Paris Peace Conf. 103.97/61: Telegram
The Ambassador in Great Britain (Davis) to the Commission to Negotiate Peace
[Received 6:20 p.m.]
2. For Hoover from Sheldon. Following telegram has just been received from War Trade Board.
“3750. January 2, 4:00 p.m. For Sheldon, number 1968. Embassy’s 4910, December 28th, your 2136 [2186]. We are strongly of the opinion that the sifting of commodities on the free list including pork and pork products through the Border Neutrals into the enemy’s country should not be permitted. That would be in fact countenancing violations of the blockade, the principles of which under the terms of the armistice must be maintained. The free list must not be used as a device for rationing Germany. If any rationing of the enemy country is contemplated, it should be regularly and definitely prescribed by the Associated Governments as an out and out exception to the blockade. We agree with Hoover that an outlet must be found for our present large surplus stocks of pork and pork products, but if the Associated Governments should decide that pork and pork products or any other commodities on the free list should be permitted to go to the Central Powers, we are strongly of the belief the shipments of these should be made directly into those countries and not through the Border Neutrals, more particularly in the matter of pork and pork products. We do not believe that the sifting process would permit us to dispose of an appreciably large part of our surplus. Besides the Northern Neutrals should not be accorded the opportunity by exacting exorbitant prices to aggravate in terms of profits the German gold and German credits that unquestionably will go to reimburse and indemnify the Allies under the terms of the Peace Treaty. White had cabled to Hoover in the above sense,53 suggesting that if the Associated Governments should decide that shipments of pork and pork products or any other commodities on the free list should be permitted to be imported by the Central Powers, such shipments should be made to those countries direct and payments be made in gold or in other commodities almost exclusively produce. Should objections be raised to the acquisition of such gold in this country, probably a plan could be arranged through the Treasury for depositing such gold in Europe and for the ultimate collection therefor in specie, or otherwise. The point we wish to emphasize now is that the free list for the Northern Neutrals must not be used as a device for rationing or revictualing the enemy. McCormick leaves today and will take up this matter with you more in detail upon his arrival in Paris. Show him this cablegram. Meantime please get in touch with Hoover. Polk, acting.”
I have discovered that there was considerable opposition in some British Government departments to the arrangement that has been [Page 783] made to put pork and pork products on the free list for Northern Neutrals and the British Minister of Blockade stated that he would be obliged to reopen the recent decision of the Allied Blockade Committee on the ground that all questions affecting relief had, for the time being as far as Great Britain was concerned, been placed in Lord Beading’s hands. I thereupon saw Lord Reading with Dulles, who is now in Paris, Hotel Crillon, but up to the time of the receipt of the War Trade Board telegram quoted above I have not been able to obtain a definite answer from Reading. He told me however that he expected that the main relief council ought to be set up in Paris and in working order within a few days, and, in view of the telegram from the War Trade Board quoted above, it would appear that the Board will probably not grant export licenses from America for pork on conditions which would permit transshipment into Germany, i. e. put it on the free list.
It would, therefore, seem that the best we can do here through the Allied Blockade Committee is to put pork and pork products on the unrationed list for the Northern Neutrals which means that these countries may import any amount but that the importers have to give guarantees against its reexport, leaving the question of shipment to the Central Powers to be taken up by the Relief Council as soon as it is set up. Consequently pork and pork products are now on the unrationed list.
- Cable not printed.↩