File No. 763.72/7089
The British Embassy to the Department of State
Memorandum
The British Embassy, with reference to their memorandum of September 10 [8?]1 relative to the allocation of enemy ships seized by the Chinese Government, have now received a further telegram from Mr. Secretary Balfour, in which it is stated that His Majesty’s Government fear that it will be impossible for them to accept the suggestion to exclude from the allocation the three Austrian ships said to have been purchased by the Mohawk Co. It is pointed out that to recognize the right of a private company to earmark these vessels, which are among the most valuable of the enemy ships in Chinese waters, would have the effect of depriving the Allies of their legitimate share of the tonnage offered, and although the United States Shipping Board might consent to employ the three vessels in question in Allied interests, the admission of the claim of the Mohawk Co. would operate to assign to the United States considerably more than their proportionate share of the tonnage.
[Page 691]Moreover, there are obvious objections to the approval of private negotiations instituted without prior consultation between the Governments concerned, and if the question is raised now, the Japanese Government will no doubt insist on the immediate recognition of similar purchases by their subjects. …
In order, however, to expedite the acquisition of this tonnage, which is a matter of the greatest urgency, His Majesty’s Government invite the consent of the United States Government to the following scheme of allocation, which is also being put before the Government of Japan, viz.:
The United States Government to receive the S. S. China 6,026 tons, and Silesia 5,174 tons, total 11,200 tons.
The Japanese Government to receive the S. S. Albenga 4,249, Sikiang 1,840, Georg 199, Bremen (tug) 273, Gertrud 816, Bohemia 4,284, a total of 11,661 tons.
His Majesty’s Government to receive S. S. Deike Rickmers 4,176, Heiene 1,237, Käthe 1,962, Sexta 1,643, Triumpf 1,242, Keong Wai 1,777, total 12,037 tons.
The steamships Mei Dah and Mei Lee are omitted, as it is understood that they are only suitable for river work, and the Chinese Government may wish to retain them.
With reference to the portion suggested for Great Britain, it should be observed that this would be handed over to the Inter-Allied Chartering Executive, to be chartered equally between France, Italy and Great Britain.
His Majesty’s Government are stipulating that rates to be paid by Allied Governments must not be higher than those recognized by the Inter-Allied Chartering Executive, and they hope that the Chinese Government will permit vessels to be chartered at a lower rate than say 30/– a month reckoned on a time charter basis, as this would enable the Chinese Government to make some contribution to the prosecution of the war.
- Not printed.↩