Office of the Historian

File No. 652.119/1177

The Acting Secretary of State to the Ambassador in Spain ( Willard)

[Telegram]
Washington, August 9, 1918, 8 p.m.

1409. For Chadbourne [from War Trade Board]:

No. 189. Referring Chadbourne’s 158, Embassy’s 1559, July 19.1 and other cables on same subject. In order to clear up apparent misunderstandings in Paris, London, and Madrid respecting the organization and functions of the Inter-Allied Purchase Committee and the Inter-Allied Trade Committee in Madrid, we think it wise to outline to you our understanding of the composition and functions of both committees as they now exist.

1.
The Inter-Allied Purchase Committee in Madrid is purely military, is composed of representatives of the French and American quartermasters’ departments and the British are now willing to designate a technical expert as its official representative. This committee is subordinate to and receives its instructions from the Inter-Allied Purchase Committee in Paris. Its functions, so far as this department is concerned, are to present to the Inter-Allied Trade Committee in Madrid the applications of the Associated armies for permits to export from Spain all supplies purchased in Spain for their use except lead, iron ore, copper, and pyrites for the British, and is to work in close cooperation with the Inter-Allied Trade Committee in securing prompt action upon such requests and in expediting the shipment of such supplies from Spain.
2.
The Inter-Allied Trade Committee in Madrid, heretofore known as the commercial bureau, is now composed of official representatives of the American and French Ambassadors. The British are now willing to designate their commercial attaché in Madrid as official representative, on the understanding that the powers of the committee are to be purely advisory and that the committee shall not concern itself with matters respecting maritime transport or with lead, iron ore, copper and pyrites for the British. This condition is acceptable to us in default of being able at this time to secure broader jurisdiction for committee.
3.
The functions of the Inter-Allied Trade Committee are—
(1)
To receive from the Madrid Purchase Committee its applications for permits to export from Spain all supplies bought in Spain for the Associated Governments, except those mentioned above, and to present them to the Spanish Government;
(2)
To receive from the Spanish Government requests for the importation into Spain of miscellaneous articles purchased by Spain in the countries of the Associated Governments and to recommend to their respective Ambassadors the action to be taken;
(3)
The Associated Governments, through their Ambassadors in Madrid, will be asked to consult with this committee before granting export licenses covering shipments to Spain of all important articles purchased by Spain in the countries of the Associated Governments, and particularly with reference to the articles mentioned below, to the end that exports from these countries to Spain may be predicated upon the willingness of the Spanish Government to grant permits for the shipment from Spain of the articles bought there for the use of the armies of the Associated Governments. List of articles follows: American, Egyptian and Indian cotton, ferromanganese, coal, tin, tin plate, petroleum, pitch, tar, railroad materials, special machinery, jute, lubricating oils and rubber;
(4)
Department does not understand it to be the purpose or the intention of the Inter-Allied Purchase Committee in Madrid or the Inter-Allied Trade Committee in Madrid actually to purchase any supplies; that their functions are to expedite the shipment from Spain of supplies after they have been purchased by representatives of the Associated Governments, and to advise their respective ambassadors on matters of policy with respect to imports into Spain.
4.
London suggested that the Inter-Allied Trade Committee report to A[llied] B[lockade] C[ommittee] in London. Department thinks it better that it report directly to respective Governments through their ambassadors.
5.
If your understanding with respect to these committees is in accord with the above, please take such steps as you appropriately can to promote the effective functioning of this committee, and keep [Page 1696] us promptly advised as to when the Inter-Allied Trade Committee has been organized and is ready to handle our inquiries about exports to Spain.
6.
Department thinks Italy ought also to be represented officially on the Inter-Allied Trade Committee, and suggests that you take up this matter with your French and British colleagues and, if they are in accord, that the Italian Ambassador be invited to name a representative.

We have repeated this to London and Paris.

Polk
  1. Not printed.↩