War trade Board Files: Switzerland, Shipping and Tonnage, Austrian Ships in Spanish, Waters, Vol. II

The Third Secretary of the British Embassy ( Hudson) to the Chairman of the War Trade Board ( McCormick)

Dear Mr. McCormick: I beg to enclose herewith paraphrase of the telegram which Sir Richard Crawford showed you regarding London’s opinion on the subject of tonnage for Switzerland.

Yours very truly,

R. S. Hudson
[Enclosure]

Paraphrase of Telegram from the Foreign Office regarding Tonnage for Switzerland

The Swiss Government have been unable to obtain enemy tonnage in Spain. They have been offered enemy ships in the Dutch East Indies, but we can not agree to this, since it is important that the vessels should remain there as to some extent a pledge of Germany’s good behaviour towards Holland. For the reasons already explained, we are reluctant to charter enemy ships in Chile, which, moreover, it is doubtful whether the Chilean Government would sanction.

The German Government are reported to be willing to charter to Switzerland five or seven ships in Spain on condition that a similar number be furnished by the Allies. Although War Trade Board representatives are in favour of this proposal, we are strongly opposed to it on the following grounds:

(a)
In view of the present relations between Spain and Germany, it is most unlikely that the Spanish Government would be willing to allow German vessels to leave Spanish ports, since if Germany succeeded in placing under neutral charter the large number of ships now in Spain, the Spanish threat to seize German vessels in retaliation for torpedoed Spanish ships would become practically ineffectual.
(b)
Bargaining with Germany would produce a bad moral effect, while the refusal of German tonnage would produce a good effect both in Germany and in the neutral countries.
(c)
It is altogether improbable that Germany would carry out the bargain. She has hitherto hindered all negotiations for these ships.
(d)
Alternatively, if she did cede the vessels, she would make an enormous profit—about 2,000,000 pounds a year.
(e)
According to M. Sulzer, the Swiss Government delegate, six months would be required to put the ships in service. Although [Page 1644] he has since stated that possibly some vessels might be ready in two months, all our information and experience as well as the nature of the facilities available in Spam point to six months as the probable minimum period.
(f)
It would be necessary to exercise strict supervision on navigation crews, etc., of any German ships allowed to sail. This would entail delays which would be represented by Germany as obstacles raised by the Allies, thus tending to minimize any gratitude that Switzerland might feel for our concessions.

The total enemy tonnage so far offered amounts to 30,000 to 40,000 dead weight tons approximately. This is only about 25 per cent of the tonnage required for Switzerland, which we estimate at about 120,000 dead weight tons. On a basis of five voyages a year, this would allow import of 50,000 tons of goods a month which we consider sufficient, although Switzerland has estimated her minimum requirements at 80,000 tons.

In view, however, of the extent to which Allied Governments now control neutral shipping, we recognize the necessity to substitute for the permission hitherto accorded to Switzerland to charter tonnage up to a specified amount a positive responsibility to place tonnage at her disposal. Such an undertaking would not only have an important political effect on conciliating Switzerland, but would also have the advantage of excluding her from chartering market.

We accordingly suggest that an obligation to provide 50,000 tons a month should be assumed by the United States, Great Britain and France, in the proportion of 2/5 and 1/5. This suggestion has been informally discussed at the Allied Maritime Transport Council, and was adjourned for the delegates to obtain the consent of their respective Governments.1 We trust that United States Government will accept it.

The question has been raised whether in return Switzerland should be asked for a quid pro quo. It seems to us inadvisable to press her too hard. Under their agreement with the United States the Swiss Government consider themselves entitled to claim that the Allies provide the necessary tonnage for a minimum of 50,000 tons of grain a month. If we obtain the consent of the Swiss Government to a total monthly ration of 50,000 tons we shall have done very well.

We recommend, however, that the Swiss Government be asked for an extension in a modified form of the financial agreement which we concluded with them on March the 20th last year, under which they advanced to us certain sums in proportion to the amount of shipping placed at the disposal of Swiss importers.

[Page 1645]

We understand that the United States Government desire to make some stipulation in regard to the purchase of stores from Switzerland, e. g., timber for American Army in France, and we should be glad to receive the views of the United States Government on this point.

  1. See telegram No. 1525, Aug. 31, 1918, from the Ambassador in Great Britain, vol. I, p. 521.