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

War Trade Board Files: Norwegian Imports Control

Proposed Common Form of Agreement between the Associated Governments and Norwegian Associations ¹

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The Governments of France, Great Britain, Italy, and the United States of America (hereinafter called “the Associated Governments”) being desirous of affording facilities for and expediting the passage of the articles hereinafter specified, and the _______ Association (hereinafter called “the Association”) being desirous of securing adequate supplies of these articles to cover the home consumption thereof in Norway, it is mutually agreed between the Associated Governments and the Association as follows:

1. The Association shall act as consignee for all the articles set forth in schedule A hereto, or which may hereafter be added thereto, imported into Norway by private persons, firms, and companies from all sources whatsoever, and undertakes to distribute them in accordance with the terms of this agreement. The word “articles” shall throughout this agreement be taken to include all and any of the articles referred to in this clause.

2. The Association shall control in the manner hereinafter provided the disposal of all articles and products of articles imported into Norway under this agreement. The word “products” shall throughout this agreement be taken to include all goods which are wholly or partly produced from or by means of articles imported under this agreement, and all by-products or waste resulting from the utilisation of such articles for the purpose of manufacture and all goods which are wholly or partly produced from or by means of such goods, by-products or waste.

3. It is the intention of this agreement that the Association shall not afford facilities for importing articles to persons, firms, or companies other than recognised members of the Association, unless the Inter-Allied Trade Committee at Christiania shall have expressly authorised the granting of facilities to such other persons, firms, or companies.

4. The Association shall not admit to membership any person, firm, or company who is not at the present time a recognised member of the Association without the previous consent of the Inter-Allied Trade Committee at Christiania.

5. The Association shall in no circumstances afford facilities of any kind to any person who is a subject of a country at war with any of the Associated Governments, or to any firm or company controlled or principally owned by any such person.

6. The Associated Governments shall have the right to notify to the Association, through the Inter-Allied Trade Committee at Christiania, the names of persons, firms, and companies, whether directly connected with trades benefited by this agreement or not, who they consider for any reason whatsoever should not be granted by the Association the certificates hereinafter referred to, or enjoy any benefit under this agreement, and to whom no articles or products should be sold by any member of the Association. Such notification shall include, for the strictly confidential information of the Committee for the time being of the Association, the reasons which actuate the Associated Governments in making such notification. The Associated Governments shall be entitled to notify persons, firms, or companies now on the list of persons, firms, and companies notified to the various Trade Associations in Norway under the previous agreement between His Britannic Majesty’s Government and those Associations without stating their reasons for notification as aforesaid, but in the event of any such person, firm, or company being already at the date of this agreement a member of the Association, the Associated Governments will consider any representation which the Association may make. Upon receipt of such notification regarding a member, the Association shall suspend the issue of the certificates hereinafter mentioned and the delivery of any articles to such member, and shall suspend him from membership until due explanations have been forwarded to the Inter-Allied Trade Committee at Christiania by the Association, and until the case has been subsequently discussed and an agreement reached between the said Committee and the Association. It is understood that, in communicating any explanation under this clause, the Association will communicate to the Inter-Allied Trade Committee at Christiania all facts or evidence, both for and against the member concerned, which may have been elicited on any enquiry made by the Association with reference to the conduct, or suspected conduct, of the said member.

7. Should the Association suspect or be informed by or on behalf of the Associated Governments that a member has not loyally and conscientiously fulfilled obligations undertaken, or has acted contrary to the spirit or in violation of the terms of this agreement or of any declaration given hereunder, the Association shall forthwith institute a strict enquiry as to the conduct of such member, and shall, until such enquiry has shown the suspicion to be unfounded, refrain from supporting applications for export licences or for shipping facilities on behalf of such member, and will detain all articles consigned to it on his behalf.

The Association may, however, with the express consent of the Inter-Allied Trade Committee at Christiania, continue to issue certificates in favour of such suspected member, provided that no goods are actually delivered to such member till suspicion has been removed.

In like manner the Associated Governments reserve to themselves the right to refuse export facilities and other facilities in favour of such member.

8. In the event of the conduct of any person, firm, or company being proved to have been contrary to the spirit or terms and intention of this agreement, or any undertaking given to the Association, the Association shall forthwith take all necessary measures to prevent a recurrence of such action, including the enforcement of any undertaking given by such person, firm, or company, and the institution of criminal proceedings under the law of May 14, 1917, if the conduct of the person, firm, or company concerned shall have rendered him or it liable thereto; and in particular, no further certificates shall be issued to or on behalf of such person, firm, or company, even though such person, firm, or company be a member of the Association, without the written consent of the Inter-Allied Trade Committee at Christiania, and the Association will also in all cases communicate at once to the said Committee the name of such person, firm, or company, and the reasons which have prompted it in arriving at its decision. The name of any member to whom the Association refuses the issue of its certificates under this clause, or any member, person, firm, or company notified to the Association under clause 6, shall be communicated by the Association to its members, and no member shall sell or deliver, either directly or indirectly, any articles or products to any such member, person, firm, or company, or directly or indirectly assist any such member, person, firm, or company to import or purchase or obtain or get control of any articles or products. It is expressly stated that such acts or dealings on the part of a member shall constitute conduct on the part of such member involving his exclusion from all benefits of membership of the Association under this agreement.

9. The Association shall report to the Inter-Allied Trade Committee at Christiania the names of all persons, firms, and companies suspended or excluded from membership, or to whom the Association will not issue the certificates hereinafter referred to; and it is understood and agreed that the Association will at all times communicate freely and frankly with the said Committee as to all such suspensions and exclusions from membership, refusals of certificates, and, if requested so to do by the said Committee as to applications for membership which have been refused, and as to reasons of the Association for the decision arrived at in each case.

10. Subject to due observance of this agreement the Associated Governments agree, as regards articles coming from their own territories, that they will, so far as is consistent with their general policy, with their own and each other’s requirements and the requirements of their co-belligerents, and with the necessity of making provision for the reasonable requirements of other neutral countries, grant licences for the export of articles to the Association, and, as regards articles coming from other countries, that they will allow such shipments to proceed as expeditiously as possible, provided:

(a) That the total quantities of articles imported into Norway shall not exceed the amounts fixed under clause 19 of this agreement.

(b) That the articles shall be carried in vessels flying the Norwegian flag, unless the Associated Governments shall have expressly agreed to their being carried in vessels of some other nationality.

(c) That the Associated Governments expressly reserve their belligerent right of visit, search and detention in regard to vessels carrying articles belonging to, or intended for, the Association or any member; and nothing in the agreement shall be deemed to prevent the detention of articles or the institution of proceedings in prize in cases where the Associated Governments are in possession of information which, in their opinion, justifies the detention or institution of proceedings.

(d) That in the case of shipments of articles from countries in which the system of letters of assurance is in force, the Association and its members will take steps to ensure that the articles are duly covered by letters of assurance.

11. All consignments of articles to be imported into Norway by the Associations shall be covered by a certificate issued by the Association in the form contained in schedule B hereto. Two copies of each certificate shall be forwarded by the Association to the office of the Inter-Allied Trade Committee in Christiania. In the case of articles to be imported from the territories of the Associated Governments a third copy, similarly authenticated, shall be given to the intending importer of the articles, who will hold it at the disposal of the licensing authorities of the country of origin of the goods as and when required by them. In order that the passage of the vessels carrying articles may not be delayed, the copies of certificates filed in the office of the Inter-Allied Trade Committee at Christiania will be sent to the said office as long as possible before the carrying vessel is expected to leave the port of shipment of the articles. These certificates shall be numbered consecutively, and manifests of steamers carrying consignments hereunder shall indicate the number of the certificates of the Association in respect of the particular consignment.

12. Every bill of lading shall contain the name of the person, firm, or company for whom any articles are actually intended but not so as to give that person, firm, or company the right to obtain the articles without the endorsement of the bill of lading by the Association. All shipments shall be made direct to Norway, unless permission is obtained from one of the Associated Governments to ship articles to the territory of each Government, in order to be reexported to Norway under a licence issued by such Government.

13. The Association undertakes that it will not issue the certificates referred to in clause 11 hereof or deliver any articles unless it has first obtained from the member concerned a declaration in the form contained in schedule C hereto, and unless it is satisfied that the quantities of articles which such member wishes to import represent his current requirements and are not unreasonably in excess of the average annual imports (if any) by such member individually during the years 1911—1912, and 1913, reasonable allowance being made for the development of such member’s trade or business.

13a. The Association will take every possible precaution to ensure that the declarations given by the persons, firms, or companies to whom the goods are first delivered shall be duly carried out. The Association will also use all possible endeavours to ensure that all subsequent holders of the articles and products observe the declarations given in respect thereof, and will not supply, and will do its best to prevent the supply, of articles and products to any person, firm, or company who has been guilty of the export or attempted export of articles or products contrary to the terms of this agreement.

14. The Association undertakes that, in issuing its certificates and facilitating imports by individual persons, firms, and companies, equitable provision shall be made for the needs of persons, firms, and companies engaged in the production of articles to be exported to the territories of the Associated Governments or their co-belligerents or to be supplied to persons, firms or companies, engaged in the production of articles to be exported to the said territories. The Association shall take into consideration any representations which may be made to it by the Associated Governments, or any of them, on behalf of any person, firm or company which complains that equitable provision is not made for his or its needs as provided in this clause.

15. The Association undertakes that it will not part with the control of any articles unless and until it shall have been satisfied that the packing of the articles is covered by an approved undertaking. This undertaking shall be the recognised textile coverings declaration, if the goods are packed in textile coverings, and shall be the “ordinary undertaking” or such other form of declaration as may be adopted in place of the ordinary undertaking for this purpose, if the goods are packed in barrels, casks or drums.

16. The Association hereby undertakes that articles imported into Norway in accordance with the terms of this agreement will not be exported from Norway except to Allied destination and save in the case of such export aforesaid will be consumed and used exclusively in Norway. The Association will use its best endeavours to secure that no articles or products shall be used directly or indirectly in any way to the detriment of the Associated Governments or their co-belligerents, nor to the direct or indirect benefit of the Government of, or any person resident or carrying on business or being in, a state at war with any of the Associated Governments.

17. The Association hereby undertakes that all products shall be used or consumed exclusively as follows:

(a) In Norway;

(b) For export to the territories of the Associated Governments or their co-belligerents, not including any territories of the Associated Governments or their co-belligerents which are occupied by the military forces of any state at war with any of the Associated Governments, or any country, whether previously Allied or neutral, all or a portion of whose territory is now occupied by Germany or her allies, except France, Italy or Belgium;

(c) For export to neutral countries, subject to the provisions of section 6 of article 2 of the agreement of April 30, 1918, between the United States War Trade Board and the Norwegian Government.

18. All the clauses of this agreement, where applicable, shall apply with equal force to all stocks of articles and products in the possession or under the control of any member of the Association, and to all articles and products (even though not imported under the terms of this agreement) which any such member may purchase or obtain, or have purchased or obtained, in Norway or elsewhere.

19. It is agreed that the quantities of articles to be imported into Norway under this agreement shall be fixed for the year beginning on the 10th day of May, 1918, at the amounts shown in schedule A hereto. The quantities of articles to be imported in subsequent years shall be fixed by mutual agreement subject to any stipulations contained in the agreement of April 30, 1918, between the United States War Trade Board and the Norwegian Government.

20. The quantities of articles importable under this agreement shall be held sufficient to cover the bona fide requirements of Norway in respect of such articles for all purposes. Subject to the provisions of clause 21 the agreed quantities shall include all imports of such articles from all sources, and, if any such articles are imported into Norway from any source otherwise than under the terms of this agreement, the agreed quantities shall be correspondingly reduced.

21. The Associated Governments reserve to themselves the right to facilitate the direct import of articles over and above the quantities provided in clause 19, by persons, firms, and companies whether members of the Association or not, who are engaged in the production of articles to be exported to the territories of the Associated Governments or their co-belligerents or to be supplied to persons, firms, or companies engaged in the production of articles to be exported to the said territories. Articles so imported shall not be included in the quantities shown in schedule A hereto, but nothing in this clause shall dispense the Association from the obligation to make equitable provision for the needs of the persons, firms, and companies in question as provided in clause 14.

22. Imports of articles shall be distributed as evenly as possible throughout the year, with due regard to seasonal requirements, and the Association will, so far as it is concerned, be governed generally by the stipulations contained in section 3 of article 2 of the agreement of April 30, 1918, between the United States War Trade Board and the Norwegian Government.

23. It is expressly understood that all articles imported after the 10th day of May, 1918, until such time as this agreement is in force, shall be treated as part of the agreed quantities as specified in schedule A hereto attached which shall be reduced accordingly, and the Association shall only import up to such reduced quantities. The Association shall furnish to the Inter-Allied Trade Committee at Christiania, as soon as this agreement comes into force, statements showing the quantities of articles so imported.

24. The Association will at all times endeavour to obtain particulars of all articles imported outside this agreement, and will communicate same to the Inter-Allied Trade Committee at Christiania. Such particulars and information shall be communicated fully and freely as soon as they are received, and without the Association being asked for them.

25. If any of the Associated Governments should seize or detain articles from neutral countries on their way to Norway, or refuse applications for licences to export goods from their territories to Norway, notwithstanding that such goods are covered by a certificate issued by the Association, the Government concerned will, if requested by the Association through the Inter-Allied Trade Committee at Christiania to do so, and as far as is reasonably possible and compatible with their interests, inform the Association of the reasons which have prevented them from according facilities or granting export licences, and will consider any representations which may be made by the Association.

26. The Association will establish a bureau for the purposes of this agreement, and will, if so requested by the Inter-Allied Trade Committee at Christiania or by the accredited representation of any of the Associated Governments, furnish the fullest particulars concerning the disposal of any articles covered by this agreement, together with all necessary documents relating to such disposal. The Association shall, at the request of the said committee or of such accredited representation, cause the books, records, and documents of any member to be examined by the Revisions Bank or by a Norwegian chartered accountant mutually agreed upon between the said committee or such accredited representative and the Association, and shall transmit the result of such examination for the confidential information of the Associated Governments.

27. The Association shall furnish to the Inter-Allied Trade Committee at Christiania, within 30 days after the termination of each period of three calendar months, calculated from the same date as that fixed for the beginning of the first of the monthly statistical periods contemplated in section 2 of article 2 of the agreement of April 30, 1918, between the United States War Trade Board and the Norwegian Government, quarterly statements showing:

(a) Quantities of articles which have arrived in Norway consigned to the Association, with particulars of each consignment included, and the name and date of arrival of the carrying vessel;

(b) Quantities of articles for which the Association has issued certificates;

(c) Quantities and particulars of exports from Norway of products in respect of which the Inter-Allied Trade Committee at Christiania or the accredited representatives of any of the Associated Governments shall have requested that this information should be furnished;

(d) Stocks held by or under the control of members of the Association of articles and products in respect of which the Inter-Allied Trade Committee at Christiania or the accredited representative of any of the Associated Governments shall have requested that this information should be furnished.

28. This agreement shall remain in force for the duration of the present war, subject to the condition that either party, that is to say, the Associated Governments jointly or the Association, shall have the right to denounce this agreement on giving the other in Christiania 14 days’ notice in writing. In the event of the Association failing to explain satisfactorily, when requested so to do, any circumstances which inspire the Associated Governments with suspicion, the Associated Governments may denounce it forthwith.

29. Any termination of the agreement under clause 28 shall not effect [affect] obligations incurred under the agreement in respect to articles imported into Norway in accordance with the terms of the agreement even though they should have arrived in Norway subsequently to the date of such termination.

30. This agreement shall not come into force until the Associated Governments are satisfied that it has the approval of the Norwegian Government.

1. This draft agreement was forwarded to the War Trade Board by its agent at London, Mr. L. P. Sheldon, as enclosure to a despatch dated June 7, 1918, which is included in a different file—Control Machinery, Norway, vol. I.