Papers Relating to the Foreign Relations of the United States, 1917, Supplement 2, The World War, Volume I

File No. 811.50/5

The Ambassador in Great Britain (Page) to the Secretary of State

[Telegram]

London, April 19, 1917, 1 p.m.
[Received 2.30 p.m.]

6037. Hoover, with my approval, has been for some days in intimate discussion with food departments of Allied Governments regarding preparatory steps of organization for proper cooperation with them in food questions. He has presented following proposal:

It appears that first step towards better cooperation is early creation of international board with somewhat following functions:

(1) Creation of organs for consolidation of purchases of principal staples, this probably most easily accomplished by elaboration and strengthening of already established efficient organs such as Wheat Commission¹ whose operations on behalf of whole of consuming Allies would be practically complete if supply of army were added to functions. Such organs already partially exist for some staples and need creation for others. Such organization should produce as little disturbance in regular commercial activity as possible.

(2) The determination of total quantities available from different quarters and their allocation among Allies. Some system of export permits will probably need creation among all Allied exporters.

(3) Coordination of supplies so as to get best results from geographic distribution and economy and regularity in transportation.

(4) Determination of future needs in order to stimulate production in all quarters on lines which will remedy deficiencies and effect ease of transport.

(5) Allocation of surplus imports beyond Allied needs among neutrals in such manner as will through appropriate agencies secure equivalent return in shipping or other commodities from each neutral supplied.

(6) To organize publicity upon needs of importing Allies with view to stimulating effort from the exporting Allies.

(7) To correlate food transport to shipping necessities.

(8) From strictly American point of view centralization of buying of any particular staple in one set of hands will promote regulation of prices, and a knowledge of amount foodstuffs required by Allies will promote any action which may be taken by American Government with view to control [of] prices, stimulation of production, reduction of consumption of special staples or the substitution of other American products so as to free such staples for export.

I believe that recent large rise in prices has been due largely to rivalry of Allied organs in American markets. For stimulation of American production, it is desirable that some guidance should be given to American people as to character of cereals to plant at the present moment. Impossible to say what measure of price control or restriction on consumption may be undertaken in United States but whether any such measures are undertaken or not it appears that erection of such organism as outlined above is essential before any adequate cooperation can be entered into by our country.

Hoover informs me that it is not intention that above inter-Allied board should have any executive functions over internal food questions of any Allied country but merely to coordinate inter-Allied food questions and to establish the sub-organizations for purchase and transport of oversea supplies so as to eliminate present competition amongst Allies. This matter was discussed this morning between Hoover and British War Cabinet who are in entire agreement and only await official approval of United States Government to proceed in matter. The departments in French and Italian Governments have expressed entire approval of proposal as of utmost importance. The British Government will secure the approval of the other Governments if you adopt it. It is desirable that I receive an indication of your approval without awaiting Hoover’s arrival in Washington. The selection of American delegate to this board should be left till his arrival. It is both my own and Hoover’s impression that similar action should be taken regarding shipping but that such proposal should await him as it is of more intricate character.

Page

1. The Royal Commission on Wheat Supplies, commonly called the Wheat Commission, was created Oct. 10, 1916. It was the actual executive organ of the Wheat Executive, on which Great Britain, France, and Italy were represented, formed Nov. 29, 1916. Its agency in the United States was the Wheat Export Co., Inc.