purpose of protecting or indemnifying the Reparation Commission or Germany against claims arising out of the cession of the tankers covered by the award.

PARAGRAPH H.-The Reparation Commission is to settle question of Standard Oil Company's claim if the United States finally ratifies the Peace Treaty and an American representative is duly qualified and acting on the Commission except as otherwise provided in Paragraph I.

PARAGRAPH I.—If the United States has not on July 1, 1920, ratified the Peace Treaty and an American representative is not qualified and acting on the Commission, then the Standard Oil Company's claim shall, at the request of the United States or other interested Governments, be adjudicated by an independent tribunal to be agreed upon between the United States and the several Governments concerned so that all parties interested may be properly heard. The Reparation Commission and the United States pledge themselves to use their best efforts to arrange this tribunal without delay.

PARAGRAPH J.-The Wilhelm A. Riedemann now building in Germany to be completed and to follow fate of other tankers.

PARAGRAPH K.-It is understood that temporary allocation will in no way prejudice claim of beneficial ownership of Standard Oil Company and on the other hand will in no way recognize validity of any such claim.

For the Reparation Commission
DUBOIS

JOHN BRADBURY

PARIS, FRANCE, June 7th, 1920.

For the United States Government
BOYDEN

PARIS, FRANCE, June 7th, 1920

GREAT BRITAIN

RELEASE OF AMERICAN GOODS SEIZED BY GREAT BRITAIN DURING THE WAR

Preliminary Negotiations between the Consul General at London and the British Procurator General-American Proposals of December 13, 1917, July 12, 1918, and August 28, 1919-British Consent to Release in "Proper Cases-American Reservations Regarding the Order in Council of March 11, 1915-Report of the Secretary of State to the President, March 3, 1921 763.72112/3729a: Telegram

The Secretary of State to the Consul General at London (Skinner)

WASHINGTON, May 29, 1917-5 p.m.

Please compile and cable list of cases pending in Prize Court involving American interests and add your opinion as to how they may now be equitably disposed of in view of the fact that the United States has entered the war.

LANSING

763.72112/3729a Suppl.: Telegram

The Secretary of State to the Consul General at London (Skinner) WASHINGTON, June 14, 1917-5 p.m.

Department's May 29, 5 p.m., Prize Court cases.

Include in report cases in hands of Procurator-General under Order in Council March 11, 1915 which have not been presented to Prize Court. Hasten reply as much as possible.

LANSING

763.72112/3896

The Consul General at London (Skinner) to the Secretary of State No. 4321

LONDON, June 15, 1917.
[Received June 28.]

SIR: In reference to the Department's telegram in cipher of May 29th directing me to forward a list of cases pending in the Prize Court, and to suggest how they might be disposed of satisfactorily in view of the altered political situation, I have the honor to state

1For order in council of Mar. 11, 1915, see Foreign Relations, 1915, supp., p. 144.

that I have to-day forwarded a partial reply.2 The Procurator General has promised to give me a practically complete list of pending cases, a good many of which are being dealt with by London law firms, and of which I have little or no knowledge. The Crown's legal advisers are not particularly enthusiastic over the suggestion of a general settlement of the cases upon which they have put a good deal of work for, perhaps, comprehensible reasons, but I strongly suspect that if the matter becomes one of formal negociation we shall have no difficulty in coming to some kind of understanding.

I have suggested in my reply, which has now gone forward, that all westbound goods owned by American firms and held under the Order in Council of March 11, 1915, be released, and that in the large number of cases in which such goods already have been released against deposits, the deposits be returned. I have further suggested that eastbound post parcels should be returned to senders in the United States unless enemy ownership is already admitted, and that if there exist cases of doubtful ownership such eastbound parcels shall be returned to the Department of State to be dealt with in that Department at its discretion.

As to Prize Court cases which have been prepared and are actually ready for trial, I venture to propose the appointment of a committee of three upon which there should be at least one American to decide whether the proceedings shall continue or be quashed, and further to deal with any other questions arising out of Prize Court proceedings under any head.

From an informal conversation at the Procurator General's office I gather that his Department will object to any general scheme of effecting releases unless each release shall carry with it a guarantee of immunity from any claim for damages.

I have [etc.]

300.115/13263

ROBERT P. SKINNER

The Consul General at London (Skinner) to the Secretary of State No. 4753

LONDON, September 11, 1917.
[Received September 28.]

SIR: I have the honor, with further reference to my dispatch No. 4443, dated July 10, 1917, File No. 350,3 on the subject of the release of certain parcels of needles upon deposit of the invoice value of the merchandise in the British Prize Court, to report that this office has had some correspondence with H.M. Procurator General on the

The partial reply was forwarded in a telegram dated June 14 (file no. 763.72112/3800).

Not printed.

subject of certain conditions sought to be imposed upon such releases.

The question first arose in a letter from H.M. Procurator General dated June 12, 1917, reading in part as follows:

"In those cases in which the packets in the s.s. United States have already been dealt with by Order of the Prize Court, it would appear that the most convenient way of meeting the requirements of the American firms concerned would be to arrange with the Admiralty Marshal for the usual conditions against re-export to be waived, and to leave the American firms concerned to purchase the goods when offered for sale under the Order of the Court. In other cases in which the decree of the Court has already been made, it would be a condition of release that the invoice value of the goods (converted into sterling at the pre-war rate of exchange) should be deposited in the Prize Court in full settlement of all claims."

The following communication dated August 24, on the same subject, was next received by this office:

"I am directed by H.M. Procurator General to refer to the letters from this Department of the 12th and 26th June, and to ask whether from the former letter you have understood that in cases in which needles are released upon the deposit of the Invoice value in Court, such an arrangement is to be regarded as in final settlement of all claims by the American firms making the claim.

"This condition has not been specifically stated in every letter, in which you have been informed that the arrangement is practicable, although it was intended that it should be applied, and to avoid any misunderstanding he will be glad to know what view you have taken with regard to this point."

Under date of August 30, 1917, I replied as follows:

"I have the honor to acknowledge the receipt of your letter of August 27 [24?], in which you inquire whether, according to my understanding, in cases in which needles are released upon deposit of the invoice value in Court the arrangement is to be regarded as in final settlement of all claims by the American consignee and to state in reply that the answer is in the negative.

"Permit me to draw your attention again to the note of the British Government dated April 24, 1916, setting forth that they are prepared to concede that waivers of the right to put forward claims for compensation, when made a condition of release, would be a hardship, and further, that no attempt will be made to enforce such as have already been given."

H.M. Procurator General, under date of September 1st. replied as follows:

"I am directed by H.M. Procurator General to acknowledge receipt of your letter of the 30th ult., and to say that he does not agree that the arrangements which have been made to facilitate the release

* Foreign Relations, 1916, supp., p. 368.

126794-vol. II-36-44

for transmission to the United States of America of parcels of Needles detained from the mails, come within the terms of the Note from H.M. Government of the 24th April 1916, to which you called attention, inasmuch as in all these cases the Crown is clearly entitled to proceed in the Prize Court and obtain an order for sale and detention of the proceeds.

"The present arrangements are a special concession on the part of H.M. Government to meet what is understood to be a pressing need in the United States.

"So far as concerns the parcels which have only been dealt with by the Prize Court, the matter perhaps hardly arises, as effect is given to the arrangement by consent being given to an Order for sale of the goods to the American firms concerned at the price which is agreed.

"With regard, however, to those parcels which have not already been dealt with by the Prize Court, it is considered that the compromise should be accepted in settlement of all claims, as indeed has been expressly stipulated and agreed in several of the cases. Perhaps, therefore, you will be kind enough to review the matter in the light of these observations, and favour me with any further remarks which you may have to make."

In connection with the statement in the fourth paragraph of the above letter" it is considered that the compromise should be accepted in settlement of all claims, as indeed has been expressly stipulated and agreed in several of the cases," I may say that H.M. Procurator General evidently refers to certain cases which have been settled direct with the agents of the American claimants without intervention from this office, and as an example of such a settlement I beg to bring to your attention the following copy of a letter from Thomas Cooper and Company as Agents for the American claimants, Hays Kaufmann and Lindheim, dated August 28, 1917:

"We have received a letter from Messrs. Hays Kaufmann & Lindheim incorporating a telegram from yourself reading as follows:'Authorities prepared to release all these United States Needles on deposit value except items already sold at Court's orders.'

We should be much obliged to you if you would be good enough to inform us whether the authorities have intimated to you that they are prepared to release these goods without any conditions as to the abandonment of any claim for the return of the amount of deposit or in respect of any claim for losses or damages, as we have been in communication with H.M. Procurator General with a view to obtaining the release of several parcel post shipments of needles and he has written to us intimating that he is prepared to consent to the release of the goods upon deposit in the Prize Court of the invoice value of the goods converted at pre-war rate of exchange,' but stipulating that such releases are to be in full and final settlement of all claims by the American claimants, either for the return of the money deposited or compensation for detention of the parcels.' We have written to the Procurator General asking him whether the terms which he now stipulates for are different to those which the