Paris Peace Conf. 180.03501/108.
HD–108
Notes of a Meeting of the Heads of Delegations of the Five Great
Powers Held in M. Pichon’s Room, Quai d’Orsay, Paris, on Saturday,
December 6, 1919, at 10:30 a.m.
Paris, December 6, 1919, 10:30 a.m.
- Present
- America, United States of
- Secretary
- British Empire
- Secretary
- France
- Secretaries
- M. Dutasta
- M. Berthelot
- M. Arnavon
- M. de Saint Quentin
- Italy
- Secretary
- Japan
- Secretary
| Joint Secretariat |
| America, United States of |
Capt. B. Winthrop |
| British Empire |
Capt. Hinchley-Cooke |
| France |
M. Massigli |
| Italy |
M. Zanchi |
| Interpreter—M. Mantoux |
The following were also present for items in which they were concerned:
- America, United States of
- Rear-Admiral McCully, U.S.N.
- Mr. Ellis L. Dresel
- Colonel J. A. Logan
- Lieut-Commander Koehler, U.S.N.
- British Empire
- General Sackville-West
- Captain Fuller, R.N.
- Lieut-Commander Dunne
- Mr. A. Leeper
- Mr. Ibbetson-James
- France
- M. Loucheur
- M. Cambon
- M. Laroche
- M. Mauclere
- M. Seydoux
- M. Kammerer
- M. Sonnolet
- M. Cheysson
- Italy
- Rear-Admiral Grassi
- M. Dell’Abbadessa
- Commandant Fea
- Commandant Ingianni
[Page 505]
1. (The Council had before it 5 resolutions passed at meetings of the
Supreme Economic Council in Rome, (See Appendix “A”.).) Resolutions Passed at the Session of the Supreme
Economic Council in Rome: (a) Austria, (b) Danger of
Nonratification, (c) Armenia, (d) Russia, (e) Oil Tankers
M. Loucheur read and commented upon the
resolutions. He added with regard to the question of provisioning of
Austria the Committee on Organization of the Reparation Commission had
examined at a meeting held on the preceding day the question of
provisioning Austria and they were waiting for a reply from the Italian
Government with reference to the sending of 12,000 tons of cereals to
Vienna from Trieste following an agreement made between Italy and
Austria. He had also seen Mr. Austen Chamberlain in London; the British
and French Governments were willing to do their utmost to help until the
credit opened for the provisioning of Austria had been exhausted. With
regard to the situation of the Armenian refugees in the Caucasus, the
Supreme Economic Council wished to bring the attention of the Supreme
Council to the great importance of providing for the provisioning of
those refugees and he understood that the Armenians had applied to the
American Delegation direct. He wished to ask Mr. Polk what could be done
in the matter.
Colonel Logan stated that a telegram from Mr.
Hoover had been received to the effect that an arrangement had been
entered into with the Grain Corporation to supply 35,000 tons of cereals
on credit to Armenia, to be distributed under Colonel Haskell’s
supervision. Furthermore, the American Red Cross had given 1,700,000
dollars for relief purposes.
M. Loucheur said that with regard to the
Russian question, he was of the opinion that it would be advisable to
await a solution of the Russian problem before taking any action in the
matter.
Mr. Polk said that he had just received a
proposal from the American Government on the question of the tank ships
which Mr. Dresel would submit to the French and British Delegations. He
wished to put on record that the United States were not now represented
on the Supreme Economic Council.
(The Council took note of the resolutions passed by the Supreme Economic
Council at Rome and of M. Loucheur’s declarations on the subject.)
2. (The Council had before it a letter from the President of the
Committee on Organization of the Reparation Commission to the President
of the Peace Conference, dated November 27th, 1919, to which were
attached a memorandum by the American Delegation,
[Page 506]
two notes from the French Delegation,1 and a list of products prohibited from
importation into Germany, for which the French Government asked that
free entry into Germany be allowed. (See Appendix “B”).) Note From the Committee on Organization of the
Reparation Commission Regarding (a) Customs Paid on Franco-German
and Germano-Belgian Frontiers: (b) Payment of German Customs Duties
on a Gold Basis
Colonel Logan read and commented upon the
memorandum presented by the American Delegation to the Committee on
Organization of the Reparation Commission, dated November 27th [8th], 1919.
M. Loucheur said that the German Delegation had
proposed that the German Government be allowed to establish the customs
duties in gold marks, more exactly in paper marks, taking the rate of
exchange into account. He was of the opinion that at the present time no
reply should be made to Germany before the exchange of deposit of
ratifications and the signing of the Protocol.2 On the other hand, a very
important question came up in which France and Great Britain were
especially interested: Germany had edicted a series of import
prohibitions; it could not be contested that that was her right, but she
should not be allowed to evade the provisions of the Treaty in order to
treat the Allies in different ways. He therefore suggested that a
solution be adjourned until Germany had signed the Protocol and the
deposit of ratifications had taken place. In the second place, the right
of prohibiting imports should be connected with the whole question of
the payment of customs duties.
Mr. Polk said that, with reference to the
memorandum of the American representative on the Reparation Commission,
the difficulty was that for some time past Germany had been applying two
principles in the payment of German customs duties: in ports she had
applied a gold basis, but on her land frontiers payment was being made
in paper. That was a discrimination in favor of the countries which were
importing by land as against those importing by sea.
Colonel Logan said that France and Belgium were
paying one-ninth of the import duties that Great Britain and America
paid on a gold basis.
M. Loucheur remarked that such a fact had never
been brought to his attention nor, as far as he was aware, to the notice
of the Committee on Organization of the Reparation Commission.
Mr. Polk said that Sir John Bradbury and Mr.
Rathbone had both raised the question.
M. Loucheur said everybody agreed that there
should be no different treatment between the Allies and that payment of
customs duties should
[Page 507]
be made
in gold. He insisted on what he had said before, that no answer should
be made to Germany at the present time and that the question of import
prohibitions should be settled at the same time.
Mr. Polk suggested that the questions be
referred back to the Committee on Organization of the Reparation
Commission for consideration. The questions were covered by Article 269
of the Treaty of Peace with Germany.
M. Loucheur said he did not agree: the
provisions of the Treaty were that customs duties should not be changed
during a certain lapse of time, but payment on a gold basis would entail
an increase of customs duties.
M. Scialoja thought that it would be advisable
to consult the Economic Commission, as the questions were not entirely
within the province of the Committee on Organization of the Reparation
Commission.
M. Loucheur remarked that there no longer was
an Economic Commission and that on the other hand the Committee on
Organization of the Reparation Commission had consulted the economic
experts.
M. Matsui agreed with M. Scialoja, and said
that he had some time ago, when the Treaty with Germany was being
prepared, proposed a clause which would have prevented Germany from
prohibiting any importations. Such a clause had not been accepted, but
nevertheless he was of the opinion that the economic experts should be
heard.
M. Loucheur said that up to that time they had
never referred to Commissions which were charged with the preparation of
the Treaty, questions of execution of the Treaty; he proposed that
representatives of the Allied and Associated Powers on the Committee on
Organization of the Reparation Commission should study the questions in
accord with economic experts, and Japan would have an opportunity to be
heard.
Mr. Polk wished to propose the following
resolution: that the questions be referred back to the Committee on
Organization of the Reparation Commission with instructions to take the
necessary action without delay and further to decide itself such
questions in the future.
M. Loucheur thought that the question was
important and should be referred back to the Supreme Council by the
Committee on Organization of the Reparation Commission.
Mr. Polk asked why this question should come
back to the Supreme Council.
M. Clemenceau replied that it was a question
involving other matters of political importance and that although he
agreed in principle with Mr. Polk’s proposition, he was of the opinion
that the questions should still be referred back to the Supreme Council
without delay, and that at any rate no action should be taken before the
Germans had signed the protocol and the deposit of ratifications had
taken place.
[Page 508]
It was decided:
- (1)
- to refer back to the Committee on Organization of the
Reparation Commission in accord with economic experts both the
question of payment of German customs duties on a gold mark
basis, and the import prohibition by Germany;
- (2)
- that the Committee on Organization of the Reparation
Commission submit immediately a report to the Council;
- (3)
- that no reply be given to Germany until she had signed the
protocol and the Treaty of Peace had come into force.
3. M. Berthelot said they had received a letter
from Bucharest dated November 30th which related to an incident which
had taken place in the past, but which was of a certain importance.
Before withdrawing, the Government of M. Misu and General Vaitoianu had
tried to put a negative answer before the Powers; but the Allied
representatives had evaded such a manoeuvre on the part of the Liberal
party. Roumanian Answer
Telegrams sent from Bucharest between December 2nd and 4th gave the
following information: M. Vaida-Voevod, before seeing the King of
Roumania, had had a conference with the Allied representatives, the
result of which was that as regards requisitions in Hungary Vaida-Voevod
would be ready to accept the appointment of an Inter-Allied mixed
Commission as proposed but maintained that it would be impossible that
such a Commission should have the power to inflict penalties; on the
other hand, the Roumanian army would withdraw to the boundaries fixed by
the Peace Conference. He would take note of the assurances given by the
Supreme Council, and expressed his conviction that the Council would be
able to find a solution satisfactory to Roumania. It had been feared for
some time that the King would call to power M. Maniu, but in the morning
of December 3rd M. Maniu had refused, and M. Vaida-Voevod had been asked
to form a cabinet. Thereupon M. Vaida-Voevod had consulted all the
political leaders with the exception of the Liberals, and had concluded
from his consultation that they would be in favour of the signature by
Roumania; he had authorised the Allied representatives at Bucarest to
telegraph to Paris that the majority of the parties was in favor of
Roumanians signature and promised to sign if the King accepted the
Cabinet.
M. Antonescu, furthermore, was about to arrive in Bucharest; under those
conditions one could well hope that a satisfactory telegram would be
received from Roumania within the time limit laid down by the
Council.
(The meeting then adjourned).
(The Heads of Delegations then held a conference in
camera.)
Hotel de Crillon, Paris, December 6, 1919.
[Page 509]
Appendix A to HD–108
Resolutions of the Supreme Economic
Council
The Supreme Economic Council having taken knowledge of the decision
(H. D. 94/1) [94, minute 2]3 of the Supreme
Council, and particularly of Pars. 2 and 5, esteems that,
considering the general coal and production situation throughout the
entire world, it is necessary that the German tankers be utilized;
it requests that immediate measures be adopted covering the
utilization of these vessels for the transportation of mineral oils
which may be used to supply the needs of countries suffering from
coal shortage.
The Supreme Economic Council having taken note of the affirmations of
Lord Curzon relative to the critical situation actually existing in
Armenia, [is] desirous to show its sympathy for the Armenians and to
express its regret that it has no available resources to offer
assistance to Armenia.
The Supreme Economic Council esteems that the assistance necessitated
by the Armenians in distress, as well as the assistance necessitated
by Austria, concerns not only the Powers represented on the Supreme
Economic Council, but all the civilized peoples of the world.
The Supreme Economic Council deems it opportune to indicate to the
Presidency of the Conference in Paris the increasing danger to which
the economic life of all the Allied countries is exposed by the
delay in the exchange of the Peace Treaty ratifications.
The Supreme Economic Council has taken note of the decision of the
Supreme Council of November 15th,4 charging
the C. O. C. R. with the duty of studying the problems concerning
the provisioning of Austria.
The Supreme Economic Council which was previously able partly to
relieve Austria’s distress thanks to credits granted by England,
France, Italy and with the Assistance of America, finds itself at
the present moment without the power and necessary resources to
render efficacious assistance, and it can only in the most pressing
manner draw the attention of the Supreme Council to the extreme
urgency of finding a solution capable of remedying a tragic
situation which cannot continue without imperilling the security and
the honor of the civilized nations of the entire world, who will
have to bear the responsibility for it.
The Supreme Economic Council has also taken note of the declarations
of the English, French and Italian treasuries, attesting the
impossibility
[Page 510]
of
increasing the financial charges of countries whose resources have
suffered so seriously from the war.
The Council finds that in any case the financial resources required
should be furnished not only by the Governments participating in the
Supreme Economic Council, but by all the other nations and it
recommends the examination of the possibility of an international
action of this kind.
The Supreme Economic Council, wishing at the earliest possible moment
to place the surplus stocks of food of South Russia (as compared to
the local needs of this region) at the disposal of general
revictualling, draws the attention of the Council of Five to the
necessity of considering, in anticipation of the time when Moscow
and Petrograd become accessible to supplying of food to the
population of these cities.
Appendix B to HD–108
peace
conference
organization committee
of
the
reparations commission
Secretariat
C. R. No. 442
November 27,
1919.
From: President of the Organization Committee of the
Reparations Commission.
To: President of the Peace Conference.
I have the honor to forward you herewith copy of a note delivered to
the Organization Committee of the Reparations Commission by the
American Delegate.
This note raises the two following questions:
1st) The necessity for the immediate creation, by the German
Government, of a customs control along the Franco-German and
Belgo-German frontiers.
The Organization Committee recognizes that it is to the interest of
the Allied and Associated Powers to see a customs control
established which would increase Germany’s capacity of paying the
debt incumbent upon her under the head of reparations. Besides, it
appears from the most recent information that this customs control
has recently been established.
2d) The possibility of Germany exacting the payment of this duty on
the basis of the value of the mark gold, insofar as such duty would
not be in contradiction with the stipulations of Article 269 of the
Peace Treaty.
[Page 511]
The Organization Committee believes that it should recall that this
question was discussed during the course of a conference with the
German Delegates, at Versailles on October 10.
That Conference, while not unfavorable to the payment of duties in
gold, took advantage of it as an instrument to be used in exerting
pressure on Germany and laid down the condition that Germany would
have to furnish guarantees that the customs system (without Allied
supervision) of granting importation licenses for Germany would not
in any way conflict with the application of Articles 264–5 and –6 of
the Treaty.
Under these conditions, the Organization Committee of the Reparations
Commission renounced, for the time being, exacting the immediate
payment of duties in gold, in spite of the interest of this measure
from a point of view of reparations, in order to not deprive the
Supreme Council of an instrument of pressure in its relations with
Germany.
As this has been shown as unsatisfactory up to the present time, and
the German reply concerning importation licenses (copy of which is
hereto annexed) being very ambiguous, the Organization Committee of
the Reparations Commission decided, in the course of its session of
November 14, 1919, to indicate to the Supreme Council the important
interest there would be from a reparations point of view to have a
solution made which would permit Germany to make collections,
without delay, of duties on a basis of the value of the mark
gold.
Kindly accept, etc.
[Annex 1]
Note
Necessity of the Immediate
Creation by the German Government of a Customs Control on the
French-German and Belgian-German Frontiers
The American Government instructed its Delegation to call the
attention of the C.O.C.R. to the fact that it constantly receives
reports mentioning that, on account of the absence of the customs
control on the French, German and Belgian-German frontiers,
important quantities of various kinds of products were and are,
every day, imported to the occupied German territory.
The American Government cannot be indifferent to the existence of
such a state of things, which deprives Germany of an important
source of revenue and, consequently, has direct influence on its
capacity to pay the debt which is incumbent upon her, under the
reparations item.
The American Delegation is aware that, in order to assure its own
protection, the German Government established on the right bank of
[Page 512]
the Rhine, a customs
control on the frontier of the territories occupied by the
Allies.
After the ratification of the Peace Treaty, Germany will have the
right to establish a customs control on the French, German and
Belgian frontiers, but the gravity of the situation seems to justify
immediate measures. Therefore, we propose that the organization
Committee should suggest to the Supreme Council to give the German
Government ah official notification of the authorization granted to
it to institute this customs control under the date of November 20;
and add that, according to the provisions of Article 269 of the
Peace Treaty with Germany the Allied and Associated Governments
allow that the payment of the duties imposed be effected on the
basis of the value of the gold mark, as far as these duties are not
in contradiction with the stipulations of the said article.
[Annex 2]
Memorandum Submitted by the German Delegation on
the Importation Policy
To: The Organization Committee of the Reparations
Commission, Paris.
Referring to the interview which took place on October 11 with Mr.
Mauclere, I take the liberty to forward to you herewith a memorandum
concerning the application of the prohibitions to importations to
Germany. This memorandum explains the point of view of the German
Government such as it is, according to the opinion of the
Under-Secretary of State, Mr. Bergmann, of Mr. von Le Suire, and of
myself.
In conformity with the discussion which took place, I again remarked
that it is very urgent and important for us to immediately
re-establish the German customs houses, all along the frontier, for
the application of the customs regulations and of the prohibitions
of imports and exports. Therefore, I earnestly reiterate the request
to cancel the instructions contrary thereto, which were given to the
occupying authorities. Besides, I beg you to kindly inform me as
soon as possible when the discussions will start, concerning the
imports from Alsace-Lorraine, and during which it would be advisable
to deal with the question of the imports from France in general.
[Enclosure to Annex 2]
Memorandum Concerning the Application of the
Prohibition To Import to Germany
In the meeting of October 10 of this year, the Allied and Associated
Governments raised the question as to whether it would not be
necessary
[Page 513]
to guarantee the
uniform application of the German prohibitions to import, with
respect to all countries, by determining certain quotas for the
various goods to be imported and distributing these quotas in an
equal manner. It seems that such a method cannot be realized. There
is a fundamental difference between the application of prohibitions
to import by the Allied and Associated Governments and by Germany.
This difference is caused by the diversity of the situation. It is
possible to determine quotas in the Allied and Associated countries
for the importation of various goods, because the Allied and
Associated Governments have so many items at their disposal that
they can pay for the importation of goods in way of quotas. On the
contrary, in Germany it is not possible to determine any quotas
because Germany has no items at all, or very little, at her
disposal. Therefore, in Germany it will be necessary to proceed
otherwise. In general and in principle, Germany should prohibit all
importations, and only make exceptions in certain cases, by an
especial authorization.
Thus, there is in Germany a general prohibition to import. This
prohibition concerns all goods. It was cancelled for certain goods;
for a certain category of other goods, the customs houses were
authorized in general to allow the importation of the goods in
question to Germany, without special authorization. A list will be
made and sent to you of the goods for which the prohibition to
import was cancelled, as well as a list of the authorizations given
to the customs houses. Besides, exceptions will be made to this
prohibition to import, as above mentioned, in certain cases, by
special authorization. These authorizations will be granted by a
central service in Berlin. They should mention, in a precise manner,
the names of the sender and of the recipient, as well as the kind
and the quantity of the goods. They will be granted when the central
service thinks that the importation of those goods does not
prejudice the aims of the prohibition to import; therefore, it will
be when the necessary items for the payment of the goods will be
available, or when credits will be granted on these goods, for a
period long enough and under favorable conditions, or when the
exportation of German goods will compensate the importation of the
goods in question, either as a result of a special exchange, or of
an agreement between two different states. It is not possible to
establish detailed principles with regard to the question in which
cases especial authorization can be granted, on account of the
diversity of relations and of the difficult situation in which
Germany finds itself. In particular, it is impossible to determine
in general the conditions of credit.
The German prohibition to import constitutes a temporary measure
intended to surmount the consequences of the war and should be
cancelled when the situation again becomes normal. At present,
however, it is absolutely impossible to do without it, or else, the
German
[Page 514]
rate of exchange
could not again become normal. In future, the prohibitions to import
could only exist as far as the various nations will agree on them;
for instance, for hygienic reasons, for reasons of public security,
for measures taken by the League of Nations, pursuant to hostile
manifestations, for the application of monopolies and similar
institutions, and for the execution of a national economic policy.
On the other hand, it is out of the question to apply the German
prohibition to import in such a manner that the goods of the various
countries would be treated in different ways. This cannot be, on
account of the very spirit of this prohibition. On the contrary, the
German prohibition to export will be applied in a uniform manner by
the Allied and Associated Powers (Article 264, alinea 2, Peace
Conditions) as to the goods coming from the producing countries, if
the items are available in order to effect the payment of the goods,
if the necessary credits are granted, or exchange questions, either
for each different case, or subsequent to agreements between the
states, do not prejudice the German rate of exchange. In case it
should happen that goods are offered by various countries to the
Allied and Associated Governments for importation and under the same
conditions, it should be considered, in fact, whether contingents
can be fixed to the various countries in question. However, in the
present state of affairs, it seems absolutely unlikely that this
case might happen.
[Annex 3]
french delegation
Note for the Secretariat General of
the Peace Conference
German Commercial Regime. Proposal
of the French Delegation
1. In a meeting which took place on October 10th last with the German
Delegation, the Allied representatives asked how the German
Government intended to apply Articles 265 and 266 of the Peace
Treaty, in regard to the German imports and exports.
The German Delegation only replied that the prohibition to import
constitutes a measure without which it is impossible to do at the
present time.
2. The prohibition to import which affect[s] nearly all the goods
upon their importation to Germany, and the control existing on those
imports, enables Germany to make differences to the detriment of the
trade of any of the Allied and Associated States; consequently, it
is contrary to the stipulations of Article 265 of the Peace
Treaty.
3. The same difference is made for the exports which are subjected to
a very strict control, as different prices are established or
determined, according to the import countries.
These provisions are contrary to Article 266 of the Peace Treaty.
[Page 515]
4. Now, the German Government requests the right to require the
payment of the customs duties on the basis of the gold mark, on the
French and Belgian frontiers, as is already done on its maritime
frontiers; the French Delegation considers that, from the
reparations point of view, it is advisable to give this
authorization to the German Government; but it thinks that it is
also advisable to examine from the same point of view the question
of the measures taken by this Government, in order to reduce the
freedom of imports and exports.
5. Although the economic recovery of Germany is necessary to enable
her to repair the damages which she made, notably in France, it is
no less necessary that the trade of the Allied and Associated
Countries, and in particular that of France, be not directly
prejudiced by this recovery.
6. That is why the French Government, after having closely studied
the measures taken by the German Government, in order to regulate
the import and export of goods, declares that its adhesion to the
payment in gold of the customs duties on the German frontier is
subordinated to the following conditions:
- (a)
- Germany will restore full freedom of import for the
products, a list of which is hereto annexed.
- (b)
- In case it should not, from the Reparations point of view,
appear possible to lift the embargo on all those products,
quotas will be established and distributed between the
export countries, according to the average of the last three
pre-war years, provided the share of France may not be under
the average of her imports during the last three years, the
calculation being made in weight.
- (c)
- Germany will authorize, without restriction, the export of
all spare parts for machines and rolling stock of all kinds
exported from Germany. Besides, as Germany forbids the
export of certain products which do not appear on the
prohibition list, but for the reasons that they are provided
for, either for deliveries to be made, or because they are
used as substitutes, no prohibition of this kind will be
made or maintained without the approval of the Reparations
Commission.
7. The Articles which do not appear on the present prohibition list
of imports and exports should freely go in and out, and this freedom
should not be restricted, directly or indirectly.
[Enclosure to Annex 3]
List of Products Appearing on the German List of
Prohibitions To Import and of Which the French Government
Requests the Free Entry to Germany
- 1.
- Wines of all kinds, including aperitive and medical
wines.
- 2.
- Cognacs and brandies, and other products made from natural
alcohol of wine, of fruit or fruit seeds.
- 3.
- Bonded liquors.
- 4.
- Flowers, plants and foliage for ornamental purposes.
- 5.
- Seeds.
- 6.
- Abrasives.
- 7.
- Graphite, plumbago, and stove-blacking.
- 8.
- Soaps of all kinds and in all forms.
- 9.
- Resins, gums, lacs and varnishes.
- 10.
- Animal and vegetable wax.
- 11.
- Slaughter-house waste of all kinds.
- 12.
- Phosphates, superphosphates and Dephosphoration dress.
- 13.
- Tartar, tartaric acid and tartrates of all kinds.
- 14.
- Rock salt and sea salt.
- 15.
- Tanning and tinctorial woods and their extracts.
- 16.
- Chrome, nickel, cobalt, antimony, and their ores and
alloys.
- 17.
- Turpentine.
- 18.
- Miscellaneous perfumes.
- 19.
- Glues and gelatines.
- 20.
- Medicines and patent medicines.
- 21.
- Silks and miscellaneous silk goods, natural or
artificial.
- 22.
- Woven stuffs and pure or mixed woolen stuffs, carpets,
blankets and similar articles.
- 23.
- Cotton threads and cloths of all kinds, pure or
adulterated.
- 24.
- Men’s, women’s or children’s garments of all kinds.
- 25.
- Hats and hat trimmings.
- 26.
- Finished leathers and skins.
- 27.
- Baskets and basket work.
- 28.
- Exotic woods, in the rough or finished.
- 29.
- Corks and cork articles.
- 30.
- Porcelain and china articles.
- 31.
- Glasses and optic articles.
- 32.
- Mirrors and crystal, cast or blown.
- 33.
- Iron and iron alloys.
- 34.
- Plates or copper threads; all kinds of articles made of pure
or alloyed copper.
- 35.
- Motor vehicles for passengers or goods, spare parts.
- 36.
- Spare parts for bicycles and motorcycles.
