Paris Peace Conf. 180.0501/3
Supreme Economic Council: Third and Fourth Meetings Held at the
Ministry of Commerce [on 1st March, 1919, at 5:30 p.m., and 3d March,
1919, at 2:30 p.m.]
March 1, 1919, 5:30 p.m., and March
3, 1919, 2:30 p.m.
The Supreme Economic Council held its Third Meeting on the 1st March 1919
at 5.30 p.m. under the Chairmanship of Mr. Hoover and its Fourth Meeting
on 3rd March 1919 at 2.30 p.m. under the Chairmanship of Signor
Crespi.
The Associated Governments were represented as follows:
| Great Britain |
Lord Robert Cecil |
|
Mr. J. Keynes |
|
Sir Wm. Mitchell Thomson |
|
Sir Llewellyn Smith |
| U. S. A. |
Mr. McCormick |
|
Mr. Hoover |
|
Mr. Norman Davis |
|
Mr. Baruch |
|
Mr. Robinson |
| France |
M. Clémentel |
|
M. Loucheur |
| Italy |
M. Crespi |
|
M. Chiesa |
20. Instructions to Delegates at Spa
Conference.
On the recommendation of the Blockade, Food, Finance and Shipping
Sections the instructions to the Delegates at the Spa Conference were
agreed in the form in which they appear in the documents attached
hereto, viz:—
| (a) Blockade |
(12) |
| (b) Finance |
(13) |
| (c) Shipping |
(14) |
It was agreed:—
- (a)
- that the following reservations should be placed on record:—
- (i)
- that in connection with Clause 2 of the Finance
instructions the American Authorities could not bind
themselves to accept the actual goods exported but would
agree to take in payment the value of such exports or
other assets only in an acceptable form.
- (ii)
- The American delegates stated they would have to
record a reservation in case the drafting of the list
should be construed as formulating the principle that
Germany shall not be allowed to export anything which is
competitive with products of the Associated
Governments.
- (b)
- that the Delegates to the Spa Conference should be instructed
urgently to impress upon the German Delegates the necessity, in
order to secure the maintenance of order and to facilitate
further supplies of food to Germany, of the Germans working and
producing commodities the value of which might be converted into
credits for the payment of food.
21. Replacement to Neutrals of Food
Shipped to Germany.
With reference to Clause 2 of the Blockade instructions it was agreed
that the Northern Neutrals and Switzerland should receive credit against
their rations of food and food products to the extent to which they ship
food and food products to the liberated or enemy countries for relief
purposes, providing the shipment of food and food products are made
under the joint control of the Food and Blockade Sections of the Supreme
Economic Council.
22. Powers of Communications
Committee.
It was reported that the question had arisen as to whether the
Communications Committee in reporting to the Council should make
specific recommendations or merely state their findings.
It was agreed that they should make recommendations to the Council.
23. Financial Arrangements for Relief
of Countries Other Than Germany.
The outstanding Clauses of the Finance Section Report (viz: 3, 4, 5, 6,
7, 8, 9 and 15) were acted upon as follows:—
1 (ex. 3). Credits to enemy countries other than
Germany.
“That credits to enemy countries other than Germany be granted only
in the event of no cash assets being available for payment: that the
best available non-liquid assets be taken as collateral security
against such credits: and that their repayment be a first charge on
the future resources of such country ranking in front of any payment
for reparation or indemnity. The above principle is established in
respect of credits not exceeding $60,000,000 in the first
instance.”
Agreed with the following reservations:—
- (i)
- That the U. S. Treasury is not empowered to make such loans
excepting insofar as the Christian population of Turkey is
concerned.
- (ii)
- The Italian and French Delegates agreed to this only in this
specific case which should not be construed as a precedent in
other cases.
2 (ex. 4). Credits for liberated countries.
“That relief and reconstruction credits to Belgium, Poland,
Czechoslovakia, Roumania, Serbia, Montenegro, Jugo-Slavia, and the
Baltic States be made a first charge against any receipts by these
countries from the enemy in respect of reparation or
indemnity.”
Agreed, the French and Italian Delegates making the same reservation as
in the instance of paragraph 3 above.
[Page 33]
3. Finance of supplies for Austria.
(a) ex. 5. “In order to secure immediate action
for the finance of food supplies required in German-Austria to prevent
extreme hardship and starvation and the spread of anarchy the following
arrangement is proposed:—
“That Great Britain, France and Italy agree to advance credits in
equal thirds up to a maximum of $30,000,000 between now and the
next harvest to finance such food supplies as may be consigned
to German-Austria under the direction of the Supreme Economic
Council inclusive of those already provided under provisional
arrangements, it being clearly understood that the above figure
is a maximum and that the question of actually opening credits
up to this amount depends on the progress of events and the
decisions of the Economic Council from time to
time.”
Agreed, the French and Italian Delegates making the same reservation as
in the instance of paragraph 3 above.
(b) ex. 6. Clause 6 was amended and agreed in the
following form:—
“That as security for such credits the Austrian Government should
formally agree to place at the disposal of a Commission or
Commissioners representative of the three leading powers a
suitable lien on (a) the salt mines in
Austria, (b) the properties of the City
of Vienna, and (c) such other assets as
may be agreed upon, in Austria, immediate steps being taken in
the case of the salt mines to clear these mines of all prior
claims.”
(c) ex. 7. Clause 7 was amended and agreed in the
following form:—
“That an Inter-Allied Commission be appointed of three or four
members with a view to taking the necessary steps to make
arrangements for due repayment of the credits out of the income
of the above properties or otherwise.”
(d) ex. 8. “That the repayment of such credits be
a first charge on the future resources of Austria, ranking in front of
any payment for reparation.”
Agreed, the French and Italian Delegates making the same reservation as
in the instance of paragraph 3 above.
4 (ex. 15). Argentine cereals for Austria.
Clause 15 was amended and agreed in the following form:—
“The Associated Governments are prepared to allow imports of
cereals from the Argentine into German Austria up to a maximum
of 30,000 tons provided German Austria is able to make its own
financial arrangements subject to the approval of the Financial
Section of the Supreme Economic Council.
The Associated Governments are prepared to transmit through the
Wheat Executive to addressees in the Argentine cable messages
from
[Page 34]
the Austrian
Government properly and necessarily arising out of the proposed
transactions. In the event of contracts being arranged by
Austria the Associated Governments will as far as possible
facilitate shipping arrangements, any costs being charged by the
Associated Governments providing the Shipping against credits
available for the purpose accruing to the Austrian Government in
respect of the Austrian Mercantile Marine under the management
of the Associated Governments.”
5 (ex. 9). Finance for supplies for Bulgaria.
“That the Financial Section recommend for the approval of the
Supreme Economic Council the proposed sale of two million
dollars worth of foodstuffs by the American Relief
Administration to the Bulgarian Government, to be paid in gold
or such liquid assets as may be acceptable to the American
Relief Administration.”
Agreed.
It was further agreed that the question of providing a permanent method
of finance for the relief of Bulgaria should be referred to the Finance
Section for consideration.
Appendix 121
Instructions to the Delegates at the
Spa Conference
Blockade
With reference to paragraph 5 of the financial instructions, the
Associated Governments are prepared to permit the importation of
foodstuffs into Germany from the northern neutrals and Switzerland
within the quantities already approved by the Supreme War Council
and under the control of the Supreme Economic Council.
2. In regard to exports from Germany to neutral countries, in order
to furnish means of payment for food bought by Germany, the list of
articles which Germany is not allowed to export will be prepared by
the Raw Materials Section of the Supreme Economic Council.
Appendix 13
Instructions to the Delegates at the
Spa Conference
Finance
For the time being, and at least during the period of the Armistice,
no arrangement can be contemplated which would involve the grant
[Page 35]
of a loan or credits of any
kind by any of the Associated Governments to Germany.
2. Germany must be required to pay for such food or other supplies as
it has been decided by the Supreme War Council to supply to her
directly from any of the associated countries (say a total of
270,000 tons of foodstuffs), out of whatever liquid assets or
exports can be obtained from her within the period of the supply in
question (giving preference to credits arising from exports of raw
materials, such as coal, potash, timber, and of manufactured
commodities, such as dye-stuffs, but not excluding gold or other
liquid assets, in so far as such exports are not immediately
realisable for payment of food), such assets to be finally
transferred to the Ally or Associate to whom payment is due for the
said supplies.
3. With reference to proposals set forth at the Financial Conference
at Treves, 14th to 15th February2—
- (a.)
- The Associated Governments are prepared to allow the net
proceeds of the sale of German cargoes which are or are
about to be discharged in neutral ports to be utilised for
the purchase of foodstuffs.
- (b.)
- The Shipping and Raw Materials Sections of the Supreme
Economic Council have been asked to take all possible
measures for obtaining an estimate of the value of the goods
and for expediting and organising their realisation.
- (c.)
- All reasonable facilities are to be given for
communication between the persons responsible for realising
the goods in neutral countries and the owners in
Germany.
4. The Associated Governments are prepared to allow imports of
cereals from the Argentine into Germany up to a maximum of 100,000
tons in the first instance, in addition to the quantities mentioned
in Clause 2 above, but as a part of such subsequent instalments as
may be granted by the Supreme War Council, provided the German
Government are able to make their own financial arrangements subject
to the approval of the Financial Section of the Supreme Economic
Council.
The Associated Governments are prepared to transmit through the Wheat
Executive to addressees in the Argentine cable messages from the
German Government properly and necessarily arising out of the
proposed transactions. In the event of contracts being arranged by
Germany, the Associated Governments will, as far as possible,
facilitate shipping arrangements, any cost being charged by the
Associated Government providing the shipping against credits
available for the purpose accruing to the German Government from
each Associated Government in respect of the German Mercantile
Marine under
[Page 36]
the management
of the Associated Governments. It must be clearly understood,
however, that no shipping arrangements can be commenced until a
substantial number of German vessels have left German ports for
ports of delivery, and the future supplies of Germany must largely
depend upon the date at which the German vessels are available for
loading in the countries of origin.
5. The Associated Governments are prepared to inform the Governments
of neutral countries that, under the control and with the approval
of the Supreme Economic Council, they will raise no objection to the
grant of credits by banks or other institutions or individuals in
neutral countries to the German Government or its nationals,
provided arrangements are made for the transfer of the net proceeds
of such credits in payment for food supplied to Germany.
Germany shall not, however, export, or make use of, any securities
prohibited by the Armistice, without the approval of the Associated
Financial Representatives.
6. The Associated Representatives, having in view the understanding
that the provisioning of the left bank of the Rhine will be distinct
from that of the right bank, and will be placed under the authority
of the High Command of the Associated Armies, will notify the German
Representatives that an appropriate proportion of any finance which
is arranged shall be assigned for the payment of food supplies for
the left bank of the Rhine, the interchange of local foodstuffs
between the left and right banks of the Rhine being arranged for in
such cases as are desirable.
Note.—In the meantime, no financial
objection is raised to the Associated Armies providing or continuing
to provide as an interim measure such food supplies as are urgently
required to the civilian population of the occupied areas against
payment in marks, the redemption of such marks to be a first charge
on the available means of redemption.
7. There are various assets to be transferred from Germany, the
amount and date of transfer of which are at present uncertain,
namely:—
- (a)
- Exports: Coal, potash, dyes, timber, &c.
- (b)
- Proceeds of cargoes sold in neutral ports.
- (c)
- Foreign securities to be requisitioned.
Pending the realisation of these assets, the Delegates are authorized
to agree to furnish food to a further value of 11,000,000l. (in addition to 6,000,000l. already arranged) for eventual payment out of the above
assets, subject to the German Delegates agreeing to deposit gold in
the Banque nationale de Belgique, with right to the Associated
Governments to transfer to neutral bank or banks, as collateral,
pending realisation, the gold to be returned to Germany pari passu with realisation.
[Page 37]
Appendix 14
Instructions to the Delegates at the
Spa Conference
Shipping
The Supreme Economic Council instructs the Shipping Representatives
to demand from the German Representatives a statement that the
German Government will proceed with all possible despatch to
surrender the German merchant fleet in accordance with the Armistice
of the 16th January,3 the Trèves Agreement of
the 17th January, and the terms of the attached statement.
statement
1. Vessels to be excepted.—Paragraph 1 of the
Treves Agreement of the 17th January provides for—
“the whole of the German merchant fleet
(including all passenger and cargo vessels, other than those
excepted by a Commission which shall be set up by the
Associated Governments) to be placed immediately at the
disposal of the Associated Governments.”
The Associated Governments are prepared, for the moment, to except
provisionally (a) sailing vessels, and (b) vessels under 1,600 tons gross register
having no passenger accommodation.
The Associated Governments are not at this stage prepared to grant
final exemption in respect of any vessels, but must reserve the
right to claim at a later date any vessels now provisionally
excepted.
2. Vessels in neutral ports.—The Associated
Governments require that the German Government shall forthwith
deliver a written statement to the effect that all German vessels
now in neutral ports are formally handed over to the Associated
Governments. They also require that, in so far as action has not
already been taken, the German Government shall at the same time
inform each neutral Government that the Associated Governments have
in consequence authority to send inspectors to examine the vessels
and take all other measures that may be necessary to bring the
vessels to ports in the territories of the Associated Governments.
The German Government shall simultaneously secure that the German
owners inform their local agents to the same effect, adding at the
same time that they should place themselves at the disposal of the
Associated Governments to give any information, advice, or
assistance which may be required in connection with the preparation
of the vessels for sea. Where the German Government is unable to
secure the immediate cabling of a communication to the local agents,
they shall at once telegraph a
[Page 38]
statement of the names and addresses of such agents to the Naval
Armistice Commission.
3. Financial arrangements.—The terms of the
Armistice of the 16th January provided that “pour l’utilisation de
ces navires il sera attribué une rémunération approprieé qui sera
fixée par les Gouvernements alliés.” Accordingly, the Associated
Governments have come to the following conclusion:—
A rate of hire will be assigned for each vessel and will be credited
to the German Government and not paid to the German shipowner. The
Associated Governments cannot credit a higher rate in respect of any
German vessel than the lowest rate which is being paid for a similar
class of vessel by any Associated Government to its own shipowners.
They do not, however, intend to credit a lower rate of hire than is
determined by this principle. The hire so credited will be accepted
by the Associated Governments in payment of supplies to Germany.
4. Crews.—With reference to the provisions of
paragraphs 5 and 6 of the Agreement of the 17th January, the
Associated Governments will not retain German crews after the
delivery of the vessels, at any rate, in so far as the vessels to be
delivered in the immediate future are concerned. The crews will be
repatriated at the expense of the Associated Government to whom the
vessel is delivered.
The Associated Governments will require the German Government to
arrange for a competent engineer officer and several other competent
persons to remain on any ship in regard to which instructions to
this effect are given, for such period as may be required after the
delivery of the vessel. Instructions on this point will be
transmitted through the Naval Armistice Commission before the vessel
is ordered to sail.
The Associated Governments retain the right given in paragraph 5 of
the Agreement of the 17th January, to place an armed guard on board
vessels whether at the time they first leave their present ports for
so long as the German crews remain on board, or in cases where
German crews are retained for service after delivery of the
vessel.
5. Flag.—Paragraph 4 of the Agreement of the
17th January provides that “German ships shall put to sea under an
Allied flag or flags.”
Vessels leaving German ports of delivery shall fly at the stern the
flag of the Allied Maritime Transport Council, and, after delivery,
the national flag of one of the Associated Governments, in addition
to the Allied Maritime Transport Council flag. The latter flag will
be flown either at the stern or the fore.
6. Ports of delivery.—It is probable that the
majority of the vessels will be required to be delivered either at
Liverpool, Brest, or Cherbourg. The exact port for each ship will be
indicated to the German Government through the Naval Armistice
Commission. It is contemplated
[Page 39]
that vessels proceeding through the English Channel will pick up
pilots in the Downs, and vessels must be provisioned for sufficient
time to enable them to reach their ports of delivery in accordance
with the instructions of the Naval Armistice Commission, with
adequate margin for navigational delays.
7. Administrative arrangements.—The German
Government shall nominate as the delegates provided in the terms of
the Armistice of the 16th January a person to be resident in
Hamburg, who will see that any information required by the body
appointed by the Associated Governments under paragraph 1 of the
Agreement of the 17th January is obtained from the German Government
or from German shipowners, and will secure that any necessary
instructions given by that body in connection with the management of
the vessels after they have been delivered at the port of delivery
are duly carried out.
8. Information required from the German
Government.—The German Government shall furnish at the
earliest possible moment the following information, except in as far
as it has already been given:—
- (a)
- A full list of all German vessels above 500 tons gross
register, with statement as to the present condition of each
vessel and her expected date of readiness for sea.
- (b)
- Full information as to which vessels, whether in the lists
already given by the German Government or not, have
passenger accommodation, and how many passengers each vessel
can accommodate in each class.
- (c)
- Complete sets of plans, including docking plans of all
German merchant vessels, including those under construction
which can put to sea within the next six months and those in
neutral ports, to be obtained from the owners or otherwise,
and to be delivered at the earliest possible moment to the
Naval Armistice Commission.
9. The Associated Governments require that the German Government
shall at once proceed with the handing over of the German merchant
fleet in accordance with the terms of the Armistice of the 16th
January, and the Agreement of the 17th January, and the arrangements
above indicated.
Any further details connected therewith shall be settled by the
Associated Governments after such consultation, if any, as they may
think desirable to make with representatives of the German
Government.
