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

Paris Peace Conf. 180.0501/10

Supreme Economic Council: Tenth Meeting Held at the Ministry of Commerce [on 24th March, 1919, at 10 a.m.]

March 24, 1919, 10 a.m.

The Supreme Economic Council held its tenth Meeting on Monday, March 24th, 1919, at 10 a.m. under the Chairmanship of Lord Robert Cecil.

The Associated Governments were represented as follows:—

Great Britain	Sir W. Mitchell Thomson.
	Mr. E. F. Wise.
	Sir William Goode.
United States	Mr. Hoover.
	Mr. McCormick.
	Mr. Norman Davis.
	Mr. Robinson.
	Mr. Baruch.
France	M. Clémentel.
	M. Loucheur.
Italy	Signor Ciuffelli.
	Count di Cellere.
	Professor Attolico.

54.

The Minutes of the Eighth Meeting were approved.

55. Negotiations With Germany.

(a) With reference to Minute 49, the telegram prepared by the Sub-Committee appointed by the Council at their Meeting on Saturday 22nd. March (37) and dealing with the list of commodities which Germany is prohibited from exporting during the period of the Armistice was submitted and approved.

In agreeing to the terms of the telegram the French Delegates raised the following points:—

(i) That the exchange of commodities between Alsace-Lorraine, Saar Basin and the Rhine Provinces and payment for same should be allowed to proceed as at present.

Agreed.

(ii) That any foodstuffs supplied by France to the Saar Basin and Rhine Provinces should be credited as part of the total quantity of food supplied by France for the revictualling of Germany.

It was the view of the American Delegates that this matter should be referred to the Finance Section for determination together with the question of supplies by the Allied Armies referred to in Paragraph 4 of Minute 52.

(iii) That the terms of the telegram as approved by the Council shall be without prejudice to any clauses inserted or to be inserted in the Preliminaries of Peace regarding restitution in kind or reparation in respect of devastated areas.

Agreed.

(b) With reference to the Minute submitted by the Sub-Committee to the Council with the above telegram the Italian Delegates submitted a note dated 23rd. March (38) requesting the Council to do their utmost to assist in relieving the serious position as regards the Italian Coal Supply.

It was agreed that the Council should do all in their power to assist in the matter knowing that the Italian Government will co-operate as far as possible in facilitating the work of the Council.

(c) A Minute (39) for submission to the Supreme War Council reporting the despatch of the telegram regarding the list of prohibited articles was submitted and approved.

(d) The Italian Delegates referred to the necessity for taking immediate steps to carry into effect the proposal, in the event of its being accepted by Germany, that representatives of the Associated Governments should proceed to Cologne or other destinations to be designated, to meet the Delegates of the German Government to arrange purchases of articles on the prohibited list.

It was agreed:—

(a) That this and similar questions of detail in connection with the execution of the above proposals should be referred to the Sub-Committee responsible for drafting the telegram and consisting of the following representatives:—

U. K.	Mr. Wise.
U. S. A.	Mr. Lamont.
France	M. Monnet.
Italy	Professor Attolico.

(b) That the Associated Governments should despatch their Delegates to Cologne or elsewhere as soon as the necessary arrangements can be made.

56. German Coastal and Fishing Trade.

(1) A note from the Food Section (40) regarding the removal of restrictions on:—

(a) the limitation of areas within which German fishing vessels may operate and:

(b) the free movement of German Coastal tonnage from one German Port to another

was submitted.

The British Delegate on Blockade matters reported that as regards (a) the Naval Armistice Commission had already authorised the removal of all restrictions on German Fishing in the Baltic Sea and on German fishing in the North Sea between Latitude 53°30′ N. and Latitude 56° N and to the Eastward of Longitude 4°30′.

As regards (b) above the American Delegates referred to the desirability of permitting German Coastal tonnage freedom of movement to proceed to and from Northern Neutral Ports.

The following resolution was adopted:—

“That in the view of the Supreme Economic Council there is no objection to exempted ships engaging in Coastal traffic and traffic to Northern Neutrals provided that separate lists of the vessels employed in these two trades are furnished to and approved by the President of the Allied Naval Armistice Commission.”

It was decided to forward a copy of the resolution to the Naval Armistice Commission with a request that, subject to their approval, the necessary action in notifying the German Government should be taken.

(2) Use of Black Listed Neutral Vessels. The American Delegates raised the question of allowing black listed vessels to proceed to the United Kingdom to lift foodstuffs to be conveyed to Germany.

It was decided to refer the proposal to the Shipping Section for their consideration with the request that a report should be prepared for the next Meeting of the Council.

57. German Trading With Black Listed Firms.

With reference to the decision reached by the Council at the last Meeting regarding the modifications to be made in “Black Listed Procedure” it was agreed that a telegram should be despatched to the German Government embodying the following resolutions:—

(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 announcement will be made that no firm in any neutral country will in future incur the penalty of blacklisting because it has:

(i) Exported foodstuffs to Germany within the limits approved by and in accordance with the regulations of the Associated Governments.

(ii) Afforded credits to Germany for the purchase of such foodstuffs.

(iii) Imported goods permitted by the Associated Governments to be exported from Germany.”

(b) “That negotiations and trading with firms in neutral countries even though upon the Black list will be permitted subject to the approval of the Blockade Section of the Supreme Economic Council.”

58. Requirements of Allied, Liberated and Enemy Territories.

(a) In accordance with the decision of the Council reported in Minute 36 a memorandum from the Director General of Relief dated 20th. March (41) reporting on the food requirements of Europe and the financial and shipping responsibilities involved therein was submitted and referred to the Finance and Shipping Sections for urgent consideration and report at the next meeting of the Council.

(b) Supplies for Germany and Czecho-Slovakia. The Director General of Relief reported that in view of the fact that the German Government had commenced to discharge its obligations regarding the handing over of German merchant shipping he had decided to divert immediately to Hamburg for the revictualling of Germany one cargo of foodstuffs and that it was proposed shortly to order two vessels to that port with foodstuffs for Czecho-Slovakia.

Approved.

59. Communications From the Finance Section.

Resolutions from the Finance Section were submitted as follows:—

(i) Norwegian Herrings. The proposals (42) regarding the disposal of surplus stocks of herrings held in Norway by the British Purchasing Agency was noted.

It was agreed to inform the Blockade Section that the Council consider it essential that the recommendation (see Minute 52) regarding the removal of restrictions on export of fish from Scandinavia to Germany should be carried into effect immediately and the Members of the Blockade Section present undertook to have action taken on the matter at their Meeting on 26th. March.

(ii) Italian Situation. The report on the Financial position (43) as regards supplies of foodstuffs and other commodities for Italy was noted.

(iii) Austrian Finance Commission. The appointment of an Austrian Finance Commission (44) to arrange, as far as practicable, means of payment for foodstuffs supplied to Austria was approved on the understanding that the Commission would report to the Finance Section from time to time.

(iv) Communication with Austria (45). It was agreed that communications with the Austrian Government regarding arrangements made for the revictualling of Austria should be effected through the Allied Food Mission at Trieste.

60. Relaxation of the Adriatic Blockade.

With reference to Minute 30 the Chairman reported receipt of information to the effect that although the Supreme War Council had agreed to the proposal that the Blockade on countries bordering on the Adriatic Sea should be raised the Italian Government had not yet carried this decision into effect and suggested that the Italian Delegates should point out to their Government the necessity for withdrawing the Decree[s] of 26th. May and 2nd. June 1915 regarding this matter.¹

The Italian Delegates in agreeing to discuss the point again with their Government pointed out that the instructions given to the Italian Naval Authorities to allow free movement of goods to and from all countries bordering on the Adriatic except those commodities on the prohibited list did in fact result in a practical withdrawal of all blockade restrictions.

It was agreed that the Chairman should receive from the Italian Delegates a report of their negotiations with their Government and should be authorised, if necessary, to bring the matter before the Supreme War Council again.

61. Communications From the Blockade Section.

The following resolutions from the Blockade Section were considered:—

(i) Trade with Poland (46). The proposal that all blockade and trade restrictions with Poland should be abolished as from 1st. April 1919 was approved in principle and it was agreed:—

(a) That a resolution should be drafted for submission to the Supreme War Council and approved by the Associated Delegates on the Blockade Section before transmission thereto.

(b) that it was unnecessary to set up any special Allied machinery to ensure the proper control of trade with Poland but that the Polish Commission should be informed of the above decision and requested to make all necessary arrangements regarding this matter.

(c) that the present naval control of the port of Danzig should be sufficient to ensure that information would be immediately forthcoming in the event of the diversion to Germany of cargoes intended for Poland and that the food Section would take care that priority on the railways should be given to essential foodstuffs.

(ii) Esthonia. The resolutions of the Blockade Section (47) regarding facilities to be granted for the import of foodstuffs and other commodities into Esthonia were approved and it was decided to forward them to the Supreme War Council.

62. Communications From the Inter-Allied Commission in Paris.

(i) Luxemburg. A resolution (48) regarding the re-establishment of normal trade relations with Luxemburg was submitted for the information of the Council.

The French Delegates reported that action on the lines of the resolution was already being taken.

Approved.

(ii) Rhine Provinces. Resolutions (49) regarding financial arrangements for supply of commodities to the Rhine provinces were submitted and referred to the Finance Section for consideration.

63. Coal Situation.

With reference to Minute 45 (2) it was agreed that the Sub-Committee appointed to examine the coal position in Europe generally should be requested to submit a report to the Council at their next Meeting.

64. Communications Section.

With reference to Minute 47 it was agreed that the Communications Section should be requested to report to the Council at their next Meeting regarding the appointment of engineers to report on the immediate needs of the countries in Eastern Europe and the best method of satisfying their demand.

65. Organisation.

(i) A general discussion took place regarding the organisation of the Shipping Section and it was agreed that the immediate appointment of a General Secretary was essential.

The French Delegates, warmly supported by both the American and Italian Delegates, proposed that Mr. Salter should be asked to act as General Secretary in view of his past experience of and signal success in the work.

The Chairman stated that he was unable to give a decision immediately regarding this proposal but he undertook to do all in his power to make such arrangements as would meet the wishes of the Council and it was agreed that a general report regarding the organisation of the Shipping Section should be prepared for the next meeting of the Council.

(ii) In view of the immediate necessity for making some arrangements to ensure that the necessary tonnage would be forthcoming to take care of the Allied and Relief Programmes for April loading, it was agreed that a Sub-Committee should be appointed to consider the position and recommend to the Council at the next meeting.

The personnel of the Sub-Committee is as follows:—

United Kingdom	Lord Robert Cecil.
U. S. A.	Mr. Robinson.
France	M. Monnet.
Italy	Professor Attolico.

Appendix 37

Telegram To Be Sent to the Germans Through the International Armistice Commission, Spa, From the Supreme Economic Council

1. The following is the prohibited list promised under para. (4) of the Minutes of the Brussels Agreement of March 14th.² It shall apply during the period of the Armistice and without prejudice to any arrangement to be made there-after:—

• War Material of all kinds, including ships of war.
• Coal and Coke of all kinds.
• Lumber, Timber, Wood pulp, and Printing Paper.
• Dye Stuffs.
• Such iron and steel products as fall within the following categories: Pig-iron, blocks, billets, constructional steel, steel rails, ship plates.
• Sugars.
• Window glass.
• Electrical Machines and Parts.
• Machine tools and machines for industry.

2. The above prohibitions shall not be understood to interfere with such existing privileges as Germany may have to export over her land frontiers.

3. Existing prohibitions of the export of gold, silver and securities shall remain unaffected.

4. The Allied and Associated Governments further declare that, except in the case of war material of all kinds, including ships of war, of which the export is absolutely prohibited, they are prepared to allow exceptions to the foregoing prohibitions under the following conditions:—

(a) Any one of the Allied and Associated Governments shall have the right during the Armistice to purchase at fair equitable prices parcels of any of the articles on the prohibited list which Germany may have available for export.

(b) The representatives of the Allied and Associated Governments will at once meet at Cologne, or at any other place that they may designate, the delegates of the German Government in order to arrange for these purchases. Similar meetings will be held each 30 days thereafter. At each meeting the German delegates shall declare in detail the nature and quantities of goods in the above list available for export during the following 30-day period. The representatives of the Allied and Associated Governments shall, within 4 clear days after the receipt by them of such list declare what commodities and the amounts thereof they wish to purchase. After contracts have been made for such quantities, the whole balance of listed commodities shall be available for export.

(c) The rights of the Allied and Associated Governments to purchase under this arrangement shall not however extend beyond two-thirds of the total surplus of any of these commodities available for export. In any case Germany shall be allowed to export to neutrals without restriction 1/3 of her surplus available for export.

(d) The net proceeds of such purchases made by any one of the Allied and Associated Governments shall be made available to Germany by the particular purchaser in such a manner that the funds resulting from such a purchase may be used by Germany for payment for food import under the Brussels Agreement. But it shall rest upon Germany to make such conversion as may be necessary.

Appendix 38³

[Note From the Italian Delegate Regarding] Italian Coal Supply

The Italian Delegate stated yesterday, and he wishes to repeat with all emphasis to-day, that the telegram dispatched to Germany does not cover the point raised by Italy.

He has, however, abstained from any obstructive policy on the clear understanding that all the Allied Governments would do their utmost to help Italy out of her grave difficulties in regard to the coal supply.

The situation has reached and remains at such a desperate pass that the Italian Delegation feel entitled to ask that the understanding referred to above should be solemnly confirmed by the Council, and that the representatives of the Allied and Associated Governments should convey this message to their respective Governments, and ask to be placed in a position to report at the next meeting the results of the action taken.

March 23, 1919.

Appendix 39

Note for the President of the Peace Conference

The Supreme Economic Council, at its meeting held on Saturday regarding the regulations for German exports, decided that a telegram, fixing the method of procedure, should be drafted on Sunday last by a Committee of Technical Delegates of the Associated Governments.

The Committee met and prepared the annexed telegram,⁴ which was sent to Spa by Marshal Foch.

The Economic Council considers that the question put before the Supreme War Council on the same subject is now unnecessary.

March 24, 1919.

Appendix 40

Note From the Food Section Regarding German Coastal and Fishing Trade

It was agreed to submit the following resolution to the Supreme Economic Council for their consideration:—

“It is the view of the Food Section that the restrictions at present existing—

• “(a.) As to the limitation of areas within which German fishing vessels may fish, and
• “(b.) Upon the free movement of German coastal tonnage from one German port to another,

should be removed forthwith.”

The Food Section recommends to the Supreme Economic Council that the Naval Armistice Commission be moved to take this resolution into immediate consideration.

Appendix 41

[Memorandum From the Director General of Relief (Hoover) Regarding] Food Supplies for Europe

In accordance with the request of the Supreme Economic Council, I submit herewith some round estimates as to the food necessities of the Allied Governments, and of the liberated and enemy countries, together with some estimates of finance and shipping involved. I have limited the discussion to the months of April, May, June, and July, for not only will the period of the most severe necessity have been covered within these months, but the German shipping will have become effective in the world’s shipping pool towards the end of this period, and also the ground produce will tend to ameliorate the situation with the arrival of summer. The figures given are with a view to visualising the situation for discussion, and other factors may enter for discussion of questions raised. Greece, Portugal, and sundry minor issues are omitted as being compensated for in other quarters.

The following table represents in round numbers the monthly import necessities of the three Allied Governments, to which are added the food imports of the United States, as they materially affect the problem of available world tonnage:—

Requirements of Associated Governments

	Cereals	Meats and Fats	Sugar	Oilseeds	Sundries	Total	Cargo Tonnage Required
United Kingdom	750,000	130,000	125,000	125,000	100,000	1,230,000	3,300,000
France	385,000	50,000	50,000	80,000	25,000	590,000	1,790,000
Italy	480,000	30,000	20,000	15,000	20,000	565,000	2,040,000
United States	50,000		250,000	50,000	150,000	500,000	1,250,000

In the tonnage calculation a due consideration has been given to the necessity to load a liberal proportion from distant ports.

Food Supplies for Liberated and Enemy Regions

The following programmes represent a considerable reduction on the amounts considered by our investigators as the monthly volume of food needed, and are far below the amounts computed by the various Governments as necessary. The programmes thus represent compromises based on the maxima of food, shipping, finance, and inland transportation available:—

group i

	Bread-stuffs as Grain	Rice and Pulses	Fats	Milk	Sundries	Total	Cargo Tonnage Required
Belgium	100,000	10,000	12,000	2,000		124,000	300,000
Czecho-Slovakia	50,000	5,000	4,000	1,000	200	60,200	180,000
Roumania	40,000	5,000	4,000	5,000	200	54,200	180,000
Greater Serbia	40,000	5,000	4,000	1,000	200	50,200	150,000
Total	230,000	25,000	24,000	9,000	600	288,600	810,000

group ii

Finland	15,000	5,000	4,000	1,000	200	25,200	75,000
Poland	45,000	5,000	4,000	1,000	200	55,200	165,000
Baltic States	10,000	2,000	2,000	500	200	14,700	45,000
Christian Turkey	10,000	5,000	1,500	500	200	17,200	58,000
Total	80,000	17,000	11,500	3,000	800	112,300	343,000

group iii

Bulgaria	15,000					10,000	30,000
Austria	30,000	4,000	4,000	500		38,500	120,000
Hungary	20,000		3,000	500		23,500	70,000
Turkey	10,000	5,000		500		15,500	50,000
Total	75,000	9,000	7,000	1,500		87,500	270,000
Grand Totals	385,000	51,000	42,500	13,500	1,400	488,400	1,423,000

group iv

Germany	250,000	50,000	60,000	10,000		370,000	1,000,000
							2,423,000

There can be no guarantee that the above maxima will either synchronise or eventuate, for without rigorous action with regard to finance, and especially in shipping from the Associated Governments, there can be little hope that these programmes will ever be delivered.

It may be stated that there are sufficient food supplies in the exporting countries to cover these programmes, and that the solution of the problem resolves around shipping and finance.

Shipping

The following table indicates the approximate available tonnage amongst the various Governments of 1,600 tons and over, excluding tankers, sailing vessels, and ships under repair, and also excluding tonnage being used for military and naval purposes. The table also shows roughly the estimated amount of tonnage required for food and coal imports and coal distribution, and indicating the margin of tonnage available to each of the four countries for raw materials and trade purposes:—

	Controlled Tonnage	Needed for Food Imports	Coal Imports	Net Surplus or Deficiencies
United Kingdom	13,012,000	3,300,000	plus	9,712,000
United States	4,281,000	1,250,000	plus	3,031,000
France*	2,443,000	1,790,000	300,000plus	353,000
Italy*	2,012,000	2,040,000	600,000 minus	minus 628,000
Relief				minus 1,400,000

*Ex. Contributors United Kingdom and United States.

If we consider the movement of food and coal to have the first priority, we have then to consider the minimum raw material and trade needs to each country before assignment of the burden to be carried by the countries of surplus shipping.

The support of national life in the Associated countries extends beyond the provision of food and coal into raw material and trade generally, but as to how far sacrifices may be claimed from the trade and raw material from one country to another must be a matter of some compromise and adjustment.

The Germans will require some assistance in the shipments of food, because their own ships will not return laden before the 1st June. Assuming the existing stocks in Europe will yield supplies to, say, 250,000 tons to Germany in April, they will need at least 200,000 tons delivered in May, although, of course, this should be made nearer 400,000 tons. In any event, this will imply April loading in order to obtain May delivery. The programmes of the other three relief groups will require approximately 500,000 tons of loading in April, of which 80,000 tons is already arranged for Belgium, leaving 420,000 tons of loading to be provided, which, in addition to the 200,000 tons for Germany, would give 620,000 tons of loading to be provided from Associated shipping in April. As it is assumed the Germans will be loading their own programmes in May, the call upon the Associated Governments would be for the relief regions, as it is not expected that the German shipping during May would, in cargo capacity, much exceed their own demands. It is therefore necessary for the Associated Governments to provide loading in May for 420,000 tons for June delivery. Assuming that the German cargo tonnage is generally at motion, it should be able to carry some of the burden of June loading for the three relief groups, reducing the call on the Associated Governments to possibly 200,000 tons.

Finance

The finance of supplies to liberated countries rest upon—

(a) Some minor reviving in exports, and

(b) Use of liquid securities, and

(c) Credits.

The following table would indicate a rough hazard at the situation:—

	Monthly Cost	Four Months	Exports Realisable	Liquid Assets	Credits to Provide
Belgium	$27,100,000	$108,400,000	?	?	$108,400,000
Czecho-Slovakia	12,270,000	49,080,000	$5,000,000		44,080,000
Roumania	12,770,000	51,080,000	10,000,000	$15,000,000	26,080,000
Greater Serbia	10,770,000	43,080,000			43,080,000
	62,910,000	251,640,000	15,000,000	15,000,000	221,640,000
Finland	7,020,000	28,080,000	5,000,000	15,000,000	8,080,000
Poland	11,520,000	46,080,000			46,080,000
Baltic States	3,810,000	15,240,000			15,240,000
Christian Turkey	4,270,000	17,080,000			17,080,000
	26,620,000	106,480,000	5,000,000	15,000,000	86,480,000
Bulgaria	2,000,000	8,000,000		8,000,000
Austria	8,630,000	34,520,000			34,520,000
Hungary	5,350,000	21,400,000			21,400,000
Turkey	3,100,000	12,400,000	5,000,000		7,400,000
	19,080,000	76,320,000	5,000,000	8,000,000	63,320,000
	108,610,000	434,440,000	25,000,000	38,000,000	371,440,000

It has appeared to me vital to stimulate the initiative of the different liberated Governments to self-help in their own difficulties. I have, therefore, proposed to a number of them that they should at once establish either commissions or corporations of semi-official character and comprised entirely of their own nationals; that these commissions should open offices in the principal trade centres of the various countries; that their Governments should secure for them some working capital in the different Allied countries; that they should, with the benevolent assistance of the Associated Governments, charter their own shipping and undertake the transportation inward of their own food supplies and outwards of export commodities. Under this plan they can be given an initial capital in food by way of advances which, on sale within their own territory through their own distributing systems, they can realise local funds which can be invested in export commodities, thus the economic cycle to some degree will be re-established. It is my hope that the deficiency in these commission budgets would be a minimising amount, with the growth of initiative and exports, until they would, by next harvest, arrive at some sort of equilibrium.

Satisfactory progress is being made in the establishment of these commissions. The plan has the great value of enabling the gradual withdrawal of sheer relief measures in favour of economic assistance, and if there is enough initiative and ability in these commissions they should contribute most materially to the economic rehabilitation of their respective countries. The first of the countries to emerge into this situation will be Belgium, and the second the Czecho-Slovakia. I am hoping for the early construction of the Eoumanian and other administrations of this character.

Tables are attached indicating the method of determination of present use of tonnage.

Herbert Hoover

March 21 [20?], 1919.

Tonnage Situation of the United States, the United Kingdom, France, and Italy in Relation to Food and Transport Requirements

(Not including bunkers)

	United Kingdom	United States	France	Italy	Relief
Total available merchant tonnages controlled (except that furnished by United States and United Kingdom to France and Italy.)	13,012,000	4,281,000	2,443,000	2,012,000
Deduct Required–
Food imports	3,300,000	1,250,000	1,790,000	2,040,000	1,400,000
Coal imports			300,000	600,000
Balance available for other uses	9,712,000	3,031,000	353,000
Balance required from other sources				628,000	1,400,000
Deduct tonnage supplied by United Kingdom and United States to—
France	905,000	176,000
Italy	932,000	182,000
Relief	58,000	753,000
Minor food uses	26,000	117,000
Cereal service unallocated	739,000
Total contribution	2,660,000	1,228,000
Balance available for other domestic uses	7,052,000	1,803,000
Amounts received from United States			176,000	182,000	753,000
Amounts received from United Kingdom			905,000	932,000	58,000
Total			1,081,000	1,114,000	811,000
Total tonnage available for uses other than food			1,434,000	486,000
Deficiency in relief tonnage					589,000

Tonnage includes 1,600 gross tons and over, except tankers, sailers, military use, and repairing. All figures in deadweight tons. Coastwise shipping of United States excluded.

Note.—It appears from this table that of the total tonnage of United Kingdom (13,012,000), 25 per cent. (3,300,000) is required for her own food used and 20 per cent. (2,660,000) is contributed to Allied uses and relief. Of the total tonnage of United States (4,281,000), 29 per cent. (1,250,000) is required for food uses and 28½ per cent. (1,228,000) is contributed to Allied uses and relief. Of the tonnage remaining, after providing for domestic food import requirements, United Kingdom contributed to Allied and relief uses 27½ per cent. (2,660,000 out of 9,712,000), and United States 40½ per cent. (1,228,000 out of 3,031,000).

Tonnage Controlled by United Kingdom, France, Italy, and United States, March, 1918

	United Kingdom	France	Italy	United States
National Tonnage	13,012	1,710	1,048	4,281
Neutral Tonnage		339	317
Allied (except United States and United Kingdom)		257	150
Wheat Executive Control		88
Austro-Hungarian		114	517
Total	13,012	2,558	2,032	4,281
Deduct*		115	20
Balance	13,012	2,443	2,012

*These are amounts in use by United States and United Kingdom chiefly, and are probably included in their figures of tonnage available.

Tonnage includes 1,600 gross tons and over, except tankers, sailers, military use and repairing. All figures in deadweight tons. Coastwise shipping of United States excluded.

Appendix 42

Resolution of Finance Section Regarding Disposal of Surplus Stocks of Herrings Held in Norway by the Norwegian Purchasing Agency

That all the stocks of herrings held in Norway by the British Purchasing Agency may be sold as and where they lie to the Norwegian Government at a flat rate, irrespective of their condition; that the Norwegian Government, provided it can make the necessary financial arrangements, be allowed to export one million or more barrels to Germany, and further amounts to Poland, Esthonia, the Tchecho-Slovak Republic, and Austria; that Germany be allowed to pay for these herrings in cash out of any balances she may have in Norway, Sweden, and Denmark and/or by export of goods urgently required in Norway, subject to the observations of the Blockade Committee and to the quantities to be exported from Germany being fixed in advance.

These arrangements were agreed to by the Financial Sub-Commission from a purely financial point of view, and it was decided to make recommendations in this sense to the Supreme Economic Council.

Appendix 43

Report of Finance Section Regarding the Italian Situation

With reference to the memoranda laid by the Italian Representatives before the Supreme Economic Council on the 25th February,⁵ it was agreed that the difficulties set forth in these memoranda would appear to be not primarily financial. The commodities principally referred to are cereals, meat, pork products, and coal. As regards cereals, the available finance exceeds shipments up to date. This is also the case as regards pork. The Finance Section is not aware of any financial difficulties as regards coal. There remains South American meat. For the finance of this, a loan is in course of arrangement from the Argentine Government. Pending completion of this loan, further shipments are impossible.

The Italian Representative pointed out that if this credit is not made available immediately, there seems to be no way for Italy to get the meat, except through some financial arrangements by the Associated Governments. He expressed his anxiety that the matter should be treated as one of the utmost urgency.

Appendix 44

Resolution of Finance Section Regarding the Austrian Finance Commission

That the Supreme Economic Council be recommended to appoint a Commission, consisting of one representative each from England, France, and Italy, to go to Austria and make the necessary financial arrangements for the payment of food supplied to German Austria.

Mr. Keynes announced that he was trying to secure the services of Sir Francis Oppenheimer as the British Commissioner in Austria. Captain Jung undertook to obtain from his Government the nomination of an Italian Representative.

The duties of the Commission would be to make arrangements for securing a lien on Austrian salt mines, &c., and to provide by any other means in their power for the payment of food supplies. Sir Francis Oppenheimer, if he were to be the British Representative, would also report to the Finance Section on the currency situation in Austria, and make proposals to them on any financial questions that might arise.

Appendix 45

Resolution of Finance Section Regarding Communication With Austria

That the Financial Sub-Commission should invite the Supreme Economic Council to communicate through Berne to the Austrian Government the arrangements which have been made for the revictualling of German Austria.

Appendix 46

Resolutions of the Blockade Section as to the Removal of Blockade and Trade Restrictions on Poland

The following Resolution was adopted for submission to, and appropriate action by, the Supreme Economic Council:—

Resolved—

“That all blockade and trade restrictions with Poland shall be abolished and all commerce shall be free with all ports thereof, beginning the 1st April, 1919, on which date public notice shall be given to this effect, satisfactory machinery to be set up before that date for the proper control at Danzig.”

Further Resolved—

“That, pending the approval by the Supreme Economic Council and the Supreme War Council of the raising of all blockade and trade restrictions with Poland, each of the Associated Governments represented on this Council shall designate a delegate to discuss the machinery which it will be necessary to establish for the proper control of trade with Poland.”

Note.—It will be necessary for the Supreme War Council to give instructions that the Naval Blockade should be raised for the Polish coast covering Danzig.

Appendix 47

Resolution of the Blockade Section Regarding the Import of Foodstuffs and Other Commodities Into Esthonia

Whereas, it is desirable that reasonable quantities of commodities should be permitted to reach Esthonia,

Resolved—

That, subject to guarantees being given that no imported commodities and no articles manufactured therefrom will be exported to Germany and Bolshevik Russia,

(1) Applications for permission to ship commodities to Esthonia shall be made to, and decided by, the Allied Blockade Council in London, except in so far as such shipments are made from Norway, Sweden, Denmark, and Holland.

(2) The Inter-Allied Trade Committees in Norway, Sweden, Denmark, and Holland shall be authorised to endorse licences for the export of commodities from these countries respectively to Esthonia, and shall notify the Allied Blockade Council of the exports affected under this arrangement in order that the rations of the exporting countries may be credited to the extent of the exports made.

(3) The Allied Blockade Council shall be requested to prepare at once an estimate of the quarterly requirements of Esthonia in the matter of foodstuffs and most important raw materials, based, in the case of foodstuffs, on the instructions of the Food Section and, in the case of other commodities, upon the best material available. Imports shall not be authorised in excess of the estimated quarterly requirements.

(4) The Inter-Allied Trade Committees in the northern neutral countries shall be requested to authorise exports to their respective countries from Esthonia.

(5) The Allied Blockade Council shall be empowered, if they consider it necessary, to set up an Inter-Allied Trade Committee at Reval.

(6) The announcement of these arrangements to be made on the 1st April, 1919.

Note.—It will be necessary for the Supreme War Council to give instructions that the Naval Blockade should be raised for the Esthonian coast, in accordance with the terms of the resolution.

Appendix 48

Resolution From the Inter-Allied Commission in Paris Regarding the Re-establishment of Normal Trade Relations With Luxemburg

(Meeting held on the 18th February, 1919)

The Inter-Allied Economic Committee will deal with imports and exports of the Grand Duchy of Luxemburg, with the help of a representative of local interests, in order to facilitate, as far as possible, the re-establishment of normal life in the country.

The Paris Commission is of the opinion that commercial relations with Luxemburg should be re-established as soon as possible on a large scale, on the understanding that imported commodities are not reexported, and under the reservation that preventive measures are taken by the Inter-Allied Economic Council in connection with German firms.

Appendix 49

Resolution From the Inter-Allied Commission in Paris Regarding Financial Arrangements for the Supply of Commodities to the Rhine Provinces

(Decision of the Meeting of the 11th March, 1919)

The Commission recommends that the following measures be taken, with a view to centralising the control of all exchange transactions in the Rhine countries:—

1. The present German system, Divisenstellen, shall be adopted by the Associated Governments and centralised in all which concerns the occupied territories under a central Divisenamt which shall be established. According to all indications, this central bureau of compensation should be located at Cologne. The local banks in the occupied territories, which will be qualified to exercise the function of Divisenstellen will be chosen as a rule among those which, under the present German law, are qualified to handle transactions of foreign exchange.

2. The above-mentioned organisation will control all exchange transactions within the Rhine territories, be it with associated countries, be it with neutral countries. The present German law, which regulates the transactions called Divisen in Germany, shall be applied in the Rhine countries, in touch with the Central Bureau of Compensation at Cologne, which henceforth will control all operations in occupied zones in the same manner as they were originally controlled from Berlin.

3. The principal aim of the project above indicated is to assure the Associated Governments being fully informed in all matters concerning the foreign exchange situation in the Rhine countries.

With this end in view, it will be indispensable that experts in matters of exchange—French, Belgian, American, and English—be attached to the Bureau of Compensation. The above-mentioned experts will control all transactions of Divisen in the occupied zones, in collaboration with the Germans, who have a perfect knowledge of the system of control as applied to transactions of this kind.

4. From the moment when this organisation shall have been put into operation under the control of the military authorities in the diverse zones, in accordance with the directions of the Inter-Allied Economic Council of Luxemburg, the Associated Governments shall establish an effective control over all exchanges, and shall thus be in a position to fully instruct themselves regarding all foreign securities held abroad by the inhabitants of the Rhine countries, be it in Allied countries or in neutral countries.

5. If the Superior Economic Council approves this resolution (which will be executory on the 28th March), and if the Belgian Government is also agreed, measures will be immediately taken for the application of the preceding dispositions throughout the entire Rhine territories.

March 20, 1919.

1. See Foreign Relations, 1915, supp., pp. 166–168.
2. See appendix II to the memorandum of the Brussels Conference, Miller, Diary, vol. xvii, p. 200.
3. Appendixes 38 to 49 are filed separately under Paris Peace Conf. 180. 0501/33.
4. See appendix 37, p. 89.
5. Memorandum of February 23, 1919, p. 8.