File No. 656.119/864½
The Chargé in Great Britain ( Laughlin) to the Secretary of State
[Received 11.50 p.m.]
3553. War Trade Board [from Sheldon]:
No. 1831. Allied delegates recommend following rations under pending Dutch agreement:
- 1.
- Cereals: Annual ration of 175,000 tons of wheat and rye, 100,000 tons of inferior cereals and 50,000 tons of rice, tapioca, sago, starches, etc.; total 325,000 tons. Basis of calculation is population 7,000,000, grain milled to 90 per cent on average and 140 parts of grain produce 200 parts of bread at 300 grammes per diem, requirements are 536,550 tons. Dutch request further 6,500 tons for army ration and 19,200 tons for confectionery, restaurants, etc.; total about 560,000 tons of bread cereals. We estimate Dutch bread should be 75 per cent wheat and rye and 25 per cent barley, maize, [Page 1560] potatoes, etc., requirements become 420,000 tons wheat and rye plus say 35,000 tons for stocks and 140,000 tons inferior cereals. Dutch harvest of 1918–19 after deducting 30,000 tons for non-delivery and 35,000 tons for seeds is estimated to yield 280,000 tons wheat and rye leaving import requirements of 175,000 tons as recommended. Barley crop estimated at 49,000 tons of which Dutch estimate 23,000 tons as fodder and 26,000 tons for yeast making, seed, barley groats, porridge. On October 1 no old cereal stocks on hand but about 40,000 tons of potato flour, leaving import requirements of 100,000 tons inferior cereals (i. e., barley, oats, and maize outside of fodder ration).
- 2.
- Oils and fats: A ration of 40,000 tons annually for edible and technical oils of which 15,000 tons to be allowed for each of first two quarterly periods and 5,000 tons for each of last two quarters. Present consumption at rate of 63,000 tons per annum is considered too low being only 250 grammes per 10 days per head, a ration of 250 grammes per week would mean annual consumption of 84,000 tons in addition annual consumption of 10,000 tons. Technical fats must be provided, present stocks on hand are estimated at 18,000 tons and annual production of butter at 40,000 tons maximum. If ration is fixed at 40,000 tons, this would give with stock and year’s home production maximum of 98,000 tons available for ensuing ration year.
- 3.
- Fodder: 200,000 tons per annum. This ration is purely arbitrary and has no statistical basis. Dutch are asking 450,000 tons maize, 300,000 tons oil cake and meal, 83,000 tons oats.
- 4.
- Fertilizers: 40,000 tons rock phosphates, 22,000 tons pyrites and 20,000 tons nitrates. It is proposed to explain in a letter to Dutch that conditions may make it desirable to increase considerably their rations of fodder and fertilizers. We felt it was best to insist on as small rations as possible in the agreement on account of tonnage though we expect to get a statement that the Dutch will not request the return of any requisitioned ships.
- 5.
- Aluminum: 50 tons.
- 6.
- Rubber: No raw rubber until present stocks are near exhaustion. Rubber goods manufactured 200 tons: motor car tires (25,000 covers and 15,000 tubes); motor-cycle tires (15,000 covers and 8,000 tubes), one-quarter rations only until petrol supply is sufficient to warrant their need; bicycle tires (750,000 covers and 750,000 tubes).
- 7.
- Tobacco: 22,000 tons plus six months’ stock, i. e., 11,000 tons less existing stocks to be ascertained.
- 8.
- It is proposed that we agree to the rations provided in the abortive agreement of last January for commodities other than those mentioned above, with the same general replacement conditions therein mentioned.
Please send comments on foregoing as quickly as possible.
As regards exports to Germany, Allied delegates after conference with Dutch suggest the following only be permitted:
- (1)
- Vegetables to be discussed in the agricultural agreement in a general way, a provision to be made that the caloric value of such exports in 1917 should not be exceeded.
- (2)
- Milk under agricultural agreement, but limited to figured of export in 1918, such restriction however not to apply to export to Allies.
- (3)
- Bulbs for horticultural purposes only under agricultural agreement.
- (4)
- Seeds from flax and peat litter under agricultural agreement.
- (5)
- Technical fats nil.
- (6)
- Offals 1,000 tons per annum, details to be defined in the agricultural agreement.
- (7)
- Horses and foals. Dutch may export to Germany provided that the limit of 1,000 horses and 7,000 foals is not exceeded with the stipulation that Holland first exports to Belgium or northern France three times as many animals as are proposed to be sent to Germany. No restrictions however on amounts of exports to Belgium and France.
- (8)
- Cattle. No milch cows or cows in calf, but Dutch may export to Germany not more than 15,000 head in all if twice the number sent to Germany shall first be exported to Belgium or northern France and no restrictions on amounts of types of cattle to be exported to Belgium and France.
More specifically, there will be no exports to Germany of casein, fodder, potatoes, sugar, meat, poultry, butter, eggs, cheese, food, pulp nor hides as hides. Deficiencies of any article now owed to Allied Governments under past agreements must be made good before new exports of that article are permitted to Germany. With the foregoing it is expected that Holland will get her minimum requirements that can be obtained only from Germany.
The fish agreement about to be signed by Allies allows annual exportation 5,000 tons. Copy will be sent for your subsequent approval.