Paris Peace Conf. 840.48/7: Telegram
The Commission to Negotiate Peace to the Acting Secretary of State
177. Your 98 January 4, 5 p.m. See Hoover’s 173 to Food Administration which explains situation rather fully. The relief for the Balkan States and other peoples of Europe is to be undertaken [Page 706] in cooperation with the Allies with American leadership. Hoover as Director General will be in charge of the undertaking and a Council composed of two representatives from each England, France, Italy and the United States which Council will decide all questions involving general policy such as to whom relief shall be furnished, the lifting of blockade, the amount of relief to be given and the manner of financing, as well as the contribution which each Government can make. The Allies are already furnishing relief but it is impossible to make any definite proposals or arrangements with them until we are in position to act. It is believed however that England, France and probably Italy would be willing to agree to participate in the relief for a fixed percentage of the whole—contributing to the extent of their available resources in transportation, clothing, expenses which can be paid in their currencies and such minor amounts of food as they may have in surplus provided we are prepared to agree to advance any dollars required to complete their fixed contribution—but understand Secretary of Treasury does not favor advancing funds to Allies for payment of American food to be supplied by them to other countries. Investigations are being carried out now as to the actual requirements in the different areas for submission to the council but the actual Relief already carried out and information obtained thereby lead to the conclusion that the need will be great. It is also realized that the temporary and inadequate character of relief in progress will not be sufficient to meet the situation. There are urgent requests for help from dozens of sources, usually of the type of cables now in your hands. It would be well to impress upon Congress that there is in the United States at present a considerable stock of surplus food especially wheat and pork which was accumulated principally for supplying the Allies and which would have been required by them had the war continued but which must now be disposed of in order to relieve storage and financial facilities in the United States because the Allies are now able to purchase and transport food at lower prices from their own possessions. While it is most important for us to dispose of this surplus in order to avoid difficulties in the United States, it is most fortunate that we have this surplus which is necessary to save human lives and stem the tide of Bolshevism in Europe. The hundred million dollars fund asked for to be placed at the disposal of the President will in a way be a revolving fund. In most cases obligations of Governments or of the Municipalities or institutions will be taken in payment of food and supplies furnished from the United States but in some cases to a minor extent food will be furnished on a strictly charitable basis. While none of this fund will be used for advances to Germany, assistance may be tendered Austria and food may be [Page 707] sold to Germany on a cash basis, and it is well to impress upon Congress the fact that entirely aside from a humanitarian standpoint it is necessary to feed even Germany in order to prevent starvation and anarchy and the necessity of an extended military occupation with consequent greater and more expensive problems to deal with. It is estimated that the total surplus food produced in United States will amount to about $1,500,000,000 on which there is a considerable profit to the country and the Congress is only being asked to appropriate $100,000,000 or a portion of this profit with which to facilitate use of the balance of the food to be used for this humanitarian and expedient undertaking. The Relief organization with the approval of the Council will only furnish supplies to such countries where after investigation it is found urgently necessary.