File No. 862.85/610

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

Dear Auchincloss: With reference to our conversation of today, I am telegraphing to the Foreign Office stating that you are acquainting the Argentine Government that vessels flying the naval flag and engaging in commerce must conform to the commercial and shipping regulations of the United States Government.

Meanwhile, I have received a telegram from London proposing that the transfer of flag in the case of the Bahia Blanca (and any other vessels of a similar kind) should be recognized, provided that an undertaking is given by the Argentine Government that:—

(1)
A vessel whether flying commercial or naval flag shall carry cargo either to United States or to European Allies and that each voyage shall be approved either by I[nter-]A[llied] C[hartering] E[xecutive] or U.S. Shipping Board; or, alternatively, that an Argentine vessel of equal tonnage not now employed in any trade of interest to the United States or the Allies shall be time chartered to the I.A.C.E. or Shipping Board with full trading limits for the duration of the war.
(2)
Vessels shall carry no officers, or crew of enemy nationality.

Would you be kind enough to let me have your views on this matter.

Yours very truly,

Richard Crawford