Hopkins Papers

Prime Minister Churchill to the President’s Special Assistant (Hopkins)1

secret

I should be grateful if you would look at this. The statements marked by me in red would, if true, be catastrophic.2

There surely should be a joint Consultative Board so that your people can hear what we have to say before taking decisions on allocation.

Perhaps you will let me know what you advise.

W. C.

10/1/42.

[Attachment 1]

Sir Arthur Salter to Prime Minister Churchill

Copy

Prime Minister:

1. In a note of January 4th (summarizing at your request what I had said to you in conversation the previous day) I urged the great importance of an appropriate organization here, both American and Anglo-American, to decide upon the allocation of Merchant Shipping.

The difficulties of allocations are now very great because, with the new demands, there is much less tonnage than is required for urgent work.

Till recently the Maritime Commission has controlled the disposition of U.S. shipping and we have been able to secure assistance for British needs by negotiation with them. This method has worked well till recently but does so no longer. The Navy and Army are taking U. S. ships directly, (without requiring the assent of the Maritime Commission) from existing services. The new American “Strategic Shipping Board” is not at present equipped with the necessary [Page 354] information and staff to enable it to decide upon the relative importance of the services from which the ships are withdrawn and those to which they are diverted. This is true even when the existing services are American; it is still more true when they are British.

2. Events of the last few days have illustrated the urgent need of an improved system.

The main shipping assistance (apart from tankers) which we have received this year from the U.S.A. has been in the conveyance of our munitions from the U.S.A. to the Bed Sea. 15 ships a month, or a total of some 100 ships in constant employment, have been allocated to this service. This assistance has been indispensable for our Middle East supplies, and has also helped the U.K. import position by enabling British ships that would otherwise have had to be sent to the Bed Sea to be kept in the N. Atlantic.

For this month, however, as a result of the pressure of the new demands, the Maritime Commission were only able to allot 10 ships, and of these 4 have been suddenly, without notice of consultation, taken away for Army needs.

Some British ships are being diverted to the Bed Sea from the N. Atlantic imports service. But our U.K. importing service is itself now in a very serious condition. The Ministry of War Transport estimate that the January-February loadings for U.K. in all areas (excluding oil) will only amount to 3.85 mil. tons and that means a rate of import of only 23 mil. tons even without allowance for losses. This figure compares with the 33 mil. tons you instructed me to press for only a few weeks ago.

3. May I suggest that, before you go, you should try to obtain decisions

(a)
To equip the Strategic Shipping Board, or whatever may take its place, with a suitable organization to enable it to allocate shipping in relation to the relative importance of the different services.
(b)
To associate my Merchant Shipping Mission with this authority so that decisions affecting British services or shipping may be taken after joint consultation.
(c)
As an interim measure that the allocation of U.S. tonnage to the Bed Sea, on the scale adopted in the last six months, should continue and enjoy a priority equal to the highest.

I should, of course, be glad to supplement this note by an oral explanation if you are able to give me the opportunity.

I enclose, for convenience of reference, a copy of my note of January 4th.

Arthur Salter
[Page 355]
[Attachment 2]

Sir Arthur Salter to Prime Minister Churchill

Copy

Prime Minister:

I submit the note you asked for yesterday.

Merchant Shipping—Arrangements for Allocation

1. The strain on shipping, at least in 1942 and perhaps in 1943, will be much greater than any yet experienced.

The total transporting capacity available to the U.K. and the U.S.A. cannot be greater for the year 1942 as a whole than it has been in 1941. We have extra demands in respect of (a) the Russian needs; (b) the Pacific situation; (c) the transport of U.S. troops. The decision to increase the U.S. programme taken two days ago in all that is practicable as regards building.

The real problem now is one of allocation.

2. The U. S. Government has just created a new “Strategic Shipping Board”, consisting of the Chairman of the Maritime Commission, General Marshall, Admiral Stark and Mr. Hopkins with alternates.

This Board will need a “ship planning” organization to prepare the issues for decision; and will then decide on broad lines the use of American shipping, while similar decisions are taken in London as to the use of British controlled tonnage, including the time-chartered Allies and neutrals.

It is extremely important since British services and imports depend to an important extent upon U.S. assistance, that the American Board should take its decisions after full consideration of the British position.

The best arrangement would be that, in addition to meeting as a purely American Board, with executive authority, to decide on the use of American ships, this Shipping Board should also meet as a Joint Consultative Board, myself as Head of the British Shipping Mission being added at such meetings; and that members of my Mission should collaborate with the American officials in preparing the plans and statements of fact, for consideration of the Board.

Such an arrangement would be consistent with what is proposed for the allocation of supplies. Mr. Hopkins would, I think from a recent conversation, be in favor of it. Lord Beaverbrook strongly supports it.

An early decision to this effect would be of great value.

I should, of course, be glad to elaborate this brief note orally if opportunity offers.

Arthur Salter

  1. The source text, marked “Copy”, bears Churchill’s typewritten initials.
  2. The statements and figures marked in red by Churchill on the attached memorandum (final paragraph of section 2) are indicated by underscoring.