763.72119/6986: Telegram

The Commission to Negotiate Peace to the Secretary of State

4409. Your 3215 [3214], September 23, 5 p.m. At meeting of Supreme Economic Council [Supreme Council?] September 27 the following decision was taken:

  • “1. The provisional exemption of tankers granted at Brussels on March 14th, 1919, is hereby canceled. This cancellation to be without prejudice to any previous action taken by the A[llied] N[aval] A[rmistice] Commission].
  • 2. The vessels shall be delivered for temporary management to the Allied and Associated Governments according to the division decided upon by the A[llied] M[aritime] T[ransport] E[xecutive] on September 17th, 1919, under the usual armistice terms which in no way prejudice the final division to be made by the Reparation Commission provided for by the Treaty of Versailles.
  • 3. Should the German Government so desire, the said ships shall be employed under the above terms for one voyage for the conveyance of oil to Germany. Should a second voyage be asked for by the German Government the matter will be again referred to the Supreme Council.
  • 4. In consequence, the said vessels shall be sent forthwith to the Firth of Forth in compliance with the instructions of A.N.A.C.”

This solution, which was proposed by Loucheur, French Minister of Reconstruction, was reached after discussions at three meetings and will accomplish the object immediately in view of allowing present utilization of tank steamers. It was understood in addition: (1) that the vessels should not be allowed to sail under the German flag but would go out under that of the A[llied] M[aritime] T[ransport] E[xecutive]; (2) that the crews could not be German; (3) that it was understood that no effort would be made to detain the ships in United States pending the final decision as to their ownership.

It is believed that this disposition of the matter will achieve the result which appears most essential; viz., that the Reparation obligations incumbent on Germany under the treaty will not [be] delayed by want of oil products the need for which in Germany at present is conceded on all hands. In the course of statements made both in the Supreme Council and in the Interim Reparation Commission, protests were made by the American representative against the unauthorized action of the Supreme Economic Council and it is now well understood that the United States Government does not consider itself bound by decisions made by this body in the absence of American representation on subjects in which the United States [Page 548] are interested. The protest which was telegraphed by American Mission to American Legation at Brussels on September 19th immediately on receipt of the news of the reference to Brussels, arrived in mutilated condition the day of the meeting in Brussels and American Legation did not receive a confirmation until after a vote had been passed revoking the exemption of the steamers and after the meeting had adjourned. No permanent detriment has, however, resulted from this accident as subject was considered by the Supreme Council as if no decision had been made by the Supreme Economic Council. Polk.

American Mission