[Enclosure 1]
The Chairman of the Liquidation Commission
(Parker)
to the Secretary-General of the Commission to
Negotiate Peace (Grew)
Paris, November 12,
1919.
Dear Sir: Replying to your letter of
October 31st,33
pertaining to Proposal No. 97, dated June 6th, 1919, please be
advised:
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1. When the Liquidation Commission arrived in Europe it found that
the American Forces in Europe had large stocks of salvaged clothing,
including patched boots and shoes, as well as new clothing and
subsistence supplies, much of which had very little commercial
value, which could be utilized in relieving the urgent requirements
of the so-called “Liberated Nations”. Acting under the suggestion
made by the President in a letter addressed to me, dated March 24th,
copy of which is herewith enclosed, and also in response to urgent
representations made by Mr. Hoover and the members of his staff, as well as upon
the Commission’s own judgment after careful investigation, the
conclusion was reached that it was to the interest of the United
States to make sales of such clothing and subsistence stocks on a
credit basis to the so-called “Liberated Nations” and the peoples of
Eastern Europe, and at the same time in a measure relieve their
distress and assist Europe in getting back to normal conditions.
2. At a regular meeting of this Commission held on March 24th, a
resolution was adopted providing that all questions of sales of
clothing and supplies and international credits coming before the
Commission be under the immediate supervision of Senator Hollis, who
would be in constant communication with General Krauthoff as to the
sales proposed, with Mr. Hoover’s Mission as to their requirements, and the
representatives of the United States Treasury on the question of
credits.
In pursuance of this resolution, Senator Hollis, as a member of this
Commission, was in close and constant touch with Mr. Hoover and the members of his
staff, with Mr. Davis,
representing the American Treasury, and with representatives of the
Peace Commission, as well as representatives of the purchasing
nations, and would from time to time report to the Commission as a
whole conditions as developed by him and make recommendations of
sales to be made, the terms of credit, etc. Senator Hollis has now
returned to the United States and your letter must be answered
without the benefit of the first-hand information which he doubtless
has concerning this sale to the “Ukrailian” partnership.
3. In April the Commission’s representatives were approached by a
representative of the so called “Republic of Ukrania” for the
purchase of supplies. We told them that we were not in a position to
sell to Ukrania as it had not been recognized by the United States.
After conference with Mr. Hoover’s organization and others, however, a
partnership was formed consisting of Ivan Petrushevich, Voldemar
Timoshenko and Simon-Jean Cerf, who made the
proposal No. 97, referred to in your letter. This proposal was
prepared in May but not acted upon by the Commission until
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on or about June 6th,
having undergone careful investigation in the meantime. The proposal
contemplated the purchase of supplies aggregating in value in excess
of $11,500,000. While the proposal was accepted, deliveries
thereunder were stopped by the Commission, and property of the value
of approximately $8,000,000 delivered.
While the sale was made to the “Ukrailian” partnership, that
partnership in turn sold to the Republic of Ukrania and took in
payment the notes of the Republic of Ukrania, which they passed on
to this Commission. A copy of one of these notes you will find
enclosed, signed originally by three representatives of the Republic
of Ukrania at the Peace Conference, and subsequently reexecuted by
Mr. Hyro Sydorenko, a certified copy of whose
credentials are now in our files.
4. Incidentally, I beg to advise that a Committee of the Peace
Conference who had visited Russia, Esthonia, Ukrania and neighboring
Provinces, waited upon this Commission several times, and with great
earnestness urged that in the interest of humanity, as well as for
business and political reasons, the surplus stocks of the American
Army should be sold to these peoples, including the Ukranians. As
before stated, however, a considerable portion of the proposed
purchase was cancelled and deliveries never made.
Very truly yours,
[Enclosure 2]
President Wilson to the Chairman of the Liquidation
Commission (Parker)
My Dear Judge Parker: Mr. Hoover has represented to me the
critical clothing conditions in the liberated countries. He has also
presented to me the fact that the War Department is possessed of
enormous stocks, not only of new clothing but of renovated
materials. It must be obvious that these renovated materials can
have but little value in the world markets and that the unused
materials, purchased and manufactured under war conditions, will
soon be heavily depreciated by the return of commerce to more normal
prices. It would appear, therefore, that it is desirable to
liquidate these stocks at the earliest possible moment.
It would appear that but little market could be found for such large
quantities of clothing and shoes and similar articles, except
through some such relief agency as that conducted by Mr. Hoover, and, to some extent, this
agency may be of value in the distribution
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of the unused material. The sympathetic
interest which American people must have in the alleviation of
misery amongst the liberated people should lead us to entertain the
most sympathetic view as to prices and terms upon which this
material is disposed of to them. I would be glad, therefore, if the
Commission could accept as its guiding principle in these
negotiations the fact that it is not only securing a rapid
liquidation of materials that may otherwise prove practically
unsalable, but also that it has an opportunity to perform a fine
human service by approaching the matter in the most sympathetic
mind, and I would be glad if the Commission could see its way to
very largely accept Mr. Hoover’s views as to the terms upon which dealings
should be undertaken with the liberated peoples.
Faithfully yours,
