dyes in question within the limits of the options; on the understanding that the dyes so ordered shall be of standard quality, and that all directions pertaining thereto will be given by the Textile Alliance direct to the German manufacturers or to the Reparation Commission through the proper American representatives. 9. The Department of State shall in due course advise the Textile Alliance to whom and in what manner the cost of the dyes shall be paid. The Textile Alliance shall not be obliged to pay for dyes until shipped and until the receipt of a bill therefor nor shall it in the event of a deferred bill be obliged to pay more than the agreed prices with such interest, if any, as the Textile Alliance may have received thereon subsequent to the date of shipment. 10. At intervals of three months or at such other times as the Department may designate the Textile Alliance shall render reports to the Department of State indicating the dyes that have been ordered showing how disposed of and at what prices. The Department of State shall have a right to audit the accounts covering transactions under this agreement if desired. Should the transactions of the Textile Alliance as evidenced by these reports or audits be unsatisfactory to the Department of State it shall have the right to require such changes as it may desire with respect to future transactions. 11. The Department of State will extend whatever assistance it may consistently offer in overcoming any obstacles the Textile Alliance may encounter in marketing dyes ordered under Option "A". I am [etc.] For the Secretary of State: 611.626/233a: Telegram The Secretary of State to the Ambassador in France (Wallace) WASHINGTON, July 30, 1920-7 p.m. 1315. For Boyden from Department: B-76. Department and Textile Alliance have reached agreement regarding pool, also daily production February 1 to June 30, also future production Reparation dyes on lines similar to former contracts. You are hereby directed to immediately notify Reparation Commission, also German Government, also German manufacturers, also Chapin, textually as follows: "Department of State has empowered the Textile Alliance Incorporated of New York to order and receive any or all of the dyes the United States may be entitled to receive from the remaining im pounded stocks, also from daily production February 1 to June 30 inclusive. The orders are provisional upon the dyes being of standard quality. The Textile Alliance will place its orders not later than August 10th for impounded dyes and shortly thereafter for the daily production February 1 to June 30, direct with the German manufacturers if no objections are raised thereto by the Reparation Commission. Orders will be accompanied by complete specifications also full directions which should be complied with ". Please cable when done. Will cable further regarding future production when you advise particulars of arrangement consummated between Germans and Allies. Agreement will be forwarded to you by pouch for your information. COLBY 462.00 R 29/282a The Secretary of State to Dr. Areli H. Jacoby WASHINGTON, November 8, 1920. DEAR SIR: You are hereby appointed as Technical Adviser to the Unofficial American Delegation to the Reparation Commission at Paris, to represent the interests of the United States Government respecting that portion of Reparation dyestuffs allotted to the United States of America and which are covered by the lists and inventories of the German manufacturers submitted to the Reparation Commission as of August 30th, September 5th, 19th, and 27th, 1919, and those dyestuffs manufactured by the German producers subsequent to February 1, 1920. Your salary has been fixed at $1,000 per month and actual and necessary transportation expenses in going to and returning from your post of duty abroad, including transportation of your family and effects, and $30.00 per day while at your post of duty in lieu of all other per diem, travelling expenses and expenses on account of subsistence. The aforesaid salary, travelling, and subsistence and per diem expenses shall be paid from those surplus monies which have accrued or which may accrue to the United States Government from the resale of that portion of Reparation dyestuffs allotted to the United States of America as set forth in agreements which are the subject of the Department's letters of April 10th and July 30, 1920, to the Textile Alliance, Inc. Any payment made hereunder by the Textile Alliance, Inc., shall be credited to it as against its obligations to the United States Government under the aforesaid agreements. You will receive your instructions from and be responsible to the Secretary of State. I am [etc.] BAINBRIDGE COLBY 611.626/293a: Telegram The Acting Secretary of State to the Ambassador in France (Wallace) [Paraphrase] WASHINGTON, December 29, 1920-6 p.m. 1735. For Boyden for Perret. B-178. 21 Your letter November 25 to Merle-Smith in regard to suggested dye-stuffs agreement. Department's policy has been merely to keep open opportunity to obtain needed German dyes on price equality with Allies. Department cannot go beyond this defensive position unless real necessity appears. Textile industries now practically at standstill and there is no demand for dyestuffs. Conditions may change but textile interests not willing to prophesy future or commit themselves. At this time Department does not favor separate agreement with the Germans. Unless necessary, Department does not desire further commitments on account of uncertainty of future dye situation from economic and legislative point of view and uncertainty of continued representation in Paris on Reparation Commission. DAVIS STATUS OF GERMAN SHIPS TAKEN OVER DURING THE WAR BY THE UNITED STATES AND LATIN AMERICAN COUNTRIES Disposition of the United States to Support the Claims of Brazil, Cuba, and Uruguay to German Ships If Made under the Wilson-Lloyd George Agreement of May 1919-Claim of the United States to Title to German Ships Taken in Its Own Harbors-Purchase from Peru of a Former German Ship by the United States Shipping Board 862.85/866: Telegram The Acting Secretary of State to the Ambassador in France (Wallace) WASHINGTON, December 23, 1919—4 p.m. 9418. For Wallace and Rathbone.22 Refer to Mission's 3794, August 20, 10 p.m. and 3537 August 6 10 p.m., and Department's 2917 August 15 1 p.m., and 3092 September 10 7 p.m., both to Mission.23 Brazil has requested the aid of this Government in light of possible difficulties with the French in regard to the disposition of the 21 Not printed. "Albert Rathbone, Assistant Secretary, U. S. Treasury, in Europe to handle matters relating to reparations; unofficial representative on the Organization Committee, Reparation Commission, after Jan. 10, 1920, the Reparation Commission. 23 None printed. 126794-vol. 11-36- -38 German ships taken over by Brazil in her ports during the war. Negotiations have been in progress to sell the ships to France. An offer for the ships has recently been received by Brazil from an American company. The French have been so notified and asked whether they wished still to buy. Brazil fears that the French not able to buy will place difficulties in the way of Brazil giving good title to the ships to any other buyer. In this connection please note Wilson-Lloyd George Agreement.23 Our understanding is that Great Britain, Italy and Japan having adhered to the agreement are bound thereby. France has agreed thereto as far as regards U.S. rights but not as regards the rights of Brazil. In addition Brazil states that she has chosen to settle compensation for the ships taken over directly with Germany and not by payment of compensation to the Reparations Commission. If Brazil by appropriate proceedings has not taken title as well as possession, the ships may come under operation of the Treaty, Annex III, Reparations, and be subject to proportional distribution for replacement of shipping losses by the Reparation Commission, if the action of the Commission is not limited by the provisions of the Lloyd George Agreement. If Brazil has not taken title it would seem that Brazil's ability to pass an unimpeachable title depends on the adherence of both France and Brazil to the Wilson-Lloyd George Agreement. This must include agreement by Brazil to pay compensation for the ships to the Reparation Commission less the sum which would be due her by way of the proportional amount of compensation for her shipping losses. In any event the United States can at present support Brazil only in so far as such support is consistent with the Lloyd George Agreement signed by the President. If Brazil desires to press these claims under said agreement, accepting the reciprocal obligation thereunder, please give your support with a view to obtaining French acquiescence in such claims if the opportunity presents itself. 862.85/983: Telegram POLK The Ambassador in France (Wallace) to the Secretary of State PARIS, January 5, 1920-11 p.m. 40. From Rathbone for Davis.24 Department's 9478, December 31st, 1919.25 Embassy's 21 January 3rd, 1920, R-191.25 "Norman H. Davis, Assistant Secretary, U. S. Treasury, from Nov. 1919 to June 1920; assumed duties as Under Secretary of State, June 15, 1920. (1) Embassy's 21, January 3, 1920, my R-191, gives our views on questions of importance raised. (2) Following from minutes minutes O[rganization] C[ommittee,] R[eparation] C[ommission] meeting 2d October, delegates from the United States, England, France, Italy, Belgium present, Loucheur presiding: "Brazilian ships. Chairman recalled that on several occasions this question had been raised before the Committee. In its meeting of 25th September 1919, it had charged Major Monfries to telegraph again to Allied] M[aritime] T[ransport] E[xecutive] on this matter. In respect for decisions of the Commission, French Government had refrained from entering into negotiations with Brazil for purchase of these ships, but it stated that it considered it as formally understood that no other Allied or Associated Power should enter into or should authorize its subjects to enter into negotiations before decision was received. Committee declared itself in agreement." (3) Under Wilson-Lloyd George Agreement it seems plain that irrespective of amount of claims against Germany by country (a) availing of that agreement and (b) receiving thereunder more tonnage than under the ton for ton theory, the reasonable value of such excess must be paid into common reparation fund notwithstanding the President's reservation in signing agreement. If Congress should refuse to make disposal of funds as contemplated, should doubt whether Britain would then be bound by agreement. On other hand French in accepting this agreement, so far as United States is concerned, did so subject to power of Congress to make disposal of funds under resolution approved May 12th, 1917. It is my view that Wilson-Lloyd George Agreement applied to all ships whether or not legal tender [title] has passed to Government capturing, seizing or detaining same. (4) Annex III applies to German merchant ships, that is, ships the title to which was in Germany at date of treaty. If a country not accepting Wilson-Lloyd George Agreement has made [taken] title to ships before date of treaty in my opinion there is great force to contention that such ships do not pass under treaty and proceeds of sale so far as property of German nationals must be then dealt with in accordance with article 297 of treaty. This opinion is granted [given] without examination of international law bearing on question.... (5) You will recall (a) that at meeting of second subcommittee on reparations March 31 Hipwood, British expert, said it was intention of draughtsman of annex III, paragraph 3, "to exclude from delivery to be demanded only boats captured and definitely condemned by prize courts". The amendments were rejected that |