Paris Peace Conf. 180.0501/5
Supreme Economic Council: Fifth Meeting Held at the Ministry of
Commerce [on 6th March, 1919, at 9:30 p.m.]
March 6, 1919,
9:30 p.m.
The Supreme Economic Council held its fifth meeting on 6th March 1919 at
9.30 p.m. under the Chairmanship of M. Clémentel.
The Associated Governments were represented as follows:—
| Great Britain |
Lord Robert Cecil |
|
Sir Wm. Mitchell Thomson |
| U. S. A. |
Mr. McCormick |
|
Mr. Hoover |
|
Mr. Norman Davis |
|
Mr. Baruch |
|
Mr. Robinson |
| France |
M. Loucheur |
|
M. Boret |
|
M. Vilgrain |
| Italy |
Signor Crespi |
|
Signor Chiesa |
|
Signor Pirelli |
24.
The Minutes of the 2nd, 3rd and 4th Meetings of the Council were
considered.
The Minutes of the 2nd Meeting were approved subject to an amendment to
Minute 11 which should read as follows:—
“With reference to Minute 3 [5?]—the
American Delegates reported that it had been decided for the
present to withdraw the proposal that all foodstuffs to Northern
neutrals should be placed on the non-rationed
list.”
25. Austrian Trading With
Neutrals.
As regards the Minutes of the 3rd and 4th Meetings Mr. Hoover referred to
the discussion which had taken place regarding Austrian Trading with
Neutrals and reported that some doubt existed as to whether or not a
decision had been taken.
It was agreed that Austria in general should be afforded the same
opportunity of trading with Neutrals and be placed in the same position
regarding the Blockade as Germany under the provision of the reports of
the Finance Section and Blockade Section already adopted.
26. Instructions to Delegates at Spa
Conference.
With reference to Minute 20, Mr. Robinson requested that Clause 4 of the
Financial Instructions given to the Associated Delegates at the Spa
Conference might be amended as follows:—
[Page 41]
“… any costs being charged by the Associated Government providing
the Shipping against credits available for the purpose accruing
to the German Government from such Associated Government in
respect of the German Mercantile Marine under the management of
the Associated Governments.…”
Agreed.
It was further agreed, that the words “from such associated government”
be inserted after the words “accruing to the Austrian Government” in
Minute 23, Clause 4 (Ex. 15) “Argentine Cereals for Austria.”
27. Supplies for Germany.
- (a)
- A draft resolution (15) proposed by the British Delegates
embodying instructions to be given to the associated Delegates
regarding the conditions on which the Associated Governments would
be prepared to negotiate for the Supply of foodstuffs was
submitted.
- (b)
- Telegram from Mr. Wise dated 6th March (16) reporting that the
negotiations with the German Delegates at Spa had been suspended for
the time being was read.
It was agreed that as the Associated Delegates were returning from Spa
immediately the situation should be considered at a special meeting of
the Council to be held on Friday, 7th March at 12 noon.
28. Supplies for Italy.
With reference to Minute 10 the position as regards the deficiency on the
Italian food and coal programmes was further considered and Signor
Crespi again impressed upon the Council the gravity of the Italian
situation and the necessity for the immediate provision of additional
supplies.
It transpired that the financial difficulties having been partly adjusted
the serious shortage of tonnage still prevented a satisfactory solution
of the problem particularly in view of the fact that Professor Attolico
had reported that his negotiations in London for the chartering of
vessels either direct or through the Wheat Executive had met with no
success.
It was agreed:—
- (a)
- to refer the matter back to the Shipping Section for further
consideration.
- (b)
- to request the Shipping Section to make as complete a survey
as possible, within the limits of time at its disposal in view
of the urgency of the situation, of the uses to which the
tonnage at the disposal of the Associated Governments is being
put and to prepare a statement explaining the great decrease in
the number of boats available and indicating what prospects
there were of obtaining sufficient tonnage for the execution of
the Allied Food and Relief Programmes.
- (c)
- to discuss the matter further at the meeting of the Council to
be held on Monday 10th March.
29. Supplies for France.
With reference to Minute 10, and on the request of the French
delegates:—
It was agreed, that the question of the French programs should be
similarly referred to the Shipping Section with a request for a report
at the meeting of the Council to be held on 10th March.
30. Relaxation of the
Blockade.
Replying to an enquiry from the British Delegates regarding the raising
of the Blockade on countries bordering on the Adriatic Sea Mr. McCormick
stated that the Superior Blockade Council had already agreed to this in
principle but that doubt had been expressed as to their authority to
take a decision on the matter in view of the fact that the Armistice
terms and naval questions were involved therein and that it had been
decided to make a recommendation on the point to the Supreme Economic
Council.
It was agreed:—
- (a)
- to adopt the recommendation of the Superior Blockade
Council.
- (b)
- to report the matter for final approval to the Supreme War
Council at their meeting to be held on 7th March.
- (c)
- to enquire of the Supreme War Council at the same time whether
the terms of reference of the Supreme Economic Council were
intended to convey that the Council was authorized to take
decisions and act upon them, in respect of such similar
questions as might arise in future, without referring them to
the Supreme War Council for confirmation.
31. Report of Communications
Committee.
(a) Report of the Proceedings of the Meetings of
the Communications Committee held on 4th and 5th March (17) was
submitted and in view of the fact that it was not possible to circulate
the papers before the meeting deferred for consideration at the meeting
of the Council to be held on Monday, 10th March.
It was agreed that in the meanwhile the Finance Section should be
requested to consider the proposals put forward by the Communications
Committee with a view to making recommendations to the Council regarding
the financial responsibilities involved therein.
(b) Memorandum (18) setting forth the conditions
on which foodstuffs might be sent to Czecho-Slovakia by way of the Elbe
and the Rhine was submitted and approved.
32. Preliminaries of Peace.
The French Delegates referred to the decisions reached by the “Council of
Ten” at their Conferences on the 12th (19) and 21st
[Page 43]
February (20) regarding the economic
measures to be taken in connection with the preliminaries of peace
during the period of reconstruction after the war and suggested that the
matter should receive the immediate consideration of the competent
sections as any recommendations which the Supreme Economic Council might
desire to make would have to be submitted to the “Council of Ten” on or
about 15th March.
It was agreed to refer the matter to the Food and Raw Material Sections
for consideration, with a request for recommendations at the earliest
possible date.
Appendix 151
Draft Resolution Regarding the
Terms on Which the Associated Governments Would Be Prepared To
Negotiate for the Supply of Foodstuffs to Germany
A telephone message has been received from Spa to the effect that the
German Delegates arrived with instructions from their Government not
to commence the surrender of their ships until they had received a
guarantee as to the provision of food up to the harvest.
The German Delegates were informed that unless they could secure
modifications of these instructions from their Government, the
Delegates of the Associated Governments would return to Paris at 4
p.m. on Thursday, the 6th March, without continuing the
negotiations.
The German Delegates cable[d] Weimar, but no information has yet been
received as to the answer of the German Government.
In the meantime, our Delegates are extremely anxious to know exactly
how far they can go in the direction of making a statement as to the
provision of food (after the instalment already authorised) for the
further period to the harvest.
For this purpose the British Delegates desire to move a resolution
that authority should be given the Associated Delegates to make a
statement to the following effect:—
“It is our intention to provide food up to harvest, and we
are prepared to begin to negotiate for the necessary finance
as early as possible. In our view, food must be paid for as
far as possible by export of German products, such as coal,
potash, dyes, timber. We hope that the Germans will be able
to furnish us with full materials for negotiation on this
basis. It is essential, however, that substantial progress
should first and at once be made with the surrender of
vessels without waiting for negotiations as to finance of
later instalments of food. As soon as the Associated
Governments are satisfied as to the sincere intention of the
German Government to surrender their
[Page 44]
ships, as evidenced by the commencement
of their delivery, the food paid for and at present at
Rotterdam will be at once released for
Germany.”
Appendix 16
Cablegram Received From Mr. Wise,
March 6, 1919
Goode, Majestic, Paris.—German Delegates
informed us this evening that, after further communication, Weimar
Government maintained position that ships could not be surrendered
until definite agreement for provisioning Germany until harvest.
Hope replied impossible continue negotiations on this basis, as
instructions to us quite clear on point that ships must be first
surrendered. We leave for Paris early morning and expect arrive
Thursday night. Suggest meeting Supreme Economic Friday to consider
situation.—Wise.
Appendix 17
Report of the Meetings of the
Communications Section, Held on March 4 and 5
The meetings of the Communications Section on the 4th and 5th March,
1919, require the following decisions to be made:—
Allocation Between the Allied
Powers of Countries To Be Assisted
1. The Communications Section recommend the following allocation of
countries to be assisted:—
| America |
Line of Communications, Adriatic to Prague. |
|
Jugo-Slavia, including Serbia. |
| Great Britain |
Poland. |
|
Don and Caucasus. |
|
Baltic Provinces. |
| France |
Greece. |
|
Turkey in Europe. |
|
Ukraine and Donetz. |
| Italy |
Austria. |
|
Hungary. |
2. No decision was arrived at in the allocation of the following
three countries:—
- (a)
- Roumania.
- (b)
- Bulgaria.
- (c)
- Czecho-Slovakia.
[Page 45]
(a) Roumania.—General
Gassouin considered that Roumania ought to be assisted by France,
for the following reasons:—
- (1)
- The whole of the Balkan Peninsula is an area which should
be assisted by one Power; it would be illogical to make
France responsible for assisting Greece and Ukraine without
at the same time giving her the means of communication
between these two countries through Roumania (and
Bulgaria).
- (2)
- We have actually in operation rapid communication with
Roumania by railway (via Paris-Bucharest), whereas Great
Britain can only get there very much more slowly by sea;
moreover, it appears more logical to reserve maritime
tonnage for troop movements.
- (3)
- France also has already on the site troops and missions of
every kind, of which one is a railway mission organised by
General Franchet d’Esperey, and in this connection one
should remember the sacrifices France has already made for
the instruction and maintenance of the Roumanian
Army.
General Mance stated that before and after the German occupation
England has had a mission of technical officers in Roumania itself,
who have been working exactly on the lines required by the
Sub-Commission. They have examined on the ground the lists of
material required urgently by the Roumanian railways; the despatch
of this material is awaiting financial sanction by the British
Treasury. The Communications Section is the outcome of the British
action in Roumania, and it would be anomalous to start its labours
by suppressing all the work that had already been done.
As a compromise, General Mance suggested that the Mission to be sent
to Roumania should be a joint Anglo-French Mission.
General Gassouin refused this on the grounds of what had been already
decided at the first Conference, namely, that each country should
only be assisted by one of the Allied Powers.
(b) Bulgaria.—General
Levi stated that he had received instructions from his Government to
ask that Bulgaria should be allotted to Italy.
General Gassouin objected to this demand for the reasons given above
for Roumania, viz., that France desires the countries she assists to
be situated in one compact group, namely, Greece, Bulgaria,
Roumania, and Ukraine, so as to have uninterrupted communications
between these countries.
(c) Czechoslovakia.—The
representatives of Marshal Foch stated that they had been instructed
to ask for the allocation of Czechoslovakia to France. The American
representatives considered it was essential that Czecho-Slovakia
should be assisted by the Americans, for the reason that the latter
had already studied the wants of this country as well as their means
of communication. Also, as the
[Page 46]
Americans are already feeding the Czecho-Slovaks, it appears
logical that they should be in a position to continue this work.
The representatives of Marshal Foch wished no decision to be reached
regarding the allocation of Czecho-Slovakia until they had had time
to communicate with Marshal Foch.
3. An early decision is required therefore as regards—
- (a)
- Countries about the allocation of which the Communications
Section is agreed,
- (b)
- The allocation of Roumania, Bulgaria, and
Czecho-Slovakia,
so that arrangements may be made at once for the
Technical Missions to function, pending financial sanction, for the
supply of material.
Appendix 18
Proposals for the Transport of
Foodstuffs to Czecho-Slovakia by Way of the Elbe and the
Rhine
The Blockade, Food, and Communications Sections recommend to the
Supreme Economic Council that foodstuffs might be sent to
Czechoslovakia, both by way of the Elbe and the Rhine, under the
following conditions:—
- (a)
- Any quantity to reach Czecho-Slovakia to be deducted from
quantities allowed to Germany by the Supreme War
Council.
- (b)
- As regards the Elbe route:
- 1.
- Storage and transshipment at Hamburg to be under
naval protection approved by the Associated
Governments.
- 2.
- At any given moment not more than 8,000 tons to be
in transit up river.
- 3.
- Proper control and surveillance to be exercised by
the Czechoslovaks over transshipment at Hamburg in
conjunction with the naval authorities and in
transit on the Elbe.
- (c)
- As regards the Rhine route:
- 1.
- Storage and transshipment at Rotterdam and/or
Antwerp, and subsequent transit to the point of
transshipment to rail to be made by Allied or
Associated bodies and by the Inter-Allied Rhine
Commission.
- 2.
- Proper control and surveillance by Czecho-Slovakia
over railway transit from Rhine ports.
- 3.
- Limit of quantity in transit by rail at any given
moment to be fixed later.
Note.—Italy will furthermore do her utmost
to concur in the supply of foodstuffs to Czecho-Slovakia over the
Trieste route.
[Page 47]
Appendix 19
Decisions Reached by Council of Ten
on February 122
The Supreme War Council agrees that:
- 1.
- As a condition of the renewal of the Armistice, Marshal
Foch shall stipulate that the Germans shall desist from all
offensive operations against the Poles, whether in Posen or
elsewhere.
- 2.
- The Armistice with Germany shall be renewed for a short
period terminable by the Allied and Associated Powers at
three days’ notice.
- 3.
- Detailed and final naval, military, and air conditions of
Preliminaries of Peace shall be drawn up at once by a
Committee, to be presided over by Marshal Foch and submitted
for the approval of the Supreme War Council; these, when
approved, will be presented for signature to the Germans,
and the Germans shall be at once informed that this is the
policy of the Associated Governments.
- 4.
- After the signature of these Preliminaries of Peace,
Germany will be permitted to receive such controlled
quantities of food and raw materials for the rehabilitation
of her industry as shall be deemed just, having regard to
the prior claims of Allied countries, especially those on
whose industries Germany has deliberately inflicted
damage.
- 5.
- The question of the quantities of food and raw material to
be allowed to Germany after the signature of the
preliminaries of Peace shall be referred to the Economic
Council for examination and report.
Appendix 20
Decisions Reached by Council of Ten
on the 21st February3
The Council decided to refer the transitory measures to the Economic
Council, formed by the Conference in accordance with the proposal
made by President Wilson.
The terms of reference regarding transitory measures were as
follows:—
To consider what economic measures, if any, should be taken
in common during the period of reconstruction following the
war, with a view to ensuring:—
- (a)
- The due supply of materials and other commodities
necessary for the restoration of devastated
areas.
- (b)
- The economic restoration of all the countries
which have suffered most from the war.
- (c)
- The supply of neutral and ex-enemy countries,
without detriment to the supply of the needs of the
Allied and Associated countries.
