File No. 657.119/330a
The Acting Secretary of State to the Ambassador in Great Britain ( Page)
6751. For Sheldon [from War Trade Board]:
No. 158. The following proposed memorandum with Norway has been favorably passed upon by French, British, and ourselves here. Please immediately submit same to French and British there and request they expedite consideration and express approval or disapproval with comments, as Nansen impatient to sail and Germany is renewing warnings to Norway against agreement with us.
Memorandum between the War Trade Board and the Norwegian Government in regard to Licensing Exports from the United States to Norway
The War Trade Board, an administrative agency empowered by Executive order of the President to license exports from the United States, has, in conference with the representative of the Norwegian Government, considered the annual requirements of Norway during the continuance of the present war, for which period this arrangement shall continue, subject to termination by either party at the expiration of one year from date and at any time thereafter by either [Page 1139] party upon giving three months’ notice of intention to terminate the same; and, in order to set forth in definite form a statement of the estimated requirements of Norway for said period and the conditions, rules, and regulations under and in accordance with which licenses therefore shall be issued, it is hereby declared:
Article I. (1) The powers of the War Trade Board are administrative and pertain wholly to the Nation’s domestic or internal affairs. The Board does not possess power or authority to negotiate or make any agreement binding upon the Government of the United States nor to act in regard to the policy of the United States relating to foreign affairs.
(2) It is the desire of the said War Trade Board that Norway shall receive her estimated needs of the articles enumerated in the several schedules annexed in so far as the same, first, are not required for consumption in the United States and in so far as the exportation thereof will not so reduce available supplies as to interfere with the rationing of the nations associated with the United States in the war, and second, will not, if their exportation to Norway is permitted, directly or indirectly benefit any country or ally of any country with which the United States is at war.
(3) In consideration of the stipulations hereinafter set forth the said War Trade Board establishes the rules and regulations herein set forth and declares it to be its policy to license the export or facilitate the obtaining, as the case may be, of the estimated requirements of Norway enumerated in the schedules A, B, C, D, E, F, and G1 hereto annexed and made a part hereof.
(4) If sufficient quantities to supply the estimated needs are not deemed available for exportation from the United States at the time required, export licenses shall be granted for as great a part thereof as is available compatible with the rules and regulations herein set forth and the policy declared. And said Board will grant licenses for bunker fuel and ships’ stores to vessels transporting the remainder of said commodities to Norway from other countries.
Art. II. The consideration for granting such export and bunker and ship store licenses for the exportation from the United States and other countries to Norway of the articles enumerated in the annexed schedules is the undertaking of the Norwegian Government to faithfully fulfill and observe each of the following stipulations:
(1) The commodities enumerated in the schedules annexed for which licenses may be granted are based upon the total estimated import needs of Norway for each 12 months’ period during the continuance hereof, and since these commodities are to be withdrawn from already restricted world supplies it is expressly understood that all supplies Norway is enabled to import shall as and when imported be deducted from the commodities set forth in said schedules.
Owing to the fact that supplies in the United States are restricted and as an inducement for Norway to obtain elsewhere a part of her requirements and thus save in the use of tonnage, it is understood that in reckoning imports pursuant to the provisions hereof each [Page 1140] ton of the commodities enumerated in the schedules annexed obtained from Russia shall be counted as the equivalent of one-half ton obtained elsewhere.
The importation into Norway of the articles described in the said annexed schedules is for consumption in Norway, and the quantities thereof which shall be licensed (notwithstanding the aggregate quantities set forth in the schedules annexed) shall at all times be limited by the genuine normal internal requirements of Norway, with due regard to existing stocks and to the importation into Norway from countries where the license of the Board is not required of like articles or articles capable of use as substitutes for those described in the annexed schedules.
(2) Any accredited representatives of the United States shall have free access at all times to the books, records, correspondence, and documents pertaining to the stocks on hand and to the distribution or delivery made or proposed to be made of articles imported into. Norway during the term hereof. Within 30 days from the execution of these presents full statistics shall be obtained by the Norwegian Government and furnished to the War Trade Board, showing in detail the amounts of existing stocks in Norway of all articles enumerated in the annexed schedules. And while this arrangement continues in effect complete statistical information shall be furnished semimonthly from the date hereof to accredited representatives of the War Trade Board in regard to all exports from and imports into Norway. The statistics which shall be furnished shall state in detail the name, description, and quantity, the country of origin and country of destination of each commodity imported and exported, and shall include statistics in regard to trade with both neutrals and belligerents. If any question shall arise in respect to the observance by Norway of any restrictions of or prohibitions against exports, full particulars shall upon request be furnished to the War Trade Board or its accredited representatives in regard thereto, and the Government of Norway will afford every facility within its power and cooperate in any inquiry in regard to the effective enforcement of such prohibitions, regulations, and restrictions. To the end that such questions may arise as little as possible, the Norwegian Government is willing that the War Trade Board should require from importers in Norway in return for the granting of licenses such undertakings as to the disposal of the goods imported as may be in accordance with the terms of this memorandum, and the War Trade Board reserves the right to refuse to accept guarantees which in their opinion are not offered in good faith. The exportation by Norway to the Central Powers of any commodities the export of which is not expressly permitted hereby, and as to these in quantities in excess of the quantities expressly permitted hereby, shall constitute a breach of the arrangement provided for herein, and thereupon the War Trade Board at its option may refuse to grant further licenses hereunder.
(3) Imports of the articles enumerated in the annexed schedules shall be distributed as evenly as possible throughout the year. The right is reserved to the War Trade Board to determine the distribution of the allotments for export from the United States both as to [Page 1141] time and port, but due consideration shall be given to any representations of the Norwegian Government that may from time to time be made in regard thereto. And the Norwegian Government will at all times freely consult with the United States and its associates as to the sources from which the articles which are to be imported into Norway shall be obtained.
(4) All grains included within the schedules of estimated requirements obtained from the United States shall be purchased through the Food Administration Grain Corporation, and the vessels engaged in carrying such tonnage shall receive the same at any Atlantic or Gulf coast port that may be designated by said Grain Corporation. The Norwegian Government will utilize the services of the Inter-Allied Wheat Executive as their sole agent for the purchase of grain elsewhere than in the United States on the understanding that in so far as the United States Food Administration Grain Corporation is not able to furnish the quantities named in the aforesaid schedules the Wheat Executive will be in a position to deliver the necessary quantities to the Norwegian Government either in the Argentine or in Australia.
(5) Notwithstanding the provisions of article III of this memorandum, no articles which are obtained, grown, or produced in whole or in part by the use of any implements, machines, machinery, coal, gasoline, kerosene, oils, lubricants, or other auxiliaries or articles imported from the United States or imported from any country associated with the United States in the war, or whose importation shall be facilitated by the War Trade Board’s licenses for bunker coal and ships’ stores, shall be directly or indirectly exported from Norway to any country or ally of any country with which the United States is at war (including territory occupied by the military forces of such country) or to any neutral country or Finland or Russia, except as may be mutually agreed upon between the United States Government and its associates with the recipients in Norway of the aforesaid imported articles.
(6) That during the period this arrangement continues in effect no articles or commodities of any kind, except those specifically enumerated in article III hereof in the quantities stated, shall be directly or indirectly exported to or used for the benefit or advantage of any country or ally of any country with which the United States is at war (including territory occupied by the military forces of such country), nor shall any articles or commodities be exported to Denmark, Sweden, Holland, Switzerland, Spain, Finland, or Russia except in strict accordance with this understanding as well as with all the conditions and restrictions in this memorandum expressed; and no such exportation shall therefore take place except to consignees and in consideration of guarantees satisfactory to the War Trade Board or its duly accredited representatives. In particular no export shall be made to Denmark unless consigned to persons obtaining guarantees from the Danish Association, to Holland unless consigned to the Netherlands Overseas Trust, nor to Switzerland unless consigned to the S[ociété] S[uisse de] S[urveillance Economique].
[Page 1142]Art. III. Inasmuch as Norway obtains certain commodities from Germany and her allies, it is the desire of the Norwegian Government by way of compensation for the imports which Norway will receive to export to said countries a limited amount of certain commodities. Therefore, during the continuance of this agreement, the following but no other exceptions are allowed to the conditions herein prohibiting Norway from exporting any article or commodity to any country or ally of any country at war with the United States:
(1) Norway may export to Germany or her allies not to exceed 48,000 tons per annum (export weight) of fish and fish products (such fish products to include canned fish, salt fish, dried fish, or fish prepared in any way whatsoever), and the quantity of such export shall not exceed 4,000 tons for any calendar month (the term “fish products” shall not be construed to include fish oil); provided, however, that such exports to Germany and her allies shall be in the same relative proportion of the various forms of fish” and “fish products” as were exported during the year 1917 and prepared and packed in the same way. While this arrangement is in force no fish caught by Norwegian boats shall be landed elsewhere than in Norway, nor shall any such fish be transferred at sea except into collecting vessels, which shall be obliged to land their cargoes only in Norway, and the names of any such collecting vessels, before being so employed, shall be communicated to the accredited representatives of the War Trade Board in Christiania. During the continuance of this agreement no Norwegian fishing boats shall be transferred to the flag of any other country. In order to prevent the diversion of any fish caught by vessels sailing under the Norwegian flag or transferred at sea to collecting vessels, bonds will be secured from shipowners for the proper observance of this arrangement and fines will be imposed by the Norwegian Government of not less than double the value of the fish diverted upon any owner or captain or other person responsible for the forwarding shipment or carriage of said fish who does anything or connives at anything which permits such fish to reach any other destination than Norway.
(2) Not to exceed 10,000 tons per annum of calcium carbide.
(3) Not to exceed 8,000 tons per annum of calcium nitrate in blocks.
(4) Not to exceed 2,000 tons per annum of ferro silicon.
(5) Not to exceed 40,000 tons per annum of iron ore, no part of which shall be in the form of pyrites.
(6) Not to exceed 1,000 tons per annum of zinc.
(7) Not to exceed 40 tons per annum of aluminium.
(8) Copper in the form only of crude or refined copper, on condition and to the extent that Norway shall receive within 60 days from the date of such export copper goods or goods containing copper, the copper content of which shall be equal to the copper so exported, less 5 per cent for wastage. In no event shall the aggregate quantity of copper exported by Norway under this clause exceed (here will be inserted the amount of copper exported in 1917) metric tons for any 12 months’ period. Nothing herein contained shall be construed to [Page 1143] authorize or permit the exportation to Germany or her allies of pyrites containing copper.
(9) Also the following articles in not to exceed the amounts set opposite each (metric tons and kilograms):
| Tons | Kilograms | Tons | Kilograms | ||
| Poultry | 72 | Felspar dust | 125 | 500 | |
| Game | 2 | 72 | Talcum | 17 | 120 |
| Down | 3 | Seaweed ashes | 478 | 300 | |
| Skin of otter | 1 | Phosphorus, raw | 4 | 296 | |
| Skin of fox | 685 | Blystam | 1 | 965 | |
| Skin of polar bear | 760 | Silver waste | 1 | 998 | |
| Skin of seal | 213 | 190 | Pumps | 160 | |
| Skin of shark | 550 | Tools, etc | 11 | 600 | |
| Skin of wild animals not specified | 3 | 430 | Other manufactures of iron | 165 | |
| Whalebones | 16 | 668 | Manufactures of silver | 3 | |
| Furniture | 50 | Manufactures of gold | 1 | ||
| Lichens | 7 | 9 | Other machinery | 136 | 324 |
| Writing paper | 80 | Various tools and apparatus | 11 | 800 | |
| Various manufactures of paper | 18 | Medicines, norgin and tangin | 222 | ||
| Waste of paper | 314 | 395 | |||
| Rutil | 2 | 133 | Books | 1 | 778 |
| Granite | 2,531 | 20 | Rat poison | 8 | 100 |
| Felspar | 1,260 | Ice | 99 | ||
| Steatite | 231 | 780 | Waste of steatite | 7 | 760 |
| Stone chiseled | 97 | 267 | Seaweed | 425 | |
| Whetstones | 98 | 670 |
Art. IV. It is further understood that by way of compensation for the allotments of Norway’s requirements, enumerated in schedules A, B, C, D, E, F, and G hereto annexed,1 the Norwegian Government will grant export licenses for and will authorize and permit the export to the United States or to the countries associated with the United States in the war of all such commodities and articles as the latter may require over and above the genuine home requirements of Norway. The minimum quantities which it is estimated will thus be available for export to the United States and the countries associated with the United States in the war are substantially as follows (quantities are estimated in metric tons):
(1) Chemical products: nitrates, a minimum of 96,000 tons; cyanamide, 10,000 tons; calcium carbide, 30,000 tons; silicium carbide and similar products, 3,000 tons; total, 143,000 tons.
(2) Metallurgical products: aluminum, 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.
(3) 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.
(4) Wood and manufactures of wood: round timber, mainly pit props, 150,000 tons; sawn planed wood, in all 400,000 tons; pulp (dry [Page 1144] weight), 125,000 tons; chemical pulp (cellulose), 200,000 tons; paper, 125,000 tons; matches, 5,000 tons; total 1,005,000 tons.
(5) In the event there shall be in any case where the same commodity is designated in this article, and also in article III hereof, a deficiency in the supply to such extent as to reduce the same below the estimated minimum quantities available for export to the United States and her associates, as in this article set forth, then while such deficiency continues the exports of such commodity from Norway to Germany and her allies will be correspondingly diminished. The quantity which shall, during the continuance of such deficiency, be permitted to go forward respectively to Germany and her allies will be reduced in the same proportion as it is found necessary because of the deficiency to reduce the exports thereof to the United States or her associates.
(6) The Norwegian Government further undertakes that while this agreement remains in force it will not adopt or enforce any laws or regulations which will have the effect of interfering with exports of any of the commodities designated in this article to the United States or to any country associated with the United States in the war to the extent of such exports for the 12 months preceding the date hereof. And said Government will not adopt or enforce any laws or regulations which will have the effect of preventing an increase in the production of such articles and consequent increase in the exports thereof to the United States and her associates, where such increase can be effected without prejudice to genuine Norwegian requirements for home consumption.
(7) For the purpose of this article the genuine Norwegian requirements of any commodity for home consumption shall be calculated on the basis of its actual consumption in Norway for the 12 months preceding the date hereof.
Art. V. (1) Nothing herein contained shall be construed as in any manner modifying or changing the terms or conditions of any existing arrangement or agreement between the Governments of Norway and France, Italy, or Great Britain providing for the prohibition or restriction of exports from Norway, [or] the terms or conditions of any existing arrangement or agreement between the Governments of Norway and France, Italy, or Great Britain or the terms or conditions of any guarantee given to or agreement made with those Governments by Norwegian citizens which either is now in force or which, having been in abeyance owing to the suspension of imports into Norway, may be revived when such imports recommence under the terms of this memorandum.
(2) No commodities imported into Norway for use in any manufacturing plant employed in producing manufactured articles for the United States or any country associated with the United States in the war shall, during the continuance of this arrangement, be requisitioned, commandeered, or otherwise diverted by the Norwegian Government.
(3) The Norwegian Government hereby declares that it is ready to, and does hereby, authorize the Governments of Great Britain and [Page 1145] France to negotiate with trade associations in Norway for the revival, renewal, extension, or modification of all agreements heretofore entered into between the British Government and Norwegian trade associations. And it is expressly understood that the Norwegian Government will not, directly or indirectly, restrict, oppose, or prohibit such negotiations, revivals, renewals, modifications, or extensions of such agreements or of other agreements with the same or other trade organizations or associations. And the Norwegian Government hereby declares its readiness to concur in the enforcement of any control, restriction, or prohibition in regard to imports and exports and the distribution thereof provided for in any such agreements. And the Norwegian Government will authorize the exportation of such quantities of nitrates, condensed milk, and other commodities to any country or countries associated with the United States in the war as will permit the complete fulfillment of all existing contracts. Any failure to observe the terms hereof shall, at the option of the War Trade Board, be regarded as sufficient ground to authorize said War Trade Board to refuse further licenses.
The schedules of commodities will go forward early next week, but that should not delay your reply upon the form of foregoing agreement. We desire to suggest that you take up also with British whether [sic] a request from them that we secure an arrangement with Norway that all tonnage not chartered to the Allies or in active use by Norway for obtaining her ration shall be subject to the direction of a commission like that to be appointed under the Holland tonnage proposal. Also whether they would not request us to urge that the Norwegian tonnage outward bound to lift ration shall conform to [same] arrangements as to United States ports and bunkering as is provided under Holland tonnage proposal. Also ask London whether we can do anything for them in changing present Norway charter payments from kronen to pounds sterling, and if so, what.