cated on July 28, 1914, taking into account the payment effected regularly for the purpose of the foundation.

In cases where the statutes of the protection foundations which shall continue to be administered by the Hungarian State, make their advantages subject to Hungarian nationality, the presumptive beneficiaries will retain their right to the pensions, education indemnities, dowries, etc. . . ., even if they have acquired or will later acquire, by the terms of the present Treaty, the nationality of one of the States issues of Hungary, i. e., Czecho-Slovak State, Rumania, Serb-CroatSlovene State and Austria.

In the case where, on account of the extinction of a family in favor of which any foundation has been made, the funds should revert to the Hungarian State or to an institution of the Hungarian State, all rights of succession will revolve to the State to which the last beneficiary belonged.

Paris Peace Conf. 180.03501/108

HD-108

Notes of a Meeting of the Heads of Delegations of the Five Great Powers Held in M. Pichon's Room, Quai d'Orsay, Paris, on Saturday, December 6, 1919, at 10:30 a. m.

The following were also present for items in which they were concerned:

AMERICA, UNITED STATES OF

Rear-Admiral McCully, U.S.N.

Mr. Ellis L. Dresel

Colonel J. A. Logan

Lieut-Commander Koehler, U.S.N.

BRITISH EMPIRE

General Sackville-West

Captain Fuller, R.N.

Lieut-Commander Dunne

Mr. A. Leeper

Mr. Ibbetson-James

FRANCE

M. Loucheur

M. Cambon

M. Laroche

M. Mauclere

M. Seydoux

M. Kammerer
M. Sonnolet

M. Cheysson

ITALY

Rear-Admiral Grassi
M. Dell'Abbadessa

Commandant Fea

Commandant Ingianni

Resolutions
Passed at the
Session of the
Supreme Eco-

nomic Council in
Rome: (a) Aus-
tria, (b) Danger
of Nonratifica-

tion, (c) Armenia, (d) Russia,

(e) Oil Tankers

1. (The Council had before it 5 resolutions passed at meetings of the Supreme Economic Council in Rome, (See Appendix "A".).)

M. LOUCHEUR read and commented upon the resolutions. He added with regard to the question of provisioning of Austria the Committee on Organization of the Reparation Commission had examined at a meeting held on the preceding day the question of provisioning Austria and they were waiting for a reply from the Italian Government with reference to the sending of 12,000 tons of cereals to Vienna from Trieste following an agreement made between Italy and Austria. He had also seen Mr. Austen Chamberlain in London; the British and French Governments were willing to do their utmost to help until the credit opened for the provisioning of Austria had been exhausted. With regard to the situation of the Armenian refugees in the Caucasus, the Supreme Economic Council wished to bring the attention of the Supreme Council to the great importance of providing for the provisioning of those refugees and he understood that the Armenians had applied to the American Delegation direct. He wished to ask Mr. Polk what could be done in the matter.

COLONEL LOGAN stated that a telegram from Mr. Hoover had been received to the effect that an arrangement had been entered into with the Grain Corporation to supply 35,000 tons of cereals on credit to Armenia, to be distributed under Colonel Haskell's supervision. Furthermore, the American Red Cross had given 1,700,000 dollars for relief purposes.

M. LOUCHEUR said that with regard to the Russian question, he was of the opinion that it would be advisable to await a solution of the Russian problem before taking any action in the matter.

MR. POLK said that he had just received a proposal from the American Government on the question of the tank ships which Mr. Dresel would submit to the French and British Delegations. He wished to put on record that the United States were not now represented on the Supreme Economic Council.

Note From the
Committee on
Organization of
the Reparation
Commission
Regarding (a)
Customs Paid
on Franco-Ger-
man and Ger-
mano-Belgian
Frontiers; (b)
Payment of Ger-
man Customs

Duties on a Gold
Basis

(The Council took note of the resolutions passed by the Supreme Economic Council at Rome and of M. Loucheur's declarations on the subject.)

2. (The Council had before it a letter from the President of the Committee on Organization of the Reparation Commission to the President of the Peace Conference, dated November 27th, 1919, to which were attached a memorandum by the American Dele

gation, two notes from the French Delegation,' and a list of products prohibited from importation into Germany, for which the French Government asked that free entry into Germany be allowed. (See Appendix "B").)

COLONEL LOGAN read and commented upon the memorandum presented by the American Delegation to the Committee on Organization of the Reparation Commission, dated November 27th [8th], 1919.

M. LOUCHEUR said that the German Delegation had proposed that the German Government be allowed to establish the customs duties in gold marks, more exactly in paper marks, taking the rate of exchange into account. He was of the opinion that at the present time no reply should be made to Germany before the exchange of deposit of ratifications and the signing of the Protocol. On the other hand, a very important question came up in which France and Great Britain were especially interested: Germany had edicted a series of import prohibitions; it could not be contested that that was her right, but she should not be allowed to evade the provisions of the Treaty in order to treat the Allies in different ways. He therefore suggested that a solution be adjourned until Germany had signed the Protocol and the deposit of ratifications had taken place. In the second place, the right of prohibiting imports should be connected with the whole question of the payment of customs duties.

MR. POLK said that, with reference to the memorandum of the American representative on the Reparation Commission, the difficulty was that for some time past Germany had been applying two principles in the payment of German customs duties: in ports she had applied a gold basis, but on her land frontiers payment was being made in paper. That was a discrimination in favor of the countries which were importing by land as against those importing by sea.

COLONEL LOGAN said that France and Belgium were paying one-ninth of the import duties that Great Britain and America paid on a gold basis.

M. LOUCHEUR remarked that such a fact had never been brought to his attention nor, as far as he was aware, to the notice of the Committee on Organization of the Reparation Commission.

MR. POLK said that Sir John Bradbury and Mr. Rathbone had both raised the question.

M. LOUCHEUR said everybody agreed that there should be no different treatment between the Allies and that payment of customs duties should

The documents attached to the letter of November 27, 1919, in the file copy of the minutes include only one note from the French delegation, but include a memorandum submitted by the German delegation not mentioned here. See pp. 512-516.

Appendix C to HD-80, vol, vin, p. 865

be made in gold. He insisted on what he had said before, that no answer should be made to Germany at the present time and that the question of import prohibitions should be settled at the same time.

MR. POLK Suggested that the questions be referred back to the Committee on Organization of the Reparation Commission for consideration. The questions were covered by Article 269 of the Treaty of Peace with Germany.

M. LOUCHEUR said he did not agree: the provisions of the Treaty were that customs duties should not be changed during a certain lapse of time, but payment on a gold basis would entail an increase of customs duties.

M. SCIALOJA thought that it would be advisable to consult the Economic Commission, as the questions were not entirely within the province of the Committee on Organization of the Reparation Commission.

M. LOUCHEUR remarked that there no longer was an Economic Commission and that on the other hand the Committee on Organization of the Reparation Commission had consulted the economic experts.

M. MATSUI agreed with M. Scialoja, and said that he had some time ago, when the Treaty with Germany was being prepared, proposed a clause which would have prevented Germany from prohibiting any importations. Such a clause had not been accepted, but nevertheless he was of the opinion that the economic experts should be heard.

M. LOUCHEUR said that up to that time they had never referred to Commissions which were charged with the preparation of the Treaty, questions of execution of the Treaty; he proposed that representatives of the Allied and Associated Powers on the Committee on Organization of the Reparation Commission should study the questions in accord with economic experts, and Japan would have an opportunity to be heard.

MR. POLK wished to propose the following resolution: that the questions be referred back to the Committee on Organization of the Reparation Commission with instructions to take the necessary action without delay and further to decide itself such questions in the future.

M. LOUCHEUR thought that the question was important and should be referred back to the Supreme Council by the Committee on Organization of the Reparation Commission.

MR. POLK asked why this question should come back to the Supreme Council.

M. CLEMENCEAU replied that it was a question involving other matters of political importance and that although he agreed in principle with Mr. Polk's proposition, he was of the opinion that the questions should still be referred back to the Supreme Council without delay, and that at any rate no action should be taken before the Germans had signed the protocol and the deposit of ratifications had taken place.