862.5151/1310
The Consul at Berlin (Geist) to the Secretary of State
[Received September 4.]
Assistance Rendered by the Consulate General to the United States Lines and Other American Shipping Interests
Sir: I have the honor to inform the Department that I have been having conversations in the Ministry of Commerce of the German Government during the past few weeks, with regard to what appears to be discrimination by the German authorities against American shipping in connection with the use of blocked mark accounts, the granting of permissions to acquire foreign currency, et cetera.
It appears that a number of incidents have come to the attention of the United States Lines, that the German authorities have been utilizing the stringent currency situation in Germany to discriminate against foreign shipping. Information came to the United States Lines, for instance, that the firm of Brueder Kolb of Vienna, manufacturers of automatic slot machines, were advised that they could use a blocked mark account which they had in Germany for the payment of freight on German railways, provided the goods shipped eventually moved in German bottoms. It appears, in this connection, that the Deutsche Bank in Berlin advised Schenker & Company under date of July 3, that blocked marks could be used for the payment of freight in transit to seaports, provided the goods moved in German vessels. In its representations on the subject, the United States Lines addressed the Consulate General in Hamburg as follows on July 14:
“. . . . . . .
As you know, the authorities here as well as the German steamship companies have repeatedly confirmed that they do not demand that German vessels be used when authorizing the use of Blocked or Registered Marks. Despite this we are repeatedly running across instances [Page 438] where shippers are very definitely informed that, unless they use German ships, the use of these Marks cannot be permitted.
I have seen the letter from the Deutsche Bank to Schenker & Co., but cannot obtain a copy of it, and I am wondering whether there is not something that you could do through Berlin to again bring to the attention of the German Authorities that efforts of this kind to prevent shipment with American vessels will not be tolerated by our Government, and that sooner or later serious difficulties will be created if this policy is maintained.”
Another instance came to the attention of the Consulate General when Mr. Roland Velz, an American citizen employed by Woolworth & Co., exhibited a letter from the Landesfinanzamt of the Brandenburg district, in which the Landesfinanzamt informed that it would be willing to grant Mr. Velz permission to take more money with him on his vacation to the United States if he engaged passage on a German ship. This Mr. Velz refused to do in view of the fact that he had already engaged his passage on a vessel of the United States Lines, and furthermore, he desired to travel on an American ship.
It was also understood that the German Currency Controller was willing to release blocked mark accounts for the payment of ocean freight, provided that the accounts were used for the payment of freight sent by German vessels.
I have had a number of conversations with Direktor Scheuerl of the Reichsstelle fuer Devisenbewirtschaftung of the Ministry of Commerce, and called his attention to these several instances and evidences which have come to our attention of the fact that the German authorities are utilizing the currency situation to divert freight and other business to German vessels, resulting in discrimination against American shipping.
I have also been supplied by the United States Lines with a form of application which has been prepared by the German authorities for the use of scrips in connection with the so-called “zusaetzlichen Frachtgeschaeftes” (additional freight business). In connection with the application directed to the German Reichsbahn, German and foreign shippers had to describe in their applications how the entire freight expenditure would be applied, namely, how much abroad, how much for local railway charges, how much for inland waterways, and also how much “den deutschen Ueberseetransport” (German overseas shipping). The United States Lines pointed out that the clause “den deutschen Ueberseetransport” would have the effect of intimidating all firms making application for the use of scrips in connection with transportation, to the extent that they would have the feeling that if they did not route their shipments via German ocean vessels, the application for the use of scrips would be denied.
[Page 439]In my last conversation with Direktor Scheuerl, I received from him the assurance that his department, namely, the Reichsstelle fuer Devisenbewirtschaftung upon whom the responsibility for all these measures is placed, would not discriminate in any way in favor of German shipping through the use of currency control, blocked marks, scrips, or any other device. He said that he could assure the United States Lines that in this respect the German Government will adhere to its international agreements, specifically to the arrangements made in the North Atlantic Conference,31 and that this would be the guiding principle in all these matters. He was willing to investigate the complaints which I brought to his attention and to see to it that the numerous offices under his department would carry out this major policy. He explained, however, that while the matter of currency control, the release of blocked marks, the use of scrips, et cetera, was based upon a general policy of protecting Germany’s currency occasionally district offices here and there carried their logic somewhat too far. He stated with regard to the position taken by the Landesfinanzamt of Brandenburg which was willing to grant Mr. Roland Velz a larger quota of currency to be taken out of the country if he used a German ship, that it did so in view of the fact that if passage is paid on German ships, that much less currency has to leave the country. Dr. Scheuerl, however, admitted that this would result in discrimination and that this is a practice that cannot be approved. He also assured me that blocked marks would not be released for payment of inland freight on the condition that German ships were used. He categorically stated that no such order had ever been issued by his Department.
With regard to the circular form of application, calling for data with regard to the amount of freight which would accrue to the benefit of German overseas shipping in connection with the use of scrips, he took immediate steps to have this clause changed so as to avoid the appearance of pressure being used on shippers to use German vessels when they applied to avail themselves of scrips.
As the United States Lines have been disturbed on account of these indications of discrimination against their vessels, it has been of material advantage to get the German authorities to commit themselves definitely to a policy of non-discrimination. Dr. Scheuerl, however, pointed out that the various Landesfinanzaemter which are scattered all over the country, may here and there deviate from this policy through their own interpretation as to how the currency situation can best be safeguarded. He stated he would send a circular around, emphasizing again the general principles to be observed. He felt sure that if there were any further complaints, they would arise only [Page 440] as isolated individual cases and that they could be dealt with as they came to our attention.
Respectfully yours,
- Organization of steamship companies engaged in trans-Atlantic passenger business.↩