File No. 659.119/93

The Commercial Adviser of the British Embassy ( Crawford) to the Counselor for the Department of State ( Polk)

My Dear Polk: I enclose copy of correspondence between Doctor Taylor, of the War Trade Board, and Percy.

Yours very truly,

Richard Crawford
[Enclosure 1]

The Acting Chairman of the War Trade Board ( Taylor) to the Secretary of the British Embassy ( Percy)

My Dear Lord Eustace: We are not a little embarrassed in our negotiations with Denmark by the fact that the Danish Government makes the statement that the British representatives in Denmark have stated to them that the non-shipment of petroleum is not the fault of the British. They are approaching a crisis in their scarcity [Page 977] in petroleum, and on the basis of the alleged statement of the British representatives, the Danish Government is throwing the entire responsibility upon the United States.

We have advices that indicate that Germany is taking advantage of the present situation and that all limitations on the exportation of cattle, for example, have been removed. An export tax is being collected only on the first seven thousand per week.

Yours faithfully,

A. E. Taylor
[Enclosure 2]

The Secretary of the British Embassy ( Percy) to the Acting Chairman of the War Trade Board ( Taylor)

Dear Doctor Taylor: Your letter of October 23 about Denmark comes very opportunely, because we have just received a telegram from our Minister at Copenhagen through the Foreign Office, of which I give you a paraphrase below.

Mr. Anderson says that telegrams received by the Danish Government from the Danish mission in connection with negotiations at Washington had created an unfortunate impression, as they indicated that the United States were throwing blame on Great Britain for the tightening of the blockade.

On the other hand, all the blame for this was thrown on the United States in a speech made by Mr. Foss at a recent public meeting.

I received a remonstrance from the First Secretary of the American Legation here recently. He was under the impression that we were throwing the responsibility on the United States. Of course, I told him that he was mistaken, and that the line I had taken in speaking to the Minister for Foreign Affairs and others was that these questions were being now discussed between the Allies, who would formulate their policy together.

It seems to me that the Danes are endeavouring to sow dissension between our two Governments.

The same kind of thing is happening elsewhere. For instance, Mr. McCormick spoke to me the other day about reports he had received from Holland, that we were throwing the blame on the United States. Almost simultaneously we had a telegram from The Hague saying that the impression was being disseminated in Holland that the United States had taken their measures at our instigation.

I have not thought it worth while to trouble you with these reports, but it is perfectly evident that all these neutrals are trying to play us off against each other, and I do hope that we shall not be misled by their efforts.

[Page 978]

There is, of course, no smoke without some fire, and when these neutrals come to us, as they sometimes do, asking us to represent to you that your action is resulting in the tearing up of compromise agreements made between us and the neutrals in the past, our representatives are in rather a dilemma what to say. They must avoid giving the impression that your policy is not a completely independent one, taken on the basis of your own sovereignty over your own exports, and they must equally avoid appearing to dissociate themselves from what you are doing. The difficulty is considerably increased by the frequent warnings given to me that opinions expressed in our discussions at the board are not to be taken as anything but informal and unofficial, so that we really have no statement from you with which we can express our agreement when we talk to neutrals.

We shall be glad of any line you can give us as to the exact reply which you would like given in such cases. I am not even sure that the statement which our Minister at Copenhagen says he has made to the Danish Minister for Foreign Affairs does not go further in the direction of associating ourselves with you than is agreeable to the Government of the United States.

Yours very truly,

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