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

Agreement between the War Trade Board of the United States and the Merchants’ Guild of Copenhagen and the Danish Chamber of Commerce¹

The War Trade Board, an administrative agency empowered by Executive order of the President to license exports from the United States, hereinafter designated as the Board, and the Merchants’ Guild of Copenhagen and the Danish Chamber of Manufacturers, hereafter jointly designated as the Associations, have considered the commercial relations between the United States and Denmark, during the continuance of the present war, for which period this agreement shall continue, subject to termination at the end of twelve months by the Associations upon their giving three months prior notice in writing of their intention to terminate the same.

The Board and the Associations have agreed as follows:

Article I

1. The powers of the Board are administrative and pertain wholly to the Nation’s domestic or internal affairs.

2. In consideration of the stipulations hereinafter set forth, the Board agrees to license the export, or facilitate the obtaining, as the case may be, of the commodities enumerated in the schedules hereto annexed and made a part hereof.

3. If sufficient quantities of any of said commodities are not deemed available for exportation from the United States at the time when they are required, export licenses shall be granted for as great a part thereof as are available, compatible with the rules and regulations set forth in this agreement. And in such cases if there are in the United States commodities that can be spared which are capable of use as substitutes for the commodities named in the schedules, licenses will be granted for their export. And the War Trade Board will render such assistance as lies in its power to enable said associations to secure elsewhere the commodities enumerated in said schedules. And said Board will grant licenses for bunker fuel and ships stores under their rules governing the same to vessels transporting the same commodities to Denmark from the United States or other countries.

Vessels carrying supplies to Denmark in compliance with the present agreement shall not in any way be hindered, held or seized by the United States or the Governments associated with it in this war, subject however to the exercise by the Allies of the right of visit and search.

4. The schedules annexed hereto are intended to set forth an estimate of Denmark’s actual needs. In the event Denmark’s needs exceed such estimates, requests for additional quantities of the commodities enumerated in said schedules with appropriate data in support of such requests may be presented for the consideration of the War Trade Board, but nothing herein contained is intended as an assurance that licenses will be granted for such increased quantities.

Denmark’s genuine requirements for home consumption of articles not mentioned in the schedules attached hereto will also, without present commitment, be taken into favorable consideration by the War Trade Board.

Article II

In consideration of the granting of such export and bunker and ship stores licenses for the exportation from the United States and other countries to Denmark of the commodities enumerated in the annexed schedules, the Associations agree to the following stipulations:

1. The quantities of the several commodities set forth in the schedules annexed, for which licenses may be granted, are based upon the total estimated import needs of Denmark (exclusive of imports from the Central Powers, provided they originated in the territory of said Powers) 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 Denmark is enabled to import from all other countries (except the Central Powers as above) shall, as and when imported, be deducted from the quantities of the several commodities enumerated in said schedules. It is understood with respect to commodities in the schedule imported from Finland or Russia, that each two tons shall be counted upon as only the equivalent of one ton imported from elsewhere.

The commodities described in the said annexed schedules are to be imported for consumption in Denmark; 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 actual internal requirements of Denmark, with due regard to existing stocks and to the importation into Denmark from countries where the license of the Board is not required, other than the Central Powers as aforesaid, of like commodities or commodities capable of use as substitutes for those described in the annexed schedules.

No articles imported into Denmark under the provisions hereof shall be directly or indirectly exported from Denmark to the Central Powers nor shall any articles released by such importation be exported from Denmark to the Central Powers.

2. No articles shall be exported by Denmark to any other neutral country for exportation directly or indirectly to Germany or her allies, nor shall any articles be exported to any other neutral country in any case where such exportation will directly or indirectly serve to release for export to Germany or her allies any article or commodity in such neutral country of whatever origin.

3. The Associations will furnish the Board with guarantees similar to those which they have undertaken to issue to the British Government under the Anglo-Danish trade agreement of November 19, 1915, and will use every effort within their power in regard to the effective enforcement of all export prohibitions, regulations and restrictions.

4. 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 Associations that may from time to time be made in regard thereto. And the Associations will from time to time freely consult with the Board as to the oversea sources from which the articles which are to be imported into Denmark shall be obtained.

5. No commodities which the United States or its associates in the war will furnish to Denmark shall be used in the production of any commodity to be exported to the Central Powers. If any commodity or any part thereof imported under this agreement by Denmark shall be exported or re-exported to any neutral country such commodities shall be exported or re-exported on the express condition that they shall not be exported or re-exported by such neutral country to the Central Powers, and the Associations undertake to take such steps as will effectively prevent such re-export to the Central Powers. With respect to such non re-export, the following guarantees will be satisfactory to the Board until written or telegraphic notice to the contrary:

• For Switzerland—Agreement of the S[ociété] S[uisse de] S[urveillance Economique];
• For Holland—Agreement of the N[etherlands] O[versea] T[rust];
• For Sweden—Handels Kommission certificate or the guarantee of such association or associations as may be at the time of such exports acting under the agreement between Sweden and the Associated Governments.
• For Norway—Such association or associations as may be acting at the time of such export under the United States-Norwegian agreement.

6. It is further guaranteed by the Associations that lubricating oils, kerosene and gasolene received from the United States shall not be employed in factories or in manufacturing plants of any kind operating to produce commodities for export to Germany except as follows:

To avoid inconvenience which will result from the literal enforcement of the preceding paragraphs in regard to the use of lubricating oil, kerosene and gasolene in the catching of fish for whose export to the Central Powers provision is made in the note of the Danish Minister of even date herewith, it is stipulated that said prohibitions shall not be applicable to exports of the quantity of fish provision for the export of which is made in said note, provided that the Central Powers shall furnish in advance of the export of the fish intended for said Powers oil in the ratio of about one ton for each ten tons of fish so to be exported.

To avoid like inconvenience in regard to the oil, kerosene and gasolene employed in the manufacture of butter and bacon in dairies and pig slaughteries, the product of which shall be in part supplied to Germany and in part to the other Scandinavian countries and Great Britain, it is agreed that the prohibition contained in the note of the Danish Minister aforesaid shall not limit the right to use oil, kerosene and gasolene obtained from the United States and her associates in Danish dairies and pig slaughteries in which only dairy products and pork products respectively are produced.

7. The Associations agree not to issue any import guarantee to or for any person or firm or corporation on the statutory or enemy trade lists, and the Associations agree with respect to persons, firms or corporations, concerning whom they receive notice that they are suspected of enemy affiliations, to grant only temporary guarantees pending examinations of proofs under the rules now governing under the Anglo-Danish agreement.

8. The Associations agree to furnish or procure the furnishing of the same guarantees as under the Anglo-Danish agreement with respect to all commodities imported into Denmark from Norway and/or Sweden with respect to their non re-export to the Central Powers, and the Associations further agree that no articles shall be directly or indirectly released by the importation of commodities imported from Sweden and/or Norway for exportation to the Central Powers.

Article III

1. It is understood and agreed that the persons, firms and corporations who may export to the Central Powers commodities in the quantities in the note of even date herewith from the Danish Minister to the Chairman of the War Trade Board provided for shall not, because of such export by them, be deemed enemies or be discriminated against by the United States or the nations associated with the United States in the war.

Article IV

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 Denmark and France, Italy or Great Britain providing for the prohibition or restriction of exports from Denmark, nor the terms or conditions of any arrangement or agreement between the Governments of Denmark and France, Italy or Great Britain, or the terms or conditions of any guarantees given to or agreement made with those governments by Danish citizens or firms which either is now in force or which having been in abeyance owing to the suspension of imports into Denmark, may be revived when such imports recommence under the terms of this agreement. If any agreement by the terms of which Denmark 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 Danish Government, then the quantity of any commodity which Denmark 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.

War Trade Board
By

Vance C. McCormick

, Chairman
Merchants’ Guild of Copenhagen
and
Danish Chamber of Manufacturers
By

Harald Nielsen

Dated: 18 September, 1918.

Annual Quantities of Supplies for Denmark under General Agreement with the United States

FOODSTUFFS

Schedule A

Commodity	Quantities in metric tons	Notes
Corn starch	1,000
Rice	4,000	Conditional upon no cereal or cereal products exports to Central Powers—if further quantity would be agreed conditional upon an equal quantity of cereals being exported to approved destinations.
Sago and tapioca and products	3,000	Do.
Pork casings	300	To be obtained in Holland.
Cocoanut, desiccated	150
Apricot and peach kernels	100
Other nuts and kernels	500
Glucose	250
Apples, bananas, citrus fruits	7,000	Conditional upon no fruit or berries being exported to Central Powers in any form.
Dried fruits	3,000	Do.
Canned fruits	200	Do.
Coffee	16,000
Tea	600
Cocoa	2,000	Subject to examination of existing stocks and reported recent imports, and as to 1,000 tons, subject to negotiations and the release of detained cocoa.
Spices, not including cumin	500	To be obtained in Holland but failing this to be reconsidered as to point of origin.
Pepper	140	Do.
Stearine	600
Total	39,340

FUELS AND OILS OTHER THAN EDIBLE

Schedule B

Commodity	Quantities in metric tons	Notes
Kerosene, gasoline, lubricating oils and greases, crude petroleum and dark refuses.	80,000	Including not over 7,000 tons lubricating oils.
Castor oil (medicinal)	10
Linseed oil	6,000	Equivalent in linseed provided the cake resulting therefrom is immediately reexported to approved destinations, and in any case not more than one-quarter of annual quantity of seed and/or cake shall be in Denmark.
Paraffine	400
Soaps and powders	400
Total	86,810

METALS, MACHINERY AND INSTRUMENTS

Schedule C

Commodity	Quantities in metric tons	Notes
Copper and manufactures of (including brass).	3,500
Brass wire	34
Brass wire screens for paper making.	20
Brass screws	36
Iron and steel products, including shipbuilding material.	150,000	Shipbuilding material to be subject to special agreement.
Electric lamps	70
Motors, automobiles and parts (excluding tires).		Quantity to be in accordance with actual Danish requirements for home consumption.
Electrical machinery		Do.
Bicycles and bicycle parts (excluding tires).		Do.
Typewriters, accounting machines, office equipment supplies.		Do.
Sundry machinery and parts (if approved).		Do.
Manganese dioxide	600
Nickel and manufactures	14
Antimony	25
Hand tools of various kinds		Do.
Aluminum and manufactures	132
Lead and manufactures	3,000
Tin and tin plate		Quantity to be later agreed.
Zinc sheets	300
Zinc and manufactures	2,700
Silver and manufactures	14
Hardware		Quantity to be in accordance with actual Danish requirements for home consumption.
Total	160,445

FIBRES AND THEIR PRODUCTS

Schedule D

Commodity	Quantities in metric tons	Notes
Raw cotton and cotton waste	5,000
Cotton thread and yarn	2,000
Cotton manufactures	4,000
Hemp	3,000
Cordage	800
Jute	420
Silk manufactures	200	Subject to existing stocks and recent imports and not to include present list of silk manufactured goods now imported and classified as non-essentials.
Binder twine	1,600	To be modified in accordance with acreage to be machine-harvested, at rate of 2 kilos per acre.
Wool shoddy and yarn	1,500
Woolen goods	1,200
Vegetable fibres	1,000	To consist of fibre suitable for and to be used mainly for brooms, brushes and matts. A statement of the actual use to be submitted to the War Trade Board.
Total	20,720

NON-EDIBLE ANIMAL AND VEGETABLE PRODUCTS

Schedule E

Commodity	Quantities in metric tons	Notes
Cork and manufactures	1,200
Heavy hides	3,000	Conditioned upon the export to Norway and/or Sweden of entire exportable surplus. No stock to be accumulated in Denmark of hides as such or in manufactured form.
Leather soles, upper leather, belting, lacquered and dyed leather.	800
Boots and shoes	280
Leather goods (manufactured)	200
Crude rubber	130
Bicycle tires	100
Rubber footwear	100
Machine packing	100
Motor and motorcycle covers and tubes.	250
Other rubber articles and manufactures.	100
Tobacco	5,700	Time of commencement of imports to depend on existing stocks.
Feathers	700
Various glues and limes	500
Total	13,160

WOOD, PULP, PAPER, PLANTS AND SEEDS FOR SOWING

Schedule F

Commodity	Quantities in metric tons	Notes
Various woods (not including walnut, spruce or mahogany).	300	Furniture and other approved manufactures in accordance with Danish needs.
Flower bulbs	740
Timothy and other grass seeds (not including clover seed of any variety).	1,250
Vegetable tanning materials (30% extract).	6,000
Bamboo	100
Total	8,390

CHEMICALS, DRUGS, EARTH, MINERALS AND MISCELLANEOUS

Schedule G

Commodity	Quantities in metric tons	Notes
Lime borate	200
Coal pitch	600
Calcined soda, caustic soda, soda ash	12,500
Sulphur	270
Citric acid	20
Vegetable wax	70	Beeswax not to exceed 20 tons. Vegetable wax up to a further 50 tons as a replacement of proved exports to approved destinations in manufactured form will be allowed, making a maximum quantity of 120 tons.
Tragacanth and various gums	90
Shellac	90
Turpentine, refined	15
Turpentine oil	500
Mineral turpentine (for varnish)	300
Zinc lead and other paints	2,500
Varnishes	700
Wood tar	900
Resin	1,500
Chemicals (if approved)		Quantity to be in accordance with actual Danish requirements for home consumption.
Drugs, medicines and medicinal supplies, including mercury in medicinal form and for medicinal purposes and including instruments.		Do.
Graphite	100
Asbestos (no crocidolite)	275
Asphalt (not petroleum residue)	3,250
Talc	150	To be obtained in Norway.
Sanitary goods		Quantity to be in accordance with actual Danish requirements for home consumption.
Total	24,030
Grand Total	352,895

1. The texts of this and the following agreement and letter are those of the War Trade Board’s confidential print. The final draft of each in the War Trade Board files bears the notation “approved” with the signatures of R. S. Hudson of the British Embassy and Grimprel of the French High Commission.