Paris Peace Conf. 180.0501/15
Supreme Economic Council: Fifteenth Meeting Held at the Ministry of
Commerce [on 28th April, 1919, at 10 a.m.]
April 28,
1919, 10 a.m.
The Supreme Economic Council held its Fifteenth Meeting on Monday 28th
April 1919 at 10 a.m. under the Chairmanship of Lord Robert Cecil.
The Associated Governments were represented as follows:—
| British Empire. |
Sir George Foster, |
|
Sir Wm. Mitchell Thomson, |
|
Mr. E. F. Wise, |
|
Sir Wm. Goode. |
| U. S. A. |
Mr. McCormick, |
|
Mr. Hoover, |
|
Mr. Norman Davis, |
|
Mr. Baruch. |
| France. |
M. Clémentel, |
|
M. Loucheur, |
|
M. Celier, |
|
M. Boret. |
| Italy. |
Prof. Attolico. |
| Belgium. |
M. de Cartier de Marchienne. |
117.
The Minutes of the thirteenth and fourteenth Meetings were approved. The
version of Minute 104 Clause (b) proposed by the
American Delegation was accepted, viz:—
“That the Shipping Section should be urged to do all in their
power to expedite the arrangements for getting the boats into
action and to consider the possibility of utilising Belgian
crews of which the Belgian Representative reported a
sufficiency.”
118. Coal Production and Distribution
in Poland and the Former Austro-Hungarian Empire.
With reference to Minute 102 (i) and (ii). The resolution proposed by the
Director General of Relief (112) was accepted with the insertion of the
words “for the present”; the resolution as passed is as follows:—
“The Director-General of Relief is charged for the present with
all matters in connection with the endeavour to increase the
coal production and with the supervision of the distribution of
the coal so produced in the former Empire of Austria-Hungary and
in Poland, working through the Mission of the Communication
Section charged
[Page 219]
with
operation of the through railroad services for the distribution
of food supplies in this territory.
The Communication Section will co-ordinate the activities of its
mission operating these railroad services and the mission which
it is maintaining in Poland.”
It was further agreed that the Sub-Committee on Coal should be kept
informed.
119. Relief Measures.
Austria. With reference to Minute 107 (a) it was reported that the French Government had
not yet received Parliamentary authority for the loan of $15,000,000 but
that it was anticipated that this would soon be given, and that in the
meantime the ships were being loaded in America.
120. Removal of Fishing
Restrictions.
With reference to Minute 109 it was reported that the restrictions had
been removed from the Kattegat but not from the Skager Rak; and that the
restrictions on fishing in the North Sea had been altered so as to allow
the German fishermen the use of a passage free from mines.
121. Situation in Latvia and
Lithuania.
With reference to Minute 111, it was reported that the Senior Naval
Officer at Libau had reported that the situation was not yet
sufficiently clear to allow of the landing of foodstuffs.
122. Relations With Germany.
With reference to Minute 114 it was reported that no reply had been
received from the Council of Four to the recommendations submitted by
the Delegations of America, Italy and Great Britain. The Council
Officers were directed to enquire when a reply might be expected.
123. Shipments Through Germany,
Hungary and Bolshevik Russia.
With reference to Minute 110, the Blockade Section submitted a Resolution
(113) permitting shipments of all commodities through Germany (except
munitions of war) under the I. A. T. C. or Relief Administration
licences and asking for the decision of the Supreme Economic Council on
the question whether a similar permission shall be given regarding
shipments through Hungary and Bolshevik Russia.
After discussion it was agreed to defer the consideration of this latter
question till the position in Hungary should be clearer.
124. Transitory Measures.
With reference to Minute 101 the French Delegates stated that the
memorandum which they were preparing on this subject was nearing
completion, and would be circulated in order that it might come before
[Page 220]
the Council formally and
be considered with a view to a recommendation to the Council of
Four.
Agreed.
125. Armistice Locomotives and
Waggons.
With reference to Minute 112 an extract from the Minutes of the 16th
Meeting of the Communications Section (114) was submitted.
It was agreed:—
That the transfer of armistice locomotives and waggons to countries
assisted by the Supreme Economic Council should be conditional on an
explicit undertaking by the Governments of those countries to accept
financial liability towards the Allies or any one of them indicated by
the Supreme Economic Council for these locomotives and waggons on the
same basis as the credits for relief and for the supply of railway
material.
It was further agreed that the Finance Section should determine the form
of the obligations to be executed.
126. Transport by the Danube.
With reference to Minute 116, and document (111),1 a note by General Mance (115) and a
Resolution adopted by the Communications Section at their special
Meeting on April 26th (116) were submitted.
The question of the control of the Danube Traffic was discussed. It was
agreed that it was urgent, and important that the control should be
unified over the whole river, and that the utmost freedom compatible
with military necessities should be given to relief traffic in
foodstuffs; but opinion being divided on the best means of obtaining
these results, it was agreed to defer the question for consideration at
the next meeting.
127. Resumption of Trade With Occupied
German Territories.
With reference to Minute 115 a recommendation from the Sub-Committee on
Germany passed at their meeting 24th April (117) was submitted, and
after discussion the following resolution passed by the Superior
Blockade Council was approved:—
- 1)
- “Resolved that after the day when
the preliminary peace treaty is presented to the German
delegates, it should be announced that importations into the
occupied Rhine territories (including of course Luxembourg)
are free, with exception of commodities specified on the
prohibited list as set out in para. 51 of the 11th Meeting
of this Council concerning the restoration of trade with
Austria and, in the case of shipments from the Associated
countries, of commodities the exportation of which may be
restricted by domestic regulation.”
- 2)
- “Further resolved that, purely from
a blockade point of view, there is no reason for control
over exports from the occupied Rhine territories, except in
the case of exports to non-occupied Germany,
[Page 221]
which should still be subject
to the control of the Interallied Committee of Luxembourg,
and the Blockade Council [refers this question to the
Supreme Economic Council] for consideration from all other
points of view, with a view to determine as early as
possible what measures, if any, are necessary for the
control of exports from occupied Rhine territories”.
The resolution was referred to the Sub-Committee on Germany and to the
Finance Section to consider what steps if any should be taken, in the
interests of the Financial arrangements for the supply of food, to
enable Germany to secure control of the imports and exports into and out
of the occupied territories.
128. Food Shipments to
Germany.
The Chairman of the Blockade Section drew attention to the alternative
resolutions discussed by the Section at their Meeting 23rd April.
After discussion the following resolution was passed:—
“Whereas, it is the view of the Supreme
Economic Council that there is no possibility of Germany
obtaining imports of foodstuffs equal to the ration of 370,000
tons per month as fixed by the Brussels Agreement,
Resolved, That the Blockade Council is
authorised to dispense with the existing requirement that
shipments of foodstuffs from the Northern Neutral Countries and
Switzerland to Germany receive the approval of the respective
I.A.T.C.’s.[”]
129. Supply of Coal to Italy.
With reference to Minute 102, an interim report (118) from the
Sub-Committee on Coal was submitted and noted.
Appendix 1122
Resolution Proposed by the
Director-General of Relief Regarding Coal Production and
Distribution From Mines in the Former Austro-Hungarian Empire
and Poland
With reference to Minute 102 (thirteenth meeting of the Council), the
Director-General of Relief submits the following resolution for the
consideration of the Council:—
“The Director-General of Relief is charged with all matters
in connection with the endeavour to increase the coal
production and with the supervision of the distribution of
the coal so produced in the former Empire of Austria-Hungary
and in Poland, working through the Mission of the
Communication Section charged with operation of the through
railroad services for the distribution of food supplies in
this territory.
[Page 222]
“The Communication Section will co-ordinate the activities of
its Mission operating these railroad services and the
Mission which it is maintaining in Poland.”
Appendix 113
Resolution From the Blockade Section
Regarding Shipments Through Germany, Hungary and Bolshevik
Russia
The Blockade Section has adopted the following resolutions (Minute
134 of its meeting on the 23rd April):—
1. Resolved—
“That the Superior Blockade Council hereby approves of shipments
being made through Germany of all commodities, except finished
munitions of war, provided that said shipments must in all cases be
covered by an Inter-Allied Trade Committee licence or, where no
Inter-Allied Trade Committee exists, by a Relief Administration
licence.”
2. Further Resolved—
“That this action shall be referred to the Supreme Economic Council
for its information with a request that the Blockade Council be
advised as to whether the foregoing action should be extended to
cover shipments through Hungary and Bolshevik Russia.”
Appendix 114
Extract From Minutes of the Sixteenth
Meeting of the Communications Section Regarding Armistice
Locomotives and Waggons
6 (a). Commandant Martin Prével stated with
reference to paragraph 9 (c) of the draft
minutes of the fifteenth meeting that it was necessary, as regards
both the locomotives and waggons taken from the Armistice
rolling-stock, that the Supreme Economic Council should pass a
recommendation to the Finance Section to hasten the financial
agreement which would permit the cession of this material.3
. . . . . . .
Note.—Paragraph 9 (c) of draft minutes of fifteenth meeting reads as follows:
“9 (c). It was decided that the
Communications Section should request the Supreme Economic
Council to pass a resolution setting out the form of
obligation to be executed by the countries to which
rolling-stock is ceded.”
[Page 223]
Appendix 115
Note by General Mance Regarding the
Control of the Danube Traffic
The administration of an international river like the Danube is very
different from that of a railway, possessing as it does
international political aspects which cannot be ignored. Before the
war the portion of the Lower Danube utilised by maritime shipping,
including two out of the three principal arms of the river to the
sea, was efficiently administered by the European Commission of the
Danube. The rest of the river was administered by six different
organisations.
In discussing the terms of peace considerable tact was needed to
reconcile the conflicting interests involved. The following
provisional arrangements were agreed to:—
The European Commission for the Danube will resume its
functions with the exclusion of the enemy Powers from its
composition. Above the point where the competence of this
Commission ceases, the Danube is to be administered by a
single commission, consisting of representatives of riparian
States, including enemy States, together with
representatives of the non-riparian Powers who have members
on the European Commission. It is laid down that this
Commission will function as soon as possible after the
signature of peace, and as Austria and Bulgaria are affected
this may not be for some time. The permanent statute of the
Danube is to be decided later on by agreement between the
interested Allied Powers.
As regards plant and craft, the Reparation Commission are
providing that restitution shall be made of all craft of
Allied Powers which have been removed by enemy Powers, so
far as they can be traced, and it is proposed in addition
that by way of reparation 20 per cent, of the river craft
shall be given up to be disposed of as decided by the
Allies. After this restitution and reparation have been
carried out, the remaining craft registered in enemy
riparian States will be divided pro rata with the interests
involved to conform to the new territorial frontiers when
they are decided. These new frontiers will similarly
regulate the river works and shore installations which will
come under one or other of the riparian States.
At the present moment control of the Danube is exercised on
the authority of the military Commander-in-Chief. This is
probably necessary during a state of war, and there is very
good authority for this control under the conditions of the
Armistice, but there is no authority for direct control by
the Supreme Economic Council. It is against the policy of
the Council to take over executive control of communications
if it can be avoided, as this is a retrograde step in the
re-establishment of normal conditions. On the other hand, we
cannot set up a civil administration under normal conditions
until the signature of peace, both on account of the
uncertainty as to the frontiers and because the co-operation
of States still at war with us would be involved.
As regards the military organisation employed, I quite agree
that the division which appears to have been fairly recent,
into French and British spheres, is bad, and that it is
essential that the administration,
[Page 224]
at least above Braila, the head of the
maritime navigation, should be under one head.
It is therefore proposed that the Danube Administration
should be placed under a single Allied military control
which should continue until the two Commissions, provided
for in the Treaty of Peace, can take over the
administration. Following the precedent of the Railway
Commissions of the Communications Section, the executive
powers of the Allied Commission should be trusted to one
Power. As regards the mouth of the Danube, the
administration of the European Commission should at once be
resumed, if this has not already been done. The remainder of
the river might be divided up under provisional civil
administrations, under the direct control of the Allied
Military Commission, and it is not improbable that the
divisions already adopted of a Roumanian administration up
to Turnu-Severinu, a Serbian administration from
Turnu-Severinu to Baja, and a Tchecho-Slovakian
administration from Baja to Presburg, or beyond, would meet
the case.
It could be arranged that the decisions of the Supreme
Economic Council affecting the Danube should be communicated
to the Commander-in-Chief through the Communications Section
(not through the Director-General of Relief), with a view to
their being carried out to the fullest extent that military
considerations admit.
The above proposal will enable normal services to be reopened at the
earliest possible moment, subject to military necessities and the
conditions of peace. Communications from Admiral Troubridge indicate
that from the commencement he has been influenced by the same
considerations as the Supreme Economic Council as regards reopening
the river, and it is understood that hitherto the suspension of
commercial traffic has been due largely to blockade restrictions, to
the state of war, and recently to disturbances in Hungary, together
with lack of coal. The agreement between Admiral Troubridge and the
Tchecho-Slovakian Government was designed to avoid the restrictions
referred to in paragraph 3 of Colonel Logan’s report, and there is
no reason why these restrictions should continue under a uniform
control.
As regards the supply of coal the British naval authorities are
supplying 3,000 tons a month, leaving the question of payment to be
determined later. This latter question is now being taken up, as
also is the question of finance under the present régime. The supply
of coal to the Danube should be co-ordinated with the coal situation
generally in Eastern Europe, in which the railway missions of the
Communications Sections will, of course, co-operate.
It is observed that Colonel Logan has, in his last sentence, mixed up
the title of two or more railway missions, but this is a matter of
detail, as instructions will be issued to the missions concerned by
the Communications Section.
[Page 225]
Appendix 116
Draft Resolution From the
Communications Section Regarding Control of Traffic on
Danube
Draft Resolution Adopted by the
Communications Section at Their Special Meeting of April
26, and Submitted to the Supreme Economic
Council
It is important that the navigation of the Danube should be placed
entirely under one authority to be appointed by the High
Command.
This authority should be charged specially to organise, to the utmost
possible extent, the reopening of normal traffic conditions on the
Danube.
In order to save time, the Communications Section should communicate
directly with this authority on economic subjects respecting the
Danube, provided that copies of such communications are at the same
time sent to the High Command.
Appendix 117
Recommendations From the
Sub-Committee on Germany With Reference to the Resumption of
Trade With Occupied Germany
Extract From Minutes of the
Meeting of the Sub-Committee on Germany, Held on April
24
The Sub-Committee, on reference from the Supreme Economic Council,
considered the following resolution passed by the Superior Blockade
Council*:—
1. Resolved—
“That, after the day when the Preliminary Peace Treaty is
presented to the German Delegates, it should be announced
that importations into the occupied Rhine territories
(including, of course, Luxemburg) are free, with exception
of commodities specified on the prohibited list as set out
in paragraph 51 of the eleventh meeting of this Council
concerning the restoration of trade with Austria, and, in
the case of shipments from the Associated countries of
commodities, the exportation of which may be restricted by
domestic regulation.”
2. Further
resolved—
“That, purely from a blockade point of view, there is no
reason for control over exports from the occupied Rhine
territories, except in the case of exports to non-occupied
Germany, which should still be subject to the control of the
Inter-Allied Committee of Luxemburg; the Blockade Council
refers this question to the Supreme Economic Council, for
consideration from all other points of view, with a view
[Page 226]
to determine as
early as possible what measures, if any, are necessary for
the control of exports from occupied Rhine
territories.”
The Committee are informed that the present position, as regards
imports into and exports from the occupied part of Germany, is as
follows: A set of rules to govern these imports and exports has been
agreed upon by the Inter-Allied Economic Committee at Luxemburg who
have recommended that, in the absence of instructions to the
contrary, these resolutions shall come into force as from the 1st
May next.
The substance of these rules is as follows:—
- (a)
- Imports from Allied countries to the occupied territories
are free of licence as far as the occupied territories are
concerned, and are subject only to any export prohibitions
that may be in force in the respective Allied countries and
to any list which may be agreed of goods of which the import
into the occupied territories is to be prohibited. If it is
desired to apply the Austrian prohibited list mentioned in
the above resolution, that list will require to be first
considered by the Inter-Allied Rhineland Commission.
- (b)
- Imports from neutral countries to the occupied territories
are subject to licence to be obtained by the buyer in the
occupied territories from the Luxemburg Committee through
the appropriate Economic Section of the Army of Occupation
concerned.
- (c)
- Exports from occupied territories to Allied or neutral
countries are subject to licence to be obtained as under
(b) above.
- (d)
- Imports from and export to unoccupied Germany are subject
to authorisation issued by the various Economic Sections of
the armies which control the entrance of goods into and the
despatch of goods from the respective zones for which they
are responsible.
- (e)
- The above to be subject to the necessary reservations as
regards all articles which Germany is not allowed to export
under the Brussels Agreement.
In view of the above information, the Sub-Committee recommend to the
Supreme Economic Council that the resolution of the Blockade Section
should be accepted, and they point out that effect has already been
given to the first part of the resolution.
Appendix 118
Report From the Sub-Committee on Coal
Regarding the Italian Coal Programme
- 1.
- A programme of 800,000 tons per month should be arrived at;
the programme should cover three or four months and should be
revised periodically.
- 2.
- As regards Great Britain, sufficient coal is available, but
there is a shortage of shipping. Of the shipments of 730,000
tons allocated
[Page 227]
for
loading in April, some 360,000 tons in fact will not be loaded
till early in May. This is due to delay of ships and other
causes.
- Sir T. Royden undertook to report at once on British programme
for shipments of British coal during May.
- 3.
- As regards France, M. Cahen stated that it was impossible to
supply as much as 6,500 or 6,000 tons per day, and that it was
impossible to say that the amount of 5,000 tons per day, which
has been supplied for the last three days, could be supplied for
more than a fortnight.
- 4.
- As regards Germany, there is at the moment no coal available
for export. The question of shipments by German tonnage to Italy
and France is being dealt with in London.
- 5.
- As regards the United States, it was agreed that United States
assistance would be required. Sir T. Royden pointed out that the
most effective way in which the United States could render
assistance would be to employ their ships in the carriage of
coal from Great Britain to Italy; this method would be twice as
efficient as carrying coal from America. Mr. Summers stated that
United States tonnage could not be employed for the shipment of
British coal, but could only be allocated for the shipment of
American coal.
Sir T. Royden said that if the United States would not allow her
tonnage to be used for the transport of coal other than United
States coal, then Italy must go to her for coal as well as for
tonnage.
It was agreed that Sir T. Royden should report on the British
shipping programme.
M. Cahen would report on the output of coal in France and the Saar,
and on the supply of railway material for use on the Blaye
route.
Mr. Summers would report on what tonnage the United States could
allocate for the shipment of United States coal, and also on railway
material available in France for use on the Blaye route.
