Paris Peace Conf. 180.03501/37

HD–37

Notes of a Meeting of the Heads of Delegations of the Five Great Powers Held in M. Pichon’s Room at the Quai d’Orsay, Paris, on Saturday, 23 August, 1919, at 3:30 p.m.

  • Present
    • America, United States of
      • Hon. F. L. Polk.
    • Secretary
      • Mr. L. Harrison.
    • British Empire
      • The Rt. Hon. A. J. Balfour, O. M., M. P.
    • Secretaries
      • Mr. H. Norman.
      • Sir Geo. Clerk.
    • France
      • M. Clemenceau.
    • Secretaries
      • M. Berthelot.
      • M. de St. Quentin
    • Italy
      • M. Tittoni.
    • Secretary
      • M. Paterno.
    • Japan
      • M. Matsui.
    • Secretary
      • M. Kawai.
Joint Secretariat
America, United States of Col. U. S. Grant.
British Empire Lt. Commander Bell.
France Capt. A. Portier.
Italy Lt. Colonel Jones.
Interpreter—M. Meyer.

Field Marshal Sir H. Wilson, Mr. J. F. Dulles, and General Sackville-West, together with M. Loucheur and General Weygand were present.

1. The Council took note of a draft telegram (see Appendix “A”), which it was proposed to send to the Roumanian Government at Bucarest in the name of the Council. Roumanian Requisitions in Hungary

M. Loucheur said that the telegram in question had been drafted by the Organisations [Organising?] Committee of the Reparations Commission.

(It was decided that the telegram for communication to the Roumanian Government at Bucarest, on the subject of the requisition of war material by the Roumanian Army in Hungary, should be accepted and despatched.)

Mr. Polk informed the Council, that, when the Roumanians first showed an inclination to collect in Hungary whatever they thought due to them for reparation, he had asked the Government at Washington to stop the delivery of contracts undertaken between the United [Page 812] States and Roumania. The Roumanians had expressed indignation at this measure, but he thought it necessary to cut off all supplies to that country. He asked whether it had any other source of supply.

M. Clemenceau said that he did not know of any.

General Weygand said that the Council had previously decided to supply war material to Roumania, some of which had not yet been delivered.

M. Clemenceau said that the supplies not yet sent, ought to be stopped.

Mr. Balfour said that similar measures could be taken from London.

General Weygand asked whether supplies for which payment had been made should also be stopped.

M. Clemenceau said that they should.

M. Tittoni said that the Council of Four had decided on a previous occasion to reduce the armaments of new states.1 This decision had never been put into effect. The Military Representatives at Versailles ought to have suggested concrete proposals, but had not done so.

General Sackville-West said that a preliminary report2 had been given and a request made for further information on certain points; when this had been received, a final report could be sent.

M. Loucheur said that he had been the Chairman of the Committee dealing with the question, [and?] he and his colleagues had wished to know what material had been sent to the small States, but the Military Representatives at Versailles wanted to know the total armament under the control of each separate State. This was information that could not be obtained, since the countries concerned would not supply the necessary data. The amount of material delivered by Great Britain, Italy, and other Powers, had been communicated to Versailles, who could now make a report.

M. Tittoni, insisting on his previous point, stated that, despite the wish of the Council that armaments should be limited, so as to avoid future wars, no real effort was being made to impose this decision on the small States. It would appear that every nation was making further warlike preparations, which fact made the early solution of the question important.

M. Clemenceau said that when the question had been discussed, he had made considerable reservations. He had not seen how such restrictions could be imposed upon victorious States by their own Allies.

M. Tittoni remarked that some of the victorious countries appeared to be making ready for war.

[Page 813]

(It was decided that all delivery of war material to Roumania by the Principal Allied and Associated Powers should be stopped immediately, and that the prohibition should remain in force until further orders. The aforesaid prohibition was to extend to war material to be delivered under contract, and to war materials for which payment had been made.)

2. The Council took note of a telegram from Colonel Goodyear on the subject of the situation in Silesia. (See Appendix “B”.)

Situation in Silesia M. Loucheur said that he and Mr. Hoover were going to meet the German Representatives at Versailles, who hoped that a reply from the German Government would be to [on?] hand during the course of the afternoon.

Mr. Balfour said that it would be unwise to send the telegram, drafted by the Organizing Committee of the Reparations Commission until we knew whether the German Government would consent to the despatch of troops to Silesia, before the date specified in the Peace Treaty.

M. Loucheur replied that the German Government’s consent was only necessary for the despatch of troops, and not for the Coal Committee.

(M. Loucheur and Mr. J. F. Dulles then withdrew.)

3. Mr. Balfour said that he desired to make an appeal to his colleagues of the Council. Under the provisions of the Peace Treaty, German Prisoners ought to be returned to their own country on ratification. If the Parliaments of Italy, France and of other Allied countries had been able to ratify the Treaty, the prisoners would have been returned by now. He did not wish his colleagues to think that this remark implied any criticism whatsoever upon the parliamentary procedure in Allied countries. He did, however, draw the attention of the Council to the fact that the result of the delay was extremely burdensome. He had been informed by Field Marshal Wilson that there were 220,000 prisoners in English hands, and that the cost of keeping them was £90,000 a day, that is, £1,000,000 in 11 days. There was no military advantage to be gained from the retention of these prisoners. On the contrary, they detained British troops which were needed elsewhere. He hoped, therefore, that the Council might give a “bienveillant” consideration to the point that he laid before them. German Prisoners of War in Allied Countries

Mr. Polk said that the same question arose for the United States. The Americans had 40,000 prisoners guarded by 10,000 men. The demobilization of the specially raised American Armies was proceeding, and by the 30th September, the dissolution of the American War Forces should be complete. He had asked his legal advisors whether the prisoners in question might be transferred to another Power, and [Page 814] the answer had been, that, under the provisions of existing Treaties, such a transfer would not be legal. General Pershing had stated that the question was urgent. The total cost of paying the troops guarding the prisoners and of maintaining the prisoners themselves came to about 2,000,000 dollars a month.

Field Marshal Wilson then said that the total number of troops necessary for the custody of German prisoners was 60,000.

M. Clemenceau said that he approached the question from a different standpoint, in that he had 350,000 German prisoners employed in useful work on the devastated regions. He would therefore have preferred that the German prisoners should be transferred to him, so long as they remained under the control of the Government of the captor. He knew nothing of the legal aspect of the question of transfer, but wondered whether some form of contract could not be drawn up. Speaking frankly, he intended to return the German prisoners as late as he possibly could, but he had no intention of doing anything contrary to the provisions of the Peace Treaty. Whilst seeing the force of the British point of view, it did not seem to him possible to return the prisoners before the date stipulated under the Treaty. If, however, it were possible to do so, he wanted to retain the German prisoners in France to the last moment. The French Government had opened a discussion with the Austrian and Polish Governments, with a view to obtaining labour for the devastated regions, and he had reasons for hoping that negotiations would be successful. The German prisoners did not work well, and they were under custody of young soldiers of 19 and 20 years of age, who could not exercise much control over them. On the other hand, he would rather have German prisoners than nobody. He asked on what date the Peace Treaty would be ratified in Allied countries.

Mr. Balfour replied that he thought Great Britain would ratify on the 10th September.

M. Clemenceau said France would ratify about the 15th September.

M. Tittoni gave the same date.

Mr. Polk said that America might ratify later, possibly on about the 1st October.

Mr. Balfour remarked that it was not necessary for the other Allied Powers to wait for America. The ratification by the British Colonies would be early in September. The Treaty would come fully into force when Great Britain, France and Italy had ratified it.

M. Clemenceau said that in accordance with the dates just given, the Treaty would come into force in three weeks’ time. He suggested that Field Marshal Wilson should consult with General Weygand. It would, of course, be understood that Great Britain should retain all her rights over the prisoners taken by her Armies. He suggested that some kind of transfer might be found possible.

[Page 815]

Mr. Balfour asked what were the provisions of military law on the point in question.

M. Clemenceau replied that he did not know: he only wanted the two Generals to confer and report.

Field Marshal Wilson said that the question seemed rather to be one for lawyers.

Mr. Polk asked that General Pershing should also discuss the matter with Field Marshal Wilson and General Weygand.

M. Clemenceau said that Generals should bear in mind that prisoners could not be sent back at once. Such a measure would put France in a most difficult position, since it was evident that she had been devastated, and required work, whilst Great Britain and America had no such special needs.

M. Berthelot remarked that a precedent for the transfer of prisoners of war existed in the case of Belgium, which country had allocated seven or eight thousand men to France.

M. Tittoni added that after Serbia had been invaded, and the Austrian prisoners taken by that country delivered to Italy, Italy had made a loan of them to France.

(It was decided that Field Marshal Sir Henry Wilson, General Pershing and General Weygand [and] General Cavallero should examine conjointly by what means German prisoners in American and British hands, and at present in France, could be transferred to the French Government. The rights of the British and American Governments over the aforesaid prisoners should remain without alteration. A report on the above question should be submitted to the Council.)

4. Mr. Balfour said that Allied troops had been promised for plebiscite areas in Dantzig, Memel, Upper Silesia, Schleswig, and Klagenfurt. He did not wish in any way to raise the question of the number of troops that each of the Eastern Europe Allies was to supply. He wished to take the opportunity of repeating that Great Britain would carry out all engagements that she had entered into. He was only going to raise the question of how the troops should be distributed. He had been told that mixed forces raised difficulties of command and supply. The great harmony which existed between the Allied troops did not overcome the difficulties to which he had drawn attention. Troops were accustomed to be commanded by their own officers. They did not like passing under the orders of foreign Generals. They were, moreover, accustomed to have their own food, and be treated in their own hospitals. In a mixed division, every kind of supply had to come from four separate sources. He would therefore like to see each body of troops in a given locality, homogeneous. It was not [Page 816] quite possible, for the numbers of troops necessary for different localities varied. He wished, therefore, that the military experts could advise the Council how far some such measure could be put into effect. Inter-Allied Troops for Plebiscite Areas in Eastern Europe

M. Clemenceau said that he regarded Mr. Balfour’s argument as conclusive. There was, however, another, political, side to the question. He did not desire that any military occupation of Poland should take place without the French being represented. The relations between France and Poland were intimate, and he thought it most important that the French Army should go to that country. He considered Mr. Balfour’s remarks so forcible, however, that he thought his proposals might be considered at once with regard to Silesia.

General Weygand said that on the previous day, the Council had taken a decision for the despatch of two divisions.3 He had already been in consultation with General Pershing and Field Marshal Wilson on the subject. The discussion had been based on the understanding that each country should supply one-quarter of the total force.

M. Tittoni suggested that each contingent might be placed under its own command.

M. Clemenceau remarked that the French troops in Asia had been placed under the orders of a British General without the slightest discord arising. He thought, therefore, that General Weygand should continue to examine the question.

Mr. Balfour said that he thought that France should not only be represented in any military occupation of Poland, but that she should be largely represented.

General Weygand, remarking on Mr. Balfour’s last statement, said that the decision communicated to him had been that each Allied contingent should be equal.

M. Tittoni said that he had only agreed to equal contributions for one division. He made a reservation on the same principle being applied to the composition of two divisions.

Mr. Polk asked if he was right in understanding that the Committee of General Officers would report back their recommendations to the Council for final action.

(It was decided that Field Marshal Sir Henry Wilson, General Pershing and General Weygand should recommend a distribution among the Allies of the contingents to be furnished for the various plebiscite zones, such as to make each contingent a homogeneous national unit as far as consistent with the political necessity of having all the Allies represented in each region.)

5. General Weygand read the draft of a telegram to be transmitted to the German Government on the sale of aeronautical war [Page 817] material (see Appendix “C” and H. D. 36, Minute 44). Sale of Aeronautical War Material by Germany

Mr. Polk said that he was ready to accept the draft telegram, subject to his military advisers raising no objection. If any points were raised, he would let General Weygand know in the afternoon so that the transmission should not be delayed.

(It was decided that the draft telegram for transmission to the German Government on the subject of the sale of aeronautical war material should be accepted, subject to notification by Mr. Polk that he had no objection.)

(At this point General Weygand & General Sackville-West left the room.)

6. The Council took note of the report of the Blockade Committee on the subject of the measures to be taken in order to prevent trade with Bolshevik Russia (see Appendix “D”). Blockade of Russia

Mr. Polk said that certain points raised by his experts made it necessary for him to withhold his assent from the note for the present. In order to save time, however, he suggested that the ‘ note should be referred back to the Blockade Committee, and he would see that the American representative would lay before his colleagues such objections as might be raised, from an American point of view.

(It was decided that the draft note of the Blockade Committee should be referred back to that body for a further consideration of the American standpoint.)

7. The Council took note of a draft declaration prepared by the British Delegation on the subject of the blockade of Hungary. Modification of Declaration To Be Signed by Austria Undertaking To Maintain the Cessation of Commercial Relations With Hungary

(It was decided that the special declaration for signature by the Austrian Delegation (see Appendix with Hungary “E”) should be accepted.)

8. (At this point, M. Haas, Mr. Tyman, Mr. Headlam-Morley, and M. Adatci entered the room.)

Clauses Dealing With Ports, Waterways and Railways in the Peace Treaty With Austria M. Haas reported and commented upon Appendix “F”. He stated that the immediate application of the reciprocity clauses, as requested by Austria, had been refused in the case of the Germans, on the ground that it was not wished that the latter should profit by the devastations committed by its Armies. The Committee on Ports, Waterways and Railways thought another reason existed for postponing the application of these articles. The reason was, that the economic position of the New States, previously under the government of Vienna, should be supported in the years immediately following the war. The Committee on Ports, Waterways and Railways also considered, that it could not alter clauses involving material changes in the principles of the Peace Treaty.

[Page 818]

Mr. Balfour said that the Council was surely of the opinion that some kind of economic unity between the States of the late Austro-Hungarian Empire should be encouraged. If this could not be effected, the States in question would be powerless and would become subject to German economic penetration on a more extended scale than had existed before the war. Each State formed out of the old Austro-Hungarian Monarchy could be given a fair power of bargaining. If the Peace Treaty were presented in its present form, the Austrian Republic would not be in a position to bargain with its neighbours. We had a right to impose this disadvantage upon her, but it was not in our interest. But he certainly considered that it was to the advantage of the Allied Powers, that Austria should not be in a position to bargain with them. He would like to know the views of his colleagues on the subject.

M. Tittoni said that the Council might well consider whether immediate reciprocity could not be extended to Austria and the New States of the old Austro-Hungarian Empire. He thought that the second argument brought forward by the Committee on Ports, Waterways and Railways, as to the necessity of stabilizing the economic conditions of the States of the old Austro-Hungarian Monarchy, was a weak one. He did not see how the previous system of centralised government could affect transport problems in the New States. He added, that the transport system, which had previously been centralised at Vienna and Budapest, had worked very well.

Mr. Polk said he thought that they might be placing a severe handicap on the Austrian Republic by postponing the application of the reciprocity clauses. The Czecho-Slovak State would find it to their interest to have the restrictions, placed on Austria, removed. Bohemia had been so connected with Austria in the past, that an interference in the commercial exchange between the two States would obviously be a disadvantage to Czecho-Slovakia.

Mr. Haas said that the Committee on Ports and Waterways had made no specific proposal; but had drawn the attention of the Council to the problem. Its opinion coincided with that of Mr. Balfour. If the Council thought that the States concerned were to be regarded as possessing equal rights, reciprocity should be applied immediately. If they were not in that position, it should be withheld for a time.

Mr. Balfour said that he was in favour of granting immediate reciprocity between Austria and the New States formed out of the Austro-Hungarian Empire.

M. Tittoni said that he would only agree on the understanding that the reciprocity under discussion should exist between Austria and the New States formed by the old Austro-Hungarian Empire. He further insisted that the reciprocity should apply only to the clauses dealing with Ports, Waterways and Railways.

[Page 819]

(It was agreed that the articles dealing with Ports, Waterways and Railways, (Part XII) of the Peace Treaty with Austria, should be amended so as to allow of the immediate application of the reciprocity clauses between Austria and the States formed from the old Austro-Hungarian Monarchy by virtue of acquisitions of part of her territory.)

9. (It was decided that the alterations proposed in the Articles of the Treaty of Peace with Bulgaria dealing with Ports, Railways and Waterways, should be accepted.) (See Appendix G.)Clauses on Ports, Waterways and Railways in the Peace Treaty With Bulgaria

(At this point, Mr. Haas, Mr. Tyman, Mr. Headlam-Morley and Mr. Adatci left the room.)

10. Mr. Polk asked that the consideration of the proposed draft (See Appendix H), should be postponed to the next meeting. Reply by the Communication Section of the Supreme Economic Council to the Roumanian Note Relative to Regulation of Traffic on the Danube

(This was agreed to.)

11. Draft Treaties Between the Allied & Associated Powers and Poland, Roumania, Jugo-Slavia and Czecho-Slovakia, on the Subject of the Cost of Liberation of the Territories in the Former Austro-Hungarian Monarchy, (See Appendix I.)

12. Agreement Between the Allied & Associated Powers Relative to the Contribution Payable by Italy for the Liberation of Territories Belonging to the Former Austro-Hungarian Empire. (See Appendix J.)

(It was agreed that the consideration of the above draft agreements should be postponed.)

(The Meeting then adjourned.)

Villa Majestic, Paris, 23 August, 1919.

Appendix A to HD–37

[Translation5]

Telegram From the President of the Peace Conference to the Roumanian Government at Bucharest

The Peace Conference has received information, the veracity of which it unfortunately feels it impossible to dispute, indicating [Page 820] that the Roumanian forces in Hungary are continuing systematically to seize and carry off Hungarian property.

In view of the correspondence recently exchanged between the Peace Conference and the Roumanian Government, it is difficult to understand such action on the part of the Roumanian Government except on the hypothesis that the Roumanian Government is unaware of the principles of reparation agreed to.

Yet, by reason of its participation in the labors of the Peace Conference and as one of the signers of the treaty of peace with Germany, the Roumanian Government should not be unaware of the care which the Allied and Associated Powers took in establishing a rational plan of reparation. If the principle that compensation for losses suffered had depended solely upon such factors as the proximity of enemy property or upon the result of competition between Allied States to take possession of such property, flagrant injustices and serious disagreements would have been the inevitable result. Thus the treaty with Germany, to which Roumania is a contracting party, set down certain fundamental principles of reparation and, in particular the following:

1.
All the enemy states are jointly and severally liable and to that effect their assets are pooled in the interest of all the powers.
2.
A system of accounting is established so that all of the interested states may share in the common fund in proportion to the amount of their approved claims, from which is deducted the amount of approved indemnities.
3.
A Central Reparation Commission, which will operate as the exclusive representative of the Allied and Associated Powers, will have the duty of collecting enemy assets and distributing them as reparations.

The action of the Roumanian forces, to which reference has been made above, can only be considered as defection from this plan of joint liability, in the sense that it implies appropriation for its personal use of enemy property which in reality constitutes the common security of all the Allies. The actions mentioned above likewise contravene the accepted principle that the Reparation Commission is to act as the exclusive representative of the Allied and Associated Powers in verifying, for reparations purposes, the amount of enemy property.

In this respect the attitude of Roumania is incompatible with that of a state which desires and hopes to profit by the reparation clauses of the treaty of peace concluded or to be concluded.

Still further, the Government of Roumania cannot be unaware of the fact that M. Antonesco, its plenipotentiary at the Peace Conference, on June 27, accepted subject to the approval of his Government, the principle of a contribution by Roumania to the expenses [Page 821] of liberating the enemy people and territories which it acquired, this contribution being compensated by offsetting the amount against the first claims of Roumania for reparation.

Nor can the Roumanian Government be unaware of the fact that a stipulation was made at that time that no new payment could be made as reparations until the other states to which reparation is due had received their proportionate share.

It is on the basis of this agreement that the other Allied and Associated Powers agreed not to take advantage of their rights to impose a scale of indemnity based on the considerable resources which Roumania is to acquire from the enemy.

Saving retraction on its part, Roumania’s recent acts can only be considered as a renunciation by its Government of the agreement of June 27.6 Such renunciation would give back to the Allied and Associated Powers their full freedom of action with respect to the imposition of a lien for reparations on all the territories of the former Austro-Hungarian Monarchy which the Government of Roumania may hope to receive.

The other possible consequences of the line of conduct which Roumania seems to have adopted are so serious and would be such a danger to the equitable restoration of Europe that the Allied and Associated Powers would feel themselves compelled, should necessity force them to it, to adopt a much firmer line of conduct in order to avoid these consequences. It is quite evident that, if the principle of reparations were to degenerate into individual appropriation and a competition between the various interested powers, injustice would result therefrom, appetites would be created and, in the confusion produced by these disordered actions, either the enemy “would get away” or it would be impossible to exact of him the maximum of reparations. Nevertheless, the Allied and Associated Powers cannot believe that the Roumanian Government would wish to create such a danger and to force them to cause this danger to disappear. Accordingly the Peace Conference expects the Roumanian Government, immediately and without equivocation, to furnish it with the following declaration:

1.
The Roumanian Government recognizes the principle that the property of enemy states constitutes a common security for all the Allied and Associated Powers.
2.
It recognizes the Reparations Commission as the exclusive representative in verifying property for reparations purposes, the amount of enemy property.
3.
Hungarian assets received by Roumania since the armistice on November 3, 1918, shall be the subject of an itemized inventory on the part of the Roumanian Government which shall be placed at the disposition of the Reparations Commission or the intermediary which [Page 822] the Peace Conference may designate while awaiting the establishment of the Commission. Roumania will retain the right to dispose only of property which can at this time be identified as former Roumanian property seized by the enemy and shall do this in agreement with the Reparations Commission.
4.
All new shipments of Hungarian property into Roumania shall cease immediately unless they are made in agreement with the Peace Conference or its representatives.
5.
The Roumanian Government will ratify the agreement of June 27, signed by M. Antonesco and mentioned above.

The Peace Conference authorizes the Allied Generals at Budapest to name the agents who will represent the Peace Conference in all the proceedings which may be envisaged.

Appendix B to HD–37

[The President of the Goal Commission for Central Europe (Goodyear) to the Director General of Relief (Hoover)]

lx. u. 200

Hoover, Paris.

Conferences this morning and evening with mine owners and military authorities has resulted in agreement by commanding general of district that no more executions will take place until further conference. I agreed to undertake return of prisoners taken into Poland by retiring insurgents and have had meeting with General Commandant Polish front this afternoon. All these prisoners have been sent to Crakow and held there under charge of Haller. I communicated with Haller and he agreed to hold there until further notice from me. I have appointment with Haller tomorrow noon and will arrange with them to return the prisoners with an American officer accompanying them. Polish authorities have directed Haller to follow my directions in these matters. I will have further meeting with the German General Friday afternoon. Will instruct strongly against any action before arrival of Upper Silesian committee. Haller’s troops are behaving very well and without their presence here a state of war would have arrived before now. It is of utmost importance that announcement be made of appointment of Upper Silesian Commission at once, this announcement to state when Commission will commence to act and to be published in German and Polish newspapers. If Paris does not act now after all the months delay that have produced so much bitterness between Poles and Germans I can guarantee that there will be another war.

Goodyear
[Page 823]

Appendix C to HD–37

[Translation7]

Telegram to the Inter-Allied Armistice Commission

Please notify the German Armistice Commission for German Government following decision of the Supreme Council of the Allies:

First: Article 169 of the treaty of peace stipulates that all German war material in excess of the amounts which Germany is authorized by the treaty to keep must be surrendered to the Allied and Associated Powers.

Accordingly, Germany must not sell, transfer or export such war material which is henceforth the property of the Allies.

Second: In particular, it must not sell, transfer or export any aeronautical material (airplanes, motors, spare parts), including motors captured from the Allies and airplanes transformed into so-called civil airplanes which are, in fact, war material.

Third: As an exception, the Allies, in the use of their right of ownership of the material which must be surrendered to them, authorize Germany to transfer:

a)
To General Yudenitch: 8 captured Russian cannons, 1,000,000 cartridges for rifles, 50 Russian revolvers, 3 German airplanes, clothing for 1,000 men (material requested by telegram 977/P. G. 2 from C. I. P. A.)
b)
To Czechoslovakia: 50,000 Mauser rifles, 10,000 Mauser carbines, about 2,000 machine guns with 10,000 cartridges for each and 100,000 rounds of artillery ammunition for field mortars (material requested by note 1685 from C. I. P. A.), in addition to 500 signal projectors with accessories requested by Czechoslovakia.

Appendix D to HD–37

[Translation7]

Note To Be Sent by the Inter-Allied Armistice Commission to the German Government

The Allied and Associated Governments have decided to send the attached note to the Governments of neutral states, to invite them to take immediate measures with a view to preventing a resumption of commercial relations with Bolshevik Russia.

The German Government is requested on its part to take similar measures.

[Page 824]

Note—Blockade of Bolshevik Russia

The avowed hostility of the Bolshevists to all governments and the program of international revolution which they propagate constitute a serious danger for the national security of all powers. Any growth in the strength of the Bolshevists would increase the danger and would be contrary to the desire of all nations which seek to establish peace and social order.

It is in this spirit that the Allied and Associated Powers, after raising the blockade of Germany, did not authorize their nationals to resume commercial relations with Bolshevik Russia. Such relations, in fact, could take place only through the medium of the heads of the Bolshevik Government who, disposing as they liked of the products and resources which commercial freedom would afford them, would draw therefrom a considerable increase in strength and in the tyranny which they exercise over the Russian peoples.

In these circumstances, the Allied and Associated Governments request the Government to be good enough to take immediate measures to prevent its nationals from engaging in any trade with Bolshevik Russia and to give the assurance that it will strictly carry out this policy in agreement with the Allied and Associated Governments.

The measures in question to be applied by the Allied and Associated Governments from the date of the present note are the following:

a)
Refusal of clearance papers to any vessel departing for Russian ports in the hands of the Bolshevists or coming from the said ports.
b)
Establishment of a similar measure on all goods intended to be sent either directly or indirectly to Bolshevik Russia.
c)
Denial of passports to all persons going to Bolshevik Russia or coming from it (except on understanding with the Allied and Associated Governments in special cases).
d)
Provisions in order to prevent banks from having business with Bolshevik Russia.
e)
So far as possible, denial by each Government to its own nationals of communication facilities with Bolshevik Russia by mail, telegraph or wireless.

The attention of the . . . . . . Government is called to the fact that no proclamation of these measures is necessary and that it is sufficient to advise the administrations and banks concerned regarding them by administrative channels.

It will, of course, be understood that any warship of an Allied or Associated Power charged with the execution of the above measures will act in the name of the Allied and Associated Powers as a group.

[Page 825]

Appendix E to HD–37

M–492

Note by British Delegation

While the Government of Bela Kun was still in office in Budapest the Supreme Council decided that a Declaration was to be drawn up for signature by the Austrian Delegation at the same time as the signature of the Austrian Treaty, undertaking to enforce the complete cessation of all commercial relations with Hungary—to maintain in fact a blockade of Hungary.

Now that Bela Kun’s Government has fallen it would seem desirable to modify the terms of this Declaration. The following form is suggested:—

Special Declaration

The Austrian Government will continue, in the absence of a request to the contrary by the Governments of the United States, the British Empire, France and Italy, effectively to prohibit the import, export and transit of all articles between Austria and Hungary, and to maintain such prohibition up to the time of the formal acceptance by the Government of Hungary of the terms of peace proposed by the Allied and Associated Governments.

British Delegation, August 22, 1919.

Appendix F to HD–37

[Translation9]

commission on the international régime of
ports, waterways and railways

Report of the Commission on the International Regime of Ports, Waterways and Railways on the Subject of the Observations of the Austrian Delegation Concerning Part XII of the Conditions of Peace

The Commission on the International Regime of Ports, Waterways and Railways has the honor to forward herewith (Enclosures 1 and 210) a draft reply to the observations of the Austrian delegation and a draft of amendments to the text of the conditions of peace with Austria. The Austrian delegation, while accepting certain unilateral stipulations vis-à-vis powers which have been at war with the Austro-Hungarian Monarchy, requested, on the other hand, immediate reciprocity with respect to its relations with states which it claims are successors to the former Austro-Hungarian Monarchy on the [Page 826] same basis as Austria itself. The Commission did not believe itself competent to examine the advisability of a profound change in this direction of the clauses, as such a problem arises in the same way in connection with a great many economic and financial stipulations of the treaty, its settlement must be reserved to the political authorities of the Peace Conference.

Coromilas
, Acting Chairman

Appendix G to HD–37

commission on the international régime of
ports, waterways and railways

From: The Chairman of the Commission on the International Régime of Ports, Waterways and Railways.

To: The President of the Peace Conference.

Sir: As an Annex to its report of 21st June, 1919,11 the Commission on the International Régime of Ports, Waterways and Railways transmitted certain draft articles for insertion in the Treaty of Peace with Bulgaria.

Subsequently, when the proposed amendments in connection with the Conditions of Peace with Austria were being discussed, the Commission inserted in the text of these articles certain alterations and improvements with regard to form.

The Commission is unanimous in considering that it would be most desirable for these alterations to be also introduced in the articles to be inserted in that section of the Treaty of Peace with Bulgaria which deals with Ports, Waterways and Railways.

A list of the said alterations is sent herewith. The articles referred to in this list are those which were transmitted as an annex to the Report of 21st June, submitted by the Commission on the International Régime of Ports, Waterways and Railways on the clauses to be inserted in the Treaty of Peace with Bulgaria.

Annex*

Amendments to the Articles To Be Inserted in the Treaty of Peace With Bulgaria, Proposed by the Commission on the International Régime of Ports, Waterways and Railways

Article 8. Add a second paragraph worded as follows:—

“It shall be open, by subsequent agreements concluded between the riparian states similarly to declare international any part of the above-mentioned river system which is not included in the general definition.”

Article 9. Omit the two last paragraphs.

[Page 827]

Article 9a. New articles consisting of the two paragraphs from the preceding Article 9.

Article 16. Bulgaria shall cede to the Allied & Associated Powers concerned within the maximum period of three months from the date on which notification shall be given her, a proportion of the tugs and vessels remaining registered in the ports of the river system referred to in Article 8, after the deduction of those surrendered by way of restitution or reparation. Bulgaria shall in the same way cede material of all kinds necessary to the Allied and Associated Powers concerned for the utilisation of that river system.

The number of the tugs and vessels and the amount of the material so ceded, and their distribution, shall be determined by an arbitrator or arbitrators nominated by the United States of America, due regard being had to the legitimate needs of the parties concerned, particularly to the shipping traffic during the five years preceding the war.

All craft so ceded shall be provided with their fittings and gear, shall be in a good state of repair, and in condition to carry goods and shall be selected from among those most recently built.

Wherever the cessions made under the present Article involve a change of ownership, the arbitrator or arbitrators shall determine the rights of the former owners as they stood on the 15th October 1918, and the amount of the compensation to be paid to them, and shall also direct the manner in which such payment is to be effected in each case. If the arbitrator or arbitrators find that the whole or part of this sum will revert directly or indirectly to States from whom reparation is due, they shall decide the sum to be placed under this head to the credit of the said States.

As regards the Danube, the arbitrator or arbitrators referred to in this Article will also decide all questions as to the permanent allocation and the conditions thereof, of the vessels whose ownership or nationality is in dispute between States.

Pending final allocation, the control of these vessels shall be vested in a Commission consisting of representatives of America, Great Britain, France and Italy, who will be empowered to make provisional arrangements for the working of these vessels in the general interest by any local organisation, or failing such arrangements, by themselves, without prejudice to the final allocation.

As far as possible, these provisional arrangements will be on a commercial basis, the net receipts by the Commission of the hire of these vessels being disposed of as directed by the Separation Commission.

Article 19. Add: “The decisions of this International Commission shall be taken by a majority vote. The salaries of the Commissioners shall be fixed and paid by their respective countries.”

As a provisional measure any deficit in the administrative expense [Page 828] of this International Commission shall be borne equally by the States represented on the Commission.

In particular, this Commission shall regulate the licensing of pilots, charges for pilotage and the administration of the pilot service.

Article 35. 1st Para. Omit the Words: “after five years,” and substitute “after three years.”

Line 1. Substitute: “stipulations of Articles 1 to 7, 9, 25, and 27 to 29” by “stipulations of Articles 1 to 7, 9a, 25, and 27 to 29.”

2nd para. Omit the words: “The period of five years,” and substitute “The period of three years.”

Appendix H to HD–37

M–91

regulation of trade on the danube

Draft Letter From the President of the Conference to M. Bratiano

(Draft Agreed by Communications Section of Supreme Economic Council)

Sir: I have the honour to acknowledge the receipt of your letter of the 26th June on the subject of the Danube which was addressed separately to the Heads of the European States represented on the Supreme Council at Paris.

I regret the delay in sending a reply which has been due partly to the delay in bringing into touch officials to whom the separate letters had been referred, and partly because it was desired to await the decisions resulting from certain proposals which were already under consideration in the sense of the requests made by you.

It is observed that the first part of your letter which is historical deals largely with matters which have been very contentious and cannot be regarded as complete. The questions referred to will doubtless be fully dealt with at the Conference on the Danube referred to in Article 349 of the Treaty of Peace with Germany, and it does not appear necessary to consider them further at the present moment. It is sufficient to draw attention to the fact that under Articles 346, 347 and 348 of the Treaty of Peace with Germany, a provisional arrangement is arrived at:—

(a)
For the reconstitution of the European Commission of the Danube with the powers it possessed before the War, but limited to representatives of Great Britain, France, Italy and Roumania.
(b)
For the constitution of an International Commission to undertake provisionally the administration of the river above the point where the competence of the European Commission ceases until such time as a definitive statute regarding the Danube is concluded by the Conference referred to in Article 349.

[Page 829]

The European Commission of the Danube is in effect in existence. Members of the different nations represented on it have been designated and it is understood the question of the necessary credits is receiving the attention of the Governments concerned. As regards the Commission for the provisional administration of the Upper Danube, this is to take effect as soon as possible after the coming into force of the Peace Treaty. As, however, several Enemy States are concerned, it is essential that arrangements should be made for the functioning of this Commission before the Peace Treaties have been concluded with all such Enemy States.

At the present moment the only International regime possible on the Danube is a military one under the Allied Commander-in-Chief, who has the necessary control over the Enemy States in virtue of the conditions of the Armistice and of his powers for the maintenance of order. In order, however, that normal conditions may be resumed on the Danube at the earliest possible moment, notwithstanding the uncertainty as regards frontiers, the contested final ownership of many of the river craft and until recently the maintenance of the Blockade, the Supreme Economic Council arranged for the necessary instructions to be sent to the Allied Commander-in-Chief to give facilities for the re-opening of all river traffic under conditions of equality of treatment underlying the Treaty of Peace. For this reason an Allied Commission under the Presidency of Admiral Troubridge was constituted, one of whose functions was the issue of licences to enable relief and commercial traffic to pass freely along the river, notwithstanding the Blockade. This Commission is further responsible to the High Command for the provisional administration of common services, such as pilotage and the organization of the Iron Gates, some of which were previously carried out by Enemy States.

It will be seen therefore, that the functions of the Commission are vital to the re-establishment of commercial traffic on the Danube during the present period of the military control of the river. It is recognised however, that, in so far as control of the International regulation of the river is concerned, there should be continuity between the present régime and that which will be established under Articles 347 and 348 of the Treaty of Peace with Germany. An invitation will, therefore, be sent to the non-enemy riparian States to nominate each a representative to be attached to the provisional Inter-Allied Commission in order to co-operate in working out the regulations for the navigation of the Upper Danube. It is hoped that the riparian States will designate as their representatives their proposed representatives on the Upper Danube Commission referred to in Article 347 of the Treaty with Germany, as in this way it should be possible to transfer to this Commission the functions of regulating [Page 830] the navigation of the Upper Danube at a considerably earlier date than would have been possible without the transitional arrangement.

It is well known that a complex situation has arisen as regards the ownership of a large number of vessels on the Danube. A final solution of all these cases has been provided for in the Peace Treaty by extending the competence of the arbitrator, to be designated by the United States, to the settlement of all questions of disputed ownership of vessels, the interim period being provided for by the constitution of a special Commission consisting of representatives of America, Great Britain, France and Italy to exercise provisional control over vessels of disputed ownership.

In order to facilitate the circulation of vessels which are at the present moment understood to be retained within national frontiers by the fear of their being claimed and taken possession of by adjacent States, it is proposed to anticipate the formation of the above special Commission by constituting the existing Allied Commission as trustee for all vessels the ownership of which is disputed until such time as the final decision has been given by the American arbitrator under the Treaty of Peace as to the ownership of these vessels. This Commission would arrange for all vessels of undisputed ownership to be returned as quickly as possible to their proper owners and, as regards vessels, the ownership of which involves disputes between two States would have authority to place them at the disposal of the most convenient local administration or if necessary provisionally to operate them in order to assure the unmolested working of such vessels in all parts of the river without in any way prejudicing the decisions of the American arbitrator as to final ownership.

It will be evident from this explanation that all the action taken has been in the interests of that complete freedom of navigation which the Roumanian Government desires to see re-established, and tends to the earliest possible introduction of the regime which has been prescribed in the Treaties of Peace.

Appendix I to HD–37

Agreement Between the United States of America, Belgium, Bolivia, Brazil, the British Empire, China, Cuba, Ecuador, France, Greece, Guatemala, Haiti, the Hedjaz, Honduras, Italy, Japan, Liberia, Nicaragua, Panama, Poland, Portugal, Roumania, the Serb-Croat-Slovene State, Siam, the Czechoslovak State, and Uruguay, With Regard to the Contributions to the Cost of Liberation of the Territories of the Former Austro-Hungarian Monarchy

The undersigned, duly authorised by their respective Governments, have agreed on the following provisions.

[Page 831]

Article 1

Poland, Roumania, the Serb-Croat-Slovene State, and the Czechoslovak State, as States to which territory of the former Austro-Hungarian Monarchy is transferred or States arising from the dismemberment of that Monarchy, severally agree to pay, as a contribution towards the expenses of liberating the said territories, sums not exceeding in the aggregate the equivalent of 1,500,000,000 francs gold, the gold franc being taken as of the weight and fineness of gold as enacted by law on January 1, 1914.

Article 2

The total amount of the contribution referred to in Article 1 shall be divided between the said States on the basis of the ratio between the average for the three financial years 1911, 1912, and 1913 of the revenues of the territories acquired by them from the former Austro-Hungarian Monarchy, the revenues of the provinces of Bosnia and Herzegovina being excluded from this calculation. The revenues forming the basis for this calculation shall be those adopted by the Separation Commission, in accordance with Article 199 of Part IX (Financial Clauses) of the Treaty of Peace with Austria as best calculated to represent the financial capacity of the respective territories. Nevertheless, in no case shall the sum paid by the Czecho-Slovak State exceed the sum of 750,000,000 francs. Should the contribution attributable to the Czecho-Slovak State exceed the sum of 750,000,000 francs, the difference between that sum and the sum of 750,000,000 francs shall be in diminution of the agreement sum of 1,500,000,000 francs and shall not be attributable to the other States.

Article 3

The amount due as above by each State for liberation, together with the value of the property and possessions of the former Austro-Hungarian Monarchy transferred to each of them, assessed in accordance with Article 204 of Part IX (Financial Clauses) of the Treaty of Peace with Austria, shall be set off against the approved claims, if any, of these States for reparation.

Article 4

If in the case of any of the above States the amount due for liberation and the value of property transferred is in excess of the approved reparation claims, that State shall, within three months of the notification [Page 832] to it by the Separation Commission of the amount, if any, of its approved claims for reparation, issue bonds to the amount of this excess and shall deliver them to such person or body as the Governments of the United States of America, the British Empire, France and Italy may designate.

The above bonds shall be to bearer, principal and interest being payable by the issuing state without deduction for any tax or charge imposed by or under its authority. The bonds shall bear interest at the rate of five per cent, per annum payable half yearly, beginning on January 1, 1926. They shall be repaid in twenty-five equal annual drawings, beginning on January 1, 1931. The issuing State, however, may, at its option, redeem all or part of the bonds issued by it, at par and accrued interest, at any time, provided ninety days’ notice of its intention so to do is given to the Governments of the United States of America, the British Empire, France and Italy.

Article 5

In the case of those states whose approved claims for reparation are in excess of the amount due for liberation and the value of property transferred, the amount chargeable to these States in accordance with Article 3 shall be reckoned as payments by way of reparation, and no further payments on account of reparation shall be made to them until the other States to which Reparation is due shall have received payments on account of a like proportion of their approved claims for reparation.

Done at . . . . . the … day of . … 1919.

Appendix J to HD–37

Agreement Between the United States of America, Belgium, Bolivia, Brazil, the British Empire, China, Cuba, Ecuador, France, Greece, Guatemala, Haiti, the Hedjaz, Honduras, Italy, Japan, Liberia, Nicaragua, Panama, Poland, Portugal, Roumania, the Serb-Croat-Slovene State, Siam, the Czecho-Slovak State, and Uruguay, With Regard to the Italian Reparation Payments

The undersigned, duly authorized by their respective Governments, have taken note of the declaration made by Italy in Article I of the present Agreement, and have agreed on the subsequent provisions.

Article 1

Italy declares that she has made the greatest sacrifices and borne the heaviest financial burdens in the war waged for the liberation of [Page 833] Italian territory remaining subject to the former Austro-Hungarian Monarchy, and for the other lofty aims of the Allied and Associated Powers;

That, in addition, the territories ceded to Italy have sacrificed, as a result of the Treaty of Peace with Austria, a large proportion of their wealth, and that they have already contributed in other ways to the reparation of damages caused by the war in which they have so cruelly suffered;

That, nevertheless, with the object of facilitating an agreement between the States arising from the dismemberment of Austro-Hungary, or acquiring territories of the former Monarchy, as to the contribution to be made by them towards the cost of liberating the territories of the former Austro-Hungarian Monarchy and of reparation, Italy agrees to contribute to these expenses in the manner provided in the present Agreement.

Article 2

Italy, as a State acquiring territories formerly part of the Austro-Hungarian Monarchy, agrees, on account of such acquisition, to be debited against her approved claims for reparation under the Treaties of Peace concluded with Germany, Austria, and the Powers which fought upon their side, with a sum in gold francs (the gold franc being taken as of the weight and fineness of gold as enacted by law on January 1, 1914) to be calculated as set out in Article 3 below.

Article 3

The ratio between the sum to be debited to Italy in accordance with Article 2 and the sum of 1,500,000,000 francs gold (or between such sum and the total amount of the contributions to be made by the Czecho-Slovak State, Poland, Roumania and the Serb-Croat-Slovene State, if this amount is less than 1,500,000,000 francs gold, as provided in the agreement of even date between the High Contracting Parties) shall be the same as the ratio between the average revenues for the three financial years 1911, 1912, 1913 of the territories transferred to Italy and the average revenues for the same years of the whole of the territories of the former Austro-Hungarian Monarchy transferred, whether to Italy or to the other Powers mentioned above, under the Treaties of Peace with Austria and Hungary. It is understood however that the revenues of the provinces of Bosnia and Herzegovina shall be excluded from this calculation.

The revenues serving as the basis of this calculation shall be those accepted by the Reparation Commission, in accordance with the provisions of Article 199 of Part IX (Financial Clauses) of the Treaty of Peace with Austria, as best representing the financial capacity of the respective territories.

[Page 834]

Article 4

The sum so calculated, together with the value of the property and possessions of the former Austro-Hungarian Monarchy transferred to Italy, assessed in accordance with Article 204 of Part IX (Financial Clauses) of the Treaty of Peace with Austria, shall be set off against the approved claims of Italy for reparation. The total of these two sums shall be reckoned as payments by way of reparation, and no further payments shall be made to Italy on account of reparation until the other States to which reparation is due shall have received payments on account of a like proportion of their approved claims for reparation.

Done at . . . . . . . the . . . . . . day of . . . . . . . 1919.

  1. CF–46, minute 5, vol. vi, p. 182.
  2. Appendix B to CF–27, vol. v, p. 885.
  3. HD–36, minute 2, p. 783.
  4. Ante, 789.
  5. Translation from the French supplied by the editors.
  6. For draft text, see appendix I to HD–37, p. 830.
  7. Translation from the French supplied by the editors.
  8. Translation from the French supplied by the editors.
  9. Translation from the French supplied by the editors.
  10. The enclosures do not accompany the file copy of this appendix.
  11. Appendix A to HD–19, p. 409.
  12. Corrected version, handed to the French for signature by chairman 17/8/19. [Note on original.]