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

War Trade Board Files

The Chairman of the War Trade Board ( McCormick) to the Danish Minister ( Brun)¹

Washington, September 18, 1918.

Sir: An agreement between the Merchants’ Guild of Copenhagen and the Danish Chamber of Manufacturers on the one part and the United States War Trade Board on the other part regarding the supply of certain commodities to Denmark and for other purposes, and another agreement between the Danish Special Shipping Committee on the one part and the United States War Trade Board on the other part, having been signed here at Washington, D. C, today by the respective representatives, the undersigned War Trade Board of the United States, by Vance C. McCormick, Chairman, wishes to state as follows with regard to the understanding and carrying into effect of the two agreements.

(1) It is understood that in all cases the Danish Government will take all such steps as may be required to enable the Associations to fulfill the obligations undertaken by them in the said 0agreements, and that no dispensation will be granted by any Danish Ministry in conflict with the provisions of the agreements.

(2) It is understood that the Danish Government, in view of the desire of the War Trade Board of the United States that an embargo in relation to the Central Powers should be declared with regard to the exportation of eggs, lard, cheese, milk, tallow, fats, fish-oil, whale-oil and all other oils and fats, excepting bacon and butter, will make the export prohibitions effective in the sense desired for all articles with the following exceptions:

Butter, bacon, eggs, milk and cheese (milk and cheese to be reckoned according to their butter value) may be exported to the Central Powers in quantities not to exceed in the aggregate in any one year twenty-four thousand two hundred (24,200) tons at a rate not to exceed four hundred (400) tons per week from September to April, inclusive, and at a rate not to exceed six hundred (600) tons per week from May to August, inclusive, except as follows:

(a) Denmark shall be under obligations first to export to Sweden and Norway at least thirty per centum of her total exportable surplus of butter, bacon, milk and cheese and at least twenty-five (25) per centum of her total exportable surplus of eggs. Fifty (50) per centum of the exportable surplus remaining after Norwegian and Swedish requirements have been met as above may be exported to Germany, provided that they do not exceed the tonnage per week permitted above.

(b) Denmark shall be entitled, during any two weeks, to defer all or any part of the amount she has the right to export hereunder, and such amount as she may defer exporting she shall make up in any following week or weeks by adding such deferred export to the amount she has the right hereunder to export weekly. The foregoing privilege of deferring shall not be cumulative.

(c) Denmark shall also be entitled during any two successive weeks, irrespective of whether she is or is not entitled to export a surplus by reason of having previously refrained from exporting her whole weekly allotment, to increase her export by an amount not in excess of two weeks allotment, provided such increase shall during the successive two weeks be deducted from the amount she has the right to export hereunder.

The foregoing quantities to the Central Powers are conditioned, however, that such export shall not reduce Denmark’s exportable surplus of said articles to such an extent as to prevent the exportation to Great Britain of an amount equal to such authorized exports to the Central Powers, provided Great Britain elects from time to time in advance (as hereinafter provided) to purchase her quota thereof. And monthly exports to Great Britain of quantities of each of said articles equal to the export thereof to the Central Powers are agreed to by the Danish Government in case Great Britain elects to purchase, as hereinbefore and hereinafter provided.

Great Britain shall give the Danish Government at the date when this arrangement begins to operate notice as to whether she will elect to take at the average price received for the same commodity exported to countries other than the Central Powers (unless satisfactory arrangements can be made by negotiation) her quota for the succeeding four weeks of butter, bacon, eggs, milk and cheese and every four weeks thereafter she shall be under obligation to give similar notice of her election to take said commodities at a price to be ascertained in the same manner. Up to, but not after, December 1, 1918, Denmark may include in and as a part of said four hundred (400) tons per week of butter, bacon, eggs, milk and cheese, twenty-five (25) tons of waste fats, other than tallow, and, in view of the fact that Denmark is to cease exporting tallow and is also from and after December 1, 1918, to cease exporting other waste fats to the Central Powers, for all of which Denmark has been receiving by way of imports from the Central Powers stearine, X-ray machines and hospital supplies, it is understood that the Associated Governments are to supply the needs of Denmark with respect to stearine and also with respect to X-ray machines and hospital supplies after December 1, 1918.

Denmark may also, between the date this arrangement becomes operative and December 1, 1918 (but not thereafter), export to Germany each week the entrails and intestinal parts of not exceeding five hundred (500) head of slaughtered cattle.

(3) It is understood that Denmark will permit the export to the United States and her associates in the war of any commodities needed by them which she can spare, except the quantities of commodities the exportation of which to Germany is expressly provided for.

It is also understood that while the agreement of even date made between the War Trade Board and said Associations is in force, Denmark will do nothing that will have the effect of interfering with exports to the United States or to any country associated with the United States in the war, or which will have the effect of preventing an increase in the production of any of the articles or commodities and a consequent increase in the export thereof to the United States and her associates where such increase can be effected without prejudice to the genuine requirements of Denmark for home consumption. It being understood, however, that this will not place any obligation on the Danish Government to issue export licenses in contravention of international law hitherto followed by the Danish Government in regard to exports to belligerent countries.

(4) While the agreements above mentioned continue in effect the Danish Government will see to it that complete statistical information shall be furnished monthly from the date hereof to the accredited representative of the Board in regard to all exports from and imports into Denmark, except such imports from the Central Powers as may not be included in any of the provisions of this agreement. The statistics to 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 origin and country of destination of each commodity imported and exported, and the names of the ships or vessels carrying the commodities with the amount carried by each ship or vessel, and shall include statistics in regard to trade with both neutrals and belligerents, except statistics of such imports into Denmark from the Central Powers as may not be included in any of the provisions of this agreement. If any question shall arise in respect to the observance of any restrictions of or prohibitions against exports, upon request the Danish Government will cause full particulars to be furnished to the Board or its accredited representative in regard thereto.

(5) It is understood that with regard to petroleum received by Denmark under the agreement that four thousand (4,000) tons a year may be used for fishing purposes or in the fishing industry, provided that Denmark receives two hundred (200) tons of petroleum a month from Germany for fishing purposes, and such oil is to be delivered monthly by Germany in advance of the export to her of fish by Denmark.

The Danish Government agrees to see to it that there will be no export from Denmark to the Central Powers or their allies of any fish of any kind, except as follows:

Fish and fish products may be exported in quantities not to exceed twenty-five thousand (25,000) tons per annum, the weight to be taken in terms of fresh fish.

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 derivatives thereof of fish or any marine animals.

Inasmuch as practically all fishing is done in Denmark during about nine months of the year, that period is used hereafter in computing her monthly export, and the quantity of fish and fish products which may be exported to Germany and her allies shall not exceed two thousand seven hundred and seventy-seven (2,777) tons in any month, but Denmark shall be entitled to defer her right to export to the extent of one thousand three hundred and eighty-eight (1,388) tons, and such amount as she may so defer exporting she may make up in any succeeding month or months by adding such deferred export to the amount she has the right hereunder to export monthly.

Denmark shall also be entitled during any month, irrespective of whether she is or is not entitled to export a surplus by reason of having previously refrained from exporting her whole monthly allotment, to increase her export by an amount not in excess of one thousand three hundred and eighty-eight (1,388) tons, provided such increase shall, during the succeeding month, be deducted from the amount she has the right to export hereunder.

The foregoing monthly allotment of two thousand seven hundred and seventy-seven (2,777) tons per month is not, however, to be construed in any event as permitting Denmark to exceed an export to the Central Powers of twenty-five thousand (25,000) tons as a total for the year.

While this arrangement is in force no fish caught by Danish boats shall be landed elsewhere than in Denmark, nor shall any such fish be transferred at sea except in collecting vessels which shall be obliged to land their cargoes in Denmark only.

(6) The Danish Government agrees to see to it that there shall be no export from Denmark to the Central Powers or their allies of any cattle, except as follows:

Cattle may be exported from Denmark to the Central Powers in number not to exceed two hundred and twenty-six thousand (226,000) head per annum at a rate per week not to exceed four thousand (4,000) head per week from January to October, inclusive, and six thousand (6,000) head per week in November and December, except that at any one time there may be allowed a two weeks anticipation of exports, so that, for example, there may be exported from Denmark in the first week of September twelve thousand (12,000) instead of four thousand (4,000) head of cattle, but in this event there could be no further export of cattle for the succeeding two weeks of September.

Denmark shall also be entitled during any two weeks to defer exporting all or any part of the number of cattle she has the right to export hereunder, and such number as she may so defer exporting she may make up in any following week or weeks by adding such deferred number to the amount she has the right to export weekly. The foregoing right to defer shall not be cumulative.

The foregoing limitation is intended to limit cattle and all products of cattle to the equivalent of four thousand (4,000) head on the hoof per week from January to October, inclusive, and to six thousand (6,000) head on the hoof per week during November and December.

To the extent of but not to exceed fifteen (15) per centum per month of the exports provided for above, dressed beef instead of live cattle may be exported and to the extent such dressed beef is exported, and no further, the products thereof may be separately exported.

The exportation to the Central Powers of the foregoing number of head of cattle is conditioned, however, that such export shall not interfere with Denmark’s exporting monthly to Norway and Sweden at least thirty-five (35) per centum of her exportable surplus of cattle.

(7) It is understood that Denmark will limit the export of horses to the Central Powers to two thousand five hundred (2,500) horses per month.

(8) In consideration of the provision of the agreement with respect to the War Trade Board’s licensing tanning materials and heavy hides, it is understood that Denmark will prohibit the export of hides to the Central Powers except to the extent hereinbefore permitted on account of her export of dressed beef.

(9) It is understood that Denmark is free to continue the export to Germany of the following articles and no others, except as hereinabove provided, in the quantities or of the value, as the case may be, set opposite each item:

DANISH EXPORTS TO GERMANY

Extracts and essences (except alcoholic and etheric) tons	34
Sawdust and manufactures thereof tons Firkins, casks and other	29
coopers’ work tons	1,654
Wooden shoes tons	158
Butter and cheese color, tons	3
Rennet and cheese powder, tons	15
Other goods of chemical, technical nature tons	9
Brick, floor tiles do	718
China and house utensils, tons	6
Garden and agricultural implements tons	48.3
Agricultural and dairy machinery tons	78
Machinery parts (agricultural and dairy machinery only) tons	63
Books and printed matter tons	33
Spirits h. 1	214
Liqueurs do	124
Beer, mead, etc do	37,311
Slaughtered poultry ton	1
Birds’ eggs scores	15,300
Hay tons	87
Kalkuld do	43
Seaweed do	668
Waste paper, etc tons	726
Peat do	1,047
Gravel, paving stones, flints, tons	11,113
Limestones do	40,382
Chalk stones and chalk do	2,365
China clay do	120
Clay do	160
Insulating material (provided in the form of clay and exclusive of asbestos) tons	4,766
Cabbage (fresh) do	15,000
Dried vegetables (not to exceed 1917 exports) tons	1,000
Beet, turnip, cabbage and garden seed in compensation for sugar beet seed and other seeds tons	424
Cryolite tons	1,000
With the understanding that the said quantity of one thousand (1,000) tons may be exported within the six months’ period, calculated from the date this arrangement becomes operative, the question of further exports after such six months’ period to be subject to a new agreement with respect thereto.

It is understood that with due regard to seasonable requirements the quantities of said exports shall be approximately evenly distributed throughout the year.

Denmark shall be at liberty to return to Germany in the course of ordinary business transactions goods of German origin, provided, however, that such goods shall not have entered definitely into the ordinary stocks of the country, and that by such re-export no stipulation in the above agreement respecting the restriction in the exports to Germany shall be evaded. Goods produced in any manufacturing or industrial establishment in whole or in part from raw materials of German origin or goods which have changed in form after having entered Denmark shall not be regarded as “goods of German origin” within the meaning of this clause. If the foregoing is found in actual practice to work unsatisfactorily it will be revised by negotiation between the representative of the War Trade Board in Denmark and the Danish Government.

Copper, lead and other metals to the extent of two hundred (200) tons a year may be exported to Germany, provided that Denmark shall receive in return within sixty (60) days from Germany manufactured goods containing metals of the same kind and to the same extent, less ten (10) per cent for wastage.

Denmark shall likewise be entitled to export to Germany bags to be filled with goods of German origin, on condition that adequate precautions are taken to see that the bags are duly returned within ninety (90) days.

Provided always that the foregoing bags and metals, return for which is provided above, thus temporarily exported, have not been imported into Denmark during the war under any obligation whatsoever toward the Associated Governments.

(10) It is understood that in undertaking the engagements mentioned in the shipping agreement Danish shipping shall have completely satisfied all expectations or claims from the United States and its associates and that no further demand or claims upon the shipping of Denmark shall be made or expected to be met during the present war.

(11) It is understood that the Danish Government give their consent to the said agreement between the Danish Special Shipping Committee and the War Trade Board and will not withdraw such consent until peace is signed by the United States, provided the War Trade Board licenses the export or facilitates the obtaining, as the case may be, of the commodities contained in the schedules of the agreement with the Merchants’ Guild of Copenhagen and the Danish Chamber of Manufacturers, in accordance with the terms and for the duration of the said agreement.

(12) Nothing herein contained shall be construed as in any manner modifying or changing the terms or conditions of any agreement or arrangement between the Governments of Denmark and France, Italy or Great Britain providing for the prohibition or restriction of exports from Denmark, or the terms or conditions of any agreement or arrangement between the Governments of Denmark and France, Italy or Great Britain or the terms or conditions of any guarantee given to or agreement made with those governments by Danish citizens, which is either now in force or which having been in abeyance owing to the suspension of imports to Denmark, may be revived when such imports recommence under the terms of this agreement.

(13) “Germany,” “Central Powers” or “Germany and her allies “in this note shall be taken to include all territory occupied by the military forces of the Central Powers, also the whole of any country, whether previously allied or neutral, all or any part of whose territory is now occupied by the military or civil forces of Germany or her allies, excepting France, Italy and Belgium.

(14) The various clauses herein respecting the prohibition of exports to the Central Powers will come to an end simultaneously with the expiration of the agreement between the Merchants’ Guild of Copenhagen and the Danish Chamber of Manufacturers on the one part and the United States War Trade Board on the other part.

(15) The obligations herein assumed by the Danish Government are subject to termination by the Danish Government at the end of one year by giving three months prior notice in writing of intention to terminate the same. And such termination of the obligations herein assumed by the Danish Government shall operate to cancel and terminate the agreement of even date herewith made between the Merchants’ Guild of Copenhagen and the Danish Chamber of Manufacturers on the one part and the United States War Trade Board upon the other part.

(16) Upon the understanding that Denmark will state its adherence to the arrangement herein outlined, the War Trade Board of the United States (an administrative agency empowered by Executive order to license exports from the United States) assents to and concurs in the said arrangement including the following:

A. It is understood that Denmark will receive at ports of origin the commodities enumerated in the schedules annexed to the agreement of even date herewith between the War Trade Board and the Merchants’ Guild of Copenhagen and the Danish Chamber of Manufacturers, in so far as the same are not required for consumption in the United States, and in so far further 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.

B. It is understood that the War Trade Board will grant license for the export of such commodities as under the foregoing principles may be obtained in the United States, and where quantities to meet such schedules are not deemed available by the War Trade Board for exportation from the United States when required, export license shall be granted for as much thereof as are available, and in such cases if there are in the United States commodities that can be spared and which the War Trade Board approves, which are capable of use as substitutes for the commodities named in the schedules, licenses will be granted for their export and said Board will grant licenses for bunker fuel and ships stores to vessels transporting all said commodities or their substitutes, as the case may be, if approved by the War Trade Board as aforesaid, to Denmark from other countries as well as the United States.

C. It is understood that the War Trade Board will, in cooperation with the Associated Governments, facilitate the export from Norway and elsewhere to Denmark of nitrates or other fertilizers in the quantities agreed upon (equivalent to thirty-three thousand, three hundred and thirty-three (33,333) tons in terms of nitrates), provided such fertilizers are purchased through agents designated by the War Trade Board, and the Danish Government will see to it that prior to or simultaneous with the importation of said nitrates or other fertilizers at least three tons of cereals will be exported from Denmark to Norway for every ton of nitrate or other fertilizer so imported into Denmark; it being understood that fertilizers other than nitrates are to be reckoned in terms of nitrates in proportion to their fertilizing value.

It is understood that the provisions herein made for the importation into Denmark of nitrates and the exportation of cereals shall not be operative after the lapse of one year from the date hereof.

(17) It is understood that the arrangement herein provided for shall begin to operate ten days after the date hereof.¹

Vance C. McCormick

1. See footnote 1, ante, p. 1339. An identic letter was addressed under the same date by the Danish Minister to the Chairman of the War Trade Board.
1. This period was extended to 15 days by a letter dated Sept. 21 (War Trade Board files).