Paris Peace Conf. 180.03501/97

HD–97

Notes of a Meeting of the Heads of Delegations of the Five Great Powers Held in M. Pichon’s Room, Quai d’Orsay, Paris, on Thursday, November 20, 1919, at 10:00 a.m.

  • Present
    • America, United States of
      • Hon. Henry White
    • Secretary
      • Mr. L. Harrison
    • British Empire
      • Sir Eyre Crowe
    • Secretary
      • Mr. H. Norman
    • France
      • M. Pichon
    • Secretaries
      • M. Dutasta
      • M. Berthelot
      • M. de Saint Quentin
    • Italy
      • M. de Martino
    • Secretary
      • M. Barone Russo
    • Japan
      • M. Matsui
    • Secretary
      • M. Kawai
Joint Secretariat
America, United States of Capt. G. A. Gordon
British Empire Capt. G. Lothian Small
France M. de Percin
Italy M. Zanchi
Interpreter—M. Mantoux

The following were also present for items in which they were concerned:

  • America, United States of
    • Colonel J. A. Logan
    • Dr. I. Bowman
    • Captain Madison, U. S. N.
    • Mr. A. W. Dulles
  • British Empire
    • Lieut-Col. Kisch
    • Mr. A. Leeper
    • Mr. MacFadyean
    • Mr. Carr
  • France
    • M. Laroche
    • General Le Rond
    • M. de Montille
  • Italy
    • M. D’Amelio
    • M. Vannutelli-Rey
    • M. Stranieri
  • Japan
    • M. Shigemitsu

1. Sir Eyre Crowe called the Council’s attention to the importance of definitely settling the conditions of Peace to be submitted to the [Page 237]Hungarians. The latest news from Budapest indicated that a coalition Government was in process of formation. He had just received two telegrams from Sir George Clerk (See Appendices “A” and “B”) which contained favorable news. A final, definite draft should be ready for submission by the time the Hungarians were in a position to send negotiators to Paris. But to arrive at such a final draft certain questions which were still undecided would have to be settled. The most important one related to the expenses caused by Roumanian occupation of Hungary and the means of meeting the same. If that point were now brought up for discussion it might take months to settle it. He thought it would be well to study the suggestion of the American legal experts that a clause should be inserted in the Treaty with Hungary giving the Reparation Commission power to settle that whole question in view of existing circumstances. The Drafting Committee might be asked to come at once to an agreement with the Committee on Organization of the Reparation Commission in order to draft such a clause. Another question to be settled related to the cession of Fiume; a formula to that effect would have to be found which could be inserted in the Treaty of Peace with Hungary. He thought that the Drafting Committee could likewise be charged with that task. Hungarian Treaty

M. Berthelot observed that as soon as the two points mentioned by Sir Eyre Crowe had been settled the Hungarian Treaty would be entirely ready for submission to the Hungarian Delegates.

It was decided:

(1)
that the Drafting Committee, in agreement with the Committee on Organization of the Reparation Commission, should prepare a draft article to be inserted in the Treaty with Hungary giving the Reparation Commission full power to settle the questions raised by the expenses of Roumanian occupation of Hungary;
(2)
that the Drafting Committee be charged with the preparation of a draft clause to be inserted in the Treaty with Hungary relating to the cession of Fiume by Hungary.

2. (The Council had before it a report of the Committee on Organization of the Reparation Commission relating to the demands of the Serb-Croat-Slovene Delegation on the subject of the distribution of Austro-Hungarian mercantile tonnage (See Appendix “C”).) Report of the committee on Organization of the Reparation Commission Relating to the Demands of the Serb-Croat-Slovene Delegation on the Subject of the Distribution of Austro-Hungarian Mercantile Tonnage1

M. Loucheur read and commented upon that report. He was glad to be able to state that the Committee on Organization of the Reparation Commission, at a meeting attended by Italian and Jugo-Slav Representatives, had reached an unanimous decision. The formula agreed upon seemed to him a good one. [Page 238]With respect to vessels of less than 2,000 tons the owners were to be left a free choice of flag in accordance with their nationality. It was understood that further agreement would be reached with respect to vessels of greater tonnage and that the Jugo-Slav Delegates would be heard at the moment of reaching such an agreement.

M. de Martino wished to emphasize the importance of this solution which had been made possible as a result of a spontaneous agreement between Italy and Jugo-Slavia. He was glad to note that M. Loucheur himself had brought up that point.

M. Loucheur replied that he had appreciated the conciliatory attitude of the Italian Delegates on that point. He likewise felt called upon to note that M. Trumbitch had likewise abated his original claims.

M. de Martino wished to bring up a related point on which he had come to an agreement with the Jugo-Slav Delegate, namely; that the delivery of Austro-Hungarian Mercantile tonnage in the Adriatic should take place within the period laid down by Part VIII, Annex 3, paragraph 2, of the Treaty of Peace with Austria, that is to say, within two months after the coming into force of the Treaty.

M. Loucheur saw no objection in principle to the arrangement proposed by M. De Martino; he desired, however, further time to examine the question more closely.

It was decided:

(1)
to approve the recommendations of the Committee on Organization of the Reparation Commission relative to the distribution of Austro-Hungarian mercantile tonnage;
(2)
that M. De Martino’s suggestion, relative to the period within which such distribution should be made, be referred to the Committee on Organization of the Reparation Commission.

3. (The Council had before it a report of the Committee on Organization of the Reparation Commission relative to the provisional distribution of rolling stock between states forming part of the former Austro-Hungarian Monarchy (See Appendix“D”2). Report of the Committee on Organization of the Reparation Commission on the Provisional Distribution of Rolling Stock Between States Forming Part of the Former Austro-Hungarian Monarchy

M. Loucheur pointed out that the situation with respect to the rolling stock in the States forming part of the former Austro-Hungarian Monarchy was very serious. The majority of the States concerned had kept the rolling stock which they had at the termination of hostilities, and refused to let said rolling stock [Page 239]circulate beyond their respective boundaries. The result was that railway traffic was almost entirely stopped. To remedy this condition it seemed necessary to establish at Vienna a Commission charged with effecting arrangements with a view to reciprocal exchange of cars, without prejudice to established or alleged ownership of said rolling stock. A Commission charged with deciding questions of ownership of this rolling stock did indeed exist but it seemed essential to create a new Commission, charged with taking the necessary provisional measures, and which should be composed of representatives of each interested Government. This Commission was in principle favorable to the British proposition, but some objections having been raised by the American and Italian Delegations this proposition would have to again be examined by the sub-commission specially charged with questions concerning Austria. As the question was a very urgent one he asked that, if that sub-commission should reach a unanimous conclusion favorable to the British proposition—which would probably be reached that very day—he be authorized to take, in the name of the Committee on Organization of the Reparation Commission, the measures necessitated by the adoption of the British proposition. If on the contrary, a unanimous solution was not reached, the question would be resubmitted to the Council.

It was decided:

(1)
that the question of the nomination of a Commission to sit at Vienna for the distribution of rolling stock between the States forming a part of the former Austro-Hungarian Monarchy be referred to the Committee on Organization of the Reparation Commission which, if its sub-commission specially charged with Austrian questions should reach a unanimous decision in favor of said nomination, should take the measures necessary to carry such decision into effect;
(2)
that if the Committee on Organization of the Reparation Commission or its sub-commission should not reach a unanimous decision, the question should again come before the Council at an early meeting.

4. (The Council had before it a report of the Committee on Organization of the Reparation Commission on the terms of a loan of $100,000,000. by way of payment for the provisioning of Austria during the next six months (See Appendix “E”).) Report of the Committee on Organization of the Reparation Commission on the Terms of a Loan of $100,000,000. by Way of Payment for the Provisioning of Austria During the Next Six Months

M. Loucheur said that the Committee on Organization of the Reparation Commission had examined the unanimous report submitted to it by the sub-commission sitting at Vienna. That sub-commission recommended as essential a loan to Austria of $100,000,000. to cover the supply of food-stuffs and coal of which Austria would have need during the next six months. The action contemplated was of a very important character and evidently [Page 240]necessitated a careful study on the part of the Governments interested. Moreover a loan, however large, would not suffice to smooth away all difficulties. It was not only money that was needed, cars and food were especially necessary. He had recently had a conversation with Mr. Benes. Apparently everything needed in the way of sugar, coal and shoes could be found in Czecho-Slovakia. Czechoslovakia had shown a willingness to join the consortium to be created with the object of restoring the economic life of Austria. On the other hand, it was essential to supply Vienna with grain. Grain was already scarce in Vienna and within three weeks it would be completely lacking. The Serbian portion of the Banat alone seemed in a position to furnish the necessary grain. He expected to see M. Trumbitch very soon and, if the Council did not object, to bring some pressure to bear on him to hasten the despatch to Austria of the grain which Jugo-Slavia had contracted to deliver and of which it had not yet delivered half. He himself thought that it became a question of a direct loan from Serbia to Austria and he would likewise confer with Mr. Trumbitch on that point. The Allied and Associated Powers in his opinion should only concern themselves with additional loans. Each Government would of course have to determine the extent of the financial aid which it was ready to give to the work of the rebuilding of Austria. He had not yet been able to see the French Minister of Finance on that point. He pointed out that the Government of the United States had several times declared that it could not participate in the loan question. The United States pointed out that as they had made large advances to the Allies it was incumbent upon the latter to make the financial arrangements which they judged essential with the States of Central Europe.

Mr. White observed that the Government of the United States had already several times defined its position on that question. In order to summarize the question without unduly taking up the Council’s time, he wished simply to read the following memorandum:

“Paris, November 19, 1919.

The United States Government understands that this note from the Organization Committee of the Reparation Commission must be passed on to the governments or the treasuries of the several Allied and Associated Powers.

The American Delegation desires to point out that the point of view of the United States was brought to the attention of the O. C. R. C. by a note presented at the Plenary Meeting of Friday, September 17, 1919, and by numerous notes and memoranda presented to the O. C. R. C. and its several sub-committees from time to time since then. All these notes and memoranda have been distributed among the various Delegations.

[Page 241]

It is requested that the various governments or treasuries consider carefully the various American notes and memoranda in reaching a decision.

The American Delegation refers particularly to the American memoranda presented at the meeting of the Organization Committee of the Reparation Commission on November 6, 1919 (17th Meeting) and the Extraordinary Plenary Meeting of November 11, 1919.”

M. de Martino said that in short it was a question of making an important loan to Austria. It seemed to him that it was not for the Council, but for the respective Governments, to reach a decision on that question.

M. Loucheur said that it was only a question of the Council submitting a plan for the approval of the respective Governments.

Sir Eyre Crowe pointed out that the situation was as follows: The Council had before it a unanimous report of the Committee on Organization of the Reparation Commission. He had transmitted the same to his Government. It did not seem to him that M. Loucheur’s views corresponded entirely with the plan of action which was to reach an agreement between the various Governments as soon as possible. He felt obliged to state, moreover, that he had been informed from London that Great Britain could not consent to make a loan if America did not make one. He had received two telegrams from Vienna which showed the situation to be desperate. The first telegram, dated November 19th, said that within a week flour would be completely lacking at Vienna unless immediate measures were taken, and that snow-falls threatened to interrupt traffic between Vienna and Trieste, which would have disastrous consequences. The Communist Party intended to take advantage of the threatened famine to create disorders, and as the Government was greatly weakened serious consequences were to be expected. A second telegram dated the same day stated that the railroad from Trieste was still open thus permitting the immediate despatch of flour to Vienna. The telegram added that strikes were imminent in Vienna, and also in the Province of Styria. The result of this was that the situation was most alarming and that some action must be taken within a week. He was informed that negotiations had taken place between Great Britain and Italy with a view of sending to Vienna a part of the grain then at Trieste, which would be paid for by the remainder of a loan of $2,000,000. It seemed to him that the grain could be shipped to Vienna without awaiting a final settlement of the question of credits.

M. de Martino said that he would recommend favorably to his Government Sir Eyre Crowe’s suggestion. He wished also [to] point out that Italy had already sent a large quantity of food to Austria.

[Page 242]

M. Loucheur agreed fully with Sir Eyre Crowe. He thought it absolutely essential that the grain then at Trieste be immediately sent to Vienna. Moreover, he would see the Minister of Finance. He thought it important to submit immediately to the respective Governments the report of the Committee on Organization of the Reparation Commission then before the Council. Modifications, which a closer study of the question might seem to render necessary, could later on be suggested.

M. de Martino called the Council’s attention to the first paragraph of the conclusions of the Committee on Organization of the Reparation Commission (See Page 3 of the Report, Appendix “E”).3 It was there stated that the Austrian Government should forthwith prohibit by law the sale, transfer or disposal, outside of Austria or to other than Austrian nationals, of any assets of the country, either publicly or privately owned. That provision seemed to him unduly restrictive; its effect would be to prohibit all commerce with foreigners. The measures proposed should, he thought, only affect public property, or at the very most, real property belonging to individuals.

M. Loucheur said that the paragraph criticized by M. De Martino would be studied anew; that, however, should not hinder the submission to the various Governments of the report in its present form. He wished to point out that said first paragraph, among other points, was aimed at the question of works of art, which had given rise to certain difficulties.

M. de Martino replied that, in conformity with the Treaty of Saint Germain,3a his Government was conducting pourparlers on that subject with the Austrian Government.

M. Matsui feared that the geographic situation of Japan would make it difficult for his Government to render effective aid in a matter of such great urgence. However, he would not fail to telegraph his Government.

It was decided:

(1)
that the report of the Committee on Organization of the Reparation Commission on the terms of a loan of one hundred million dollars ($100,000,000) by way of payment for the provisioning of Austria during the next six months (See Appendix “E”) be submitted by the various Delegations for the examination of their respective Governments;
(2)
that the first paragraph of the conclusions of the Committee on Organization of the Reparation Commission, beginning with the words, “First: Require the Austrian Government forthwith …” be examined again by the said Committee on Organization of the Reparation Commission.

[Page 243]

5. M. Loucheur, before leaving the room, wished to call the Council’s attention to the serious results, from the point of view of the execution of the Treaty, of the delay in the exchange of ratifications. The Germans had to make a series of deliveries the details whereof had to be settled before December 31st. With respect to coal, for instance, under the terms of the Treaty the Germans had to furnish fifteen hundred thousand tons per month; as the Treaty was not yet in force they had furnished only five hundred and ten thousand tons the preceding month and it was probable that their November deliveries would be even smaller. On the other hand, with respect to personal property, the Allied and Associated Powers were unable to consummate any of the necessary arrangements. It would be easy to cite examples showing how serious a matter was the delay in the deposit of ratifications. Date of the Deposit of Ratifications of the Treaty with Germany

M. Berthelot said that the date of exchange of ratifications could not be fixed before Germany had made known its intentions with respect to signing the Protocol.4 Moreover, the organization of the Plebiscite Commissions would have to be completed. Everyone was unanimous in wishing that the Treaty enter into force as soon as possible. But, certain questions had to be settled first. Among them might be mentioned the negotiations between Poland and Germany, whose transfer to Paris had been requested by Poland.

M. Loucheur thought certainly that before the exchange of ratifications the Germans should be made to sign the Protocol relative to violations of Armistice clauses. But, it did not seem to him that the question of Germano-Polish negotiations was germane to the putting into force of the Treaty. With respect to the Commissions, he thought that the Allied and Associated Powers could dictate their decisions to the Germans and that long negotiations would consequently be unnecessary. In any event, he wished to insist that the putting into force of the Treaty should not be indefinitely postponed. The Allied and Associated Powers were running the risk of being foreclosed with respect to certain of their demands. The Germans should at once be notified of a date on which the Treaty would be put into force. If they created difficulties the responsibility for delay would at least lie at their door. Moreover, the Allied and Associated Powers possessed the means of bringing effective pressure to bear upon the Germans. The latter could be prevented from disposing of their foreign securities which they had great need of selling in order to procure foodstuffs.

[Page 244]

General Le Rond called the Council’s attention to the difficulties experienced by the Commissions in recruiting the necessary personnel. The British Treasury had not yet given an answer on the question of allowances to members of Commissions. That delay made recruiting very difficult. A Commission had been established to examine into the financial organization of plebiscite zones and it was necessary that an agreement on that point be reached before the negotiations with the German Delegates could advantageously be begun.

M. Pichon proposed to settle upon December 1st as the date of exchange of ratifications.

Sir Eyre Crowe added that the Germans must be notified of that date and told that they would accordingly have to sign the Protocol before December 1st.

It was decided:

(1)
that the first of December be fixed as the date for the deposit of ratifications;
(2)
that the Secretary General of the Conference notify the German Delegation of the foregoing decision, and inform it at the same time that the Protocol relating to the nonfulfilment by Germany of certain Armistice Clauses must be signed by the German Delegates before that date.

6. (At this point M. Patek and M. Grabski entered the room). Status of Eastern Galicia

M. Pichon asked the Polish Delegates to be good enough to give the Council their views on the status of Eastern Galicia.

M. Patek replied that they would be glad if they could first obtain the new draft which had been submitted to the Council.

M. Pichon explained that the Council wished to know their feeling on the general question.

M. Patek said that M. Paderewski and M. Dmowski had already had occasion to speak to the Council on the status of Galicia.5 He wished to add several general words on the proposal under discusssion, as well as on the impression which its adoption would certainly create in Poland. Until the present time, Eastern Galicia had formed an integral part of Poland. Even during the partition Eastern Galicia had not been separated from the Polish provinces annexed to Austria. At the present time Poland was being offered a mandate for a territory which had never ceased to belong to it. Poland had indeed been told that the terms of this mandate were especially favorable; nevertheless, it meant separating Eastern Galicia [Page 245]from Poland. When Spisz and Orava were under consideration it was a question of territories belonging to Hungary which had not formed a part of the former Kingdom of Poland. Furthermore, the Poles had had to reach an agreement with the Czecho-Slovaks. But in Eastern Galicia they had no opponents. In fact, opposition could not be predicated of the Ukraine, which had no real existence, nor of Russia, which had no concern with Eastern Galicia. Therefore, if Eastern Galicia were no longer to be directly attached to Poland, the unanimous impression in his country would be that the Allies were taking away a province which belonged to Poland, and which was claimed by no other Government. Three days from that time Lemberg would celebrate the anniversary of its liberation from the Ukrainian yoke. Was he then to be told that a city in whose defense all classes of the population had freely shed their blood, was no longer on Polish soil? On the very day when celebrations would be held in honor of those who had heroically fallen in the streets of Lemberg, would it be announced in Paris that they had fallen on soil foreign to Poland? The Polish Army was at that very time opposing the Bolsheviks. Was it not to be feared that that Army would become demoralized if it suddenly learned that the city for which it had fought, that the territory which it had freed, were no longer to be considered as belonging to Poland. If the Polish troops got the impression that their leaders had deceived them when telling them a year ago that they were fighting in defense of Polish territory, it was to be feared that they would again believe themselves deceived when they were told that the Bolsheviks were the enemy to be fought. The objection indeed was made to the Polish argument that the population of Eastern Galicia was mixed and that hatred existed between Ruthenians and Poles. His reply was that in Eastern Galicia the proportion of mixed marriages was more than 35%. How could one speak of hatred under these conditions? The conclusion was inevitable that selfish intrigues of neighboring countries and Austrian, and especially German money, which had sown seeds of discord in Eastern Galicia, were responsible for the bloody conflicts of recent times. It had been proven that Ruthenian agitators prior to the war had received money from German sources. That question had been brought up in the Reichstag and in the Parliament at Vienna, and no denial had been made of the specific facts adduced at that time. He recalled that the Germans had played a prominent part in the conflict which ravaged Eastern Galicia, and that in many cases, Ukrainian troops had been commanded by German officers. At the time when he spoke all conflict had ceased and calm had returned in Eastern Galicia. The representatives of the western nations found it difficult to appreciate the conditions existing [Page 246]in countries possessing less culture than theirs. The Ukrainian and Polish peasants had fought without being too clear as to the reasons therefor. While he spoke they were once more working shoulder to shoulder and living in perfect harmony. He also wished to present geographical considerations of great weight. Free access to the sea was a necessity for Poland. It did indeed reach the sea at Dantzig but only by a narrow corridor which was constantly threatened by Germany. It was essential for Poland to obtain access to the Black Sea through Roumania, and possession of Eastern Galicia was vital from that point of view. He wished to add a word on the internal situation. The Diet at Warsaw had unanimously voted that there could be no Poland without Eastern Galicia. It was far from his intention to wish to use Poland’s internal situation as a threat but the Allied and Associated Powers must understand that the unanimous opinion of the Polish people had to be considered. M. Paderewski had been obliged to declare in parliament that he would not sign a Treaty which would take Eastern Galicia from Poland. If the solution of a mandate were imposed upon Poland, Paderewski’s cabinet would have to resign; the Polish army, ill fed, ill clothed, engaged in a severe struggle against the Bolshevists, would be threatened with demoralization. The Polish people, finally, would not understand how its Allies could have taken from it Galicia which had always formed part of Poland and which no one was claiming. It was important that the Council should realize the gravity of the situation in Poland; on one side Bolshevism, on the other, German revolution. In the interior a threatened famine. The Polish army was strong and Poland counted on it as an element of order. If the Army became demoralized Poland’s situation would become most serious and it would be threatened with extinction. That would be a catastrophe which would certainly have an effect on the situation of the western Powers. The only solution was to allow Eastern Galicia to become an autonomous province of Poland, subject if necessary, to an effective international control. Any other solution would entail consequences for Poland which were greatly to be dreaded.

M. Grabski desired to add a few words to what M. Patek had said in order to show the Council the serious economic results for Eastern Galicia of any solution which would not make it an integral part of Poland. The situation in Eastern Galicia was in no way comparable to that of other regions which had suffered damages by the war. By virtue of the Treaty the Allied and Associated Powers were entitled to reparation for damages caused by the war, provided that they had taken part in the struggle on the side of the Entente. The Countries which during the whole war had been part of Austro-Hungary, which was the case of Eastern Galicia, had no legal right to any reparation. [Page 247]Eastern Galicia, however, was one of the regions which had suffered the most. It had been devastated successively by the Russians, Austrians and Ukrainians. If to these devastations, estimated at 22,000,000,000. crowns, were added the loss resulting from the depreciation of Austrian currency, the economic situation in Eastern Galicia would be seen to be desperate. Out of 2,500,000 hectares of agricultural land, 2,000,000 hectares were not under cultivation. If left to its own resources Eastern Galicia would be unable to bear the burden placed upon it. It had a vital need of the help of all Poland. Poland had not waited for Eastern Galicia to be given it to come to the help of its inhabitants which it justly considered brothers. Although Poland itself lacked rye and wheat and had had to solicit the help of the United States she had not hesitated to share her meager resources with Eastern Galicia. If the solution of a Mandate prevailed, separate liabilities would have to be established which Eastern Galicia could not meet. France, which so admirably understood the duty of national solidarity towards its devastated regions must understand that Galicia could only exist with the support of the remainder of Poland. Galicia’s resources in petroleum would not suffice to amortize the numerous sums which would have to be advanced if its economic rehabilitation were to be made possible. The situation of Eastern Galicia had been compared with that of Austria, but it had been forgotten that there was still large fortunes in Austria and that Austria had not been devastated by the war. Any solution which would paralyze Poland in the work of rehabilitation she had undertaken in Galicia would be disastrous to the economic future of that province.

M. Patek said that the Poles had been told that there was little difference between a long term mandate given to Poland over Galicia and an annexation pure and simple of that province to Poland. In reality the difference was considerable, especially if account were taken of the fact that four plebiscites had already been imposed upon Poland, which had not failed to have a depressing effect on Polish public opinion. In conclusion he wished to point out that Poland was not asking her Allies to give her anything at all; she was only asking not to be deprived of the territory which she considered belonged to her as of right.

(At this point M. Grabski and M. Patek left the room.)

M. Pichon asked whether any member of the Council thought that the views just expressed by the Polish Delegates necessitated a change in the conclusions already reached by the Council.6

M. de Martino was struck by M. Patek’s observations on the necessity of a territorial connection between Poland and Roumania through [Page 248]Eastern Galicia. He did not propose, however, to reopen the discussion.

M. Laroche read and commented upon the report of the Committee on Polish Affairs dated November 20th (See Appendix “F”). The Commission had been unanimous on all the articles considered, except on the second paragraph of article 2, where the majority of the Commission had proposed to insert after the words, “The Council of the League of Nations”, the words, “deciding by a majority of votes”.

M. Pichon pointed out that according to the covenant of the League of Nations the general rule was that a decision should be by unanimous vote, but that when it was a question of the status of certain territories in analogous circumstances—like that of the Sarre—a majority of votes sufficed.

Sir Eyre Crowe wished to point out that he had had some difficulty in inducing his Government to make the concessions which had finally rendered a unanimous agreement possible. If the question had to be reopened he could not be responsible for the consequences. That was why he preferred to abide by the text proposed by the British Delegation which, moreover, corresponded to that which had been adopted at a meeting of the Council.

M. Laroche said that there might be serious disadvantages if the opposition of a single power could render impossible the adoption of a measure agreed upon by all the other Powers represented in the Council of the League of Nations.

Sir Eyre Crowe said that as the other Delegations were favorable to a mandate of unspecified duration, he could not see why they should feel the adoption of the principle of a unanimous vote to be dangerous.

M. Pichon remarked that possibly in 25 years Germany would be represented on the Council of the League of Nations. He asked if it would not be dangerous to give Germany the possibility of preventing the unanimous will of the Allied and Associated Powers from taking effect.

Sir Eyre Crowe repeated that he was most reluctant to reopen that question. Moreover he pointed out that an agreement had been reached by the Council on the text presented by the British Delegation. It was on the Commission’s own initiative that the question had again come before the Council at a time when it had a right to consider it finally settled.

Mr. White said that he could not agree with Sir Eyre Crowe’s arguments. He felt that it was after all a question which concerned Poland rather than Great Britain.

[Page 249]

Sir Eyre Crowe inquired if it was not the American Delegation itself which had insisted that the question of a mandate should receive a permanent rather than a provisional settlement.

Mr. White said that he was informed by his experts that this interpretation of the attitude of the American Delegation was not exact.

M. Laroche explained that the text referred back to the Commission by the Supreme Council was open to revision. The jurists had brought up the question of the procedure to be followed by the Council of the League of Nations. Moreover, it should be noted that there was a great difference between a mandate of unlimited duration and a mandate perpetually renewed. If the Poles had been offered a mandate of unlimited duration their objections would have probably been much weaker. The attitude of the British Delegation did not seem to him entirely logical. That Delegation had insisted that the mandate be open for revision at the end of 10 years, it should, therefore, not favor a solution which would make any modification in the existing situation very difficult.

Sir Eyre Crowe thought that the arguments advanced by M. Laroche ran counter to the resolution previously adopted by the Council.7

M. Pichon said that he favored the point of view of the majority of the Commission but in order to arrive at an agreement he was ready to support the text proposed by Sir Eyre Crowe.

Mr. White stated that he was obliged to maintain his point of view and he asked M. Pichon to call upon Dr. Bowman who had some additional information to give.

Dr. Bowman thought that it would be well to define clearly the American Delegation’s point of view, which did not seem to have been entirely understood. The statements of the American Delegates on the Commission of Polish Affairs showed that they had desired a mandate of unlimited duration. On the other hand the British Delegation wished the mandate to be open for revision at the end of 10 years. By way of compromise a term of 25 years was agreed upon, and this had been accepted by the Council. When the question had come back to the Commission a further question had arisen as to the procedure to be followed by the Council of the League of Nations. That was an entirely different question from the previous one, and one on which no agreement had as yet been reached. If a unanimous vote was necessary, a single nation, possibly Germany, could prevent the opinion of all the Allies from taking effect. If what was aimed at was to reserve the possibility of taking Galicia from Poland, in [Page 250]the event of the latter committing abuses, it was necessary to provide for a decision to be reached by a majority vote. That would constitute a sufficient guarantee. On the contrary, if a unanimous vote was required, that would mean practically giving Poland a free hand. The idea of a majority vote was perfectly consistent with the idea previously expressed when asking that the mandate should be of unlimited duration. In both cases it had been desired to ensure to the League of Nations an effective control over the mandatory power. The original proposition of the American representative on the Commission on Polish Affairs was that at any time the Council of the League of Nations, deciding by a majority vote, could revise the mandate.

M. Pichon said that Dr. Bowman’s arguments only strengthened the opinion he had already expressed, but in consideration of the attitude of the British Delegation, which had already made numerous concessions, he remained inclined to support Sir Eyre Crowe’s proposition.

M. de Martino said that he was likewise disposed to support Sir Eyre Crowe’s proposition, always provided that a unanimous agreement could be reached on that very day. Personally he remained convinced that the solution of the majority of the Commission was preferable and he retained his freedom of action if the United States maintained its point of view.

Mr. White asked if the question could not again be referred to the Commission, which should try to reach an agreement.

Sir Eyre Crowe observed that that would mean reopening the whole question.

M. Laroche pointed out that the Commission had already tried in vain to reach an agreement and he did not believe that a further discussion would succeed.

Mr. White asked to have until the following day to think the matter over. He felt that the question under discussion involved the very principle of the solution to be reached, and that that principle might become of vital importance. It would have seemed to him more natural for an agreement to be reached in favor of the majority point of view, rather than that the majority should abandon its original point of view to agree with the ideas of a single Delegation. A very dangerous situation would be created if Germany might become a possible arbitrator of the decisions of the Allied and Associated Powers in such a grave question.

M. Pichon said that for practical reasons, in view of the necessity of reaching a conclusion, and of the fact that the attitude of the British [Page 251]Government did not seem likely to be modified, he hoped that the Council could agree on the following day on the text proposed by the British Delegation.

(The discussion of this question was adjourned until the following meeting).

7. At the request of Mr. White this question was adjourned as well as the question relative to the request of the Polish Delegation that the negotiations between Poland and Germany on questions relative to the execution of the Treaty of Versailles be transferred to Paris. Request of the Polish Delegations That the Negotiations With Regard to the Relations Between Poland and Danzig Be Transferred From Warsaw to Paris

(The meeting then adjourned.)

Appendix A to HD–97

Telegram From Sir George Clerk to the Supreme Council

No. 9

With reference to my telegram No. 7 of November 13.8

A meeting of the Government and the Opposition took place at five o’clock this evening at my house on Friedrich’s invitation. I think that he intended that this conference should end in a deadlock and this would have occurred had I not called about forty representative Hungarians to a meeting at my house at 3 P.M. today. This meeting lasted five hours. I began by making a plain-spoken and full statement of the present situation in Hungary as it appeared to me and those present reached the general conclusion that Friedrich must cease to be Prime Minister. The Committee of Ten will meet again at my house tomorrow, but great progress has, in my opinion, been made today.

Appendix B to HD–97

Telegram From Sir George Clerk to the Supreme Council

No. 1.

Your telegram No. 12 [Nov. 12?].9

In view of the remarkable order and tranquility which has signalled withdrawal of Roumanians and entry of Hungarian forces mission of [Page 252]Generals and I agree that despatch of further allied officers asked for in my telegram No. 610 is no longer necessary.

Appendix C to HD–97

Opinion of the Committee on Organization of the Reparation Commission on the Remarks Presented by the Serbo-Croat-Slovene Delegation on 15th October [5th November?] Concerning the Distribution of Austro-Hungarian Tonnage11

To the Supreme Council of the Allied and Associated Powers

The Serbo-Croat-Slovene Delegation requests that the fishing boats and other merchant ships which belonged to ex-Austrian shipowners of the Serbo-Croat-Slovene Kingdom on 4th November, 1918, may be assigned to that Kingdom.

The C. O. R. C. is of opinion:

1)
That Austro-Hungarian fishing boats and other Austro-Hungarian ships of less than 2000 tons ought to be left to their Allied owners or co-owners in the Adriatic, with liberty to fly the Italian or Serbo-Croat-Slovene flag, and that the value fixed by the Reparation Commission of the German, Austrian, Hungarian, Bulgarian and Turkish interests represented by these boats shall be charged to each of the States whose nationals are owners or co-owners of such boats.
2)
That the Serbo-Croat-Slovene State, like other Allied and Associated Powers, may claim that recognition be granted of the rights of ownership or co-ownership on tonnage other than that contemplated above belonging to its nationals and that, with a view to regulating the question of tonnage in accordance with the rights and interests of the other States concerned, the Serbo-Croat-Slovene State shall be admitted to such arrangements as may be made in accordance with the decision of the Supreme Council of May 22nd, 1919,12 which arrangements should be submitted to the Reparation Commission.

If difficulties arise in execution, either as a result of change of owners or of co-owners since August 1st, 1914, or for any other reason, the decision will be taken by the Reparation Commission in conformity with the terms of the Treaty of Peace.

Appendix D to HD–97

[See footnote 2, page 238.]

[Page 253]

Appendix E to HD–97

conférence de la paix
comité d’organisation de la
commission des réparations

390 C. R.

Letter, Dated November H, 1919, From the Organization Committee of the Reparations Commission Proposing the Amount and Conditions To Cover the Advances of Food Supplies and Coal to Austria During the Next Six Months

Sir: The Supreme Council decided by resolution of October 7, 1919 that a sub-Commission of the Organization Committee of the Reparations Commission should be constituted at Vienna.13

The Sub-Commission has submitted an unanimous report, which has been carefully considered by the Organization Committee.

The main recommendation of the Sub-Commission is in effect the advance to Austria of $100,000,000.00, to cover the supply of such foodstuffs and coal as will be required by Austria during the next six months. This advance, together with the sum of $48,000,000.00, advance by the Allies during the last twelve months, would be consolidated into a single loan, to be secured by the total assets and by the present and future revenues, of the Austrian Republic,—the administration of both assets and revenues being entrusted to the Reparations Commission. It would be the duty of the latter during the next six months to formulate and put into operation a program for the economic and financial reconstruction of Austria.

If attention be confined to the financial aspect of the problem, with which the Organization Committee is more particularly concerned, it is clear that the sum of $100,000,000.00, which is estimated as required as capital, can not be provided by Austria itself; it follows that the funds must be directly advanced by one or more of the Allied and Associated Powers.

Recommendations of this scope raise questions which it is not within the competence of the Organization Committee to determine. They can, therefore, only submit them for the most immediate consideration and decision by the governments concerned.

It is quite clear that the respective powers themselves must decide whether to grant the loan, and whether the terms of any advances that may be made will permit the Reparations Commission to be entrusted with the responsibility contemplated.

The Organization Committee desires to express it as their opinion, that there is no escape from the conclusion, that it is only in the institution of a central controlling authority with wide powers over the [Page 254]financial and economic administration of Austria, that any hope can be found of the salvation of that country.

If the advances required can be supplied by any one or more of the Allied and Associated Powers, and on terms that will permit, it is the sense of the Organization Committee that the following plan be adopted:

That the Austrian Government be authorized to issue certificates of indebtedness in an amount to be determined by the Sub-Commission at Vienna, convertible into first bonds to be issued pursuant to Article 181 of the Austrian Peace Treaty. A portion of these certificates to be given to the British, French and Italian Governments as security, for all loans or credits heretofore made and to be given to the lending governments for all loans and credits hereafter to be made to the Austrian Government, in lieu and instead of the Austrian assets now held or about to be taken as security for loans or credits: such assets to be turned over to the Sub-Commission at Vienna together with all objects of art, the tobacco monopoly and the property of the late Royal and Imperial House, recently declared to be Government property, as well as any other liquid assets of the Austrian Government. All assets so turned over to be held by the Sub-Commission, and so far as available, to be administered by it for the purpose contemplated. The other portion of the certificates to be applied from time to time by the Sub-Commission in such manner as it may deem proper and necessary in the interests of reparation, at the same time assuring to Austria her minimum requirements in food, coal and raw materials, as provided by Article 181 of the Austrian Treaty of Peace.

The Organization Committee further recommends that the foregoing plan be communicated at once to the Austrian Government, and if the Austrian Government shall request the Organization Committee of the Reparations Commission, in writing, to exercise immediately like powers to those conferred upon the Reparations Commission, and the Austrian Section thereof, by the Austrian Treaty of Peace, then the Sub-Commission in Vienna shall proceed as follows:

  • First: Require the Austrian Government forthwith to prohibit by law the sale, transfer, or disposal, outside of Austria or to other than Austrian Nationals, of any assets of the country, either publicly or privately owned, without the consent of the Sub-Commission at Vienna, and to declare void any such sales or transfers heretofore made alter the signing of the Armistice of November 3, 1918,14 without the consent of the Austrian Government.
  • Second: To prepare forthwith and put into immediate operation a financial plan along the lines indicated in this report, in order to preserve Austria’s assets for reparation, and assure to Austria a minimum supply of food, coal and raw materials.
  • Third: To exercise forthwith such control over the collection and expenditure of all taxes, customs and revenues of the Austrian Government as to the Commission shall appear necessary and desirable.
  • Fourth: To commend the study forthwith of the economic and financial conditions of Austria, and to prepare comprehensive plans for her rehabilitation, to the end that the reparation contemplated by the Austrian Treaty may be forth-coming.

There is appended for transmission to the Governments concerned a copy of the report of the Sub-Commission at Vienna, above referred to.

I am [etc.]

Mauclere
,
President of the Organization Committee of the Reparations Commission.

The President of the Supreme Council of the Allied and Associated Powers.

[Enclosure]

Report of the Vienna Sub-Commission of the Organising Committee of the Reparation Commission

To: The Chairman of the Organising Committee of the Reparation Commission,
59, Rue Pierre Charron, Paris.

Sir: In accordance with instructions this Sub-Commission commenced its sittings in Vienna on the 24th of October and, in view of the critical nature of the situation in Austria, find it imperative to make an interim report. The figures as to the requirements contained in this report were submitted, in the first place, by the Ministers and advisors of the respective Austrian Government Departments. The Ministers themselves were closely examined by the Sub-Commission and their estimates were then submitted to analysis by British food and commercial representatives resident in Vienna. They were then re-examined by the Sub-Commission and although they must necessarily be subject to revision in detail they may be accepted as presenting a fairly accurate summary of the situation.

The Governors of all the Provinces or their representatives were summoned to give their views particularly as to the exchange of merchandise between their respective provinces with the idea in view of producing an economic balance in Austria. Various financial experts and representative industries also were summoned and gave their opinions on technical subjects. By the information obtained in this way the Sub-Commission were able to form a true idea of the situation. All they have heard has led to a certainty that Austria [Page 256]is in a critical situation and has an immediate need of food and coal.

1. Need of Food.

The visible supplies, including the present harvest and counting on the complete fulfillment of all contracts entered into with the various countries, would only enable Austria to provide herself with cereals for three months more during the present cereal year and for a shorter period as regards meat, milk and fats. The Sub-Commission are convinced that a number of food contracts with other countries will not be fulfilled. It must, therefore, be estimated that Austria will be compelled to import 632,000 tons of food supplies for nine months of the cereal year ending September, 1920, at a total approximate cost of $100,000,000 (dollars).

The failure of the neighboring states to deliver foodstuffs contracted for by Austria and the difficulties of obtaining and transporting food supplies within Austria itself have brought Vienna which constitutes about half of the total population, to the brink of starvation. On Wednesday, October 29th, the Austrian Food Controller reported to the Sub-Commission that there were no breadstuffs whatever in hand in Vienna as they had all been distributed as rations for the current week which ended the following Monday, while of fats, meat or any other foodstuffs controlled by the Government they had nothing. There is no reason to doubt the accuracy of this statement. At the same time it should be mentioned that on October 29th there were in transit from Trieste breadstuff supplies which, if duly delivered, would ration Vienna to November 11th. The gravity of the position lies in the probable recurrence of these acute shortages and the impossibility of relying upon railway deliveries. Existing food contracts are executed partially or not at all; the contract with the Serbs, already a heavy drain on Austrian finance, is at the moment completely stopped, the Serbs wishing to impose an exportation tax of 40%. Food furnished by contract with the Argentine and en route from Rotterdam is momentarily held by the Germans at Mannheim.

The Sub-Commission are unanimously of the opinion that, in accordance with the spirit of Article 181 of the Peace Treaty, 30,000 tons of foodstuffs, at the least, should be instantly provided for Austria. This quantity will constitute a slight insurance against the disorder and anarchy which must be anticipated if a city of nearly three million inhabitants is constantly threatened with the lack of even the bare minimal rations.

2. Need of Raw Materials.

At the request of the Sub-Commission the Austrian Government submitted a statement of their minimal requirements, calculated on a basis pro rata with their minimal requirements of coal (See Annex A). [Page 257]The quantities asked for on the whole, appear justified. No estimate can be given in this report as to the approximate cost of these raw materials, but the Austrian Minister of Commerce states that, in his opinion, credits to the extent of 40 million dollars would be sufficient to start industries on a basis proportionate to the minimal amount of coal that could reasonably be expected. The Sub-Commission is inclined to think, after hearing the opinions of leading bankers and manufacturers of Vienna, that if the minimal coal for industrial purposes were forthcoming, the credits to the extent of 40,000,000 dollars would be sufficient to start with and that such credits for raw materials could be obtained by direct negotiations with foreign markets, and through private Austrian capital, providing the Austrian Government were in a position to assure the people of enough coal and food for human existence.

3. Need of Coal.

The bare minimal requirements of Austria for domestic and industrial uses appear to be in the neighborhood of 730,000 tons per month. If all the existing coal contracts between Austria and the neighboring states were fulfilled there would still remain a monthly deficit of, roughly, 200,000 tons. As a matter of fact, during the month of September Austria’s total coal supply amounted only to 378,500 tons, mainly owing to the failure of neighboring states to live up to their contracts. It is also due to the latter circumstance that it has been found impossible to provide with any regularity the meagre ration of 7 kilos—say 15 lbs—of coal per week for each family in Vienna, where the use of gas and electricity is now far more stringently restricted than it was in London at any time during the war. The consequent suffering, now that the first snow has come, is intense. It is almost inconceivable to think that as the cold becomes more acute the population of Vienna will continue to maintain their present helpless apathy, or that they are likely to exhibit the hardihood necessary to withstand the ordeal of semi-starvation combined with the misery of having no coal for warmth or cooking.

In order to provide the minimal coal requirements to preserve life and restart industry an amount of 200,000 tons of coal per month in addition to the existing contracts should be arranged for Austria. For this purpose a credit would be needed of, approximately 45,000,000 dollars. In order to facilitate the enforcement of the coal contract between Austria and the neighboring states, in accordance with the terms of the Peace Treaty, it would seem advisable that the Mahrisch Ostrau Coal Sub-Commission should become a Sub-Commission of the Vienna Reparation Sub-Commission. This is in accordance with the views expressed by the Chairman of the Mahrisch Ostrau Sub-Commission.

[Page 258]

Wood for fuel is also fairly strictly rationed but the shortage of horses and other methods of transport makes it almost impossible for even the richest classes in Vienna to obtain wood. The Austrian Government have created a special Department to handle the distribution of wood in order to alleviate suffering caused through want of coal and they have been urged by the Sub-Commission to re-double their efforts in this direction. The Austrian Government state they will probably be compelled to close all the schools in Vienna for want of coal or wood.

During the first week of the Sub-Commission’s sittings five food trains from Trieste were held up on the Austrian frontier through lack of coal to enable them to bring supplies to Vienna. During September the Austrian Railways obtained only 65 per cent of the coal they are allowed, which in itself is only 75 per cent of their normal requirements.

4. Development of the Greatest Amount of Production.

The Sub-Commission feel that this cannot be dealt with even cursorily, in an interim report. They have, however, had an opportunity of impressing on all the Landeschauptmann (Provincial Governors) assembled at a meeting specially called by the Sub-Commission, the vital importance of removing all trade and other restrictions as between the Provinces in Austria itself. The tendency of the provinces to erect economic barriers and especially their indisposition to assist Vienna, has undoubtedly contributed to the present crisis, and must seriously retard development. It must not be implied, however, that in the solution of this difficulty lies the solution of the whole supply problem. Complete free trade as between the provinces and Vienna would not appreciably alter the figures of the immediate requirements as herein set forth, although it undoubtedly would tend to quicken reconstruction. Under this heading it should be stated that the Austrian Minister of Agriculture estimated that their minimal requirements of phosphate and manure for agricultural purposes and to minimise food imports next year would involve an expenditure, during the present cereal year of about 8,000,000 dollars. Experts estimate that with an expenditure of 8,000,000 dollars for chemical manures necessary to improve agriculture an increase of 26,000 trucks of corn could be expected next year. At the present rate of exchange this would represent a value of 1,300 million kronen.

5. Facilitation of Transport and Guarantee of Delivery of Supplies From Countries Bordering on Austria.

The Sub-Commission are in agreement in principle with the preliminary report of the Commission for the partition of the rolling-stock of the former Austro-Hungarian Empire, as communicated to them by Sir Francis Dent, and have impressed upon the Austrian [Page 259]Government the importance of providing coal for their railways even at the sacrifice of all other considerations. The Austrian Minister of Railways has informed the Sub-Commission that he has no ground for complaint as to the proportion of coal which he is receiving for the railways.

In view of the disorganized state of the railways in Austria and in the neighboring states the Sub-Commission recommend that they, or their successors, should be empowered to constitute a Railway Section which would act as a traffic pool for the Danube Basin, the neighboring states of Austria to be represented on such a Section and the Section to have power to hire, uniform and arm such numbers of railway gendarmerie as may be necessary to enforce the free and unimpeded movement of all trains. Without some such organization and without some semblance of power behind it, the inter-change of supplies necessary to the bare existence of the population would appear to be impossible. Under present conditions the return of any waggon, once it has crossed the frontier, to the State from which it started, is always extremely problematic. Under these chaotic circumstances there can be no certainty of food or coal supplies. It would probably also be desirable for the Danube River Inter-Allied Commission to act similarly as a Section of the Reparation Sub-Commission.

6. Payment by Austria.

It is impossible to consider the immediate provision of finance for food and coal for Austria without at the same time contemplating a plan for the complete re-organization of Austria’s financial and economic system. The one is the complement of the other, the second being the natural and necessary corollary of the first.

The Sub-Commission are therefore of the opinion, in order to obtain for Allied interests and Austria the utmost benefits that there should be a long term floating loan which should be dependent only upon revenue. If this policy were adopted an immediate advantage would be gained by the credits obtained and at the conclusion of any period the assets of Austria would remain intact and available for the development of the country itself. If a fixed loan, redeemable by the sale of capital assets, were substituted for a floating loan, Austria at the redemption period, would be altogether without external credits. The main issue is that the Sub-Commission agree that Austria’s existing credits should be improved by means of the extension of her liabilities by new credits on the lines of the floating loan, since credits at present existing are insufficient to construct economic stability.

If, for instance, the assets of a country were represented by 5 and its liabilities by 12, in the first case (diminution of assets) a ratio of 3 to 12 would be much less favourable than [for?] the renewal of economic activity than the ratio obtained in the second hypothesis (increase of liabilities) 5 to 14.

[Page 260]

In accordance with the terms of the letter or May 30th, 1919,14a from the Austrian Delegates, the Austrian Government have submitted a first list of foreign securities amounting to 84,000,000 francs, to be applied to the 48 million dollar food loan. The Minister of Finance estimated the total value of the foreign securities at 300,000,000 francs. Their collection of gold towards the same purpose has amounted to 1,200,000 francs.

The Sub-Commission of the Reparations Commission consider that a sum of 100,000,000 dollars is necessary for Austria for the provision of food supplies and coal to cover a period of six months. The expenditure, if required, to be under the supervision of the Sub-Commission of the Reparation Commission or the Austrian Section of the Reparations Commission when appointed. This amount would leave a margin for the eventual purchase of fertilizers indispensable to the revival of agriculture and for the purchase of such raw materials as certain industries might not be able to purchase.

The Sub-Commission propose that a solution of the problem might be found in the issue of a long term floating loan for 100,000,000 dollars and that this loan should be consolidated with the 48 million dollars (approximately) advanced to Austria for the purchase of foodstuffs since the Armistice by Great Britain, France, and Italy. The arrangements for the guarantees of the interest and amortization on such consolidated loan should be those already pledged to the Allies in connection with the 48 million dollar loan, as determined in the letter from the Austrian Delegates of the 30th May, 1919, (Annex B) as well as revenues from existing monopolies or monopolies to be created. The tobacco monopoly, for instance, provides one of the most valuable resources of the Austrian Government’s current Budget and this despite the existing lack of raw materials. The revenue of the tobacco monopoly can probably be increased by adapting such methods as “Systeme des Banderellos”. Other monopolies might also be created, for instance, petroleum, alcohol, matches, Danube shipping, and in case of necessity, electric lighting.

In addition to these guarantees and securities for the interest and amortisation of the consolidated loan of 150,000,000 dollars, it might also be desirable to take over Austria’s Customs revenues and the receipts of railways. At the present moment, in view of the desperate situation, the Austrian Government would be disposed to surrender these in addition to those guarantees already ceded. The Sub-Commission consider that the action outlined above would be in accordance with the letter and spirit of Article 181 of the Peace Treaty.

In view of existing conditions the Sub-Commission propose that a special Inter-Allied Commission should be constituted under the [Page 261]Austrian Section of the Reparations Commission for the purpose of administrating the revenues given as security for the consolidated loan of 150,000,000 dollars.

In order to ensure any efficiency of reconstruction it is essential that at the expiration of the period covered by the above loan (six months) or earlier if possible, a definite plan of financial reconstruction should come into force. The financial position of Austria as estimated by documents submitted to the Sub-Commission by the Austrian Government will be found as Annex C. Several proposals as to financial reorganization have been placed before the Sub-Commission, notably the principle of two currencies by means of an issuing Bank, which is approved by the Minister of Finance, and also a proposal of a large international loan on long terms, with yearly redemptions. The Sub-Commission ask for the immediate appointment of an Inter-Allied Banking Commission at Vienna under the Sub-Commission of the Reparations Commission to study and devise a definite plan of financial reconstruction.

Recapitulation of Conclusions Reached by the Sub-Commission

1.
The provision of 30,000 tons of food immediately.
2.
The provision of an additional 200,000 tons per month of coal.
3.
The Mahrisch Ostrau Coal Sub-Commission to be attached as Sub-Commission to Vienna Reparations Sub-Commission.
4.
Credits for fertilisers.
5.
Railway Section to be attached to Vienna Sub-Commission with power to guard and control all railways of late Austro-Hungarian Empire, both state and privately owned.
6.
Inter-Allied Danube Commission to be similarly attached to Vienna Reparations Sub-Commission.
7.
Loan of 100,000,000 dollars for six months to provide food and coal.
8.
Consolidation of existing 48 million dollars loan with the 100,000,000 dollar loan.
9.
Appointment of a special Inter-Allied Commission under the Vienna Reparations Sub-Commission for administrating revenues given as security for the Consolidated Loan.
10.
Appointment of Commission of bankers and financial experts to study and devise a plan for the definitive reconstruction of Austrian finance.
Rene Charron.
France.
C. B. Smith.
United States.
A. Trovati.
Italy.
William Goode.
Great Britain.
[Page 262]

Annex A

paris report

Need of Imported Raw Materials and Semimanufactures for the Space of One Year (Revised List)

No. Article Amount needed to set factories in full work. Amount needed if factories only supplied with 70% of coal.
*1. Raw cow-hides for shoe-soles 1,300,000 pieces 820,000 pieces
*2. Raw hides for making leather for uppers 750,000 “ 525,000 “
3. Leather for uppers 16,000,000 square-feet 15,000,000 square-feet
4. Skins of goats, kids, sheep and lambs 1,000,000 skins 500,000 skins
5. Leather made of the same 1,000,000 square-feet 700,000 square-feet
6. Patent leather 50,000 pieces 35,000 pieces
7. Hogskin 200,000 skins 140,000 skins
8. Skins of Crocodiles and Lizards 10,000 pieces
9. Hides of seals 12,000 “
10. Skivers 40,000 “
11. Morocco-goatskins 100,000 “
12. French Moroccos, moutons and goat-skins 30,000 “
13. Tanning materials (60% extract) 11,400,000 kilos 10,060,000 kilos
14. Oilseeds 53,102,000 “ 15,930,000 “
15. Fat and grease 143,152,000 kilos 42,945,000 kilos
16. Turpentine-oil 500,000 “ 400,000 “
17. Shellac 250,000 “ 200,000 “
18. Resin (colonhonium, light) 700,000 “ 600,000 “
19. Copal-Damar-resin 200,000 “ 150,000 “
*20. Naptha 860,000,000 “ 602,000,000 “
21. Benzine 38,000,000 “ 26,600,000 “
22. Kerosine 52,000,000 “ 36,400,000 “
23. Gas-oil 11,800,000 “ 8,600,000 “
24. Lubricating-oil light 3,900,000 “ 2,730,000 “
25. Lubricating-oil middle 4,900,000 “ 3,430,000 “
26. Lubricating-oil heavy 11,000,000 “ 7,700,000 “
27. Cylinder-oil 7,610,000 “ 5,320,000 “
28. Vulcan-oil 9,000,000 “ 6,300,000 “
29. Oil for motors 2,400,000 “ 1,680,000 “
30. Vaseline raw 2,460,000 “ 1,720,000 “
31. Paraffine 5,100,000 “ 3,570,000 “
32. Goudron 9,000,000 “ 6,300,000 “
*33. Pitch 5,050,000 “ 3,530,000 “
34. Coke of petrol 1,000,000 “ 700,000 “
35. Cotton 42,900,000 “ 35,300,000 “
*36. Flax combed 13,000,000 “ 13,000,000 “
37. Hemp 8,700,000 “ 7,200,000 “
*38. Yute raw 7,500,000 kilos 5,500,000 kilos
39. Wool (fleece) 6,200,000 “ 4,200,000 “
40. Wool (skin-wool) 250,000 “ 150,000 “
41. Hair of divers animals 300,000 “ 150,000 “
42. Carded yarn and wool 236,000 “ 180,000 “
43. Yarn of silk 100,000 “ 60,000 “
44. Yarn of silk waste 40,000 “ 25,000 “
45. Rags 4,000,000 “ 2,000,000 “
[Page 263]46. Unfinished calicoes for printing 5,000,000 kilos 3,000,000 kilos
*47. White and coloured calicoes 2,000,000 “ 1,500,000 “
*48. Woolen cloths 3,000,000 “ 3,000,000 “
*49. Silk materials and ribbons 1,000,000 “ 800,000 “
50. Rubber unwashed 1,100,000 “ 500,000 “
51. Asbestos for spinning 1,000,000 “ 600,000 “
52. Asbestos for the manufacture of tiles 5,000,000 “ 800,000 “
53. Antimone 300,000 “ 200,000 “
54. Lead 15,000,000 “ 13,000,000 “
55. Copper 20,000,000 “ 15,000,000 “
56. Nickel 1,800,000 “ 1,300,000 “
57. Quicksilver 300,000 “ 300,000 “
58. Tin 1,250,000 kilos 1,000,000 kilos
59. Zinc 16,000,000 “ 12,000,000 “
60. Calcined aluminum oxide 8,000,000 “ 6,000,000 “
61. Bauxite 6,000,000 “ 6,000,000 “
62. Aluminum 4,000,000 “ 2,000,000 “
63. Ferromangan 50% 600,000 “ 280,000 “
64. Ferromangan 80% 4,317,000 “ 1,819,000 “
65. Ferrochrome (content of chrome) 40,000 “ 30,000 “
66. Ferro-wolfram and Chrome-ore (70% WO 3) (content of wolfram) 200,000 “ 170,000 “
67. Ferro-vanadium (content of vanadium) 30,000 “ 20,000 “
68. Ferro-molybdenum (content of molybdenum) 20,000 “ 10,000 “
69. Kaolin 30,000,000 “ 15,000,000 “
70. Sulphurous pyrites 18,000,000 “ 9,000,000 “
71. Diamonds for industrial use 13,000 karat 8,000 karat
72. Paper (qualities not produced at home) 10,000,000 kilos 7,000,000 kilos

Remarks.

* re No. 1 Incl. hides of horse and calf, reckoned 1 cow-hide—2 hides of horses—4 hides of calf.

No. 2 Raw cow-hides incl. hides of horse and calf.

No. 20 80,000,000 respectively 56.000,000 kilos to be distilled, the rest for heating purposes for the electric station of the city of Vienna and different factories.

No. 33 Cotton yarn could be manufactured at home except a small amount of certain numbers and qualities.

No. 36 The only linen-mill working by water-power.

No. 38 If mill at Lajta-ujfalu (Western Hungary) [is?] to be considered, need amounts to 17,500,000 respectively 13,000,000 kilos [17,500,000 and 18,000,000 kilos respectively?]

No. 47 For making underlinen.

No. 48 Uncovered want for ready-made clothing industry and immediate use.

No. 49 Want of ready-made clothing-industry.

The dates concerning raw and auxiliary materials for the Chemical Industry will be furnished in a special supplement.

[Page 264]
[Annex B]
15

[The President of the Austrian, Delegation (Renner) to the President of the Peace Conference (Clemenceau)]

To the President: Following on the meeting which took place between the Delegates of the Financial Section of the Supreme Economic Council in connection with the Peace Conference, and several technical delegates of the Government of German Austria, I have the honour to acquaint you with the following declarations made in the name of the aforesaid Government. The Government of German Austria undertakes to secure the financial guarantee for the credits which have been opened, and are still to be opened by the Governments of the Entente for the provisioning of German Austria with the aid of one or other of the following means, or of more than one:—

1.
Payment of gold and silver money belonging to physical and moral persons of Austro-German nationality, which will be requisitioned for this purpose under the terms of a law which will be submitted for the approval of Parliament. It is understood that this clause does not apply to the metallic reserve of the Austro-Hungarian Bank.
2.
Delivery of the foreign securities belonging to the nationals of German Austria, and inscribed upon a list which will be drawn up by the creditor Governments after requisitioning of these securities under the terms of a law which will be presented to the Parliament by the Government of German Austria.
3.
The handing over to the creditor Governments of the credits in foreign countries resulting from sales of timber coming from forests belonging to the State or to public or private persons, until the establishment of a mortgage upon the forests belonging to the same persons and having an area in excess of 500 hectares, under reservation of the sole liens (servitudes) or exploitation charges or mortgages in existence at the same date. Those forests will be excepted which belong to the nationals of the creditor countries before the 15th May, 1919.
4.
Handing over of all the net product of the exploitation by the State of the salt mines situated in the territory of German Austria, and the establishment of a first mortgage upon the said salt mines, upon the factories, and all installations dependent thereon after repayment, or provision for repayment, of the mortgages already in existence.
5.
For one portion of the credit a guarantee to be given by the city of Vienna. The Government will use all its influence to secure the allocation of the net revenues of sites built on, or not built on, and all the industrial concerns belonging to the town of Vienna, and to other towns of German Austria having a population in excess of 50,000 inhabitants, and the establishment of a mortgage upon the said properties.

[Page 265]

The Government of German Austria will communicate as soon as possible, in any case before the end of June, 1919, the decision taken by the Austrian Parliament with reference to the objects mentioned in paragraphs 1 to 4 inclusive.

The creditor Governments, after having heard the financial experts of the German-Austrian Government, will inform this Government as to the revenues or guarantees required by them in the above list, in order to obtain financial covering for the food credits.

A special convention will fix the conditions of payment or the utterances of protests, as also the conditions of establishment of the guarantees required by them, the Government of German Austria to undertake at its own expense in due form all formalities necessary to this effect.

It is agreed that the guarantees thus handed over shall be liberated, and the mortgages thus constituted shall be written off pari passu with the partial repayments effected by the Austrian Government on account of the payment of the food credits which have been granted to it.

The Government of German Austria declares in general that it will earmark all its revenues of whatever sort to the liberation, at the times and places which will be determined, of the food credits which have been granted to it. In the meantime it remains to determine the methods of payment and the guarantees, as also the legal establishment of the said guarantees and mortgages.

We assume that the total of the pledges will be fixed in relation to the total of the credits, the value of the pledges being determined either by objective rules (for example, in the case of gold by the standard and weight, in the case of securities by the stock exchange value, deduction being made of the usual margin for the securities in question), or by an estimate drawn up by a Mixed Commission, for example, in the case of forests.

The question then for the moment is to determine the pledges sufficient to cover the food credit of 45,000,000 dollars granted hitherto. In addition to the total of this credit it will be necessary to obtain supplementary credits for the provisioning of our country; the covering of this credit should be accomplished by means of one or other of the pledges enumerated above.

Our intention being to abandon as quickly as possible the system of food credits, it is absolutely necessary to put our factories in operation once more, which makes necessary the purchase of raw materials in foreign countries, a purchase which could only be made when the Governments of the Entente have determined their choice out of the list of guarantees, which contains practically the whole of our realisable assets.

[Page 266]

Further, we consider it necessary that the Governments should choose those guarantees which by their nature lend themselves less easily to other transactions, that is to say, the guarantees referred to above under 3, 4, and 5, and that we should be left with those portions of the guarantees which permit us most easily to obtain other credits.

It would also be desirable that the contract relative to the pledges should provide for a possible substitution by agreement with the creditor Governments in order to liberate certain portions necessary to obtain other credits, and to replace these portions by other pledges considered adequate by the Governments of the Entente.

We assume, finally, that the creditor States will avoid in realising the pledges referred to above any measures which might affect the monetary situation in German Austria, which is already very serious.

I have [etc.]

Renner
[Annex C]

Property in the Austrian Republic Belonging to the State

The property of the Austrian State consists of:

I.
Industrial concerns owned by the State.
II.
Government Buildings.
III.
Property of the former Emperor and his family.

In the former Austrian Empire the property owned by the State has never been valued. Though there existed an Inventory of all possessions and holdings, their value in cash never has been estimated. But even in case this had been done, the figures could not be taken as a proper basis, in view of the devaluation of the currency. Also a comparison with similar properties belonging to private persons is of no use as the Government-Buildings (for instance Court-Buildings) lost [lose] their value as soon as they are no more used for their original purpose but for private purposes.

I. Industrial Concerns Owned by the State

These are the State railways, the tobacco and salt-monopoly, the telegraphs and telephones, the forests and mines.

1. State railways:

About 5000 km. of railways are State property (a great part of the Austrian railways for instance the Southern railway is private property.) The investment-value of the former Austrian State railways was estimated before the collapse of the Empire at 6400 million Kronen. This sum does not represent the present value, but the total of the expenditures made on building and acquiring the State railways in former Austria in a period of about 80 years.

[Page 267]

If this value is divided in proportion to the number of Kilometers of the lines remaining within the Austrian Republic, the invested capital may be estimated at about 1600 million Kronen. The actual value is considerably higher, but exact figures cannot be given. It is not possible to give information concerning the rolling stock, as the repartition between the national states has not yet taken place. At present the railway-cars are actually common property. In the budget 1919/20 are estimated

the years receipts at 590 mil K
the years expenditures incurred in operating the lines at 943
the deficit at 353

Since the drawing up of this budget the Government was compelled to raise the wages, besides the increasing coal prices caused more expenses, so that the actual deficit will be considerably larger. In this deficit is not included the expenditure for the payment of interests on the invested capital, as this forms part of the general public debt.

2. The tobacco-monopoly.

The assets of the tobacco-monopoly consists of:

a)
11 factories, machinery, inventory and
b)
stocks.

From estimates, taken before the war, the value of a) can be fixed at 23 million Kronen. The stored up tobacco amounts to 6 million kg worth about 30 million Dutch guilders.

In the budget of 1919/20 are estimated

the receipts of [at] 328 million Kronen.
the expenses at 117
the profit at 210

The expenses, mentioned above will actually be considerably larger on account of the increase of the costs, especially of wages. On the other hand an increase of the receipts is planned for the next [near?] future by raising the prices of the products.

3. Salt-monopoly.

The salt-monopoly comprises the output of salt-mines. The salt is gained by conducting water into salt-mines; this water after being saturated with salt is boiled; and the pure salt remains after the evaporation of this water. The total production in the year 1917/18 amounted to about 150,000 tons. This production could increase if the salt-works had sufficient coal.

In the budget of 1919/20 are estimated

the receipts at 47 million Kronen
the expenses at 31
the profit at 16

[Page 268]

The value of the factories, the machinery and the inventory is indicated at about 83 million Kronen. This sum does not comprise the value of the salt in the mountains.

4. Post, telegraphy telephone.

Post, telegraph, telephone are state-monopolies. The assets are buildings, apparatus, nets and supplies.; the value is estimated at 147 million Kronen.

According to the budget of 1919/20

the expenses amount to amount To 365 million Kronen
the receipts 200
the deficit 165

On account of increased wages the deficit will be considerably larger; though a raise of tariffs is planned.

5. Forests.

800,000 hectares from property of the State.

320,000 of which are non-productive.

The value of the returns of these forests was estimated in 1910 at 50 million Kronen.

Considering the extraordinary increase of the prices of wood the present value of the state-forests may be taken with 650 million Kronen.

In the budget of 1919/20 are appraised:

the expenses at 30 million Kronen
the receipts 32
the profit 2

6. Mines.

Of the former large mining properties of the Austrian Empire only a few small mines worth about 5 million Kronen remained

In the budget of 1919/20 are appraised

the expenses at 12 million Kronen
the receipts 15
the profit 3

II. Government-Buildings

The Austrian Republic possesses a great number of buildings, for the different administrative branches (courts, administrative authorities, schools, hospitals, a.s.o.)

These buildings have never been valued and this value cannot be estimated by way of comparison as they would lose their value as soon as they are used for other than administrative purposes.

The Austrian Republic possesses particularly in Vienna a large quantity of buildings of the former central-government, which merely [Page 269]will cause expenses, when the administrative apparatus will be restricted.

III. Property of the Former Emperor and His Family

This property consists partly of immovables partly of movables.

immovables

These consist of

a)
crown-property.
b)
entailed property of the Imperial Family (Trust-Fund).

a) Crown property.

It consists of palaces, castles, theatres, museums, gardens, situated partly in Vienna, partly outside, also at Salzburg and Innsbruck. It comprises amongst others the “Hofburg”, the Imperial stables, the imperial museums, the opera house, the “Burgtheater”, the castle of Luxenburg, the castle in the Augarten and the castle of Schonbrunn. Most of these places possess huge gardens such as the park at Schonbrunn and the very spacious “Tiergarten”. It is impossible to tax the value even approximately as objects for comparison don’t exist. Certainly the value must be estimated at several millions of dollars. Some castles possess very valuable furnitures and works of art.

b) Entailed property of the Imperial family (Trust fund).

The entailed property consists of 2 estates worth 700,000 dollars and 150,000 dollars respectively, 4 houses to let in Vienna worth about 340,000 dollars.

2. movables

a)
complete collections.
b)
scattered property places.

To the complete collections belong: The Imperial picture-gallery, the museums of art, the collection of engravings (Albertina) the Imperial Library, the Treasury and the Silberkammer. The scattered property serves for decorating and furnishing castles and palaces.

The valuation of these movables meets with some difficulty, it requires considerable time and a large staff of experts. We cannot even give an approximate estimate of the value of the picture gallery and the museums for instances. Recently a part of the Morgan collections has been sold for 20 million dollars, and yet the entire Morgan collection could naturally not compare with the treasures contained in the two above mentioned institutions. We do not want to mention a figure at random, but it surely could be said with great [Page 270]reserve that the picture gallery and the museums have a value that by far exceeds 80 million dollars. The collection of silver might be worth a million dollars. The Treasury contains the insignia of the crown, worth several million Kronen; the very valuable crown jewels (gems and pearls) are in the possession of the former Emperor and cannot be disposed of. It is not exaggerated if one values the movables at a sum exceeding the amount of 200 million dollars.

Concerning the complete collections we beg to refer to article 196 of the Peace Treaty, which forbids for the next 20 years the selling or scattering of these collections, or the disposing of them in any way, unless the states concerned have come to a special agreement.

Budget of the Austrian Republic

In the budget of the Austrian Republic for the fiscal year 1919/20 are estimated

the revenues at 2548 million Kronen
the expenses at 6547
the deficit with about 4000

The actual deficit however will be by far greater, it can already now be estimated at 8,000 to 10,000 mill, K, as the prices for foodstuffs are rapidly rising with the devaluation of the Kronen and the constant increase of wage scales not to be avoided. Besides the effects of the Peace-Treaty are not taken into consideration at the above estimates; this is especially the case as regards the state-liabilities, as the Austrian Republic has to take over two thirds of the debts of the former Austrian State.

The revenue of the State for the fiscal year 1919/20 are shown in the following list. The first column contains the gross receipts, the second column the net-receipts.

I. Revenues

gross net
million Kronen.
Imposts 545 540
Custom 67 66
Excise 188 185
Taxes 229 225
Salt 47 16
Saccharine 15 10
Lotteries 66 17
Press 21 1
Mint 2 1
Woods 32 2
Railways 590 Deficit 353
Post Office 200 165
Miscellaneous 206
2548 757
[Page 271]

II. Expenses

The first column contains the ciphers of the budget drawn up and printed July 1919. The second column contains the new expenses since then, so that the ciphers enumerated in the third column represent the probable expenses of the fiscal year 1919/1920.

[Translation16]

preliminary addition total
Million Kronen
Public Safety 104 104
Defense 255 85 340
Monopolies 174 34 208
Government Operation 936 43 979
War Damages 330 1 331
Prisoners of War 169 1288 1457
Maintenance 71 27 98
Unemployment 65 130 195
Famine Measures for Government Officials 636 298 934
Reparations 200 200
State Schools (old & new) 997 775 1772
Pensions 85 20 105
Liquidation Expenditures 265 11 276
Remaining Government Expenses 879 75 954
Provisions. 1381 1713 3094
Expenses 6547 4600 11, 047
Revenues 2458 2, 548
Deficit 4000 8, 500

Appendix F to HD–9717

[Translation]
18

Report of the Commission on Polish Affairs to the Supreme Council

Statute of Eastern Galicia

The Commission on Polish Affairs, in agreement with the Drafting Committee, has applied to the articles already adopted for the statute of Eastern Galicia the changes rendered necessary as a result of the decision of the Supreme Council on November 11.19

The two Commissions have decided on the text as it appears in the annex.

However, a difference in views resulted with regard to article 2.

The American, French, Italian, and Japanese Delegations propose that at the expiration of the 25-year mandate given to Poland over Eastern Galicia, the Council of the League of Nations should have full powers, deciding by a majority, to maintain or modify the present treaty.

[Page 272]

The British Delegation draws up in due form a reservation with respect to the words “deciding by a majority of votes” added to article 2, paragraph 2 of the treaty, in order to indicate under what conditions the Council of the League of Nations, at the expiration of the 25-year period provided for by this article, may maintain, revise or change the statute of Eastern Galicia. The British Delegation points out that the Supreme Council, not having decided, when it examined article 2, that the Council of the League of Nations would decide by a majority of votes, had consequently determined that the vote should be unanimous. This decision is an integral part of the general regulations which have been adopted by the Council. Under these circumstances, the British Delegation does not consider itself authorized to accept the proposed modification.

Paris, November 20.

Annex to the Report

The United States of America, the British Empire, France, Italy, and Japan, Principal Allied and Associated Powers, and Poland,

Being desirous of putting an end to the unhappy conflict which has long devastated Eastern Galicia, and of establishing in that country a regime which shall assure as far as possible the autonomy of the territory and safeguard the personal, political and religious liberty of its inhabitants;

Seeing that Poland is now, in the opinion of the Allied and Associated Powers, the State best able to re-establish free and well-ordered government in Eastern Galicia;

And desiring to conclude a Treaty to that end;

Have appointed as their Plenipotentiaries the following, viz:

Who having communicated their full powers found in good and due form have agreed as follows:

Chapter 1.—Statute of Eastern Galicia

Article 1

The Principal Allied and Associated Powers transfer to Poland, and Poland accepts the mandate to organize and govern for a period of twenty-five years the territory defined hereinafter as the former Austrian “Kronländer” of Galicia and Bukovina, which shall constitute the autonomous territory of Eastern Galicia.

a. on the west

From the point where the old frontier between Austria-Hungary and Russia is met by the eastern administrative boundary of the commune of Belzec southwestwards, this communal boundary;

[Page 273]

then the administrative boundary between the districts (Politische Bezirke) of Cieszanow on the west and Raza-Ruska on the east;

then south-westwards along the administrative boundary between the districts of Cieszanow and Jawarow, but cutting off the salient formed round the village of Lipowiec by a line to be fixed on the ground passing about 2 kilometres north of this place;

then southwards along the administrative boundary between the districts of Jaroslau and Przemysl on the west and of Jawarow, Mosciska, Sambor and Stary-Sambor successively on the east;

then southwards to the salient about 1 kilometre southeast of point 519 (Radycz);

along the administrative boundary between the districts of Dobromil and Stary-Sambor;

thence south-westwards to the salient made by this administrative boundary about 15 kilometres south-west of Chyrow and about 2 kilometres south-east of point 733;

a line to be fixed on the ground cutting the Chyrow-Sambor railway about 2 kilometres east of Chyrow, then following the watershed between the basins of the Strwiaz and the Dniester;

thence southwards to its junction with the frontier of Czechoslovakia, about 2 kilometres south of point 1335 (Kalicz);

along the administrative boundary between the districts of Drobomil and Liska on the west and of Stary-Sambor and Turka on the east. The frontier, however, will diverge from this administrative boundary in the two following places, where it will be determined on the ground:

(a)
where the administrative boundary passes west of the Chyrow-Lutowiska road, so as to leave this road entirely in Polish territory;
(b)
in the neighbourhood of Bobrka, so as to leave this place in Polish territory.

b. on the south-west

From the point defined above to its junction with the boundary of the Bukovina, the old frontier between Galicia and Hungary.

Point 1655 which is the point of the Carpathians common to the basins of the three rivers Tisza, Visso and Czeremosz, is the point of junction of the three frontiers of Eastern Galicia, the Ruthenian territory of the Czecho-Slovak State and Roumania.

c. on the south-east

From the point defined above north-eastwards to its junction with the administrative boundary between the districts of Horodenka and Sniatyn, about 11 kilometres south-east of Horodenka,

the old boundary between the Bukovina and Galicia;

[Page 274]

thence north-eastwards to a point to be chosen in the course of the Dniester about 2 kilometres below Zaleszczyki,

a line to be fixed on the ground passing through points 239, 312, and 317;

thence to the point where the old frontier between Austria-Hungary and Russia leaves the Dniester in a northerly direction, about 3 kilometres west of Jvanets,

the principal channel of the Dniester downstream.

d. on the east and north

From the point in the Dniester defined above to the point where it meets the eastern administrative boundary of the commune of Belzec;

the old frontier between Austria-Hungary and Russia.

A Commission composed of six members, five nominated by the Principal Allied and Associated Powers and one by Poland, will be appointed fifteen days after the coming into force of the present Treaty to trace on the spot the boundaries described above, in so far as provision therefor may not already have been made by other means. The decisions of this Commission will be taken by a majority, it being understood that in the event of an equality of votes the Chairman will be entitled to a second vote; its decisions shall be binding on the parties concerned. The expenses of the Commission shall be borne by the revenues of Eastern Galicia.

Article 2

Text approved by the Delegations of the United States, France, Italy, and Japan. Text proposed by the British Delegation.
Poland undertakes to execute under the control of the League of Nations and under the conditions stipulated in the present Treaty the mandate provided for in Article 1. Poland undertakes to execute under the control of the League of Nations and under the conditions stipulated in the present Treaty, the mandate provided for in Article 1.
At the expiration of 25 years the Council of the League of Nations, deciding by a majority of votes, shall have full powers to maintain, revise or change the statute drawn up by the present Treaty. At the expiration of 25 years, the Council of the League of Nations shall have full powers to maintain, revise or change the statute drawn up by the present Treaty.
[Page 275]

Article 3

During the regime established by the present Treaty, the treaties and agreements concluded or to be concluded by Poland shall take effect in Eastern Galacia unless it is otherwise stipulated.

Article 4

The interests of nationals of Eastern Galicia in foreign countries shall be protected by the diplomatic and consular agents of Poland.

Article 5

All liberties in private and public matters, all political rights, and all rights reserved to minorities, which are assured in Poland by the Polish laws, shall be assured in Eastern Galicia. In particular, the most complete religious freedom shall be guaranteed. The Orthodox Greek Catholic Church shall enjoy the same rights as the Roman Catholic Church.

Article 6

Poland undertakes that the laws applicable in Eastern Galicia regarding freedom of public meeting, association, speech, and the press shall take into account the special status of the territory, and shall ensure to the inhabitants the most complete liberty compatible with the maintenance of order and with the observance of the provisions of the present Treaty.

Article 7

Polish and Ruthenian shall be recognized, on the same footing, as the official languages of Eastern Galicia, and shall enjoy the same rights.

Without prejudice to the guarantees assured to minorities by Article 8, each commune or municipality shall have the right to decide whether the Polish language or the Ruthenian language or both shall be taught in the primary public educational establishments.

Legislation on the subject of public instruction in secondary and higher educational establishments shall be within the competence of the Diet of Eastern Galicia provided for in Article 10, subject to the provisions of Article 13.

In the allocation of public funds to the three grades of education, instruction given in Polish and instruction given in Ruthenian shall each receive its fair share.

[Page 276]

Article 8

The provisions of the Treaty concluded on June 28, 1919,20 between the High Contracting Parties are hereby applied to Eastern Galicia, and shall be interpreted as follows: (1) The obligations imposed on the Polish Government by that Treaty shall be equally binding on the authorities of Eastern Galicia, within the measure of their competence; (2) the guarantees provided by that Treaty in favour of racial minorities, on the implicit assumption that the majority is Polish, shall apply equally in the event of the majority proving to be Ruthenian.

Article 9

There shall be no systematic introduction into Eastern Galicia of colonists from outside.

Chapter II.—Diet of Eastern Galicia

Article 10

There shall be in Eastern Galicia a Diet composed of a single Chamber elected by universal secret suffrage with proportional representation. The right of voting shall belong to both sexes without distinction.

A general election shall take place every five years. In the event of the dissolution of the Diet, a general election shall take place within a period of three months after such dissolution.

The Polish electoral laws shall apply to the elections to the Diet of Eastern Galicia, subject to the above provisions.

Article 11

The Diet shall be convened by the Governor provided for in Article 19, who may also adjourn it, close the session or dissolve the Diet.

The Diet shall hold two ordinary sessions in every year.

Article 12

The Diet of Eastern Galicia shall legislate on the following matters:—

(1.)
Exercise of public worship;
(2.)
Public education;
(3.)
Public relief;
(4.)
Public health;
(5.)
Provincial, district and local roads, and railways serving local interests;
(6.)
Encouragement of agriculture, trade and industry, including measures for facilitating credit, purchase or sale, for developing the employment of new technical processes, and for assisting research and experiments;
(7.)
Application of the general laws on the subject of control of water for irrigation or power purposes;
(8.)
Application of the general laws on the subject of the organization and administration of municipalities and districts;
(9.)
Taxes to be collected for the local budget of Eastern Galicia;
(10.)
Agrarian questions;
(11.)
All other matters with which the Diet of Poland shall have given it authority to deal.

Each year the Diet of Eastern Galicia shall vote, on the proposition of the Governor, the budget on the matters within its competence.

Article 13

Laws passed by the Diet shall be transmitted to the Governor by the President of the Diet. Any such law may, within one month from such transmission, be vetoed by the Governor acting on his own proper authority. This right of veto shall be overridden if, within a period of one year from the date at which it was exercised, the law is again passed by the Diet by a majority of two-thirds.

In legislation concerning public secondary and higher education, the Governor’s right to veto shall, however, be absolute.

However, if an agrarian legislative measure, after having been vetoed by the Governor, is within a year voted again by the Diet by a two-thirds majority, the question shall be immediately submitted by the Polish Government to the Council of the League of Nations. The latter will decide, by a majority of votes, what action is to be taken and orders are to be given which may appear useful and suitable under the circumstances.

Article 14

No member of the Diet may be prosecuted or proceeded against in any way by reason of speeches, opinions or votes made, expressed or given in the Diet or on its Commissions.

During a session no member of the Diet may be arrested or prosecuted before the criminal courts without the authority of the Diet, except in the case of persons taken in flagrante delicto. The detention or prosecution of a member of the Diet shall be suspended during the whole of the session, should the Diet so require.

Article 15

The Diet shall draw up its own rules of procedure. It shall elect its President and other officers.

[Page 278]

The Supreme Court of Lemberg referred to in Article 27 shall decide all questions raised as to the validity of elections to the Diet.

Chapter III.—Representation of Eastern Galicia in the Polish Diet and Administration

Article 16

The electors of Eastern Galicia shall participate in the elections to the Polish Diet. With this object, the Polish laws with regard to the election to that Diet shall be extended to Eastern Galicia, subject to the reservation that proportional representation must be maintained in that territory.

The deputies elected in Eastern Galicia shall not take part in the deliberations of the Polish Diet on legislative matters of the same nature as those within the competence of the Diet of Eastern Galicia.

This arrangement shall be subject to common agreement between the Polish Government and the Ministry of Eastern Galicia.

Article 17

The Polish Diet shall have the right to legislate for Eastern Galicia on all matters not within the competence of the Diet of Eastern Galicia.

Article 18

The Polish Council of Ministers shall include a Minister without portfolio appointed by the Head of the Polish State from among the inhabitants of Eastern Galicia. This Minister shall represent Eastern Galicia.

Special bureaux for the affairs of Eastern Galicia shall be organised in each Polish Ministry dealing with such affairs.

A high Ruthenian official shall be attached to the Polish Council of Ministers to act as adviser to the Council in matters particularly concerning Ruthenians and in the affairs of the Orthodox Greek Catholic Church.

Chapter IV.—Administration of Eastern Galicia

Article 19

The executive power in Eastern Galicia shall be entrusted to a Governor, who shall be appointed by the Head of the Polish State, by whom he may also be relieved of his functions.

Article 20

The Governor shall be responsible for the maintenance of order and public safety; he shall ensure the execution of the laws voted by the Polish Diet and the Diet of Eastern Galicia.

[Page 279]

Article 21

Subject to the right of veto provided in Article 13, the Governor shall promulgate the laws voted by the Diet of Eastern Galicia within a month from the time when they shall have been transmitted to him by the President of that Assembly.

Article 22

The matters within the competence of the Diet of Eastern Galicia in accordance with Article 12 shall be under the direction of Ministers appointed by the Governor and responsible to the Diet. The Diet shall determine the number, duties, and salaries of such Ministers.

Article 23

Matters not within the competence of the Diet of Eastern Galicia shall be under the direction in Eastern Galicia of Heads of Departments placed under the control of the Governor.

Article 24

The acts of the Governor as regards the matters referred to in Article 12 shall require the counter-signature of a responsible Minister, except in the exercise of the right of veto.

Article 25

The Governor shall appoint public officials. Polish or Galician laws, as the case may be, may, however, prescribe another method of appointment as regards subordinate officers. They may also determine the conditions required for appointment to any particular office.

The officers in the services dealing with matters referred to in Article 12 shall be appointed on the nomination of the responsible Minister.

Article 26

Eligibility for public offices shall not in principle be subject, either de jure or de facto, to any conditions in respect of race, religion or language.

Officials shall, subject to any necessary exceptions, be recruited in Eastern Galicia. Regulations issued by the Governor on the proposal of the Head of the department concerned, or of the responsible Minister, as the case may be, may prescribe that certain classes of official positions shall be reserved exclusively for natives of Eastern Galicia or persons fulfilling the conditions laid down by these regulations.

[Page 280]

In making choice of officials from among candidates with equal qualifications, the numerical importance of the different national groups shall be taken into account.

Chapter V.—Judicial System of Eastern Galicia

Article 27

The Court of Lemberg will constitute a Supreme Court for the entire territory of Eastern Galicia.

Article 28

The judges of Eastern Galicia, with the exception of those for whom an elective system may be adopted, shall be appointed by the Head of the Polish State on the nomination of the Governor.

The judges shall be irremovable; they shall only be deprived of office on a decision to that effect by the Court of Lemberg acting as the supreme disciplinary Council of the magistracy.

Article 29

Punishment imposed by the Eastern Galician courts shall be executed in Eastern Galicia.

Article 30

The Head of the Polish State shall have the right of pardon in respect of persons convicted by the courts of Eastern Galicia.

Chapter VI.Financial Regime of Eastern Galicia

Article 31

The financial regime for Eastern Galicia shall be determined by a Polish law in conformity with the provisions of the present Treaty.

Article 32

Property situated in Eastern Galicia formerly belonging to the Austrian Government, to the “Kronländ” of Galicia, or to the Austrian Crown, as well as private property in this territory of the former Royal Family of Austria-Hungary, is, subject to the conditions laid down in Article 204 of the Treaty of Peace between the High Contracting Parties and Austria, transferred to Poland, which shall provide for the administration of such property.

Article 33

Property at present appropriated to public services shall continue to be so appropriated. It shall not cease to be so appropriated except [Page 281]in accordance with legal procedure and on the recommendation of the authority charged with the administration of such services.

During the regime established by the present Treaty, the property referred to in Article 32 may not be alienated nor subjected to charges the effect of which would outlast the duration of the said regime; in case a new status is established, in accordance with Article 2, leases outlasting the regime shall cease to have effect three years after the establishment of this status if they have not been expressly confirmed during this period. The above provisions are, however, not to be taken as preventing the employment of the aforesaid property for purposes of agrarian reform or of works recognized as being of public utility.

The provisions of this Chapter in no way prejudge the allocation of the said property to be made by the Principal Allied and Associated Powers in the event of Eastern Galicia being in whole or in part separated from Poland.

Article 34

Additions to domanial property or property appropriated to the public services shall be administered in accordance with the provisions of Articles 32 and 33; they shall be the subject of a special account to be adjusted immediately in case a new status for Eastern Galicia shall be established, in conformity with Article 2.

Article 35

In the event of Eastern Galicia bearing the expense of any services of which in Poland the expense is borne by the State, Polish legislation shall fix the corresponding proportion of the proceeds of the general taxes raised in Eastern Galicia which shall be transferred to the budget of Eastern Galicia.

Article 36

The budget of Eastern Galicia shall comprise:

(1)
As regards expenditure,
the expenditure connected with the matters referred to in Article 12;
(2)
As regards revenue,
(a)
the proportion of the proceeds of the general taxes determined in accordance with Article 35;
(b)
the proceeds of supplements of the general taxes, voted by the Diet of Eastern Galicia;
(c)
the proceeds of duties and taxes imposed by the Diet of Eastern Galicia.

Article 37

The Polish Government shall be responsible for the service of the debts which, under Articles 199 and 200 of the Treaty of Peace between [Page 282]the High Contracting Parties and Austria, are to be assumed by. the territory of Eastern Galicia. In the event of this territory becoming either as a whole or in part separated from Poland, its contribution shall be determined in conformity with the principles laid down in Article 199 of that Treaty.

Chapter VII.—Military Organization

Article 38

Laws in force in Poland relating to military service may be applied by Poland to Eastern Galicia, with the reservation that the contingent thus recruited shall form special units, which, in time of peace, shall be stationed in Eastern Galicia and in time of war shall be at the disposal of the Polish Government for the defense of national territory.

Chapter VIII.—Transitory Provisions

Article 39

Until the Assembly of the Diet, the Governor of Eastern Galicia shall administer the territory in conformity with the provisions of the present Treaty.

In regard to matters which according to the present Treaty are within the competence of the Polish Diet, the Polish laws shall be introduced in Eastern Galicia by promulgation by the Governor. In regard to matters within the competence of the Diet of Eastern Galicia, the laws and regulations in force on July 28, 1914, shall be applied without being promulgated anew.

The Governor shall take the necessary measures for the initial constitution of the administrative services. He shall fix the number of Ministers and the division of duties between them, the number and the division so fixed being maintained until modified by the Diet.

The Governor shall take the necessary measures with a view to the election of the Diet of Eastern Galicia at the earliest possible date in the conditions laid down in Article 10, so that the Diet may be able to assemble at the latest within a period of nine months from the coming into force of the present Treaty. It will be the duty of the Governor to assure the freedom of the voting, in conformity with the provisions of Article 6, and to proceed without delay to the convocation of the Diet.

The regime established by Chapters I to VI of the present Treaty shall come into force in every respect upon the assembly of the first Diet. Compulsory military service shall not be introduced in Eastern Galicia before that date.

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Article 40

No inhabitant of Eastern Galicia shall be disturbed or molested by reason of his political attitude between July 28, 1914, and the coming into force of the present Treaty.

The present treaty, in French, in English, and in Italian, shall be ratified. In case of divergence the French text shall prevail. It is to come into force at the same time as the Treaty of Peace with Austria.

The deposit of ratifications shall be made at Paris.

Powers of which the seat of the Government is outside Europe will be entitled merely to inform the Government of the French Republic through their diplomatic representative at Paris that their ratification has been given; in that case they must transmit the instrument of ratification as soon as possible.

A procès-verbal of the deposit of ratifications will be drawn up.

The French Government will transmit to all the signatory Powers a certified copy of the procès-verbaux of the deposit of ratifications.

In faith whereof the above-named Plenipotentiaries have signed the present Treaty.

Done at Paris, the sixth day of September, one thousand nine hundred and nineteen, in a single copy which will remain deposited in the archives of the French Republic, and of which authenticated copies will be transmitted to each of the Signatory Powers.

  1. Appendix B to HD–89, p. 103.
  2. No such report of the Committee on Organization of the Reparation Commission has been found in the Department’s files. The document filed with HD–97 as appendix D duplicates note of the British delegation, appendix B to HD–92, p. 172, together with the resolution of November 14, referring this document to the Organization Committee of the Reparation Commission, HD–92, minute 5, p. 169.
  3. Post, p. 254.
  4. Treaties, Conventions, etc., 1910–1923, vol. iii, pp. 3149, 3215.
  5. Appendix C to HD–80, ol. viii, p. 865.
  6. For the statement of M. Paderewski on the status of Galicia, see HD–59, minute 5, vol. viii, p. 330.
  7. HD–89, minute 7, p. 99.
  8. See HD–86, minute 3, p. 20.
  9. Appendix B to HD–93, p. 185.
  10. Appendix A to HD–91, p. 149.
  11. Appendix E to HD–90, p. 138.
  12. Appendix B to HD–89, p. 103.
  13. CF–24/1, minute 5, vol. v, p. 834.
  14. HD–66, minute 3, vol. viii, p. 508.
  15. Vol. ii, p. 175.
  16. Annex B, p. 264.
  17. For the document filed as annex B there has been substituted a different translation of the same document taken from the minutes of the Financial Sub-Commission of the Supreme Economic Council (filed under Paris Peace Conf. 180.05201/1).
  18. Translation from the German supplied by the editors.
  19. Filed separately under Paris Peace Conf. 181.213202/13.
  20. Translation from the French supplied by the editors.
  21. HD–89, minute 7, p. 99.
  22. Treaties, Conventions, etc., 1910–1923, vol. iii, p. 3714.