File No. 763.72112/513

The British Secretary of State for Foreign Affairs (Grey) to the British Ambassador at Washington (Spring Rice)

[Telegram]

You should take steps without the appearance of an official communiqué, to make known to the press following facts, which I am communicating to the United States Ambassador.

We are informing some of the correspondents here in same sense.

Information in possession of British Government conclusively proves that very large shipments of copper, rubber, and other commodities are passing through Italian ports on their way to Germany.

In New York large purchases of copper are being made by houses in Rotterdam, Amsterdam, and Copenhagen who are working on German account. Directions are at the same time being given that these large consignments of copper are to be shipped through Italian ports to the order of such institutions as Banat Commerciale, a banking concern largely controlled by German capital.

The American copper refiners appear to be quite capable of protecting their own interests since they usually insist on payment in cash before they allow copper to be shipped, and it is well known that certain prominent firms of bankers in New York are making these payments on German account.

British Government, it is understood, are determined that they will use every legitimate endeavour to prevent copper reaching Germany where it is being made into ammunition for use against the British forces and they are therefore diverting various steamers carrying copper to Italy, to Gibraltar, where copper is discharged and steamers promptly released. Some of this copper is actually found to be packed in cases marked “For Danzig.” Other parcels are shipments made upon orders through German houses in Amsterdam and Rotterdam, some of these houses being actually connected, with firm of Krupp.

It is understood that representatives of some of the big copper-refining firms have recently sailed from New York to Europe with the object of consultation with representatives of German firms as to the best means of forwarding copper to Germany, and private houses in Italy have also been approached by purchasers of copper in Germany with a view of their lending their names for the purpose of disguising destination of American copper shipments.

To show increase in exports of copper from New York to Italy during last few weeks it is only necessary to say that since the 25th of October vessels have been diverted to Gibraltar with no less than 7,700 tons of copper on board and at the present moment there are very large shipments on the way amounting [Page 339] to some thousands of tons. This represents nearly 8,000 tons in ten days. Larger part of these shipments are destined for Genoa. Now it so happens that an official return of imports of copper into Genoa between August 1 and October 19 has just been published: For these two and a half months they amount to only 1,316 tons.

On comparison of these figures the fact is obvious that present trade to Italy is entirely an artificial one and that Italian imports are not for consumption in that country.

In view of all this accumulative evidence there is no alternative left to the British Government but to stop contraband trade in copper with Germany through Italy.

With a few possible exceptions the American citizen does not suffer, as he has been already paid, but it is understood that the British Government do not in any way wish to be unreasonable and are prepared, so far as shipments made before October 29 are concerned, on which date copper was transferred from conditional to absolute contraband list, to arrange for purchase of copper which has been detained by them.

[File copy not signed]