800.85/889

The Secretary of State to the British Ambassador (Halifax)

Excellency: I have the honor to transmit herewith two counterparts of “Memorandum of Principles to be proposed jointly and forthwith by U.S. Government and United Kingdom Government to [Page 652] the Governments of the Maritime Nations having reference to the continuance of coordinated control of Merchant Shipping”, dated May 31, 1944, to which the Government of the United States is prepared to agree. As you know, this Memorandum was drafted as a result of discussions at Washington, D.C. between representatives of the War Shipping Administration of the United States of America, and representatives of the British Ministry of War Transport and the British Merchant Shipping Mission of the United Kingdom.

I am informed that your Excellency has been authorized by his Government in London to give approval to the proposed agreement which it is noted has been signed by the following officials of our two Governments:

  • E. S. Land
    • Administrator of the War Shipping Administration of the United States of America
  • H. T. Morse
    • Assistant to the Administrator, War Shipping Administration of the United States of America
  • John S. Maclay
    • Head of the British Merchant Shipping Mission in Washington, D.C.
  • W. G. Weston
    • Head of the Foreign Shipping Relations Division of the Ministry of War Transport in London and acting on behalf of the British Minister of War Transport

It will be understood by the Government of the United States that, on the receipt by the Department of State of a note from your Excellency expressing the concurrence of the Government of the United Kingdom in the agreement as set forth in the enclosures the agreement will be regarded as having become effective.

Accept [etc.]

Cordell Hull
[Enclosure 1]

Memorandum of Principles to be proposed jointly and forthwith by U.S. Government and United Kingdom Government to the Governments of the Maritime Nations having reference to the continuance of co-ordinated control of Merchant Shipping

1.
The Governments shall declare that they accept as a common responsibility the provision of shipping for all the military and other tasks necessary for, and arising out of, the completion of the war in Europe and the Far East and for the supplying of all the liberated areas as well as of the United Nations generally and territories under their authority.
2.
The Governments shall undertake to continue to maintain such powers of control over all ships registered in their territory or otherwise under their authority as will enable them effectively to direct each ship’s employment in accordance with the foregoing declaration. Subject to the provisions of paragraphs 3 and 9, this control shall continue to be exercised by each Government through the mechanism of requisitioning for use or title.
3.
The Governments shall agree not to release from control any ships under their authority or permit them to be employed in any non-essential services or for any non-essential cargo unless the total overall tonnage is in excess of the total overall requirements, and then only in accordance with a mutually acceptable formula which shall not discriminate against the commercial shipping interests of any nation and shall extend to all of the maritime nations of the United Nations an equitable opportunity for their respective tonnages to engage in commercial trades.
4.
Neutral Governments having ships under their control in excess of the tonnage required to carry on their essential imports requirements shall be invited to subscribe to obligations in respect of all their ships which shall ensure that their employment is in conformity with the general purposes of the United Nations.
5.
All the Governments of the United Nations and the Government subscribing hereto under paragraph #4 shall be invited to undertake to exercise control over the facilities for shipping available in their territories, under measures on the lines of the U.S. and British Ship Warrant Schemes, and to take such other measures as may be necessary to secure that ships under all flags are used in conformity with the purpose of the United Nations.
6.
Without prejudice to questions of disposition or title, the employment of such ships as may at any time be permitted to operate under enemy flag or authority shall be determined to serve the requirements of the United Nations.
7.
The Governments shall consult together for the purpose of agreeing on measures to give effect to the foregoing principles accepted by them. In preparing such measures they shall be guided by the following considerations:
(a)
In order that the allocation of all ships under United Nations control may continue to be effectively determined to meet the requirements of the United Nations a central authority will be needed, to come into operation upon the expiry of existing time chartering arrangements made by the U.S. Government and/or the U.K. Government with other United Nations Governments concerned. The central authority shall be organized on a basis satisfactory to the signatories to the agreement.
(b)
The central authority will determine the responsibilities that each Government must accept in conformity with the general obligations assumed in paragraph 1 to provide the tonnage required from time to time to meet current requirements for ships for the military and other purposes of the United Nations, and ships will be allocated for those purposes by the Governments in accordance with the decisions of the central authority. So far as is consistent with the efficient overall use of shipping as determined by the central authority for those purposes, and with the provisions of paragraph 7 (c), each Government may allocate ships under its own authority, wholly or partly to cover the essential import requirements of territories for which it has special shipping responsibilities.
(c)
In general, ships under a United Nations flag will be under the control of the Government of that flag, or the Government to which they have been chartered, but in order to meet the special case of military requirements those ships which have been taken up, under agreements made by the U.S. Government and/or the U.K. Government with the other Governments having authority for those ships, for use as troopships, hospital ships, and for other purposes in the service of the armed forces, shall remain on charter as at present to the War Shipping Administration and/or the Ministry of War Transport, as the case may be, under arrangements to be agreed between the Governments severally concerned. Any further ships required for such purposes shall be dealt with in a like manner.
(d)
Governments will supply to one another, through the central authority, all information necessary to the effective working of the arrangements, e.g., regarding programmes, employment, and projected programmes, subject to the requirement of military secrecy.
(e)
The central authority would also direct action under paragraphs 5 and 6.
(f)
The basis and terms of remuneration to be paid by the user of a ship for a particular shipping service would be determined by the central authority in such manner as to give effect to the following two basic principles:
(i)
Ships of all flags performing the same or similar services should charge the same freights;
(ii)
Ships must be employed as required without regard to financial considerations.
8.
The principles herein agreed shall apply to all types of merchant ships, irrespective of size, including passenger ships, tankers, and whale factories (but paragraph 7 (b) would not be applicable to ships engaged in coastal trades and short trades between nearby countries, the arrangements for control of which should be appropriate to meet the requirements prevailing in each particular area.)
The principles shall also be applied, through suitable machinery, to fishing vessels, whale catchers, and other similar craft to the extent necessary in those areas where it is agreed that special measures in respect of such craft are required so as to provide an authority capable of apportioning such craft available in those areas between naval and commercial services.
9.
The foregoing principles shall take effect on the coming into operation of the central authority, and shall remain in effect for a period not extending beyond six months after termination of hostilities in Europe or the Far East, whichever may be the later, unless it is unanimously agreed among the Governments represented on the duly authorized body of the central authority that any or all of the agreed principles may be terminated or modified earlier.

In discussion of the matter with the French Committee of National Liberation, suitable adjustment will be required in the references to Government.

  • E. S. Land
  • H. T. Morse
  • John S. Maclay
  • W. G. Weston
[Enclosure 2]

Supplement to “Memorandum of Principles to be proposed jointly and forthwith by U.S. Government and United Kingdom Government to the Governments of the Maritime Nations having reference to the continuance of co-ordinated control of Merchant Shipping” of May 31, 1944

The following paragraphs record the understanding reached between the United States and United Kingdom Governments as to the organizations of the central authority proposed in paragraph 7 of the Memorandum of Principles, and its relation with existing agencies and the Combined Shipping Adjustment Boards:

1. Combined Shipping Adjustment Boards must remain Anglo-American, for co-ordination of Anglo-American policy and action. The new organization for securing the cooperation of other maritime powers should not disturb or affect the effective Anglo-U.S. cooperation established through the C.S.A.B.’s.

2. We must give the important shipping Allies a definite place in the proposed central authority but it is not contemplated that the organization of the central authority will start to function until the existing charter arrangements run out or are terminated prior to expiration by agreement; i.e., at or shortly after termination of European hostilities. However, it is important that a general agreement on principles and modus operandi be reached between the Governments concerned as promptly as possible.

3. The new central authority will not need, and should not be allowed to develop any elaborate organization of its own. It must work through established machinery and procedures of W.S.A. and M.W.T. and through their connections with Chiefs of Staff, Combined [Page 656] Boards, and other demanding agencies. The rough chart attached19 indicates the method of co-ordinating the new authority with Combined Shipping Adjustment Boards and U.S. and British shipping agencies.

4. The discussions with other Governments on the proposed principles will take place “under the auspices of C.S.A. Boards to establish suitable machinery for shipping control to meet the new circumstances when the existing time chartering agreements expire.”

5. The central authority would be constituted as follows:

(a) A Council representative of all participating Governments, meeting as often as might be necessary but having no executive function.

(b) An Executive Board will be established with Branches in Washington and London respectively, under W.S.A. and M.W.T. chairmanship respectively. Those Governments which can qualify for a special position in the central authority by reason of their large contribution of shipping normally engaged in international trade (i.e. U.S., U.K., Norway, Holland) should be represented on the Executive Board. The Executive Board will exercise through its Branches the executive functions of the central authority.

The division of day to day responsibility between the two Branches of the Board will be established as convenient from time to time, (on the basis now arranged between the Combined Shipping Adjustment Boards). So that the two Branches of the Executive Board may work in unison, meetings of the Board as a whole will be arranged at the instance of the two chairmen, as often as may be necessary, and at such place as may be convenient from time to time.

Each Government not represented on the Board may be represented by liaison officers (or Missions) who will be called into consultation by the Board or its Branches on matters affecting ships under the authority of that Government, or on matters affecting the supply of ships for the territory under the authority of that Government.

The Executive Board and its Branches will proceed by agreement among the members. There will be no voting.

The decisions of the Executive Board affecting the ships under the authority of any particular country would be reached with the consent of the Government of that country, acting through their representatives on the Board or through the accredited liaison officers or missions.

(c) Anglo-American policy on the Executive Board will be coordinated through the Combined Shipping Adjustment Boards, and the contacts between the two shipping administrations, and by meetings of the chairmen of the two Branches of the Board, as may be necessary.

(d) The Executive Board would carry out through its Branches the functions assigned to the central authority in paragraphs 7 and 9 of the “Memorandum of Principles.”

(e) There would be organisation at staff or secretarial level under each Branch of the Board to deal with planning and execution of such matters as programming and requirements; allocation of ships [Page 657] to employment; freight and chartering policy. These organisations would be staffed by officers of the WSA and MWT respectively who are engaged currently in handling the same matters in their respective administrations; and to them would be added appropriate representatives from the other Governments represented on the Executive Board.

  • E. S. Land
  • Granville Conway20
  • Richard M. Bissell, Jr.21
  • Dudley B. Donald22
  • Huntington T. Morse
  • John S. Maclay
  • W. G. Weston
  1. Not printed.
  2. Associate Deputy Administrator, War Shipping Administration.
  3. Director of Division of Ship Requirements, War Shipping Administration.
  4. Director of Division of Statistics and Research, War Shipping Administration.