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  4. Document 709

656D.006/3–2147

Memorandum of Telephone Conversation, by the Acting Chief of the Division of Northern European Affairs (Morgan)

[Washington,] March 21, 1947.

Counselor Benton telephoned from The Hague the following oral reply by Mr. Vredenburch to the representations made by him at the Department’s instruction last night:

(1)
NEI Government prepared to provide Martin Behrman with another and similar cargo so that Isbrandtsen Line will not be deprived freight. Give full compensation for costs resulting from voyage Cheribon to Tandjong Priok and costs resulting from unloading. This compensation procedure can be settled by eventual arbitration.
(2)
However, the NEI Government can only give these compensations if the Isbrandtsen Line is prepared to declare that they will not take any measures against this cargo in the US. (This means that the owners of this cargo will be free to sell such cargo in the US.) If Isbrandtsen is not prepared to do this, Martin Behrman can only be given cargo for European ports.
(3)
It will be seen that case of Martin Behrman does not constitute impediment to shipments for the US in as much as the NEI Government is willing to ship on her a cargo the same as the one that the Martin Behrman carried. Nine hundred tons of rubber are all ready for shipment.
(4)
Measures will be taken in cooperation between NEI and Indonesian officials to expedite export trade as soon as Linggadjati Agreement has been signed. Serious consequences would result if the Martin Behrman is allowed to ship its original cargo to US. One hundred and fifty Chinese smugglers from Singapore are ready to proceed to NEI port with view forwarding goods from Indies far below market prices. Detrimental consequences NEI economy would result.
(5)
If Martin Behrman allowed to ship the original cargo, Chinese boycott would automatically result in Singapore and the danger that this boycott would spread to other harbors from which goods are being exported to the NEI, in which case serious famine in the NEI would result.

John H. Morgan