delegate an unofficial representative to Brussels who will remain in contact with the Allied experts during the conversations held between the latter. It would be particularly agreeable to the French Government if the American Government would take a decision in that sense. Signed G. Leygues". Boyden advised. WALLACE 462.00 R 29/412: Telegram The Acting Secretary of State to the Ambassador in France (Wallace) WASHINGTON, December 15, 1920—1 p.m. 1700. Your 2006, December 13, 5 p.m. See Department's 1684, B-168 for Boyden. You are requested to inform the French Foreign Office that this Government does not deem it practicable to be represented at the conference at Brussels on December 15. DAVIS DELIVERIES OF GERMAN DYESTUFFS AND CHEMICALS UNDER THE TREATY OF VERSAILLES Policies of the Associated Governments-Appointment of a Dye Expert for the United States-Allied Agreement of September 15, 1919-Distribution of Dyes among the Associated Powers-Statement on February 10, 1920, of American Views on the Delivery and Distribution of Dyestuffs and Chemical Drugs-Arrangements between the Department of State and the Textile Alliance 611.626/22: Telegram The Commission to Negotiate Peace to the Secretary of State PARIS, August 10, 1919-[1 a.m.] 3601. At informal meeting[s] between British, French, Italian and Belgian dye experts and German dye experts which have been proceeding at Versailles, very acute differences developed between the different delegations. The British have been represented by delegates chosen from dye manufacturers who are anxious to reduce to a minimum the utilization of German dyes evidently in the hope of keeping them off the market until Great Britain will be able to export. On the other hand the delegates of France, Italy and Belgium are representatives of textile industries who are exceedingly anxious to receive at once large quantities of dyestuffs for the reestablishment of their industries and who are under very great political pressure to accomplish this. The Germans appeared anxious to put into effect at once the provisions of annex VI of the reparation clauses so as to know as soon as possible precisely where they stand and what dyestuffs will be left to dispose of after the exercise of the option given the Reparation Commission. The French, Italians, and Belgians in agreement with the Germans accordingly proposed that the German inventory of stock should be given and accepted as of August 15 and the option exercised within 15 or 30 days thereafter. The British on the other hand refused to accept this procedure. A meeting was held yesterday of the British, French, Italian, and Belgian experts at which Dulles 88 presided in an effort to reconcile the conflicting views. Dulles stated that it would be impossible for the United States to agree to an anticipation of the treaty clauses. At the same time steps should be taken to ensure the French, Belgians, and Italians facilities to purchase German dyestuffs pending the coming in force of the treaty. It appears that the British through the Rhineland Commission and the Army of Occupation have succeeded in practically impounding all German dyestuffs on the theory that they could not be disposed of pending the coming in force of the treaty and the exercise of the option referred to in annex VI, reparation clauses. It was eventually agreed to accept the view that no effort would be made to anticipate the time limits established by the treaty unless the United States agreed to this procedure. The American delegate undertook to cable for instructions in the matter. It was on the other hand agreed that German dye requisites [stocks] in occupied area should be made available for French, Italian and Belgian pur. chasers and that France should purchase 350 tons[, Italy 350 tons and Belgium 150 tons]. It was understood that these [purchases] would be for domestic use only and not for [re-]export. It was also agreed to recommend to the temporary Reparation Commission that it take steps to bring about the immediate formation of a committee of experts to consider the operation of annex VI. The foregoing recommendations were presented to the Committee on the Organization of the Reparation Commission at its meeting held August 9 and were approved. The Mission is not advised as to what the policy of the United States will be with regard to dyestuffs but whatever its policy is, [it is] believed that we will be at a disadvantage unless an American dyestuffs expert is present in meeting[s] of the experts of other committees which are taking place. Polk. AMERICAN MISSION 88 John Foster Dulles, financial adviser, American Commission to Negotiate Peace. 611.626/22 Telegram The Secretary of State to the Commission to Negotiate Peace WASHINGTON, August 21, 1919—5 p.m. 2908. Your 3601, August 10, 1 a.m. Our present policy is to issue no licenses whatsoever for any dyestuffs produced in Germany, because, under present conditions, they would probably be imported through the old German agencies who are using every effort to regain Germany's hold on the dyestuff industry in this country. Dyes of non-German origin are being imported in considerable quantities, and it is understood that, under the Treaty, dyestuffs may be secured by American consumers directly from the Reparation Commission and without the intervention of the old German agencies. It is the opinion of our Advisory Committee on Dyes that the disadvantages of importing through these agencies outweigh any present needs of American Consumers. There is, however, a possibility that the need for vat colors will become so pressing in the very near future that it will be advisable to anticipate the functioning of the Reparation Commission and to license the importation, through other channels, of limited quantities of vat colors. If this should prove to be the case, would it be possible as far as your are informed, for American consumers to negotiate for and purchase vat colors directly from the German producers, either in unoccupied or occupied Germany, or will Germany prohibit all exports of dyestuffs pending the coming into force of the Treaty and the exercise of the option provided for in Annex VI? LANSING 611.626/27: Telegram The Commission to Negotiate Peace to the Secretary of State PARIS, August 23, 1919-11 p.m. [Received August 24-10: 48 a.m.] 3870. Department's 2908, August 21, 5 p.m. The Mission concurs in your views that under the treaty dye-stuffs may be secured by American consumers directly from the Reparation Commission and without the intervention of the old German agents in the United States. Mission is further of the opinion that it will be possible for American consumers to negotiate for and purchase vat colors directly from the German producers either in unoccupied or occupied Germany although it may facilitate such purchases if authorization of Committee on Organization of Reparation Commission is first obtained, particularly if purchases are to be made in occupied area. It is believed that it would be easily possible to have an allotment of dye-stuffs for the United States added to the amounts authorized for France, Italy and Belgium as reported in Mission's 3601, August 10, 1 p. m. The Dulles report therein referred to, which was rewritten [approved] by your Committee on Organization of Reparation Commission, contains a declaration secured by Dulles reading as follows: "The delegates of France, Italy and Belgium further volunteer to assist in the acquisition by Great Britain and the United States of German dye-stuffs in the event that the two latter countries should desire to participate in purchases thereof." There appears to be no disposition on the part of German Government to prohibit exports of dye-stuffs pending the coming into force of the treaty. It is not in Germany's interests so to do for the reasons: 1. That dye-stuffs sold other than by treaty provisions can command a higher price and, 2. Dye-stuffs sold at the present time will operate to diminish the stocks on hand at the time of coming into force of treaty and which stocks will serve as basis for treaty option. Polk. AMERICAN MISSION 862.659/6: Telegram The Secretary of State to the Commission to Negotiate Peace WASHINGTON, August 28, 1919—3 p.m. 2978. President has approved that Doctor Charles H. Herty, now Secretary of Board passing on Dye licenses, be sent to Paris as dye expert of the United States. LANSING 611.626/27: Telegram The Secretary of State to the Commission to Negotiate Peace WASHINGTON, August 28, 1919-5 p.m. 2984. Your 3870, August 23, 11 p.m. Kuttroff Pickhardt & Company who, as you know, are agents for the Badische Company, are representing to us and to the dye consumers that they are in a position to secure and deliver immediately the present requirements of the American consumers for vat dyes if we grant the necessary import licenses. These representations do not correspond with the information given to us recently by MacDowell and Bradley Palmer 88 nor with the inference in your 3870 that 88 Charles H. MacDowell and Bradley W. Palmer, economic advisers, American Commission to Negotiate Peace. purchases of dyestuffs in Occupied Territory will be difficult unless facilitated by the Committee on Organization of the Reparation Commission. We are very anxious to secure a definite confirmation of our present understanding that the only effective way to secure our present dye requirements from the Occupied Territory is to effect purchases through official channels and this for the reason that the Rhineland Commission will not permit the withdrawal of dyestuffs from the Occupied Territory unless request for the same is made through official or quasi official channels. We are contemplating a plan to provide for the immediate importation of a six months' supply of vat dyes directly through the Allied authorities and without the intervention of any importing agencies. LANSING 611.626/30: Telegram The Commission to Negotiate Peace to the Secretary of State PARIS, September 6, 1919-3 a.m. 4069. At meeting of Reparation Committee on September 4 discussion of dye stuff situation disclosed continued sharp difference of opinion between French and British Delegates. Chairman Loucheur with great emphasis and considerable heat exposed the desperate situation of industries in Roubaix and elsewhere in Northern France due to lack of dye stuff[s], and he was supported by Belgian and Italian Delegates who stated that needs of their countries were excessively urgent. The French allege that the delivery of the dye stuffs outside of the option provided for by part VIII, annex VI, paragraph 1, of the treaty will result in excessive prices. being insisted upon. According to their statements the 850 tons mentioned in American Mission's 3601, August 10, 1 a.m., could only be bought at prices three or four times as great as those on the stock lists hereinafter mentioned. The very serious difficulty is also obvious, that if purchases in large quantities are now permitted the stocks on hand when the treaty comes into force will be so reduced as greatly to impair the deliveries under the reparation clauses. The French solution proposed is that the option should not be formally exercised but that deliveries should be anticipated at prices fixed in accordance with the treaty provisions, such deliveries to be deducted from the shares with [of] countries benefiting by the option when the treaty comes into force. Objection was made to this plan by the American and British Delegates who pointed out that an anticipation of the execution of the treaty was involved |