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

Paris Peace Conf. 180.0501/12

Supreme Economic Council: Twelfth Meeting Held at the Ministry of Commerce [on 14th April, 1919, at 10 a.m.]

April 14, 1919, 10 a.m.

The Supreme Economic Council held its twelfth Meeting on Monday, 14th April, 1919 at 10 a.m. under the Chairmanship of Mr. McCormick.

The Associated Governments were represented as follows:—

Great Britain.	Commander Leverton Harris
	Mr. E. F. Wise
	Sir William Goode
U. S. A.	Mr. Hoover
	Mr. Norman Davis
	Mr. Robinson
	Mr. Baruch.
France.	M. Clémentel.
Italy.	Prof. Attolico.

86.

The Minutes of the eleventh meeting were submitted and deferred for approval to the next meeting.

87. Belgian Representation on Sections of the Council.

A letter from the Belgian Minister dated 8th April (80) reporting a request made by the Belgian Government that they should be represented on certain Sections and Commissions of the Council was submitted.

It was agreed:—

(a) That, in view of the constant reference made at the Council to matters of interest to Belgium, the Belgian Government should be invited to appoint a Representative to attend all Meetings of the Council, and such Meetings of the various Sections as he desired;

(b) That the above decision should not be interpreted as creating a precedent in respect of the representation of other Governments on the Council.

88. Sale to Germany of Raw Materials.

Resolutions (81) from the Raw Materials Section regarding the sale to Germany of Surplus stocks of raw materials held by the Allied Governments, were submitted.

It was agreed:—

(a) That the Resolutions should be adopted subject to confirmation by the Finance and Blockade Sections;

(b) That the Sub-Committee appointed to decide upon the amounts to be offered to the German Government, and the prices to be asked, should have full authority to take action as soon as the Finance and Blockade Sections have accepted the proposals.

89. Resumption of German Trade.

A Memorandum from the French Delegates on the Raw Materials Section dated 1st April (82) embodying proposals regarding the transitory measures to be taken during the period of reconstruction, was submitted.

The Chairman of the Raw Materials Section reported receipt of information to the effect that the Council of Four had decided to deal with this matter direct, and suggested that there was, therefore, no necessity for the matter to be discussed by the Supreme Economic Council.

It was agreed that the matter should be deferred for further consideration at the next Meeting, if necessary, pending receipt of additional information from the Council of Four regarding the position.

90. Relief Measures.

1. Position of Relief Operations.

A report from the Director General of Relief dated 10th April (83) recording the relief measures effected by the Associated Governments during March 1919, was submitted for the information of the Council.

With reference to Minute 58 the Chairman of the Finance Section reported that the Section had not as yet been able to obtain statements as to the share of financial responsibility to be undertaken by the several Allied Governments.

(a) Austria.

The Director General of Relief reported that the United States Treasury had arranged for a loan of $10,000,000 each to Great Britain, Italy, and France, and that while the two former Governments had accepted the loan and allocated them to the Austrian programme, the French Treasury had as yet taken no action. The French Delegates undertook to press the matter to a conclusion and agreed that, in the meantime, approximately 60,000 tons of relief tonnage now awaiting loading at the Atlantic seaboard might be utilised at once in the expectation that the approval of the French Treasury to the loan of the 10 million dollars would be obtained.

It was pointed out that the 30 million dollar credits already arranged for financing food supplies for Austria would only take care of the relief programme until the end of May and it was agreed, subject to the approval of the Allied Treasuries and the United States Treasury, that further credits up to a maximum of 15 million dollars should be advanced for Austrian Relief on the same conditions as those agreed upon for the 30 million dollar loan.

(b) General Relief

The Director General of Relief referred to the following proposals as regards general relief which had already been placed before the Food Section and which were urgently requiring a settlement:—

(i) That the French Government should agree to the diversion of [for?] relief purposes of about 16,000 tons of pork products held in the United States for account of the French Government and which was in excess of the French Requirements.

(ii) That the grain required for loading 28,000 tons of Austrian Shipping now at Canadian Ports should be financed by either the Canadian or British Governments.

It being reported that these matters were receiving the urgent consideration of the respective Financial Authorities, it was agreed to approve the proposals in principle and to refer them to the Finance Section for final settlement and report at the next meeting of the Council.

2. Programme for May Arrival.

With reference to Minute 71 (b) a Report from the Wheat Executive (84) regarding the possible reduction of the Allied Importation Programme of cereals for May delivery so that the relief programme for May arrival might be adequately executed, was submitted.

The Director General of Relief reported:—

(a) That since the Wheat Executive had met, the Italian Government had withdrawn their claims on all Austrian tonnage for May arrival thereby setting free for relief purposes about 92,000 tons of prompt tonnage, on the understanding that replacement of the foodstuffs sent from Italy to German Austria would be effected, if possible, in June.

(b) That it would still be necessary to provide the 50,000 tons of British tonnage referred to in Clause (1) of the Memorandum from the Wheat Executive.

It was agreed:—

(a) That the British Delegates should endeavour to obtain the 50,000 tons of prompt British tonnage required:

(b) That the Italian Delegates should report as soon as possible to the Director General of Relief regarding the possibility of the Italian Government undertaking to finance the whole of the freight on the Austrian Tonnage involved.

91. Use of Enemy Tonnage.

A resolution from the Food Section regarding priority in the use of enemy tonnage was submitted, amended and approved as follows:—

(a) That all enemy cargo tonnage available over and above that required for the transport of foodstuffs to Germany should be used primarily for the carriage of foodstuffs required for the execution of:—

(i) The Relief programme.

(ii) The Allied Programmes.

(b) That the Food and Shipping Sections should co-operate to ensure the most economical use of enemy tonnage for the above purpose.

(c) That any proposed use of these ships for other purposes must be referred to this Council for approval.

It was noted that the above decisions in no way interfered with the existing agreement whereby the execution of the Allied Food Programme shall have priority on all Allied tonnage.

92. Situation in Latvia, Lithuania and Esthonia.

(a) With reference to Minute 68 (c) the Chairman of the Blockade Section reported that, the Military Authorities of the Associated Governments having signified their approval, restoration of trade with Latvia and Lithuania had been authorised, subject to the necessary guarantees being given by the Governments concerned or a recognised agency thereof, regarding re-export of commodities to Germany.

Approved.

(b) A Memorandum from the Food Section (85) embodying a questionnaire regarding the political and economic problems involved in the consideration of relief measures for Latvia, Lithuania and Esthonia was submitted.

It was agreed that the memorandum should be submitted to the Conference of the Foreign Ministers of the Allied and Associated Governments with a request for advice upon the problems raised therein.

M. Clémentel mentioned that he had already reported the matter to the Foreign Minister.

93. Relations With Germany.

With reference to Minute 83 memoranda submitted by the American (86) and French Delegates (87) embodying suggestions for consideration in conjunction with the scheme proposed by Mr. Wise for re-organising the Commissions and Authorities dealing with the German economic problems, were considered.

It was agreed:—

(a) That the scheme for the organisation of economic relations with Germany under the Armistice should be referred to the Committee composed of the following members:—

United Kingdom.	Mr. Wise.
U. S. A.	Mr. Legge.
France.	M. Seydoux.
Italy.	Prof. Attolico.

(b) That the Committee should have power to re-draft the proposals put forward by Mr. Wise in view of the recommendations of the American Delegates.

(c) That the Committee should have power to act on all matters solely concerning this Council, and covered by memoranda of Mr. Wise and the French and American Delegates.

(d) That the Committee should furnish a memorandum to the Council of Four on the points requiring their decision.

(e) That the Committee should consider the French proposals for co-ordination of the work arising out of the Brussels Agreement.

94. Italian Coal Situation.

The American Delegates referred again to the serious situation with which Italy is faced, owing to lack of coal, and pointed out that the action already taken was entirely inadequate to meet the present need.

It was agreed.

(a) To appoint a Sub-Committee composed of the following members:—

United Kingdom	Sir Thomas Royden.
U. S. A.	Mr. Legge.
France	M. Loucheur.
Italy	Prof. Attolico.

charged with the responsibility of finding the means of obtaining coal for Italy immediately, and with authority to make such recommendations to the Finance Section as they consider necessary.

(b) that a report of action taken should be submitted to the Council at its next meeting.

95. Relief and Reconstruction Credits for Liberated Territories.

With reference to Minute 23 (2) the following resolution submitted by the Chairman of the Finance Section was considered, and referred back to the Finance Section for re-consideration with power to take such action as they consider necessary:

“That those advances shall include all those made since the Armistice for relief and reconstruction purposes, and that relief and reconstruction purposes are defined as including all advances made for food, clothing, raw materials, railway material, and such things as leather belting and lubricating oil but not miscellaneous articles of industry.[”]

96. Black List on Neutral Ships.

With reference to Minute 72 (b) it was reported that the Shipping Section had decided to continue the ships’ Black list subject to all black listed vessels under 1600 Gross Register now in the Baltic, being permitted to move provided they were chartered for approval employment.

Approved.

97. Use of Enemy Wireless Stations.

With reference to [Minute] 79 (d) the following Resolution submitted by the Blockade Section was approved:—

“That action be taken with respect to the wireless stations at Vienna and Budapest, with a view to establishing the same control over said stations as that which has been approved for the stations at Nauen, Hanover, and Berlin.[”]

It was agreed that the Inter-Allied Commission now sitting at Vienna should make the arrangements for the exercise of the necessary control.

98. Organisation.

I. Report of Sub-Committee on Personnel.

The following decisions of the Sub-Committee appointed on 7th April to consider the question of personnel in relation to the organisation and procedure of the Council were approved:—

(a) The responsibility for the preparation of the Agenda is to be assigned to the French Officer designated by M. Clémentel.

(b) The responsibility for drafting the minutes is to be assigned to Dr. Dixon.

(c) The responsibility for drafting the official Press communique is to be assigned to Captain Hart.

These duties are as defined in the Report of the Organisation Committee of March 26th (61) and the arrangements as to the Press Committee (63) already approved by the Council, and are subject to the conditions therein prescribed.

II. The following Resolutions adopted by the Wheat Executive and Food Section regarding the status of the Committee of Representatives and its Sections, were approved:

(1) That the Committee of Representatives shall be merged into the Food Section of the Supreme Economic Council. The Wheat Executive and other Food Executives shall become Committees of the Food Section, and their members shall have the right of attending meetings of the Food Section.

(2) That the Freight Committee of the Committee of Representatives shall become the Freight Committee of the Food Section of the Supreme Economic Council.

99.

It was agreed that the Council should hold its next Meeting on Tuesday 22nd April, at 10 a.m.

Appendix 80

Belgian Delegation, Paris, 8th April, 1919.

Translation

[Letter From the Belgian Minister of Foreign Affairs (Hymans) Regarding the Representation of the Belgian Government on the Council and Its Sections]

Sir: The Belgian Government has recently expressed the desire to be represented on the two Sub-Commissions of the Supreme Economic Council, the Finance Section and the Raw Materials Section. We do not doubt that the Allied Governments will consent to the admission of the Belgian Delegates to these two Sections, but in the meantime, we should be much obliged if you would give instructions for the decisions of the Supreme Economic Council touching directly on the interests of Belgium, to be sent to the King’s Legation in Paris.

Further, we have learnt that a new organisation in connection with the Supreme Economic Council is contemplated, to deal with the problems relative to the German Affairs in general. Into the work of this new Committee would be merged that of the Interallied Committee for the Rhine Territories, which would cease to exist. According to information we have received, this Commission for German Affairs would only include representatives of France, England, United States and Italy. A Belgian Delegate would only be included when Belgian interests appear directly interested.

I beg to insist strongly that a Belgian Delegate should function permanently on the Commission which is going to be set up. Our interests both on the Left Bank of the Rhine and in the rest of Germany are considerable. Our position of immediate neighbour of the German State renders it necessary for us to follow closely all important economic questions which arise every day between the Allies and their relations with Germany.

Under these conditions the King’s Government must insist on obtaining a permanent representation on the new Committee for German Affairs, which is about to be created by the Supreme Economic Council.

I do not doubt that the Allied Governments will recognise the important and direct interests of Belgium and grant the request which I have the honour to set forth above.

Hymans

The President of the Supreme Economic Council.

Appendix 81

Resolution [From the Raw Materials Section] Concerning Surplus Stocks of Raw Materials

At the meeting of the Raw Materials Section on April 4, 1919, the following Resolution was adopted:

That the Raw Materials Section of the Supreme Economic Council gives its general approval to the Scheme whereby the Surplus stocks of raw materials in the possession of the Allied Governments may be offered for sale to the German Government at such prices as may be agreed upon.

That the question of the actual amounts to be offered and of the prices to be asked be remitted to a Committee of one representative for each of the four Associated Governments, provided that the price fixed should be such as to place the German manufacturers on an equal footing with that on which Allied and Associated manufacturers stand.

That the question of necessary credits and any other financial aspects of the Scheme be referred to the Finance Section of the Council, and that with the approval of the Finance Section the Committee of Four be empowered to enter into negotiations with the German Government, and to conclude sales. This arrangement is to last until the Treaty of Peace, the French Government reserving their opinions as to what ought to be done afterwards.

Appendix 82

[Translation]¹

Note by the French Delegates on the Raw Materials Section on the Resumption of German Foreign Trade After Signature of Preliminary Peace

The Economic Council has asked for a statement of the conditions under which the most complete freedom possible might be given to Germany to resume her import and export trade immediately after the signing of the Peace Preliminaries.

The reasons advanced by the American and British Delegates were: on one hand, that, to prevent the entrance of Bolshevism into Germany, we must endeavour to facilitate her obtaining her food supply and means to work, and that, on the other hand, all nations in the world should, at this moment, try to establish, as far as possible, freedom of trade, so as to restore the necessary equilibrium as soon as possible.

1. France calls attention first of all to the fact that she, as well as Belgium, is in an especially bad situation. The condition of the great industries of the north and east of France—systematically destroyed by Germany—make it impossible for her to resume at once her place in the export market, and consequently, if complete freedom were given to German exports, our industries of the north would find their place occupied by Germany in two or three years, when their factories were once more ready to operate. This would be allowing the Germans a reward for the destruction which they carried out, and everyone agrees that special precautions should be taken in favour of the industries of the liberated regions to protect them against this danger.

2. A second consideration must be taken into account. The Allied nations have acquired certain quantities of raw materials during the war. The price of these materials has gone down since, and the Germans could therefore acquire what they need to restart their industries at prices much lower than those paid by the Allied nations. They would therefore have considerable advantages over us, and it is certain that some adjustment must be made.

3. Finally, a third and last point: Before the war, Germany, profiting by a privileged situation with regard to certain raw materials, tried to impose her will on other nations. In a notable instance she boycotted consistently the metallurgic industry of France by demanding exorbitant prices for coke.

The best way to bring about the peace of the world is to remove these difficulties as far as possible, and this can be done all the more easily since the Allies are to exact from Germany the export of certain quantities of products to meet the obligations that will be due to the Allied and Associated nations, without this export being detrimental to these same nations.

In a word, Germany must increase her exports, not in manufactured products, but in raw materials and in products demanded by the Allied and Associated nations.

These various points being taken into consideration, what regime can be adopted to restore freedom of trade to the world as soon as possible?

1. Concerning the precautions to be taken for the liberated regions, Germany must insure by priority the manufacture of machinery of all sorts that may be demanded from her for the restoration of the liberated regions.

Let us not forget, in fact, that the various Allied nations have promised a priority in their own countries for the manufactures necessary for the restitution of these unfortunate regions, but if there is anyone on whom it ought to be imposed, it is Germany.

The industrials whose factories have been demolished—and systematically demolished by Germany—in order to suppress their competition in the world markets for a certain time, must have a right of priority to acquire from Germany a quantity corresponding to that which their factories could produce before the war for the purpose of exporting it themselves to the world markets.

These are the two questions which must be satisfactorily solved, if we do not wish to sacrifice the legitimate interests of the devastated regions. Their application may appear difficult, but the difficulties are not insurmountable, since we are determined to avoid exaggeration in applying them. And these difficulties will never be so great as those which will face the unfortunate inhabitants of the devastated regions in the task of restoring their factories and their homes.

2. As to the raw materials acquired by the Allied nations, at prices higher than those prevailing at present, a list must be furnished at once by the various nations.

Germany shall be required to take over the surplus above the normal stock of each nation, without going above her own normal stock. For example, for the copper which was bought at about 4.50 francs per kilog by the Allied nations, and which to-day is worth about 2 francs per kilog., the Allied nations will have to keep their normal stock at the price of acquisition. The surplus above the normal stock must be taken over by Germany in dollars at the price of acquisition, without obliging her to take a quantity above her normal pro rata in comparison with the other nations.

3. As to the raw materials, which were the object of the warmest discussions between Germany and the other nations before the war, it seems that direct agreements may be brought about soon, like those in course at Cologne at the present moment, for instance; they must be definitely settled before commercial competition can be reopened in a fair and honest manner.

On the other hand, we must try to give to Germany the means of existence for her industries, and France intends, if she has all the necessary compensations, to guarantee to Germany the ore necessary to her metallurgic industry.

These are the general outlines of the questions to be solved; obviously certain of them cannot be settled without discussing them with Germany, but the policy of the Allied nations must be to come to a clear understanding among themselves before opening the discussion of these important questions with Germany.

• Clémentel
• Loucheur

April 1, 1919.

Appendix 83

10 April, 1919.

[Report From the Director General of Relief Regarding Relief Measures Effected During March 1919]

Review of Relief Measures Effected by the United States, Great Britain, France and Italy During the Month of March Through Co-ordination of the Supreme Economic Council

The following table shows the total movement of relief supplies during the month:

(Metric Tons.)

	Cereals	Rice	Peas & Beans	Fats & Meat	C. Milk	Clothing	Misc.	Total
“Reserve” Port Stocks,March 10	158,075	2,845	6,769	19,465	6,922	2,591	8,900	205,567
Supplies during March	259,693	16,250	5,822	51,862	2,577	3,913	19,015	359,132
Total available supplies	417,768	19,095	12,591	71,327	9,509	6,504	27,915	564,709
“Reserve” Port Stocks,April 1	101,525 J	6,453	4,538	37,151	5,387	2,021	19,593	176,668
Distribution during Mar	316,243	12,642	8,053	34,176	4,122	4,483	8,322	388,041

The total value of supplies distributed during the month was approximately $111,280,000 of which all but about $3,350,000 was furnished on a basis of deferred payment.

Poland.

The Supplies distributed were:

Breadstuffs	35,715,000	kilos.
Fats	13,902,000	“
Condensed Milk	1,668,000	“
Gift Clothing	460,000	“
Total	51,745,000s	“

The arrangements for shipment through Dantzig under the terms of the Armistice have proceeded with great smoothness and dispatch of as high as 4,500 tons a day by rail from Dantzig to Warsaw have been reached. All the sections of critical famine condition are now under successful relief.

Finland.

During the month the arrivals in Finland were as follows:

Breadstuffs	25,414,000	kilos
Peas and Beans	127,000	“
Fats	753,000	“
Condensed Milk	50,000	“
Total	26,344,000	“

Above 10,000 tons of these supplies were furnished under replacement agreements with Northern Neutrals. Distribution is gradually spreading into outlying points, and the straw bread formerly in use is rapidly disappearing. Some difficulties have been met from ice and mines, one ship having been lost and another badly crushed.

Baltic States.

Preliminary measures for the establishment of regular supplies to the coastal areas in the Baltic States have been undertaken.

2,750,000 kilos breadstuffs were actually delivered during the month.

Czecho-Slovakia.

The following amounts of overseas foodstuffs were delivered into Czecho-Slovakia during the month:

Breadstuffs	26,280,000	kilos
Peas and Beans	283,000	“
Fats	2,429,000	“
Condensed Milk	463,000	“
Miscellaneous	456,000	“
Total	29,911,000	“

Distribution has been less during the month than was hoped for owing to difficulties of railway transportation from the Adriatic. As a further security to regularity of supplies, arrangements have been made for shipment through Hamburg via the Elbe into Bohemia. The first shipments from Hamburg were dispatched on the third of April.

German-Austria.

The total deliveries from Allied sources during the month of March were:

Breadstuffs	32,951,000	kilos
Peas and Beans	68,000	“
Rice	4,138,000	“
Fats	240,000	“
Condensed Milk	759,000	“
Total	38,156,000	“

Supplies amounting to about 10,000 tons were also made under replacement arrangements from neighboring countries. German-Austria suffered also during the month from difficulties of railway transportation from the Adriatic, but the situation is rapidly improving. The difficulties in financing supplies for this state have been overcome by the joint action of the four governments. The situation at Vienna is extremely bad and measures have been taken to increase the arrivals to 2,000,000 kilos per diem, if transportation permits.

Greater Serbia.

The relief of the entire area of Jugo-Slavia, Montenegro and Serbia is conducted as a single unit. The total distribution during the month amounted to:

Breadstuffs	28,922,000	kilos
Fats	5,000,000	“
Total	33,922,000	“

Surplus of supplies existing in the Banat and Northern counties of Jugo-Slavia have so far enabled the relief of the interior section of this area to be accomplished without heavy shipments far inland.

Roumania.

The total deliveries during the month were 26,967,000 kilos of bread-stuffs. The inland transportation owing to ice in the Danube and the reduction in railway rolling stock from about 1,000 locomotives under pre-war conditions to only 100 actually in use during the month rendered adequate distribution impossible. Again, by the energetic co-operation of all the Allied Governments, this situation is in course of remedy, and supplies during the month of April from overseas should show considerable improvement.

Turkey.

2,298,000 kilos of foodstuffs have been distributed during the month in Constantinople. In addition further supplies are being distributed inland by the military authorities, but again inland transportation conditions make any relief extremely unsatisfactory.

Armenia.

There were supplies from the Relief Administration 4,521,000 kilos of breadstuffs, and 731,000 kilos condensed milk. In addition to these, three shiploads of food, clothing and medical supplies have been delivered for the Far Eastern Belief Commission. Again, the difficulties of inland transportation render assistance extremely difficult.

Belgium.

The following supplies were delivered during the month:

Breadstuffs	113,173,000	kilos
Peas and Beans	7,575,000	“
Rice	8,382,000	“
Fats	9,230,000	“
Clothing	3,710,000	“
Misc. Food	3,534,000	“
Total	145,604,000	“

The energetic development of the Belgian Food Ministry has rendered it possible for the government to undertake at an early date her own purchase of supplies and transportation; although, of course, Belgium must continue to receive financial and tonnage support from the Associated Governments.

Northern France.

The progressive resumption of the ravitaillement of the occupied regions by the French Food Ministry has proceeded so far as to render it possible to gradually withdraw the relief measures which have been continuous over four and a half years and such withdrawal should be complete by the first of May. During the month of March, a total of 6,906,000 kilos of foodstuffs and clothing were delivered into devastated areas.

Germany.

The financial, tonnage and food arrangements were completed at Brussels on March 14th. The first German ships arrived at Allied ports about March 22nd, and on March 25th foodstuffs were actually delivered inside German territory, consisting of:

Breadstuffs	6,787,000	kilos
Fats	743,000	“

The available supplies from all quarters should permit the import into Germany of approximately 200,000,000 kilos during the month of April.

Other Areas.

Relief has been inaugurated in further directions including Bulgaria, Russian prisoners in Germany, refugees from South Russia, etc., the quantitative results of which will be included in April returns.

Organization.

A great deal of progress has been made during the month in the organization of the Allied Food Missions, in the various countries under relief, and the very complex port, railway, and distribution administrations have been greatly advanced by the co-operation of the Associated Governments and the countries under relief.

Under action taken by the Supreme War Council on March 10th, authority was given the Director General of Relief, acting through the Communication Section of the Economic Council, over railway movements in the old Austrian Empire. The improvements have been marked, as evidenced by the fact that the average railway shipments from Trieste for the first fifteen days of March average less than 600 tons per diem, whereas they have averaged over 2,500 per diem during the ten days ending April 5th.

Considerable [work] has been accomplished during the month in the exchange of supplies between various States in Central Europe, whose political and economic relations require friendly intervention to secure necessary exchanges. These measures will proceed on an increasing scale in the future.

Child Feeding.

In order to cope with the very large amount of malnutrition in the liberated areas of Central and Eastern Europe, plans are under way involving medical examination of the children of the poor and provision for the regular and systematic feeding from special canteens. These measures will involve the direct care of between 500,000 and 1,000,000 children. The large expenditure involved places such wholesale measures beyond the capacities of the various charitable associations and bodies operating in Europe. It is felt that if child life is to be preserved it can only be done by large and systematic measures of this character. Some subventions have been arranged from some of the Associated Governments added to by the local Governments concerned.

During March this work was initiated in Finland, Poland and Roumania, and it is hoped that during the month of April it will be established generally over the liberated countries. It is hoped that charitable support to relief in Europe can be directed into these channels as the financial burden will be of very large dimensions.

General.

It has been solely due to the co-operation of the Food, Financial, and Transportation officials of the eighteen Governments involved that these results have been possible.

[

Herbert Hoover

]

Approximate Origin of Finance and Shipping for Relief Supplies Delivered in March 1919

	Value in Dollars
	Finance on Credit	Paid for in Cash	Tonnage Provided by
America	$97,154,296	$2,062,464	270,649
British Empire	463,742	104,715	34,889
France	41,886
Italy
Joint Al. Fin.	10,270,213
Neutrals		1,182,934	6,348
Belgium			33,500
Unknown			42,655
Total	$107,930,137	$3,350,113	388,041

Approximate Amount of Supplies Distributed in March Under Supervision of the Director General of Relief

(Metric Tons)

	Breadstuffs	Beans and Peas	Rice	Fats	Milk	Clothing	Miscel.	Total
Poland	35,715			13,902	1,668	460	7	51,752
Finland	35,414	127		753	50			36,344
Esthonia, Aaland Island, Murmansk	650							650
Russian Prisoners	779			1,050			220	2,049
Germany	6,787			743				7,530
Czechs	26,280	283		2,429	463		456	29,911
Greater Serbia	28,922			5,000				33,922
Roumania	26,967							26,967
Turkey	2,998							2,998
Armenia	4,521				731			5,252
German Austria	32,951	68	4,138	240	759			38,156
Belgium	113,173	7,575	8,382	9,230	3	3,710	3,531	145,604
Northern France	1,086		122	829	448	313	4,108	6,906
Total	316,243	8,053	12,642	34,176	4,122	4,483	8,322	388,041

Appendix 84

Report From the Wheat Executive Regarding the Relief Programme for May Arrival

In accordance with the decision of the Supreme Economic Council at their meeting on 7th April, the Wheat Executive discussed with the Director General of Relief the question of reducing the Allied importation programme of cereals for May delivery so that sufficient supplies of foodstuffs could be made available for relief.

As a result of their discussion the following proposals were adopted subject to the concurrence of the British Ministry of Shipping and the relevant financial authorities:—

(1) That 50,000 tons of named British tonnage from N. America at present on the United Kingdom May arrival programme should be allocated immediately for relief purposes.

(2) That the second 50,000 tons should be found from the 90,000 tons of Austrian tonnage which Prof. Attolico understood would make May arrival. This 50,000 tons should be allocated to relief, subject to the replacement in June of the 48,000 tons of Austrian tonnage allocated to Italy in replacement of the flour shipped to Vienna.

Failing the provision of 50,000 tons of Austrian tonnage making May arrival Lord Crawford undertook to use his best endeavours to provide the balance of the 100,000 tons required for relief from British tonnage.

Mr. Hoover suggested:—

(a) The following division of the first 50,000 tons to be provided by the United Kingdom:

Roumania	15,000	tons
Germany (port of delivery Rotterdam)	35,000	“

(b) That the wheat for Roumania should be paid for out of the Canadian loan and that the freight should be financed either by Canada or from the British Relief Fund.

(c)

(c) That the Austrian tonnage should be directed to the Adriatic for relief.

Agreed.

Commendatore Attolico stated that he would endeavour to arrange for the freight on Austrian ships to be financed by his Government, and he undertook to report the result of his negotiations to Mr. Hoover.

12 April, 1919.

Appendix 85

Memorandum From the Food Section for Consideration by the Supreme Economic Council [Regarding] the Situation in Latvia, Lithuania and Esthonia

The Food Section are receiving appeals of increasing urgency from the Governments of Lithuania, Latvia and Esthonia, and from Allied representatives accredited to them. They are unable to deal with these appeals until the following questions are answered:—

1. Is it intended to support the existence of independent Governments in Lithuania, Latvia and Esthonia?

2. If so, would a decision to support them be affected if any or all of these States made an agreement with the Bolshevik Government by which their territorial integrity and independence were guaranteed?

3. Is it agreed that any one or all of the Associated Powers should, in the exercise of such responsibility, help these Governments by all the means in their power—financial, material and advisory—short of the despatch of Allied troops?

4. Is any one of the Associated Powers prepared to make any or all of them a loan or to open credits for them?

5. Shall the Food Section assume that the effective occupation of Latvia and Lithuania by German troops will continue until harvest?

6. Is it desired to give moral and material support by means of food supplies and relief to the “White Russian” forces in Esthonia, either,

(a) for the maintenance of Esthonian independence, or,

(b) for a possible attack upon the existing Bussian Government?

7. What line do the Allies regard as a proper frontier for the allocation of food supplies as between Poland and Lithuania?

[April 11, 1919.]

Appendix 86

[Memorandum by the American Delegation Regarding the Reorganization of the Commissions Dealing With German Economic Problems]

With reference to the proposed scheme for reorganising the Commissions and authorities dealing with the German economic problem,² the American Delegation desires to offer the following suggestions:—

Recommendation 3, paragraph 5:

In view of the American Delegation it is essential that it should be quite clearly understood that the full responsibility for all measures dealing with the economic life of the Rhineland, within the limits of any general policy that may be laid down by the Council of Four, rests on the Supreme Economic Council and not on the military authorities. The Inter-Allied Commission, therefore, should be responsible solely to the Supreme Economic Council and should report solely to it, it being clearly understood that matters of a military nature will be referred by it to the High Command to be dealt with. Any matters of a political nature will be referred to the sub-committee in Paris for transmission to the Supreme Economic Council or to the proper departments of the several Governments interested as they may be hereafter instructed, it being clearly understood that the Rhineland Committee will take no action with reference to either military or political matters except that of referring the questions to the respective military or civil authorities having to deal with those problems.

It is recommended that the Rhineland Committee be transferred to Cologne as being more centrally located when dealing with economic and industrial problems in the occupied territory.

Monsieur Tirard, if Chairman of the Commission, should be responsible to the Supreme Economic Council and would cease to have any responsibility to the High Command.

Recommendation 5:

It is the view of the American Delegation that inasmuch as this Rhineland Committee is established only for the armistice period it will be unnecessary to set up the several sub-committees referred to, which would to a considerable extent duplicate work now in charge of committees covering the several subjects, [it] therefore suggests as a substitute for recommendation 5, the following:—

“The Rhineland Committee will cooperate with the several committees now established on the questions of finance, food, raw materials, etc.”

Recommendation 9:

The Sub-Committee on Germany should be given power without reference to the Council to settle matters which can be dealt with within the policies laid down by the separate Sections or which are referred to it by the Sections for a decision.

Appendix 87³

Memorandum From the French Delegates Embodying Suggestions for the Reorganisation of the Commissions Dealing With German Economic Problems

It is decided that a Committee is to be formed with a view—

1. To co-ordinate the work of the various Commissions and Sections of the Supreme Economic Council to whom has been entrusted the application of the Brussels Agreement and other agreements concerned with the provision of foodstuffs to Germany.

2. To centralise all communications received from and sent to Germany in connection with the above work.

3. To group for the Council all questions bearing on subject mentioned in 1; and in general, to see that the necessary decisions are taken, if necessary, between the meetings of the Council by the various Governments.

4. With the view of giving unity to the transaction entered into by the Associated and Allied Powers in Germany, in connection with the provision of foodstuffs to Germany, it is agreed that the German Government shall be requested to send to a place to be designated in the near neighbourhood of Paris technical experts of food, shipping, finance, raw material, communications.

These delegates to be entrusted by Government with full power to decide on all questions arising out of the provision of foodstuffs to Germany.

All the necessary facilities to enable the business to be carried out will have to be provided.

April 12, 1919.

1. Translation is filed separately under Paris Peace Conf. 180.0501/34.
2. See appendix 77, p. 147.
3. Appendix 87 is filed separately under Paris Peace Conf. 180.0501/34.