Papers Relating to the Foreign Relations of the United States, The Paris Peace Conference, 1919, Volume VI

Paris Peace Conf. 180.03401/87

CF–87

Notes of a Meeting Held at President Wilson’s House in the Place des Etats-Unis, Paris, on Monday, 23 June, 1919, at 4:30 p.m.

Paris, June 23, 1919, 4:30 p.m.

• Present
  • United States of America
    • President Wilson,
    • Mr. Lamont,
    • Mr. Norman Davis,
    • Dr. Taussig.
  • British Empire
    • The Rt. Hon. D. Lloyd George, M. P.,
    • The Rt. Hon. A. J. Balfour, O. M.,
    • Mr. Fountain,
    • Colonel Peel,
    • Mr. Carter.
  • France
    • M. Loucheur.
  • Italy
    • Baron Sonnino,
    • M. Crespi.
  • Japan
    • Baron Makino

Sir M. P. A. Hankey, K. C. B., Secretary.

M. Mantoux, Interpreter.

A draft clause providing that Austrian property in the territory ceded by Austria should not be subject to retention or liquidation under the Economic Clauses of the Treaty, was placed before the council. See Annex. Liquidation of Austrian Property in Ceded Territory

President Wilson read the draft and asked Dr. Taussig to explain it.

Dr. Taussig explained that under the Economic Clauses as originally drafted, Austrian property in the ceded territories was subject to retention and liquidation by the Governments acquiring the territories. It had been felt that the maintenance of such a provision would inflict a fatal blow on Austrian financial stability, and the Council had accordingly agreed at their meeting on the 16th June¹ that Austrian private property within the territories in question should not be treated as enemy property. It had been referred to a Committee consisting of Mr. Baruch, Colonel Peel, Monsieur Loucheur, and Monsieur Crespi to bring up a draft clause giving effect to this decision.

Mr. Lloyd George agreed.

Colonel Peel called attention to the fact that the substance of the new Article had not yet been communicated to the Czecho-Slovaks and the other smaller powers affected by it.

Mr. Lloyd George thought it essential that they should be informed of the Article.

President Wilson concurred.

It was therefore decided that the Article should be approved and should be communicated to the Delegations concerned, i. e. the Delegations of the countries which would acquire territory from Austria under the Treaty.

(The Article was initialled and Sir Maurice Hankey was directed to communicate it to the Secretary General for the information of the drafting Committee.)

Villa Majestic, Paris , 24 June, 1919.

Appendix to CF–87

M–303

New Article To Be Substituted for Article 49 of Part X (Economic Clauses) of the Austrian Treaty

Notwithstanding the provisions of Article 32 and the Annex to Section IV of Part X (Economic Clauses) the property rights and interests of Austrian nationals or companies controlled by them situated in the territories which formed part of the former Austro-Hungarian Monarchy shall not be subject to retention or liquidation in accordance with those provisions.

The property rights and interests here referred to do not include property which is the subject of Article 12 of Part IX (Financial Clauses).

Nothing in this Article shall affect the provisions laid down in Chapter VIII. (Reparation) Section I., Annex III, as to property of Austrian nationals in ships and boats.

• G. C.
• W. W.
• D. Ll. G.
• S. S.
• N. M.

23 June, 1919.

1. CF–72/1, p. 510.