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, April 12, 1918.

Sir: After having received through the American Minister in Kristiania the last draft for an agreement between the United States and Norway the Norwegian Government have carefully studied this document and in accordance with their instructions I have the honour to make the following remarks as to its various paragraphs:

Article II, §1

The reasons given in this paragraph for counting “each ton of the commodities enumerated in the schedule obtained from Russia “as “the equivalent of ½ ton obtained elsewhere” would also seem to apply to all similar imports from Denmark and Sweden. An increased export from Denmark and Sweden to Norway would also probably reduce accordingly the export of the said countries to the Central Powers. I therefore propose that after “obtained from Russia as constituted before the war” it is added “and from Denmark and Sweden.”

My Government think that the stipulation in the last section of this paragraph about “any articles released by such importation” might cause doubt in several cases, but my Government assumes that this Stipulation has to be understood in all cases to be given a reasonable interpretation. I have already before discussed this point with Mr. White and Mr. Chadbourne and I think we fully agree on this point.

Article II, §2

There is evidently some error in the telegram received regarding the beginning of this paragraph and I therefore shall return to it as soon as I get the required correction. As to the stipulation about the “locations and ownerships of such stocks” my Government take it for granted that no specifications are required beyond statements of the stocks in the different districts (amter,^* towns) with summary informations as to where the stocks are in the hands of the state, the communities, the plants and the merchants.

Where it is said “if any question shall arise in respect to the observance by Norway of any restrictions”, etc., my Government proposes to substitute “in Norway” for “by Norway.”

It is taken for granted that the Norwegian Government will have an opportunity to discuss the form of the undertakings to be given by Norwegian importers. We therefore propose that the following sentence is added after “in accordance with the terms of this agreement”: “The Norwegian Government shall have an opportunity to discuss with the representative of the War Trade Board the form of such undertakings.”

As to the right of the War Trade Board to refuse to accept guarantees my Government takes it for granted that there would never be any question of refusing the guarantee given by the Norwegian Government when they act as importers.

Article II, §3

As regards the second section of this paragraph the Norwegian Government consider it absolutely essential to have at all times at least three months stocks of the imported goods, corresponding to at least three months average import. This is of very great importance, as I have pointed out in my note of February 2,¹ and applies especially to grains. I therefore propose to give this section the following form: “Norway is entitled to have at all times stocks of imported articles corresponding to at least three months average import as stipulated in the present agreement.”

My Government propose that in the last section of this paragraph the expression “at all times” shall be substituted by “from time to time” which has been used in previous notes. And as expressed in my note of February 2 it must also be stated that the stipulation merely applies to our import from oversea countries. I therefore suggest the following form for this part: “and the Norwegian Government will from time to time freely consult with the United States and its associates as to the oversea sources from which the articles which are to be imported into Norway shall be obtained.”

Article II, § 5 and 6

My Government’s telegrams referring to these paragraphs are not clear owing to several evident errors in transmission and I therefore propose to revert to these paragraphs after having received the necessary corrections.

Article III, § 1

The Norwegian Government regrets very much to be unable to accept the stipulation that the 48,000 tons of fish shall be exported “in the same relative proportion of the various forms of fish and fish products as were exported during the year 1917.” My Government points out that no proposal to this effect was ever made in the notes exchanged between us, while on the contrary in my note of December 7¹ I stated that my Government are willing to “guarantee that the export of ‘klipfisk’ (i. e., salted dried fish) and ‘törfisk’ (i. e., dried fish) shall not exceed 8,000 tons a year in all, and canned fishgoods, if you so desire, shall not exceed 15,000 tons.”

This proposal you accepted in your note of December 19² with no reservation, except the addition that “the export of each class of fish and fish products is to be made in the form in ordinary commercial use in the past.”

Trusting that this was perfectly clear and agreed upon, the Norwegian Government has in the mean time given Germany and Austria the assurance that Norway could export 48,000 tons per annum of fish and fish products to the Central Powers on the condition that canned-fish goods should not exceed 15,000 tons per annum, “klipfisk “and “törfisk “should not exceed 8,000 tons per annum while the Central Powers would have the choice as to the distribution of the remaining quantity, except that fish-liver and fish-oils of any kind could not be exported to the Central Powers. Each class of fish and fish products must, however, be made in the form in ordinary commercial use in the past.

If the Norwegian Government now should agree in this respect to new regulations such as now proposed, this would mean going back upon definite assurances already given Germany and would inevitably cause a breach with that country. I hope you will thus understand the impossibility for the Norwegian Government to agree to such stipulations and I would therefore propose that this part is given the following wording: “The export of each class of fish and fish products is to be made in the form in ordinary commercial use in the past, but the Norwegian Government agrees that the export of ‘klipfisk’ (i. e., dried salted fish) and ‘törfisk’ (i. e., dried fish) shall not exceed 8,000 tons a year in all, and canned fish goods shall not exceed 1,500 tons a year.”

My Government deeply regrets that the export to the Central Powers of a limited quantity of codliver oil for medical purposes is not agreed to.

§3

The Norwegian Government will sincerely regret if the export of copper as compensation to the Central Powers should be limited to the small quantity exported in 1917, as this might interfere with the import of machinery, etc., essential for our industries, which again will effect the interest of the Allies. During our discussions with Mr. White and Mr. Chadbourne we therefore agreed to limit the export of copper to a certain stipulated quantity instead of limiting it to the amount exported in 1917. My Government therefore propose to make this stipulated quantity “200 tons of copper in the form of crude or refined copper or pyrites ‘cinders’”, and the two sentences in this paragraph mentioning the export of copper in 1917 would have to be left out.

§7

We have discussed with Mr. White and Mr. Chadbourne the difficult position of the firms and people who are now going to export the much reduced quantities of various articles to the Central Powers, as these small quantities will in many cases not be sufficient to give any person or firm a living and the export to the Central Powers might therefore in such cases be made impossible if these people or firms would be prevented from carrying on other trade.

Mr. White and Mr. Chadbourne realized this difficulty and agreed that it was only reasonable that special provisions should be made for cases where trade with the Central Powers legalized by this agreement is carried on. Provisions to this effect were not formulated at the time but were left open for further consideration.¹

Article IV: Introduction²

The Norwegian Government maintains that the expressions used here about the commodities which the United States and her associates “may require over and above the genuine home requirements of Norway” do not quite represent the proposition of the Norwegian Government as expressed in my note of February 2, and my Government cannot accept this part as it now stands. The Government proposes, however, to give it the following wording: “… of all such commodities and articles as the latter may buy in Norway provided Norway’s own requirements shall not prevent this.”

With regard to the quantities of industrial products to be exported to the United States and her associates the Norwegian Government wishes it to be understood that our industrial production is to a great extent dependent upon natural conditions, especially the quantities of water carried by the rivers, which vary from one year to another. I may also add that evidently, especially in times like these, a great many things may occur to influence the output of our industries, e. g., fluctuations in the available supplies of raw materials, in the import of necessary machinery, labor difficulties, etc.

§5¹

The Norwegian Government regrets that it cannot possibly accept the proposed stipulations of this paragraph for any articles to be exported to the Central Powers. The quantities which we according to the agreement will be able to offer for export to the Central Powers are already reduced so considerably that a further reduction, directly or indirectly, would be impossible. When the present small quantities of export to the Central Powers were agreed upon after long negotiations I, as well as my Government, took it for granted that no new demands should be raised for further reduction of these figures.

The Norwegian Government cannot accept the last section of paragraph 5 as it now stands, but propose to give it the following form: “In the same way as Norway’s requirements of the articles not mentioned in schedules A, B, C, D, E, F, and G, hereto annexed, will be met as far as possible, Norway will also on her side meet as far as possible the demands for export from Norway to the United States and her associates of articles not especially mentioned in this agreement.”

§6¹

The Norwegian Government cannot accept this paragraph but proposes to give it the following form:

“In the same way as the War Trade Board and the Governments associated with the United States in the war have in view the necessity of Norway’s entire economic life being maintained as undisturbed as possible, in order to facilitate the greatest possible purchase in Norway of the above mentioned export articles, the Norwegian Government will also on their side do their best to make possible such purchase by the United States and her associates,”

Article V, §1

If it is the understanding that the fish agreement with Great Britain will cease to exist and be substituted by the proposed agreement the Norwegian Government will have no objection thereto. They assume, however, that the copper agreement with Great Britain shall continue in force, as it is provided that it cannot be denounced by either party as long as the war lasts.

The Norwegian Government cannot accept the last section of paragraph 1, beginning “if any agreement by the terms of which Norway”, etc., because the Government has no way of preventing private branch associations from denouncing their agreements with foreign governments.²

§2

The Norwegian Government propose to give the beginning of this paragraph the following wording:³

“It is understood that the Norwegian Government shall have the right to control the import and distribution of all commodities imported into Norway and that any commodity of a kind needed in a manufacturing plant”, etc.

Otherwise the Norwegian Government accepts this paragraph.

§3

In view of the stipulation that all agreements of Norwegian trade associations with the Governments of Great Britain, France and Italy, shall be subject to the approval of the Norwegian Government, the latter considers the last period of this paragraph, beginning with “and the Norwegian Government hereby declares”, etc., unnecessary. But if the now existing control should prove insufficient, the Norwegian Government declares its readiness to introduce further control. Such control has of course in all cases to be administered by Norwegian authorities.

In order to avoid misapprehensions the Norwegian Government considers it desirable that it should be expressly stated in the agreement that the above-mentioned stipulations as regards agreements with trade associations must not be construed so as to involve any infringement on the right of the Norwegian Government to act as importer and to regulate the importation by the issuing of export prohibitions and by other stipulations as regards to right of importation by individuals and municipalities. It is evident that considering the strictly limited rations stipulated for Norway under the proposed agreement, it becomes a necessity that the Government should exercise full control of the import and distribution of these rations in order that as far as possible the legitimate requirements of the whole nation may be met.

I beg you to accept [etc.]

Fridtjof Nansen

1. Norway is divided into 20 amter. [Footnote in the original.]
1. Ante, p. 1118.
1. Foreign Relations, 1917, Supplement 2, vol. II, pp. 1081–1082.
2. Ibid., pp. 1087–1091.
1. The second paragraph of article 3, section 7, of the final text and the clause in the first paragraph of the same section, “except exports permitted by the provisions of this agreement and referred to hereinafter in this section,” were added to the draft in consequence of these representations.

2. In the draft:

   “By way of compensation for the allotments of Norway’s requirements, enumerated in schedules A, B, C, D, E, F and G, hereto annexed, the Norwegian Government will grant export licenses for, and will authorize and permit the export, free of all tax or license charges, and commodities licensed from the United States will be licensed free of all taxes and license charges, and the Norwegian Government agree to grant export licenses, if so [such] should be desired, 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 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:”

1. In the draft:

   “In the event there shall be, in any case where the same commodity is designated in this article and also in article III hereof, except fish and fish products, a deficiency in the supply to such an extent as to reduce the same below the estimated 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.

   “Norway will permit the export to the United States and her associates in the war of any other commodities needed by them which she can spare.”

1. In the draft:

   “The Norwegian Government further undertakes that, while this agreement remains in force, it will not adopt or enforce any laws or regulations, other than for the protection or advantage of the laboring classes, 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 Stages in the war, to the extent of such exports for the twelve months preceding the date hereof. And said Government will not adopt or enforce any laws or regulations other than for the protection or advantage of the laboring classes, which will have the effect of preventing an increase in the exports thereof to the United States and her associates, where such increase can be effected without prejudice to the genuine Norwegian requirements for home consumption.”

2. The phrase in the final text relating to agreements terminated “at the instance of the Norwegian Government” read simply “by Norway” in the draft.

3. In the draft:

   “It is understood that the Government shall have the right to control the distribution of all commodities imported into Norway embraced in the schedules hereto annexed and that any commodity of a kind needed in a manufacturing plant whose import and distribution shall have been approved by the Norwegian Government and which commodity shall be employed in producing manufactured articles for the United States or any country associated with the United States in the war, shall not during the continuance of this agreement be requisitioned, commandeered or otherwise diverted or distributed by the Norwegian Government to the detriment of the operation of such plant; the foregoing however not to apply to food.”