File No. 763.72112/514% The British Ambassador (Spring Rice) to the Counselor for the Department of State BRITISH EMBASSY, Washington, November 9, 1914. DEAR MR. COUNSELLOR: I duly received the official letter from your Department dated November 7 relative to the protest of your Government on the subject of the detention of United States vessels in British ports and other matters. I lost no time in telegraphing its contents to my Government and I will send a copy by the next mail. In the meanwhile I have received telegrams from my Government, copies of which I enclose for you herewith, which provide information as to the arrangements now being made with neutral governments with the object of putting as few hindrances as possible in the way of neutral trade and shipping, while carrying out those measures of restriction which present hostilities have unfortunately made necessary. I am [etc.] CECIL SPRING RICE [Enclosure 1-Telegram] The British Secretary of State for Foreign Affairs (Grey) to the British Ministers at Christiania (Findlay), Stockholm (Howard), and Copenhagen (Lowther) London, November 8, 1914. We are satisfied with the guarantees offered by the Norwegian, Swedish, and Danish Governments as to the non-exportation of those contraband goods consigned to a named person in Norway, Sweden, and Denmark which are included in the list of prohibited exports issued by the Norwegian, Swedish, and Danish Governments; and relying upon the Norwegian, Swedish, and Danish Governments to see that such goods are landed in Norwegian, Swedish, and Danish ports of destination and not subsequently exported or passed on in transit to enemy country, orders have been given to British Fleet and customs authorities at British ports to restrict interference with neutral vessels carrying such cargoes so consigned to verification of ship's papers and cargo. [File copy not signed] [Enclosure 2-Telegram] The British Secretary of State for Foreign Affairs (Grey) to the British Ambassador at Rome (Rodd) London, November 8, 1914. Italian prohibition of export is practically valueless so long as under Italian transit regulations cargoes even when addressed to named consignees in Italy may on arrival at Italian port be declared "in transit" and so escape export prohibition. We have accordingly decided on arrangement explained in my telegram to Rome of to-day, No. 100. That arrangement, if accepted by Italian Government, will fully provide for bona fide import trade into Italy and transit to Switzerland of cargoes for Swiss use, but will stop illicit transit to Germany. [File copy not signed] [Enclosure 3-Telegram] The British Secretary of State for Foreign Affairs (Grey) to the British Ambassador at Rome (Rodd) London, November 8, 1914. His Majesty's Government have decided for the present to stop at Gibraltar all copper except that consigned to the Italian Government, subject to the following restrictions. As regards electrolytic weak high-grade copper unquestionably destined for Italian firms they would be prepared, in view of measures taken by the Italian Government as reported in your telegram, to allow this to proceed if consigned to the Italian Government, firms making the necessary arrangements with their Government for this purpose. His Majesty's Government rely on the Italian Government to satisfy themselves that these consignments will not be declared "in transit" on arrival but will in fact fall under operation of prohibition of export. As regards Bessemer (lower-grade copper) shipment will be allowed through when consigned to Italian firms who give an undertaking that it is for use in Italy only. Your excellency should point out that an arrangement of this kind is rendered especially necessary in view of the existing Italian regulations under which as I understand from your telegram No. 86 shipments [?] even when addressed to named consignee in Italy may on arrival at Italian port be declared to be "in transit." Arrangement now proposed appears to be one which will afford all possible facilities to Italian houses and work with the least friction. Negotiations will be opened at once with the Swiss Government in regard to copper intended for Switzerland. Regina d'Italia has sailed from Gibraltar and it is understood copper for Pirelli has not been discharged. [File copy not signed] File No. 763.72112/337 The Ambassador in Great Britain (Page) to the Secretary of State [Telegram] AMERICAN EMBASSY, London, November 9, 1914. [Received 11.30 p. m.] 1029. Sir Edward Grey has given me the following written statement which I transmit entire: In view of the articles now appearing in the American press on the subject of the restrictions enforced by the Allied Governments on the contraband trade in copper, the following facts deserve consideration: Electrolytic copper is used mainly for the manufacture of ammunition and other warlike implements. There is now a great scarcity of such copper in Germany with the result that the most persevering efforts are being made by German agents and commercial houses working in conjunction with German capitalists to get copper into Germany, by some means or other regardless of cost. The principal channel chosen for this contraband traffic at present is Italy. Statistics just published give the imports of copper into Genoa for the two and a half months from August 1 to October 19 as 1,316 tons. Since the 25th of October vessels have been diverted to Gibraltar with no less than 7,700 tons of copper on board and several thousand tons are in addition now on the way from New York. This represents nearly 8,000 tons in ten days, of which the largest part is destined for Genoa. These figures point to but one conclusion: The present swollen trade is an entirely artificial one and does not represent bona fide imports into Italy. This is fully confirmed by other information. Some of the shipments seized at Gibraltar were actually found packed in cases marked for Danzig; other parcels are shipments made on orders placed by firms and agents to Amsterdam and Rotterdam. It is obvious that such shipments, if they were intended to meet genuine Dutch requirements, would not be expressly directed to take the route via Genoa. Moreover, the firms in question are not Dutch but German houses, some of them being actually connected with Krupp. It may also be stated that representatives of some of the big American copper-refining firms have recently sailed from New York for Europe by arrangement with the representatives of German firms with the object of consulting together as to the best means of introducing copper into Germany, notwithstanding its contraband character; and private houses in Italy have also been approached by purchasers of copper in Germany with the view of their lending their names for the purpose of disguising the destination of American copper shipments. Furthermore, it is known that, in view of the financial situation in Germany, the orders are not usually executed in America except on payment in cash before shipment, and that such payments are made by certain prominent firms of bankers in New York on German account. If, nevertheless, the cargoes are in many cases accompanied by bills of lading showing an American owner, there is good ground for believing that these papers do not genuinely represent the actual ownership but merely form part of the general scheme devised to conceal the real nature of the transaction. It is clear that what the Allied Governments have to deal with is a carefully organized plan on the part of German agents and their coadjutors in America to supply the German arms factories systematically with copper. To facilitate these operations it is sought to create an artificial and entirely unjustified agitation in the American press for the purpose of stirring up feeling against the Allied Governments on account of the measures which they are not merely justified but bound to take to put a stop to an illicit and unnatural traffic which, if successfully carried on, would be of the utmost assistance to their enemies in prolonging the war. The attempts to stir up American feeling in this matter is all the more regrettable as even in the rare cases where shipments may have been genuinely and innocently made by American citizens before October 29, when copper was transferred from the list of conditional to that of absolute contraband, the Allied Governments have intimated their readiness to meet any bona fide neutral grievance by purchasing the copper removed from neutral ships at a reasonable price. AMERICAN AMBASSADOR File No. 763.72112/304 The Secretary of State to the Consul General at Hamburg (Morgan) [Telegram] DEPARTMENT OF STATE, Washington, November 9, 1914. Department informed by Ambassador, Berlin, prize proceedings will be held soon at Hamburg with reference to vessels and cargoes that have been sunk by German warships. Keep Department informed by telegraph as to when proceedings on such vessels are to be held. BRYAN The Secretary of State to the Ambassador in Germany (Gerard) [Telegram] DEPARTMENT OF STATE, Washington, November 9, 1914, 8 p. m. 608. Your 724, November 4.1 Endeavor obtain information regarding procedure which should be followed by persons desiring to present claims for cargoes that have been destroyed. BRYAN File No. 300.115/1070 The Secretary of State to the Ambassador in Great Britain (Page) [Telegram] DEPARTMENT OF STATE, Washington, November 10, 1914. 511. Your telegrams November 21 and 3.2 In connection with cases . of detention of cargoes of copper on Kroonland and other vessels, bring following to attention of British Government and impress upon them the importance to American commerce of immediately releasing cargoes so detained. The Department desires to point out that copper was listed as conditional contraband up to October 29, nearly two weeks after some of the vessels detained had sailed, and that British Government contend that the real destination of the cargoes is German territory generally. This Government cannot admit that such cargoes of copper are legally subject to seizure and confiscation in the absence of evidence showing them to be destined for the armed forces or government of a belligerent country. Even if copper should be regarded as absolute contraband, the propriety of which is not admitted, Department is of the opinion that the evidence on board the vessels should make out a prima facie case showing that it is destined to German territory, and that the detention of vessels pending ascertainment of destination of cargoes from sources outside of ship's papers is not justifiable under existing rules of international law. If the copper is held on the ground that it was shipped under bills of lading drawn to order of shippers, which is a usual practice of the trade, Department deems it necessary to state that it cannot acquiesce in the detention of the copper on this ground, as such practice would be in its opinion contrary to existing rules of international law. To hold that conditional contraband is subject to detention and prize proceedings when so consigned appears to destroy the distinction under international law between conditional and absolute contraband. The Government of the United States is obliged to repeat its request that the cargoes of copper now detained on these grounds be released immediately and allowed to proceed to their destinations, and to reserve the right to hold the Government of His Britannic Majesty responsible for any damages which may result to American citizens from the interference of British authorities with such cargoes and with American vessels carrying them. BRYAN File No. 763.72112/370 The Ambassador in Germany (Gerard) to the Secretary of State [Telegram] AMERICAN EMBASSY, Berlin, November 12, 1914. [Received November 13, 1.20 p. m.] 822. Your sixth [608], November 9, 8 p. m. German code of prizecourt procedure defines interested parties in prize proceedings as the owners of the ships and cargoes seized and all private persons who have a legal interest in having the prize released or the owners awarded damages or restitution. The prize court shall call upon all interested parties to enter verified claims not less than two weeks or more than two months after issuance of this monition, which is generally by publication in the official gazette, but claims may be entered earlier. Claims must set forth all facts and proofs on which they rest, documents to be appended in the original if possible. They should be in the German language. They must be signed by a lawyer admitted to practice before any German court and who possesses the qualifications of the office of judge. He must have power of attorney in writing. If claimant does not reside at the seat of the court, he must designate a person residing there to whom service can be made. When a claim is filed in due season the presiding judge shall set a date for an oral hearing. The imperial commissioner and the claimant shall be summoned formally. If there are several claims touching the same object they shall all be heard at the same proceeding as a rule. Claimant or his agent is permitted upon special application to examine the papers with the consent of the imperial commissioner, which consent cannot be refused unless military interests demand it. The oral hearing is public. Claimants must give security for costs in an amount which is determined by the court. There are no fees attached to prize proceedings. GERARD File No. 763.72112/377 The Ambassador in Great Britain (Page) to the Secretary of State [Telegram] AMERICAN EMBASSY, London, November 13, 1914, 7 p. m. [Received November 14, 12.05 a. m.] Your 511, November 10. I have again gone over the whole question of detaining copper cargoes with Sir Edward Grey. His position in general is that when war material such as copper is shipped to a neutral country bordering on an enemy's country, and when the normal supply of the neutral of that material has been far exceeded by shipments since the war began, the British Government must require some responsible guarantee that any shipment in question shall not go to the enemy country. With such guarantee it will stop no cargo. Without such guarantee the overwhelming presumption is that it is destined for the enemy country. He maintains that all war materials shipped to anybody in Germany are now inevitably destined for the German Army, since the army is in complete command of all departments of the Government and of all industry. It is upon this principle that the arrangements have been made with the Scandinavian countries and are in process with the Netherlands and Italian Governments. In short the British Government will not interfere with bona fide commerce with neutral countries. But the evidence of bona fides must be some acceptable assurance that the |