courteous and friendly terms to the action of the Captain of the British
steamer Lusitania in raising the flag of the United States of America
when approaching British waters, and says that the Government of the
United States feels certain anxiety in considering the possibility of
any general use of the flag of the United States by British vessels
traversing those waters, since the effect of such a policy might be to
bring about a menace to the lives and vessels of United States citizens.

It was understood that the German Government announced their intention
of sinking British merchant vessels at sight by torpedoes, without
giving any opportunity of making any provision for the saving of the
lives of non-combatant crews and passengers. It was in consequence of
this threat that the Lusitania raised the United States flag on her
inward voyage.

On her subsequent outward voyage a request was made by United States
passengers, who were embarking on board of her, that the United States
flag should be hoisted presumably to insure their safety. Meanwhile, the
memorandum from your Excellency had been received. His Majesty's
Government did not give any advice to the company as to how to meet this
request, and it understood that the Lusitania left Liverpool under the
British flag.

It seems unnecessary to say more as regards the Lusitania in particular.

In regard to the use of foreign flags by merchant vessels, the British
Merchant Shipping act makes it clear that the use of the British flag by
foreign merchant vessels is permitted in time of war for the purpose of
escaping capture. It is believed that in the case of some other nations
there is similar recognition of the same practice with regard to their