[50]

[Footnote 49: For. Rel., 1900, p. 566; Choate to Salisbury, Jan. 13,
1900.]

[Footnote 50: For. Rel., 1900, p. 578; Choate to Salisbury, Jan. 29,
1900.]

The argument was presented that the British Government had seized flour
shipped to buyers at Delagoa Bay and had prevented it from reaching that
point in time to meet a good market. Consequently, in view of the fact
that it was not sold for any purposes hostile to Great Britain, it was
urged that the latter should not be allowed to consider herself relieved
of any responsibility for indemnity or direct loss assumed by the
shippers, or for any indirect loss for which the shippers might have to
compensate the buyers on account of the diversion and detention. It was
the opinion of the United States that the mere release of the flour to
qualified owners did not meet the obligation in the case because the
owners could not possibly take the delivery of the flour owing to the
obstacles of war at the points where the goods lay. Even if they could
do so they would naturally suffer considerable loss by the condition of
the market and by any diminution in value that might have occurred to
the flour through climatic deterioration.

The American State Department, therefore, suggested as the only
equitable plan apparent under the circumstances that Great Britain buy
the flour and other innocent goods at their invoice price and pay over
the proceeds of the purchases to those persons who could prove a just
claim for its value. An additional sum was also asked as "reasonable
compensation" for loss of market and other losses that might have been
suffered by American interests.[51] In other words, the English
Government should use the flour, pay the costs and indemnify the owners
reasonably, since the latter were entirely innocent and had depended
upon the usual rights and immunities of neutral shippers in time of war.
The fact was pointed out that the situation was causing an uncertainty
and hesitancy in business circles which was detrimental to all American
interests. Although a number of the consignments were being delivered at
Delagoa Bay, presumably by English ships, it was alleged that the
seizures and the unforeseen attitude of Great Britain had compelled all
later shipments to go by way of Hamburg or Bordeaux when seeking the
ports of South Africa in the way of ordinary neutral commerce in order
to avoid using British bottoms as a means of transportation. Many of the
d