with the benevolent feelings of the American countries, and that hence Ecuador accepted the invitation of Argentina with the same object. File No. 641.326/8 The British Embassy to the Department of State MEMORANDUM The British Embassy presents its compliments to the Department of State, and with reference to its memorandum of July 2,1 has the honour to inform the Department that, in order to ensure the employment of the German vessels in Brazil in trades useful to the general conduct of the war, His Majesty's Government propose to notify the Brazilian Government that on condition one-half of this tonnage is chartered to the Inter-Allied Chartering Bureau for distribution among the Allies, they are prepared to sanction the importation into the United Kingdom of a proportion of the 1916 imports of Brazilian coffee; such proportion would in no case exceed 50 per cent and no stipulation would be made as to the nationality of the vessels carrying the coffee to the United Kingdom. The Embassy would be glad to learn whether, in view of the importance of securing the use of these vessels in such a way as to be of the greatest service to the Allies, the United States Government perceive any objection to the above proposal. WASHINGTON, August 19, 1917. [Received August 21.] File No. 862.85/124 The Minister in Cuba (Gonzales) to the Secretary of State [Telegram] HABANA, August 21, 1917, 4 p. m. By presidential decree signed to-day the four German steamships Bavaria, Olivant, Adelheid, and Constantia seized as prizes of war, and to prevent their destruction in Cuban waters by their crews, were transferred to the United States to be utilized in bringing to a prompt and successful end the war against the Imperial Government of Germany. I will to-morrow morning take charge of these vessels for the United States Shipping Board and will have them guarded. The Constantia is in Cienfuegos, the others here. Smallest German vessel the Kydonia is held by the Government of Cuba as a transport for the army supplies. No charge made by the Cuban 1 Ante, p. 304. Government for these ships; they are simply turned over to the United States. GONZALES File No. 832.85/16 The Ambassador in Brazil (Morgan) to the Secretary of State [Telegram] RIO DE JANEIRO, August 24, 1917, 2 p. m. [Received August 25, 4.20 a. m.] Referring to the Embassy's telegram of August 23, 8 p. m.1 Brazilian Minister for Foreign Affairs stated to me this morning that the Brazilian steamship company, Commercio e Navegação, is prepared, with the permission of the Brazilian Government, to charter to the French Government eight or ten of their vessels averaging 3,000 tons each. The purchase by France of 2,000,000 sacks of coffee, and a promise that the Allies will protect Brazil from loss on the coffee belonging to the state of São Paulo which has been seized in Germany, are the compensations which the Brazilian Government will receive. That Government has decided to retain the former German ships and none of them is involved in the transaction. The acquisition of France would only include a portion of the fleet of the Commercio e Navegação. Through direct negotiations. with that company and with cooperation of the French Government it might be able to secure some at least, of the six steamers in which the Navy Department is interested. File No. 763.72/6643 MORGAN The Ambassador in Argentina (Stimson) to the Secretary of State [Telegram] BUENOS AIRES, August 29, 1917, 12 noon. My telegram August 28, 7 p. m.1 German note of August 26 is considered acceptable, although couched in abstract terms, because a condition limiting German promise to Argentine vessels not traversing German war zones, put forward by German Minister here, was peremptorily refused in the second Argentine note, August 17. Documentation long, has been cabled in full to Naón.2 STIMSON 1 Not printed. 2 Argentine Ambassador at Washington. File No. 832.85/16 The Secretary of State to the Ambassador in Brazil (Morgan) [Telegram] WASHINGTON, August 29, 1917, 5 p. m. Your August 14, noon, August 22, 4 p. m., August 23, 8 p. m., and August 24, 2 p. m.1 Utmost importance that vessels be acquired by United States at once from every source for successful prosecution war. A ship now ready for use and able to get into trade worth several vessels of same character later on. Department understands that Brazil intends to retain for future use in her own trade the 33 interned German vessels which are not now utilized. If, however, owing to urgency present situation, Brazil should consider change in her policy to retain these ships, you are instructed discreetly to inquire of the Brazilian Government and cable Department, whether that Government would enter into agreement with United States Government whereby some or all of these vessels would be turned over to United States for repair and use upon assurance being given that the same number of as good or better bottoms will be laid down now and turned over to Brazil at the end of the war, or if the Government of Brazil prefers the United States will pay the fair market price for these ships upon delivery now and charge the fair market price ruling at time of completion and delivery of those constructed for Brazil and under either arrangement a sufficient number of vessels shall be placed in the United States-Brazilian trade to supply present needs of Brazil. This would insure protection to present and future foreign and domestic trade of Brazil and help to satisfy the urgent and increasing demands on United States Government at present time. Besides being very much interested in these interned German vessels, the United States desires to acquire ships of the Brazilian merchant marine especially of larger tonnage. You are instructed to cable Department as soon as possible a definite and complete statement of Brazil's terms and conditions relating to acquisition or use by the United States of the ships of Brazil's merchant marine which may now be in market in order to furnish Shipping Board with data necessary for decision and formulation of proposition from United States Government. LANSING 'Telegrams of August 22 and 23 not printed. File No. 832.85/21 The British Embassy to the Department of State MEMORANDUM The British Embassy have the honour, with reference to their memorandum of August 19, to inform the Department of State that, according to a telegram from His Majesty's Minister at Rio de Janeiro, the French Government offered to make large purchases of Brazilian coffee on condition that the Brazilian Government sold to France or chartered to the United States the German vessels now in Brazilian ports, for the conveyance of coffee and American troops to France. The Brazilian Minister for Foreign Affairs subsequently informed che British Minister that it had been decided not to accept the French offer on the ground that the Government hold the ships in trust for Germany and must return them after the war. They desired, however, to recognize the solidarity of their interests with those of the Allies and, for this purpose, they proposed to establish a line of steamers to Europe which would comprise the German ships and the ships of the Brazilian Lloyd. As regards the ships of the Commercial and Navigation Company, they proposed to sell or charter ten to France and three to the United States. These ships only amount to about 25,000 tons. The British Government attach great importance to these German vessels being placed in service in the Allied interest as soon as possible, but the Embassy are instructed to ascertain the views of the United States Government as to the attitude to be adopted in the matter of the recognition of the transfer of the vessels to the Brazilian flag, seeing that the Brazilian Government apparently intend to return them to Germany immediately on the conclusion of hostilities and may even intend to hold the earnings in trust for Germany. WASHINGTON, September 3, 1917. [Received September 4.] File No. 763.72/6746 The Minister in Peru (McMillin) to the Secretary of State [Telegram] LIMA, September 6, 1917, 2 p. m. [Received 8 p. m.] Interpellated last night by Chamber of Deputies, Minister for Foreign Affairs Tudela made following response: The Minister for Foreign Affairs, approving the declarations contained in the last message to Congress of the President of the Repub 114203-31-21 lic and confirming the ideas which he has emitted before the House of Deputies, declares that the external policy of the Peruvian Government has for an object Pan American solidarity based on the principles of international justice which the President of the United States has proclaimed. F. Tudela If Germany refuses satisfaction for sinking Lorton, breaking relations probable. If she abandons prize-court contention and pays, break prevented at least temporarily. MCMILLIN Publication, September 8, of the Recommendation by Luxburg, German Chargé in Argentina, that Ships be "Spurlos Versenkt "; Handing of Passports to Luxburg-Severance of Relations with Germany by the Tinoco Government in Costa Rica. September 22-Negotiations Relating to the Revocation of Uruguay's Neutrality, the Conclusion of Arbitration Treaties between Uruguay and the Allied Powers, and the Disposition of German Ships in Uruguayan Ports File No. 862.20235/32a The Secretary of State to the Ambassador in Argentina (Stimson) [Telegram] WASHINGTON, September 7, 1917, 5 p. m. Following statement by me which is furnished to you for your information and use in event of official inquiry, but not to be given to press by you, will be issued to press here at 2 p. m., September 8: The Department has secured certain telegrams from Count Luxburg, German Chargé d'Affaires at Buenos Aires, to the Foreign Office at Berlin, which, I regret to say, were dispatched from Buenos Aires by the Swedish Legation as their own official messages, addressed to the Stockholm Foreign Office. The following are English translations of the German text: May 19, 1917. No. 32. This Government has now released German and Austrian ships in which hitherto a guard had been placed. In consequence of the settlement of the Monte (Protegido) case, there has been a great change in public feeling. Government will in future only clear Argentine ships as far as Las Palmas. I beg that the small steamers Oran and Guazú, 31st January (? meaning which sailed 31st), 300 tons, which are (now) nearing Bordeaux with a view to change the flag, may be spared if possible, or else sunk without a trace being left (spurlos versenkt). LUXBURG July 3, 1917. No. 59. I learn from a reliable source that the Acting Minister for Foreign Affairs, who is a notorious ass and anglophil, declared in a secret session of the Senate that Argentina would demand from Berlin a promise not to sink more Argentine ships. If not agreed to, relations would be broken off. I recommend refusal and, if necessary, calling in the mediation of Spain, LUXBURG |