[Enclosure] The British Secretary of State for Foreign Affairs (Grey) to the American Ambassador (Page) FOREIGN OFFICE, YOUR EXCELLENCY: I have had under careful consideration your excellency's note of August 31 enclosing a copy of a telegram from the State Department on the subject of neutral cargo on enemy vessels which have been captured by His Majesty's forces. In reply I have the honour to inform your excellency that His Majesty's Government, who are bound by Article 3 of the Declaration of Paris, have no intention of claiming the condemnation of neutral goods, not being contraband of war, on a captured enemy vessel, and they are as anxious as the Government of the United States that such cargo should be restored to the rightful owners with the least possible delay. Your excellency will realize that when such cargoes have, in consquence of the capture of the ship, come into the custody of the prize court, it is impossible for them to be released except by the court. This does not, however, necessitate the owners involving themselves in lengthy prize court proceedings. In cases where the proper evidence of title can be produced to the procurator general, as indicated in my note of August 26, the goods are released at once, subject to the adjustment of any questions of freight. His Majesty's Government realize, however, that in many cases it is not possible at the moment to produce full evidence of title, and they have now made arrangements under which such cargo can be released at once, provided that the claimants can produce some reasonable evidence of title, even though it may not be possible to produce evidence of such a strict and complete nature as would be required by the prize court. Thus the only case left unprovided for is that in which the claimants can produce no evidence of title at all. Your excellency will, I am sure understand, that in this case it is impossible for the goods to be released at once without some guarantee that the claimant is really entitled to them; but if the claimant or his representative is prepared to file a bail bond in accordance with the prize court rules, the goods can be released, and the title can thereafter be proved in the usual way. I would also remind your excellency that an interested party may enter an appearance by leave of the court at any time before final adjudication. I trust therefore that the Government of the United States will realize that His Majesty's Government are doing all in their power to ensure that innocent neutral cargo shall be restored to its owners with as little delay as possible, and that the unavoidable inconvenience to neutral merchants shall be minimized so far as possible. I have [etc.] [File copy not signed] CASES ARISING UNDER THE ADDITIONAL PROCLAMATION OF File No. 300.115/518 SEPTEMBER 1 The Consul General at London (Skinner) to the Secretary of State [Telegram] AMERICAN CONSULATE GENERAL, London, September 28, 1914, 5 p. m. Dutch steamers Sloterdyk and Rotterdam brought Plymouth because of copper in cargo consigned by various American firms to Dutch concerns. As copper was declared conditional contraband on September 21 only and ships left New York prior to that date, I am protesting against seizure as unwarranted, as other shipments may be en route. Question arises as to American position relative to copper exports after September 21 in neutral bottoms consigned to neutral ports. British authorities are bringing all the Dutch liners into British ports and require affirmative proof that goods are for Dutch consumption. SKINNER File No. 300.115/585 Resolution of the Senate of the United States of September 28 (Calendar day, September 30), 19141 RESOLVED that the Secretary of State is hereby requested, if not incompatible with the best interests of the Government, to inform the Senate whether the British Government is interfering with export shipments of copper from American points to Rotterdam, carried in neutral bottoms, and if so, what reasons or justification are assigned by the British Government for so doing. Attest: File No. 300.115/561 JAMES M. BAKER Secretary The Consul General at London (Skinner) to the Secretary of State [Received September 30, 1914, 7.30 p. m.] Inquiries concerning cargoes laden ships captured lying French ports should be addressed Prefect Maritime of district where ship detained. Releases effected same basis as in United Kingdom where cases go to prize court at Bordeaux. Claims should be presented through advocate of Council of State. File No. 300.115/589 SKINNER The Minister in the Netherlands (Van Dyke) to the Secretary of State [Telegram] AMERICAN LEGATION, [Received October 2, 1914, 1.30 p. m.] 39. Branch houses of American firms and importers of American products at Rotterdam request me to transmit the following memo randum for your serious and early consideration: We desire to protest energetically against measures taken by belligerent governments regarding shipments consigned us from the United States which 'No reply was made to this resolution. have resulted in the Holland-America Line refusing to accept cargo intended for us unless consigned to the Dutch Government. We feel that American houses are entitled to conduct their business direct with their branches without interference as long as the goods clearly bear the neutral origin, character, and destination and are transported to neutral destination by neutral carriers. We are willing to sign a declaration to the effect that we are the consignees of the respective goods; that they are or will be sold to our customers in the Netherlands exclusively or for reexportation to such countries only as are not at war. This declaration should fully cover the requirements of all belligerents. VAN DYKE File No. 300.115/596 The Secretary of the Coffee Exchange of the City of New York to the Secretary of State New York, October 2, 1914. DEAR SIR: I have been instructed by the board of managers of the coffee exchange of the City of New York to transmit to you the enclosed copy of resolutions adopted at a meeting held this date, asking your prompt consideration for the same. I remain [etc.] [Enclosure] FRANK NORTON Resolution adopted by the board of managers of the coffee exchange of the City of New York October 2, 1914. WHEREAS of the total amount of coffee annually imported into the United States by its citizens, amounting to about 870,000,000 pounds, about 73 per cent thereof is shipped from Brazil and by far the greater part thereof is transported to this country by foreign steamers; and, WHEREAS a state of war now exists between Great Britain and Germany and between other European states, and it appears that one or more belligerent cruisers off the South American coast have captured and destroyed upon the high seas, without adjudication by a prize court, the steamer Indian Prince, and her cargo of about 34,000 bags of coffee of the approximate value of about $500,000, and other valuable cargo, the great bulk of which was the property of citizens of the United States, said vessel having laden her cargo at neutral Brazilian ports and being bound to ports in the United States, another neutral nation; and, WHEREAS there are now afloat in steamers of belligerent nations about 474,000 bags (62,568,000 pounds) of coffee, valued at about $5,318,000, largely the property of citizens of the United States, bound from neutral ports in South America to ports in the United States, and it appears that there is grave danger of the capture of the steamers carrying said cargoes and the total destruction of said shipment of merchandise by belligerent cruisers notwithstanding that said cargoes are not contraband of war, are the property of neutrals, who are citizens of the United States, in course of transportation between said neutral ports and are consequently not good prize, and that other similar shipments have been contracted for; and, WHEREAS Coffee constitutes one of the staple imports of great importance and value to the citizens of the United States and it is feared that if the aforesaid destruction by the cruisers of one belligerent of enemy ships and their neutral cargoes of coffee owned by citizens of the United States, shipped as aforesaid, continues, said shipments now afloat may be largely destroyed and lost, to the great damage of the owners thereof, and that the making of future shipments will thereby be greatly restricted if not rendered commercially impracticable, owing to increased rates of insurance and the inadequate supply of neutral vessels available for that purpose, to the serious loss and detriment of consumers and importers of coffee in the United States; it is therefore Resolved that in view of the serious danger of capture and destruction now threatening importations of coffee into the United States by its citizens in ships owned by subjects of nations now at war, by war vessels of nations hostile to the government of such carrying ships, the secretary of this exchange be, and he hereby is, authorized and directed to communicate this danger threatening such coffee shipments to the Hon. William J. Bryan, Secretary of State of the United States, by transmitting to him a copy of this resolution, to the end that the Government of the United States may take such steps and make such representations to the nations now at war as will, while saving and protecting the rights of our citizens for indemnity in respect of such losses as they have already sustained, result in preventing the destruction by warships of any belligerent nation, of cargoes of coffee and other merchandise owned by citizens of the United States in transit between neutral ports. The Acting Secretary of State to the Secretary of the Coffee Exchange of the City of New York DEPARTMENT OF STATE, Washington, October 9, 1914. SIR: The Department acknowledges receipt of your letter of October 2, transmitting a resolution adopted by the board of managers of the coffee exchange of the City of New York, on the subject of the seizure and destruction of ships of belligerent nations engaged in the transportation of coffee from neutral ports to the United States, and in reply begs to say that the resolution will receive the most careful consideration. The practice of nations in the past, stated generally, has been to sink prizes of war taken on the seas if either the ship or any part of her cargo was neutral property only when military necessity made this course imperative. This practice has now been embodied, at least in part, in the rules on the subject laid down by the Declaration of London, which Germany appears to have adopted for her guidance in the present naval warfare, and on which she has presumably based her action in this instance. It is not to be presumed, however, that the German Government will refuse to grant indemnity for neutral property which has been lost in such manner and which would otherwise have been restored by a court of prize. I am [etc.] ROBERT LANSING File No. 341.115 G 79/1 The Consul General at London (Skinner) to the Secretary of State [Telegram] AMERICAN CONSULATE GENERAL, Referring to seizure of 1,000 barrels wood alcohol owned by Grey and Company, of which Admiralty sold one lot at forced sale prior to filing of claim, and procurator's offer to release goods on payment of any freight which may be due, I stated September 29 that this mode of settlement would be unsatisfactory to American Government, adding that any loss resulting from forced sale constituted a reasonable claim and that no charges for freight and like expenses could be recognized as due. Procurator general was also supplied with text of Department's views October 6. Procurator states my reference to views of Department will be regarded merely as views put forward on behalf of individual American firms. While unable to make any general statement, he will take into consideration any representations respecting freight and charges in particular cases. The Bonar Law committee "if hampered by what appear unreasonable contentions might be reluctantly compelled to adopt stricter attitude." The procurator and committee state that in the majority of cases property has clearly or probably passed to enemy consignees and would have been condemned either to confiscation or detention. They claim to have acted on principle of doing what is equitable, independently of strictly legal considerations, and payment of freight and charges is as a rule a condition which the committee and procurator consider to be fair and reasonable." 66 If American shippers are compelled to pay these charges as condition precedent to release of goods, their losses will be heavily increased for benefit of British prize fund. Department should restate its position as authoritative position of American Government. SKINNER File No. 763.72112/161 The Consul General at London (Skinner) to the Secretary of State No. 66] AMERICAN CONSULATE GENERAL, London, September 25, 1914. [Received October 7.] SIR: I have been visited on several occasions by Mr. J. Rypperda Wierdsma, managing director of the Holland-American Line, of Rotterdam, and another director of the same company, who labor under the impression-or at least the hope that the interests of the American Government in the cargo and passengers carried by the ships of their line might induce it to support the efforts of the Netherlands Government to prevent further interference from the British Government. The Nieuw Amsterdam, the Ryndam, and the Rotterdam, each eastward bound, have been arrested during the past few weeks, and only after long and costly delays have they been permitted to proceed from the British ports to which they have been convoyed. The motive for these arrests is the British fear that the ships carry contraband, or conditional contraband, and apparently the British Government requires each vessel to prove that the cargo is not contraband before allowing it to proceed, although no undertaking is given on its part to show that it has any prima facie cause for arresting the ship in the first place. To put the matter practically, the British Government desires convincing proofs that cargo going to Holland is not intended for reshipment to Germany. While the Dutch Government has forbidden the export from Holland of various articles on the British list of merchandise contraband or conditional |