn this because of the fact that the more I thought about what he had said to me the more I became convinced that the action which they had had in mind taking was unwise, even from the British point of view, from the long term aspect. I continued that I frankly did not [Page 59] see that the British Government had any sort of right to stop shipments of necessary foodstuffs to neutral countries like Finland and Sweden provided that adequate guaranties had been given that the goods would not be transshipped from the country or replace domestic exports which had been sent to Germany or German controlled territory. I added that several of my colleagues also felt strongly on the subject, and that since his Government had decided not to take the action it was not necessary for me to comment further.
(2)
Mr. Helm stated that as regards petroleum products to maintain communications between Petsamo and the railhead in Finland he could assure me that every ship traveling from the United States to Petsamo was permitted by the British Ministry of Economic Warfare to carry enough gasoline and lubricating oil to transport the entire cargo of the ship to the railhead and to return the transporting trucks to Petsamo. He said that therefore there should be no question of any lack of gasoline or lubricating oil to maintain transportation facilities for goods moving between the United States and Petsamo.
(3)
As regards fats, he said that a quota had been established for Finland, which was at the moment filled. He said that when the Red Cross approached the British Embassy concerning shipments of certain foodstuffs to Finland by that Organization, including lard, the British Government took the position that the Red Cross shipments had to be deducted from the quota. I asked the size of the quota, and he said that he did not know, but this was a matter which had been discussed in some detail between the Finnish Government and the British Government in London.
(4)
Mr. Helm said that the Red Cross had also asked for a navicert for a consignment of raw cotton to go to Finland, and that this had, on instructions from London, been refused; he added that the Red Cross had been informed that while they could not approve the shipment of raw cotton they were prepared to consider a navicert for manufactured cotton goods.
(5)
As regards cereals, Mr. Helm said that navicerts had been issued for a cargo of miscellaneous cereals destined to Petsamo for distribution by the Red Cross, and that the vessel was now being loaded in Baltimore.

J[ohn] D. H[ickerson]