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

File No. 825.6374/64

The Consul General at London ( Skinner) to the Secretary of State

[Telegram]

London, December 10, 1917.
[Received December 11, 7.30 a.m.]

Following memorandum of agreement accepted by all members Nitrate Executive subject as to munitions to Department’s approval. Text scrutinized and approved by the committees and Crosby except paragraph 11 completed Saturday and which is to be interpreted in accordance with my telegram of 8th. Executive hope Department will immediately authorize me to sign agreement on behalf of United States. Agreement follows:

1. There shall be constituted forthwith and set up in London a joint Executive (hereinafter referred to as the Nitrate of Soda Executive) for the purpose of controlling the purchase and supply of nitrate of soda (in Chile) for the Governments represented on the said Executive, of coordinating the [action] of these Governments in relation thereto, of allocating the available supplies of nitrate of soda in agreed proportions between the said Governments and of disposing to governments not represented on the said Executive, including neutrals, such quantities as may be deemed to be desirable by the said Executive.

2. The Nitrate of Soda Executive shall consist of an equal number of representatives not exceeding two of the British, French, Italian, Russian, United States Governments, respectively, and subject to the authority of the respective Governments, shall have full power to act on behalf of their Governments.¹

3. Subject in the case of each Government to the limits and conditions to the financial resources placed at the disposal of the members to the Nitrate of Soda Executive by such Government, the said Executive shall have full power to meet the requirements of the Governments represented on said Executive by the purchase and allocation amongst [them] of the nitrate of soda available and to make arrangements for its transport with the competent departments of the respective Governments.

4. No sale shall be made by the Nitrate of Soda, Executive to neutral countries which is contrary to the blockade policy pursued by the Governments represented thereon.

5. The Nitrate of Soda Executive shall, as soon as possible, draw up an approximate estimate of the supplies of nitrate of soda as required by each of the Governments parties hereto and approved by the said Executive. Such estimate shall show the requirements over a specified period of [time] and the dates on which such supplies are required, and shall also distinguish between the various uses to which the required material is to be put. The proportion which the requirements of each Government bear to the sum of the requirements of all the Governments shall, for the purpose of this agreement, be termed the ascertained proportion for each country.

6. The total purchases for all requirements shall be allocated as nearly as practicable on the basis of the ascertained proportions respectively, provided that the requirements for the manufacture of explosives shall have preference over all other requirements in proportion to the respective requirements for the purpose of the parties hereto and of other Governments at war with Germany to whom allotments shall have been made.

7. The ascertained proportion of any party may be reduced by mutual consent at its option and may from time to time be increased, having regard to the total stocks of nitrate of soda held by the respective Governments concerned and in accordance with the relative urgency of their needs and with the amount of tonnage at their disposal.

8. The Nitrate of Soda Executive shall allocate purchases in an equitable manner in accordance with the principles laid down in the foregoing articles.

9. In the event of any of the Governments concerned not desiring or being unable to avail themselves of the share of any of the purchases allocated to them the Executive may, with the consent of each of the other Governments, allocate the supplies so renounced amongst the other Governments in an equitable manner.

10. Subject to any general arrangements made between the competent departments of the Governments concerned, the transportation of and paying for the supplies of nitrate for each of the said Governments shall be undertaken by that Government.

11. The Nitrate Executive shall keep clearly in view the advantage of pooling all purchases and shall arrange for all buying for the Governments represented on the said Executive to be carried out under the direction and control of a director of purchases who will be duly appointed by the Executive and will act under their instructions. The Governments concerned will exercise such control over their respective nationals as will prevent them buying through any channel except through their representatives on the Executive.

12. The Nitrate of Soda Executive shall be furnished by the representative of each Government with full information as to its requirements and consumption of nitrate of soda, as to the stocks in their respective countries, and with any other information necessary for the performance of their functions.

13. The [expenses] of the Nitrate of Soda Executive shall be provisionally borne by the parties hereto in proportion to the respective allocations of nitrate of soda but quarterly adjustments shall be made so that the expenses shall be divided in proportion to the actual purchases by the respective parties. In cases of sales to or purchases for others than parties hereto an addition to the price charged shall be made, to cover expenses.

14. Each of the Governments represented on the Executive shall make its own arrangements as to final purchases allocated to it by the Executive, it being clearly understood that both allocation and financial arrangements shall precede purchases and that all actual contracts are signed on behalf of that Government in whose favor the contract is made.

Skinner

1. In his telegram of Dec. 11, 11 a.m., the Consul General reported the following additional clause: “It cannot be expected that each Government will be represented by two delegates but that each active delegate may have a substitute to attend meetings when their principal delegate for any reason is prevented from attending, each Government represented having one vote in the Executive.” (File No. 825.6374/65.)