Paris Peace Conf. 180.0501/18

Supreme Economic Council: Special [Eighteenth] Meeting Held at the Ministry of Commerce [on 13th May, 1919, at 12 Noon]

The Supreme Economic Council held its Eighteenth Meeting at the Ministry of Commerce on Tuesday, 13th May, 1919, at 12 noon under the Chairmanship of Lord Robert Cecil.

The Associated Governments were represented as follows:—

United Kingdom. Sir Wm. Mitchell Thomson.
United States. Mr. McCormick.
Mr. Norman Davis.
France. M. Clémentel.
M. Loucheur.
Italy. Signor Crespi.
Prof. Attolico.
Belgium. M. de Cartier de Marchienne.

158. Prohibition and Pre-emption Lists.

The resolution (127)1 suggesting that the Allied and Associated Governments should waive their right of pre-emption, except as regards dyestuffs and coal, under the terms of the telegram of 24th March was again considered.

The French Delegates stated that their Government considered it undesirable for political reasons, and in view of the negotiations now proceeding with the German Delegates at Versailles, to take any action which would appear to indicate that the Allied and Associated Governments were prepared to grant any further relaxations to Germany pending the signing of the Preliminaries of Peace.

After some discussion it was agreed:—

(a)
that the existing privileges which Germany now has permitting the free export over her land frontiers of commodities other than gold, silver securities and war materials of all kinds, should be retained;
(b)
that Germany should be permitted to export to neutrals by sea and without restriction one-third of the balance of her exportable surplus of any of the commodities on the pre-emption list;
(c)
that the Allied and Associated Governments should have absolute right of purchase at fair and equitable prices over the remaining two-thirds of the balance of the exportable surplus of any of the commodities on the pre-emption list;
(d)
that the prices at which such purchases are to be made should be fixed by the representatives of the Allied and Associated Governments on the Council of their experts;
(e)
that the German Government should be notified accordingly.

The Delegates on the Blockade Section pointed out that unless a system of export licences were enforced they feared it would be impossible to keep any adequate check or control on the exports from Germany authorised by the above decision and it would rest with the German Government to ensure that goods were not exported in violation of these rules.

159. Relations With Germany.

With reference to Minute 150 a draft statement setting out the present position with regard to the Blockade of Germany was submitted, amended and approved.

It was agreed that the statement as amended (140) should be transmitted to the Council of Heads of States for approval and subsequent publication.2

Appendix 1403

[Statement for Submission to the Council of Heads of States Concerning] the Present Position With Regard to the Blockade of Germany

The Supreme Council of the Principal Allied and Associated Governments have authorised the following statement as to the present position of the blockade against Germany. Arrangements have been made to remove the blockade against Germany immediately and completely as soon as the German representatives have signed the Treaty of Peace.

In the meantime the following temporary relaxations have already been made for the duration of the Armistice:—

1.
Foodstuffs.—The import of foodstuffs into Germany is now free within the limits of a monthly ration of 300,000 tons of cereals and 70,000 tons of fats. Foodstuffs within the ration may be exported to Germany without formality from any country which is prepared to allow the export to her. Fish imported from the neutral countries contiguous to Germany does not count within the ration. Since the 25th March, 1919, the quantity of foodstuffs delivered in Germany by the Associated and Allied Governments has amounted to about 400,000 tons. In effect Germany is now free to import all the food for which she can pay.
2.
Exports.—Exports of gold, silver, securities and war material are prohibited. Other exports over land frontiers are free. As to overseas exports, the Allied and Associated Governments have retained certain rights of pre-emption over coal, dyestuffs, and certain other commodities. Other articles can be exported freely to any country prepared to accept them.
3.
Black Lists.—All black lists of firms and persons in neutral countries have been withdrawn, and all disabilities attaching to trade and communications with such firms and persons have ceased to operate.
4.
Communications.—Commercial correspondence with regard to the export and import trade of the character indicated above is permitted, subject to certain regulations which have been accepted by the German Government and to the enemy trading laws of the belligerent countries.
5.
Fishing Area.—The area open to German fishing craft has been largely extended. A quantity of net thread, &c., for repair of nets has been allowed to proceed from Holland in accordance with a request of the German Government.
6.
Exports from the Allied and Associated Countries to the Countries Contiguous to Germany.—There is a free list of articles which may now be exported without licence or other formality. In the case of other articles (except where a control has been retained for domestic reasons) the rules as to the obtaining of licences and guarantees have already been largely relaxed. Export will be further freed from formalities if a general guarantee is given by the Governments of the neutral countries concerned that they will prevent re-export of such imported articles to Germany without the consent of the Associated Governments.
7.
Raw Materials.—Permission has been given for the import of raw materials urgently required for use in the German coal mines. Arrangements are being made for the early shipment of these supplies, subject to the necessary finance being forthcoming.
The principal difficulty with regard to the import of raw materials is the financial one. In order to obviate this difficulty as far as possible, the Supreme Economic Council has approved a plan whereby Germany may be permitted to import rations of raw materials for the urgent needs of the coal-mining and other essential industries, in so far as these requirements can be met from German-owned stocks in neutral countries.

  1. Ante, p. 241.
  2. See CF–12, vol. v, p. 599.
  3. Appendix 140 is filed separately under Paris Peace Conf. 180.0501/34.