Foreign Relations of the United States: Diplomatic Papers, 1944, General: Economic and Social Matters, Volume II

840.50/7–1544

Report to the Governments of the United Kingdom and of the United States of America on Proposals for a European Inland Transport Organization, June 27, 1944

June 27, 1944

1. Representatives of the United Kingdom and the United States Governments were convened in London to discuss the problem of the organisation and rehabilitation of inland transport in Europe after the respective territories have been liberated. Fifteen meetings have been held between the 30th May and the 27th June. A Drafting Sub-Committee has also held frequent meetings.

2. Representatives of the Foreign Office, Ministry of War Transport, Treasury, War Office and Ministry of Production took part in our discussions on behalf of the United Kingdom Government. Representatives of the State Department and E.T.O.U.S.A.,² with the United States Embassy, took part on behalf of the U.S. Government. In addition, a representative of the Supreme Commander, Allied Expeditionary Force, has participated in the discussions. The following Report and the Draft Agreement annexed to it represent the views unanimously reached at our meetings.

3. The Government of the U.S.S.R. was represented at these discussions by M. D. G. Borisenko as observer.

4. Our meetings were held at the Foreign Office, initially under the Chairmanship of Mr. N. B. Ronald.³ On his being called away to other work, the Chair was taken over by Mr. W. G. Weston.⁴ We wish to express our appreciation of the very able assistance given to us by Mr. P. A. Brunt,⁵ who throughout acted as Secretary.

Conclusions of the Discussions

5. We have agreed that it is necessary to set up at the earliest possible moment a European Inland Transport Organisation, the members of which should be the Governments of the U.K., U.S.A., and U.S.S.R., the European Allied States and, at a later stage, Switzerland and Sweden. We accordingly recommend that such an Organisation should be set up on the lines of the Draft Agreement annexed to this Report. We have also agreed that even before the completion of such an Agreement the Governments of the U.K., U.S.A. and U.S.S.R. should immediately set up an Interim Commission on European Inland Transport (paragraphs 28–33 below).

Purposes of the Organisation

6. An Organisation of the kind proposed appears to us to be necessary for the following reasons:—

(a) After the liberation of Allied territories and occupation of enemy territories in Europe there will be widespread shortage and maldistribution of all forms of transport equipment and material and a general dislocation of the transport systems. Equipment will need to be secured for Allied countries. Displaced Allied equipment will have eventually to be restored to its original owners but may temporarily be required for use elsewhere. Transport equipment and material released by the Military Authorities will become available for civilian use. The fair distribution of all such equipment will require the existence of a central authority for allocation.

(b) As the liberation of Europe proceeds international traffic will include military traffic required by the Allied Commanders-in-Chief, relief traffic and the movement of millions of displaced persons. It is of common concern to the United Nations that this traffic should move freely. So long as a general deficiency of transport equipment in Europe continues, and conditions of social and political disorder obtain either generally or in parts of Europe, the pre-war arrangements for the movement of international traffic cannot be expected to work smoothly. It is probable that, in the absence of a co-ordinating body various national administrations would impose serious restrictions on the movement of rolling-stock out of their own territory. The effect of such a situation would be to retard the work of relief, to aggravate disorder and chaos and to add heavily to the responsibilities of the Allied Commanders-in-Chief. It is true that in areas of military operations the ultimate control of the transport systems will be a military responsibility. The Allied Commanders-in-Chief will, however, presumably divest themselves of this responsibility as soon as military necessities permit, and in the meantime are likely to welcome the existence of a body which can give them technical advice and smooth their relations with national administrations on transport questions. There will also be other, non-operational areas, where they never assume direct control. Wherever national responsibility for transport is assumed there should be effective means of ensuring not only the rapid movement of traffic of common concern to the United Nations, but also the co-ordinated development of measures for reorganising the national transport systems. This re-quies an inter-Allied Organisation armed with adequate powers.

(c) At a later stage, the co-operation established through the Organisation may help the Governments concerned to devise or administer satisfactory long-term arrangements for the movement of international traffic and the co-ordination of the various European transport systems. The work done by the Organisation could thus play an important part in furthering the social and economic progress of Europe.

Phases of the Organisation’s Work

7. The work of the proposed Organisation will fall into three phases. In the first phase its main purpose will be to help fulfil the common military needs of the United Nations. Wherever an Allied Commander-in-Chief retains direction over control of the transport system, the Organisation will assist him in a technical and advisory capacity. In areas in which the Allied Commanders-in-Chief are not directly responsible the Organisation will, with their consent, be in full exercise of its functions.

8. In the second phase the Organisation’s primary duty will be to facilitate the movement of military traffic, required by the occupation authorities, of relief goods and of displaced persons. It will also facilitate the rehabilitation of the transport system of Europe.

9. In the third phase the Organisation will facilitate the return to normal conditions. In this phase the question of making long-term arrangements for the co-ordination and improvement of European transport will have to be considered, and we have envisaged that the Governments concerned may wish the Organisation to take the lead in this work. Our Draft Agreement provides for this possibility.

The Draft Agreement

10. The Draft Agreement annexed to this Report has been drawn up in general terms so as to confer on the Organisation sufficiently wide powers to enable it to meet any of the possible contingencies with which it will be faced. We do not think that it would be wise or possible at this stage to lay down in precise and technical detail the work the Organisation should do and the methods which it should employ. This should be the task of the Interim Commission. Much preparatory technical work has been done by the Inter-Allied Technical Advisory Committee on Inland Transport (Hondelink Committee) set up by the Allied Post-War Requirements Bureau.

11. We have considered the question of the possible attachment of the Organisation to an authority of wider scope such as the proposed United Nations Commission for Europe. In the absence at present of any such general authority which would encompass both the civil and military purposes of the Organisation, there seems no alternative but to set the Organisation up as an independent agency. The following provisions indicate its relationship to other authorities and agencies:—

(a) Under Article XI, the Organisation is not to begin to operate (except in an advisory capacity) in any territory until the Allied Commanders-in-Chief are satisfied that military necessities permit and then subject to such special conditions as they may find it necessary to impose.

(b) In exercising its powers for the allocation of equipment and control of traffic, the Organisation is to work within the framework of priorities determined by the appropriate authorities of the United Nations. (Article VII, Sections 2, 3 and 6.)

(c) It is prescribed that the Organisation should collaborate with appropriate authorities and agencies of the United Nations, particularly the Allied Commanders-in-Chief. (Article VII, Section 15.)

(d) If any international body is created to co-ordinate the activities of specialised international organisations, the Organisation is to correlate its activities with those of such a body. (Article IX.)

The Constitution of the Organisation

12. Subject to financial control by a Council representative of all the member States, the powers of the Organisation are vested in an Executive Board of five members, of whom the Governments of the U.K., U.S.A. and U.S.S.R. are to nominate one each. This special position for the three Governments is necessary at least during the first period of the Organisation’s existence because—

(a) Initially the Organisation’s primary task will be to facilitate the fulfilment of common military needs for which these Governments are responsible.

(b) These Governments will be largely concerned with the provision of transport equipment and of the relief supplies which will have to be carried.

13. The Executive Board would collectively direct the policy and control the operations of the Organisation; we suggest that their directions would be transmitted for execution through a Director General, who would be responsible to the Board for day-to-day administration and operation.

Administrative Expenses (Article V, Section 1).

14. A very rough estimate suggests that the administrative expenses of the Organisation when it is in full operation might amount to 1¼ million pounds per annum. About one-fifth of this would be accounted for by the cost of the Headquarters, the rest by various regional and local offices, including those of River Commissioners. No accurate estimate can be made until more detailed planning of organisation has been done, and we suggest that this should be left to the Interim Commission. These expenses might be met in a number of ways. For instance, it might be possible to impose a levy on international traffic. This method would be based on the principle that the cost of organisation is naturally to be regarded as part of the cost of transport. If this method were adopted some means would have to be found of financing the Organisation before it began to earn revenue. Alternatively, the administrative expenses might be allocated between member Governments in accordance either with any scale adopted for other international organisations or in accordance with a scale specially appropriate to the Organisation. We recommend that this question should be explored by the Interim Commission.

Operational Expenses (Article V, Section 2).

15. In order to carry out its work effectively, the Organisation may have to engage in certain operations:—

(a) It may have to control the operation of, or even to own, a mobile reserve of rolling-stock to facilitate the movement of traffic of common concern. Such a reserve might be drawn, for example, from rolling-stock requisitioned from the enemy or imported from U.K. or U.S.A, The cost of providing this rolling-stock should be met by some self-liquidating procedure such as receipt from payments for use and from eventual sales. It is hoped that any dollars or sterling necessary to purchase equipment for such a reserve in the U.S.A. or U.K. might be found by the European countries jointly, possibly with the help of UNRRA. An initial loan financed or guaranteed by the U.K. and U.S. Governments might also be considered. We consider that this financial question should be pursued by the Interim Commission.

(b) In exceptional circumstances it may be necessary for the Organisation to undertake, as the agent of the local Government or of UNRRA, to operate transport on certain routes or in certain areas. The Organisation might also need to place urgent orders for the repair of transport facilities at vital points. In principle, the costs incurred should be borne by the Government for whose benefit this work is undertaken. In so far as such costs were in foreign exchange which the Government was unable to find, the costs could probably be borne by UNRRA.

Allocation of Transport Equipment (Article VII, Sections 2 and 3, Article VIII, Sections 2 and 4).

16. The Organisation will be responsible for the allocation for use of transport equipment and material—

(a) imported into Continental Europe or made available by the Allied Commanders-in-Chief;

(b) made available for export from any territory of Continental Europe under the authority of a member Government to any other such territory;

(c) made available to the Organisation by occupation authorities from the transport equipment and material under their control.

As regards (a) and (b), the Organisation’s function will not overlap with that of the Combined Boards. The Combined Boards would decide what transport equipment and material can be made available to Europe from overseas; the Organisation will determine within that allocation the proportions to be allotted to each European country. It is a corollary of the Organisation’s power of allocation of this equipment that the supplying countries should undertake not to export such equipment to the territories of member Governments in Continental Europe except with the Organisation’s consent. As regards (c) the extent to which enemy equipment can be made available for other countries would be determined by the occupation authorities in consultation with the Organisation. Equipment in categories (a), (b) and (c) may be allocated temporarily, so that it can be transferred elsewhere if needs change, and the Organisation may also impose conditions as to allocation, e.g., that the equipment allocated or its equivalent be made available for international traffic.

17. The Organisation would also be responsible for assisting the appropriate authorities, e.g., a Reparation and Restitution Commission, to return to its original owners Allied equipment which has been removed from national territory. Such return will be desirable as soon as practicable both on political and technical grounds. In order to avoid dislocation in the European transport system, however, the Organisation will be enabled to defer such return where it deems it necessary. (Article VII, Section 3).

Control of Transport Equipment (Article VII, Sections 6 and 7).

18. The Draft Agreement gives authority to the Organisation to direct the movement of traffic of common concern; this implies that the national administration should provide suitable transport equipment for the purpose of such movement at request of the Organisation. The establishment of conditions in which the normal movement of traffic across the national frontiers is possible is the Organisation’s goal. There may, however, be obstruction or delay in such movement. In such cases the Organisation’s powers of allocation, described in Paragraph 16, should provide it with an important sanction; but it may also be necessary for it to have under its more immediate control a small mobile reserve of rolling-stock for use entirely in traffic of common concern. The questions whether such a mobile reserve should be owned by the Organisation or owned by some other agency and held at its disposal and to what extent it should be responsible for administration of rolling-stock in such a mobile reserve are questions which can best be settled by the Interim Commission or by the Organisation in the light of the conditions actually obtaining and of the funds available (see Paragraph 15 above).

Co-ordination of European Transport Systems (Article VII, Sections 11–14).

19. The Organisation should set up or re-establish as soon as possible appropriate machinery for co-ordination of the various transport systems.

20. As regards railways, the Organisation should be responsible for bringing the Berne Conventions into force with such modifications as may be necessary to fit them to emergency conditions. These Conventions form the basis for determining the obligations and rights of railway administrations and users in international traffic. Many of the pre-war or existing associations of railway administrations which provide machinery for regulating international through working of railways and for securing uniformity in railway practice among the European administrations should continue to operate or should be revived under the auspices of the Organisation.

21. The Organisation is also to initiate the establishment of suitable provisional administrations for the international waterways of Europe. It is unlikely that the revival of the pre-war Conventions concerning the International Commissions for the Danube, Rhine, Elbe and Oder will be appropriate to post-war conditions. These Conventions will certainly be inadequate during the emergency period as they do not provide for the control of employment of inland water craft. The provisional administrations would be responsible not only for ensuring the navigability of the inland waterways, maintenance of the permanent installations, etc., but also for exercising the Organisation’s control over traffic in respect of the international waterways.

22. The Organisation will also make arrangements to ensure that road vehicles move freely across frontiers.

23. The Organisation will recommend to member Governments measures to secure co-ordination both between the different national transport systems and between different methods of transport.

Relations With the Occupation Authorities (Article VI, Sections 3 and 4).

24. The central position of the enemy countries requires that control over their transport systems should be co-ordinated with European transport generally. For this reason we have so drafted the proposed Agreement that it would apply in ex-enemy as in Allied territories. The member Governments which assume control over ex-enemy territory would accept the same obligations in respect of such territory as would the Allied Governments in respect of their own national territories in Continental Europe. During the period of military control the Organisation would function in enemy territory (as in Allied territory) to the extent requested by the Allied Commander-in-Chief. When civilian control replaces military, however, the Organisation would exercise its full functions in ex-enemy territory, working through the occupation authorities on all matters on which it would work through Allied Governments in respect of their own national territory.

Amendment and Withdrawal (Articles XI and XIII).

25. The Agreement as drafted would remain in force until two years from the date of general cessation of hostilities by Germany and could only be amended by unanimous consent. Member Governments undertake not to withdraw in this period. At the end of this period it is probable that more normal conditions will have been restored and that there will be less need for an Organisation with the wide powers proposed in the draft. We have, therefore, proposed that the provisions of the Agreement may then be amended or terminated by a two-thirds majority of the Council provided that no alteration is made which extends the financial liability or obligations of a member Government without that Government’s consent. At that time it would be open to a member Government to withdraw.

26. If the Organisation has done valuable work we hope that the countries directly concerned will wish to preserve it in a modified form. The Governments of the U.K., U.S.A. and U.S.S.R. may, however, no longer wish to participate so closely or may prefer to leave the Organisation.

Procedure in Approaching the Allied Governments

27. In our view, the establishment of the Organisation is a matter of great urgency if it is to be ready in time to operate when and where required. We recommend, therefore, that our Governments should give the most urgent consideration to the Draft Agreement annexed to this Report. We also express the earnest hope that the Government of the U.S.S.R. will feel able, at an early stage, to give its general approval to the proposals. When the Draft Agreement has been approved by the three Governments we suggest that the U.K. Government should send a copy to each of the European Allied Governments, together with an invitation convening them to a Conference to be held in London as soon as possible. In our view such a Conference should not be postponed beyond the end of July.

Proposed Interim Commission

28. The Draft Agreement contains inevitably some controversial features and there will consequently be a lapse of time (which may be considerable) between its presentation to and its acceptance by the Allies. Meanwhile there are urgent problems in the field of transport demanding collaboration between the Governments of the U.K., U.S.A. and U.S.S.R., and the European Allies, and pointing to the necessity for the immediate establishment of some more informal body under the auspices of the three Governments. Thus:—

(a) The military authorities will require technical assistance in many transport questions, particularly those relating to arrangements for through movement of traffic across national frontiers and the possible continuance or revival of machinery for facilitating such movement.

(b) It is clearly desirable that production capacity in U.S.A. and U.K. should be allocated before it disappears, for the manufacture of transport equipment which will be urgently needed in the post-military period. For this purpose estimates of requirements must be sponsored with the appropriate Combined Board and orders placed within the allocation which it makes.

(c) In order that the Organisation, when set up, may be ready to operate promptly and efficiently, it is desirable that detailed plans should be laid and staff engaged or earmarked in advance. In particular, arrangements should be made to ensure—

(i) continuity in transport control between the military and post military periods and

(ii) availability to the Organisation, when set up, of full and accurate information about the transport conditions obtaining during the military period.

29. During the interim period, in which such a stopgap body will work, control of the transport systems in liberated or occupied territory will rest with the military authorities. The Draft Agreement provides that the Organisation, if in existence in this period, would act only in an advisory capacity. The proposed stopgap body should also be advisory in character. It could not exercise in its own right the executive functions attributed to the Organisation under the Agreement until the Allied Governments have accepted the correlative obligations which that Agreement provides. We suggest that it should be set up as an “Interim Commission on European Inland Transport” and that it should be responsible to the Governments of the U.K., U.S.A. and U.S.S.R., who, through the Allied Commanders-in-Chief, will at this stage be in control of the European transport systems concerned. The Commission should consist of one member appointed by each of the Governments of the U.K., U.S.A. and U.S.S.R., who should possess the qualifications necessary for membership of the Executive Board of the Organisation when set up. The administrative expenses of the Commission should be borne by the three Governments in agreed proportions and possibly by arrangements with the Allied Governments for the payment of salaries of any of their nationals who might be assigned to the Commission.

30. The Interim Commission’s primary purpose will be to advise and assist the Allied Commanders-in-Chief so far as required by them. Its other functions will include the study of the existing state of transport facilities in Europe, the detailed planning of the Organisation and of the eventual operations, the preparing and perhaps sponsoring of estimates of requirements for transport equipment.

31. The Commission (and thereafter the Organisation) will start with the benefit of the considerable work already done in planning in the field of European transport, including the work of the Inter-Allied Technical Advisory Committee on Inland Transport. The Commission might suitably draw for its staff on the Secretariat of that Committee, and also on qualified Allied nationals.

32. The Commission will need expert staff, many of whom the Allied Governments can best provide. While, therefore, the Governments of the U.K., U.S.A. and U.S.S.R. should establish the Commission the collaboration of the Allied Governments in the work of the Commission and in the provision of its staff should be sought as soon as possible. In laying the Draft Agreement before them, the Governments should explain the compelling reasons which had led them to establish the Interim Commission. The Allied Governments should also be invited to agree to the re-establishment of the Technical Advisory Committee on Inland Transport to act in an advisory capacity to the Commission.

33. The Commission should work under a Directive on the lines; of the annexed draft directive.

(For the United Kingdom)

W. G. Weston

(For the United States of America)

Walter A. Radius

27 June, 1944

[Annex I]

Draft Agreement for a European Inland Transport Organization

Whereas, after the liberation of any territories of the United Nations in Europe, and after the occupation of any enemy territories in Europe, it is expedient for the fulfilment of the common military needs of the United Nations and in the interest of the social and economic progress of Europe, to provide for co-ordination both in the control of traffic and in the allocation of transport equipment and material with a view to ensuring the rapid movement of supplies both for military forces and the civil population and for the speedy repatriation of displaced persons, and also with a view to creating conditions in which the normal movement of traffic can be more rapidly resumed;

The Governments or Authorities whose duly authorised representatives have subscribed hereto;

Have agreed as follows:—

Article I

There is hereby established the European Inland Transport Organisation, hereinafter called “the Organisation.”

Article II.—Membership

The members of the Organisation shall be the Governments or Authorities signatory hereto and such other Governments or Authorities as may upon application for membership be admitted thereto by the Council.

Wherever the term “member Government” is used in this Agreement it shall be construed to mean a member of the Organisation, whether a Government or an authority.

Article III.—Constitution

1. The Organisation shall consist of a Council and an Executive Board with the necessary headquarters, regional and local staff.

The Council

2. Each member Government shall name one representative and such alternates as may be necessary upon the Council. The Council shall, for each of its sessions, select one of its members to preside at the session. The Council shall determine its own rules of procedure. Unless otherwise provided in this Agreement or by action of the Council, the Council shall vote by simple majority.

3. The Council shall be convened in regular session not less than twice a year by the Executive Board. It may be convened in special session whenever the Executive Board shall deem necessary and shall be convened within 30 days after request therefor by one-third of the members of the Council.

4. The Council shall perform the functions assigned to it under this Agreement and review the work of the Organisation generally.

The Executive Board

5. The Executive Board shall consist of five members who shall be appointed by the Council for their knowledge of inland transport and administrative capacity and shall include one member nominated by each of the Governments of the Union of Soviet Socialists Republics, of the United Kingdom, and of the United States. Each member of the Executive Board shall be provided with a deputy similarly nominated and appointed. The members and their deputies shall be appointed in the first place for one year.

The Executive Board shall choose its own Chairman, subject to ratification by the Council.

6. The Executive Board shall perform the executive functions assigned to the Organisation. It shall act, if necessary, in accordance with the ruling of the majority of its members. It shall present to the Council such reports on its performance of its functions as the Council may require.

7. The Executive Board shall appoint such headquarters, regional and local staff as it shall find necessary and may delegate to them such of its powers and on such conditions as it may deem appropriate.

8. Each member Government may appoint a representative for purposes of consultation and communication with the Executive Board. Such representative shall be fully informed by the Board of all activities of the Organisation.

Article IV

The Organisation shall have powers to acquire, hold and convey property, to enter into contracts and undertake obligations, to designate or create agencies and to review the activities of agencies so created, to manage undertakings and in general to perform any legal act appropriate to its object and purposes.

Those powers are vested in the Council. The Council may, however, delegate such of these powers as it may deem necessary to the Executive Board, including the power of subdelegation. The Executive Board shall be responsible to the Council for the upkeep and administration of any property owned by the Organisation.

Article V.— Finance

1. The Executive Board shall submit to the Council an initial budget and from time to time such supplementary budgets as may be required, covering the necessary administrative expenses of the Organisation. Upon approval of a budget by the Council the total amount approved shall be raised in such manner or be allocated in such proportions as may be agreed between the member Governments. Each member Government undertakes, subject to the requirements of its constitutional procedure, promptly to contribute to the Organisation, in such currency or currencies as may be agreed with the Executive Board, its share of the expenses. Each member Government shall also provide such facilities as are required for the purposes of the Organisation, for the transfer of sums held by the Organisation in that Government’s own currency into other currencies.

2. The Organisation shall not incur any expenses, other than necessary administrative expenses, except under the authority of the Council. Proposals for such expenses shall be submitted by the Executive Board to the Council, and when approved by the Council such expenses shall be met by contributions which a member Government or Governments may agree to make or in such other manner as may be agreed between Governments.

Article VI.—The Scope of the Organisation

1. The Organisation shall exercise the functions set out in Article VII in respect of any territory in Continental Europe, under the authority of any member Government, in respect of which it has commenced operations in accordance with Article XI.

2. In respect of any territory in Continental Europe in which the Allied Commanders-in-Chief retain responsibility for the direction of the transport system, the Organisation shall give advice or assistance to the Allied Commanders-in-Chief, if so requested by them, on all questions with which it is empowered to deal under Article VII.

3. The term “territory under the authority of a member Government” shall be construed to mean territory either in the sovereignty of a member Government or territory over which a member Government or Governments are exercising authority or control. Throughout this Ageement the term “Continental Europe” shall mean all territories on the mainland of Europe under the authority of member Governments, but shall not extend to territory of the United Kingdom or of the Union of Soviet Socialist Republics.

4. The Organisation shall treat with any occupation authorities set up by member Governments in respect of any territory in which the occupation authorities are exercising effective control in place of the sovereign Government of such territory on all matters on which the Organisation would treat with such sovereign Governments if they were member Governments.

Article VII.—Executive Functions

The executive functions of the Organisation shall be generally to take action towards the rehabilitation and re-equipment of the transport system in Continental Europe and to co-ordinate the movement of traffic of common concern in these transport systems and, in particular, shall include the following:—

Transport Equipment and Material

1. The Organisation shall estimate the requirements of transport equipment and material for the territories under the authority of the member Governments in Continental Europe.

2. The Organisation shall to the extent necessary for the fulfilment of its purposes, allocate and determine the distribution for use to the member Governments concerned, on such conditions as it may prescribe and within the framework of priorities determined by the appropriate authorities of the United Nations, of transport equipment and material—

(a) imported into Continental Europe or made available by the Allied Commanders-in-Chief;

(b) made available for export from any territory of Continental Europe to any other such territory;

(c) made available to the Organisation by occupation authorities from the transport equipment and material under their control.

The Organisation may from time to time set apart any such transport equipment and material referred to in (a), (b) and (c) above as it may deem necessary for facilitating traffic of common concern, and retain or take direct control over its use for such period or periods as it may deem necessary.

The Organisation shall keep full records of transport equipment and material allocated and set apart in accordance with the provisions of this section.

3. In respect of equipment belonging to a member Government or to persons or bodies under the authority of a member Government and found during the liberation of Europe outside the territories under the authority of that member Government, the Organisation shall endeavour to arrange the restoration of such equipment to its rightful owners as soon as is practicable and convenient, acting in accordance with the general policies of the appropriate authorities of the United Nations regarding restoration and restitution of property removed by the enemy. Where immediate restoration would unduly prejudice the operation of essential transport in any area, the Organisation may make arrangements for the temporary use of equipment pending its restoration.

4. The Organisation shall at the earliest practical time organise a census of rolling-stock in Continental Europe and of such other transport equipment and material there as may appear necessary for the proper discharge of its functions.

Traffic

5. The Organisation may make such recommendations to the appropriate authorities as it deems necessary with respect to particulars of projected movements of supplies, stores or persons, having regard to the transport facilities available for the movement of such traffic.

6. The Organisation may direct, within the framework of the priorities determined by the appropriate authorities of the United Nations, the movement of traffic of common concern on all routes of transport in Continental Europe.

7. The Organisation may take any practicable step to supervise and regulate the use and movement of transport equipment engaged in the carriage of traffic of common concern.

Charges

8. The Organisation shall recommend to member Governments the principles by which transport charges for traffic of common concern in Continental Europe should be fixed by them in accordance with the provisions of Section 8 of Article VIII with a view to securing that such charges shall be as low and simple and as uniform in the various territories as may be practicable. This paragraph shall not apply to military traffic under the control of the Allied Commanders-in-Chief except at their request.

Rehabilitation of Transport Systems

9. The Organisation may make recommendations to any member Government designed to promote the rehabilitation of the transport systems in Continental Europe, and as to the priority in which works or projects in respect of the rehabilitation or improvement of transport facilities shall be carried out.

10. While it remains the task of each member Government to provide for the efficient operation of the transport systems in Continental Europe for which it is responsible, the Organisation may exceptionally, at the request of any member Government, give any practicable assistance in the rehabilitation or operation of transport in any territory in Continental Europe under the authority of such Government on such conditions as may be agreed between such Government and the Organisation.

Co-ordination of European Transport

11. The Organisation shall initiate and co-ordinate common action to secure the maintenance or resumption of international arrangements for through working of railways and circulation of rolling-stock, and shall promote the establishment of appropriate machinery for co-operation between railway administrations.

12. The Organisation shall initiate the establishment of suitable administrations for the international waterways of Europe designed to promote their restoration and maintenance and to ensure the greatest possible freedom of movement. Such administrations may be established provisionally pending international regulation of the matter.

13. The Organisation shall take such steps as may be practicable to facilitate the movement of road transport vehicles across frontiers.

14. The Organisation shall make recommendations to the member Governments designed to promote adequate co-ordination of all European transport for the fulfilment of the common military needs of the United Nations or in the interests of the social and economic progress of Europe.

Relations With Other Agencies

15. The Organisation shall collaborate as may be required with appropriate authorities and agencies of the United Nations and other international organisations. It shall give any assistance in its power to the Allied Commanders-in-Chief in the fulfilment of the common military needs of the United Nations.

16. The Organisation shall arrange for consultation through appropriate machinery with representatives of persons employed in inland transport.

Miscellaneous

17. The Organisation may advise the member Governments and any appropriate authorities of the United Nations on the priority to be given in the interests of the rehabilitation of European transport to the repatriation of displaced transport personnel and skilled and other workers required for the production, maintenance or repair of transport equipment and material, and when requested by the responsible authorities the Organisation shall endeavour, with the cooperation of the Governments, to secure additional transport personnel or other suitable workers for any areas in which shortages of workers in any category may have occurred.

18. The Organisation shall give all practicable assistance through the appropriate authorities to any member Government when requested by that Government in obtaining supplies of fuel, power and lubricants to meet the needs of traffic of common concern in order that that Government may fulfil its obligations under Section 6 of Article VIII.

Article VIII.—Obligations of member Governments

1. Every member Government shall, upon request, provide the Organisation with such information as is essential for the performance of its functions.

2. Every member Government undertakes that—

(i) it will facilitate the execution of Section 3 of Article VII and will recognise the arrangements for temporary use made by the Organisation under that Section;

(ii) it will not, except with the consent of the Organisation—

(a) seize nor make use of any transport equipment and material in Continental Europe found outside the territories under its authority, even though belonging to it or to persons or bodies under its authority;

(b) seize nor make use of transport equipment and material found within territory under its authority but not belonging to it or to persons or bodies under its authority;

(c) seize nor make use of transport equipment and material coming within territory under its authority under arrangements made under the auspices of the Organisation for the movement of traffic of common concern.

The provisions of this Section shall not affect the rights of the Allied Commanders-in-Chief within any territory in respect of which the Organisation has not begun to exercise its functions under Article VII.

3. Every member Government undertakes to co-operate fully in the census for which provision is made in Section 4 of Article VII.

4. So long as the Organisation deems necessary for the exercise of its functions under Section 2 of Article VII every member Government undertakes that, except with the consent of the Organisation, it will not—

(a) permit the import into territories in Continental Europe under its authority of any transport equipment and material;

(b) permit the export from its own territories of transport equipment and material to any territories in Continental Europe under the authority of member Governments.

The provisions of this Section shall not debar the Allied Commanders-in-Chief from importing or exporting or permitting the import or export of transport equipment and material into or out of any territory. The provisions of this Section shall apply to the disposal of military transport equipment and material provided that the Allied Commanders-in-Chief are satisfied that military necessities permit.

5. Every member Government shall put into effect directions as to movement of traffic given by the Organisation in accordance with Section 6 of Article VII.

6. Every member Government shall take all measures practicable and necessary to ensure in respect of the territory under its own authority that adequate supplies of fuel, power and lubricants are available for the movement of traffic of common concern through or within any territory in Continental Europe.

7. Every member Government undertakes not to levy nor permit the levy of customs duties or other charges, other than transport charges and admissible transit charges, on traffic of common concern in transit through territories in Continental Europe under its authority.

8. Every member Government undertakes to secure that transport charges made within territories in Continental Europe under its authority on traffic of common concern, including such traffic in transit through such territories, shall be as low and simple and as uniform with those in other territories (to which this Agreement applies) as is practicable. Every member Government shall give the fullest consideration to recommendations made by the Organisation in accordance with Section 8 of Article VII and report to the Organisation on the action taken.

9. Every member Government undertakes to co-operate with the Organisation in the exercise of its functions under Sections 11, 12 and 13 of Article VII.

10. Every member Government shall use its best endeavours in its relations with any other international organisations, agencies or authorities to give effect to the provisions of this Agreement.

11. Every member Government shall give the fullest consideration to any recommendations made by the Organisation, in accordance with Sections 9 and 14 of Article VII and report to the Organisation on the action taken.

12. Every member Government shall grant all facilities to and confer authority on members of the staff of the Organisation so far as such facilities and authority are necessary to the performance by the Organisation of its functions in accordance with Article VII.

13. Every member Government shall in territory under its authority take all steps in its power to facilitate the exercise by the Organisation of any of the powers referred to in Article IV.

Article IX

1. The Organisation shall correlate its activities with those of any international body which may be set up to co-ordinate the activities, of international organisations with specialised responsibilities.

2. The Council shall approve arrangements for defining the relationship of the Organisation to any such body.

Article X

The functions of the Organisation shall relate to all forms of transport by road, rail, waterway or pipeline, within the territories of the Continent of Europe in which the Organisation operates, but shall not include seagoing shipping save such shipping as may from time to time be agreed between member Governments and the shipping authorities of the United Nations to be available for coastwise traffic within any territory in Continental Europe under the authority of that Government, and for so long as it may be available for that traffic.

In regard to the handling of traffic in ports where seagoing vessels are discharged or loaded, the Organisation shall co-operate with the appropriate authorities of the member Governments and any shipping organisation set up by them to ensure—

(a) the rapid turn-round of ships;

(b) the efficient use of port facilities in the best interests of the prompt clearance of cargo of common concern.

Article XI

1. This Agreement shall come into force on . . . . . . It shall remain in force for two years from the date of general cessation of hostilities by Germany and shall thereafter remain in force, subject to the right of any member Government to give six months’ notice in writing to the Council of its intention to withdraw from this Agreement.

2. The Organisation shall begin to exercise its functions under the provisions of Article VII (other than Section 1 thereof) and Article X in any territory in Continental Europe as soon as the member Government concerned becomes the effective authority for transport in that territory, provided that the Allied Commanders-in-Chief are satisfied that military necessities permit, and under such conditions as they may find it necessary to impose.

Article XII

In the event of there being any inconsistency between the provisions of this Agreement and the provisions of any Agreement already existing between any of the member Governments, the provisions of this Agreement shall, as between such member Governments, be deemed to prevail.

Article XIII

Until the end of the period of two years after the cessation of hostilities by Germany, the provisions of this Agreement may only be amended, suspended, or terminated by a unanimous vote of the Council. At any time, however, after that date any provision of this Agreement may be amended, suspended or terminated by a two-thirds majority of the Council, provided that no alteration shall be made in the provisions of this Agreement so as to extend the financial liability or obligations of any member Government without that Government’s consent.

Article XIV—Definitions

For the purpose of this Agreement the following definitions have been adopted:—

(i) The term “transport equipment and material” shall include, so far as the Executive Board deems it necessary for the execution of the functions of the Organisation—

(a) any items of fixed and mobile equipment, stores (other than fuel), plant and spares and accessories of all kinds required for use of transport undertakings, including equipment required for use in ports whether ashore or afloat or required for use in connection with pipelines;

(b) material for the rehabilitation or construction of roads, railways, bridges, ports, pipelines and inland waterways;

(c) major plant and tools specifically required for use in the repair, manufacture or production of equipment for use by transport authorities.

(ii) The term “traffic of common concern” shall include—

(a) personnel, stores, supplies or other traffic to be moved in accordance with the requirements of the Allied Commanders-in-Chief;

(b) displaced persons to be repatriated and other civilians to be moved in accordance with the priorities determined by the appropriate United Nations authority;

(c) supplies for civil needs to be moved in accordance with the priority determined by the appropriate United Nations authority.

(iii) The term “persons or bodies under the authority of a member Government” shall mean “persons or bodies operating within territory under the authority of a member Government.”

(iv) The term “transport charges” shall include, in addition to freight or conveyance charges, any other incidental charges, such as tolls, port charges, charges for warehousing and handling goods in transit, which may affect the cost of transport.

(v) The term “Allied Commanders-in-Chief” shall mean “those Commanders-in-Chief designated by the appropriate authorities of the Union of Soviet Socialist Republics, United Kingdom and United States of America for commands on the Continent of Europe”.

[Annex II]

Draft Directive to Interim Commission on European Inland Transport

You, with the representatives of the Governments of the

• U.K. and U.S.A.
• U.S.A. and U.S.S.R.
• U.K. and U.S.S.R.

will constitute the Interim Commission on European Inland Transport.

1. The Commission will give any advice and assistance in its power to the Allied Commanders-in-Chief so far as they may require such advice or assistance.

2. In particular the Commission will assist them in making arrangements to facilitate the free movement of through-traffic across national frontiers, including arrangements for the continuance or revival, so far as may be necessary, of any existing or pre-war machinery for this purpose. If necessary it will send representatives to Switzerland to ascertain how much machinery has been working during the war and to concert plans for future arrangements with the Swiss Federal railways.

3. The Commission will appoint representatives at the headquarters of the Allied Commanders-in-Chief and at such points in the field as the Allied Commanders-in-Chief think requisite.

4. The Commission will, as far as possible, obtain and keep up-to-date information on all matters affecting the transport situation in Europe, which may be necessary to enable it to carry out its tasks, or which may be required by the European Inland Transport Organisation when set up.

5. The Commission will be responsible for preparing and sponsoring with the supply authorities up-to-date estimates of requirements for transport equipment so far as these relate to the post-military period.

6. The Commission will, within the funds to be made available by Governments, engage such staff as may be required for the fulfilment of the responsibilities entrusted to it above. In selecting such staff it will bear in mind the desirability of employing a proportion of qualified officers familiar with the national transport systems concerned. It will also prepare plans for the future staff of the Organisation, having regard to the desirability of maintaining continuity with the Organisation developed during the military period.

7. The Commission will in general work towards the fulfilment of the purposes of the Draft Agreement for a European Inland Transport Organisation. It will be responsible for developing plans for the work to be done by the Organisation when set up. It will also be responsible for making recommendations to the Governments on the means of providing for and allocating both administrative and other expenses of the Organisation.

8. The Commission will report to the Governments of the U.K., U.S.A. and U.S.S.R. It will also make arrangements to keep in touch with the Allied Governments, with the E.A.C., U.N.R.R.A., and other appropriate United Nations agencies.

2. European Theater of Operations, United States Army.
3. Nigel Bruce Ronald, British Assistant Under-Secretary of State for Foreign Affairs.
4. Head of the Foreign Shipping Relations Division, British Ministry of War Transport.
5. Of the British Ministry of War Transport.