Mr. Hay to Mr. Choate.

No. 290.]

Sir: I have to acknowledge the receipt of your No. 234 of the 18th ultimo, inclosing copies of further correspondence on the subject of the seizure and detention of American merchandise bound for South Africa, and stating the present status of the matter.

I take this occasion to inclose, in confirmation, copies of the cablegrams which have passed between us in these cases.

Notwithstanding some confusion in the transmission of the Department’s telegram to you of the 2d ultimo, it was correctly interpreted by you in the sense intended.

Immediately on receipt of your cablegram of January 12 with reference to the sale, by joint consent of consignors and consignees of goods seized, to the British Government, the Department repeated the suggestion to all the American shippers, with the result that the proposition of the Pennsylvania Milling Company, already communicated to you, is the only one which has assumed practical shape. Other shippers, uncertain as to what bills drawn against the goods shipped have been paid, and in doubt on questions of ownership, and also on account of the difficulty in obtaining definite and satisfactory information, have been awaiting fuller developments before deciding.

Inasmuch as it is not claimed by Her Majesty’s Government that any of the goods seized were contraband, and considering the difficulties involved in obtaining definite information to enable the American owners to establish before the prize court their right to the restitution of their goods, it is hoped that the rules of the prize procedure may not be so rigidly enforced as to result in the condemnation of goods for want of opportunity to defend. In the existing circumstances this is especially desirable in order to avoid possible injustice.

The Department fully approves your action and cordially appreciates the skill and vigilance displayed in the conduct of the negotiations in protecting the interests of the American shippers.

I am, etc.,

John Hay.