f international law, which is confirmed in
Article IX. of the two aforesaid Conventions, may not hamper Germany's
military power with regard to contraband through or out of its
territory.

"The declaration of neutrality of the United States takes this
view fully into account since the furnishing of contraband of war
to all combatants is likewise permitted: 'All persons may lawfully
and without restriction by reason of the aforesaid state of war,
manufacture and sell within the United States, arms and ammunitions
of war and other articles ordinarily known as contraband of war.'

"This principle has been accepted in the widest sense by the public
declaration of the American State Department of the 15th October,
1914, with regard to neutrality and contraband.

"Nevertheless different port authorities in the United States have
refused to supply the necessary fuel to merchant vessels in which
it might be carried to German ships of war on the high seas or in
other neutral ports. According to the principles of international
law already mentioned, there is no need for a neutral State to
prevent the transport of fuel in this way; such a State then ought
not to hold up merchant ships loaded in this way nor interfere with
their freedom of movement, once it has countenanced the supply
of contraband to the enemy. The only case in which it would be the
duty of such a nation to hamper the movements of these ships in
this one-sided fashion would be one in which such traffic might
be turning the ports into German naval bases. This might perhaps
have been the case if German coal depots had been situated at these
ports, or if the ships used them for a regular calling port on
their way to the German naval forces. It is, however, unnecessary
to urge that the occasional sailing of a merchant ship with coal
for German ships of war does not make a port into a base for German
naval enterprises out of keeping with neutrality.

"Our enemies are obtaining contraband of war from the United States,
in particular rifles, to the value of many milliards of marks; this
is within their rights. But toleration becomes serious injustice
if the United States refuses to allow the occasional provisioning of
our ships of war from her ports. This would mean unequal treatment
of the combatants and a recognized rule of neutrality would be
infringed to our disadvantages."

This memorandum played an important part in the subsequent negotiations,
because Mr.