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

Paris Peace Conf. 180.0501/31

Supreme Economic Council: 31st Meeting [Held at Rome on 21st November, 1919, at 3 p.m., 22d November at 10 a.m. and 3 p.m., and 23d November at 11 a.m.]

Rome, November 21, 1919, 3 p.m.; November 22, 1919, 10 a.m. and 3 p.m.; November 23, 1919, 11 a.m.

The Supreme Economic Council held its 31st Meeting on the 21st November at 3 p.m., the 22nd November at 10 a. m. and 3 p.m., and the 23rd November at 11 a. m. at the Palazzo Corsini at Rome under the Chairmanship of Sig. Dante Ferraris.

The Associated Governments were represented as follows:—

British Empire.	Mr. G. H. Roberts
	The Earl of Crawford & Balcarres.
	Mr. Cecil Harmsworth.
France.	M. Noulens.
	M. Vilgrain.
	M. Sergent.
Italy.	Sig. Schanzer.
	Sig. Murialdi (part time).
	Sig. Maggiorino Ferraris (part time)
	Comm. Volpi.
	Sig. Pirelli.
	Sig. Salvatore Orlando.
Belgium.	M. Theunis.
	M. Bemelmans.

Permanent Committee

British Empire:	Mr. E. F. Wise.
France.	M. Avenol.
Italy.	Dr. Giannini.
Belgium.	Comte de Kerchove.
U. S. A. were not represented.

319.

M. Noulens opened the Session and excused the absence of M. Clémentel. He thanked the Italian Government for their invitation to the Allies to hold a meeting in Rome and proposed that Sig. Dante Ferraris should take the Chair.

On behalf of the British Delegation, Mr. Roberts and Lord Crawford associated themselves warmly with the proposal of M. Noulens and expressed the deep regret of the British Delegation at the temporary loss to the Council of M. Clémentel’s wide experience and sympathetic insight.

M. Ferraris, on taking the Chair, associated himself with the remarks concerning the regrettable absence of M. Clémentel. In view of the fact that the economic situation in Europe was still difficult, he hoped that the Council might continue to meet until such time as it could hand over to the League of Nations the economic reconstruction of the World. On the proposition of the Chairman, it was agreed to despatch a telegram to Lord Robert Cecil, Mr. Hoover, M. Clémentel, M. Jaspar and M. Crespi, thanking them in the name of the Council for the work which they had jointly carried through in the common interest of Europe (Doc. No. 293).

The minutes of the 30th meeting were approved.

320. Resumption of Communications With Germany.

With reference to minute 300, the Council noted that the re-establishment of direct train services to Germany had been effected. Great difficulties were still experienced in the resumption of international through services over German metals, chiefly caused by the delay in the ratification of the Peace Treaty.

321. Motion Regarding Execution of the Treaty.

The Italian Delegation proposed that in view of the fact that other economic questions were similarly in abeyance, owing to the delay in ratification, the following resolution should be submitted to the Supreme Council.

“The Supreme Economic Council thinks it its duty to draw the attention of the Supreme Council to the ever increasing danger to the economic situation of all the Allied countries arising out of the delay in the exchange of ratifications of the Treaty of Peace.”

This was agreed.

322. Traffic on the Danube.

With reference to minute 307, the Council took note of a decision of the Supreme Council¹ whereby Colonel Logan and M. Clémentel were to discuss the nomination of the American Arbitrator who, according to the Peace Treaty, was to decide the ownership of contested river shipping.

It was mentioned that as a result of this discussion a telegram had been sent by Colonel Logan to the U. S. Government, suggesting the appointment of General Conner to act as Arbitrator under clause 339 of the Treaty with Germany, but that no reply had yet been received.^1a

It was also stated that the present limiting factor of the traffic on the Danube was the lack of coal.

The Council agreed that every effort should be made during the winter months to prepare for a substantial improvement in the movement on the river in the Spring.

323. Supply of Raw Materials to Europe.

Referring to minute 312, the French Delegation asked if any further statements could be made on the matter.

The Belgian Delegation stated that in respect of the proposed negotiations with Germany and Austria regarding the 2nd resolution under minute 312, it had not been possible to make any progress. In view of the fact that even in questions of greater importance, such as coal, governed by specific Treaty stipulations it had been found difficult or impossible to make any progress, the Organisation Committee of the Reparation Commission had considered it expedient to take no further action for the moment to obtain flax from Germany and Austria. The dilatory tactics in this and other matters displayed by the German Government were to a large extent facilitated by the delay in the ratification of the Peace Treaty.

As regards resolution No. 4. submitted by the French and Italian Delegations as reported in minute 312, the British Delegation pointed out that the words: “Specific measures of discrimination” used in the resolution, seemed to imply that there was some misunderstanding as to the exact purport of the present British regime for the prices of British coal for export and for inland consumption.

Under this system, there could be no questions of discrimination against France or Italy. It was the agreed policy of the British Government to control the home price in order to secure that heat, light, power and transport should be available at reasonable prices and in sufficient quantities. That policy entailed at present a heavy burden on the British taxpayer. Over a period of sixteen months the cost to the Exchequer had been 26 million sterling and even if the recent improvement in output were maintained, it would take time appreciably to lighten the accrued deficit. In fact, the policy of the British amounted to a coal subsidy.

If the British Government were to change its domestic price policy, the result would be not that export prices would be reduced, but that domestic prices would be increased up to the level of the world price charged for exported coal.

In this connection, the British Delegation pointed out that the export of British coal to British coal stations abroad for bunkers was identical with the world price charged for British coal exported to other destinations. There was no question of “discrimination.” If the British Government had discriminated at all, it had done so in favour of France and Italy.

The British Delegation were accordingly not in a position to state that their Government was contemplating any change of policy. The sole remedy for the present disparity of prices must, in their opinion, be sought in increased output not merely in Great Britain, but also in France and in other European coalfields.

The French Delegation, while expressing their appreciation of the points raised by the British Delegation, stated that one of the dangers of the present British system lay in the possibility of its indiscriminate adoption by other countries.

At the request of the French Delegation, the British Delegation undertook that a copy of the remarks of the British Delegation on this subject should be handed to the French Government.

324. General Economic State of Europe.

Arising out of minute 315, the Council noted that the Supreme Council had deferred consideration of a memorandum submitted by the Council to the Supreme Council on the general economic state of Europe (Doc. No. 290).²

In connection with this question the Italian Delegation drew attention to the continued deterioration in the situation of exchange in the various countries of Europe. In their opinion the only practical and permanent solution of the difficulty lay in a general reduction of consumption and increase of production. But the existing situation was so serious as to demand some temporary solution of a more or less artificial character. For this solution they held that only two alternatives presented themselves.—

(1) the re-establishment of Governmental control of exchange either internally or by agreement among the various countries of Europe.

(2) the opening of credits among the various countries.

The French Government expressed doubts whether the first of the two temporary solutions proposed by the Italian Delegation was practical under Peace conditions in view of the considerable interference with personal liberty which it entailed; on the second point they thought that useful precedents could be found in pre-war practices.

After discussion the following resolution was adopted:—

“In view of the extreme urgency of solving the exchange problem and, pending a more complete solution through international cooperation, it is necessary for the moment to treat the question as one between the Allied countries. Each delegation shall draw up a report for its own Government on the financial situation as it has been presented in the present discussion, and shall, before December 20th, submit to the Permanent Committee of the Council practical proposals for a satisfactory solution of the problem, or at least for a substantial improvement in the situation.”

325. Delivery to the Allies of German Tank Steamers.

Arising out of minute 316 the Council took note of a decision of the Supreme Council (Doc. No. 294) of the 17th November,³ according to which:—

1) The German tank steamers in question were to proceed to the Firth of Forth.

2) The 9 steamers claimed by certain American interests were to be retained unused at the Firth of Forth pending a fresh decision of the Supreme Council.

3) The other tank steamers were to be handed over for temporary management to the Allied and Associated Governments.

The Italian Delegation drew the attention of the Council to the urgent oil requirements of those countries which lacked coal, and to the fact that the United States representative on the Supreme Council had, at the request of his French colleagues, agreed to call the attention of his Government to the petrol requirements of France and Italy.

It was agreed to submit the following resolution to the Supreme Council:—^3a

“The Supreme Economic Council having noted the decision of the Supreme Council (HD 94/1) and particularly paragraph 5, expressed the conviction that, in view of the situation of coal and of general production in the whole world, it is necessary that German tank steamers should not remain unused, and asks that immediate measures may be taken to use these steamers for the transport of oils, which would contribute to some extent in relieving the needs of the countries which lack coal.”

326. Report of the Permanent Committee.

The Council noted and approved a report (Doc. No. 295) submitted by the Permanent Committee on its work since September 20th, 1919.

327. Report of the Consultative Food Committee.

a) The Council noted and approved a report (Doc. No. 296) submitted by the Consultative Food Committee on its work since September 20th, 1919, and especially on the establishment and working of Sub-Committees for:—

• Wheat and Flour
• Meat
• Sugar
• Hog Products
• Butter and Cheese.

In reply to a question from the French Delegation the British Delegation stated that the conferences held with the German food experts at Cologne on September 23rd were attended only by British members of the Consultative Food Committee, and that the report forwarded to the Committee on Organisation of the Reparation Commission was a report by the British members.

b) The Council considered a memorandum (Doc. No. 297) by the Consultative Food Committee with reference to—

(1) The competition of Germany in purchasing foodstuffs (see minute 328):

(2) supplies to Austria (see minute 329):

(3) supplies to and from Russia (see minute 335).

The action taken is recorded hereafter.

328. Competition of Germany in Purchasing Foodstuffs.

The Council approved Part 1 of the above mentioned report, the Belgian delegates expressing the view that the Reparation Commission should keep in touch with the Consultative Food Committee on all technical questions arising out of ex-enemy food programmes.

329. Supplies to Austria.

With reference to part 2 of the above mentioned report, the Italian Delegation stated that the Italian Government had, since the Armistice, given all possible assistance to the necessities of Austria, even to such an extent as to involve a reduction in Italian food rations. As regards the immediate necessities of Austria the Italian Government was ready, in agreement with the Allies, to send 30,000 tons of wheat to Austria, contingent on payment being made by means of the balance of the original 48 million dollar loan, and of the Swiss francs at the disposal of the Austrian Government. It was mentioned that the actual availability of the said amounts was being discussed between the Treasuries concerned.

Mr. Harmsworth, on behalf of the British Delegation, expressed his gratification at the information that the Italian Government were ready to take immediate measures to assist Austria. The food situation in Vienna was, at the moment, engaging the most anxious consideration of the British Government, and no doubt of all other Governments represented on the Council as well. There was no ambiguity about that situation. It was a desperate situation, and unless immediate and far-reaching measures of relief were adopted, it might develop into one of the greatest tragedies in the history of the world.

He felt it, however, his duty to quote the words of the British Chancellor of the Exchequer to a deputation which recently laid before him the case of Vienna. The Chancellor, while he expressed his warm sympathy with Vienna, nevertheless pointed out that H. M. Government was not in a position to render by itself any appreciable assistance to the needs of Austria. He could not consent to increase for the British Government alone a burden of indebtedness which could be borne as a part of an inter-allied effort or a world effort.

On a further point, Mr. Harmsworth considered it probable that the general public of Europe, and of Austria in particular, regarded the Supreme Economic Council as a body charged with responsibility for meeting the food requirements of Austria. Speaking generally, Mr. Harmsworth considered that no time should be lost in making known to the world the exact situation in Austria and in pointing out that the Supreme Economic Council had no resources from which it could meet the necessities of Austria.

The Belgian Delegation expressed the view that the final responsibility for meeting the present situation in Austria rested at the present time neither with the Supreme Economic Council nor with the Reparation Commission, but with the Supreme Council which, having referred the whole question to the Allied Treasuries, would have to take a decision.

The French Delegation expressed their entire concurrence in the views expressed by Mr. Harmsworth, but they also were bound to recognise the impossibility of anything definite being accomplished by the Supreme Economic Council. They pointed out that the Supreme Council had on the 15th November reiterated its decision that the Reparation Commission should deal with the question.⁴ The matter could not now move until the various Treasuries had decided what could be done.

The Belgian Delegation concurred in the views of the French Delegation.

The Italian Delegation concurred in the view that the Supreme Economic Council could neither take a decision in the matter nor accept responsibility. The financial situation of Italy was such that she could not do for Austria as much as she would like. She had in the past contributed to the relief of Austria up to and even beyond her resources. They considered that the matter was one for general adjustment in a wider sphere.

In reply to a question from the French Delegation the Italian delegates confirmed the fact that the provision of the 30,000 tons in question was entirely contingent on the acceptance of the financial terms.

After discussion, the following resolution was, at the proposal of the French Delegation, adopted for transmission to the Supreme Council:—^4a

“The Supreme Economic Council had noted the decision of the Supreme Council of the Allies of the 15th November, entrusting to the Organisation Committee of the Reparation Commission the task of studying the problem of the supply of food and raw materials to Austria.

The Supreme Economic Council, which formerly was able by means of a credit granted by Great Britain, France and Italy, with the assistance of the United States, to relieve to some extent the Austrian situation, possesses at the moment neither the powers nor the resources necessary to afford any effective assistance. It can therefore only most earnestly direct the attention of the Supreme Council to the extreme necessity of obtaining some solution calculated to remedy a tragic situation, the prolongation of which is fraught with danger to the security of all the civilised nations of the world.

The Supreme Economic Council has noted the declarations of the British, French, and Italian Treasuries, setting out the impossibility of increasing the financial commitments of the nations which have been exhausted by the war.

In any case, the Council considers that the necessary resources should be furnished not only by the Governments represented on the Supreme Economic Council but by the Governments of all other nations. It suggests that steps should at once be taken to consider the possibility of international action on these lines.”

330. Continuation of Allied Purchasing Arrangements.

The Council noted a memorandum on this question (Doc. No. 298) by the Italian Delegation, proposing the maintenance of the present arrangements for interallied co-operation, especially as regards the Wheat and Flour Sub-Committee, with a view to preventing an increase in the prices of foodstuffs.

The Chairman of the Consultative Food Committee reminded the Council that the Committee had established five Sub-Committees, the termination of whose functions had been originally fixed as follows:—

Wheat and Flour Sub-Committee	31st Dec. 1919.
Meat Sub-Committee	31st March, 1920.
Suger Sub-Committee	31st August, 1919.
Hog Products Sub-Committee	30th June, 1920.
Butter & Cheese Sub-Committee	31st March, 1920.

The Consultative Food Committee itself was nominally to terminate its labours on the 31st December, 1919.

The memorandum of the Italian Delegation had referred primarily to wheat. The British Delegation agreed that the Wheat Sub-Committee should be prolonged. Their Government had decided in principle to abolish the bread subsidy in the early part of the summer of 1920, a good many duties hitherto devolving upon the State would be thereby thrown upon private enterprise. They could not, therefore, undertake to commit their Government to an indefinite prolongation of the Wheat and Flour Sub-Committee. The British Delegation proposed accordingly that the Wheat and Flour Sub-Committee should be continued until the 30th April, 1920, thus affording an opportunity for the Governments concerned to observe the situation.

The Italian Delegation considered it desirable that the Wheat and Flour Sub-Committee should continue at least until the end of the cereal year 1919/1920, both for the reason that an earlier date constituted a national peril, and also because the present purchasing organisation, by stabilising prices, gave some possibility of reducing the risk involved in the abolition of the bread subsidy.

The French Delegation asked that the Wheat and Flour Sub-Committee should be continued until the end of the cereal year 1919/1920. The British Delegation were prepared to agree to this, subject to the reservation of two months’ notice by Great Britain should such a course be rendered necessary.

After discussion, it was agreed:—

That the Consultative Food Committee should be prolonged until the 31st August, 1920, and that the Sub-Committees of the Consultative Food Committee should be continued in operation so long as the Consultative Food Committee held their continuance to be necessary.

331. Future Functions of the Raw Materials Committee.

The Council considered a memorandum by the Permanent Committee (Doc. No. 299) relative to the future functions of its Raw Materials Committee, containing the proposals that the existing Raw Materials Committee should be reconstituted as a Committee on Raw Materials and Statistical Information.

The Council approved the recommendations of the Permanent Committee subject to the observations of the Belgian Delegation that the future functions of the Committee, as laid down in Document No. 299, involved the fusion of the existing Committee charged with the publication of the Statistical Bulletin with the existing Raw Materials Committee.

The Council directed that the new Committee on Raw Materials and Statistical Information should maintain with the Economic Section of the Secretariat of the League of Nations relations similar to those maintained by the former Statistical Committee.

332. Report of the Communications Section.

The Council noted and approved a report (Doc. No. 300) from the Communications Section on the work accomplished by it since September 20th, 1919.

333. Traffic Conditions in Central Europe.

In connection with the above report, the President of the Communications Section further drew the attention of the Council to the following points:—

(1) that the proposal that Great Britain, France and Italy should contribute wagons for the supply of coal to Austria had fallen through.

(2) that an inter-allied meeting had recently been held at Budapest to determine what were the immediate transportation requirements of Hungary. The result of the deliberations of this meeting had been transmitted to Paris by cable. A relatively small number of wagons would be necessary to satisfy the immediate transportation requirements of Hungary.

(3) that, in view of certain insufficiencies in the working of the recently established Interchange Traffic Committee, steps had been taken to convene a meeting of the representatives of the Governments concerned in order to improve the working of exchange of rolling-stock between the countries of Central Europe.

After discussion, the following resolution, proposed by General Mance, was agreed:—

“The Supreme Economic Council approves the formation of a provisional organisation for facilitating the exchange of wagons across the frontiers of Central Europe, and directs the Communications Section to continue the action necessary to bring this about.”

334. Improvement of Postal, Telegraphic & Telephonic Communications Throughout Europe.

a) Black Sea.

The Council considered in this connection:

(a) A note with proposals by the Permanent Committee (Doc. No. 301),

(b) a Memorandum by the Communications Section (Doc. No. 302).

The proposals contained in the above document were approved by the Council and the execution thereof entrusted to the Communications Section.

b) Europe in general.

The President of the Communications Section called the attention of the Council to the considerable difficulties still extant in Europe in respect of postal, telegraphic and telephonic communications, and presented the following resolution, which was approved:—

“The Supreme Economic Council resolves that it is essential for the more rapid reestablishment of economic intercourse that postal, telegraphic and telephonic communications should be improved up to at least their pre-war efficiency with the least possible delay, and that for this purpose a formal conference of the technical officers concerned from each country in Europe should be at once convened.

It further resolves that the Communications Section should be charged with the duty either of convening such conferences or, if more convenient, of seeing that they are convened by one or other of the Governments represented on the Council.”

335. Situation in South Russia.

The Council considered:—

(a) a memorandum by the Consultative Food Committee (Doc. No. 303):

(b) a memorandum by the Communications Section (Doc. No. 304):

(c) an extract from a memorandum (Doc. No. 297) by the Consultative Food Committee (see para. 327.b.).

The French Delegation stated that after a considerable delay, the railway mission detailed to assist in the reconstruction of the Ukraine and Donetz railways had left for Russia. They would give instructions to this mission to study carefully the very interesting reports of the British Military Mission.

In respect of memoranda (a) and (b) the following resolution was agreed:—

“The Supreme Economic Council, realising that certain regions of the old Russian Empire which formerly represented an essential element in the economic production of the world, are met with almost insurmountable difficulty in regaining their role, owing to the disorganisation of means of production and transport, expresses the opinion that every effort should be made by all nations to help these regions in their work of economic reconstruction, and, in order that they may be able to offer their contribution to the solution of the present world economic crisis, the Council agrees that the present resolution shall be sent by the various delegations to the Governments represented on the Supreme Economic Council.”

In respect of memorandum (c) the Council agreed the following resolution for transmission to the Supreme Council:—^4b

“The Supreme Economic Council being anxious as soon as possible to place at the common disposal the surplus food supplies of South Russia with due regard to the local requirements of that district, expresses to the Supreme Council the necessity of taking into consideration the question of food relief of the populations of Petrograd and Moscow, whenever these towns may be accessible.”

336. Situation in Armenia.

A letter and enclosures from the British Foreign Office (Doc. No. 305) stating the present deplorable situation of Armenian refugees in the Caucasus, was submitted to the Council by the British delegation.

After discussion, the following resolution, proposed by the British delegation, was agreed for transmission to the Supreme Council:—^4b

“The Supreme Economic Council, having made careful note of the representations of Earl Curzon in regard to the present unhappy conditions prevailing among the Armenians, desires to place on record its sympathy with the Armenians and to express its regret that it has no resources from which the relief of Armenian necessities could be effected. The Supreme Economic Council is of the opinion that the relief of Armenian distress is as in the case of Austria a matter of concern not alone to the Powers represented on the Supreme Economic Council, but to all the civilised peoples of the world.”

337. Relations of the Supreme Economic Council With the League of Nations and the Reparation Commission.

The French Delegation read a statement (Doc. No. 306) and a memorandum (Doc. No. 307) inviting the Council to consider in general which of its functions arising from the decisions of the Supreme Council of February 8th, 12th and 21st, and of June 28th, 1919,⁵ were intended to be countinued after the coming into force of the Treaty, and in particular what were to be its relations with the League of Nations and with the Reparation Commission.

The British delegation concurred in the view of the French delegation that this question was one of the most important which the Council had to consider. They had taken steps to obtain explicit instructions from their Government before attending the Meeting of the Council and they were directed to inform the Council that, in view of recent political developments, the British Government preferred not to be committed to any definite plans for the future of the Supreme Economic Council. The British Government would have to take into careful consideration current political events in the United States and the position of Great Britain in relation to these events. Pending this, the relations of Great Britain with the Council would continue as at present. They moved on adjournment of the consideration of definite plans for the future until the next meeting of the Council. Their personal view in the matter was that the Council had accomplished most invaluable work and that the information which it had gathered in the course of its labours would be of the greatest use to the bodies which the definite state of peace would call into existence.

The Belgian delegation stated that the view of their Government was as it had always been, that the Supreme Economic Council should be maintained. The services of the Council had been of the most invaluable order and it was certainly the body best qualified to look after the economic interests of the Allies.

As regards the relations between the Council and the League of Nations, there seemed to be a general agreement among the various governments, including that of the United States, that an economic section of the League of Nations should be established. What would be the exact relations between the Supreme Economic Council and the Economic Section of the League, it was as yet too early to say.

With reference to the relations between the Supreme Economic Council and the Reparation Commission, they expressed the view that it would no doubt be expedient that the very efficient advice of the subcommittees of the Council should be available for the Reparation Commission when that body should come into existence. As regards the former Finance Section of the Council, and the Allied Maritime Transport Executive, arrangements of this nature had already been made or were under discussion. In the opinion of the Belgian Delegation it was advisable also that the services of the Consultative Food Committee should be utilised by the Reparation Commission in questions affecting the revictualling of ex-enemy countries, as had been the case in the instance referred to in Minute 327 above. In any case they considered it necessary that the Council should, prior to a decision, ascertain the views of the other bodies concerned.

The Italian delegation recalled the statement made by M. Clémentel in London in August 1919, that the Allies had been in too great a hurry to lay down their war organisations. They warned the Council against similar precipitate action in the transition period between the Armistice conditions and Peace conditions. They reminded the Council of the fact that Mr. Hoover had in August proposed the creation of an International Economic Council, and that it had even been decided that this Council should hold its first meeting in Washington in September 1919.^5a Although this proposal had for the moment collapsed, they held that Mr. Hoover might possibly yet be able to persuade his fellow countrymen of the advantages of such a course. They therefore agreed with the British delegation that this was not the moment to take decisions and suggested that the Council should continue for the time being without change of organisation until such time as the League of Nations should come into existence. For them the fundamental point was whether the Allies should still have a table round which they might exchange views on topics of current economic interest. The form under which such consultation was to be assured was a matter of secondary importance. They further suggested that the Council should instruct its Permanent Committee to keep in close touch with the Economic Section of the Secretariat of the League of Nations on all matters likely to be of interest both to the League of Nations and to the Supreme Economic Council.

At the request of the Council, Mr. Salter (Economic Section, Secretariat, League of Nations) delivered his views on the question under discussion. He reminded the Council that his remarks were offered from an international standpoint. He was not of course able to speak officially on behalf of the League of Nations since the League did not yet formally exist. There were, however, one or two considerations which he might recall to the Council and one or two suggestions which he would like to make. (His statement and proposals are issued as Doc. No. 308.)

After further discussion, the following resolution proposed by the Italian delegation was agreed:—

“The Supreme Economic Council after discussion of its future and its relations with the League of Nations, considers any definite decision to be premature and gives instructions to its Permanent Committee in London to keep in close touch with the League of Nations for the purpose of studying from every relevant standpoint the relations between the Council and the League and remits all decisions to a future meeting, fixed provisionally for the beginning of January in Paris.”

338. The Establishment of an International Scientific Food Commission.

The Council noted.—

(a) A report (Doc. No. 309) approved by the Inter-Allied Scientific Food Commission at its meeting held at Brussels May 22–26th, 1919, containing inter alia resolutions and a proposed agreement concerning the creation of an International Scientific Food Commission.

(b) A recommendation by the Permanent Committee (Doc. No. 310) suggesting that the question of the creation of an International Scientific Food Commission should be referred by the Council to the Council of the League of Nations with a recommendation that in some form or other the physiological enquiries undertaken during the war by the Inter-Allied Scientific Food Commission should, in the interests of Europe as a whole, be continued on an international basis.

The Council approved the recommendation of the Permanent Committee.

339. Coal Supplies to Italy.

The Italian Delegation laid before the Council certain aspects of the existing situation in Italy as regards the supply of coal. They stated that Italy’s situation had slightly improved. They recognised, with gratitude, the help afforded them by their allies but they thought it their duty to their country to point out that on the most favourable estimate the general situation was still critical.

Even if the most rigid economy in consumption were maintained, Italy needed 500,000 tons of coal per month. The Italian Delegation requested the British Delegation to take note of this minimum requirement and to furnish them with a general guarantee that this supply would be maintained whatever changes were made in the system of export control in Great Britain.

They further drew the attention of the British Delegation to the very great financial sacrifices which Italy had to make in order to pay for the coal which she received from Great Britain and the United States. The existing price of approximately 400 lire per ton constituted a well-nigh insupportable burden upon the iron and other metallurgic industries of their country.

The British Delegation replied that they took the most serious note of the declaration made by the Italian Delegation and gave an assurance that every effort would be made by Great Britain to secure the delivery at the required time of the minimum quantities under discussion. They recalled the fact that throughout the war Great Britain had made very considerable efforts to export both to France and to Italy the greatest possible quantity of coal.

As regards the technical side of the discussion they invited the expert representatives of the countries concerned to attend a conference with the British experts in order to discuss the proposed change in the British licensing system, the object of the change being to increase British production with a corresponding increase in the quantities available for export.

It was agreed that a conference on this question between technical experts of Great Britain, France and Italy should take place at the earliest possible moment.

340. German Exports to Turkey.

The Council noted a recommendation by the Permanent Committee (Doc. No. 311) suggesting that the Council should consider the question of making a recommendation to the Supreme Council that Article 23 of the British Armistice terms, prohibiting Turkey from commercial relations with the Central Powers, should be overridden in view of the very considerable interest shared by the Allies in the rapid economic recovery of the countries under reparation obligations to them.

The French Delegation stated that both the Financial and Economic Commissions were already dealing with clause 23, and they feared that action by the Council might lead to confusion, especially as no decision had been arrived at. It struck them that the difficulties referred to matters which could be settled by the High Commissioners at Constantinople. They moreover recalled the iact that, when on previous occasions similar proposals to override the Armistice terms had been brought before the Supreme Council, the Supreme Council had invariably decided in favour of the maintenance of Armistice conditions.

The British Delegation were prepared to accept the recommendation of the Permanent Committee. They considered that the present situation in Turkey had arisen from the fact that the situation de facto did not correspond to the situation de jure.

It was agreed:—

That the Council should take no joint action in the matter, it being understood that the French Delegation would communicate with their High Commissioner in Constantinople about this and other similar questions arising out of the Turkish Armistice conditions.

341. Foreign Banking Committee in the United States.

The Italian Delegation informed the Council of the establishment in the U. S. A., as a result of conferences held at Atlantic City, of a foreign banking Committee.

It was stated that no official information was available as to the exact functions of this Committee, whose work would doubtless prove of great value.

342. Trade Restrictions in Europe.

The Council noted a report (Doc. No. 312)^* submitted by the French Delegation relative to the trade restrictions at present in force in various European countries.

The Council referred the report to its Permanent Committee and to its Raw Materials Committee for appropriate action.

343. Time and Place of Next Meeting.

At the invitation of the French Delegation it was provisionally decided that the Council should meet in Paris about the 10th January, 1920.

Appendix 293

22 November, 1919.

Cable to Lord Robert Cecil, Mr. Hoover, M. Clémentel, Sig. Crespi and M. Jaspar

On the occasion of its 31st meeting the Supreme Economic Council wishes to express to you its deep sense of the very great value of your joint labours in the economic sphere during the past critical months and to convey to you its hearty thanks for all your efforts in the cause not only of Europe but of the economic reconstruction of the world.

Appendix 294

Decision of the Supreme Council, 17th November, 1919, [Regarding] German Tank Steamers

It was decided:—

1. To instruct the Armistice Commission to give instructions that the German Tank Steamers should proceed to the Firth of Forth.

2. To inform the Commission in addition that the nine Tank Steamers claimed by American interests must be retained in the Firth of Forth without being used until the Council came to a new decision.

3. That the other tank steamers should be handed over to the Allied and Associated Governments for temporary management, in accordance with the decision taken by the Allied Maritime Transport Executive on the 17th September, 1919.

4. That M. Polk while accepting the three points above reserved to himself the right of raising the question anew if he could not obtain the assent of his Government.

5. That M. Polk would call the attention of his Government to the very urgent need of France and Italy for petrol, which rendered it necessary to come to an immediate decision with respect to the allocation for temporary management of the German Petrol steamers.

Appendix 295

Report of the Work of the Permanent Committee, October 6th/November 5th, 1919

1. Inter-Allied co-operation in the purchase of foodstuffs.

The Consultative Food Committee has established Sub-Committees for the purchase of butter, hog products and sugar. The Sub-Committee met in London on the 27th October and submitted reports to the Consultative Food Committee embodying proposed arrangements for co-operation in purchase between the European Allies.

2. Provisioning of Austria.

The Food situation of Austria has several times been considered at meetings of the Permanent Committee. At the meeting of October 6th, letters from the Austrian Delegate were read, as well as telegrams exchanged between Mr. Elliot and Mr. Gorvin, concerning the immediate requirements of Austria, Mr. Gorvin’s telegram mentioning a request of the Chancellor, Renner, to obtain the speedy delivery of 50,000 tons of wheat to Austria. The Permanent Committee was not able to settle the question as it was not competent to do so. It could only state that it was absolutely necessary to know what organisation was to be responsible for arranging for the provisioning of Austria, and what organisation would be entrusted with the duty of obtaining payment for this provisioning.

The French Delegate suggested a solution: the constitution of a Committee for the provisioning of Austria reporting to the C. O. R. C. and partly composed of the staff of the Consultative Food Committee. It was then decided that the delegates of the Permanent Committee and representatives of the C. O. R. C. should meet in Paris to investigate the desirability of the constitution of such a Committee. This meeting could not take place, and no further steps have been taken concerning the question.

3. Tonnage for the immediate supply of Austria.

On the 6th October the Permanent Committee referred to the A. M. T. E. the request for tonnage to transport 10,000 tons of wheat which the Austrian Government had purchased at La Plata to re-place the same quantity previously borrowed from the Belgian Government. As regards this request, the Permanent Committee informed A. M. T. E. that, so far as it was able to judge, there was no reason to doubt the urgency of Austrian requirements.

On the 22nd October, the Permanent Committee took note of the reply of the A. M. T. E. which was to the effect that, assuming Belgium recouped her outlay, the simplest method would be for Belgium to import the cereals herself in what manner she chose.

The Belgian Delegate on the Permanent Committee undertook to lay the view of his Government before the A. M. T. E. with a view to obtaining a re-consideration of the question. At the same time, he stated that the time fixed for the repayment by Austria of the 10,000 tons of wheat in question had been prolonged to the 30th October.

4. Polish Stocks at Dunkirk.

On the 22nd October, the Permanent Committee considered a request for tonnage made to the A. M. T. E. to lift Polish stocks which were over-crowding the port of Dunkirk. Two British ships had already been allocated for this work and the A. M. T. E. had offered to allocate two others. In view of the fact that the Treaty of Peace was not yet in force, it was proposed that the A. M. T. E. should allocate these two vessels at “blue book” rates. This proposal was agreed to at the 23rd meeting of the A. M. T. E.

In the general case of ships allocated before the entry into force of the Peace Treaty which completed their voyage after its entry into force, it was proposed to allocate these ships at commercial rates with a clause stipulating the repayment of the difference between “blue book” rates and commercial rates for the period during which the ships were at sea before the entry into force of the Peace Treaty.

5. Agreement between the Egyptian Government and the Société Générale des Sucreries et de la Raffinerie d’Egypte.

On the 22nd October and the 5th November, the Permanent Committee considered the question of the desirability of a renewal by the Egyptian Government until January 31st, 1921, of an agreement made between it and the Société Générale des Sucreries et de la Raffinerie d’Egypte, with special reference to the fact that the renewal of this agreement involved the maintenance in Egypt of import licences for sugar. The Permanent Committee decided to raise no objection to the renewal of this Agreement.

6. Supplies to Poland for the Winter 1919/20.

On the 6th October the Committee considered and referred to the Consultative Food Committee the question of the requirements of Poland in foodstuffs, coal and raw materials for the Winter of 1919/20. This question was considered by the Consultative Food Committee at its meeting on the 10th November, when a report was prepared for the Council.

7. Railway materials for Greece.

On the 6th October, the Permanent Committee considered the reply of the French Government to the request of the Greek Delegation for railway materials. It was explained that as the Greek Government had no advance account in France, the French Minister of Finance could not consent to the cession of this railway material under the same conditions as those made to other Allies. This report was transmitted to the Communications Section.

8. Greek request for enemy tonnage.

On the 6th October, the Committee considered requests from the Greek Delegation for the immediate cession of enemy tonnage. The Committee considered that there was no reason to accede to the requests of the Greek Delegation, except in the case of a contrary opinion on the part of the A. M. T. E. The A. M. T. E. has raised no objection to the decision of the Permanent Committee.

9. Bridge over the Save.

On the 22nd October, the Permanent Committee took note of a telegram, informing it of the completion of the Railway bridge over the Save, the delivery of the material for which had been expedited at the request of the Committee.

10.

On the 6th November the Permanent Committee was occupied mainly with the discussion of agenda for the meeting of the Council in Rome. Amongst the chief subjects considered were:—

(a) Allied co-operation in purchase.

(b) The position of Italy as regards coal supplies.

(c) The situation in South Russia, with particular reference to the possibilities of the export of foodstuffs.

(d) The provisioning of Austria.

12.11.19.

Appendix 296

Report of the Proceedings of the Consultative Food Committee

The Consultative Food Committee have held two meetings since the Brussels meeting of the Supreme Economic Council on the 3rd and 10th November, and several meetings have been held of Sub-Committees. Progress may be recorded under the following headings:—

(1) Belgian Representation.

The Belgian Government have expressed a desire to purchase certain foodstuffs in co-operation with the United Kingdom, France and Italy, and have appointed representatives to the Consultative Food Committee.

(2) Meeting with German Delegates.

The British representatives on the Consultative Food Committee held a conference with representatives of the German Finance and Food Ministries at Cologne on 23rd September. The food situation in Germany—with special reference to the importation requirements during the first four months of the cereal year 1919–1920—was discussed, but it was pointed out by Herr Bergmann, the German Minister for Finance, that finance was in every case the limiting factor, and that German financial resources must be more fully explored before a programme of buying could be framed. The situation had been temporarily eased by importation under the Armistice arrangements, but further gold was not available for payment of food.

The Organisation Committee of the Commission on Reparations considered a Report of the Conference and decided to take no action until the German Government had put forward a definite buying programme with suggestions as to finance.

(3) Formation of Sub-Committees.

Sub-Committees have been set up to deal with the following commodities:—

(a) Wheat and Flour.

(b) Meat.

(c) Sugar.

(d) Hog Products.

(e) Butter and Cheese.

(a) The Wheat and Flour Sub-Committee meets regularly every week. After consultation between the Allies orders for purchases are sent out to the various exporting countries through the agency of the British Royal Commission on Wheat Supplies. Purchases which for one reason or another are not made according to this method are reported by the respective Allies Delegates to the Sub-Committees so that complete exchange of information regarding prices and available supplies is effected.

(b) The Meat Sub-Committee in the same way as the Wheat and Flour Sub-Committee places all buying orders in the hands of the purchasing organisation set up by the British Government. After an exhaustive survey of the probable world’s supplies of meat, it has been estimated that in the first half of 1920 there will be both Meat and refrigerated tonnage to cover the requirements of France, Belgium, Italy and the United Kingdom, and probably leave a moderate balance available for other European importing countries. The requirements of Belgium have been co-ordinated with those of the three other Powers signatory to the Consultative Food Committee Agreement.

(c) The Sugar Sub-Committee held a preliminary meeting on 27th October, at which the principle of consultative buying was agreed by the United Kingdom, France and Italy, all purchases being made either by or in consultation with the Royal Commission on Sugar Supplies. Where private importation is taking place, as in the case of manufacturing sugar for France, endeavours are being made to centralise purchases through a Committee of Importers with a view to their sending representatives to the Sub-Committee.

At a subsequent meeting the disposal of the Czecho-Slovakian surplus was fully discussed, and a decision was taken to restrict the purchases of the Sugar Sub-Committee in this market to a figure which would leave an available surplus sufficient to fulfil the requirements of German-Austria, Hungary, and any other countries normally dependent on Czecho-Slovakia for supplies of sugar.

These arrangements for co-operative purchasing are to continue until 31st August 1920, subject to revision or suspension at three months’ notice given by any one of the contracting parties.

(d) The Sub-Committee on Hog Products has agreed that purchases on behalf of each country in New York, shall be co-ordinated among the buying agencies of the several Governments. The arrangements for consultative buying hold good until 30th June 1920, subject to revision or suspension at one month’s notice by any of the contracting parties.

(e) The Sub-Committee on Butter and Cheese agreed that in North America and other exporting countries, Belgian Italian and British buyers should co-operate and buy within agreed limits of price. Repartition of purchases in Denmark was also arranged. The French Government have undertaken to prevent competition by private importers which might lead to increase of prices by restricting the use of refrigerated tonnage to normal Government imports and by prevention of profiteering.

In the case of all Sub-Committees arrangements have been made whereby future programmes and a record of all purchases made by each participating country shall be placed on the table. The buying arrangements are to continue for the same period as those for Hog Products.

(4) American Representation.

The principles adopted by the Consultative Food Committee and the method of procedure agreed in respect of the commodities for which the Executive Sub-Committees are responsible have been communicated to the State Department at Washington reiterating the cordial invitation to assist the Committee and to appoint representatives. No reply has yet been received.

November 14, 1919.

Appendix 297

Memorandum by the Consultative Food Committee [Regarding] Cooperation Among the Allies as Regards Purchasing

The Consultative Food Committee desires to lay before the Supreme Economic Council certain difficulties which seriously hamper its work and on which it desires instructions.

1. Competition of Germany in purchasing Foodstuffs.

The Belgian representatives have brought to its notice considerable purchases of foodstuffs by the Germans through Antwerp and Rotterdam at considerably higher prices than those now being paid by the Allies. Reports have also been received from other sources of Central Empire purchasing operations or proposals in other markets which have also tended to increase prices or to deprive the Allies of supplies which they need.

In respect of several vital food products the upward trend of prices has not yet been steadied, though the work of the Consultative Food Committee has been of great value to the various countries concerned in regard to this. The Committee cannot achieve its full usefulness, however, unless it is kept informed from day to day as to German and other Central Empire purchases and requirements. For this purpose it is probably not necessary that German representatives should be formally added to the Committee, but it is essential that information regarding German purchases and requirements should be constantly available, and that orders should not be placed by them save with the prior knowledge of the Committee. This proposal applies not merely to purchases of foodstuffs financed under the Reparation Clauses of the Treaties but to any other purchases.

It is believed from what transpired at a meeting at Cologne between the members of the Consultative Food Committee and the representatives of the German Food and Finance Ministries that the Germans would raise no objection to this course.

2. Supplies to ex-enemy countries.

Responsibility for dealing with imported supplies from overseas to Austria and other ex-enemy countries needs more definite determination. The Consultative Food Committee is not at all concerned with the provision of finance, but foodstuffs in the quantity likely to be needed by Austria from Overseas cannot be provided without the scheme of provision being carefully worked out and adjusted from time to time, with a full knowledge of the requirements and programmes of the Allied countries.

The provision of supplies for Austria is becoming a matter of very grave concern. Unless some decision can be reached very rapidly it may be impossible in any case to provide her needs in time to prevent disaster, for which the Allied Governments as a whole might be held responsible. At the present moment, the Reparation Commission may have the finance, but it does not appear to have available the necessary foodstuffs nor the machinery for providing it. The Consultative Food Committee has the foodstuffs, but is unable to discover from what source the finance will if at all be provided.

It is of great importance, therefore, from the point of view of the Consultative Food Committee, that a decision should be reached as to whether or not finance is to be provided and by whom and as to the responsibility for providing the foodstuffs.

3. Supplies of Foodstuffs to and from Russia.

The Consultative Food Committee is unaware whether it has any responsibility as regards the provision of supplies to certain parts of Russia as and when they may be required; nor as to whether anybody has such responsibility. It appears certain that there are some hundreds of thousands of tons of surplus grain in South Russia which can be obtained if adequate undertakings can be given to feed Petrograd and Moscow if and when necessary. These quantities of grain, if secured, would at once transform the whole food situation in Europe. The Consultative Food Committee desires to know whether if, in the course of negociation with General Denekin’s Government for the procuring of surplus grain from South Russia, it finds it necessary to give undertakings with reference to relief supplies for other parts of Russia it is authorised to give such undertakings and to organise its shipment and supply programme.

November 14, 1919.

Appendix 298

3/11/19.

Memorandum by the Italian Delegation

The Consultative Food Committee was constituted at the Meeting of the Supreme Economic Council in London on the 2nd August last, for a period fixed provisionally until the 31st December next.

The most important functions of the Consultative Committee are those fulfilled by the Executive Sub-Committee for Wheat and Flour and by the Meat Sub-Committee, therefore this memorandum will be mainly concentrated on these two points.

Practically the action of these two Sub-Committees is a continuation of that followed during the war, with the only difference that there was no pooling of finance and transport, it having been established that each party should be solely responsible for providing its own finance and tonnage. For the rest, the Sub-Committee on Wheat and Flour still acts as in War time, the fundamental basis of their action being based on purchases and shipments through the Wheat Commission of London and their agencies abroad.

The reason which, in August last, rendered the continuance of such system useful, was practically that the markets showed a great uncertainty, both in regard to quantity available and prices, in view of the requests of the ex-enemy and the new countries.

The effect of the requests from ex-enemy countries was not actually so important as it appeared, because, owing to financial difficulties, though in a different measure, both Germany and German Austria were prevented from buying even the minimum necessary for their requirements. At any rate, the benefit derived from the system adopted in August appeared to be very great, and one of the proofs is that the prices of River Plate showed a substantial decrease, notwithstanding the fact that general pressure upon the markets was, at least in the latter months, heavier than before.

Considering that the duration of the Consultative Food Committee expires on the 31st December next, the question arises as to the future regime.

For that there are two alternatives.

1. To continue for the year 1920, or at least up to the completion of the current cereal year, with the existing system, in view of the fact that even now in the situation of the markets, both as regards quantity available and prices, is not clear, and also for the fact that the national controls would continue for at least a part of the next year. Such solution appears still more necessary when it is considered that the return to normal trade must be preceded by the abolition of the State Subsidy for bread, which appears urgent almost everywhere in order to eliminate such heavy financial burden on the Governments and for the purpose of increasing the internal production. The elimination of the bread subsidy, however, is not practicable, if it is not possible to anticipate the prices for a large part of the next year. In fact, if prices remain the same, or decrease, the abolition is possible, but if they are going to be higher, it is impossible, or at any rate very difficult. It is improbable that we shall have at least any increase if the existing system is maintained.

2. The other alternative is to pass rapidly to a state of commercial freedom.

The reasons for advocating such solutions are, first of all, that the present system of Executives is and cannot be other than temporary. Moreover, there is the fact that the Executives are practically composed of war volunteers, business men who desire to return to their normal occupations and without whom the action of the Executives would be impeded.

This second solution offers the possibility, even with the abolition of the Executives, of leaving the Consultative Food Committees as a general clearing house of information and as a centre of international information and advice.

Between these two solutions there is practically no direct opposition, the second being the logical and definite one; the only point which it is necessary to discuss is that of the date for the passage from the first to the second. Two elements must be considered, viz; the general world situation and the possibility of putting into immediate action the national organisations. It is necessary therefore, to examine whether such transformation is possible in the very first part of next year, or at the completion of the cereal year, or afterwards. The last suggestion seems the most convenient.

First of all, it is necessary to consider the question of the subsidy already mentioned. The passage from the present prices under the subsidy to the cost prices, is of great importance, also from a political point of view, and it is only possible when the cost prices can be, to a certain extent, foreseen and fixed. If the prices are known, even approximately, all the financial operation involved can be determined. Moreover, the operations would be very difficult, if not impossible, should the prices be higher than at present; on the other hand, it would be easy if the prices should be lower. Then two elements are necessary; the prices must be foreseen, and the prices must not be higher. Under the present system, that is possible. This point is of the greatest importance, particularly for countries where bread plays such a large part in the popular diet, and where the present cost of living, in comparison with the level of wages, leaves only a very narrow margin.

Apart from the subsidy, the question of prices is the central one.

It is true that, generally speaking, the last crops were good; that the possibilities of buying for the ex-enemy and new countries were and are not so large as expected, and the supplying countries show a certain anxiety to sell; there are, however, three facts to consider:—

(a) The numerous and serious difficulties which the European countries find in the re-organisation of their national production of cereals.

(b) The general increase in consumption which can be reckoned at approximately 20%.

(c) The fact that free buying will give rise to a concentration of an extensive, anxious and undisciplined demand from the Allied countries in America, which constitutes the principal market.

It is also necessary to consider some other very important facts:

a) The buyers have before them, not many and various producers and merchants, but on the contrary, strong national combines which either directly or indirectly control sales and exports. The most clear cases are those of the Export Corporation in the United States and Canada.

b) Further, profiteering and speculation are more possible and probable in goods of this kind which are of such a great political value, and for which, even with a general good crop as the last, the margin remains always very narrow.

c) The Russian situation also needs consideration. If the Bolshevik Government in Russia should be overturned, Russia would immediately become both an importer and exporter of cereals. In order to take full advantage, even in the interest of Russia herself, it is necessary for the Allies to come to a certain understanding, to discipline both the sales and the purchases of food for Russia, in order even to avoid the effect of too large exports from the South, increasing the need of relief in the North, and rendering more difficult the political and economic situation of that country.

d) Finally, there is another important case—the supply to German Austria. Until a general equilibrium is reached between distribution and production and consumption, cases like that of Austria must be dealt with through an understanding among at least the Allied countries. It is a fact that as a definite solution, the first source of supplies for German Austria must be found in the nearest countries. Through the present system of buying, the Allies can easily avoid purchases in such countries, in order to direct the cereal surplus there to German Austria. With the free system of buying, this is not possible.

All the above facts are considered to show that the moment of passing from the first to the second solution has not come. This, however, does not prejudice the necessity of returning, as soon as possible, to the normal system of buying, and importing and preparing immediately such return, giving to the National Organisations wider powers, as, for example, for shipping, receiving and distributing cereals, retaining, however, the purchases, for a further period, to the actual Inter-Allied Organisations.

Appendix 299

Memorandum by the Permanent Committee on the Functions of the Raw Materials Committee

At the 29th Meeting of the Supreme Economic Council it was decided to request the Raw Materials Section to meet and draw up a report on the deficits in the supply of Europe with raw materials.⁶ This meeting took place and a report was presented at Brussels on Sept. 20th.⁷ It is stated that in the case of Haw Materials, as in that of food, the situation had changed for the worse since the time when the Raw Materials Section adjourned in May.

On the other hand, the events which have taken place in the world as a whole since the signature of the Peace Treaty with Germany show that it is more necessary than ever to make a careful examination of the general situation and to carry on this examination on common lines.

The Raw Materials Section, which in its present form is not adaptable for dealing either with common purchases or transports, should be organised so as to be able to undertake this other work. It is particularly well qualified for it on account of the information which it has already collected in the course of its work.

In order to make it quite clear that it would not have the same functions as the former Raw Materials Section, it would be desirable to give another name, such as “Committee on Raw Materials and Statistical Information”. This would correspond to what was done in the case of the Finance Section and the Food Section.

It does not appear necessary that Ministers should be members of this new Committee. High officials who, by the nature of their work, are in a position to be acquainted with all the necessary information up to date, might be appointed members of this Committee. The Committee would also undertake the publication of the Statistical Bulletin. The situation as thus defined would correspond to the present de facto position.

In these circumstances, it is proposed that the Council should approve the adoption of the following proposals:—

(1) There shall be constituted a Committee on Raw Materials and Statistical Information.

(2) It shall be the duty of this Committee:—

(a) to be acquainted at all times with the situation as regards raw materials.

(b) to collect and to publish as far as may be considered opportune, either in the Statistical Bulletin or otherwise, all statistical or other information concerning not only the situation as regards raw materials, but also the various controls and regulations and important economic facts.

(c) to consider the actual results on the supply of Eaw Materials distribution of trade etc., arising either from Govt, action or from the commercial practices of the various nations.

(d) to study the possibilities of increasing production in the producing countries and the means of removing the obstacles to such increase.

(3) Each Government shall appoint a delegate to represent it on this Committee.

(4) This Committee will report to the Supreme Economic Council and to the Reparation Commission.

November 12, 1919.

Appendix 300

Memorandum on Work of Communications Section Since September 22, 1919

Baltic Provinces.

(a) A Financial arrangement has been come to between the Lithuanian Government and the French Ministry of Finance for the cession to Lithuania of 30 Armistice locomotives. All arrangements have been made for their despatch, and the locomotives have already left and are proceeding across Germany.

Poland.

The transportation situation here continues to improve. All Armistice locomotives ceded have been received and 1,700 out of the 2,000 waggons. General Hammond, Chief of the Allied Railway Mission has also been appointed as Transportation Representative on the Upper Silesian Plebiscite Commission. Stores and railway material are continuing to arrive at Dantzig.

Czecho-Slovakia.

Arrangements have now been finished for the despatch to Czechoslovakia of Armistice waggons from France, for their repair in Czecho-Slovakia and return to France. Payment for these repairs will be made by ceding to the Czechs a number of these waggons equal in value of the repairs of those sent back to France.

Austria.

A proposal has been submitted to the Supreme Council whereby France, Great Britain and Belgium should each hire 1,500 waggons to Austria for coal transportation, if it is considered that the International situation warrants this step, at the expense of the national situation of the three countries concerned.

Jugo-Slavia.

The railway bridge over the Save River at Belgrade was completed and opened to traffic on the 13th October last. This was the last remaining link to be repaired on the Paris-Constantinople Line, and it is hoped that “The Simplon Orient Express” will be able to run direct through to Constantinople shortly.

Roumania.

The situation as regards despatch of materials and locomotives to Roumania remains unchanged, owing to the continuation of the embargo.

Hungary.

The transportation situation in this country has become very precarious owing to the sequestration of rolling stock by the Roumanians. Up to the end of October they had taken 1,200 locomotives odd, and 36,000 waggons.

The Danube.

Representatives of Czecho-Slovakia, Roumania and Serbia have been nominated to the temporary Danube Commission. A credit of £15,000 for the expenses of this Commission has now been authorised by the British Treasury and issued to Admiral Troubridge.

Interchange Traffic Committee.

This has been set up at Vienna by the country representing the old Austro-Hungarian Empire, and Italy, Poland, Roumania, and the Ukraine, for the purpose of the interchange and checking of waggons at frontier stations. It is hoped that by this means a great deal of the mistrust of States will be overcome, and a freer interchange of commodities will take place.

Commission for Repartition of Rolling Stock in the Austro-Hungarian Empire.

The British members of the various Communications Section Transportation Missions have been directed to furnish Sir Francis Dent, President of the above Commission, with any information and statistics that he may require. Other members of the Communications Section have been requested to give orders in a similar sense to their own representatives.

General Census of Rolling Stock.

It has been decided that the Presidents of the various Transportation Missions in Europe should request the Governments concerned that a general census of all rolling stock should be taken throughout Central Europe every fourth Sunday starting on January 4th, 1920.

It has been decided to reduce the number of independent missions in Central Europe by placing those in Czecho-Slovakia, Hungary, Austria and Yugo-Slavia under the orders of the old Adriatic Mission.

Appendix 301

Note by the Permanent Committee [Regarding] Difficulties of French Communications in the Black Sea

One of the first tasks of the Communications Section was to restore commercial postal services for the use of all the Allies equally in the trains run by the French Military Authorities in Central and Eastern Europe.

The French Government has always given its assistance to this service, especially to the transport of the British post.

It appears from numerous and similar reports that French posts to and from the ports of the former Russian Empire in the Black Sea do not receive equally favourable treatment. While the English posts are transmitted rapidly from Russia to Constantinople, after which they are sent on to the West with the active assistance of the French Authorities concerned, the French posts, on the contrary, have to await the very infrequent passage of French or Greek vessels.

No less difficulty is experienced as regards telegraphic communications.

It appears that the British Authorities, who have extensive control over traffic in the Black Sea, should be in a position to give effective assistance in remedying this state of affairs.

It is proposed:

(1) To instruct the Communications Section to report on the technical arrangements now in force and to be made both for postal and telegraphic communications.

(2) To request the Communications Section to arrange for the necessary instructions to be given so that postal and telegraphic arrangements, including those for commercial posts and telegraphs, should be the same for all the Allies.

Appendix 302

Memorandum by the Communications Section [on] Difficulties of French Communications in the Black Sea

With reference to the annex 38 attached to the proceedings of the 5th Meeting, Permanent Committee of the Supreme Economic Council:—

1. The present technical arrangements in force for

(a) Postal communications are unsatisfactory since they are dealt with partly by the British Consul at Novorossisk and partly by the Army signals. In order to regulate this state of affairs an officer of the British Army Post Office has been dispatched 10 days ago by the General Post Office to take over local arrangements. This officer will be attached to the British Military Mission.

(b) Telegraphic Communication. There is a submarine cable from Constantinople to Odessa, thence by land line from Odessa to Taganrog and on to Novorossisk. There is also a land line from Constantinople to Batoum and Novorossisk. Thirdly there is a wireless installation at Constantinople and Novorossisk.

2. As regards Postal arrangements, I am informed by the General Post Office that there should be absolute equality for the Posts of all nations to and from Russia, and that if any irregularities have occurred they are due to the unsatisfactory arrangements which have been in force up to now.

The Telegraph Station at Constantinople is run by the British War Office in conjunction with the French and Italian Authorities who have equal rights for sending messages by wireless. The British War Office, however, are unable to inform me at the short notice given if this also applies to the other two routes above mentioned.

N. H. Thornton

.
Maj. R. E.
Secretary, Communications Section.

14.11.19.

Appendix 303

Note by the Consultative Food Committee [Regarding the] Situation in South Russia

The Consultative Food Committee has kept itself informed of the Economic situation in Southern Russia.

It is certain that the grain harvest has been large, and that under normal circumstances there would be considerable Export Trade. Owing, however to the dislocation of transport and difficulties of exchange, it is improbable that supplies will be available for some time to come.

15.11.19.

Appendix 304

[Memorandum From the Communications Section Regarding the] Situation in South Russia

List of Contents

1. Covering letter by Col. Maxwell to British Secretary.

2. General note[s] by Col. Maxwell.

3. Report by Col. F. R. Hull.

4. Report[s] on the ports of Berdyansk, Mariupol, Taganrog.

5. Letters and report on the loan of £20,000,000 asked for.

[1. Covering Letter by Colonel Maxwell]

12 November, 1919.

British Secretary, Supreme Economic Council
Trafalgar House, Waterloo Place, S.W. 1

Sir: I am in receipt of your letter of the 8th November and I note that the question of the present economic situation in South Russia will be discussed in Rome on November 22nd. I am forwarding herewith a number of Reports selected from a very large quantity of information on the subject of the transportation situation in South Russia. My information has been very largely obtained from Colonel F. R. Hull who was the British Military Railway Adviser to the Mission with Denikin’s forces. This Mission is a Military one run by the War Office and my thanks are due to the War Office for all the information which I am able to provide. So far the Communications Section has not taken over the Mission in South Russia.

I am [etc.]

G. Maxwell

.
Colonel.
For Chairman Communications Section.

[2.] General Notes [by Colonel Maxwell]

Colonel Hull’s Report No. 10 and his latest Report of date give fairly accurately and concisely the actual situation as regards transportation in South Russia. It seems an undoubted fact that South Russia is not really impoverished by the War. The whole area so far as can be seen from the railway is well cultivated, the harvests are abundant. Something like 80% of the whole area is now under cereals.

Colonel Hull’s 2 great points are:—

1. That no real re-organisation of transport can take place until the food supply is organised.

2. That there are great possibilities in the area of South Russia.

Colonel Hull thinks that a million tons of wheat can be exported from South Russia but not a ton will be moved, in his opinion, until the distribution of food is organized.

Attached to these Notes is a complete file of reports from Colonel Hull which deal exhaustively with the whole situation in South Russia. Certain general facts are apparent from these reports:—

1. The question of finance where it is important to know what form of assistance will produce the greatest results at the least expense. It is submitted that assistance in the re-organising of internal communications best fulfils this requirement.

2. The solution of the transportation problem will alone solve the food problem and will partly solve the raw materials problem. Without the restoration of Communications no other form of economic assistance can take effect.

[3. Report by Colonel Hull]

south russian railways: general position in october 1919

General Situation.

The Armed Forces of South Russia (A. F. S. R.) under the command of General Denikin had under their control about 12,000 versts of railway (8000 miles), the area including the towns of Odessa, Kiev, Orel, Voronesh and Tsaritsin on the boundary running from West to East on the North, whilst the Caucasus formed the Southern boundary.

Traffic was worked on all lines in this area and the track generally was in fair condition. Many bridges had been destroyed by the enemy but temporary repairs enabled traffic to pass.

Transportation.

Traffic was restricted owing to the limited number of locomotives in working order, only 34% of the pre-war total, and these locomotives owing to poor condition and bad organisation were worked at half their proper capacity, thus reducing the operating locomotive power to 17% of the pre-war power.

Rolling Stock.

The following was available:—

Locomotives.
Total No. in working order	1720
(Pre-war total stock	5005)
Total No. awaiting repair	1684
Total removed by enemy	1601
Passenger-Coaches.
Total No. in working order	1858
(Pre-war total stock	5577)
Total coaches awaiting repair	1157
Total removed by enemy	2562
Freight Wagons.
Total No. in working order	58591
(Pre-war total stock)	140435
Total wagons awaiting repair	19545
Total removed by enemy	62290

Operation of Rolling Stock.

The following percentages show how the available stock compares with the pre-war totals.

Locomotives available for operating		34%
Passenger Coaches	do.	33%
Freight Wagons	do.	41%

The locomotive position is critical owing to the limited number and their poor working condition.

The passenger coach position will become serious on the cessation of hostilities when passenger traffic will increase.

The freight wagon position is fair and there is no need for the importation of new wagons.

New Rolling Stock.

There is very urgent need for the importation of new locomotives and 300 should be delivered in 1920, with another 700 to follow in 1921 and 1922. These locomotives should be heavy freight type, 0–10–0, the engine weighing about 80 tons, or 16 tons per axle.

If however arrangements can be made to increase the repair capacity of the existing locomotives repair shops or to repair Russian locomotives outside Russia, then the number of new locomotives can be reduced by the number of locomotives thus specially repaired.

Railway Stores and Repair Material.

Material to the value of £500,000 is being shipped to South Russia but additional material to the value of £1,000,000 is still urgently required in order to place the locomotives and wagon repair shops in a condition to maintain traffic and repair damaged stock.

Fuel Situation: Coal.

The situation is critical owing to the limited transport and failure of supply from the collieries owing to disorganised labour which is mainly caused by lack of food supply and commodities for the coal miners.

Oil.

Supplies from the Grozni fields are limited owing to the lack of transport facilities. Land transport of oil from Baku to Batoum is also limited owing to lack of transport and also owing to political troubles. Some 4,000,000 tons of crude oil is in storage at Baku.

Economic Situation.

The lack of an organised food supply and the general dearth of all commodities is the cause of the critical labour situation amongst the railwaymen, coal miners and industrial workers, whose working capacity is reduced to one-third of their pre-war efficiency. Railway workers spend one-third of their time in travelling to obtain food; in speculation to obtain extra money with which to buy food; or in some other occupation more highly paid than their regular job. All workers are short of clothing and commodities which are usually unobtainable though sometimes to be had at prohibitive prices. Commodities to the value of £500,000 are being supplied to the railway workers and a further £2,000,000 should be supplied in 1920/1921.

Transportation of Commodities for Export.

Transport for export will not be available until internal transport needs are met for such urgent matters as, food distribution from wheat areas to industrial areas, coal transport and oil transport, and above all the urgent military needs at the front and transport of military stores from the ports. Due to bad organisation these internal transport needs are still short as regards locomotive power and only with improved labour conditions and importation of locomotives can transport demands for export be met.

Labour conditions will improve immediately an organisation is in operation for the purchase, collection and distribution of food to the industrial areas, and this organisation must be combined with the importation of clothing and commodities.

Commodities for Export.

The harvest of 1919 has been abundant, the best for 20 years, and the area under cultivation in the Ukraine, the Kuban district and the Crimea is almost normal. From 500,000 to 1,000,000 tons of cereals will be surplus and available for export when transport facilities permit.

Help Expected From the Allies.

To obtain export of cereals from South Russia the following measures are necessary:—

(1) An organisation for the purchase, collection and distribution of food in the industrial areas.

(2) Importation of railway repair material to the value of £1,000,000 during 1920.

(3) Importation of commodities for the railway workers and coal miners to the value of £2,000,000 during 1920 and 1921.

(4) Purchase and immediate importation of 300 locomotives of the approximate value of £3,000,000.

(5) Re-organisation of the existing locomotive repair shops and conversion of existing mechanical workshops into locomotive repair shops.

Foodstuffs & Raw Material for Export.

The following materials will be available for export when transportation facilities are improved:—

• From 500,000 to 1,000,000 tons of cereals.
• About 4,000,000 tons of crude oil.
• “ 1,000,000 tons of petrol.
• Sunflower-seed oil and allied products.
• About 1,000,000 tons of manganese ore.
• Tobacco, potash, wool and hides.

F. R. Hull

Colonel. R-E.
Railway Adviser to the British Military
Mission with General Denikin in South Russia.

London , 13 November, 1919.

[4. Reports on the Ports of Berdyansk, Mariupol, andTaganrog]

berdyansk port

July 23, 1919.

Channel.—Present depth 19 ft., silting is minimised by protective headland to east and south-east.

Entrance.—Between breakwater and end of Mole is 1400 ft. of anchorage in 24 ft. water over velvet clay.

Basin & Dockage.—Inside the mole is 1500 ft. of wharfage in 20½ ft. water and excellent shelter. On outside of mole 735 ft. of wharfage in 20 ft. water less protected.

Weather and Navigation Conditions.—Prevailing wind in winter from E. and S. E. Harbour fully protected by headland (see plan).⁸ Ice in harbour is rare, occasionally 3″ to 4″. Drift ice in channel unknown. Prevailing winter wind carries ice on shore farther N. E. Occasional winter fogs never sufficiently dense to interrupt navigation.

Harbour Facilities.—Quite undeveloped, no mechanical devices. Before the war ships of 3 to 5,000 tons regularly loaded grain here to 19 ft. and completed cargo by lighter or at deeper ports. Hand-loading from wagons on quay siding, 2000 tons in 4 days. Railway siding runs full length of mole, also along frontage. 123 wagons can be placed for unloading approximately 2000 tons.

Proposed Improvements.—Includes additional wharfage construction, as shown by dotted red line on plan. Adjoining the harbour is a power station, with 10 m/m power line already built to quay—has 3 Diesel engines, 2-cylinder direct coupled to continuous dynamos of 440 volts. Each engine develops 120 h. p. Also two small steam nets, single-cylinder vertical water tube boiler, belt driven dynamos, each engine about 50 h. p. in order, but not at present in use. Considerable floor space for any necessary extension. New harbour improvements will include electrically-driven conveyor. This scheme is of course indefinitely suspended.

Pre-War Export and Import.—Records lost or destroyed during Bolshevik regime. Export was almost exclusively local wheat of world-famous quality. No extensive imports, principally harvesting machinery and commodities. At present exports and imports are negligible.

Wharfage Costs.—Grain in sacks, wagons to ship, 3/4 to 1 kopeck per pood; today for any cargo handling 75 kopecks to 1 rouble per pood. Labour is very scarce.

Shed and Storage Capacity.—On the quay sheds of 30,000 poods each and 9 sheds of 10,000 poods each—total 570,000 poods. In Berdyansk town covered in storage for 2,000,000 poods of grain. Also on quay 2 open sheds 450′ x 42′ approx., space for 2,000,000 poods of grain, in sacks under tarpauline. These sheds, with railway sidings alongside, offer good accommodation for entraining, detraining, or packing of artillery (light or medium) or wheeled transport etc.

Railway Facilities. Eailway sidings 7 versts, shown on both enclosed plans. Single line 06% gradient to Berdyansk main yard, 1½ versts with switch-back junction into main yard and storage sidings, single track north to Pologi, 110 versts and Chapline, 193 versts connecting east and west for all principal parts. Pre-war service to Ekaterinoslav 9 hours, Moscow 26 hours. Present traffic at Berdyansk one pair mixed daily, and an average of less than one pair daily of goods movement. This single line can handle 8 pairs per day satisfactorily.

Remarks. Berdyansk is a seaside resort with little sea-port development. It is however the only Azoff sea port that remains open all winter, having perfect shelter by its headland from the prevailing winter wind and drift-ice, also from silting. The concrete face on mole (red block line) has been completed during the war and increase quay-side depth by 2 to 3 ft. We can point out no other drawback to the usefulness of this small port than the absence of any floating or shore crane. The present suspension of grain export makes practically all wharfage railway and shed space available for any purpose.

Enclosures: Coloured plan showing existing harbour, with new concrete face in block red; also proposed harbour extension; plan allowing protective headland and channel required to reach 24 depth outside (14 versts) and to reach 22 ft. depth (10 versts 100 wagons) both plans show railway sidings.

F. H. W. Fox

.
Capt. R. E.
Railway Advisory Staff

R. L. Wheeler

Capt. R. E.
Railway Advisory Staff.

Made at Rostoff-on-Don , July 31, 1919.

mariupol port

July 21, 1919.

Pre-war depth 24 ft., at present 19 to 20 ft. Channel and main entrance are approximately north and south, and the prevailing east wind in winter silts that channel 4 ft. to 7 ft. annually. One dredger working at present.

Entrance. Blocked at present by two small steamers Tmutarakan 400 tons and Feodosia 200 tons, sunk by Bolsheviks in the entrance, leaving only 65 ft. opening (see diagram of entrance). Tmutarakan is being slowly moved inside and clear of entrance, to be raised later. To-day a clear passage of 160 ft.; in ten days or two weeks when Tmutarakan is quite clear passage will be 240 ft., full width is 425 ft.

Weather & Navigation Conditions. Prevailing winter winds from E. and S.E. considerable fog in November and Dec. Harbour freezes in Dec. and is kept open by ice-breaker—heavy drift ice in packs in channel Dec. to February.

Dockage. Two basins, designated grain basin and coal basin, each ordinarily navigable to 24 ft., now navigable to 22 ft. everywhere. Grain basin 2800 ft. wide, with 730 ft. wharfage on quay dividing the two basins, also a landing pier (No. 3) 375 ft. long. Coal basin 2835 ft. wide with a total wharfage of 4200 ft. All details are shown on plan, which also shows the repair basin, not yet completed for commercial use.

Harbour Facilities. For coal export:—Steel gantry with steam-driven cable (I on plan) clutch bucket trolleys 62 to 63 poods capacity 65,000 to 75,000 poods in 12 hours.

Wooden gantry with steam driven cable (III on plan) small clutch-bucket trolleys, 30 poods hand-propelled from top of incline, and hand-tipped, capacity 60,000 in 24 hours.

Two Howe and Barry (?) coal elevators (V& VI on plan) for 1000 pood open wagons only, capacity 8 to 9 wagons per hour each. (Claimed these two together loaded 7,000,000 to 10,000,000 poods per year before the war).

For grain export:—No mechanical devices, all hank-loaded in 3-pood and 5 pood sacks (and sacks emptied) wagon to ship or shed to ship.

Other facilities:—

One 30-ton Hydraulic crane (VII on plan), serviceable, but high pressure joints need renewing.

One 40-ton lighter Derrick, from which some parts have been taken, but no extensive damage done.

Six 1½ ton Electric Cranes, not in order.

In the Government Scheme a power station has been completed and is ready to deliver continuous current, but none of the present dock facilities are adaptable. Power station has two 500 h. p. steam turbines, and is at present lighting the town of Mariupol.

Shed & Storage. Closed storage for 2,000,000 grain—of this 600,000 is Ekaterininski Rly., 1,000,000 private interests and 400,000 is Govt, docks accommodation. The quay dividing the two basins has 3 large open sheds (with 3 more proposed), with railway sidings, quite suitable for an artillery or transport park etc., and convenient for entraining and detraining.

Pre-War Export & Import.

Export	Coal	Grain	Other
1909	65,071,301	25,169,580	11,930,261
1910	66,057,425	30,158,160	6,945,224
1911	69,620,049	24,101,841	14,551,093
1912	71,810,638	19,727,768	6,708,138
1913	64,120,939	20,025,148	8,376,520
1914	53,854,408	6,072,416	3,902,415
1915	17,457,756	93,352	1,013,538
1916	18,760,224
1917	18,476,068

Totals for other exports than coal not available for 1916/17, but were practically negligible. The coal export for 1916/17 was principally for the Russian Black Sea Fleet.

Import	Coal	Grain	Other
1909			15,963,211
1910			18,062,674
1911			18,259,784
1912		149,190	22,275,746
1913	3,688,922	141,133	20,610,921
1914	537,604	895,329	17,548,198
1915		4,609,624	7,650,866
1916
1917

Above all available information on imports, other totals lost or destroyed during Bolshevik regime.

Note:

The principal “Other” exports were iron, chalk and timber;

“ “ “ imports harvesting and industrial machinery, commodities, textiles, etc.

Present Goal Traffic: 60,000 to 85,000 poods per week, for British and Russian Naval forces. (Best weeks before the war 1,850,000 to 2,000,000.)

Present Wharfage Costs:

Steam coal	per	pood	30	kopecks
Anthracite	“	“	50	“
Briquettes	“	“	60	“
Grain in sacks, Wagon to ship	“	“	26	“
“ sheds “	“	“	52	“
Bulk grain, wagon to ship	“	“	30	“
“ sheds “	“	“	70	“

Railway Facilities & Connections: In the harbour are 42 versts of railway lines, clearly shown on plan; arrangement of lines is for the two principal exports, but at present offer considerable idle space for any purpose. Double-track connection at water level from port to Mariupol town depot, 4 versts, with double track north to Yusove connecting point for lines through Donetz Coal Basin, and all direction on Ekaterininski Railway Main lines.

Remarks: Harbour plan also shows in outline an extensive scheme for enlarging the harbour to the south-west, also for developing the repair-basin, as also proposed to equip the docks with electrically-driven conveyors, etc.

The scheme is now indefinitely suspended.

Enclosures:

Blue-print plan of Mariupol Port.

“ Entrance, showing obstructions and removal operations.

Blue print sketch of harbour and river-mouth, with navigation lights.

Details in Russian of navigable depth of channel, present obstructions at entrance, equipment of dredgers, lighters, cranes, etc., and a history of the harbour development and proposals. Tabulated information from Ekaterininski Rly. Station master at Harbour, showing export and import particulars from 1909, and including the totals and percentage handles through Ekaterininski Railway’s facilities, also cost of handling etc.

F. H. W. Fox

,
Capt. R. E.
Railway Advisory Staff

R. L. Wheeler

,
Capt. R. E.
Railway Advisory Staff.

Rostoff-on-Don , July 31, 1919

taganrog port

July 30, 1919.

Channel. Nominal depth 12 ft., to-day with R. Don flowing full and S. E. wind—14 ft.

Entrance. 399 ft. wide, channel approach from south, entrance is from E. S. E.

Weather & Navigation Conditions. Prevailing west wind (see diagram No. 3). The harbour freezes as early as November 16th, or as late as December 15th old style. Average thickness of ice in harbour 8 ins., maximum 12 ins. River drift-ice has been observed as early as October 27th (o. s.). Navigation usually re-opens end of April. Average duration of navigation 8 months 10 days. In autumn, with the river low, a N. and N. E. wind will drive all water out of the basin and channel to a distance to 10 versts.

Dockage. Three basins separated by moles, nominal water depth 12 ft. New basin 1540 ft. x 770 ft. Petrovski basin 1050 x 644 ft. Repair basin 1496 x 700 ft. The new basin is the outside basin forming a half circle and clear off the road its useful area is about 400,000 sq. ft. Has a 774 ft. long quay of which about 280 ft. is occupied by a coaling crane, refuse pits etc. This is known as the coaling quay. The Petrovski basin has on one side the Crown Quay 644 ft. long and the Form Quay 1050 ft. The grain shortage sheds adjoin its main frontage. The repair basin has a comparatively narrow quay 1496 ft. along its main frontage. On page 12 of prospectus herewith is a detailed statement of the areas and loading capacities of the various moles and quays. The whole area of the harbour territory is approximated 600,000 sq. fathoms and the 1914 distribution was as follows:—

Used by private firms, connected with Offices and workshops	10,285	sq.	fathoms
Occupied by Railway Lines and buildings of Ekateriniski Rly	11,004		do.
Occupied by different stone and brick buildings	4,010		do.
Occupied by quays and different roads	18,600		do.

Harbour Facilities. Other than the coaling crane no mechanical devices for loading or unloading. The prospectus shows that in 1914 two 10-ton cranes were removed from this port to Archangel and not replaced. 25 of the special shallow draft Azoff Sea steamers (70,000 to 80,000 poods each) can be accommodated for loading at once. Before the war 400 waggons per day of grain were unloaded by hand labour direct from ships.

Sheds and Storage. For coal export eight sheds capacity 480,000 poods. For grain export nineteen sheds and one roofed platform of a measured capacity of 1,845,000 poods. Private shed capacity of 2,168,000 poods, principally on Petrovski basin, and for the storage of grain arriving by road etc. in the town are 73 sheds with a storage capacity of 6,673,000 poods. For storage of kerosin the Nazut Society, Ltd. has 6 cisterns of a capacity of 73,200 poods

Pre-war export and import for the year 1914.

export

Wheat	48,152,460	poods
Barley	26,096,770	“
Rye	11,504,880	“
Oilcake	1,343,800	“
[Total]	88,549,820.

import

Oranges and lemons	320,774	poods
Tanninig materials	144,861	“
Salted hides	92,709	“
Turkish peas	46,349	“
Othert imports	31,658	“
Total	636,351	poods

Fuller details of exports and imports on pages 32 and 33 of the prospectus.

Present Wharfage Costs. Grain, wagon to ship, ½ kopeck per pood pre-war; now 56 kopecks per pood.

Railway Facilities. Single track 3,286 versts of railway connecting harbour with Taganrog Station. Gradient approx. 8% to 1%. In the port are 11,947 versts of sidings, clearly shown on enclosed plan.

Remarks. Grain export is at present quite suspended and storage space quite empty excepting a small amount of military stores. Coal export from this port had been discontinued before 1914. Grain and other export was also falling off, according to the 1914 prospectus. Presumably traffic was being withdrawn in favour of ports with more dependable navigation conditions.

Enclosures. Prospectus (in Eussian) giving full details of export and import traffic for 1914 with weather and water depth in channel and quay-side, etc., large coloured plan of Taganrog port and channel entrance with key.

F. H. W. Fox

,
Capt. R. E.
Rly. Advisory Staff.

R. L. Wheeler

,
Capt. R. E.
Rly. Advisory Staff.

Rostoff-on-Don , July 31, 1919.

[5. Letters and Report]

Economic Reconstruction of the South Russian Railways: Letter From Minister of Railways Asking for Loan of £20,000,000—Report on the Proposed Loan of £20,0000,000—Memorandum on the Proposed Credit—13/15th September, 1919

Translation

Administration of Ways and Communications,
Armed Forces, South Russia[, undated].

G. O. C.   B. M. M.

South Russia.

Your Excellency: The Administration of Ways and Communications begs to express its most sincere thanks for the powerful and generous assistance given by H. M. Government.

In the work of improving the Ways and Communications in South Russia it is quite clear that without such an assistance the transport could not be repaired, while it is of great importance in the matter of attaining the end of defeating the Bolsheviks, and creating a united Russia.

With regard to this fact a Railway Mission with Eng. Dournovo at the head, was sent abroad in the end of 1918, in order to obtain the most important materials and spares for a part of Russian Railways. Unfortunately there was a great delay in receiving news, and only very recently, viz in the beginning of August, the Administration of W. and C. received a telegram through the Russian Chargé d’Affaires, Mr. Nabokov (ref. number 482, dated 10/23rd July 1919) and a letter from Colonel Hull, the Railway Adviser of the British Railway Mission, dated August 8/21, 1919, advising us that the British War Office has granted a credit of £500,000 to acquire a very small number of not more than 1/15 (?) of required objects, which were listed in a schedule composed by Dournovo’s Mission and left in London with one of its members.

It appears that the railway supplies for this sum of money will soon be received here and distributed among the railways. However the amount is a mere trifle compared with the most urgent needs.

From the information which you have sent to General Denekin, the Administration of W. & C. was very pleased to learn that £5,000,000 worth of supplies had been despatched to Russia by H. M. Government. However having no direct information from our own agents in London and being afraid that such nice news may be a misunderstanding, the Adm. of W. & C. considers that it is its duty to point out again that all the railway material listed in the Schedule composed by Dournovo’s Mission represents an insignificant minimum of the needs which grow in accordance with the extension of the railway network, while the condition of the railways may become catas-trophical.

Considering your kind advice on the question of a possible credit on behalf of H. M. Government, necessary for the maintenance of Russian Railways, the Adm. of W. & C. begs your kind assistance in obtaining a credit of twenty million pounds sterling in order to purchase spare parts and materials etc. listed in the schedule as well as 1,000 locomotives and 10,000 trucks.

If H. M. Government has already granted a credit of £5,000,000 as General Denekin was informed, the credit applied for must be diminished accordingly.

I must add that the schedule mentioned deals with the most urgent needs and only a very limited number of the Russian Railways. With the expansion of the railway network which has to be dealt with by the A. F. S. R. the necessity for railway materials grows accordingly; moreover the railways taken over by the A. F. S. R. come under the administration in a most destroyed condition.

The administration of W. & C. will have the honour to present their new report as soon as the needs of the railways which were lately taken over, will be clear.

Meanwhile I beg to request your kind assistance in satisfying the above request.

Will you kindly inform me as soon as the result will be attained so that I could report to the C. in C.

Archenko

.
Engineer.
Minister of Ways and Communications.

The Secretary, Communications Section,
Supreme Economic Council, Paris.

South Russian Railways

Reference my T/139/2 on Economic Reconstruction and proposed loan of £20,000,000 sent with my T/140/1 of 14th September, I beg to enclose translation of the letter sent by the Minister of Ways and Communications.

Also re proposed credit of £20,000,000 it should be noted that £10,000,000 may be provided by the American Government if locomotives are supplied through them as suggested in our telegram to Troopers of 25th July 1919.

The item of £5,000,000 as noted in paragraph 6 of T/139/2 for reconstruction of railway locomotive work shops will be spread over a period of 5 or 6 years.

Thus the proposed credit required will be about four or five millions only as arrangements have been sanctioned or made for the two sums of £500,000 as noted in paragraphs 1 and 2.

F. R. Hull

Colonel R. E.
Railway Adviser to the British Military Mission.

Taganrog, 15 September, 1919.

Economic Reconstruction. South Russian Railways. Proposed Loan of £20,000,000 to A. F. S. R.

Headquarters, British Military Mission
Taganrog.

With reference to Major General Holman’s letter No. I. P. 1294, dated 14th August 1919, to General Denikin, and further correspondence with the Ministries of Finance and Ways and Communications concerning a proposed loan of Twenty million sterling, I have to report:—

1. H. B. M. Government has sanctioned the supply of railway repair material to the value of £500,000. This material has been indented for and the first deliveries, diverted from Trans-Caucasia, are expected per S. S. Amasis (Ref. W. O. tel. 25376).

2. H. B. M. Government has entered into an agreement with Messrs. Wm. Higgs & Co. whereby this firm delivers to General Denikin, commodities for the use of the railway workmen. It is understood the £500,000 worth of commodities will be supplied (Ref. W. O. telegram 78008 June 4th). The first consignments are now shipped to Novorossisk.

3. Additional railway material to the value of one million sterling, and one thousand locomotives, valued at about ten millions sterling, were asked for in telegram despatched to the War Office on 7th September.

4. Additional commodities to the value of two millions are still required and will complete the total of the materials listed on the Durnovo indent. (See section 2 of Col. Hull’s Report on Russian Railways, forwarded March 4th).

5. I am not quite in agreement with the demand for the supply of 10,000 new railway wagons, as I consider that the large number of wagons now awaiting repair can be put into traffic with improved labour conditions and organised repair work. Instead of sanctioning a credit for the supply of new wagons, I would suggest a credit of one million sterling for wagon repair material, and machinery etc. for additional wagon repair shops.

6. No scheme for the reorganisation of Russian railways would be complete unless provision is made for additional locomotive repair shops. The conclusion of the Bolshevik war will leave Russia with some 10,000 locomotives awaiting repair. The pre-war capacity of existing locomotive repair shops was 3,500 locomotives yearly and was inadequate. The conditions now are infinitely worse. A credit of Five millions sterling is therefore required for the provision of about six new locomotive repair shops and for the reorganisation of existing shops.

7. I have therefore to recommend that a credit of Twenty millions sterling is necessary for the reorganisation of the Russian railway svstem made up as follows:—

1.	Railway material indented for	£500,000
2.	Communications ex Wm. Higgs and Co.	500,000
3.	Additional railway material Co.,	1,000,000
	One thousand locomotives	10,000,000
4.	Additional commodities	2,000,000
5.	Wagon repair material and machinery	1,000,000
6.	New Locomotive repair Workshops	5,000,000
	Total	£20,000,000

Certainly one third and perhaps one half of this credit would be in the form of British machinery, manufactures and material.

8. The terms and conditions of the credit should define that it would be secured on the revenues and receipts of the State Government and other railways, the security of which is good. Also that the British Government should supply at the cost of the Russian Government, such expert advisers as are considered necessary for the reorganisation of the railway system, such advisers being endowed with adequate powers.

F. R. Hull

Colonel, R. E.
Railway Adviser to the British Military Mission

Taganrog , 13 September, 1919.

Appendix 305

Foreign Office, November 15, 1919.

[Letter From Mr. Gerald Spicer of the British Foreign Office to the British Council Officer, Supreme Economic Council]

Sir: With reference to the forthcoming meeting of the Supreme Economic Council in Rome on the 22nd instant, I am directed by Earl Curzon of Kedleston to transmit herewith copy of a letter from Mr. James Malcolm with enclosures from Boghos Nubar Pasha, relating to the situation of the Armenians in the Caucasus.

While Lord Curzon understands that the Relief Funds at the disposal of the Supreme Economic Council which could properly be applied to purposes of Armenian relief are exhausted, His Lordship considers it in the highest degree desirable that the urgent necessity of doing something to succour the Armenians in the Caucasus, of whom there are understood to be 300,000 refugees from Asia Minor alone in addition to the Armenian inhabitants, should be brought to the attention of the Supreme Economic Council.

Lord Curzon would point out that the destitute condition of these unfortunate people is to a large extent the consequence of the regrettable though unavoidable delay in the conclusion of peace with Turkey which prevents the re-establishment of settled conditions throughout Anatolia, which on humanitarian grounds, cannot be exaggerated, and the responsibility for which must to some extent be borne by the Allies themselves.

I am [etc.]

Gerald Spicer

[Enclosure]

58 Lombard Street,
London, E. C. 3, Nov. 8, 1919.

Under Secretary of State for Foreign Affairs,
Foreign Office, Downing Street, S.W. 1.

Sir: I have the honor to enclose herewith copy of letter I have received this morning from H. E. Nubar Pacha giving particulars of his interview with Colonel Haskell. Colonel Haskell’s views are doubtless already known to you but they indicate such a serious prospect in Armenia that I venture to express the confident hope that His Majesty’s Government will once more extend their generous assistance to avert the calamity with which such a vast number of Armenians are still threatened.

I have [etc.]

James A. Malcolm

[Subenclosure]

Armenian National Delegation,
12 Avenue du President Wilson,
Paris, November 6, 1919.

Dear Malcolm: I had today a very important conversation with Colonel Haskell, who expects to return to the Caucasus after handing in his report to the Conference, so as to be there before the end of the month. He does not think there is any reason to fear an attack of the Turkish forces of Moustapha Kernel during the winter. But he asks for equipments to clothe 20,000–30,000 Armenian troops who are defending the frontiers. These troops, which are ill clad, would not be able to endure the cold and would be compelled to abandon the frontier line and take refuge in the towns if they were not supplied with warm clothing.

Colonel Haskell also asks that the supply of 7,000 tons of flour which has been delivered each month thanks to Hoover’s administration, and which is to come to an end owing to lack of funds, may be continued until the harvest next August. These 7,000 tons are at present supplying the 300,000 refugees from Turkey and a considerable part of the population. There are only sufficient supplies left for one month, and if some means of continuing deliveries is not found, the result will inevitably be a famine and the extermination of 700,000 more Armenians. The matter is extremely urgent. He has telegraphed to America to give information of the gravity of the situation and to request that immediate steps may be taken. He has also asked us to telegraph and Aharonian and I at once sent very urgent telegrams.

Colonel Haskell undertakes to receive all clothing and other articles purchased with the funds obtained from the Antranik subscription, and to have them distributed to the refugees under his personal supervision. All packages must be addressed to him exactly thus:

Colonel Haskell,
Near East Relief,
Batoum.

This address is very important as everything addressed either to private persons in the Caucasus or to the Government of the Armenian Republic is held up at Batoum by the Georgians and does not reach its destination. It would also be well to advise Major Mac-Sweeney in advance of each new despatch. Major MacSweeney is Colonel Haskell’s agent at Batoum.

Yours [etc.]

Boghos Nubar

Appendix 306

Statement of the French Delegation [Regarding] Relations of the Supreme Economic Council With the League of Nations and the Reparation Commission

On the 30th August 1918 Lord Robert Cecil made a proposal in London for the constitution of a Great Inter-Allied Economic Council and the French Government concurred in this proposal. Nevertheless this council was not constituted at that time; the Allied Maritime Transport Council filled its place as far as possible. The French delegation is happy to see at this conference Mr. Salter who has been the mainspring of the A. M. T. C. in concert with Professor Attolico and M. Jean Monnet.

Before the Armistice, the French Government had declared its concurrence in the proposal to adapt to the necessities of the Armistice period the functions of various inter-Allied organizations. Unfortunately these proposals bore no fruit until the arrival of President Wilson when it was possible to constitute first the Superior Council of Supply and Relief and then the Supreme Economic Council.

After the Treaty of Peace had been handed to the Germans, a certain opposition to the continuance of the Supreme Economic Council manifested itself in certain quarters; the French Government demanded the continuance of the Council and finally on the 28th June a decision was taken by the Supreme Council recognising the necessity for continuing international consultation in economic matters until such time as the council of the League of Nations should be able to proceed with the examination of the economic situation.

As a result of this decision the draft of a Council no longer inter-Allied but international was prepared by the Supreme Economic Council. This proposal has not yet received the support of the American Government with the result that up to now no more has been done than simply to maintain the Supreme Economic Council.

The French Government is persuaded that inter-Allied economic co-operation must be continued. Such also is the opinion clearly expressed by the French Parliament.

The methods by which this co-operation is to be assured must naturally undergo certain modifications from the moment when the Peace Treaty entered [enters] into force. At that moment large inter-Allied or international organisations will come into being, among them the League of Nations and the Reparation Commission.

The French Government accordingly considers that the moment has come to consult the other delegations on the question of the relations of the Council with these new organizations.

Appendix 307

Note by the French Delegation [Regarding] Relations Between the Supreme Economic Comwil and the League of Nations

The French Delegation proposes to invite the Supreme Economic Council to consider the following questions:—

Which of the functions of the Supreme Economic Council resulting from the decisions of the Supreme Council of February 8th, 12th and 21st and of June 28th 1919 are intended to be continued after the coming into force of the Treaty?

To what extent does the Supreme Economic Council maintain, after the Armistice period, its functions relative to the provisioning of ex-enemy countries? What will be its relations with the Reparation Commission?

Do the Inter-Allied organisations and in particular the recent Food Supply organisations (Consultative Food Committee etc.) remain subject to the authority of the Supreme Economic Council?

Is the Supreme Economic Council to continue the mission entrusted to it by the decision of the Supreme Council of June 28th? Does this decision continue to have the same force now that the American Government has resolved not to maintain its representation on the Supreme Economic Council?

What attitude should be taken by the Supreme Economic Council after the constitution of the Council of the League of Nations and what will be its relations with the latter?

To what extent should the communication made by the American Government to the Reparation Commission (B. 143) influence its attitude? Although it does not consider it desirable to maintain the Supreme Economic Council, the American Government has no objection to the institution of a General Economic Commission attached to the League of Nations.

Nov. 15.1919.

Appendix 308

Resume of Mr. Salter’s Remarks on the Relations of the Supreme Economic Council With the League of Nations and the Reparation Commission

Mr. Salter reminded the Council that his remarks were not offered in the capacity of a British subject but from an international standpoint. He was, of course, unable to speak officially on behalf of the League of Nations since the League did not formally exist. There were, however, one or two considerations which he might recall to the attention of the Council.

The League of Nations would come formally into existence with the deposition of the ratifications of the Treaty by three of the Great Allied Powers; the first meeting would be a meeting of the Council of the League. Mr. Salter remarked that the constitution of the Council of the League was on a somewhat wider basis than that of the Supreme Economic Council, a non-allied nation (i. e. Spain) being represented upon it. The Council itself was obliged first to deal with the important political questions entrusted to it, e. g. the questions of Danzig and the Sarre basin, but it was probable that at an early meeting it would find it necessary to discuss the economic responsibilities of tjie League. As regards these economic responsibilities, it might be said in a general way that under its constitution the League had obligations to carry out some of the functions at present performed by the Supreme Economic Council, while it had the opportunity to extend further its sphere of competence. Mr. Salter instanced the question of the economic weapon against recalcitrant members of the League and also that of securing equal opportunities of commerce for all nations and freedom of transit for commerce. Speaking personally, Mr. Salter could not conceive it possible that certain of such functions could be effectively performed without some form of organisation offering opportunities for direct discussion between the economic ministers of the various countries concerned. While it was clearly necessary that the new form of organisation should be established upon a wider basis and that it should be in some sense part of the organisation of the League, it was not necessary that it should be so closely attached to the League as to interfere with its independence of deliberation or even of action. Mr. Salter quoted the instance of the labour organisation established under the auspices of the League, the freedom of whose action was not restricted as the result of its affiliation to the League.

Mr. Salter considered it of the greatest importance to call attention to some of the difficulties with which the Council of the League would be faced if it attempted to consider the economic responsibilities of the League. If the Council were to deliberate on the establishment of an international economic Council to be set up before the first meeting of the assembly of the League, it would be immediately faced with the difficulties presented by the existing political conditions in the United States. In these circumstances, it was possible that it might be convenient to the League if the Supreme Economic Council were to continue temporarily in existence in order that some form of international co-operation should be continued. It was quite possible that when the Council first met it would feel that, in view of the political situation, it could not enter upon any more ambitious policy of co-operation than that embodied by the Supreme Economic Council, but if the Council thus postponed a definite decision it was also possible that later the march of events might confront the Council with a situation offering no alternative but immediate action. The economic situation of Europe at the beginning of the winter of 1919/20 was already grave. The Council had already had experience of two of the most serious problems in the cases of Austria and Armenia. The situation was likely to be more serious at the end of the winter when the harvests of the previous autumn would be exhausted. Should the Council of the League find itself faced with such an urgent situation in the early spring of 1920 it was in the highest degree important that there should be in existence an international body ready and able to shoulder the immediate burdens imposed by the economic situation. The temporary prolongation of the existence of the Supreme Economic Council might ensure the existence of such a body.

Mr. Salter reminded the Council of a striking instance of the effects produced by the lapse of continuity in the economic organisation of the Allies. In November 1918 the Allied Maritime Transport Council, having regard to the economic situation of Europe, proposed to the various Governments that an Interallied Economic Council should be established. In consequence of certain dissensions to this view there was a delay of three months in the establishment of this body. The result of this delay was (1) that all German sea-going tonnage was immobilised for this period and (2) that as a result of this immobilisation the supply of foodstuffs to Germany was begun in April instead of in February, with political, economic and industrial results with which all the members of the Council were familiar.

The above was an instance of the effect of a lapse in organisation in the period between war conditions and Armistice conditions. Mr. Salter warned the Council against a repetition of such a lapse in the interim period between Armistice conditions and Peace conditions. In this connection he paid tribute to the attitude adopted by the French Government in all these questions on inter-Allied co-operation.

Finally Mr. Salter made four suggestions:

1. That the Supreme Economic Council should be continued until it was transformed into, or replaced by, a new economic body under the auspices of the League of Nations.

2. That the Supreme Economic Council should in the meantime occupy its time in obtaining possible information on the economic state of Europe calculated to facilitate the work of the new economic body.

3. That the Supreme Economic Council should, in order to facilitate more ambitious action if that should prove necessary, take all possible steps to prepare the public mind by means of a much greater publicity than that hitherto attempted by the Council.

4. That, with a view to obtaining the last two of the above objects, the Permanent Committee of the Supreme Economic Council should act in the closest liaison with the economic section of the League of Nations.

Appendix 309

Inter-Allied Scientific Food Commission: Resolution and Proposed Agreement Concerning the Creation of an International Scientific Food Commission, Approved by the Commission, Brussels, May 1919

Brussels Meeting, May 22/26, 1919

The Sixth Meeting of the Inter-Allied Scientific Food Commission was held in Brussels at the Palais des Academies on May 22nd/26th, 1919.

The First Meeting was opened by M. Wauters, Minister of Industry, Labour and Food assisted by M. Breuwer, his Secretary.

The delegates who were present at this meeting were:—

• American Delegation:—
  • Dr. Dana Durand, representative of the U. S. Food Administration, Professor of Political Economy at the University of Minnesota.
  • Dr. Alonzo Taylor, Private Secretary to Mr. Hoover, Director General of Food Supplies, Professor of Physiological Chemistry at the University of Pennsylvania.
• British Delegation:—
  • Dr. E. Starling, Professor of Physiology at University College, London, President of the Food War Committee of the Royal Society.
• Belgian Delegation:—
  • Dr. H. Rulot, Inspector of the Health and Hygiene Department of the Ministry of the Interior.
  • Dr. Slosse, Professor of Physiology at the Solvay Institute.
  • M. Gregoire, Director of the State Agronomical Station at Gembloux.
  • M. Gaspard, Director General of Home Produced Foodstuffs at the Ministry of Food.
• French Delegation:—
  • Dr. E. Gley, Professor at the College de France, member of the Academy of Medicine.
  • Dr. J. P. Langlois, Professor of the Faculty of Medicine of Paris, Member of the Academy of Medicine.
  • M. G. Wery, Agronomical Engineer, Director of the National Agronomical Institute, Member of the Academy of Agriculture of France.
• Italian Delegation:—
  • Sig. A. Manozzi, Director of the School of Agriculture at Milan.
  • Dr. Fil. Bottazzi, Director of the Physiological Institute of the Royal University of Naples.
  • Sig. C. Gini, Professor of Statistics at the Royal University of Padua.

Also present:—

• Permanent Central Secretariat of the Commission:
  • M. J. Alquier, General Secretary of the Scientific Society of Alimentary Hygiene, Head of the Permanent Central Secretariat.
• Attached to the British Delegation:—
  • Mr. J. H. Gorvin, Director of the Requirements Allied Food Council, Head of the National Sscretariat.
• Attached to the Italian Delegation:—
  • Sig. H. Scheggi, Deputy Head of the National Secretariat.

Resolution Adopted at the Meeting of May 22nd, 1919

In consequence of the conclusion of Peace, the Inter-Allied Scientific Food Commission which was founded to give information to the Associated Governments on all questions concerning the food supply which arose owing to the state of war, naturally ceases to exist.

The organisation which was set up for the work of the I. S. F. C. will, therefore, be dissolved immediately after the publication of the minutes of the meetings and, in general, of all the work of this Commission is completed. This publication should be completed in the last quarter of the current year.

After this period, the Associated Governments will not be called upon to make any expenditure for the I. S. F. C.

The delegates present at the Brussels meeting, in conformity with a resolution adopted at the Rome-Naples meeting held in December 1918, have decided once more to draw the attention of the various Associated Governments to the utility of preserving an International Institution entrusted with the duty of setting up scientific relations between the various organisations which investigate food questions.

The duties of this institution would be:—

(1) To study the production and distribution of foodstuffs for men and animals.

(2) To collect scientific and statistical information concerning the food requirements of man under various conditions of age, sex, work and climate, and according to social conditions, as well as information on the relation between diseases and insufficient nourishment as regards quality and quantity.

(3) To fix the chemical composition and calorific value of foodstuffs.

(4) To spread and popularise all information concerning the better utilisation of natural resources for the human food supply.

The proposed International Organisation would, as far as possible, make use of already existing institutions founded for any of the above mentioned aims, or any other aim which may be proposed. It will co-operate with any such institutions.

Proposed Agreement Concerning the Creation of an International Scientific Food Commission, Presented by Dr. Rulot, Belgian Delegate, Reporter, and M. Alquier, Head of the Central Permanent Secretariat, Adopted at the Meeting of May 23rd, 1919^*

The Under-signed Governments considering it desirable to substitute for the Inter-Allied Scientific Food Commission a Permanent Inter-national Scientific Food Commission, have resolved to conclude an agreement for this purpose and have decided on the following provisions:

agreement

Article I

The Contracting States with the purpose of co-ordinating and furthering the progress of all sciences relating to food and of facilitating their practical application, undertake to set up and to maintain at the common expense an Inter-national Scientific Food Commission with its seat at …^†

Article II

This Commission, which the Contracting States recognise, as the Inter-national official centre of Scientific investigations and research on food, shall:

(a) Collect and study all information, whether scientific, practical or administrative, concerning on the one hand the feeding of human beings, and on the other, the production and distribution of foodstuffs.

(b) Deliberate on the unification of scientific methods of investigation and research concerning the production and utilisation of foodstuffs, as well as on the choice of a system of units, allowing of the comparison of scientific works bearing on questions of food.

(c) Encourage experiments, systematic researches, and enquiries in the Contracting States; institute missions of investigations.

(d) Contribute with the assistance of the competent Administrations, Institutions and Associations to the development and popularisation of applied sciences concerning food and to make all necessary publications for this purpose.

(e) To put the Contracting States in a position to take advantage of the practical results achieved by science, so that each of them can, in complete independence and at such time as it thinks fit, take any measures which may be considered desirable in the general interest.

The resolutions of the Commission are in no way binding on the participating States.

Article III

Each participating State is represented on the Commission by one or more delegates chosen by itself.

These delegates are assisted by a National Secretariat.

Article IV

A Permanent Central Secretariat, having its seat at … is entrusted with the maintenance of close contact between all administrations, institutions and associations, pursuing the same ends as the Commission.

It acts under the direction and in the name of the Commission.

Article V

In order to co-operate usefully in the work of the Commission, the participating States which have no National Scientific Service of investigation and research on food undertake to set up, or organise, such a service.

Article VI

The French language is adopted for the minutes and publications of the Commission, but the latter may authorise the translation of its publications into other languages.

Article VII

All communications between the Commission and the Governments of the Contracting States shall take place through the Permanent Central Secretariat and the National Secretariat set up by Articles III and IV.

Article VIII

The contracting States shall at the beginning of each year pay their share for expenses to the Permanent Central Secretariat.

Article IX

States which have not signed the present agreement may later be admitted to it if they so desire, on condition, however, that they form part of the League of Nations or that their request be accepted, on the proposal of the commission, by a two-thirds majority of the Signatory Powers.

Article X

The present agreement is concluded for a period of 15 years.

At the expiration of this period it will remain in execution for another period of 15 years, except for States which, a week before the end of the period, have notified their intention of ceasing to apply it as far as they are concerned.

Article XI

A set of regulations is attached to the present agreement.

attached regulations

composition of the commission

Article I

Each contracting State notifies the other contracting States, as well as the Permanent Central Secretariat, of the decisions appointing its delegates the head of its delegation and the head of its national secretariat.

Article II

A State shall not appoint as its representatives on the Commission more than four delegates who shall be specialists in questions of food and food production.

Article III

The delegates, the Director of the Permanent Central Secretariat and the heads of the National Secretariats, set up by Articles III and IV of the agreement, have alone in principle the right to take part in the work of the Commission. Persons however, whose scientific collaboration may be recognised as useful by the Commission, may be consulted and may be present at meetings.

administration and working of the commission

Article IV

The Commission acts under the direction and control of a permanent bureau, chosen from among its members by secret vote.

The bureau is composed of a President and four Vice-Presidents.

The President and Vice-Presidents are elected for three years and are re-eligible.

The Director of the Permanent Central Secretariat fulfils the functions of Secretary to the Commission. He takes part in deliberations with a Consultative voice.

The nominations of members of the bureau and of the director of the Permanent Central Secretariat are notified to the Contracting States by the Ministry of Foreign Affairs of . . . . (the country in which the Commission sits).

Article V

Each contracting State, whatever may be the number of its delegates, has, for nominations by secret vote and for votes concerning international questions, or internal questions affecting the Commission, a fixed number of votes, as well as a fixed number of contributive shares to pay, according to the two following progressions in proportion to the number of its population:

Group	Population in millions	Number of votes	Number of con-tributive shares
1	Over 20	5	10
2	15 to 20	4	7
3	10 to 15	3	5
4	5 to 10	2	3
5	Under 5	1	1

Article VI

If a contracting State wishes to extend the benefit of the agreement to one or more of its non-autonomous colonies the number of votes and contributive shares to be attributed to it, shall be fixed according to the number of its total population, including that of the said colonies.

All autonomous colonies are regarded as States.

Article VII

Nominations by secret vote, votes concerning international questions and internal questions affecting the Commission, are made by delegation in the alphabetical order of the names of the States, each delegation disposing only of the number of votes fixed by Article V of the present regulations.

The decisions of the Commission are made by a majority of the votes of the States which are present or represented, on condition that the number of votes is equal to, at least, one-half plus one of the total votes belonging to all the contracting States.

When a State is unable to send a representative to a meeting of the Commission, it is allowed to authorise the representative, or representatives, of another State to dispose of the number of votes allotted to it by Article V of the present regulations. The Commission receives the authorisations of this delegation of votes.

Article VIII

The President of the Commission, or the member of the bureau acting as his deputy, convokes the bureau on dates fixed in advance by the latter or in the case of necessity.

The resolutions of the bureau are made by a majority of the members present. A proportion of three out of five is needed to form a quorum. If this number is not reached, the bureau will be convoked again after at least a fortnight and its deliberations will then be valid, whatever is the number of members present.

In case of an equal number of votes, the President of the meeting has a casting vote.

Article [IX?]

The general assembly meets at the seat of the Commission and is convoked by the President at least once every three years.

Its agenda is fixed by the Bureau and communicated to the delegates in reasonable time before the meeting. Any written proposition submitted by a delegate must be inserted.

The general assembly receives reports on the acts and financial situation of the Commission, approves the accounts for past expenses, votes the budget for future expenses, decides on legal action, gifts and legacies, acquisitions, alienations, the investment of available capital in conformity with the laws of … (the country where the Commission meets).

It fixes within the limits provided for by Article XI the value of the contributive shares of the various States and provides for the nomination of members of the Bureau whenever necessary, and the nomination of the Director of the Permanent Central Secretariat.

It discusses the work accomplished since the last meeting and the work to be undertaken in future as well as all questions upon the agenda.

The report of the financial situation of the Commission is laid before a Sub-Commission of Auditors, composed of three members elected by secret vote by the General Assembly. The report of the Auditors is laid before the general assembly.

The Governments of Contracting States receive all the annual reports. They will also be notified of the budget for future expenses, as well as of the total of the unit of shares fixed by the Commission, as soon as possible.

The number and duration of meetings are not limited.

The Commission has right of deliberating by correspondence between two meetings. In this case the decision will only be valid if all the delegations have been asked for their opinion and if at least half of them have communicated their reply within the period fixed.

permanent central secretariat of the commission

Article X

The functions of the Permanent Central Secretariat will be carried out according to the conditions laid down in the internal regulations, as will be stated in Article XIII of the present regulations by a paid staff who will be expected to devote themselves exclusively to the service of the Commission and will include:

• A director chosen by secret vote by the Commission. He may be removed by the Commission at the proposal of the Bureau.
• Heads of Departments.
• Officials and employees, to the number required.
• The composition of this staff is international.
• The director nominates and removes heads of Departments and employees, as well as subordinate staff, acting, however, in agreement with the Bureau as regards the heads of Technical Departments.

finance

Article XI

The expenses of the original establishment of the seat of the Commission, as well as the annual expenses necessary for the working of the Commission and the Permanent Central Secretariat including the travelling expenses of the delegates, as well as the fee for presence for each of the latter for every meeting at which they are present, are covered by

(a) The contributions of the Contracting States fixed according to Art. V. of the present regulations.

(b) All subscriptions, gifts and Legacies which may be made to the Commission and which the latter has accepted and received, in conformity with the laws of … (the country where the Commission meets).

The amount corresponding to one contributive share shall not exceed … Francs, the normal contribution of each State thus being less than … Francs, whatever its population may be. A State may, however, give a larger contributive share than that corresponding to the number of its population.

The expenses necessary for the working of the Commission are estimated at … Francs, and this amount cannot be exceeded without the consent of the Contracting States.

As a provisional measure, the budget of the Commission for the first two years shall not exceed … Francs.

The general assembly of the Commission shall each year, at the proposal of the Bureau, fix the total of the unit of the contributive shares for the period until the next meeting.

The value of this unit shall not be modified in the interval.

Article XII

Payments and receipts will be carried out by an Accountant forming part of the staff of the Permanent Central Secretariat on an authorisation signed by the President of the Commission, or his representative, and the Director of the Permanent Central Secretariat.

internal regulations

Article XIII

The Director of the Permanent Central Secretariat makes all internal regulations necessitated by the execution and extension of the agreement and of the present regulations. He must submit them to the Bureau for approval.

Article XIV

The present regulations have the same force and validity as the agreement to which they are attached.

Appendix 310

Recommendation by the Permanent Committee, Nov. 12th, 1919

The Permanent Committee recommends that this⁹ is a matter of general international interest and suggests that the question should be referred by the Council to the Council of the League of Nations, with a recommendation that the question of the formation of some such international Scientific body might well be considered in connection with the future of the International Institute at Borne and stating experience has shown that physiological enquiries of this nature undertaken during the War by the Allied Governments, possessed and still possess very considerable interest and utility and should, in some form or another and by some international body or another, be continued in the interests of Europe as a whole.

Appendix 311

Note by the Permanent Committee [Regarding] German Exports to Turkey

Under Article 23^* of the Armistice with Turkey, that country is obligated to cease all relations with the Central Powers. Consequently, it has been decided that German ships are not to be allowed to trade to Turkey, and the Allied High Commissioners have forbidden the import into Turkey, in allied or neutral bottoms, of any German goods which have been shipped at German ports. Moreover, Turkish goods have been forbidden to be shipped to German ports in allied or neutral vessels. The Allied High Commissioners are also considering the prohibition of the import into Turkey of German goods embarked in ports outside Germany.

The grounds upon which these measures have been taken are (1) the importance of avoiding any weakening of the allied position in Turkey by allowing a breach of the Armistice terms, and (2) the desirability of excluding German goods from Turkey. Further, it is argued that German agents or business men entering Turkey do so as much in a political, as in a business, capacity. It is understood that the allied High Commissioners at Constantinople take a very strong view of this question.

On the other hand, in view of the very considerable interest shared by the Allies in the rapid economic recovery of the countries which are under reparation obligation to them, it would appear inexpedient, except on political grounds of high importance, that restrictions of this nature should continue to be imposed. It is, therefore, suggested that the Supreme Economic Council should consider this question with a view to dividing [deciding] whether or no a recommendation should be made to the Supreme Council in Paris that Article 23 of the Turkish Armistice Terms should be overridden.

November 12, 1919.

Appendix 312

[Here is omitted a report submitted by the French delegates, November 22, 1919, relative to trade restrictions in various European countries. The report consists principally of long lists of the specific articles affected by the import or export regulations of the countries treated.]

1. See HD–64, minute 5, vol. viii, p. 462.
2. Colonel Logan telegraphed the Department on October 3 and again on October 19 regarding the appointment of an arbitrator. Secretary Lansing replied in telegram No. 3687, November 6, 5 p.m., that “Consideration of the person to be appointed arbitrator when we have ratified the treaty is under way.” (Paris Peace Conf. 185.1521/69, 71a, 77.)
2. Ante, p. 602.
3. See HD–94, minute 2, vol. ix, p. 188.
4. See HD–108, minute 1, ibid., p. 505.
4. See HD–93, minute 5, vol. ix, p. 180.
5. See HD–108, minute 1, ibid., p. 505.
6. See HD–108, minute 1, vol. ix, p. 505.
7. See HD–108, minute 1, vol. ix, p. 505.
5. See BC–26, minute 5, vol. iii, p. 934; BC–30, minute 1, ibid., p. 1001; BC–36, minute 4, vol. iv, p. 62; CF–97, minute 8, vol. vi, p. 741.
6. See minute 294, p. 499.
7. Not included. Will be circulated later. [Footnote in the original. Appendix 312 is not here printed; see note concerning appendix 312, p. 674.]
6. See minute 280 (c), p. 496.
7. See minute 312, p. 565.
8. None of the plans or enclosures mentioned are attached to file copy of these documents.
9. The I. S. F. C. decided unanimously at its meeting of May 22nd, 1919, that this proposal should be presented by the different delegations to their respective Governments for examination and eventual action. [Footnote in the original.]
10. The I. S. F. C. at its meeting of May 23, 1919, fixed on Brussels as the provisional seat of the Permanent Inter-national Scientific Food Commission until the League of Nations, to which it appeared that the proposed Commission might be attached, should have entered upon its functions, [Footnote in the original.]
9. See appendix 309, supra.
10. Article 23. Obligation on the part of Turkey to cease all relations with the Central Powers. [Footnote in the original.]