File No. 763.72/2774
In this statement Mr. Clémentel
comments upon the recommendations made by the conference and illustrates
their purpose by concrete examples. His remarks on the effect of the
future economic policy of the Allies upon neutral, countries were as
follows:
The Minister’s remarks throw further light on the intentions of the
Allies, and on the objects which they desire to obtain during the war
and after.
As the Department is already aware, the sessions during the four days the
conference met were held in secret behind closed doors, and it has been
extremely difficult to obtain any accurate information as to the nature
of the proceedings other than what has been made public.
From what has been learned from various sources, it is believed that
whereas the conference was able to adopt the recommendations to the
various governments represented, as contained in the announcement above
referred to, nevertheless, the results were disappointing to the more
radical members of the conference who were particularly desirous of
carrying the commercial isolation of the Central powers to a further
degree than is possible even should the recommendations be embodied into
law by the legislatures of the various interested powers.
It is understood that Mr. Hughes, the Premier of
Australia, one of the British delegates to this conference, was the
leader of the more radical element, while his views were opposed by
Russia and Italy who were reluctant to accept the somewhat drastic
proposals of their British colleagues. The conference undoubtedly had
the result, also, of bringing the Allies to a better mutual
understanding of their commercial interests.
The French text of the official announcement was forwarded in my No. 3311
of the 22d instant.1 It contains resolutions which in reality are
recommendations for the adoption of legislation tending to influence the
commerce of the enemy powers. The unequivocal acceptance by the
legislatures of the several powers would inaugurate an economic policy
of far-reaching importance, but it remains to be seen whether it is
possible for the conflicting commercial interests of the various Allied
countries to be reconciled by identical laws contemplated by these
resolutions.
It has been said that the conference reached an agreement providing a
plan whereby the Allies’ financial indebtedness might be “pooled”. I
mention this with full reservations as to the accuracy of the report
which I am unable to substantiate at the present writing.
[Enclosure—Translation]
Statement to the press by the French Minister of
Commerce (Clémentel), published
June 22, 1916
Policy of the Allies
The measures adopted unanimously by the conference of the Allied
Governments have a higher purpose than the simple desire of economic
expansion.
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Together with the products of our merchants and of our manufacturers,
it is the conscience of free peoples which will be to-morrow spread
through the world.
We intend to conduct this economic struggle in the French manner, to
organize the work of the people according to their individual
character, and not in the German manner by enslaving them.
Our enemies continue to forge weapons of oppression. The syndicate
for dyestuffs has just made a close grouping of factories,
representing a value of more than a milliard, about the Badische
Anilin; their avowed purpose is to keep after the war the supremacy,
thanks to which the Germans furnished up to the present time about
87 per cent of the world’s consumption of dyestuffs, and by reason
of which we have had to extract from the earth new products for the
intensive production of melinite which is necessary to us.
Dumping is the favorite arm of the Germans for the conquest of
commercial supremacy. It is a combination of measures: direct or
indirect export bounties, internal prices higher than those for
export, etc., the object of which is to ruin foreign industrial
competition. One must not have any illusions; the cheapness created
in a country by dumping is only ephemeral; it prepares the way for
costly ransoms. Wherever German commerce installs itself, it is not
only a tribute which it levies, it is an occupation which it
prepares. The work of peace masks the work of war.
This is not all; from now on the German effort to take in hand the
control of certain raw products, especially of certain metals, is
commencing.
Against all these measures, the Conference of Paris has made its
dispositions: if we were surprised by war, we do not intend to be
surprised by peace. The Allies are economically the stronger. They
represent a population of nearly 400 millions inhabitants and they
control the major part of the raw materials: the minerals of nickel
and platinum, of aluminium (bauxite) are entirely in the hands of
the Allies; manganese to the proportion of 84 per cent. For hemp the
production of the Allies is 4½ times greater than that of the
Germans; for flax, the Allies control ⅘ of the world production; for
raw wool, their supply is 11 times greater than that of the
adversaries; for silk, 8 times greater; they have the monopoly of
jute, and if the neutrals share the production of cotton in a large
measure with the Allies, their adversaries have none at all.
The economic superiority of the Allies is evident. To insure it, it
never was for a moment a question at the conference of adopting a
collective customs policy; each Ally will preserve its full
independence. Each product will be the object of separate
negotiations between the states interested in it. Combinations can
be varied infinitely.
Another principle of the Allied Governments, in the war of legitimate
economic defense which they are undertaking, is that they attack no
one. The neutrals have nothing to fear: we are working for their
liberation. The destruction of the German economic hegemony means
the suppression of a peril which menaces them.
In augmenting the productive power of the Allied countries, we render
them more capable than in the past of checkmating attempts at
oppression which a nation in the future might again be guilty of;
thus we strive to insure peace.
We will succeed because we have taken from our adversaries their only
weapon which was superior to our own: the spirit of discipline. But
we will apply it to works of liberty.
The Economic Restoration of Invaded
Countries
The manner in which the Central Empires have conducted the war has
been followed by immense damage to the economic order. They not only
systematically destroyed all the factories which were within range
of their shells but, in the invaded regions which they administered,
their work was also a work of destruction. Factories which
manufactured products necessary for war were forced to work
intensively for the needs of Germany. Those manufacturing products
which might compete with those of the German industry have been
completely pillaged. Not only was the raw material removed, but the
machinery was knocked down and carried off to Germany. In others, no
belts remain for the transmission, and the copper in great measure
has been carried off. Finally the raw material in stock at the
factories has taken the route to Germany.
These damages do not weigh upon all the Allies; all have, none the
less, declared their solidarity in the reparation which is due. This
solidarity
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will translate
itself into precise facts; for example, England will furnish us the
material of which we are in need for our textile industry before
delivering it to others. Our policy is a policy of realities. The
Central Empires must restore that which they have taken.
The economic accord realized by the Allies is already in itself a
victory.
The Suppression of the Most-Favored-Nation
Clause
Every one knows how Article 11 of the treaty of Frankfort, in German
hands, thanks to the specializations which have permitted them to
escape whenever they were hampered, has constituted a powerful
economic weapon. The same clause may not be reproduced. The
unanimous accord between the Allies on this point, even with Russia
and Italy, where the Germans hoped to maintain their privileged
position, shows to what degree the peoples are desirous to be
liberated from the economic domination which weighed upon them.
This exclusion of Germany must have for a corollary the creation of
new commercial channels for the products which our Allies furnished
her with. Italy produces annually 250 to 300 millions’ worth of
vegetables, fruits, and other perishable products: if the German
outlet is in part suppressed for these, reduced shipping tariffs
should allow them to appear on the markets of the Allies. Moreover
Germany, after the long constraint which she has undérgone, will
probably hasten to open her doors without conditions to food
products.
Russia can find for her grain other outlets than the feeding of
Germany: industrial alcohol offers her an unlimited field of
utility. War has developed machinery to such an extent that gasoline
will become scarce: in default of gasoline, Russia will send us
necessary alcohol for our motorculture, for our aeroplanes, and for
our automobiles.
Preservation of Natural Resources
The free disposition of raw material is an essential factor in the
economic strength of a nation. Germany was mistress of foreign
minerals which she converted on her territory. This was the case for
zinc of Australia, bauxite of Provence, asbestos of Russia and
Scotland. The Allies are to-day in agreement not to leave any longer
to others these raw materials essential to the life of a nation. Mr.
Hughes, the Prime Minister of Australia,
has assured me that not one gram of zinc would leave Australia for
Germany, even if the latter should in the future ask for quantities
double to those which she has been buying before.
Defense Against Dumping
The Allies have been studying measures to take to prevent their
industries from becoming victims of commercial methods employed by
the Germanic Empires, and notably that of dumping. They have agreed
to submit during a period which they will determine, merchandise
originating from enemy countries to prohibitions or to a special
system which would permit them to combat efficaciously every attempt
at dumping. This agreement is the more necessary as from now on
Germany has collected on its territory considerable stocks of
merchandise manufactured in a large measure from raw material
originating from the invaded territory. It is inadmissible that on
the day after the war the Germanic Empires may improve their
exchange by selling to the Allies merchandise produced from their
own raw material.
Industries or Professions Interesting the
Economic Defense
The Allies likewise wish to prevent the infiltration of enemy
nationals in their economic life. Certain professions, such as those
of banker [and] stockjobber, exercised by the Germans or the
Austro-Hungarians, permitted them to intervene in our financial
organization. The agencies for commercial information established in
France gave to our enemies the possibility of being au courant of the commercial and industrial
situation of numerous enterprises, of the state of their credit, of
their needs in raw material and material. A clever organization
permitted these agencies to constitute a redoubtable commercial
espionage.
In another order of ideas, the agencies for land and maritime
transportation, founded by enemy subjects, had succeeded in draining
in prance, for the profit of foreign companies, of a large part of
the exterior freights. The Allies have agreed to take all useful
measures to prevent a repetition of this in the future.
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Permanent Measures of Mutual Aid and
Collaboration of the Allies
For the period which will follow the end of the war, the Allies have
anticipated a series of measures destined to complete those which
precede. In particular, the Allies are in agreement to distribute
amongst each other, in drawing upon their respective resources, all
that may be necessary to the needs of their industries.
They will thus sensibly reduce the purchases which they made before
in enemy countries. To exploit their natural riches they will
mutually concede help as extended as possible, either in the
financial order or in scientific and technical investigations, or in
the improvement of transportation facilities.
In short, they will efficaciously protect themselves by an ensemble of measures taken by the Allies as
regards indications of origin, patents, protection of factory and
commercial trade-marks. They will by this means prevent the often
unfair competition of which they were the victims on the part of
nationals of the enemy states.
The ensemble of these dispositions, concludes
the Minister, forms a complete program of economic action of which
the Allies will undertake the realization without delay.
