File No. 657.119/484
Memorandum of Agreement between the War Trade Board and the Norwegian Government, Relating to Exports from the United States to Norway, Dated April 30, 1918
The War Trade Board, an administrative agency empowered by Executive order of the President to license exports from the United States, and the Special Representative of the Norwegian Government, have jointly considered the commercial relations between the United States and Norway, during the continuance of the present war, for which period this agreement shall continue, subject to termination by either party at the expiration of one year from date and at any time thereafter by either party upon giving three months notice of intention to terminate the same.
With the knowledge of their respective Governments, the War Trade Board and the Special Representative of the Norwegian Government have agreed as follows:
Article I
- 1.
- The powers of the War Trade Board are administrative and pertain wholly to the Nation’s domestic or internal affairs.
- 2.
- The said War Trade Board agrees that Norway shall receive at ports of origin 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 prevent the rationing of the nations associated with the United States in the war; and, second, will not, directly or indirectly, be exported to any country or ally of any country with which the United States is at war.
- 3.
- In consideration of the stipulations hereinafter set forth, said War Trade Board agrees to license the export (and in so far as the United States is concerned, free of license charges or export tax), or [Page 1171] facilitate the obtaining, as the case may be, of the estimated requirements of Norway enumerated in the schedules A, B, C, D, E and F,1 hereto annexed and made a part hereof. Norway’s genuine requirements for home consumption of articles not mentioned in these schedules shall be met as far as possible.
- 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 set forth in this agreement. And said Board will grant licenses for bunker fuel and ships stores to vessels transporting the said commodities to Norway from the United States or other countries.
The War Trade Board has been assured by the Governments of the powers associated in the war with the United States and with which it is acting in full accord in these matters that vessels carrying supplies to Norway in compliance with the present agreement shall not in any way be hindered, held or seized on the part of the Allies, subject however to the exercise by the Allies of the right of visit and search. The Governments of the said powers associated with the United States will in every way facilitate the transportation to Norway of all such supplies.
The Norwegian vessels specially reserved for and when actually engaged in carrying supplies to Norway under the present agreement shall not be subject to bunker regulations or other restrictions and shall receive by license bunker fuel and ships stores necessary to carry such supplies to Norway.
Article II
In consideration of the granting of 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, the Norwegian Government agrees to the following stipulations:
1. The commodities enumerated in the schedules A, B, C, D, E and F, annexed, for which licenses may be granted, are based upon the total estimated import needs of Norway for each twelve 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.
[Page 1172]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 ton of the commodities enumerated in the schedules annexed, obtained from Russia as constituted before the war, 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 determined by the actual 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.
No article imported into Norway under the provisions hereof shall be exported by Norway to other than “Allied” destination, nor shall any article released by such importation be exported to other than “Allied” destination.
2. Within sixty days from the execution of these presents, full statistics shall be obtained by the Norwegian Government and furnished to the accredited representative of the War Trade Board, and to accredited representatives of the Governments associated with the United States in the war, showing in detail the amounts of existing stocks in Norway of all articles enumerated in the annexed schedules A, B, C, D, E and F, and also showing the locations and ownership of such stocks. And while this agreement continues in effect complete statistical information shall be furnished monthly from the date hereof, to the accredited representative of the War Trade Board, in regard to all exports from and imports into Norway. The statistics which shall be furnished shall be forthcoming not later than thirty days after the period to which they shall have reference, and shall state in detail the name, description and quantity, the country of exportation 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 of any restrictions of, or prohibitions against exports, full particulars shall, upon request, be furnished to the War Trade Board or its accredited representative in regard thereto, and the Norwegian Government will use every effort within its power 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 [Page 1173] 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 agreement. The Norwegian Government shall have an opportunity to discuss with the representative of the War Trade Board the form of such undertakings. The War Trade Board reserves the right to refuse to accept guarantees which they have reason to believe are not offered in good faith. Such cases are to be explained to and discussed with the Norwegian branch associations.
3. Imports of the articles enumerated in the annexed schedules shall be distributed as evenly as possible throughout the year with due regard to seasonal requirements.
Norway is entitled to have at all times stocks of articles set out in schedules corresponding to at least three months actual needs.
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 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 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.
4. All food and feed stuffs included within the schedules of estimated requirements obtained from the United States, shall be purchased through, or with the approval of, the Food Administration, 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 Food Administration. The Norwegian Government will utilize the services of the Interallied Wheat Executive as their sole agent for the purchase of grain and flour everywhere except in the United States and European countries, and vessels engaged in carrying such grain and flour shall receive the same at any port outside the United States that may be designated by said Executive.
The War Trade Board assures the Norwegian Government that the said Food Administration and the Interallied Wheat Executive will use every effort within their power to assist Norway in securing such commodities.
5. No articles, including those mentioned in article III of this agreement, 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 hereafter imported from the United States, or hereafter imported from any country associated with the United States in the war, or whose importation shall be facilitated by the War Trade Board’s license for bunker coal and ships stores, or by the license or authority of any country associated with the United States in the war, shall be directly [Page 1174] 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). The foregoing shall be taken also to include any country, whether previously Allied or neutral, all or a portion of whose territory is now occupied by Germany or her allies, excepting France, Italy and Belgium.
6. No articles, including those mentioned in article III of this agreement, 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 hereafter imported from the United States or hereafter imported from any country associated with the United States in the war, or whose importation shall be facilitated by the War Trade Board’s license for bunker coal and ships stores or by the license or authority of any country associated with the United States in the war shall be directly or indirectly exported from Norway to any neutral country until after Norway shall have procured an agreement from such neutral country, with proper security for the enforcement thereof, that such commodities so exported shall not be directly or indirectly re-exported to Germany or her allies, nor shall any commodities which such articles so exported may serve to release be exported to Germany or her allies. The security mentioned above will be satisfactory to the United States as follows:
- For Switzerland—anything going through the S[ociété] S[uisse de] S[urveillance Economique].
- For Holland—anything exported through the N[etherlands] O[versea] T[rust].
- For Denmark—anything exported through the Danish associations.
- For Sweden—anything exported by means of Handels Kommission certificate.
Each of the foregoing associations will be satisfactory to the United States in the case of all articles which are included in the agreement between the respective importing association and the Governments of the associates of the United States, but in respect of articles not so covered Norway will not allow their export to any neutral country which does not effectively prohibit the export of such or similar articles or articles made from or by means of or released by them in any form whatsoever, without prior consultation with and the written assent of the representative of the War Trade Board.
In case the Swedish agreement with the United States and/or its associates in the war, if and when made, shall designate some other Kommission or Association, such designation shall be substituted for the Handels Kommission in this agreement.
[Page 1175]Article III
In consideration of the fact that Norway’s requirements of necessities will be secured by the United States and the Powers associated with her in the war, and in order to give the United States and said Powers opportunity to buy considerable quantities of Norway’s exportable surplus, the Norwegian Government agrees to the following restrictions of her exports to the Central Powers or their allies:
1. Norway will not export to the Central Powers or their allies foodstuffs of any kind except fish and fish products. Fish and fish products may be exported in quantities not to exceed 48,000 tons per annum, export weight.
The term “fish” shall be taken to include all categories of fish, both salt water and fresh water, including shellfish and marine animals, and the term “fish products” shall be taken to include the products of all fish as herein defined, whether fresh, salted, dried, smoked, canned or preserved in any way whatsoever, but there shall be no export to Germany or her allies of any oil or derivations thereof, of fish or of any marine animals. The quantity of fish and fish products which may be exported to Germany and her allies shall not exceed 15,000 tons in any three months and the amount which such export is more or less than 12,000 tons in any quarter must be deducted from or added to 12,000 tons the following quarter.
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 15,000 tons a year.
While this agreement is in force, no fish caught by Norwegian boats shall, without the written consent of the Norwegian Government, be landed elsewhere than in Norway, nor shall any such fish be transferred at sea except in collecting vessels which shall be obliged to land their cargoes in Norway only.
2. The export per annum of the following articles from Norway to the Central Powers and their allies shall not exceed:
- (a)
- Calcium carbide 10,000 tons.
- (b)
- Calcium nitrate 8,000 tons.
- (c)
- Ferro silicon 2,000 tons.
- (d)
- Iron ore 40,000 tons, no part of which shall be in the form of pyrites, nor any ores containing manganese. Besides this quantity to be exported of iron ore, there may also, as compensation, be exported a quantity of same containing iron equal to the amount of iron contained in the iron and steel goods exported to Norway from the Central Powers or their allies, plus 5 per cent for wastage. In no event, however, shall the [Page 1176] aggregate quantity of iron ore exported by Norway under this clause exceed for any twelve months the amount exported in 1917 as per schedule attached.
- (e)
- Zinc 1,000 tons. Besides this quantity to be exported of zinc there may also, as compensation, be exported a quantity of same containing an equal amount of zinc to that contained in goods exported to Norway from the Central Powers or their allies, plus 5 per cent for wastage. In no event, however, shall the aggregate quantity of zinc exported by Norway under this clause exceed the amount exported in 1917 as per schedule attached.
- (f)
- Aluminium, 40 tons.
The export of the foregoing articles, except by way of compensation, shall be distributed as evenly as possible over the year and the export of no article shall exceed half the annual quantity during the first six months.
3. Copper in the form of crude or refined copper or pyrites cinders 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 (in whatever form it may be) exported by Norway under this clause exceed 200 tons. Nothing herein contained shall be construed to authorize or permit the exportation to Germany or her allies of pyrites in any form, except pyrites cinders, provided the total quantity of copper so exported shall not exceed 200 tons.
4. The Norwegian Government agrees that during the continuance of this agreement the following articles shall not be exported from Norway to the Central Powers or their allies:
- Domestic animals or their products,
- Bismuth,
- Nickel,
- Wolfram,
- Chrome ore,
- Pyrites,
- Molybdenum,
- Nitrates, except the 8,000 tons calcium nitrate mentioned in article III, 2(b),
- Mica,
- Tin,
- Antimony,
- Manganese,
- Titanium.
5. The Norwegian Government agrees that the yearly export to the Central Powers and their allies during the continuance of this agreement of articles not mentioned in article III, paragraphs 1–4, shall not exceed the quantities exported to the said countries from [Page 1177] Norway in 1917, as given in the annexed schedule, marked H, nor include any other articles.
If Norway should desire to export to the Central Powers further articles not mentioned or additional quantities of those limited this will be sympathetically considered if the necessity should be shown therefor, but no such exports shall be made without prior written agreement with the War Trade Board.
6. In order to counteract the consequences of Norway having now for a long period of time had her supplies blocked, the moving of supplies to Norway, the stocks of which shall have been depleted, shall be undertaken with the greatest possible intensity, as soon as the present agreement comes into force.
7. Owing to the fact that the interest of a number of persons and firms who have hitherto carried on exports to the Central Powers will through the provisions of the present agreement be seriously interfered with, it is understood that in case such persons and firms guarantee to discontinue all exports to the Central Powers and their allies, except exports permitted by the provisions of this agreement and referred to hereinafter in this section, they shall not be discriminated against after the conclusion of this agreement, provided such export was not carried on in violation of any existing undertaking or of any Norwegian law.
It is understood and agreed that the persons, firms and corporations who may export to the Central Powers the commodities in the quantities hereinbefore provided for, or in section 2 of article III provided for, shall not, because of such export, be deemed enemies or be discriminated against by the United States or the nations associated with the United States in the war.
Article IV
By way of compensation for the allotment of Norway’s requirements, enumerated in the annexed schedules A, B, C, D, E and F, the Norwegian Government will authorize and permit the export, free of export taxes, of the following commodities to the United States or to any of the countries associated with the United States in the war:
- (a)
- Chemical products: nitrates, cyanamide, calcium carbide, silicium carbide and similar products;
- (b)
- Metallurgical products: aluminum, zinc, sodium, ferro silicon, ferro chrome, special steel hobnails and nails;
- (c)
- Minerals: iron ore concentrates and brickets, pyrites, molybdenite and other ores of the same class;
- (d)
- Wood and manufactures of wood: round timber, mainly pitprops, sawn planed wood, pulp (dry), chemical pulp (cellulose), paper and matches;
- (e)
- Fish and fish products;
and in granting export licenses for said commodities, which Norway hereby agrees to do, free of all taxes or charges, the Norwegian Government will give the United States and her associates preference over all other countries, except as hereinafter in this article provided, for such quantities of said commodities in excess of Norway’s genuine requirements for home consumption and as are hereinafter set forth.
It is understood that the preference just hereinbefore provided shall not apply with respect to the articles to be exported from Norway to the Central Powers in accordance with the provisions of section 2 of article III hereof.
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 (quantities are estimated in metric tons):
- 1.
- Chemical products: nitrates 112,000 tons, cyanamide 10,000 tons, calcium carbide 30,000 tons, silicium carbide and similar products 3,000 tons, total 155,000 tons.
- 2.
- Metallurgical products: aluminum 12,000 tons, zinc 20,000 tons, sodium 500 tons, ferro silicon 20,000 tons, ferro chrome 5,000 tons, special steel hobnails and nails 3,000 tons, total 60,500 tons;
- 3.
- Minerals: iron ore concentrates 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 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;
- 5.
- Fish and fish products 48,000 tons.
- 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.
- 6.
- Norway while this agreement is in force agrees that it will do nothing 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. Norway while this agreement remains in force agrees that it will do nothing which will have the effect of preventing an increase in the production of such articles and consequent increase in the export thereof to the United States and her associates where such increase can be effected without prejudice to the genuine Norwegian requirements for home consumption.
Nothing in this section contained shall however be construed to prohibit the enactment of laws for the protection or advantage of the laboring classes.
[Page 1179]Article V
Nothing herein contained shall be construed as in any manner modifying or changing the terms or conditions of any arrangements or agreements 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 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 agreement. If any agreement by the terms of which Norway is receiving from any country associated with the United States in the war, all or any part of any commodity needs provided for in the annexed schedules, shall, during the continuance of this agreement, be denounced or terminated at the instance of the Norwegian Government, then the quantity of any commodity which Norway would have been entitled to receive had she permitted the agreement so terminated to continue in force, shall be deducted from the quantities of such commodities set forth in the annexed schedules.
- 2.
- It is understood that the Norwegian Government shall have the right to control the import and distribution of all commodities imported into Norway, except as in this agreement provided; any commodity of a kind needed in a manufacturing plant whose import and distribution shall have been approved in this agreement 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, nothing in this section however to apply to food.
- 3.
- The Norwegian Government hereby declares that it is ready to, and does hereby authorize trade associations in Norway to negotiate with the Governments of the United States, Great Britain, France and Italy for the conclusion, revival, renewal, extension or modification of all agreements with said Governments, all such agreements when finally negotiated to be subject to the approval of the Norwegian Government. And the Norwegian Government hereby declares its readiness to permit the enforcement of any control, restriction or prohibition in regard to imports and exports, and the distribution thereof, provided for in any such agreements, as far as consistent with existing Norwegian law.
It is understood and agreed that this agreement shall commence to operate May 10, 1918.
In witness whereof, The War Trade Board has caused these presents to be executed by Vance C. McCormick, its Chairman, and Dr. Fridtjof Nansen, Special Representative of the Norwegian Government, has executed the same on behalf of Norway, this thirtieth day of April, nineteen hundred and eighteen.
By
Special Representative of the Norwegian Government