Papers Relating to the Foreign Relations of the United States, 1918, Supplement 1, The World War, Volume II

War Trade Board Files: American-Norwegian Agreement, Vol. II

The Norwegian Minister on Special Mission ( Nansen ) to the Chairman of the War Trade Board ( McCormick )

Washington , February 2, 1918 .

Sir: My Government have requested me to communicate to you the following reply to the War Trade Board’s note of December 19 last:¹

The Norwegian Government have considered the proposal contained in the War Trade Board’s note of December 19. They fully agree in the interpretation of the present negotiations as a free exchange of views as to what would constitute reasonable concessions which the United States of America and their associates can expect from Norway in exchange for those commodities which Norway wishes to obtain from them. The Norwegian Government entertain the confident hope that with such an understanding from both sides an early and for both parties satisfactory agreement may be reached. There is, however, one circumstance which the Norwegian Government must consider in carrying on these negotiations but to which the Government of the United States may from natural reasons not so readily attach the same weight, and that is the consideration due to Norway’s position as a neutral state and to the continued preservation of her neutrality during the present World War. The Norwegian Government, however, feel justified in hoping and expecting that a solution of the difficulties may be found when they openly put forth their views. The Norwegian people is possessed by a determined will to keep out of the war. This will to remain neutral involves that it must be ready to maintain its commercial relations with both sides. In her commercial policy Norway cannot break off relations with one of the belligerent parties without the serious danger arising that it will not be possible to maintain the political neutrality of the country much longer.

In her efforts to maintain neutrality Norway has now reached a point where the future cannot be viewed without grave apprehension. The most energetic efforts are being made in order to stretch as much as possible the supplies in the country and to increase the production of foodstuffs. Nevertheless actual need is drawing nigh if Norway does not receive supplies. The Norwegian Government cannot doubt that the United States as well as their associates will understand the difficult position of Norway.

Norway may justly claim that she shall not through the prospect of being denied the daily bread be placed before the choice between actual need and the acceptance of an agreement which would involve danger to her position as a neutral and possibly expose her to a war that in a short time might break down what the people has been building up through centuries.

The note of the War Trade Board refers in all its parts not to the United States alone but also to their associates, and it states that an eventual agreement will only be concluded with the concurrence of the Powers associated with the States in the war.

When it is asked what from the Norwegian side shall be considered reasonable compensation for the supplies which Norway expects from the United States and their associates, the Norwegian Government find it proper to submit that already prior to the entrance of the United States into the war Norway has rendered to the associates of the United States very considerable advantages in exchange for necessary supplies. First of all is here to be considered the exceedingly great services which Norway’s merchant marine with great sacrifices of lives and ships all during the war has rendered the world commerce and is still daily rendering primarily to the Allies. But in addition to this must also be mentioned the financial services of Norwegian banks, services which in view of Norway’s ability have been considerable. Further the many and burdensome restrictions in her free economic life which Norway during the war has had to adopt or submit to as a consequence of the war interests of the Allied Powers. And again,—what also in the present negotiations occupies as prominent place,—the exportation of Norwegian products exclusively, or in such large quantities, to the associates of the United States of America that little or nothing at all has been left for exportation to other countries, among such even neutral countries which before the war constituted the regular markets for Norwegian exports.

In the notes of the War Trade Board dated November 27¹ and December 19 it is expressed that the United States and their associates wish to continue to obtain exports from Norway.

In the note of November 27 it is, for instance, suggested that Norwegian calcium carbide be delivered against compensation in kerosene and Norwegian calcium nitrate against compensation in fertilizers. In the note of December 19 a desire is intimated to the effect that the United States and their associates obtain a prior option upon various Norwegian articles of export. In this connection the Norwegian Government desire at once to make the general declaration that in an eventual agreement they are willing to undertake the obligation to grant export license to the United States or their associates for considerable quantities of commodities in which these may be interested, provided that Norway’s own requirements shall not prevent this.

The Norwegian Government are further willing to accept in an eventual agreement the following general principles as binding for Norway:

(a) No commodity or part thereof which Norway according to the agreement imports from the United States or their associates shall directly or indirectly be exported to the Central Powers. In an agreement of content as indicated in the present note the United States will have full guarantee that no exportation will take place from Norway of Norwegian products which will make it possible to substitute for products so exported, goods imported from the United States of America in accordance with an eventual agreement.

(b) If any consignment of goods which according to the agreement cannot be exported from Norway to the Central Powers shall be exported to any neutral country which borders on the Central Powers or any one of them, Norway shall by agreement with the Government of such neutral country see to it that no consignment of goods so exported from Norway shall be reexported directly or indirectly to the Central Powers.

The Norwegian Government are further willing—except as regards fish and products of fish about which it is proposed to make a separate arrangement in the general agreement to be concluded (see below)—to agree with the United States to maintain the same restrictions with regard to Norway’s free exports which form part of previous agreements between the Norwegian and the British as well as the Norwegian and the French Governments concluded prior to the entrance of the United States into the war.

The Norwegian Government further declare themselves ready to regard favorably the question of an eventual renewal of the so-called branch-agreements concluded between British and Norwegian trade-organizations.

The burdensome clause-system which during the war has developed in connection with commodities which are produced or prepared with the aid of imported implements and auxiliaries, the Norwegian Government do not find desirable. This system also appears less called for in cases where the exportation of a commodity is otherwise restricted. It has therefore recently been suggested to the British Government that this system be discontinued as far as fish goods are concerned, if the exportation to the Central Powers of such goods is restricted as suggested during these present negotiations. If the United States should so demand the Norwegian Government are willing to accept, however, that to a reasonable extent the clause-system shall be retained.

As regards the several paragraphs in the War Trade Board’s note of December 19 the Norwegian Government desire to make the following remarks:

1. Fish and fish products. The Norwegian Government have noted that it has been agreed that as regards foodstuffs there may be exported from Norway to the Central Powers 48,000 tons export weight of fish and fish products per annum.

With respect to train oil and fish oil it is observed that Norway’s own requirements involve the probability that no exportation of these articles can take place during the present year.

As it is admitted, however, that eventual supplies of cottonseed oil from the United States may set free for exportation train oil and fish oil, the Norwegian Government will have no objection, as compensation for cottonseed oil, to grant export license to the United States or their associates for such quantity of train oil or fish oil as Norway herself can spare. A reservation must here be made, however, with regard to a not too limited amount of train oil for medical use. The War Trade Board will no doubt agree that for humanitarian reasons Norway ought to have the opportunity to export to any country a certain amount of this article.

As regards the presupposition of the War Trade Board that the exportation of each class of fish and fish products is to be made in the form customary in the past, the Norwegian Government venture to suggest that they are not quite clear as to how this presupposition shall be understood, but in case it is meant that the maximum quantity stipulated for export to the Central Powers must not be exceeded the Norwegian Government fully concur and will in future as hitherto exercise a strict supervision in this respect.

2. Copper. The Norwegian Government have noticed with satisfaction that the United States are willing, so far as their own needs and those of their associates permit, to assist in every way in supplying the copper needed by Norway. It is furthermore noticed that the United States agree to the exportation to the Central Powers of copper as compensation for copper received, according to the same rules as those stipulated in the copper-agreement between the Norwegian Government and the British Government. The War Trade Board do not find it permissible, however, when the Norwegian Government reserve the right to export to the Central Powers this compensation copper in the form of the copper contents of ores which also contain sulphur. The War Trade Board claim that the compensation copper to be exported by Norway to the Central Powers must only be in the form of crude or refined copper.

To undertake an obligation not to deliver any pyrites to the Central Powers would for Norway involve difficulties. It must not be overlooked that Germany is an old customer of Norway’s as regards this article.

Looking only at the last years it may be mentioned that in 1915 Norway exported to Germany 210,000 tons of pyrites and in 1916,—for the period until the exportation ceased in accordance with Norway’s copper-agreement with Great Britain—85,000 tons. In 1913, the year preceding the war, Germany received directly from Norway 41,000 tons of pyrites and in transit through Holland and Belgium such considerable quantities that experts calculate Germany’s total import of pyrites from Norway that year to have been approximately 90,000 tons. On account of the great scarcity of copper which during the summer of 1916 prevailed in Norway, the Norwegian Government found themselves obliged to conclude an agreement with Great Britain about the supply of 3,000 tons copper against compensation in pyrites. This resulted in a temporary cessation of the export to Germany of Norwegian pyrites. In the course of a few months, however, the obligation to deliver such compensation will probably have been fulfilled, and Norway will once more have her freedom with regard to the exportation of pyrites. The Norwegian Government are nevertheless willing, in case of an agreement following the lines of the present note being concluded, to undertake the obligation to issue export license to United States or their associates for further quantities of pyrites.

The Norwegian Government are also willing in order to facilitate the opportunity for the United States or their associates to purchase pyrites in Norway, not to grant export license to the Central Powers for this article as compensation for copper, prior to May 1, 1918, and not to grant such license for more than 40,000 tons in all in 1918, and not for more than 5,000 tons a month thereafter as long as the agreement between Norway and the United States shall be in force. It is supposed that present conditions would give the United States or their associates the opportunity to buy at least 130,000 tons of pyrites in 1918. This considerably exceeds their importation from Norway in 1917.

The War Trade Board have, in the note of December 19, in making certain observations with regard to pyrites in general, made an exception as regards purple ore. The Norwegian Government take it for granted that this article, which also under present conditions is exported unhindered to the Central Powers, may be still so exported without regard to restrictions in the exportation of pyrites, which the Norwegian Government may bind themselves to in the agreement to be concluded.

3 and 4. The Norwegian Government fully appreciate the importance which the War Trade Board ascribe to calcium carbide, calcium nitrate, ferrosilicon and molybdenite. The Norwegian Government concede that the United States may reasonably expect to get the opportunity to buy considerable quantities of these Norwegian products as compensation for supplies of necessities which Norway expect to receive from the United States and their associates. It is just as an expression of such considerations that the Norwegian Government have suggested the exportation to the Central Powers of relatively small quantities of these commodities in the event of an agreement with the United States being reached. The opportunity of the United States and their associates to buy a larger part of Norway’s production of these commodities will thereby evidently be facilitated. For Norway to bind herself by an agreement with the United States and their associates to absolutely discontinue the exportation of these articles hitherto going on to the Central Powers would, however, be a matter of such serious nature with regard to the preservation of the neutrality of the country that the Norwegian Government do not find it possible to take such a responsibility. They are desirous, however, also on this question to meet the United States as far as possible, and they are therefore willing, though not without serious hesitation, to agree that the exportation per annum to the Central Powers of these articles for the period of the eventual agreement shall not exceed 15,000 tons of calcium carbide, 12,000 tons of calcium nitrate, 4,000 tons of ferrosilicon and 30 tons molybdenite. These annual quantities are to be calculated from the date when the agreement with the United States comes into force.

The quantities of these articles which the United States and their associates will get the opportunity to buy when the exportation to the Central Powers is restricted as indicated above, are mentioned under paragraph 7 hereafter, together with certain other chemical and metallurgical products.

5. The Norwegian Government are willing not to permit exportation from Norway, as long as the agreement is in force, of the following commodities: antimony, bismuth manganese, mica, nickel, tin, titanium and wolfram. The Norwegian Government agree that this paragraph shall be understood to cover also ores and alloys of the commodities mentioned. In consideration of the importance which the War Trade Board attach to chrome, the Norwegian Government, in order to facilitate the opportunity of the United States and their associates to buy this commodity in Norway, are willing for the duration of the agreement not to allow exportation to any other country of chrome or ores and alloys thereof.

The Norwegian Government will not omit to state, however, that the essential part of the production of the Norwegian chrome mines for a considerable time ahead has been contracted to Sweden. This exportation to Sweden is apparently of importance to the Swedish ball-bearing industry, the production of which is presumably of benefit also to the United States and their associates. In this connection the Norwegian Government desire to direct attention to the great services which the Norwegian smelting industry is rendering the Allies through its production of ferro-chrome. In 1917 about 3,000 tons of this product almost entirely made from imported chrome ore were exported to the Allies. In 1918, provided an agreement being concluded, it may be calculated that about 5,000 tons can be thus exported.

6. This paragraph does not occasion further remarks.

7. As stated in the introductory remarks in the present note the Norwegian Government accept the general principle that Norway shall not export to the Central Powers any commodity or part thereof which Norway according to an eventual agreement with the United States obtains from the United States or their associates. The possibility mentioned by the War Trade Board that such exportation might take place will thus be excluded. Under this paragraph the War Trade Board further mention various Norwegian export articles, many forms of nitrate (apart from calcium nitrate already mentioned), iron ore, steel, zinc and aluminium, which may be used as ingredients of munitions and supplies of war. As regards these articles the War Trade Board observe that if the proposal of the Norwegian Government should be accepted Norway would be in a position to export to the Central Powers these articles in unrestricted quantities. The War Trade Board submit to the Norwegian Government to prevent exportation to the Central Powers of all such articles. In reply to this the Norwegian Government desire to point out that they do not find it right in an agreement with the government of a foreign country, to bind their country in a general way not to export articles of Norwegian origin, which are not specifically mentioned in such agreement. In view of the endeavours to preserve the neutrality of Norway the Norwegian Government cannot as regards the articles just mentioned bind themselves to discontinue entirely the exportation to the Central Powers which has taken place so far. The Norwegian Government are willing, however, to permit exportation to the United States and their associates also of these articles in such considerable quantities, as compensation for supplies which these countries will grant Norway, that only small quantities will remain for exportation to the Central Powers.

The Norwegian Government desire in this connection to direct attention to the fact that the existing clause-system places additional effective restraints on the exportation from Norway to the Central Powers. Wherever machinery, coal, oil, kerosene or other auxiliaries imported from the Allies are being used in producing any of the above mentioned commodities this fact will under the clause-system prevent a number of commodities from being exported to the Central Powers.

According to calculations which have been made, the situation, as it appears at the present time, should give the United States and their associates the opportunity to buy approximately the following quantities per annum:

• Chemical products: nitrates 90,000 tons, cyanamide 10,000 tons, calcium carbide 30,000 tons, silicium carbide and similar products 3,000 tons, total 133,000 tons.
• Metallurgical products: aluminium 12,000 tons, zinc 20,000 tons, sodium 500 tons, ferrosilicon 20,000 tons, ferrochrome 5,000 tons, special steel hobnails and nails 3,000 tons, total 60,500 tons.
• Minerals: iron ore concentrate and brickets 200,000 tons, pyrites 130,000 tons, molybdenite and other ores of the same class 300 tons, total 330,300 tons.
• Wood and manufactures of wood: round timber, mainly pitprops 150,000 tons, sawn planed wood in all 400,000 tons, pulp (dry weight) 125,000 tons, chemical pulp (cellulose) 200,000 tons, paper 125,000 tons, matches, 5,000 tons, total 1,005,000 tons.

The Norwegian Government pledge themselves in case of an agreement being concluded to grant export license to the United States and their associates for such quantities of these articles as they might buy in Norway, provided Norway’s own requirements shall not prevent this.

A very strong and widespread feeling has developed in Norway demanding that export prohibitions should be issued for all articles of importance in order that Norway shall be in a position to prevent that such articles go out of the country without corresponding advantages being received in compensation. And the Norwegian Government, in order to be able to regulate the country’s commercial relations to all sides, have under consideration to issue export prohibitions for the articles which primarily are under discussion here and which are not already subject to export prohibitions. According to the above proposal Norway will as compensation for the essential supplies which it hopes to receive from the United States and their associates, permit the far predominant part of its export surplus to be exported to these countries. In order to maintain her economic life Norway, however, also needs supplies from the Central Powers and it is therefore necessary that it shall remain in a position to render services in compensation for such supplies.

8, 9 and 10. The Norwegian Government have noted that the War Trade Board, in their note of December 19, have stated that in case of an agreement being concluded the reasonable requirements of Norway can and will be met and that the United States and their associates will spare no effort to attain this end. The Norwegian Government have also noted the statement of the War Trade Board to the effect that the Board will exercise all their power in granting export license for the commodities covered by an eventual agreement, as well as for bunker coal and ship stores to facilitate the transportation to Norway of such commodities. The Norwegian Government have further noted that the War Trade Board have received the assurance of the Allied Governments that they will in every way facilitate the transportation to Norway of all commodities which shall be shipped in compliance with an eventual agreement. The Norwegian Government have also in a note, dated January 9, from the Minister of the United States at Christiania, received a declaration to the effect that in case a satisfactory agreement is concluded Norway will get “rations estimated to satisfy her legitimate requirements.” In this declaration the British, French and Italian Ministers at Christiania have also joined, acting under instructions from their respective Governments. The Norwegian Government see in this a binding intimation that the quantities of foodstuffs and other articles which are required by Norway shall actually reach that country.

With regard to the stipulation of such quantities required by Norway, Doctor Nansen’s commission has already submitted to the War Trade Board an extensive material. The Norwegian Government have by cable from Doctor Nansen, received in Christiania January 20, made themselves acquainted with the War Trade Board’s proposal as regards the stipulation of quantities of various articles. This proposal is now under consideration in the Government departments concerned, and the Norwegian Government will express their views upon the matter with as little delay as possible.

The War Trade Board have stated that they consider it a matter of course that the Norwegian Government will consult the United States and their associates with regard to the sources from which Norway expects from time to time to obtain her supplies. The Norwegian Government presume that there will be nothing to prevent this as far as oversea supplies are concerned.

11. As to the duration of the agreement the Norwegian Government have noted that the War Trade Board accept that the agreement shall be operative for the period of the war, subject to termination by either party at the expiration of one year from the date of the agreement and at any time thereafter, of such termination a notice of three months shall be given.

With regard to the observations of the War Trade Board to the effect that the above-mentioned stipulation of the fish export to the Central Powers (an average of 4,000 tons per month) shall begin already on December 24, 1917, the Norwegian Government wish to state that they have seriously considered the possibility of accepting this, but that they find themselves unable to do so, because such a limitation would in its consequences have the nature of a retroactive measure of restriction towards Germany.

In order to show their serious will to meet also in this respect the wishes of the War Trade Board the Norwegian Government have already shortly after the receipt of the War Trade Board’s note of December 19 instructed Doctor Nansen to inform the War Trade Board that the Norwegian Government will temporarily maintain for the month of January the 15 per cent limit for exportation to Germany of the kinds of fish and fish products for which the obligation of Norway according to her treaty with Great Britain to maintain such limit expired on December 26. As similar considerations would apply also as regards the month of February the Norwegian Government must also as regards this month confine themselves to maintain the 15 per cent limit as hitherto.

The War Trade Board have expressed the expectation that the Norwegian Government will supply periodical statistics of imports and exports from Norway whenever the United States and their associates may request it. The Norwegian Government are willing to do so.

The Norwegian Government feel that it cannot conclude their answer to the American note without expressing the warm wish that it will be appreciated that Norway has tried to meet the United States as far as the Norwegian Government have found it compatible with the vital interests of the country. Norway offers as compensation for the necessary supplies from the United States and their associates the far predominant part of her exportation in addition to the exceedingly important services and sacrifices which the Norwegian merchant marine has rendered during the war. What Norway desires in exchange from the United States of America and their associates is nothing but supplies which are indispensable for the maintenance of the health, vitality and productive powers of the Norwegian people.

In communicating the above I wish to express my readiness, if you should so desire, to discuss with you further any points in the present note.

Believe me,

Very truly yours,

Fridtjof Nansen

1. See footnote 1, ante, p. 1109.
1. See Foreign Relations, 1917, Supplement 2, vol. II, pp. 1073–1074.