File No. 763.72111/953
The British Ambassador( Spring Rice) to the Secretary of State
Dear Mr. Secretary: I have the honour to transmit herewith for your information the substance of a memorandum addressed by the Foreign Office to the Chilean Minister in London on the subject of the three new neutrality rules which the Chilean Government propose should be adopted by all governments on the American Continent.
At the same time the Chilean Minister was informed that if his Government are not disposed to agree to the extension of rules suggested in the memorandum, His Majesty’s Government are prepared to accept them as originally put forward. It was, however, pointed out that if Rule 1 is to be interpreted as imposing new restrictions on merely taking of British coal from British Government colliers in neutral waters—an interpretation which His Majesty’s Government thinks it cannot bear—Sir E. Grey is of opinion that due warning should be given so that there should be no discrimination against His Majesty’s Government who have openly counted upon the privileges hitherto allowed in this respect, whereas German warships have been and are still making use without hindrance of secret supplies of coal or colliers from neutral ports in neutral waters.
I am [etc.]
[Enclosure]
Substance of a memorandum communicated on November 29 to the Chilean Minister in London
His Majesty’s Government agree to the rules proposed subject to the following observations:
Rule 1 should be extended so as to read as follows:
To limit provision of coal to belligerent men-of-war and vessels, which under the neutrality rules in force in the neutral country concerned are subjected to the same rules as men-of-war, to the quantity necessary to carry them to the first coaling port of the nation geographically next to that in which coal is supplied.
His Majesty’s Government conclude that this rule is designed to prevent belligerent men-of-war from obtaining coal either directly or indirectly from American territory, and that the question of extent to which men-of-war may use shelter of territorial waters for the sole purpose of taking from their own colliers coal not emanating from neutral territory will continue to be governed by the principles adopted by each neutral country. His Majesty’s Government would accept more stringent ruling on this point also provided all neutral countries were prepared to enforce it adequately by the patrolling of their territorial waters. At present, all American countries do not appear capable of doing this and, in the absence of strict patrol by all countries, more stringent rules on this point would only discriminate against His Majesty’s Government who desire to act openly in all such matters with full knowledge of neutral governments.
Rule 2 should be extended to read as follows:
To establish as a penalty for Infractions committed by merchant ships, whether neutral or belligerent, of rules which each country promulgates as to neutrality, the prohibition of supplying fuel to all vessels of the company, [Page 694] or other owner, to which the ship infringing the said rules belongs. If such a ship is working under charter, the said prohibition shall apply also to all vessels chartered by, or belonging to, the same charterer.
His Majesty’s Government offer the opinion that the above rules will prove ineffectual unless supplemented by a fourth rule limiting the amount of coal to be taken by any merchant ship, belligerent or neutral, to bunker coal only. In the case of a coal-exporting country like the United States further provisions should be added covering ports from which coal is normally exported as follows:
Cargoes of coal should only be exported from a coal exporting port after that the government of the exporting nation has enquired of its consul at the port of ostensible destination whether the cargo was really for the nominal consignee.
If such a stringent rule cannot be enforced His Majesty’s Government propose that an enquiry should only be made in cases where it is asked for by the consular representative of the belligerent nation.