763.72119/6986: Telegram
The Commission to Negotiate Peace to the Secretary of State
[Received 10:50 p.m.]
4409. Your 3215 [3214], September 23, 5 p.m.
At meeting of Supreme Economic Council [Supreme
Council?] September 27 the following decision was taken:
This solution, which was proposed by Loucheur, French Minister of Reconstruction, was reached after discussions at three meetings and will accomplish the object immediately in view of allowing present utilization of tank steamers. It was understood in addition: (1) that the vessels should not be allowed to sail under the German flag but would go out under that of the A[llied] M[aritime] T[ransport] E[xecutive]; (2) that the crews could not be German; (3) that it was understood that no effort would be made to detain the ships in United States pending the final decision as to their ownership.
It is believed that this disposition of the matter will achieve the result which appears most essential; viz., that the Reparation obligations incumbent on Germany under the treaty will not [be] delayed by want of oil products the need for which in Germany at present is conceded on all hands. In the course of statements made both in the Supreme Council and in the Interim Reparation Commission, protests were made by the American representative against the unauthorized action of the Supreme Economic Council and it is now well understood that the United States Government does not consider itself bound by decisions made by this body in the absence of American representation on subjects in which the United States [Page 548] are interested. The protest which was telegraphed by American Mission to American Legation at Brussels on September 19th immediately on receipt of the news of the reference to Brussels, arrived in mutilated condition the day of the meeting in Brussels and American Legation did not receive a confirmation until after a vote had been passed revoking the exemption of the steamers and after the meeting had adjourned. No permanent detriment has, however, resulted from this accident as subject was considered by the Supreme Council as if no decision had been made by the Supreme Economic Council. Polk.