Paris Peace Conf. 180.0501/2
Supreme Economic Council: Second Meeting of the First Session Held at
the Ministry of Commerce [on 25th February, 1919, at 3 p.m.]
February 25,
1919, 3 p.m.
The Supreme Economic Council held its second meeting on the 25th of
February, 1919 at 3 p.m. under the Chairmanship of Lord Robert
Cecil.
The Associated Governments were represented as follows:—
Great Britain |
Lord Robert Cecil |
|
Sir John Beale |
United States of America |
Mr. McCormick |
|
Mr. Hoover |
|
Mr. Norman H. Davis |
|
Mr. B. M. Baruch |
France |
M. Clémentel |
|
M. Klotz |
|
M. Loucheur |
Italy |
M. Crespi |
|
M. Chiesa |
8. Minutes of the Preceding
Meeting.
The Minutes of the preceding Meeting were read and approved.
9. Powers of the Council.
The council were informed that on 21st of February 1919 the Supreme
Council of the Allied and Associated Powers have decided:1
“That measures of a transitory character shall be referred to the
Economic Council established on President Wilson’s proposal,
while those of a permanent character shall be considered by a
special Commission to be established later, and of the terms of
reference to their new functions:
To examine such economic measures as should be taken during the
reconstruction period after the war so as to ensure:—
- a)
- The due supply of materials and other commodities
necessary for the restoration of devastated
areas.
- b)
- The economic restoration of the countries which have
suffered most from the war.
- c)
- The supply of neutral and ex-enemy countries without
detriment to the supply of the needs of Allied and
Associated countries.[”]
The following proposals suggested by the American Delegates were
adopted:—
- 1.
- The establishment of Financial, Blockade, Raw Materials and
Shipping Sections, either by the absorption of the existing
Inter-Allied
[Page 5]
Organizations
or by requesting each of the Associated Governments to designate
one or more representatives to each section to be formed.
- 2.
- The name of the Permanent Committee of the Supreme Council of
Supply and Relief to be changed to the “Food Section of the
Supreme Economic Council.”
- 3.
- The functions of the Supreme Council of Supply and Relief and
the Inter-Allied Food Council to be assumed by the Food Section
of the Supreme Economic Council. The Committee of
Representatives of the Inter-Allied Food Council in London will
continue as a sub-committee of the Food Section.
- 4.
- The Associated Governments to be asked to designate
immediately their delegates for the sections of Raw Material and
Finance.
- 5.
- The Allied Maritime Transport Council to continue for the
present and to act as the Transport Section of the Supreme
Council.
At the request of the French Delegates, it was agreed that the Financial
Section should consider all questions submitted to the Council which may
have a financial bearing, but this section is not expected to deal with
questions of a financial character outside the scope of this
council.
10. Food Supplies for France and
Italy.
The Italian and French Delegates submitted statements dated 23rd (1)2 and 24th February (2) pointing out the seriousness
of the Italian and French food position, partially in view of the
present shortage of tonnage.
It was agreed to refer the memoranda to the Shipping Section for
consideration and report at the earliest possible date, and, so far as
was necessary, to the Food and Financial Sections.
11. Relaxation of Blockade on Neutral
Countries of Northern Europe.
With reference to Minute 53 the American
Delegates reported that it had been decided for the present to withdraw
the proposal that the blockade on foodstuffs on the northern neutrals
should be removed entirely.
12. Blockade of Austria.
With reference to minute 3 the American Delegates proposed that the
blockade section should prepare a report on the question of the
relaxation of the blockade on raw materials to the countries included in
the former Austro-Hungarian Empire.
[Page 6]
13. Supplies for Liberated
Countries.
A memorandum from the Food Section dated 24th February (3) regarding the
financial cost involved in the execution of the minimum programme for
the relief of liberated territories was submitted and referred to the
Financial Section for consideration. Agreed.
14. Supplies for Austria, Hungary and
Bulgaria.
A.
Finance. A Memorandum from the Food Section dated
24th February (4) reporting on the financial position as regards food
supplies for Austria, Hungary and Bulgaria was submitted. The American
Delegates, referring to the difficulty of realizing the credits offered
by the Austrian Financial delegates, proposed that the principle should
be accepted that payment for food furnished for relief should be
recognized as a first lien or charge upon Austria’s assets of any
kind.
It was agreed that the Council should give this direction to their
Finance Section, subject to the reservation that this action in the case
of Austria should not be regarded, in view of the urgency of Austria’s
needs, the small amount involved and the Austrian military situation, as
a precedent for other cases.
B.
Transport. The American Delegates referred to the
extraordinary difficulties of transport being experienced as a result of
differences between the various sections of the former Austro-Hungarian
Empire and between them and Italy, and pointed out that unless
satisfactory railway communications were re-established at an early date
it would be quite impossible to ensure an adequate movement of
foodstuffs from Trieste to these districts.
After general discussion of the position it was agreed:—
- (a)
- to refer the matter to the Technical Communication Committee
appointed on 17th February to deal with the re-establishment of
communications in South Eastern Europe for consideration in
collaboration with the Food Section;
- (b)
- that the sub-Committee should at the same time consider the
possibility of sending foodstuffs to Czecho-Slovakia through
Northern Germany by the Elbe or the Rhine and that
representatives of Marshal Foch and of Blockade Section should
be requested to assist at the discussions.
In the meanwhile Signor Crespi agreed to impress upon his Government the
urgent necessity for facilitating to the utmost, in so far as is
compatible with strict military requirements, the passage of foodstuffs
to all parts of the former Austro-Hungarian Empire, by all routes which
may be open to or under the control of the Council or its delegates.
[Page 7]
15. Revictualling of Germany.
A memorandum from the Food Section dated 23rd February (5 & 6) was
submitted and referred to the Financial Section for consideration.
It was agreed, however, that the proposal made by the Swedish Government
that they should be permitted to furnish 50,000 tons of flour for
distribution by the Swedish Red Cross in Germany, should be
accepted.
16. Revictualling of Left Bank of the
Rhine.
A memorandum from the Food Section dated 24th February (7) embodying
proposals for the supplying of foodstuffs to the left bank of the Rhine
was submitted.
It was agreed
- (a)
- that this provisioning should be separated from that of the
right bank of the Rhine and should be carried out under the
auspices of an Inter-Allied Military Committee to be set up
under the High Command and reporting to the Food Section of the
Council.
- (b)
- that the financial proposals embodied in the above Memorandum
should be referred to the Financial Section for
consideration.
17. Transport.
- (a)
- Enemy tonnage. A letter from the Allied
Maritime Transport Council dated 4th February (8) addressed to the
Supreme War Council and referred to the Supreme Economic Council
regarding the employment of enemy tonnage was read.
- The resolutions embodied in this letter were accepted in the
light, however, of certain explanatory notes mentioned by Mr. Salter
as included in the Minutes of the Allied Maritime Transport Council
(9).
- (b)
- Tonnage for relief. A note from the Food
Section dated 23rd February (10) was submitted. The British
Delegates referred to the general scarcity of tonnage necessary for
the execution of the allied Food Relief Programme and submitted that
the position should be carefully examined by the Allied Maritime
Transport Council.
Agreed.
18. Communications in Eastern
Europe.
With reference to minute 2, a report for the Technical Communication
Committee dated 22nd February 1919 (11) embodying proposals for ensuring
the re-establishment of communication in Eastern Europe was
submitted.
It was agreed:
- (a)
- that the financial responsibilities involved in the proposals
should be referred to the Financial Section with a
recommendation that, in view of the urgency of the situation,
the proposals should, if possible, be accepted.
- (b)
- that the suggested appointment of a Technical Executive
Committee should be approved, the Committee to consist of the
members of the present Sub-Committee, to whom should be added a
representative of Marshal Foch in the event of the activities of
the Committee extending to countries other than those of South
Eastern Europe.
19. Organization.
It was agreed:
- (a)
- that the Secretaries of the four Delegations should meet
before each meeting to agree upon the Agenda and to prepare the
documents for distribution which should reach members of the
Council at least 24 hours before the meeting.
- (b)
- that no questions except those of utmost urgency should be
considered at the meetings unless they have been first placed
upon the Agenda.
M. Clémentel placed at the disposal of the Council the organization of
his office in order to facilitate the work.
Date of Next Meeting.
It was agreed:
- (a)
- that an emergency meeting should be held on Saturday 1st March
at 3 p.m. to consider primarily the instructions to be given to
the Delegates meeting the Germans at Spa on 4th March.
- (b)
- that the next full meeting of the Council should be held on
Monday 3rd March.
Appendix 1
Memorandum From the Italian
Delegation on the Italian Situation
The discussion which took place last Monday regarding the proposed
increase in the rations allowed to neutral countries has disclosed
the fact that the situation of Allied Countries and of Italy in
particular, is such as to demand priority in consideration and
action on the part of the Supreme Economic Council.
The following notes may give some idea of what the present situation
is so far as Italy is concerned.
Italian Cereal Programme. Attention is called
to the following statement of Italian Cereal imports as compared
with those of other Allies, as shown by the official statements of
the Wheat Executive.
[Page 9]
Percentage of Importation as
Against Requirements From the Beginning of the Cereal
Year
|
Italy |
France |
U. K. |
Mean% |
September |
89. 3 |
172. 9 |
119. 1 |
123. 4 |
October |
117. 0 |
143. 6 |
120. 0 |
124. 8 |
November |
111. 4 |
117. 1 |
118. 0 |
116. 0 |
December |
99. 3 |
109. 6 |
126. 7 |
115. 1 |
January |
87. 4 |
109. 5 |
123. 1 |
109. 5 |
February |
80. 2 |
96. 5 |
112. 3 |
98. 9 |
March |
75. 8 |
83. 9 |
106. 0 |
91. 3 |
Deficit on mean% |
–15. 5 |
–7. 4 |
+14. 7 |
91. 3 |
Deficit on total |
–24. 2 |
–16. 1 |
+6. 0 |
100. 0 |
The deficit of arrivals against requirements, if equally distributed,
ought to be 8.7 for each country. Italy’s actual deficit, however,
is seen to be 15.5%, as against a deficit of 7.4 for France, and a
surplus of 14.7 for England. This practically means that Italy’s
programme is 30.2% in arrear as compared with the British, and 8.1
as compared with the French.* The latest estimate of March arrivals in Italy
(ships nominated) puts them down at 146,000 tons. Therefore against
a total requirement for the cereal year (including recovered and new
territories) of 4,230,000 tons, the deficit by the end of March
would amount to 941,000 tons.
Future Outlook: By this time last year, Italy
was in an admittedly desperate position in respect of cereals. The
position this year is the following. Italy will have received by the
end of March 300,000 tons more this year than last. But the excess
is entirely absorbed by the additional requirements of the recovered
and new territories.†
While Italy had a poorer wheat crop last year, she had on the other
hand a better maize crop, this year’s crop being not only scanty but
almost totally unfit for human consumption. While, moreover, last
year, from March onward, Italy received really conspicuous arrivals
of cereals (March 228,000 tons, April 334,800 tons, May 383,000
tons, June 309,000 tons, July 244,000 tons, August 290,000 tons),
she has yet to face this year, the worst period of her arrivals. The
position to the 21st of February was that the chartering office of
the Wheat Executive had not been able to secure any charters for
Italian account, or indeed for anybody.
[Page 10]
Other Foodstuffs: The comparative situation of
Italy is shown by the following table:
Provisions
percentages showing the imports
into italy, great britain, france, from september 1918 to end of
march 1919 in relation with their requirements as ascertained by
the inter-allied food council
|
Italy |
U. K. |
France |
Frozen Meat |
60. 5 |
99. 2 |
80. 3 |
Preserved meat |
60 |
93 |
111. 3 |
Pigmeat |
74. 7 |
84.8 |
55. 5 |
Dairy Products |
45 |
85. 7 |
|
Fish |
39. 3 |
|
|
Fish and other goods, Class A* |
|
109.5 |
66 |
Sugar |
37.9 |
91.2 |
74 |
Coffee |
53.5 |
|
|
Coffee and other goods, Class B† |
|
125 |
45 |
Oils and Oilseeds |
26. 7 |
101. 8 |
63. 2 |
Total Percentages |
52. 1 |
96. 4 |
68. 7 |
*Class A.–refers also to dried fruits, tea, eggs, cocoa, etc.
†Class B.—refers also to jam, honey, wines, syrups, etc.
The above total percentages (52 against 68 and 96) show most
eloquently what the general situation is.
As regards individual items, some additional information may be of
use.
The Italian position in respect of frozen meat was depicted in the
following terms by the Committee of Representatives on January the
31st.:—
“I am directed by the Committee of Representatives to state
that the Committee has had under consideration the programme
of arrivals of frozen meat in the Allied Countries. While
arrivals in this country are in excess of the agreed
requirements, arrivals in Italy are greatly in arrear. For
the month of February only one cargo amounting to 2700 tons
has so far been arranged, against the requirements which
were agreed at 21,000 tons before the needs of the recovered
territories were taken into account.
“The Committee had hoped that the position might have been
ameliorated by the direction to Italy of some cargoes of
United States meat for which finance was available, but it
is now understood from the Ministry of Shipping that no
tonnage can be provided for this purpose at the present
time.
“The Italian Delegate informed the Committee that finance was
not available for the purchase of cargoes from other
sources, and under these circumstances the Committee decided
to lay the facts, with an expression of concern at the grave
position with which Italy will be faced unless at least
another 8,000 tons are provided for February
arrival.”
[Page 11]
Four Italian boats with cargoes of frozen meat might have been
available for Italy, but of this number three, unless they are
financed on arrival at Gibraltar (one is already there) will,
although on Italian bottoms, go to France or England, while the
other boat is idle in the Plate since the 5th of this month, vainly
waiting for her cargo to be financed. Meanwhile the other Allies
have already secured more than their full requirements, also for
April and May.
As regards hog products, a great quantity of which is already at New
York on lighters (the railing to the seaboard having already been
stopped) these cannot be shipped for lack of tonnage unless at the
expense of the arrivals of wheat. The only alternative left Italy is
thus to choose between allowing these accumulated stocks of hog
products to rot where they lie, with no chance at any rate of their
reaching Italy in time for consumption during the cold season, or
further to aggravate the already dangerous cereal position.
Orders already dispatched for the shipment of sugar have had to be
cancelled, thereby creating endless trouble with the shippers who
had been asked for January/February delivery.
Coal Situation: The Allies know what a
tremendous sacrifice Italy has been called on to make in contenting
herself with 600,000 tons of coal. The Allied Maritime Transport
Council had already strongly recommended that, if at all possible,
this quantity should be increased, even in war time.
Yet, whereas until the date of the Armistice3a the
strenuous efforts of the British Ministry of Shipping were
successful in securing the carrying out of the 600,000 tons
programme, almost in full, they have not been equally successful
since the Armistice, in spite of the fact that Italy’s needs have
been increased by the requirements of the liberated and new
territories. This is shown by the following official figures of
total shipments:
15 November–14 December |
503,776 tons |
15 December–14 January |
346,282 tons |
15 January–14 February |
663,735 tons |
15 February to 14 March (estimate) |
487,000 tons |
While shortage of supply was at first responsible for such short
shipments, lack of tonnage is alone responsible during the later
period. What the position will become from the 15th March onward, in
the event of a strike in the British mines—necessitating as it would
the employment of an increased amount of tonnage for importation
from more distant markets—can be more easily imagined than
described. The Italian Representatives most emphatically warn the
Allies that Italy could not withstand such a shock. It is simply
impossible for
[Page 12]
the country
to keep going in peace time under worse conditions than those
created by the war. It is, on the contrary, imperative that its coal
imports should be increased to 800,000 tons, which is itself about
200,000 less than Italy received before the war, when, moreover, she
had not to provide for the needs of Trent and Trieste. It is quite
time that Italy should return to a human standard.
Raw Material: Very few words need be spent on
the subject of raw material, because Italy is importing practically
none. Italy is the only country in Europe which is totally unable to
import nitrates, thereby endangering her future crops. The effects
of this will be felt next season.
The preceding facts and figures are amply sufficient to prove that
Italy cannot withstand any continuance of present conditions. Italy
is incomparably the worst off in respect of cereals, meat, coal and
raw material.
The Allies will certainly realise that the Italian government is
bound just now to be as liberal towards the Italian people as the
other Allied Governments are towards their own populations. While
evident political considerations point to the imperative necessity
of liberality and generosity, Italy to-day cannot offer to the
returning soldiers rations as strict as in war time, the meat ration
being inconsistent not only with the requirements of a liberal
policy, but with those of public health and common humanity. Coal,
which is now scarcer than under war conditions, threatens to be
totally unobtainable in a month’s time.
The combined effect of all the above must inevitably lead ultimately
to economic death, and from war to revolution. The Italian
representatives wish to be both clear and emphatic on this
point.
Appendix 24
Memorandum From the French Delegation
on the French Supply Situation
The French Government wishes to draw the attention of the Supreme
Economic Council to the present French Food position.
The Food Import programmes have been ascertained and agreed upon by
the Inter-Allied Food Council in London.
It seems that there is at present a sufficient world supply of
essential foodstuffs to carry out these programmes.
On the other hand, it should be noted that the actual quantities at
present on passage to French ports or for which ships have already
[Page 13]
been nominated are
extremely low, in fact lower than ever since the outbreak of the
war.
The reason is that, since the Armistice, the close co-operation
between the work of the various shipping administrations of the
several Associated Powers which had been established through the
agency of the Allied Maritime Transport Council has been allowed to
relax, through the release, now under progress, of a great number of
ships.
This means that nations such as France, whose mercantile tonnage is
inadequate to meet their needs, are no more able to receive from the
Allied or Associated Nations the additional tonnage they need to
fill their import programmes.
An agreement has been reached whereby Great Britain undertakes to
supply such additional tonnage to France; but the actual working of
that agreement has so far been delayed through technical
difficulties.*
The French Government furthermore wish to call the attention of the
Supreme Economic Council to the present high cost of foodstuffs in
France. This matter is one of great concern to the French
Government, who have devised a plan to meet the situation mainly
through purchases of commodities from foreign sources.
They regret to find that, outside of the shipping difficulties as
already described, financial difficulties often stand in their way
in carrying out the above-mentioned plan.
Therefore the French Government would ask the Supreme Economic
Council to recommend to the Associated Governments:—
- 1.
- That the Associated Governments as a whole (especially
Great Britain and the United States) should take the
necessary steps to ensure that the release of the several
mercantile fleets should be proceeded with in a co-ordinate
way, the ascertained essential needs being given due
priority.
- 2.
- That, in view of the great importance, from a social point
of view, of the present endeavours of the French Government
to fight the high cost of living, it is essential that the
plans devised by the French Government to that end should
not be checked through financial difficulties.
[Page 14]
Appendix 3
Note From the Food Section on the
Finance of Food Supply to Liberated Peoples
The approximate cost per month of the minimum programme from the
present outlook would appear to be:—
|
Dollars. |
Belgium |
25,000,000 |
Poland |
15,000,000 |
Czecho-Slovaka |
13,000,000 |
Roumania |
8,000,000 |
Serbia |
5,000,000 |
Montenegro |
600,000 |
Jugo-Slavia |
2,000,000 |
Turkey |
5,000,000 |
Russian Prisoners |
750,000 |
Sundry |
5,000,000 |
Total |
79,350,000 |
The American Relief Administration has been created by Presidential
order for the purpose of giving effect to the American portion of
the relief undertaken under co-ordination by the Supreme Council of
Supply and Relief. Through the direction of the American Relief
Administration, the foodstuffs put at the disposal of those various
liberated countries upon credits or charity from the United States
between February 1st and March 1st will be approximately as
follows:—
|
Dollars. |
Belgium |
26,000,000 |
Poland |
8,000,000 |
Turkey |
5,000,000 |
Roumania |
5,000,000 |
Czecho-Slovaka |
9,000,000 |
Serbia, Jugo-Slavia, and Montenegro |
6,000,000 |
Total |
58,000,000 |
Preparations have been made by the American Relief Administration for
the delivery of approximately $55,000,000 worth of food during the
month of March.
The financial solution of the balance of these programmes is urgently
needed.
[Page 15]
Appendix 4
Note From the Food Section on the
Finance of Food Supply to Austria, Hungary and Bulgaria
The problem of financing the balance of these programmes is earnestly
recommended to the Supreme Economic Council. It is urgently
necessary to complete some form of finance for these areas. The
situation in Austria is of the most critical order. The monthly food
requirements apparently amount to about $12,000,000. Up to the end
of February the Allied Governments, through the Italian Government,
will have made an emergency sale to the Austrian Government of
approximately $5,000,000 worth of food and the American Relief
Administration approximately $250,000 worth of food, all for payment
in kronen. This form of payment, however, is impossible of
continuance.
Hungary will apparently need supplies later in the year, and some
system of finance needs to be devised.
Bulgaria requires about $2,500,000 worth of foodstuffs per month, and
apparently has the resources with which to pay in cash if agreement
can be reached amongst the Associated Governments, her case being
practically akin to that of Germany. The American Relief
Administration is endeavoring to complete the sale of $2,000,000
worth of foodstuffs against Bulgarian balances in the United States,
but there is some doubt as to whether these balances really
exist.
Appendix 5 (a)
[Memorandum From
the Director General of Relief (Hoover), February 23, 1919, Regarding] Finance of
German Food Supplies
I attach hereto—
- (a)
- Memorandum by Sir John Beale (Appendix 5 (b)).
- (b)
- Report by British Food Investigation Mission to Germany
(Appendix 5 (c)).
- (c)
- Report by American Food Investigation Mission to Germany
(Appendix 6).
I wish to point out with all emphasis the urgency of this situation.
Foodstuffs to the amount of approximately $80,000,000 monthly must
be delivered into Germany, beginning with the 1st March, and
shipments must continue until one month after the blockade against
Germany is withdrawn. It appears that the solution of the German
financial problem could be reached either by (a) releasing the blockade,
[Page 16]
(b) allowing Germany to
part with her liquid assets to the value of $80,000,000 a month, or
(c) for the Associated Governments to
consent to finance Germany to this amount for food.
The provision of some 30,000 tons of fats by the United Kingdom for
gold and neutral currency is in progress, but, as will be seen by
the above-mentioned reports, this is but a very small portion of the
absolute necessities.
I understand the Swedish Government offers to supply the German
Government 50,000 tons of flour under their own arrangements, the
Swedish Government making conditions to re-import to Sweden a
similar quantity, which contract we should be able to effect. We
strongly recommend that this should be done.
Appendix 5 (b)
Memorandum From Sir John Beale
Regarding Relief Supplies for Germany
1. Sufficient facts have now been collected to enable a statement to
be prepared showing the position of the Allies in relation to the
relief of Germany.
The situation appears to be one of the utmost gravity, calling for
immediate consideration by the Supreme Economic Council and a
decision on general policy before the next meeting with the German
Delegates.
2. The Associated Governments have accepted a definite measure of
responsibility for the prevention of famine in Germany by the
utterances of their statement, and their participation in the
formation of the Allied Supreme Council of Supply and Relief, and
its work, as well as by becoming parties to the agreement of Treves
of the 17th January 1919.4a
3. Though the present rations in Germany are very much below the
Allied standard, there appears to be no doubt that the food supplies
in a large part of Germany will be exhausted before many weeks are
past; the date will vary in different localities, but in some,
shortness will become apparent as early as the end of March or the
beginning of April.
[Page 17]
This statement is founded, in the first instance, on information
supplied by German Delegates at Conferences at Treves and Spa in
connection with the renewal of the Armistice. It is a significant
fact that no report of any kind from any other source has been laid
before the Council of Supply and Relief which would tend in any way
to throw doubt on the accuracy of the statement of the general
position put forward by the German Delegates or to lessen the
gravity of the outlook. On the other hand, confirmation has been
freely forthcoming. I would refer to:—
- (a)
- Military reports from the occupied districts.
- (b)
- The attached report compiled from personal observations of
fourteen British officers who have recently returned from
Germany.5
- (c)
- Extract from a detailed report of two of these officers
who visited Hanover.5
- (d)
- A forcible statement by Dr. Frederick Ferriers, Chief of
the Executive of the International Red Cross, who is
convinced that the approach of famine is nearer than is
understood by the Entente agents who have gone into Germany,
and that the approach of starvation must result in
Bolshevism.
- (e)
- Reports from Dr. Alonzo Taylor, who has recently returned
from a Mission of Enquiry in Berlin for Mr. Hoover.6
4. It is difficult to establish the exact quantities of food
required, but it should be noted:—
- (a)
- That the agreement of the 17th January provided for a
first instalment of 200,000 tons of cereals (for part of
which condensed milk may be substituted) and 70,000 tons of
fats, and the Council of Supply and Relief regarded this
quantity at the time as a suitable basis for a monthly
ration.
- (b)
- The Germans themselves asked for approximately double this
quantity including certain other commodities.
- (c)
- Dr. Taylor suggests the following quantities as minimum
requirements:—
- 320,000 tons flour or corresponding wheat monthly
for six months.
- 100,000 tons mixed pork products monthly for six
months.
- 10,000 tons condensed milk monthly for four
months.
- 10,000 tons vegetable oils monthly for four
months.
After consideration of all the various reports received from the
interior of Germany, it seems certain that Dr. Taylor’s estimate is
not on the high side. On the other hand, it seems equally certain
that shipping, port and railway difficulties must prevent the
importation and distribution of so large a quantity. In my judgment,
the Supreme Economic Council ought to regard some such quantity as
200,000 tons
[Page 18]
of breadstuffs
and 100,000 tons of fats and other commodities as a minimum to be
worked to, and increased, if possible.
5. If, at their meeting on the 25th February, the Supreme Economic
Council are able to solve the shipping and financial difficulties
and give the Council of Supply and Relief instructions to proceed
with the supply at once on this suggested minimum basis, it is
certain that the food in such quantities cannot commence to arrive
in Germany in regular monthly supplies before the middle or end of
May at the earliest, though certain consignments can be arranged in
the meanwhile.
6. Negotiations following the agreement of the 17th January have
disclosed serious difficulties in relation both to finance and
tonnage.
Finance.—Negotiations at Trèves and Spa in
January and February have resulted in the Germans providing
£26,000,000 in a manner acceptable to the Financial Delegates. This
sum will pay for part of the first instalment of food, amounting to
30,000 tons of pork products, about 5,000 tons of condensed milk and
a small quantity of other commodities. The financial report of the
discussions at Treves makes it clear that, though immediate payment
may be forthcoming for the balance of the first instalment of
foodstuffs, it is practically certain that it will be some
considerable time before payment can be provided for later
instalments. The minimum monthly supplies up to the end of August
are estimated to cost some £150,000,000.
Tonnage.—The first part of the first
instalment of foodstuffs for Germany will be provided from surplus
stocks in the United Kingdom, and, since the Germans are not yet in
a position to transact ordinary commercial business, and the bulk of
the German tonnage is to be handed to the Allies, it is proposed to
arrange the transport from the United Kingdom to Rotterdam by the
Ministry of Food chartering such ships as are available—whether
British or neutral—or by using American ships manned by the American
Navy recently used for transporting coal from the United Kingdom to
France for the American Army. At the present time, the United
Kingdom holds large stocks of food, but in spite of this, it
requires a certain amount of arrivals to enable distribution to be
maintained from ports at which large stocks are not held. Both
France and Italy are anticipating difficulty in arranging sufficient
tonnage for the transport of supplies for liberated countries, who
are, by declaration of the Allies, and on all moral grounds,
entitled to priority over Germany, while there appears at present to
be little or no prospect that German ships will be available in
sufficient quantity to swell the volume of imports to a satisfactory
figure before the month of May, at the earliest. In all of the
Associated countries the process of release of shipping control is
being pushed forward rapidly. Unless this process is checked, and,
[Page 19]
indeed, control
reimposed to some extent, it would seem impossible to provide
sufficient tonnage.
7. Put shortly, the position is—
- (a)
- The Associated Governments are not only pledged to provide
relief for Germany, but must accept the fact that the need
in Germany is so urgent that, if relief is not provided,
anarchy must supervene.
- (b)
- That the Allies are morally bound not to relieve Germany
unless ample supplies are forthcoming for Allied and
liberated countries.
- (c)
- That the French and Italian Food Programmes threaten to
become so much in arrear as to cause anxiety, while there
will be difficulty in providing adequate supplies for
liberated countries.
8. The conclusions I arrive at on the general question are as
follows:—
- (1)
- The food situation in Germany is already serious, and
will, unless drastically helped from outside by immediate
action, be desperate in a few months, so that Germany will
probably be overtaken by economic and political disaster,
with consequences which may spread to Allied
countries.
- (2)
- It is impossible, under present conditions, which require
Germany to pay in actual cash for all food she receives, for
the Associated Governments to supply food in sufficient
quantities to meet Germany’s needs, and it is, therefore,
difficult to see how the Associated Governments can escape
some measure of responsibility unless the blockade is lifted
promptly so far as food is concerned, and Germany is left
free to make her own importation arrangements.
- (3)
- It seems essential that Peace (or Preliminary Terms of
Peace) should be settled immediately, since the Blockade
must be retained as a lever to secure acceptance of the
Terms.
Meanwhile, it is the duty of the Associated Governments (and, indeed,
a necessity in their own interests) to arrange a steady flow of
supplies to Germany to such extent as the prior claims will permit.
For this purpose, large credits must be provided, and so far as they
cannot be furnished by the Germans, should be made a first charge on
future payments by that country, and a substantial volume of
shipping must be made available by the Associated countries until
German shipping is forthcoming.
J. Field Beale
Paris
, February 21, 1919.
Appendix 5 (c)
Combined Report on Food Conditions in
Germany During the Period January 12 to February 12,
1919
1. Introductory. The following report has been
compiled from the personal observations of fourteen British officers
who visited parts of Germany during the above period to carry out
special investigations.
[Page 20]
The chief places visited were Berlin, Munich, Hamburg, Hanover,
Leipzig, Dresden, Magdeburg, and Cassel.
Of the officers who carried out these investigations, Captain E. W.
Tennent is working director of C. Tennent, Sons and Co., Ltd., Metal
and Chemical Merchants; Lieutenant H. A. Rose is a barrister
practising at the English Bar; Captain C. W. Bell is an employe of
an important Indian Trading firm; Captain W. Stewart Roddie is
employed by the Treasury.
2. Employment and Labour Conditions. Unrest
and disturbances are diminishing owing to the more stable political
conditions and the firm line adopted by Noske, the Minister of
National Defence, whose position has been very much strengthened
against the Spartacus movement by the large combined
Social-Democratic majority in the newly-elected National
Assembly.
At the same time, unemployment, accompanied by an inevitable rise in
the cost of living, is on the increase. In Berlin this increase is
estimated at 5,000 a day, the number of unemployed being over
200,000. In Hamburg the number is 72,000, in Munich 32,000, and in
Leipzig 22,000.
This great and constant increase in unemployment is due to the rapid
demobilisation of the army of war industries, coupled with the
inability of peace industry to get started, owing to the dearth of
raw materials and coal. Concomitant causes are:—
- (a.)
- Reluctance on the part of capital to embark on fresh
enterprises.
- (b.)
- High prices and wages prevailing.
- (c.)
- Lack of will to work on the part of the workers; partly
due to idleness and the high unemployment grants, partly to
the physical and mental inertia engendered by
malnutrition.
This increase in unemployment forms the most dangerous element in the
present situation, especially where the large industrial centres are
concerned. Unemployment and hunger are the chief predisposing causes
of Bolshevism, and if these are removed there is no chance of
Bolshevism gaining foothold in Germany.
3. Coal and Transport. All over Germany,
except actually in the coalfields areas, industry is stagnant and
shutting down altogether owing to the lack of coal. The Silesian and
Saar Valley coal supplies have been entirely cut off; coal is still
being raised in Westphalia, but over a million tons are waiting at
the pit-mouth for lack of transport facilities.
Railway transport has been crippled throughout the country owing to
the enormous quantity of rolling-stock lost since last November. To
the number handed over under the terms of the Armistice must be
added a great quantity abandoned and lost on all fronts, especially
in the East, since last November. This applies more especially to
[Page 21]
locomotives. At the same
time, the facilities for repairing locomotives have decreased
considerably owing to the lack of essential raw materials.
Throughout Germany the average percentage of locomotives undergoing
repair has increased from 17½ to 40 since August, 1914.
In the Hanover district the number of locomotives in peace time was
1800, of which 1,450 were in continual use; at the time of the
Armistice 1,300 were on charge, and on the 6th February, 1919, only
850 remained, of which 35 to 40 per cent, were worn out and
incapable of repair. Many of the best heavy locomotives have had to
be handed over to the Allies, consequently the passenger traffic has
had to be reduced to 29 per cent, of the normal.
The transport difficulties in the north-east of Germany have been
still further enhanced by the cessation of the coasting trade
between the Baltic and North Sea ports since the Armistice.
4. Food. The shortage of staple articles of
food throughout the country is such that the mass of the population
are living upon rations which, whilst maintaining life, are
insufficient to nourish the body adequately. Mothers and young
children are particularly affected. Malnutrition has increased the
mortality and diminished the birthrate; it has given rise to new
diseases (e. g., war œdema and “mangold wurzel disease”), besides
aggravating the previously known ones.
It is difficult to confirm the accuracy of the official statement as
to the dates on which the present food-stocks will be exhausted.
These dates vary for different districts in proportion to the local
transport and agricultural conditions; Saxony, for instance, is in a
particularly unfortunate position, being an industrial district cut
off from her normal agricultural resources.
In general, the following terminal dates given by the Central Food
Office in Berlin are probably generally correct:—
Breadstuffs |
Beginning of April, 1919. |
Potatoes |
End of May, 1919. |
Fats |
End of March, 1919. |
The meat ration can be continued indefinitely at the cost of the
slaughtering of all milch-cows and breeding-stock.
In Saxony, however, the official date for the cessation of potato
stocks in [is] the middle of February, in
Bavaria the end of February, and in Hamburg the end of March.
The above estimate of the continuance of the meat ration seems to be
optimistic, considering that in Hamburg and Hanover cows in calf,
milch-cows, and draught oxen are being already slaughtered, as well
as 8-day calves.
Given normal weather conditions during 1919, the coming harvest is
expected to yield only half the average pre-war crop.
[Page 22]
5. General conclusions. The general
impressions of all the visiting officers is that the need for
revictualling Germany is really urgent. The country is living on its
capital as regards food supplies, and either famine or Bolshevism,
probably both, will ensue before the next harvest, if help outside
is not forthcoming. The need of fats is especially urgent.
The present social and political condition of Germany is sufficiently
stable to guarantee the orderly distribution of food under the
existing rationing machinery.
On the other hand, while Germany is still an enemy country which has
not yet signed Peace Terms, it would be inadvisable to remove the
menace of starvation by a too sudden and abundant supply of
food-stocks. This menace is a powerful lever for negotiations at an
important moment. It is still impossible to gauge the period within
which Germany’s military power could revive, although there is no
immediate danger on this score. The allotment of foodstuffs should
be carefully controlled, but, provided they are handed over to the
authorised representatives, there seems no reason for anxiety as to
their ultimate equable distribution.
Military
Section,
British Delegation, February 16,
1919.
Report by Captains E. B. Trafford, Scots Guards,
and D. Christie Miller, Coldstream Guards, on their visit to
Hanover, from the 2nd February, 1919, to the 10th February,
1919, where they had been sent by the Armistice Commission, Spa,
for the purpose of enquiry into and reporting on the economic
situation as regards food:—
Before making our report, we should like to say that we were
prisoners of war in Germany for 40 months—the ten worst months
were spent in the Hanover Army Corps Command, notorious for its
ill-treatment of prisoners. We have been during our captivity
spat at by a German officer and made to perform menial tasks in
the presence of German non-commissioned officers and men. We
can, therefore, hardly be accused of having any friendly feeling
towards them.
6. Economic Life. Although this is a
military report, we feel it our duty to add a few words on the
economic situation as regards food.
We studied the question of food and its issue most closely. We
visited the largest factories and interviewed deputations of
workmen. We paid surprise visits to workmen’s tenements, to one
school, and many large shops, and examined their stocks. We had
interesting interviews with the Police President, the manager of
the Dresdner Bank, and other public men, about food, political,
and financial questions.
[Page 23]
There cannot be the slightest doubt that Hanover district and
town are extremely short of food. There is at present quiet, but
an undercurrent of Bolshevism may very easily come to the
surface. They estimate that they cannot hold out after the 1st
May, as they are three months short on their last harvest. No
milk, except for children under six and a few sick people. Milk
cows are slaughtered for food and tuberculous cattle eaten.
The manager of the Dresdner Bank estimates that throughout
Germany about 1,000,000 men were at this moment doing no work
and drawing about five to eight marks a day. He was partially
satisfied with the new Government, but not quite, as they were
not strong enough. With his 43 years’ business experience, he
had not the slightest hesitation in saying that, if the
extremist movement were to spread, not only Germany but the
whole of Europe would be engulfed.
7. Summary. We have not the slightest
hesitation in saying that—
- (a)
- The situation is at present quiet in Hanover.
- (b)
- The food shortage in Hanover is very serious
indeed.
- (c)
- Serious internal disorders are certain to break out if
food (especially fats) is not soon forthcoming.
- (d)
- That there is a great shortage of engines and
rolling-stock, particularly the former.
Appendix 6
[Report by the American Food
Investigation Mission to Germany]
Mr. Herbert Hoover, Director-General,
Supreme Council of Supply
and Relief.
Sir: We have the honour to present
herewith, on the basis of personal observation, examination of
official statistics and conference with German Government officials
and technical experts, the following summarised statement of
nutritional conditions in Germany, with recommendations covering the
period to the 1st September, 1919. The complete data will be filled
later, in extenso, in a formal general
report.
- 1.
- The agricultural statistics indicated in September, 1918, that
the supplies available to Germany from her domestic production
would represent about eleven months’ food supply at a ration
approximating the mean of the past two years, excluding the
critical summer months of 1917 and 1918. In September it was the
belief of the German authorities that the requirements for the
twelfth month with the continuation of hostilities could be
covered with comestibles drawn from the occupied areas.
- 2.
- With the collapse of the military forces and the signing of
the Armistice, not only were all seizures from occupied
territory prevented,
[Page 24]
but
at the same time considerable amounts of foodstuffs already in
hand were lost direfctly, and other amounts escaped the hands of
the authorities and entered into private trade. In addition it
was necessary at once to raise the ration beyond that previously
enforced. The Germans suggest that the total of the foodstuffs
therein involved might represent a three months’ supply on a
minimal basis.
- 3.
- The control of illicit trading has been greatly reduced under
the new Government and the morale of distribution seriously
undermined. Because of this, a further loss in the supply of
controlled food has resulted.
- 4.
- The sum of these considerations leads to the conclusion, which
is supported by estimates which have been derived from
authorities in charge of food affairs in cities exceeding 30,000
inhabitants, that the machinery of distribution will, after the
1st May, be unable to supply large sections of the German
industrial population with foodstuffs, and large classes of
non-producers will be reduced to competitive illicit traffic in
foodstuffs. This estimate of date may be too early or too late,
depending upon industrial, economic, and political
considerations, the exact development of which, in time and
extent, one does not presume to estimate in a casual
opinion.
- 5.
- The German Food Administration and the scientific experts to
whom the Administration has entrusted the technical evaluation
of their food resources have suggested the following programme
as covering their requirements up to the new harvest in a manner
that will be satisfactory, under the circumstances, and provide
a better ration than is at present available:—
Monthly Programme for Six
Months
Wheat flour, 320,000 tons, or wheat in part, as determined by
the seller (80 parts of flour corresponding to 100 parts of
wheat). The Germans would accept a small amount of rye, if
of high extraction; they do not wish barley flour; they
would accept rice or rolled oats in small part, but only if
at equal prices.
One hundred thousand tons mixed pork products, including lard
substitutes.
Ten thousand tons vegetable oil per month for four months,
for margarine.
Ten thousand tons condensed milk per month for four months,
if available; otherwise the lacking amounts to be delivered
in terms of vegetable oil.
It is our judgment that these imports, plus domestic stocks, would
not represent a per capita ration of over 2,400 calories per day.
The intake of the industrial classes would be materially lower than
this figure.
[Page 25]
The Germans also desire 200,000 tons of maize per month for five
months, or a corresponding amount of oil cake. This is to be
regarded as a programme of secondary order, since German financiers
and leaders of industry recognise that this item stands upon a
different footing from the others. The maize and oil cake would not
be fed to any considerable extent to dairy cattle, but would go to
meat production (which pays the producer better than dairy
production), and would yield no meat in material amounts until late
in the summer.
The Germans own somewhere between forty and fifty thousand tons of
fish products in Scandinavia. It is recommended that they be
permitted to import this at once. We further recommend that fishing
in the North and Baltic Seas be thrown open to the German fishing
fleet, under such conditions of regulation and control as the
Supreme War Council and Supreme Economic Council may dictate.
We wish to record the judgment that the admission of these foodstuffs
into Germany will operate in the direction of maintenance of public
order and social tranquillity. At the same time, we wish to point
out that (a) hunger is only one of three
elements operating in the direction of Bolshevism, the other two
being (b) lack of employment, and (c) dissatisfaction with the results of the
revolution and the character of the present Government—since large
elements of the working classes are convinced that under the elected
Government, as at present constituted, the principles of social
democracy, with respect to socialisation of what they denominate
public industries (such as coal mining), are not to be carried out.
In addition, they believe that the policies of the National Assembly
do not sufficiently tend to promote measures destined to transfer
the load of payment of war cost and war indemnity from the working
classes to the capitalistic classes, who are commonly regarded by
the working classes as equally guilty with the military classes in
the causation of the war.
- Vernon Kellogg
- Alonzo Engelbert
Taylor
Appendix 7
Note From the Food Section Regarding
Finance of Food Supplies for the Left Bank of the Rhine
This problem has been urgently called to the attention of the
Permanent Committee7 by Marshal
Foch, and numerous discussions have taken place. As yet, no real
solution has been reached. Marshal Foch considers it extremely
important from a military point of view
[Page 26]
that this provisioning should be separated from
the provisioning of the right bank of the Rhine, and there seems to
be general agreement that it should be carried out under the
auspices of an Inter-Allied Military Committee, to be set up under
the High Command and reporting to the Permanent Committee.
There are two or three alternative methods of finance:—
- (a)
- That a certain portion of the foodstuffs furnished to
Germany under some general plan of German finance for the
whole of Germany should be assigned to the east bank of the
Rhine.
- (b)
- That as the provisioning of the civil population under
occupation is of prime military importance to the occupying
armies, it should be undertaken by the armies themselves
from their own funds.
- (c)
- That freedom to trade in foodstuffs between the east bank
of the Rhine and adjoining countries, neutral and Allied,
should be freely permitted. The latter solution would
probably be only partial, but it might be contributory of
considerable value, as neutral and Allied merchants would no
doubt work out a great deal of credit and payment machinery
of their own.
Appendix 8
British
Delegation,
Paris, February 4,
1919.
[Letter From the President of the
Allied Maritime Transport Council (Salter) to the Secretary of the Supreme
War Council]
Sir: I have the honour to inform you that
the Allied Maritime Transport Council, which met in formal Session
on Saturday, the 1st of February, and Tuesday, the 4th, unanimously
passed the following resolutions, and decided to submit them to the
Supreme War Council for approval by the Associated Governments:—
- “1. In arranging for the allocation for management and
employment of enemy tonnage, the Allied Maritime
Transport Council have done so on the understanding that
the ultimate disposition of the vessels by the Terms of
Peace shall be in no way prejudiced, and that in order
to mark the fact that the vessels are being administered
in the meantime in trust for the Associated Governments
as a whole, they will fly at the poop (or, in the case
of vessels manned by naval officers and crews, at the
fore) the flag of the Allied Maritime Transport Council,
as well as the national flag of the country undertaking
management. The Council recommend that each of the
Associated Governments should make a definite
declaration in the above sense, including a statement
that in discussing the question of the ultimate
disposition of the vessels they will found no argument
on the allocation for the management or service of the
vessels in the meantime.
- “2. The Allied Maritime Transport Council desire to
point out to the Supreme War Council that no Allied
Council is at present vested
[Page 27]
with sufficient authority to deal
with all enemy shipping questions or with the provision
of tonnage, whether Allied or enemy, for relief
purposes. The agreement concluded with the German
Government on the 17th January, 1919, included a
provision to the effect that the Associated Governments
would arrange for the administration of the German
vessels handed over, either through the Allied Maritime
Transport Council or through some other body which they
might create or designate for the purpose. No such
appointment has yet been made. The Council are prepared
to accept the responsibility if the Supreme War Council
desire them to undertake it, but they would desire in
that case that a definite and explicit decision of the
Supreme War Council should invest them with the
necessary authority. Apart from the German ships, no
central Allied body is entrusted with the settlement of
the numerous questions arising in regard to the
acquisition, allocation, and use of Austrian vessels.
The allocation has, in fact, been made in many cases
through naval commissions in the Adriatic, in Spain and
elsewhere, but in cases where agreement through those
local commissions has not been arrived at there has been
no central body to settle the points in dispute. The
Allied Maritime Transport Council have, in fact, been
arranging the employment of such vessels as have been
brought into service, but again they have had no
specific authority from the several Governments. The
Council suggest that the Supreme War Council might find
it convenient to appoint the Allied Maritime Transport
Council as a central authority for dealing with enemy
shipping questions generally including authority to
direct the allocation or re-allocation for management or
use.”
The Allied Maritime Transport Council venture to urge the extreme
importance of an early decision being given. In the case of the
first resolution, approval will doubtless be regarded as of a formal
character, in view of the fact that the representatives of the
Allied Governments agreed unanimously to its terms and that it deals
with a matter within the scope of the Council.
The second resolution refers to the scope of the authority of the
Council; the Supreme War Council will doubtless consider whether it
is desirable to assign the proposed authority to the Allied Maritime
Transport Council, or to some other body. The Council, however,
desire in this instance also to emphasise the extreme importance of
an immediate allocation of the authority proposed either to
themselves or to some other body.
I am [etc.]
Appendix 9
Extracts From Minutes of Proceedings
of the Allied Maritime Transport Council
As regards Resolutions 1 and 2, it is understood that the words
“enemy tonnage” should mean “enemy tonnage acquired or to be
[Page 28]
acquired after the signing
of the Armistice of the 11th November, 1918.”
It is further understood that the responsibility which the Allied
Maritime Transport Council has taken upon itself in Resolution 2 is
the allocation and re-allocation of enemy tonnage, for management by
one or the other of the Associated Governments and for their use; as
well as the responsibility of the financial arrangements regarding
the handing over and the use of the ships.
It is also understood in connection with Resolution 2 that, in
accepting final responsibility, the members of the Maritime
Transport Sections of the various countries do not hold themselves
responsible as to whether it is absolutely essential to make use of
the power of requisitioning in order to procure national tonnage to
be used in case of relief.
It is understood that the authority granted to the Allied Maritime
Transport Council does not apply to the granting or temporary
re-granting of ships, and does not in any way affect the final
disposition of the ships after Peace.
Resolutions 1 and 2 were submitted to the Supreme War Council for
approval on the 21st February, 1919.
Appendix 10
Note From the Food Section [Dated February 23, 1919,] Regarding the Provision of Shipping for Transportation of
Food
The Permanent Committee strongly recommends that the shipping members
of the Supreme Economic Council shall take at once into
consideration the systematic provision of shipping for the purposes
of food transportation. It must be obvious that the German cargo
tonnage will not be available for some time, either for German
transportation or to relieve the pressure to liberated countries,
and that in the meantime Allied shipping must be provided. At the
present moment the American Shipping Board is providing the entire
shipping for fully one-half of the needs of the liberated countries,
and they advise that they cannot longer continue to take such a
portion of the burden, in view of their other obligations.
Appendix 11
Report of Sub-Committee on
Re-establishment of Communications in Eastern Europe
1. The Sub-Committee confirm General Mance’s Memorandum of the 25th
January as correctly representing the situation, and emphasise
[Page 29]
the necessity for prompt
action to prevent the situation from getting worse.
2. They recommend the appointment of a Technical Executive Committee
of the Allied and Associated Powers capable of rendering assistance,
with the following terms of reference:—
- (a)
- To organise and co-ordinate the necessary urgent
assistance for the maintenance, improvement, and operation
of the existing port, railway, and telegraphic facilities,
with a view to the earliest possible return to normal
conditions:—
- (1)
- In pre-war Austria-Hungary and Eastern
Germany.
- (2)
- In European countries further to the east,
including prewar Russia.
- (3)
- In any other country indicated by the Supreme
Economic Council.
- (b)
- To apportion the necessary action between the Allies with
a view to the most effective solution.
- (c)
- To organise immediate despatch of the necessary Technical
Missions.
- (d)
- To arrange for the earliest supply of essential materials
within the financial limits laid down.
- (e)
- To arrange adequate control of expenditure allotted
through the Technical Executive Committee.
- (f)
- To report to the Supreme Economic Council.
3. In order to meet the barest necessities of the above countries
during the period of transition, the Sub-Committee recommend that a
sum of twenty millions sterling should be allotted to the proposed
Technical Executive Committee; this being only a small percentage of
the requirements put forward by the countries themselves. This
amount can only be regarded as a tentative estimate of the direct
assistance which may be necessary until such time as essential
requirements can be met through the ordinary trade channels.
The expenditure would, in any case, be spread over several months,
but the nature and extent of the immediate assistance would depend
on the total sum likely to be available.
4. It is essential, both in the interests of efficiency and ultimate
economy, that the financial procedure should be such that supply is
not delayed by the need for prior financial adjustment between the
Allied and Associated Powers before expenditure is incurred. It is
therefore suggested that, if possible, funds should be advanced in
each case by the Power arranging for the country of origin of any
article, any Inter-Allied adjustments being made subsequently as a
matter of accounting.
The Sub-Committee assumes that a financial, as well as a technical
representative, would be appointed to the proposed Executive
Committee by each Power represented thereon.
[Page 30]
5. The Sub-Committee indicate the following lines on which the
proposed Executive Committee might act:—
- (a)
- In the case of each country assisted by the Committee,
allot responsibility to one of the Powers represented on the
Executive Committee for sending immediately a Technical
Mission, and for effecting the necessary supply of essential
material.
- (b)
- Define the duties of the Technical Missions, whose
principal functions will be to examine the conditions of the
ports, railways, telegraph, and telephone systems of each
country; to report what essential materials are required,
and in what other ways effective assistance should be
rendered; to act as technical advisers to the local
administration wherever necessary, and, where necessary, to
exercise temporary control of operations to assure the
maximum use of the resources available and to regulate
through traffic. Copies of the reports of the Technical
Missions to be submitted to the Executive Committee, and
instructions to the Missions issued through the Power
providing the Mission.
- (c)
- In order to give these Missions an Inter-Allied
complexion, lay down that the other Powers on the Committee
may and, at the request of the Committee, shall appoint
liaison officers, who will not, however, be responsible
members of the Mission.
- (d)
- Lay down general principles regarding the nature of the
supplies which may be undertaken by the Committee.
- (e)
- Give to the responsible Power concerned provisional
authority for the expenditure of a specific amount for each
country assisted to cover the preliminary supply of most
urgent materials.
- (f)
- Arrange for up-to-date statistics and reports on
expenditure, and for adequate control of expenditure without
delaying the same.
- (g)
- Encourage, in every way possible, the supply of the
necessary requirements through any available trade
channel.
G. Gassotuin
General, representing Minister of Public Works and
Transport
Lazzerini
Captain,
representing Signor Crespi
Wm. G. Atwood
,
Lieutenant-Colonel, Engineers, U. S. A.
H. O. Mance
Brig.-General, British Representative, Chairman of
Sub-Committee
February 22,
1919.