File No. 652.119/960
The Chargé in Great Britain ( Laughlin ) to the Secretary of State
[Received 2.04 p.m.]
No. 10390. From Paris:
133. June 1, noon. War Trade Board No. 42. We fear you have misunderstood our advices in connection with proposed plans to coordinate the policy of the Associated Governments at Madrid. The following plan is approved by the French Foreign Office and also, judging from communications received today, by the War Trade Board.
- 1.
- An inter-Allied committee for the control of army purchases exists in Paris and is composed of official representatives of the quartermasters’ departments of the French and American Armies and also an unofficial representative of the British, but it is very important that the British should be officially represented. Chairman of that committee is General Mauclère. The functionary activities of the committee consist in coordination of the general policies and activities in connection with the purchase of army supplies in Spain and instructing the Inter-Allied Purchasing Committee at Madrid in connection therewith.
- 2.
- Inter-Allied [Purchasing] Committee at Madrid is composed of official representatives of the [French] and American quartermasters’ departments acting under general instructions from Paris, and an unofficial British representative acting under general instructions from British quartermaster’s department, Paris, but again it is also very desirable that the British should appoint an official representative upon this committee at Madrid.
- 3.
- It is now proposed to create a permanent and active committee in Madrid which shall be called “The Inter-Allied Trade Committee “and this committee will be composed of official representatives to be appointed by the respective Ambassadors of each of the Associated Governments at [Madrid] and the delegates will be the personal representatives of the Ambassadors upon this committee.
- 4.
- The functions and duties of the committee are to consist of (a) to receive from the Inter-Allied Purchasing Committee, Madrid, their applications for export permits covering all articles purchased by the representatives of the Associated Governments in Spain and to officially present same to the Spanish Government with request for exports permits. It is not, however, contemplated at present that the committee shall deal with either questions of shipping or of securing export permits from the Spanish Government covering shipments of ores or pyrites for the account of the British as these questions are all covered and provided for under the Cortina and other Government agreements.
- (b) It is also proposed that the Associated Governments, through their Ambassadors at Madrid, will consult with the Inter-Allied [Trade] Committee at Madrid before granting export permits covering [Page 1684] shipments to Spain of the following articles: American, Egyptian, and Indian [cotton], ferromanganese, coal, tin, tin plate, petroleum, pitch, tar, railroad materials, special machinery, jute, lubricating oils, and rubber.
- 5.
- It will be understood that the Associated Governments will be guided by the recommendation of the Inter-Allied Trade Committee as to whether export permits should be or shall not be granted for articles above referred to and Committee’s recommendations will be predicated upon the willingness and the promptness with which Spanish Government grants the permits to Associated Governments covering shipments of articles purchased by the Associated Governments in Spain.
The above plan makes very plain that the Inter-Allied Purchasing Committees at Paris and Madrid are absolutely military agencies while the Inter-Allied Trade Committee at Madrid will be a committee absolutely independent and diplomatic in its personal character and activities and whose duties will consist in assisting and facilitating through diplomatic channels and representations the release of the supplies purchased by the Associated Governments in Spain. You will appreciate the importance of British being officially represented both on the Purchasing Committees in Paris and Madrid and also upon the Inter-Allied Trade Committee at Madrid. We are confidentially informed that the subject has had serious consideration at the Foreign Office and the above plan has been approved by Balfour. We are in receipt of a cable from Washington to the effect that they have wired you their approval of the above plan. French Foreign Office is also cabling their approval to their Ambassadors at London, Washington, and Madrid. We have cabled Washington and recommended that Chadbourne be at once appointed the official legal representative War Trade Board on the Inter-Allied Trade Committee at Madrid. Repeat Washington. McFadden. Sharp.