Paris Peace Conf. 180.0501/23
Supreme Economic Council: Twenty-third Meeting Held at the Ministry of
Commerce on 16th June, 1919, at 3 p.m.
June 16, 1919,
3 p.m.
The Supreme Economic Council held its Twenty-Third Meeting on Monday,
16th June, 1919 at 3 p.m. under the Chairmanship of Monsieur
Clémentel.
The Associated Governments were represented as follows:—
| United Kingdom: |
Sir Wm. Mitchell Thomson, |
|
Sir Wm. Goode, |
|
Mr. Barrie. |
| United States: |
Mr. Hoover, |
|
Mr. McCormick (part time) |
|
Mr. Gordon, |
|
Mr. L. L. Summers. |
| France: |
M. Claveille, |
|
M. Seydoux. |
| Italy: |
Commendatore Attolico, |
|
Captain Lazzerini. |
| Belgium: |
M. Jaspar, |
|
M. de Cartier de Marchienne. |
214.
The Minutes of the Twenty-Second Meeting were approved subject to the
addition of the following paragraph to Minute 205:—
“They explained, however, that some negotiations had been taking
place, with the full knowledge of the Food Section, for the
provision of foodstuffs for delivery as soon as the blockade was
removed.”
With further reference to Minute 205, the Italian Delegates reported that
Baron Sonnino was himself making enquiries regarding the reports of the
passage of commodities from the Adriatic to Hungarian Bolsheviks.
215. Italian Coal Situation.
With reference to Minute 204 the Italian Delegates reported a meeting
between the French and Italian Representatives when the French had
agreed to submit as soon as possible definite proposals regarding the
supply of German coal to Italy for a period of six months after
Peace.
216. Work and Organisation of the
Council.
With reference to Minute 207, it was agreed that the next Meeting of the
Committee on Policy appointed by the Council at the Twenty
[Page 364]
first Meeting should be held
on Saturday 21st June at 3 p.m. at the Ministry of Commerce.
217. Re-Imposition of the Blockade on
Germany.
A Note (193) recording the decisions of the Council of Heads of States
regarding the preparation to be made for the re-imposition of the
blockade on Germany should the occasion arise, and a draft Minute from
the Blockade Section (194) regarding the administration of these
blockade measures, were submitted.
The American Delegates stated that they desired, on behalf of their
Representative on the Blockade Section who was unable to be present, to
make a reservation regarding the Minute of the Blockade Section which,
in its present form, the American Delegates were unable to accept.
The British Delegate on the Blockade Section pointed out that, in his
view, it would be impossible for the executive conduct of the Blockade,
so far as the Northern Neutrals were concerned, to be carried on except
by the Allied Blockade Committee in London.
The Council noted the resolution and referred it back to the Blockade
Section to give the American Delegates an opportunity of setting forth
any alterations in the text which they desired to recommend.
218. Private Trade Relations With
Germany.
A Note from the Sub-Committee on Germany (195) suggesting that the
competent authorities of each of the Allied and Associated Governments
should decide and communicate to the other Governments whether or not
they would permit their nationals to resume trade relations with Germany
within the limits allowed by the Blockade was submitted and
approved.
219. Finance of German Coal.
Owing to the unavoidable absence of certain of the French Delegates, and
the impossibility of arranging a special Meeting of the Council during
the week, it was agreed that all discussions regarding the financing of
German coal supplied to the Allies should be postponed until the next
Meeting of the Council.
220. Finance of Austrian Food
Supplies.
With reference to Minute 209 certain decisions reached at a joint Meeting
of the Finance Section and the Committee of the Food Section held on
14th June (196) regarding the application of the loans already made by
the United States Treasury to the United Kingdom, France and Italy for
the supply of foodstuffs to German Austria and the contemplated
provision of a further loan for the same purpose, were reported and
approved.
The French Delegates stated that they had already requested their
Government to agree to the increase of the balance of the revolving
[Page 365]
fund referred to in Minute 209
from 100 million to 120 million francs and that they anticipated that
the matter would be satisfactorily settled in a few days.
221. Export of Gold and Securities
From German Austria.
The British and French Delegates on the Blockade Section referred to
reported shipments of gold and securities from German Austria to Germany
and Hungary and suggested that steps should be taken immediately to
control the export of these commodities from Austria and that the
Blockade Committee at Vienna should undertake this control.
It was agreed:—
- (a)
- that the French Delegate on the Blockade Section should
prepare a cable for despatch to the Blockade Committee at Vienna
informing them that the export of gold and securities from, and
import to, Austria are prohibited except under licence to be
granted by the Blockade Committee;
- (b)
- that the cable should be submitted for approval to the
remaining Delegates on the Blockade Section before
despatch.
222. Cotton for Poland.
A cable received from the Representative of the American Relief
Administration at Hamburg on 12th June (197) reporting that the German
Government were unwilling to allow the shipment of cotton to Poland
through Dantzig unless they were acceded a portion of the cotton was
submitted and deferred for consideration at the next Meeting of the
Council, if necessary.
223. Allied Economic Policy in
Russia.
With reference to Minute 212 a note from the Food Section dated 14th June
(198) was submitted and deferred for detailed consideration pending the
receipt of reports from the other Sections.
Appendix 1931
Decision of the Council of the
Principal Allied and Associated Powers at a Meeting Held on the
13th June, 1919 [Regarding] Reimposition of the Blockade2
The Council of the Principal Allied and Associated Powers have
considered the note of the Superior Blockade Council, dated the 11th
June, 1919 (attached).
They have decided that the Blockade Council should make every
preparation for the reimposition of the blockade, but that its
actual
[Page 366]
enforcement should
not be undertaken, even in the event of the refusal by the Germans
to sign the Treaty of Peace, without a decision from the Council of
the Principal Allied and Associated Powers. No actual threat should
be made public that the blockade is to be reimposed, but, short of
this, steps should be taken to give the public impression that
preparations are in hand. If practicable, these steps should include
the despatch of destroyers to show themselves in the Baltic.
- W. W.
- G. C.
- D. Ll. G.
- S. S.
- N. M.
June 13, 1919.
[Enclosure]
Note To Be Transmitted to the Council of Heads
of States
- 1.
- The Superior Blockade Council have the honour to recall to the
Council of Heads of States that no decision has yet been taken
as to the application of further economic pressure upon Germany
should she refuse to sign the Peace Terms.
- 2.
- The Council venture to point out that while, in accordance
with the instructions of the Council of Heads of States, they
have endeavoured to bring the various parts of the blockade to
the most advanced state of readiness, the whole machine is so
complex that it requires some time to set it actually in
motion.
- 3.
- These preparations have now reached a point beyond which the
Council feel that they are not justified in proceeding so long
as it remains doubtful whether it is intended, in case of
necessity, to make use of the machine or not.
- 4.
- The Council therefore submit, as a matter of urgency, that the
time has now come when the Council of Heads of States should
arrive at a definite decision as to whether it is the intention
to make use of a reinforced blockade as a measure of pressure
upon Germany in the event of a refusal to sign the Peace
Terms.
Appendix 194
[Minute From the Blockade Section
Regarding] Administration of Blockade
Measures in the Event of the Reimposition of Blockade
During the course of the discussion recorded in the foregoing minute,
the question arose as to what body should be made responsible for
the
[Page 367]
administration of
blockade measures if the blockade were to be re-imposed. It appeared
evident to the Council that the Allied Blockade Council are in the
best position to administer all blockade measures affecting northern
neutrals, and the following resolution was accordingly adopted:—
Resolved,
“That, should Germany refuse to sign the terms of Peace, the
Council entrusts to the Allied Blockade Council in the case
of the northern neutrals the duty of taking from time to
time the necessary executive action to give effect to any
decisions arrived at by the Council of Heads of States
regarding the application of further blockade pressure upon
Germany.”
Appendix 195
Note by the Sub-Committee on Germany
Regarding Resumption of Trade Relations With Germany
With reference to the general question of the resumption of private
trade relations with Germany, the Sub-Committee on Germany makes the
following remarks:—
- 1.
- It is a question for the competent authorities of each
Allied and Associated country to decide whether or not they
will permit their nationals to resume trade relations with
Germany within the limits allowed by the blockade.
- 2.
- It is desirable that in the event of any Allied or
Associated country granting this permission to its nationals
the other Allied and Associated countries should be
informed.
Appendix 196
[Decisions Reached
June 14,
1919, at Joint Meeting of Finance Section and the
Committee of the Food Section on the] Finance of Austrian Food Supplies
At a joint meeting of the Finance Section and Committee of the Food
Section, held on the 14th June, the following decisions were
reached:—
- 1.
- American Treasury advances of 15,000,000 dollars each to
Italy, France and England are solely for dollar purchases
and expenditures in provision of food for German
Austria.
- 2.
- Mr. Davis will recommend an additional advance of
1,000,000 dollars to each of the three Allied Governments,
which the Relief Department estimates will be required to
complete programme to harvest in addition to supplies from
the Banat.
- 3.
- The supplementary expenditure, which is non-dollar
expenditure, on transport, &c., shall be borne equally
by France, Italy, and England.
- 4.
- The programme attached shall be loaded by the Wheat
Executive, and an adjustment of all accounts between the
three Governments shall be made on completion of this
programme.
[Enclosure]
German Austria: Expected Arrivals to
July 31, 1919
| Steamships |
Tonnage |
Value f. o. b. New York |
Estimated Operating Cost ex-Austrian Steamers |
Total |
|
Tons |
Dollars |
Dollars |
Dollars |
| Africana |
4,689 |
431,388 |
70,335 |
501,723 |
| Szenternetzi |
4,169 |
463,430 |
62,535 |
525,965 |
| Dubac |
4,077 |
453,393 |
61,155 |
514,548 |
| Maria Immaculata |
4,909 |
603,260 |
73,635 |
676,895 |
| Adriatica |
4,939 |
567,635 |
74,085 |
641,720 |
| Cat. Goromomich |
6,623 |
649,268 |
99,345 |
748,613 |
| Kossuth Ferencz |
6,500 |
822,250 |
97,500 |
919,750 |
| La pad |
3,600 |
442,750 |
52,500 |
495,250 |
| Graf Tisza Istvan |
3,600 |
455,400 |
54,000 |
509,400 |
| Atlantica |
4,600 |
569,250 |
67,500 |
636,750 |
| Radium |
4,600 |
569,250 |
67,500 |
636,750 |
| Dardania |
4,700 |
594,550 |
70,500 |
665,050 |
| Irvor |
6,600 |
708,400 |
84,000 |
792,400 |
| Emilia |
5,000 |
632,500 |
75,000 |
707,500 |
| Graf Hedervrav |
6,000 |
759,000 |
90,000 |
849,000 |
| Istiva |
5,600 |
695,750 |
82,500 |
778,250 |
| Georgia |
8,000 |
1,012,000 |
120,000 |
1,132,000 |
| Ellenia |
7,300 |
923,450 |
109,500 |
1,032,950 |
| Boéme |
6,500 |
822,250 |
97,500 |
919,750 |
| Marianne |
5,400 |
683,100 |
81,000 |
764,000 |
| Clumechan |
5,200 |
657,800 |
78,000 |
735,800 |
| Iskra |
6,050 |
765,325 |
90,750 |
856,073 |
| Grand total |
117,256 |
14,281,399 |
1,758,840 |
16,040,137 |
Appendix 197
[Telegram From the American Belief
Administration at Hamburg Regarding Shipments of] Cotton for Poland
The following telegram from Colonel Coombs, American Belief
Administration Representative at Hamburg, was received on the 12th
June:—
“German Government not willing to allow shipment of cotton to
Poland through Danzig unless they get portion. Their idea is
10 per cent., to cover transportation charges and as payment
for privilege of passage through this country.
Coombs.”
Appendix 198
Report From the Food Section
[Regarding] Allied
Economic Policy in Russia
In accordance with instructions received from the Supreme Economic
Council, the Food Section at the sixteenth meeting held on
[Page 369]
the 11th June considered
what measures might be necessary as regards food supplies to Russia
in the event of a decision to include Russia in the sphere of
operations of the Supreme Economic Council.
It was decided that should commercial relations with the whole of Old
Russia be re-established it would be impracticable, because of the
limited transportation facilities from the ports inland, to
endeavour to execute a programme in excess of 100 thousand tons a
month, amounting to an expenditure of approximately 150 million
dollars a year.
The Food Section desire to point out, however, that should it be
possible materially to improve the railroad facilities in Russia, a
much larger quantity of the food supplies in the interior could be
made available for the districts nearer the coast, and the need for
supplies to be imported by sea would thereby be correspondingly
decreased.
