The Secretary of State to the Ambassador in France (Wallace)
9457. Embassy’s 1903 Dec. 24th, Rathbone 171.
For Rathbone. Paragraph I. We approve the figures in your cablegram as a basis for distributing dyes impounded from daily production until end of February. You should, however, make every effort to obtain following modifications. (1) The 35 percent allotment to us of alizarine dyes, other than alizarine reds, although 5 percent greater than British allotment is insufficient. The production of those dyes in this country is very small as compared with an urgent need. Besides, the British production of these dyes is in advance of our own. Accordingly our allotment should be increased from 35 to at least 40 percent. If you are unable to obtain this increase without concessions we recommend that you surrender one-half of our 10 percent allotment on sulphur colors. (2) For the same reasons our 40 percent allotment of vat dyes other than indanthrene blue G.C.D. should be increased to at least 43½ percent. To achieve this you may if necessary concede an equal percentage from our allotment of indigo bringing the same down to 20 percent. (3) From the phraseology of your cablegram we are unable to determine whether the indigoids are included in the vat dye group. If they are not, we suggest the following percentages on the basis of German export figures for 1913. Great Britain 35 percent, United States 55 percent, France 3 percent, Italy 4 percent, Belgium 3 percent.
Paragraph II. If attempt is made to have the percentages set forth in your cablegram govern the distribution of the remaining [Page 474]Reparations stocks you may give your consent provided only you obtain the consent of the other countries to the modifications set forth in the preceding paragraph.
Paragraph III. We note that the percentage figures set forth in your cablegram are not predicated strictly and exclusively on the German export figures to the five countries in 1913 but that they result to an appreciable extent from an inquiry into the respective needs of those countries. In this connection we again direct your attention to the comments in Department’s 9362, December 17, 6 P.M.1 and suggest that when the matter is ultimately presented to the Committee on Organization for final decision that you urge that the distribution be made strictly and exclusively on the basis of the German export figures for 1913. Should you succeed there would seem to be no reason for not permitting the percentages so determine[d] upon to prevail over an extended period of time. Contrary-wise, should the Organization Committee accept the recommendation of the Expert Committee and decide to predicate the allotment figures not only on the German exports for 1913 but also on the respective needs of the five countries, we assume that you are impressed by the inadvisability in that case of permitting the percentages of distribution to prevail over any considerable period of time. In that case the figures should be modified from time to time to meet the changes in the respective needs of the five countries.
Paragraph IV. If Germany agrees to permit shipments of Allies’ share daily production to begin at once Stephenson should be kept constantly informed in order that he may, if possible and desirable, fill orders from that source.
Paragraph V. Your request to be advised of our import requirements for the year 1920 has already been answered in Department’s 9362, December 17, 6 P.M. But in this connection again we direct your attention to the inadvisability of tempering the German export figures by any consideration of the needs of the five countries.
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