File No. 659.119/124a
The Secretary of State to the Ambassador in Great Britain ( Page)
5926. Repeat following to McCormick and Copenhagen except instructions at end which intended only for Copenhagen:
Following letter dated November 27 was handed Danish Minister to-day.
We regret that the negotiations with the representatives of the Danish Government here have not yet readied a conclusion, and the following is submitted to you as our proposal of a general arrangement between Denmark and the War Trade Board, and with the desire of pushing forward the negotiations in every way possible we have set down the following bases, which we hope will lead to an early conclusion of the negotiations we have been carrying on.
The principal delay has been because your representatives have felt that they must insist on a 50 per cent division of your exportable surplus of pork and dairy products. We regret that we have not been able to agree to this principle, and we propose instead the basis of [Page 1075] pre-war percentages of exports from Denmark shown by the average annual exports during the three years immediately preceding the outbreak of the European war, that is, years ending July 1, 1912, 1913 and 1914.
The War Trade Board will agree to issue export licenses for the following commodities for the needs of Denmark so long as the needs of the United States and her Allies permit; it being understood that Denmark will agree to stipulations and conditions of a draft of final arrangement by which she will not permit exports or re-exports which may benefit the Central powers.
The following are the articles which we understand constitute Denmark’s needs, in metric tons unless otherwise stated:
| Sulphur | 270 | |
| Asbestos | 275 | |
| Graphite | 100 | |
| Copper | 2,500 | |
| Zinc | 1,000 | |
| Lead | 2,000 | |
| Silver | 14 | |
| Antimony | 25 | |
| Brass wire | 34 | |
| Brass screws | 36 | |
| Mineral turpentine for Varnish | 300 | |
| Paraffin | 600 | |
| Kerosene and gasoline | 79,000 | |
| Wax | 100 | |
| Zinc and lead paints | 2,500 | |
| Asphalt | 3,250 | |
| Flower bulbs | 740 | |
| Timothy and other grass seeds | 1,250 | tons |
| Garden and tree seeds | 117 | |
| Cotton and cotton goods | 10,500 | |
| Hemp | 2,000 | |
| Cordage | 5,000 | |
| Binder twine | 1,600 | |
| Mexican fibres, etc | 1,100 | |
| Wool | 800 | |
| Boots and shoes | 280 | |
| Leather goods | 300 | |
| Soles | 800 | |
| Uppers | 640 | |
| Apricot and peach kernels | 50 | tons |
| Cocoanuts (Up to September, 1918; thereafter double that quantity.) | 100 | tons |
| Other nuts and kernels | 250 | tons |
| Apples | 2,000 | |
| Bananas | 1,000 | |
| Dried fruits | 3,000 | |
| Rice from Orient | 2,000 | |
| Coal pitch | 600 | |
| Lubricating oils, greases. | 45,000 | bbls. |
| Crude fuel oil | 50 | Tons |
| Dark refuses | 15,000 | |
| Turpentine oil | 500 | Tons |
| Linseed oil | 6,000 | |
| Varnishes | 700 | |
| Resin | 1,500 | |
| Shellac | 90 | |
| Wood tar | 900 | |
| Turpentine, refined | 15 | |
| Tragacanth, various gums | 90 | |
| Various sorts of glues and limes | 500 | |
| Coffee | 15,000 | |
| Tea | 400 | |
| Cocoa | 3,000 | |
| Glucose | 250 | |
| Spices | 330 | |
| Pepper | 42 | |
| Starch | 2,200 | |
| Saltpetre | 35,000 | |
| Rubber goods and auto tires | 500 | |
| Other rubber articles | 255 | |
| Phosphate rock | 56,000 | |
| Electric lamps | 70 | |
| Machine packing | 50 | |
| Tobacco | 5,000 | |
| Silk | 100 | |
| Feathers | 400 | |
| Various woods | 300 | |
| Talc | 150 |
We propose that Denmark limit her exports of the following:
Twenty-one hundred tons per month fresh fish or fish products measured in terms of fresh fish to be the maximum quantity exported to Germany or her allies.
A maximum of 6,000 head of cattle during any one week.
A maximum of 2,500 head of horses to be exported during any one month.
Of the total exports from Denmark of pork and pork products, butter and eggs for said period, there shall be exported to Germany [Page 1076] not more than pre-war percentages for the years ending July 1, 1912, 1913 and 1914.
Of the total exports from Denmark to Great Britain of pork and pork products, butter and eggs for said period, there shall be exported to Great Britain monthly not less than the pre-war average percentages for the years ending July 1, 1912, 1913 and 1914.
The products of cattle originating in Denmark for German consumption may be exported to Germany, but Denmark agrees to limit the exports to such products.
Manufactured products not to exceed $2,000 in value in any one month.
Lubricants, oils, kerosene or gasoline received from the United States shall not be employed in factories or in manufacturing plants of any kind (excepting dairies) operating to produce commodities of any kind for exportation to Germany.
All exportable surplus hides are to be shipped to the Allies and we in return to grant the licenses on heavy hides and adequate tanning material.
That 300,000 tons of Danish ships and motorships of over 1,000 tons dead weight are to be delivered on or before January 15,1918, to the United States Shipping Board under charter for the period of the war on the following terms and conditions:
It is understood that about 100,000 tons of these vessels will be used for the Belgian Relief Commission, and that the balance is to be under the direction of the United States Shipping Board.
This arrangement is made with the understanding that there will be more than 100,000 tons of shipping left over after the above are provided for, and that any surplus shall be divided half and half between the United States and Great Britain.
It is understood that 100,000 tons of these vessels shall be free to be used by the Shipping Board in the trade to and from the war zone. It is understood that the balance of 100,000 tons are to be used in safe trades.
It is understood that vessels which are employed in the European war zone shall receive compensation at the rate of 45/– per ton dead weight, and those employed outside of the war zone shall receive 35/– per dead-weight ton.
The value of the vessels is to be on the basis of £30 per deadweight ton, for which the United States Government on all vessels under charter to it is to be liable to the Danish owners against any loss by war risks.
Charter is to be made on the New York Produce Exchange form of time charter: that hire is to be payable in dollars in New York or Washington at the option of the Shipping Board.
As regards the deliveries of the above tonnage, all ships will be delivered as promptly as possible, but it is agreed that the Danish owners will make no new charters from the time this agreement is consummated until the full 300,000 tons has been delivered.
It is also understood that Denmark is to have for her necessary trades to and from Denmark to England and America and the world about 350,000 tons dead weight of steamships and motorships. Any balance of tonnage above that quantity and [Page 1077] what is chartered to Great Britain and the United States shall be on the first 100,000 tons chartered to Great Britain and above that quantity equally divided under charter to those two countries.
The 350,000 tons dead weight alloted to Denmark shall be free to engage in general trade when they are not engaged in trade to or from Denmark, Iceland or the Faroe Islands. It is understood that these vessels will engage in trades of interest to U.S.A. and Great Britain, and to ensure this no Danish vessel will be chartered for voyage or time or engage in any trade without the previous consent of the U.S. Shipping Board, if charter concluded on this side, or, if elsewhere, not without the consent of the Inter-Allied Chartering Committee.
Danish ships engaged in any of the above named trades, either to Denmark or with the consent of the U.S. Shipping Board or in [of?] the Inter-Allied Chartering Committee, to be granted all facilities with regard to bunker coal, or oil for motorships, of American origin.
The Danish commission is to furnish to the War Trade Board a list of all their vessels and their charters and the length of said charters.
It is understood that the U.S. Government will on such vessels as are used to the European war zone include them in its convoys.
All voyages and cargoes on vessels trading from American ports are to be approved by the War Trade Board. Where the United States aids Denmark to secure cargoes elsewhere voyages shall also be approved.
Since the quantities of protein and fat foods available for importation into the Scandinavian countries must be limited by present world shortage, it is anticipated that Danish surplus production of such foods must be relied on in the coming months to supplement domestic Norwegian and Swedish production, and the board will be glad to learn whether the Danish Government is prepared to accept as an obligation the supply to Norway and Sweden of the full amount of pork and dairy products and meat needed for their internal consumption, as a prior claim on any exportable surplus of Danish produce.
The board will be glad to receive as soon as possible the reply of the Danish Government to this definite proposal, with a view to the consideration of reasonable modifications.
Accept, my dear Mr. Minister, the renewed assurances of my highest consideration. Signed, Thomas D. Jones, Vice Chairman, War Trade Board.
Following only for Copenhagen.
Deliver copies of the foregoing to the British and French representatives. The letter was written after long consultation with the British and French representatives here and has their approval. As soon as you have delivered copies to them, deliver a copy to Foreign Office and state that this copy was forwarded by cable at the request of the Minister.