far heavier losses than a transitory prohibition of the rice trade in Chinese waters. The measure in question has for its object the shortening of the war by increasing the difficulties of the enemy and is a justifiable step in war if impartially enforced against all neutral ships."

His Majesty's Government are disposed to think that the same view is still maintained by the German Government.

Another circumstance which is now coming to light is that an elaborate machinery has been organized by the enemy for the supply of foodstuffs for the use of the Germany Army from overseas. Under these circumstances it would be absurd to give any definite pledge that in cases where the supplies can be proved to be for the use of the enemy forces they should be given complete immunity by the simple expedient of dispatching them to an agent in a neutral port.

The reason for drawing a distinction between foodstuffs intended for the civil population and those for the armed forces or enemy Government disappears when the distinction between the civil population and the armed forces itself disappears.

In any country in which there exists such a tremendous organization for war as now obtains in Germany there is no clear division between those whom the Government is responsible for feeding and those whom it is not. Experience shows that the power to requisition will be used to the fullest extent in order to make sure that the wants of the military are supplied, and however much goods may be imported for civil use it is by the military that they will be consumed if military exigencies require it, especially now that the German Government have taken control of all the foodstuffs in the country.

I do not wish to overburden this note with statistics, but in proof of my statement as to the unprecedented extent to which supplies are reaching neutral ports I should like to instance the figures of the exports of certain meat products to Denmark during the months of September and October. Denmark is a country which in normal times imports a certain quantity of such products, but exports still more. In 1913, during the above two months, the United States exports of lard to Denmark was nil, as compared with 22,652,598 pounds in the same two months of 1914. The corresponding figures with regard to bacon were: 1913, nil; 1914, 1,022,195 pounds; canned beef. 1913, nil; 1914, 151,200 pounds; pickled and cured beef, 1913, 42,901 pounds; 1914, 156 143 Founds; pickled pork, 1913, nil; 1914, 812,872 pounds.

In the same two months the United States exported to Denmark 280,176 gallons of mineral lubricating oil in 1914, as compared with 179,252 in 1913; to Norway, 335,468 gallons in 1914, as against 151,179 gallons in 1913; to Sweden, 896,193 gallons in 1914, as against 385,476 gallons in 1913.

I have already mentioned the framing of the order in council of the 20th October, and the transmission to your excellency of particulars of ships and cargoes seized as instances of the efforts which we have made throughout the course of this war to meet all reasonable complaints made on behalf of American citizens, and in my note of the 7th January I alluded to the decision of our prize

court in the case of the Miramichi as evidencing the liberal principles adopted toward neutral commerce.

I should also like to refer to the steps which we took at the beginning of the war to insure the speedy release of cargo claimed by neutrals on board enemy ships which were captured or detained at the outbreak of war. Under our prize-court rules release of such goods can be obtained without the necessity of entering a claim in the prize court if the documents of title are produced to the officer representing His Majesty's Government and the title to the goods is established to his satisfaction. It was shortly found, however, that this procedure did not provide for the case where the available evidence was so scanty that the officer representing the Crown was not justified in consenting to a release. In order, therefore, to ameliorate the situation we established a special committee, with full powers to authorize the release of goods without insisting on full evidence of title being produced. This committee dealt with the utmost expedition with a large number of claims. In the great majority of cases the goods claimed were released at once. In addition to the cases dealt with by this committee a very large amount of cargo was released at once by the procurator general on production of documents. Claimants therefore obtained their goods without the necessity of applying to the prize court and of incurring the expense involved in retaining lawyers and without the risk, which was in some cases a considerable one, of the goods being eventually held to be enemy property and condemned. We have reason to know that our action in this matter was highly appreciated by many American citizens.

Another instance of the efforts which His Majesty's Government have made to deal as leniently as possible with neutral interests may be found in the policy which we have followed with regard to the transfer to a neutral flag of enemy ships belonging to companies which were incorporated in the enemy country, but all of whose shareholders were neutral. The rules applied by the British and by the American prize courts have always treated the flag as conclusive in favor of the captors in spite of neutral proprietary interests. (See the case of the Pedro, 175 U. S., 354.) In several cases, however, we have consented to waive our belligerent rights to treat as enemy vessels ships belonging to companies incorporated in Germany which were subsidiary to and owned by American corporations. The only condition which we have imposed is that these vessels should take no further part in trade with the enemy country.

I have given these indications of the policy which we have followed, because I can not help feeling that if the facts were more fully known as to the efforts which we have made to avoid inflicting any avoidable injury on neutral interests many of the complaints which have been received by the administration in Washington, and which led to the protest which your excellency handed to me on the 29th December, would never have been made. My hope is that when the facts which I have set out above are realized, and when it is seen that our naval operations have not diminished American trade with neutral countries, and that the lines on which we have acted are consistent with the fundamental principles of international law, it will be apparent to the Government and people of the United States that His Majesty's Government have hitherto endeavored to exercise their

84610°-H. Doc. 2111, 64-2, pt 2—6

belligerent rights with every possible consideration for the interests of neutrals.

It will still be our endeavor to avoid injury and loss to neutrals, but the announcement by the German Government of their intention to sink merchant vessels and their cargoes without verification of their nationality or character and without making any provision for the safety of noncombatant crews or giving them a chance of saving their lives has made it necessary for His Majesty's Government to consider what measures they should adopt to protect their interests. It is impossible for one belligerent to depart from rules and precedents and for the other to remain bound by them.

I have the honor, etc.,

E. GREY.

Britain's change of lists of contraband so as to embrace most of the sea-borne commerce, and her insistence of the exercise of her prizecourt proceedings encompassed almost the entire neutral trade in the early part of the war as indicated by the following lists of vessels seized and detained by her order:

The first list includes the cases of 155 vessels brought into British ports or otherwise detained for examination. Of these, 40 were forced to discharge their cargoes, which were held for prize-court proceedings. Thirty more were subjected to protracted detention at great loss. One American vessel carrying oil to Copenhagen was run aground by the English prize crew aboard her off the coast of Scotland.

It will be noted that this list does not include cases like that of the Wilhelmina, which, when seized by the British, was bound for Hamburg with cargo of foodstuffs, and the Dacia, which was seized by the French Navy under British instructions.

Nor does this list include the vessels, 273 in number, recorded by the Government of the United States in an appendix to its note of October 21 as having been detained in the port of Kirkwall alone between March 11 and June 17. The Government list is appended, bringing this merely illustrative record of ships detained up to a total of 428.

From March 11, 1915, to June 16, 1915, 271 vessels carrying American cargoes were compelled to stop at Kirkwall, England.

A PARTIAL LIST OF SHIPS DETAINED.

S. S. Kumeric (British): Sailed from Galveston July 17, 1914 (via Newport News July 24), for Bremen. Cargo, 49,000 bushels of grain. Taken to Queenstown August 2; detained at Liverpool August 19.

S. S. Berwindmoor (British): Sailed from New Orleans July 21, 1914, for Rotterdam. Cargo, 196,000 bushels of grain. Diverted to Falmouth August 5; at London August 21.

S. S. Campanello (British): Sailed from New York July 30, 1914, for Rotterdam. Sent to Cardiff August 12; detained.

S. S. Spenser (British): Sailed from New York July 31, 1914, for Rotterdam. Sent to Liverpool.

S. S. Saint Helena (British): Sailed from Galveston July 16, 1914 (via Norfolk, Va., July 24), for Bremen and Hamburg. Cargo, phosphate rock, wheat, and cotton. Diverted to Manchester.

Cargo seized August 12. Phosphate rock released, as well as part of cotton. Large quantity of cotton and the wheat not released, including 50 bales of cotton shipped by Alexander Spunt & Co., of Houston, Tex., and Bremen; claimed belonging to neutral subjects and as such not subject to seizure; also on ground that contract of sale between American citizens dated May 8, 1914. These goods, including wheat, condemned in prize court.

S. S. Penlover (British): Sailed from Galveston July 18, 1914, for Rotterdam. Cargo, 264,000 bushels of grain. Diverted to Falmouth and ordered to London August 15.

S. S. Kalomo (British): Sailed from New Orleans July 24, 1914, for Rotterdam. Cargo, 64,000 bushels of grain. Detained at Falmouth; at London August 15.

S. S. Andijk (Dutch): Sailed from New Orleans July 30, 1914, for Rotterdam. Cargo, 136,000 bushels of grain. Sent to Falmouth for orders; arrived at Rotterdam August 16.

S. S. Noruega (Norwegian): Sailed from Galveston July 30, 1914, for Christiania. Cargo, 40,000 bushels grain. Diverted to Falmouth; arrived at Christiania August 26.

S. S. Orteric (British): Sailed from Galveston July 27, 1914 (Newport News August 4). Detained at Queenstown August 17; arrived at Liverpool August 21. Cargo for Bremen and Hamburg seized.

S. S. Nitonian (British): Sailed from New Orleans July 31, 1914, for Antwerp. Cargo, 142,000 bushels grain. Diverted to Falmouth; arrived at London August 22; at Antwerp September 5.

S. S. Glenfinlas (British): Sailed from New Orleans August 1, 1914 (via Norfolk August 7), for Rotterdam. Cargo, 108,000 bushels grain. Diverted to Falmouth August 26; at London September 1. S. S. St. Dunstan (British): Sailed from Galveston August 4, 1914, for Rotterdam. Cargo, 122,400 bushels grain. Diverted to Cork for orders; at Liverpool August 27; at Manchester September 5. S. S. Miramichi (British): Sailed from New York July 3, 1914 (via Galveston July 23), for Rotterdam. Cargo, 16.000 bushels of wheat (part of cargo), shipped by Muir & Co., for Rotterdam, to be delivered to George Fries & Co. in Colmar, Germany, and Gebrueder Zimmern & Co., Mannheim, Germany. Vessel not permitted to proceed to Rotterdam. Taken to Eastham and cargo consigned to Germany seized. Prize court decided that goods seized were property of the American claimants and not subject to seizure. Ordered released to claimants December, 1914.

S. S. Klosterfos (Norwegian): Sailed from New York August 28, 1914, for Christiania. Cargo, flour in barrels. Vessel stopped and boarded by British officers off the north coast of Scotland and ordered to Aberdeen. Held several days until neutral ownership of cargo was established. Arrived at Christiania September 17.

S. S. Vitalia (Norwegian): Sailed from New York August 19, 1914, to Rotterdam. Cargo, meat. Detained at Falmouth September 7. S. S. Lorenzo (American, New York and Porto Rico Line): Chartered on August 2, 1914, by Gans Steamship Line. Sailed from New York August 6, 1914, for Buenos Aires. Cargo, coal. Captured by British and taken to St. Lucia September 12. October 16, cargo condemned; October 30, vessel condemned.

S. S. Heina (Norwegian): Sailed from Philadelphia August 7, 1914, for St. Thomas. Cargo, coal. Seized September 13 off St. Thomas by French cruiser Conde; detained six. months; released at Fort de France March 20, 1915; reached New York April 15, 1915.

S. S. Vestfos (Norwegian): Sailed from New York August 28, 1914, for Christiania. Cargo, flour in barrels. Stopped and boarded by British officers. Taken to Kirkwall; left September 14; arrived Christiania September 17.

S. S. Ryndam (Dutch, Holland-America Line): Sailed from New York September 8, 1914, for Rotterdam. Seized by British warships and brought into Cork Harbor September 17; released September 20 at Queenstown. Again held up and ordered by British cruiser (September 21) to enter Falmouth. Arrived at Rotterdam September 24.

S. S. Amsteldyk (Dutch, Holland-America Line): Sailed from Philadelphia September 10, 1914, for Rotterdam. Captured by British cruiser and taken to Queenstown September 25; released; arrived at Rotterdam October 12.

S. S. Rotterdam (Dutch): Sailed from New York September 15, 1914, for Rotterdam. Cargo, copper. Shippers, American Smelting & Refining Co., United Metals Selling Co., American Can Metal Co., L. Vogelstein & Co., and Norfolk Smelting & Refining Co. Seized September 26, en route while copper was made conditional contraband (absolute contraband only since October 29). Copper bought by Great Britain. Arrived Rotterdam October 12.

S. S. Slolerdijk (Dutch): Sailed from New York September 9, 1914, for Rotterdam. Cargo, copper. Shippers, American Metal Co. (Ltd.) and L. Vogelstein & Co. Seized September 26, en route while copper was made conditional contraband (absolute contraband only since October 29). Copper bought by British Government. Arrived Rotterdam October 6, 1914.

S. S. Potsdam (Dutch): Sailed from New York September 22, 1914, for Rotterdam. Cargo, copper. Shippers, American Smelting & Refining Co., United Metals Selling Co., American Metal Co. (Ltd.), and L. Vogelstein & Co. Seized October 9. Copper bought by British Government. Arrived Rotterdam October 15.

S. S. Westerdyk (Dutch): Sailed from Baltimore September 21, 1914, for Rotterdam. Cargo, copper. Shipper, American Smelting & Refining Co. Seized October 9. Copper bought by British Government. Arrived Rotterdam October 18.

S. S. Beta (Swedish): Sailed from Philadelphia September 23,. 1914, for Helsingborg and Oscarshamn. Detained and taken to Kirkwall for examination October 12. Arrived at Helsingborg October 21. S. S. Aquila (Norwegian): Sailed from New York September 23, 1914, for Christiansand, Korsoer, and Copenhagen. Detained at Kirkwall October 12 for examination. Arrived at Copenhagen October 24.

S. S. Nicholas Cuneo (Norwegian): Sailed from New York September 26, 1914, for Christiania. Detained and taken to Kirkwall for examination October 12. Arrived at Christiania October 19.

S. S. Noordam (Dutch, Holland-America Line): Sailed from New York October 6, 1914, for Rotterdam. Cargo of about 13,000 tons consigned to Dutch Government. Wheat, flour, foodstuffs diverted to Falmouth October 15.