848A.5151/2–1149: Telegram
The Ambassador in the Union of South Africa (Winship) to the Secretary of State
11. Accompanied by Dickerson,1 I saw Holloway and Steyn2 this morning and they provided orally substance of reply I shall receive from External Affairs within next 2 or 3 days to repeated representations made in accordance Deptel 2, January 4:3
As from April 1 (end of current quota quarter) all shipping charges will be deducted from import quotas regardless currency in which paid, with exception that vessels of South African registry shall be exempted from this provision (now approximately 3 South African Marine and 2 Union Castle). Additionally South African Marine’s charter position will be permitted to continue to degree necessary maintain fortnightly sailings to United States. No South African or other excepted line will be permitted increase sailings to United States above schedule currently prevailing and no such line will be allowed enter this trade. In other words, it is intended maintain status quo but not increase advantage of excepted lines, and evidence that line has been plying United States–South Africa must be provided by anyone endeavoring profit from exception mentioned. No further chartering and no switching of routes from sterling to nonsterling areas to take advantage thereof will be permitted.
Officials mentioned emphasized right of South Africa accord flag protection its vessels and, after I had indicated dissatisfaction with [Page 1803] foregoing, they stated confidentially (which will not appear in formal note under preparation) that as matter of internal policy, Ministers concerned had decided exception referred to would only apply until about June 1, or at latest June 30, after which all lines of whatever flag would receive parity treatment as above without exemption in favor vessels of South African registry. South African Marine and Union Castle are being notified of this now.
Public announcement in sense of paragraph 2 this telegram may be expected early next week and it should not be released in United States in any circumstances before appearing here as this would cause great and obvious embarrassment South African Government.
Paragraph 3 remains highly confidential and Farrell and Lewis4 have been so informed. They have also been informed of entire message and express view South African authorities could go no further at this time. To ensure no leaks they are refraining from even cabling New York until public announcement made here.
Text of note mentioned will be forwarded when received.