872.51/135: Telegram
The Special Representative of the Treasury in Europe ( Davis ) to the Acting Secretary of State 36
[Received December 17—4:28 a.m.]
For Secretary of Treasury. Hoover reports that to meet urgent requirements for relief to Servia, including that portion Jugo [Page 671] Slavia under the Servian Government, would require 30 to 40 thousand tons of food per month until next harvest, but that internal transportation will probably not permit the execution of this whole program. In the meantime, however, in order to meet emergency and to start operations, he recommends that Treasury, upon request of Servian Government, establish a credit for $15,000,000 to be paid through the Servian Minister directly to the Grain Corporation. Hoover’s idea is that $10,000,000 of this would be required for working capital, and $5,000,000 as the value of the first month’s food delivered, which food is already arriving at Adriatic ports at the risk of Grain Corporation or Food Administration.
In addition to above, he recommends the establishment of credit for $5,000,000 monthly for 4 months, making a total altogether of $35,000,000. At present it is impossible to be more precise. This entire amount may not be required but will only be used under the direction of Hoover who will direct and supervise distribution. He recommends that the Treasury Department have a representative over here probably in Servia to collaborate with his representatives. Agreement has not yet been reached with Allied Governments as to the general plan for food relief in Europe, but this situation seems extremely pressing and of great importance in order to save life and maintain stability in military situation. Whatever is done will be upon the understanding that any arrangement which may be later arrived at with the Allied Governments will be retroactive, so far as any expenses or advances made by us are concerned, and upon the arrangements which may be made will depend, more or less, the use of the subsequent credits above referred to. I have submitted this cable to the President who strongly approves and who has handed me the following communication addressed to you:
“Paris, 16th December, 1918.
The Honorable the Secretary of the Treasury.
Dear Mr. Secretary: Mr. Hoover informs me that situation in Servia and Jugo-Slavia is such that food supplies should be sent in there immediately in order to save life and maintain stability in the military situation and Mr. Davis has shown me his proposed cable to you explaining the situation and suggesting the establishment of a credit of $35,000,000 in favor of the Servian Government proportionally used for relief of Servians and Jugo-Slavs under Servian Government, provided the Servian Government makes application for such credit and agrees to turn over the funds to the Food Administration or the Grain Corporation for the purchase, delivery and distribution of the supplies in question. If you therefore desire to establish this credit and to make advances thereunder as above indicated, you may consider this as my full approval. Cordially yours, Woodrow Wilson.”
- This telegram was originally sent as telegram No. 257 from Colonel House. Telegram No. 16, Dec. 17, 1918, from the Commission to Negotiate Peace, stated that it should have been signed “Norman Davis” (Paris Peace Conf. 102.1/1).↩