Paris Peace Conf. 180.0501/9
Supreme Economic Council: Ninth Meeting Held at the Ministry of
Commerce [on 22d March, 1919, at 2:30 p.m.]
March 22,
1919, 2:30 p.m.
The Supreme Economic Council held its Ninth meeting on Saturday 22nd
March, 1919, at 2:30 p.m. under the chairmanship of M. Clémentel.
The Associated Governments were represented as follows:—
Great Britain |
Lord Robert Cecil |
|
Sir W. Mitchell Thomson |
|
Mr. Keynes |
|
Sir H. Llewellyn Smith |
|
Mr. E. F. Wise |
U. S. A. |
Mr. McCormick |
|
Mr. Hoover |
|
Mr. Norman Davis |
|
Mr. Baruch |
|
Mr. Robinson |
France |
M. Loucheur |
|
M. Vilgrain |
Italy |
Signor Ciuffelli |
|
Professor Attolico |
|
Count di Cellere |
49. Exports to Germany.
The question of the prohibited list of German exports under Article 4
Appendix II of the Brussels Conference 13th and 14th March,1 and of conditions to
be established regarding the export of commodities by Germany, were
discussed.
It was agreed that, subject to final confirmation of the position of the
French Government in the matter, the editing of the telegram to be sent
to the German representatives in accordance with the Council’s tentative
decision, should be left to a sub-committee consisting of a
representative of each of the Associated Powers, which should meet on
23rd March, at 11:00 a.m. The Delegates undertook to notify the
Secretaries of the appointments to this Committee in order to permit
notification of its membership by the first post on 23rd March.
It was further agreed that, in the event of failure of final agreement,
the questions should be referred to the Supreme War Council for
decision.
[Page 76]
50. Finance Section Report Regarding
Administration of Brussels Agreement.2
A report of the Finance Section dated 20th [19th]
March, 1919, regarding the administration of the Agreement with the
Germans at Brussels (33) was submitted.
It was agreed that the first and third resolutions of the report should
be adopted. It was noted that action had already been taken regarding
the second resolution.
51. Blockade Section Report.
A memorandum from the Blockade Section, dated 20th March, 1919, regarding
the interpretation of certain clauses of the report of the Brussels
Conference (34) was submitted. The inquiries and requests in this
memorandum were agreed as follows:—
- I
- (Appendix clause 4).
- (a)
- That Germany shall be permitted to export all
commodities except those on the prohibited list to all
countries of the world, including the Associated
Countries and not merely the Neutral Countries, subject
to the right of any country to make municipal
limitations as to imports from Germany.
- (b)
- That the imports of food stuffs may take place from
countries other than those in which German credits are
created by the export of permitted commodities; and it
was further agreed that the Finance Section should
consider and report upon the manner in which the
transfer of credits is to be effected.
- (c)
- That Germany shall be permitted to continue without
control the exports across the frontiers into contiguous
Neutrals which they had been permitted to make during
the period of war under existing arrangements, but that
these exports should not include gold and
securities.
- II
- (Appendix 3, clause 3).
- (a)
- That the Blockade Section would be furnished as soon
as possible with the German reports regarding the
materials required for increasing the German Coal
output.
- (b)
- That the Council should insist that the Germans should
give special rations to coal miners and other hard
workers.
- III
- (Appendix 3, clause 8).
- That no report was as yet available regarding the operation of
the machinery for control of the foodstuffs imported into
Germany, but that the Blockade Section would be informed as soon
as possible.
- IV
- (Appendix 3, clause 4).
- (a)
- That, with a view to assisting Germany to obtain
credits in Neutral Countries for the purchase of food
supplies, in accordance with the promise of
consideration given by the Delegates at Brussels, the
Associated Governments should inform Germany that
immediate [Page 77]
announcement will be made that no firm in any neutral
Country will in the future incur the penalty of
blacklisting solely because it has
- (a)
- exported foodstuffs to Germany within the
limits approved by and in accordance with the
regulations of the Associated Governments.
- (b)
- afforded credits to Germany for the purchase
of such foodstuffs.
- (c)
- imported goods permitted by the Associated
Governments to be exported from Germany.
- (b)
- That the question of permitting Germany to negotiate
with blacklisted firms should be referred to the
Blockade Section to devise means whereby blacklisted
firms in neutral countries or other approved territories
should be permitted to carry on trade with Germany for
the purpose of creating credits to be used in the
purchase of food stuffs as agreed at the Brussels
Conference, but subject to the approval of the Blockade
Authorities.
- V.
- That the vegetables and fish referred to in Appendix 4, Clause
2 should be in addition to the ration of 370,000 tons and that
the vegetables include all kinds.
52. Report of Food Section.
A report of the Food Section, dated 20th March, 1919 (35) regarding the
administration of the Brussels Agreement3 was submitted.
In connection with Clause 1, it was agreed that it was unnecessary to
appoint representatives of the Finance Section at Rotterdam.
In connection with Clause 2, it was noted that Naval Authorities have
already been advised regarding the removal of restrictions on German
fishing in the Baltic. It was agreed that the Blockade Section should
immediately take the necessary steps for the relaxation of the
quantitative restrictions on the import of fish from Scandinavian
neutrals.
In connection with the arrangements regarding the provisioning of the
left bank of the Rhine, it was noted that the German representatives
objected to the supplementary food supplies brought in by the Allied
Armies being financed by them. It was agreed that this matter should be
referred to the Finance Section and to the Rotterdam Food Commission for
adjustment between them and the representatives of the Allied
Armies.
With reference to Clause 4, it was noted that the Naval Authorities have
already been advised respecting the undertaking by the German Government
to give facilities and protection to shipments through German ports and
inland routes to Czecho-Slovakia and Austria.
With reference to Clause 5, it was agreed that communications by the
Germans to foreign countries for the purpose of purchasing food [Page 78] stuffs from neutrals should go
through the Rotterdam Food Commission.
53. Report of Shipping
Section.
A report of the Shipping Section, dated 20th March 1919, (36) regarding
the administration of the Brussels Agreement,4 was submitted.
It was noted that an agency is being established at London under the
authority of the Council to make the necessary administrative
arrangements, and that no further action by the Council was
necessary.
It was noted by the French Delegates that the provisional exemption of
tank steamers asked by the Germans at the Brussels Conference had been
agreed to by the French Delegates on the understanding that there is a
sufficient supply of tank steamers available for use by the French.
Appendix 335
Report From Finance Section Regarding
the Administration of the Agreement With the Germans at
Brussels
The following resolutions have been agreed to by the Finance Section
regarding the administration of the agreements reached with the
Germans at Brussels:—
“1. With reference to Section 5 of the Financial Agreement
made at Brussels, the Financial Section recommend that the
German Government be invited to send a small Financial
Committee to Versailles, not exceeding six members,
including secretaries. This Committee would be given full
facilities for rapid communication with its Government. It
would be the regular channel of communication with the
Financial Section of the Supreme Economic Council on all
important financial questions; and, in particular, they
would be authorised to deal with:—
- “(a) Questions connected
with the disposal of requisitioned
securities.
- “(b) Questions of German
liabilities in neutral countries immediately falling
due, and applications for the export of gold,
&c.
- “(c) Methods of securing
for the food account the money proceeds of exports
to neutral countries.”
(Minutes of Fifth Meeting, Section 3.)
“2. With reference to paragraphs 1 and 4 of the Financial
Agreement made at Brussels, the Financial Section recommend
that the [Page 79] Report of
the Raw Materials Section should be amended to read as
follows:—
“‘The export of all commodities from Germany will be
free, with the following exceptions:—
- “‘(a) The export of;
material and products of war of all kinds,
including ships of war, is prohibited.
- “‘(b) The existing
prohibitions on the export of gold and silver and
securities remain unaffected.
- “‘(c) With the
approval of the Supreme Economic Council, any of
the Allied and Associated Governments may, at
ninety days’ notice, demand priority of delivery
of specified amounts of specified commodities
against payment for credit of the food account at
the same prices and terms that other purchasers
are prepared to pay.’”
(Minutes of the Fifth Meeting, Section 4.)
This recommendation is, however, subject to revision at a
joint meeting of the Finance and Raw Materials Sections, to
be held on Thursday, the 20th March, at 10 a.m.
“3. Paragraph 3 of the Financial Agreement. The Finance
Section decided to ask the Supreme Economic Council to
authorise the Financial Section to issue invitations to the
Governments of Sweden, Norway, Denmark, Holland, and
Switzerland to nominate one financial representative each,
who should be available for semi-official and consultative
discussions with the Finance Section regarding the future
financial relations between Germany and neutral
countries.”
(Minutes of Fourth Meeting, Section 13.)
March 19, 1919.
Appendix 34
Memorandum to the Supreme Economic
Council From the Superior Blockade Council
The Superior Blockade Council would appreciate an interpretation of
the following clauses of the Memorandum of the Brussels Conference
of the 13th and 14th March:—
Appendix 2, Clause 4, when
read in connection with paragraph 5 of Appendix 5.
- (a)
- Can Germany export all commodities, except those on the
prohibited list, to all countries of the world (i. e., including
the Associated countries and not merely neutral countries),
provided that the funds which they receive for said exports are
to be used for the purchase of foodstuffs? In other words, are
the Associated countries included in the words “approved
destinations”?
- (b)
- Should the imports of foodstuffs into Germany take place only
from that country in which German credits are created by the
export of permitted commodities, or may such credits be
transferred to finance imports of foodstuffs into Germany from
any other country?
- (c)
- Is Germany to be permitted to continue without control the
exports across the frontiers into contiguous neutrals which they
have been permitted to make during the period of war under
existing agreements, even though these exports may consist of
prohibited articles, e. g., gold and securities?
Appendix 3, Clause 3.
- Paragraph 1.—The Superior Blockade Council request that the
Supreme Economic Council furnish them, as soon as available,
with the detailed report which the Germans agreed to submit as
to the imports of materials required for increasing the German
coal output.
- Paragraph 2.—With reference to this paragraph, the Superior
Blockade Council would appreciate being informed what method of
control is to be established to insure that the consignments of
foodstuffs are not distributed to unemployed persons who by
their own fault or choice fail to obtain work.
Appendix 3, Clause 8.
The Superior Blockade Council is of the opinion that the machinery
which has been adopted for execution by the Food Section and the
Inter-Allied Trade Committee (whom the Blockade Council have
instructed to co-operate with the Food Section) for the control of
the exports of foodstuffs into Germany is working satisfactorily.
The Blockade Council would appreciate being informed if this is the
case.
Appendix 3, Clause 4, Paragraph
1:
- 1.
- The following resolution as to the modification of the
black-listing procedure was adopted by the Superior Blockade
Council, which would appreciate the views of the Supreme
Economic Council thereon:—
Resolved:
“That, with a view to assisting Germany to obtain
credits in neutral countries for the purchase of
Food supplies, in accordance with the promise of
consideration given by the Delegates at Brussels,
the Associated Governments should inform Germany
that immediate announcement will be made that no
firm in any neutral country will in the future incur
the penalty of black-listing solely because it has—
- “(a) Exported
foodstuffs to Germany within the limits approved
by and in accordance with the regulations of the
Associated Governments.
- “(b) Afforded credits
to Germany for the purchase of such
foodstuffs.
- “(c) Imported goods
permitted by the Associated Governments to be
exported from Germany.”
- 2.
- The Superior Blockade Council would appreciate being
informed whether or not Germany will be permitted to
negotiate with blacklisted firms, whether in (a) Associated countries, (b) neutral countries, or (c) all countries.
Appendix 4, Clause 2:
The Superior Blockade Council would appreciate being informed—
- (a)
- If the vegetables and fish referred to are to be included
within the 370,000 tons of foodstuffs or are to be in
addition thereto.
- (b)
- If the vegetables referred to mean (1) fresh vegetables,
(2) dry or preserved vegetables, or (3) all kinds.
Appendix 35
Note by Food Section on the Brussels
Agreement of March 14, 1919
1.
Rotterdam Food Commission.—The Agreement
provides for the setting up of a Standing Commission at Rotterdam
“for the purpose of discussing with German Delegates from time to
time commercial and other details arising out of the food traffic
under this Agreement.”
One Delegate from each Associated Government is being appointed, and
he will be assisted by the necessary commercial experts. These
Delegates will be appointed within a few days.
The Shipping Section proposes to appoint a similar Commission to deal
with details arising out of the transfer and handling of German
ships, and it would be desirable that the two Commissions should
work together at Rotterdam.
2.
Fishing.—The Agreement (Clause 2) provides
for the removal of restrictions on German fishing in the Baltic.
This point has been referred to the Naval Armistice Commission for
action.
It is also laid down that the import of fish caught in European
waters and the import of vegetables from neutrals are not to be
included against the ration of 370,000 tons of food per month
allowed under Clause (1) of the Agreement. As it stands, this merely
allows the Germans to import what they can under existing Blockade
Agreements without thereby diminishing their import of other
foodstuffs within the stipulated ration. It is suggested that the
Blockade Section should take into consideration the further
relaxation of the restrictions on the import of fish from
Scandinavian neutrals and from Holland.
3.
Left Bank of the Rhine.—With regard to the
left bank of the Rhine, it has been arranged that the ration of
370,000 tons per month, in addition to the preliminary emergency
supplies of 270,000 tons, are to be regarded as a ration for the
whole of Germany, occupied and unoccupied, and that supplies for the
occupied territories will be financed in the same way as supplies
for the rest of Germany. Certain [Page 82] emergency supplies are being shipped by the Allied
Military Authorities for use in the occupied territories, and they
will be financed in the same manner, but they will be taken into
account in the later partition of supplies. It was stipulated by the
Germans that no supplementary supplies to the left bank itself,
which would bring the ration in the occupied area above the ration
in the rest of Germany, should be financed from the general funds of
Germany. Consequently, any supplementary supplies will have to be
financed either by the Allied Military Authorities or under special
arrangements, if these are possible in the occupied territories. It
is suggested that the Finance Section should examine the possibility
of making any special arrangements.
The Allies reserve to themselves the right to determine the proper
share of the supplies to be handed over to the Allied Military
Authorities at Rotterdam for consigning to the occupied territories
after considering the proposed distribution scheme submitted by the
Germans. It is contemplated that for the present time this matter
will be dealt with by the Standing Food Commission at Rotterdam.
4.
Transport Through Germany.—The German
Government has undertaken to give all facilities and protection to
shipments through German ports and inland routes to Czecho-Slovakia
and Austria. The Communications Section has been asked to instruct
the Naval Authorities as to this undertaking.
5.
Business Communications.—The Germans were
informed that the Associated Governments would facilitate
communications by the Germans to foreign countries for the purpose
of purchasing foodstuffs from neutrals. For the present, such
communications will go through the Rotterdam Food Commission.
Appendix 36
Report from the Shipping Section
Regarding the Administration of the Brussels Agreement
The attached document6 (which should be added to the
reports of the other sections already circulated) shows the new
shipping provisions agreed to at Brussels.
These provisions have been studied by the Shipping Section. They
consider the agreement raises no new questions of policy requiring
decision by the Council, and that the great amount of administrative
work which they involve can only be properly carried out through the
London organisations. Arrangements are being made accordingly.