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

Paris Peace Conf. 180.0501/1

Supreme Economic Council: First Meeting of First Session Held at the Ministry of Commerce on the 17th February, 1919

February 17, 1919

The Supreme Economic Council, established at the request of President Wilson and in accordance with the decision reached by the Supreme War Council,¹ held its first meeting on 17th February 1919, under the chairmanship of M. Clémentel.

The associated Governments were represented as follows:²

Gt. Britain:	Lord Robert Cecil
	Sir John Beale
United States:	Mr. McCormick
	Mr. Hoover
	Mr. Norman Davis
	Mr. Baruch (Excused)
	Mr. Hurley (Excused)
France:	M. Clémentel
	M. Klotz
	M. Loucheur
Italy:	M. Crespi
	M. Chiesa

I. Constitution.

M. Clémentel expressed satisfaction that the past cooperation between the Allies, so satisfactory in its results, had been still more completely established by the execution of the proposal made by President Wilson that a Supreme Economic Council should be formed.

M. Clémentel, referring to the resolution of the Supreme War Council to the effect that:

“The Supreme Economic Council should absorb or replace such other existing bodies and their powers as it may determine from time to time.”

submitted that the Council should co-ordinate the work of the following Inter-Allied organizations:

a) Allied Maritime Transport Council,

b) Inter-Allied Food Council,

c) Supreme Council of Supply & Relief,

d) Programme Committees,

e) Superior Blockade Council.

The Council agreed that the existing councils should refer to them for decision important questions of policy. Under these conditions, it was not considered necessary to create a special administration but it was agreed that a Secretariat should be formed whose responsibility it would be to collect and circulate documents and summon the meetings which should take place once a week.

The Chairmanship would be taken in rotation by the principal representatives of each of the Associated Governments.

After some general discussion, the following resolutions submitted by Lord Robert Cecil were accepted:

1. “The existing Councils or their administrative organizations should be retained with their present powers.

2. “These Councils should report to each meeting of the Supreme Council the decisions which they have taken since the last meeting, as well as all questions regarding which, for any reason whatever, they have not been able to come to an agreement.

3. “The Supreme Economic Council will take decisions on all questions which are submitted to them and will give such other directions as may seem to them desirable or necessary.”

II. Transport in Southeastern Europe.

The British Delegates reported that they had received information through General Mance to the effect that there was grave danger of a complete breakdown of transportation in Southeastern Europe and submitted that a Technical Committee should be formed immediately to study the question and make recommendations to the Council.

Agreed.

The following members were appointed on the Committee:

United States	Col. Atwood,
Italy	Gen. Levi,
United Kingdom	Gen. Mance,
France	Gen. Gassouin,

It was agreed that General Mance should be Chairman of the Committee.

III. Austrian Trade.

The British delegation inquired whether there was any real advantage in preventing the Austrians, in view of their serious position as regards finance and food, from obtaining credits by the export of jewelry and other similar articles not of a competitive nature, which they are at present able to manufacture.

The American Delegates reported that the matter had already received the consideration of the Supreme Council for Supply & Relief and Superior Blockade Council and undertook to report in detail at the next meeting of this Council.

IV. Enemy Ships in Spanish Ports.

In reply to an inquiry made by the British Delegates, the French Delegates stated that the opposition placed by the Spanish Government against the departure of Austro-German ships from Spanish ports was explained by the fact that Great Britain had not yet agreed to the request made by Spain and conceded by the other Associated Governments, that she should be permitted to use the six vessels on which the Spanish flag had been placed and over which she desired to retain control.

The British Delegates agreed to report the position to their Government.

V. Relaxation of Blockade on Northern Neutrals.

The American Delegates reported that at the last meeting of the Superior Blockade Council the question of increasing the rations of the Northern Neutrals had been discussed, that it had been decided to submit to the Supreme Economic Council the question of increasing the rations of each country to their normal pre-war consumption, as the Superior Blockade Council had not been able to come to a decision owing to a question of finance.

They further stated that the American Government was of the opinion that the blockade on those countries should be removed entirely on the understanding that the necessary guarantees regarding re-export to enemy countries were obtained.

It was agreed that the matter should be discussed in detail at the next meeting of the Council.

VI. Supplies of Foodstuffs for Italy.

The Italian Delegates referred to the unfortunate position of Italy as regards essential foodstuffs due mainly to the fact that financial difficulties prevented her making the necessary arrangements for purchasing and transporting supplies to meet even her minimum needs.

After some general discussion, in which the French Delegates pointed out that the difficulties being experienced by Italy were also applicable very largely to France, it was agreed that the matter should be deferred for further consideration at the next meeting to enable the French and Italian Representatives to prepare a definite statement of the position and needs of their respective countries.

VII. Date of Next Meeting.

It was agreed that the next meeting should be held on Tuesday the 25th February at 3 p.m.

1. See BC–26, minute 5, vol. iii, p. 934.
2. For further information concerning the members of the Supreme Economic Council and the organization of the Council, see vol. iii, pp. 87–90 and 146–150.