600.119/2208: Telegram
The Ambassador in France ( Sharp ) to the Acting Secretary of State
[Received 6 p.m.]
6292. War Trade Board [from Stetson35]: Number 680. The occupation of German territory as far as the west bank of the Rhine and the bridgeheads raises questions of economic policy of the greatest [Page 760] importance, which will last during the period of occupation. To deal with these questions the French Ministry of Blockade, acting on the request of Marshal Foch under whose control these territories are, have prepared a plan of which the general outline is, we are informed, as follows:
- First, there shall be constituted to deal with these questions: (a) an Inter-Allied committee which shall sit at Paris under the chairmanship of one of the French Under Secretaries of State attached to the Conseil d’état, said committee to deal with general questions of policy; (b) an Inter-Allied committee which shall sit at place to be designated in the occupied territory, for example Treves, which committee, shall: (1) handle the administration questions arising out of the policies to be laid down by the Paris committee such as the granting of licenses etc.; and (2) supply the Paris committee with data upon which it may base its determinations of policy.
- Second, the questions of policy to be dealt with by the Paris committee shall be in general the determination of: (a) how far the nationals of the Associated Governments shall be permitted to export to and import from the nationals of the enemy in the occupied territory raw materials, semi-manufactured and manufactured articles, et cetera; and (b) how far the enemy nationals in the occupied territory shall be permitted to have commercial and other relations with the territories on the east bank of the Rhine.
- Third, it is not at present the intention of the French to ration or fix contingents for the occupied territories, but to treat these territories as they have treated Spain. This will mean that all raw materials, semi-manufactured and manufactured articles will be permitted to go to the occupied territory provided: (a) same can be spared by the Associated Governments; (b) transport conditions allow; and (c) industries in occupied territory which desire to import are not competitors of similar in the Associated Governments. In connection with paragraph (c) a large German steel factory will not be permitted to receive raw material and machinery if their output competes with similar factories in the Associated Governments.
- Fourth. The same policy will be followed with respect to permitting imports into the Associated countries from enemy nationals in the occupied territory.
- Fifth. One of the French delegates on the Paris committee will be Seydoux of the French Ministry of Blockade.
- Sixth. It is the opinion of the French that the Treves committee should by preference be comprised of military delegates. In this connection the French Ministry of Blockade will be pleased to place at the disposal of any delegates which the Associated Governments may appoint to the Treves committee all information and facilities in their possession on the questions and principles which may arise and will give such delegates an opportunity to spend several days in the Ministry to study same.
- Seventh. The French would be pleased if the United States Government would designate the proper delegates for both the Paris and Treves committees as soon as possible. In this connection we draw your attention to the variety of questions involved: political, financial, transport, and import and export control.
Descriptive comments: (a) The foregoing was informally transmitted to us with the request that it be advised to the proper authorities in Washington, (b) The final draft of the plan which is not yet ready will be cabled you in the [a] few days, (c) We have communicated the foregoing to the Embassy, Generals Pershing and Bliss, Hoover and Davis of the Treasury. We suggest your approving the plan in principle and taking the necessary steps to designate a delegate to represent the War Trade Board. Stetson and Taylor will confer with Seydoux on this subject within a few days and report further. Signed Stetson.
- Clarence C. Stetson, an agent of the War Trade Board at Paris.↩