[Enclosure]
Agreement, June 7, 1920, between the
Reparation Commission and the United States Government in
Regard to Tankers of the Deutseh-Amerikanische Petroleum
Gesellschaft
Paragraph A.—The six D.A.P.G. Tankers
now at Leith and the two D.A.P.G. Tankers at Burnt Island to be
provisionally allocated to the United States Government and
temporarily placed under American Registry, with the
understanding that they shall fly the Inter-Allied flag together
with the United States flag.
Paragraph B.—If desired by the
Governments of France, Belgium and Italy the eight tankers may
be used until the question of final disposition has been
determined, for transporting such cargoes as are specified by
those Governments from the United States as follows:
- For transporting 2 cargoes each to France, tankers of
approximately 17,000 gross tons;
- For transporting 2 cargoes each to Italy, tankers of
approximately 9,000 gross tons;
- For transporting 2 cargoes each to Belgium, tankers of
approximately 12,000 gross tons.
France, Belgium and Italy respectively
undertake, at the termination of the use of any of said vessels
for conveyance of cargoes as above provided, to pay the
reasonable expense, including demurrage if any, of restoring the
vessels to such condition of cleanliness as they were at the
commencement of the first voyage, and, if such cleaning be
necessary for the purpose of any return voyage, agree to pay the
same expense. Should the Reparation Commission so decide,
tankers may also transport one or two relief cargoes from the
United States to Germany. The United States is to be free to
employ these tankers unrestrictedly to extent that they are not
needed for the transportation of cargoes to France, Italy,
Belgium or Germany, as above specified.
Paragraph C.—If any of tankers are used
for transportation of relief cargoes to Germany, freight rates
to be paid by Germany shall be fixed by the Reparation
Commission.
[Page 599]
Paragraph D.—The rate of freight shall
be fixed by the Reparation Commission, when vessels are used
otherwise than for German relief cargoes, provided the rate
fixed shall in no instance be less than the time charter rate
established by the United States Shipping Board on its own
tankers and current at the time of the voyage.
Paragraph E.—Irrespective of the
question as to whether there may be any obligation now to pay
charter hire to the German Government, it is agreed that all
proceeds arising from the use of vessels less the cost of
operation and fees for management will be credited, or, if so
desired, deposited as they accrue with the Reparation
Commission, to be held in trust pending a final disposal with
interest accrued in accordance with the decision as to the
disposition of the tankers as provided for below. If, however,
it is decided that the charter hire is due Germany, charter hire
on British bare boat rates less operating costs shall be
refunded to the United States by the Reparation Commission and
credited by it to Germany for the purchase of food in compliance
with agreements pursuant to Brussels Convention.
Paragraph F.—As soon as the Reparation
Commission or Independent Tribunal mentioned in paragraph “I”
has declared its decision upon the claim of the Standard Oil
Company, the United States will transfer tankers in accordance
with such decision, it being agreed, however, that if Standard
Oil Company makes good its claim to beneficial ownership of all
or any of the tankers in question then such tankers shall by the
terms of the decision be awarded to that company and transferred
to the United States flag.
Paragraph G.—If Standard Oil Company
fails to make good its claim to beneficial ownership of tankers
but is found to be entitled to financial reimbursement, then
Standard Oil Company shall be entitled to liquidation of the
award by transfer of tankers to a value equal to the award, the
tankers to be valued by the Reparation Commission or independent
tribunal in its award, and the particular tanker or tankers to
be selected by the Standard Oil Company and accepted by the
Company at the valuation aforesaid. Any award of tankers, other
than to the D.A.P.G. under either Paragraph F or Paragraph G,
shall be conditional upon compliance by the Standard Oil Company
with any order for repayment to Germany, or payment to the
Reparation Commission, of the compensation, if any, paid by
Germany to the D.A.P.G. or other owners in respect of the
cession of the tankers covered by the award, or with any such
order for obtaining and delivering to Germany or the Reparation
Commission, a release, or assignment, or agreement of indemnity,
covering claims against Germany or the Reparation Commission
which may arise out of such cession, provided that the
Reparation Commission or independent tribunal shall decide such
order to be necessary for the
[Page 600]
purpose of protecting or indemnifying the
Reparation Commission or Germany against claims arising out of
the cession of the tankers covered by the award.
Paragraph H.—The Reparation Commission
is to settle question of Standard Oil Company’s claim if the
United States finally ratifies the Peace Treaty and an American
representative is duly qualified and acting on the Commission
except as otherwise provided in Paragraph I.
Paragraph I.—If the United States has
not on July 1, 1920, ratified the Peace Treaty and an American
representative is not qualified and acting on the Commission,
then the Standard Oil Company’s claim shall, at the request of
the United States or other interested Governments, be
adjudicated by an independent tribunal to be agreed upon between
the United States and the several Governments concerned so that
all parties interested may be properly heard. The Reparation
Commission and the United States pledge themselves to use their
best efforts to arrange this tribunal without delay.
Paragraph J.—The Wilhelm A. Riedemann now building in Germany to be
completed and to follow fate of other tankers.
Paragraph K.—It is understood that
temporary allocation will in no way prejudice claim of
beneficial ownership of Standard Oil Company and on the other
hand will in no way recognize validity of any such claim.
For the Reparation
Commission
Dubois
John Bradbury
Paris, France,
June 7th, 1920.
For the United States
Government
Boyden
Paris,
France,
June 7th, 1920
