Papers Relating to the Foreign Relations of the United States, The Paris Peace Conference, 1919, Volume VI

Paris Peace Conf. 180.03401/30

CF–30

Notes of a Meeting Held at President Wilson’s House in the Place des Etats-Unis, Paris, on Saturday, 24 May, 1919, at 11:15 a.m.

Paris, May 24, 1919, 11:15 a.m.

Present

U. S. A.	President Wilson
British Empire	The Rt. Hon. D. Lloyd George, M. P.
France	M. Clemenceau
Italy	M. Orlando

• Economic Commission
  • Mr. Baruch
  • Mr. Lamont
  • Mr. Palmer
  • Sir H. Llewellyn Smith
  • Mr. Payne
  • Mr. Carter
  • M. Clémentel
  • M. Alphand
  • M. Serruys
  • M. Crespi
  • M. d’Amelio
  • M. Lucciolli

Secretaries:	Sir Maurice Hankey
	Count Aldrovandi
Interpreter:	M. Mantoux

1. The Council had before them the draft of Economic Clauses prepared by the Economic Commission for inclusion in the Treaties of Peace with Austria and with Hungary (Appendix). Economic Articles in the with Austria

President Wilson said he understood that there was complete agreement among the experts as to the Clauses.

M. Clemenceau said that this was so except for one point.

M. Clementel explained that the Treaty Clauses under discussion contained the following provision:—“If the annulment of a contract provided for in Article (4) would cause one of the parties substantial prejudice, the Mixed Arbitral Tribunal provided for by Section VI of Part (X) (Economic Clauses) of the present Treaty shall be empowered to grant to the prejudiced party compensation calculated solely on the capital employed, without taking account of the loss of profits.” A reserve had been made regarding this by the Allied and Associated Powers acquiring territory from Austria-Hungary on the ground that no similar provision appeared in the Clauses relating to Alsace Lorraine in the German Treaty. The British Delegation had proposed to solve the question by inserting the Clause in the German Treaty, and the French Delegation were willing to accept this suggestion provided that a further stipulation, which was proposed for the Austrian Treaty but which did not appear in the German Treaty, was inserted in the latter, viz. the stipulation that all exceptional measures taken by Austria-(Germany) during the War with regard to property rights and interests of former Austro-Hungarian (German) nationals should be annulled.

Mr. Lloyd George said that the question was whether the last mentioned stipulation, which threw an additional burden on the Germans, could now be inserted in the German Treaty. The other stipulation under discussion, viz. the one about compensation, would be a concession to the Germans and we might perhaps say we would put it into the Treaty if the Germans would accept also the provision as to annulment of exceptional measures.

M. Clemenceau pointed out that the Council had decided to make modifications in the German Treaty in favour of the Germans with regard to certain important questions, and his opinion was that it was also open to them to put in modifications in a contrary sense.

President Wilson did not think there was any right to increase the demands on Germany.

Mr. Lloyd George agreed and added that he was not absolutely convinced about the annulment stipulation being entirely defensible.

President Wilson thought the question was whether the measures taken were within the legal right of the Government which had taken them or not. If they were, the stipulation to annul should not go into either Treaty. He asked what was meant by “exceptional measures.[”]

Sir H. Llewellyn Smith explained that exceptional measures meant measures applying to the inhabitants of the territories in question and not to Austrians generally. Such measures would be of a penal character, but there was not sufficient information to know whether they were all justifiable or not.

M. Clementel said that there had been during the war a systematic persecution by the Germans of Alsace Lorrainers who were known to sympathise with the French. Hence, if the stipulation were put in the Austrian Treaty it should go into the German Treaty also.

M. Orlando was of opinion that if the stipulation was agreed to be just, the Allied and Associated Powers had the right to add it to the German Treaty, but even if this were decided to be impossible the stipulation should appear in the Austrian Treaty as there was the same justification for it in Austria-Hungary as M. Clementel had described in Alsace Lorraine. As regards the provision as to contracts, he agreed that this should be included in the Austrian Treaty and added to the German Treaty.

President Wilson asked who would decide which measures were “exceptional”.

M. Alphand said that so far as the measures in question affected rights and property in the acquired territory, the acquiring [party?] could take all the necessary measures. The stipulation under discussion was necessary to secure the annulment of measures taken in regard to property of Allied and Associated nationals remaining in enemy territory.

M. Clemenceau suggested that perhaps both the stipulations under discussion might be omitted from the Austrian Treaty.

Mr. Lloyd George said he thought the Clause about compensation should be retained, but perhaps the one about annulment of exceptional measures should be omitted.

M. Clemenceau agreed with this view.

M. Orlando thought that as he understood everyone admitted that the provision as to annulment of exceptional measures was just, it ought to go into the Austrian Treaty. He agreed that provision would have to be made for deciding which measures were exceptional and he would be prepared to leave this to the Mixed Arbitral Tribunal. He also agreed that, so far as property and interests in acquired territory are concerned, the stipulation was unnecessary but he thought it important to cover also the case of property and interests in territory which still remains part of enemy countries.

President Wilson said that he conceived there would be many cases in which it would be impossible for either the Mixed Arbitral Tribunal or anyone else to decide whether the acts in question were exceptional and should be subject to annulment. He did not admit that the stipulation was just as it stood, and he felt it would be very difficult to secure that it should operate justly.

M. Orlando admitted the force of these objections, but thought the judges could be relied on to deal fairly with the doubtful cases, and added that there were many clear cases for which provisions should be made.

Mr. Lloyd George pressed the argument that the Government which acquires the territory in question can take all necessary measures to counteract what has been done during the war, and ought to be left free to do what it thinks fit. He did not think it practicable or reasonable to try and provide for dealing with all the action taken by the enemy in regard to Alsace-Lorrainers, Czecho-Slovakians, etc., wherever they might be.

President Wilson agreed with this view and:—

It was decided that the provision as to annulment of exceptional measures should be omitted from the Austrian Treaty, and that the provision as to compensation for the annulment of contracts should be retained in the Austrian Treaty and should be offered to the Germans for inclusion in the German Treaty, if they wished it.

2. M. Clementel then asked the Council to authorise certain errata in the German Treaty as follows:—

(a) Annex to Articles 297 and 298, add at the end Errata in of paragraph 1, the words:— Errata in Economic Clauses of German Treaty

“nor to such of the above-mentioned measures as have been taken by Germany or the German authorities since 11th November, 1918, all of which measures shall be void”.

M. Clementel explained that this covered certain confiscatory measures taken by the enemy since the Armistice. It appeared in the Economic Clauses proposed for the Austrian Treaty and ought to have been in the German Treaty but had not been included there.

President Wilson agreed and said he understood it had been accidentally omitted.

(b) Annex to Articles 297 and 298, paragraph 14, add after the words “rate of exchange” the words “of interest”.

M. Clementel explained that this likewise appeared in the Economic Clauses proposed for the Austrian Treaty but was not in the German Treaty, and ought to be added thereto.

Mr. Lloyd George raised the question whether it was desirable to send the Germans at this stage notice of small alterations of this character. He was not questioning their desirability but he thought as a matter of procedure it would be better to collect all these points and let them be communicated to the Germans with the reply of the Allied and Associated Powers to the German observations on the Treaty. To send notices of small alterations piece-meal might only be irritating at the very moment when they were probably considering whether they would sign the Treaty or not.

President Wilson agreed but thought that it would be well to deal with M. Clementel’s suggestions and vote on them with a view to their being noted for communication to the Germans later.

The above errata were therefore approved together with the other two notified by M. Clementel as follows:—

(c) Article 282:—

(i) Modify No. 19 as follows:—

“Sanitary Convention of the 3rd December, 1903¹ and the preceding Conventions signed on the 30th January 1892,² 15th April 1893,³ 3rd April 1894⁴ and the 19th March 1897”.⁵

(ii) Insert as No. 26, “Convention of the 12th June, 1902 as to the protection of minors”.⁶

The object of this erratum was to include items which had been omitted from the German Treaty by an oversight.

(d). Article 286. Omit the words “the agreement of 14th April, 1891 regarding the suppression of false indications of origin of goods,⁷ the agreement of 14th April, 1891 concerning the international registration of trade Marks”.⁸

The inclusion of the above in the German Treaty was an error, as Germany was not a party to the agreements.

3. It was decided that the Drafting Committee should be instructed to collect all errata in the German Treaty and to prepare a global list of them for communication later to the Germans. Errata in the Treaty With Germany

[Appendix to CF–30]⁹

economic commission

Treaties of Peace With Austria and Hungary Economic Clauses

The Clauses proposed by the Economic Commission for the Treaties of Peace with Austria and Hungary are based to a very large extent on the Treaty with Germany, and the following statement indicates which articles can be derived from the corresponding articles in the German Treaty by simply substituting for the words “Germany” or “German” the corresponding term according to the country dealt with. The statement also gives the text of the new articles or paragraphs proposed for Austria and Hungary, and of certain articles or paragraphs of the German Treaty in which alterations are proposed in view of the Austrian and Hungarian Treaties. These texts are drafted in reference to Austria, and can be adopted for Hungary by simply substituting “Hungary” or “Hungarian” for “Austria” or “Austrian.”

Section I.—Commercial Relations

Chapter I.—Customs Regulations, Duties and Restrictions

Article 1.

Same as Article 264 of German Treaty.

Article 2.

Same as Article 265 of German Treaty.

Article 3.

Same as Article 266 of German Treaty.

Article 4.

Same as Article 267 of German Treaty.

Article 5.^*

Same as Article 323 of German Treaty.

Article 5a.

By way of exception to the provisions of Article 5, products in transit by the ports which before the war belonged to the Austro-Hungarian Empire shall, for a period of three years^† from the coming into force of the present Treaty, enjoy on importation into Austria reductions of duty corresponding with and in proportion to those applied to such products under the Austro-Hungarian Customs Tariff of the 13th February, 1906, when imported by such ports.

Article 6. (new).

Notwithstanding the provisions of articles I to IV, the Allied and Associated States agree that they will not invoke those provisions to secure the advantage of any arrangements which may be made by the Austrian Government with the Governments of Hungary or Czecho-Slovakia for the accord of a special customs régime to certain natural or manufactured products which both originate in and come from those countries, and which shall be specified in the arrangements, provided that the duration of these arrangements does not exceed a period of five years from the coming into force of the present Treaty.^‡

Article 7.

During the first six months after the coming into force of the present Treaty, the duties imposed by Austria on imports from Allied and Associated States shall not be higher than the most favourable duties which were applied to imports into the Austro-Hungarian Empire on the 1st July 1914.

During a further period of thirty months after the expiration of the first six months this provision shall continue to be applied exclusively with regard to the importation of fruits (fresh and dried) fresh vegetables, olive oil, eggs, pigs and pork products, and live poultry, in so far as such products enjoyed at the above mentioned date (1st July 1914) rates conventionalised by Treaties with the Allied or Associated States (Corresponds to Article 269 of German Treaty).

Chapter II.—Shipping

Article 9.^§

Same as Article 327 of German Treaty.

Article 10.

The High Contracting Parties agree to recognise the flag flown by the vessels of any Contracting Party having no sea coast, which are registered at some one specified place situated in its territory; such place shall serve as the port of registry of such vessels. (Except for italicised words, same as last part of Article 273 of German Treaty.)

Chapter III.—Unfair Competition

Articles 11–12.

Same as Articles 274–275 of German Treaty.

Chapter IV.—Treatment of Nationals of Allied and Associated Powers

Articles 13–16.

Same as Articles 276–279 of German Treaty.

Chapter V.—General Articles

Article 17.

Same as Article 280 of German Treaty with the necessary changes in the references.

Article 18.

Same as Article 281 of German Treaty.

Section II.—Treaties

Article 19.

Same as Article 282 of German Treaty with the following omissions:—

6. Convention of the 31st December, 1913, regarding the unification of commercial statistics.¹⁰ (See Article 27 below.)

14. Convention of the 4th February, 1898, regarding the tonnage measurement of vessels for inland navigation.¹¹ (Neither Austria nor Hungary a party before the War.)

15. Convention of the 26th September, 1906, for the suppression of the use of white phosphorus in the manufacture of matches.¹² (See Article 27 below.)

Two Sanitary Conventions which by an oversight were not included in Article 282 of the German Treaty, have been inserted in this Article, as follows:—

16. Sanitary Convention of the 3rd December, 1903, and the preceding ones signed on the 30th January, 1892, the 15th April, 1893, the 3rd April, 1894, and the 19th March, 1897.

The following addition has also been made:—

23. Convention of the 12th June, 1902, as to the protection of minors.

Articles 20 and 21.

Same as Articles 283 and 284 of German Treaty.

Article 22.

The International Convention of Paris of the 20th March, 1883, for the protection of industrial property,¹³ revised at Washington on the 2nd June, 1911,¹⁴ and the arrangement of the 14th April, 1891, concerning the international registration of Trade Marks, will again come into effect as from the coming into force of the present Treaty in so far as they are not affected or modified by the exceptions and restrictions resulting therefrom. (Based on Article 286 of German Treaty.)

Articles 23 to 25.

Same as Articles 129, 366, and 287 of the German Treaty.

Article 26 (new).

Austria undertakes, within twelve months of the coming into force of this Treaty, to adhere in the prescribed form to the International Convention of Berne of the 9th September, 1886, for the protection of literary and artistic works,¹⁵ revised at Berlin in 1908,¹⁶ and the Act and Protocol of the 20th March, 1914, relating to the protection of literary and artistic works.¹⁷

Until its adherence, Austria undertakes to recognise and protect by effective measures and in accordance with the principles of the said Convention the literary and artistic works of nationals of the Allied and Associated States. In addition, and irrespective of the above-mentioned adherence, Austria undertakes to continue to assure such recognition and such protection to all the literary and artistic works of the nationals of each of the Allied and Associated States to an extent at least as great as upon the 1st July, 1914, and upon the same conditions.

Article 27 (new).

Austria undertakes to adhere to the Treaties, Conventions and Agreements hereunder enumerated, or to ratify them:—

1. Convention of the 26th September, 1906, for the suppression of the use of white phosphorus in the manufacture of matches.

2. Convention of the 31st December, 1913, regarding the unification of commercial statistics.

Articles 28 to 34.

Same as Articles 289 to 295 of German Treaty.

Note.—The following Articles in the German Treaty have been omitted from the Austrian Treaty:—

• Article 285, North Sea Fisheries
• Article 288, Samoa.

Section III.—Debts

Article 35, and Annex thereto.

Same as Article 296 (and the Annex thereto) of the German Treaty, with the addition to paragraph 3 of Article 296 of the words shown in italics below:—

“Article 296.

“3. Interest which has accrued during the war to a national of one of the Contracting Powers in respect of securities issued or taken over by an opposing Power provided that the payment of interest on such securities to the nationals of that Power or to neutrals has not been suspended during the War.”

Section IV.—Property, Rights and Interests

Article 36.

Same as Article 297 of German Treaty, with the addition of the following new paragraph:—

“(j.) The amount of taxes or imposts on capital, which have been or may be imposed by Austria on the property, rights and interests in question, between the 1st November, 1918, and the date of the restitution provided for in the Treaty, shall similarly be restored to their owners.”

Article 37.

Same as Article 298 of German Treaty.

Annex.

Same as corresponding Annex in German Treaty, with the following changes:—

(i.) Add at the end of paragraph 1:—

“nor to such of the above-mentioned measures as have been taken by Austria or the Austrian authorities since the 1st November, 1918, all of which measures shall be void.”

(ii.) Insert the italicised words in paragraph 14, so as to make it read as follows:—

14. The provisions of Article 36 [297]¹⁸ and this Annex relating to property, rights and interests in an enemy country, and the proceeds of the liquidation thereof, apply to debts, credits and accounts, Section III regulating only the method of payment.

In the settlement of matters provided for in Article 36 [297] between Austria and the Allied or Associated States, their colonies or protectorates, or any one of the British Dominions or India, in respect of any of which a declaration shall not have been made that they adopt Section III, and between their respective nationals, the provisions of Section III respecting the currency in which payment is to be made, and the rate of exchange and interest shall apply unless the Government of the Allied or Associated Power concerned shall within six months of the coming into force of the present Treaty notify Austria that one or more of the said provisions are not to be applied.

Section V.—Contracts, Prescriptions, Judgments

Same as Section V of German Treaty.

Section VI.—Mixed Arbitral Tribunal

Same as Section VI of German Treaty.

Section VII.—Industrial Property

Same as Section VII of German Treaty.

Add after Section VII the following new Section.

Section VII (bis).—Special Provisions Relating to the Property, Rights and Interests of Austro-Hungarian Nationals Who, Under the Present Treaty, Acquire the Nationality of an Allied or Associated Power

1. Individuals and juridical persons previously nationals of the former Dual Monarchy of Austria-Hungary, including Bosnia-Herzegovinians, who acquire ipso facto under the present Treaty, the nationality of an Allied or Associated Power, are designated in the provisions which follow by the expression “former Austro-Hungarian nationals.” The expression “Austrian nationals” designates those of the same classes of persons who retain Austrian nationality.

2. The Austrian Government shall without delay restore to former Austro-Hungarian nationals their property, rights and interests situated in Austrian territory. The said property, rights and interests shall be restored free of any charge or tax established or increased since the 1st November, 1918.

Legacies, donations and funds given or established in the former Dual Monarchy for the benefit of former Austro-Hungarian nationals, shall be placed by Austria, so far as the funds in question are in her territory, at the disposition of the Allied or Associated Power of which the former Austro-Hungarian nationals in question are now nationals, in the condition in which these funds were on the 28th July, 1914, taking account of payments properly made for the purpose of the Trust.

All exceptional measures taken by Austria during the war with regard to the property, rights and interests of former Austro-Hungarian nationals are annulled.

3. Each of the Allied and Associated Governments reserves the right to retain and liquidate in accordance with Article 36 [297] and the Annex to Section IV, Part [X] (Economic Clauses) of the present Treaty, the property, rights and interests which Austrian nationals or companies controlled by them, possessed on the 1st November, 1918, in the Austrian territories ceded to the Allied or Associated Government in question by the present Treaty.

Austria will compensate its nationals who may have been dispossessed by the aforesaid liquidations.

The proceeds of these liquidations shall be applied in accordance with the provisions of Sections III and IV of Part [X] (Economic Clauses) of the present Treaty.

Those Austrian nationals who, without acquiring the nationality of an Allied or Associated Power to whom territory is ceded by Austria in accordance with the present Treaty, shall receive permission to reside in the territories in question shall not be subjected to the provisions of the present Article.

4. All contracts between former Austro-Hungarian nationals on the one part and the Governments of the former Dual Monarchy of Austria, of Bosnia-Herzegovina, or Austrian nationals of the other part, which were made before the 1st November, 1918, and which were in force at that date, shall be maintained.

Nevertheless, any contract of which the Government of the Allied or Associated Power whose nationality the former Austro-Hungarian subject who is a party to the contract has acquired shall notify the cancellation to Austria within a period of six months from the date of coming into force of the present Treaty shall be annulled, except in respect of any debt or other pecuniary obligation arising out of any act done or money paid thereunder.

The cancellation above referred to shall not be made in any case where the Austrian subject who is a party to the contract shall have received permission to reside in the territory ceded to the Allied or Associated Power concerned.

5. If the annulment provided for in Article (4) would cause one of the parties substantial prejudice, the Mixed Arbitral Tribunal provided for by Section VI of Part [X] (Economic Clauses) of the present Treaty shall be empowered to grant to the prejudiced party compensation calculated solely on the capital employed, without taking account of the loss of profits.^ǁ

6. With regard to prescriptions, limitations, and forfeitures in the territories detached from Austria, the provisions of Articles 39 and 40 [300 and 301] of Section V of Part [X] (Economic Clauses) shall be applied with substitution for the expression “outbreak of war” of the expression “date, which shall be fixed by administrative decision of each Allied or Associated Power, at which relations between the parties became impossible in fact or in law,” and for the expression “duration of the war” of the expression “period between the date above indicated and that of the coming in force of the present Treaty.”

7. Austria undertakes to recognise, so far as she is concerned, any agreement or convention which has been or shall be made between the Allied and Associated Powers for the purpose of safeguarding the rights and interests of the nationals of these Powers interested in companies or associations constituted according to the Austro-Hungarian laws, which exercise any activities whatever in the territories detached from the former Dual Monarchy. She undertakes to facilitate all measures of transfer, to restore all documents or securities, to furnish all information, and generally to accomplish all acts or formalities appertaining to the said agreements or conventions.

8. The settlement of questions relating to debts contracted before the date mentioned below between Austria or Austro-Hungarian nationals resident in Austria on the one part and former Austro-Hungarian nationals resident in the ceded territories on the other part shall be effected in accordance with the provisions of Article 35 [296] and the Annex thereto, the expression “before the war” being replaced by the expression “before the date, which shall be fixed by administrative decision of each Allied or Associated Power, at which relations between the parties became impossible in fact or in law.”

proposals relating to the above section referred to other commissions for examination

1. To add to paragraph 1 of Article 2 the following:—

“Cash assets shall be repaid in money which is legal tender in Austria at the time of repayment.”

Referred to the Financial Commission with a favourable recommendation.

2. To add the following new paragraph:—

“9. Austria undertakes to recognise the value and redeemability of the notes, securities, or monies which may be in the possession of the Allied and Associated Powers or their nationals, notwithstanding any stamping or other measures prescribed by Austria with regard to the said notes, securities, or monies.”

Referred to the Financial Commission with a favourable recommendation.

3. The question of the rate of exchange applicable in regard to paragraph 8 was also referred to the Financial Commission.

4. To add to Article 2 the following:—

“In any case in which the property, rights, and interests cannot be restored within a period of one month, Austria and Hungary shall be jointly responsible for the amount of the compensation which they shall pay within a period of not more than three months from the coming into force of the present Treaty to the owner thus prejudiced.”

This proposal of the Yugo-Slav Delegation was not accepted by the Sub-Commission. The draft was referred to the Reparation Commission for any necessary action.

Section VIII.—Social and State Insurance in Ceded Territory

Same as Section VIII of German Treaty.

1. William M. Malloy (ed.), Treaties, Conventions, etc., Between the United States of America and Other Powers, 1776–1909 (Washington, Government Printing Office, 1910), vol. ii, p. 2066.
2. British and Foreign State Papers, vol. lxxxiv, p. 12.
3. Ibid., vol. lxxxv, p. 7.
4. Ibid., vol. Lxxxvii, p. 78.
5. Ibid., vol lxxxix, p. 159.
6. Ibid., vol. xcv, p. 421.
7. Ibid., vol. xcvi, p. 837.
8. Ibid., p. 839.
9. Filed separately under Paris Peace Conf. 185.22/37.
10. Presumably this Article will, as in the German Treaty, appear in the Austrian Treaty in the part relating to Ports, Waterways and Railways. It is to be subject to the provisions as to revision embodied in Article 378 of the German Treaty. [Footnote in the original.]
11. The Italian Delegation have made a reserve regarding the period of three years, and wish for a period of five years. [Footnote in the original.]
12. The Polish Delegation have made a reserve regarding this article. [Footnote In the original.]
13. Presumably this Article will, as in the German Treaty, appear in the Austrian Treaty in the part relating to Ports, Waterways and Railways. It is to be subject to the provisions as to revision embodied in Article 378 of the German Treaty. [Footnote in the original.]
10. G. Fr. de Martens, Nouveau recueil général de tradés (Leipzig, 1923), troisième série, vol. xi, p. 304.
11. British and Foreign State Papers, vol. xc, p. 303.
12. Ibid., vol. xcix, p. 986.
13. Ibid., vol. lxxiv, p. 44.
14. Treaties, Conventions, etc., 1910–1923, vol. iii, p. 2953.
15. British and Foreign State Papers, vol. lxxvii, p. 22.
16. Ibid., vol. cii, p. 619.
17. Ibid., vol. cvii, p. 353.
18. Brackets here and elsewhere in this document appear in the original.
19. The Italian, Polish, Roumanian, Serbian and Czecho-Slovak Delegations made formal reserves in regard to this Article. [Footnote in the original.]