195.1/14½
Mr. J. P. Morgan to President Wilson
My Dear Mr. President: Referring to the question of the purchase of ships from the German flag by the United States Government or by American citizens, I feel I should inform you that, on August 18th, I received from my London firm, which is at the moment in very close touch with the British Government, a cablegram from which I quote as follows:
“Our Government have privately intimated to us that such a transaction by a neutral in buying ships from a belligerent would contravene international law since the ships would be sold only to avoid capture. Therefore our Government would not hesitate to capture such ships even if sailing under American flag. This you will agree would create bad feeling between Great Britain and the United States during the war and certain to lead to American claims after the war.”
I replied to the cablegram, asking if the British Government was taking the stand that it will recognize the transfer only to the British flag of ships belonging to other belligerents, and whether they would not be satisfied with bonafide transfer to a company wholly under neutral control. To this I received late last night a reply saying:
“In my opinion British Government would certainly decline admit that the transfer of German ships to neutral flag in existing circumstances would be consistent with international rules. Article 56 Declaration London makes this clear.1 You understand British Government quite satisfied if they know steamers were to be New York until end of war and if your authorities arrange this it would be entire-satisfactory.”
The balance of the cablegram consists of suggestions in regard to purchases.
I send you this information for what it is worth, appreciating very fully that your information is certainly more complete than mine, but should I be able to be of service to you in this or any other matter I trust you will let me know.
I am [etc.]
- For text of the Declaration of London, see Foreign Relations, 1909, p. 318.↩