CHAPTER VII CONTROL OF BUNKERS AND IMPORTS GENERAL BUNKER POLICY The Law Adviser's memorandum of May 17, 1917,1 referred to in the preceding chapter,2 made clear that the economic cooperation of the United States with the Allies was to be based on the right of the United States to control its exports. In that memorandum several statements were made in regard to the bunker policy to be followed during the war. 1. The United States was unwilling to force neutral ships to call at British ports for examination. However, outgoing ships might be allowed to carry only enough bunkers to reach a British examination port. 2. The United States was unwilling to force neutral ships into the danger zone in service for the United States or the Allies, further than to insist that neutrals use their ships to carry their own supplies to and from belligerents. 3. The United States was willing to "induce" neutral ships to carry supplies between neutral countries. 4. The United States was willing to prevent its coal, fuel oil, and ship's stores from being used in trading with the enemy. 5. The United States would not refuse bunkers to persons on account of enemy nationality or association; there should be reasonable ground for believing that the coal would be used for the direct benefit of Germany. 6. The United States was willing to make the supply of bunkers to neutral ships conditioned upon their agreeing not to transport enemy subjects or agents. As the supply of bunkers was a favor, the ships should not carry persons likely to be inimical to the interests of the United States." 66 7. The United States was prepared to agree with the Allies upon a coal white list" in accordance with the above statements. One week later the Law Adviser informed a British representative of Secretary Lansing's "tentative view" that the most feasible method for the United States to exercise bunker control was to prevent American coal from being used to evade the control then exercised by Great Britain. To accomplish this end, the United States would limit the supply of American cargo coal to persons on the 1 Document 252. 2 See p. 89. Document 254. 119 "coal white list" and would prohibit neutral ships "from bunkering for the round trip or farther than the next suitable bunkering port." The President's proclamation of July 9, 1917, provided that licenses were required for the exportation from the United States of "coal, coke, fuel oils, kerosene and gasoline, including bunkers." Under the proclamation of August 27 licenses were required for all articles exported from the United States to neutral European countries. On August 30 the Exports Administrative Board gave instructions for the withholding of all licenses to export to Denmark, Norway, Sweden, and the Netherlands. One day later it issued instructions with regard to bunker licenses: (1) Ships destined for Denmark, Norway, Sweden, and the Netherlands should not be granted licenses without the Board's approval, except passenger vessels not carrying cargo. Ships destined for Danish and Dutch colonies should be granted licenses except that the Board must approve applications when the destination was Iceland or the Faroe Islands. (2) Ships destined for South America and flying the Danish, Norwegian, Swedish, Netherland, or Spanish flag, should be granted licenses provided they agreed to return direct to the United States. Cases of ships flying these flags, not destined for South America or not returning direct to the United States, should be referred to the Board. (3) Ships destined for Greece and Spain should be granted licenses for the outward voyage only." The Exports Administrative Board announced on September 29, that clearance would be refused sailing vessels destined to go through the war zone even if the goods on board had already been licensed.8 Licenses would be granted in the future for shipments to European countries, the Board stated, only if the goods were to be shipped on a vessel other than a sailing vessel. The reason for this action was that steamships could navigate the war zone with less danger than slow craft," and sailing ships, if used in safer waters, would to an extent release steam vessels being now used in such waters ". On October 5 the Exports Administrative Board announced that in formulating its policy with regard to granting bunkers to neutral vessels, it was "actuated solely by the desire to prevent commodities from going to border neutrals for export to Germany." In accordance with this policy the Board would not furnish bunkers to a ship bound for a border neutral country and carrying a cargo 'See p. 92. 5 See p. 94. which might benefit the enemy, even though the cargo had originated in another country. While not proposing to prevent trade between the border neutrals and other neutrals, the Board was "in a position to state" that American coal should not be used on a voyage which would result in supplying the enemy with foodstuffs or other commodities. The Board stated that numerous cases had been presented to it of ships touching at a port of the United States en route to a border neutral and carrying a cargo which did not originate in the United States, but which was destined for a border neutral and would undoubtedly accrue to the benefit of the enemy. These cases caused the Board "serious embarrassment ". To avoid it the Board had ruled that a ship en route to non-European neutrals which touched at a port of the United States for bunker coal, should not be allowed coal for the voyage unless it would agree to return to the United States with a cargo which would be approved by the Board or which was destined for a country other than a border neutral. Four days after this statement was issued the Exports Administrative Board authorized instructions for collectors of customs.10 These instructions provided that under the law of June 15, 1917,11 no ship should be given clearance without a license for cargo, bunker fuel, sea stores and ship's stores, to the extent they were subject to license under the proclamation of August 27,12 even though they were not taken on board at a port of the United States. The fact that they had been brought into a harbor of the United States was "sufficient to subject them to the operation of the statute." RULES FOR GRANTING BUNKER LICENSES Rules for the granting of bunker licenses were issued by the War Trade Board on January 19, 1918.18 Under these rules no vessel should be allowed to clear from a port of the United States or its possessions, without having secured a bunker license from the War Trade Board covering all bunker fuel aboard at the time of sailing, and port, sea and ship's stores and supplies. No application should be approved for bunkers for any neutral vessel unless the person controlling it should have filed with the War Trade Board the names of all vessels controlled by him, together with the names of their masters; and unless he should enter into an agreement to comply with the following regulations which if violated by any one of his vessels might involve the refusal of bunkers to all. 10 Document 281. 11 See p. 91. 12 See p. 94. 13 Document 315. 1. No vessel should be chartered to a subject of any of the Central Powers, or to any person not acceptable to the War Trade Board. 2. No vessel should trade with a port of any of the Central Powers, nor should a vessel aid another employed by or for the Central Powers. 3. No vessel should carry a subject of any of the Central Powers without the consent of the Department of State. 4. No vessel should carry a cargo coming from or through or destined for any of the Central Powers. 5. Every vessel proceeding from or to the United States, to or from Denmark, Norway, Sweden, the Netherlands, Iceland, the Faroe Islands, Spain, or to or from any neutral port in the Mediterranean Sea, should call for examination as might be directed by the War Trade Board. 6. No vessel should carry from a port outside the United States to a European port, cargo not previously approved by the War Trade Board or the Inter-Allied Chartering Executive. 7. No vessel should carry cargo from Denmark, Norway, Sweden, the Netherlands, Iceland, the Faroe Islands, Spain, or Switzerland to any ports unless the cargo was accompanied by a certificate of non-enemy origin. 8. No vessel should carry goods consigned "to order ". However, this provision should not apply to goods shipped from the United States or its possessions to countries other than Denmark, Norway, Sweden, the Netherlands, Iceland, the Faroe Islands, Spain, and Switzerland. 9. No vessel should carry coal or mineral oil, including naphtha and gasoline, unless the consignee was approved by the War Trade Board. 10. The master of a vessel must see that no wireless messages were sent to the enemy; that no reports were made of vessels sighted or of weather conditions experienced; and that no wireless messages were sent within two hundred miles of France, Great Britain, Italy, or Portugal, except emergency messages relating to vessels or persons in distress. 11. The services of the master, officers, or any members of the crew of a vessel should be dispensed with at the request of the War Trade Board. 12. No vessel should proceed on a voyage or be chartered without the previous consent of the War Trade Board or Inter-Allied Chartering Executive. 13. No vessel should carry cargo consigned to or shipped by a firm with whom citizens of the United States were prohibited by law from trading. 14. No vessel should carry to or from a European port cargo consigned to or shipped by a firm with whom citizens or subjects of any of the Allied countries were prohibited by law from trading. 15. No vessel should be bought or sold without previous approval of the War Trade Board, Shipping Board, or Inter-Allied Chartering Executive. 16. No vessel should be laid up in port without the approval of the War Trade Board or the Inter-Allied Chartering Executive. 17. Every vessel clearing from a port of the United States should observe all requirements of the Emergency Fleet Corporation, Navy Department, Department of Commerce, and the Bureau of War Risk Insurance of the Treasury Department. 18. All bunkers should be used solely for the vessel receiving them; no portion should be landed in any port or transferred to another vessel. 19. A monthly report should be furnished the War Trade Board showing in detail the movement of all vessels subject to these regulations. 14 Consuls of the United States were instructed on January 30 that every vessel leaving the United States would carry certain bunker forms, a shipper's export declaration, and a manifest of cargo to be discharged at each port. Upon arrival at port, the master of the vessel must deliver these to the consul and give him information regarding the cargo, bunkers, ship's stores and voyage. The master could "proceed to load or discharge only after receiving authority from consul." The consul should report to the War Trade Board deliveries of cargo not in accordance with the shipper's export declaration and also any violation of the terms of the bunker agreement. On March 29 the consuls were sent an instruction 15 to be substituted for the one mentioned above. This instruction differed from the first in that it did not include the statement that the master could "proceed to load or discharge only after receiving authority from consul." Furthermore, it included a new statement that the consul should "avoid interposing objection to or exercising control or supervision over loading, discharging or distribution of cargoes," and be careful to avoid violations of local law. EXAMINATION OF NEUTRAL SHIPS Negotiations took place late in 1917 between representatives of the United States and Great Britain for eliminating the call at Halifax required by Great Britain for ships bound from the United States to northern neutral countries. The War Trade Board informed its London representative on January 10, 1918, that "we have for several weeks been searching all vessels bound for Scandinavia and Holland through our Navy Department; and arrangements are being completed for elimination of calls at Halifax, which elimination we will insist upon".16 On February 14 the Board informed him that an agreement had been reached with British representatives which provided for eliminating the call at Halifax by ships loaded wholly in the United States and bound for the 14 Document 320. 16 Document 341. 10 Document 309. 125055-36-vol. II-10 |